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From the News Desk
Tuesday, 27. November 2007
Apple Finally Finds Relief from Patent Infringement
Apple has agreed to settle a patent dispute with Burst.com, ending two years of litigation.
In 2004, Burst.com asked Apple to license some of its patents, saying they were at the heart of the iPod. In January 2006, Apple sued Burst.com in the U.S. District Court for the Northern District of California, seeking a judgment that the Burst.com patents were invalid and not infringed. Burst countersued in April 2006, alleging that Apple infringed four of its patents.
Under the agreement, Apple will have to shell out a one-time payment of USD 10 million to Burst.com in exchange for a non-exclusive license to Burst's patent portfolio that will likely cover Apple's QuickTime, iPod and iTunes solutions. Court costs, expenses and attorney fees will reduce Burst.com's proceeds to USD 4.6 million.
The agreement, according to Burst, comes with a few caveats, however. Apple doesn't get access to one U.S. patent and three pending U.S. patent applications related to new DVR (digital video recorder) technology, but Burst says it won't sue Apple for any future infringement of the DVR patent and any patents that might arise from the pending DVR-related applications.
While Apple is in the clear with Burst, the small software technology company appears to have shifted gears, moving away from being a company that produced "faster-than-real" video and audio delivery solutions that stream content to devices faster than a device would play the content in real time. Instead, it appears to be moving toward an identity as a company more focused on licensing opportunities and litigation for patent infringement.
In 2005, Burst settled a lawsuit with Microsoft in which Microsoft licensed Burst's patent portfolio for a USD 60 million. Burst said it has been pursuing, and will continue to pursue, licensing agreements with other companies.
Apple, of course, was a likely candidate given its market size and huge iPod and iTunes customer base. Burst won't name other companies that may be infringing on its patents, it said.
In 2004, Burst.com asked Apple to license some of its patents, saying they were at the heart of the iPod. In January 2006, Apple sued Burst.com in the U.S. District Court for the Northern District of California, seeking a judgment that the Burst.com patents were invalid and not infringed. Burst countersued in April 2006, alleging that Apple infringed four of its patents.
Under the agreement, Apple will have to shell out a one-time payment of USD 10 million to Burst.com in exchange for a non-exclusive license to Burst's patent portfolio that will likely cover Apple's QuickTime, iPod and iTunes solutions. Court costs, expenses and attorney fees will reduce Burst.com's proceeds to USD 4.6 million.
The agreement, according to Burst, comes with a few caveats, however. Apple doesn't get access to one U.S. patent and three pending U.S. patent applications related to new DVR (digital video recorder) technology, but Burst says it won't sue Apple for any future infringement of the DVR patent and any patents that might arise from the pending DVR-related applications.
While Apple is in the clear with Burst, the small software technology company appears to have shifted gears, moving away from being a company that produced "faster-than-real" video and audio delivery solutions that stream content to devices faster than a device would play the content in real time. Instead, it appears to be moving toward an identity as a company more focused on licensing opportunities and litigation for patent infringement.
In 2005, Burst settled a lawsuit with Microsoft in which Microsoft licensed Burst's patent portfolio for a USD 60 million. Burst said it has been pursuing, and will continue to pursue, licensing agreements with other companies.
Apple, of course, was a likely candidate given its market size and huge iPod and iTunes customer base. Burst won't name other companies that may be infringing on its patents, it said.
