the fun starts .....
 

Microsoft Sued Over JPEG-Related Patents
By Matt O'Conner
Friday, April 22, 2005
AUSTIN, Texas ? Forgent Networks is suing Microsoft, alleging that the software giant is infringing the patent on Forgent?s still-image-compression technology by using the JPEG digital-image standard.

?If a company uses JPEG, they are using our patent,? said Michael Noonan, director of investor relations at Forgent. ?We want [Microsoft] to pay a reasonable royalty for the technology they are using.?

The suit, filed in U.S. District Court through Forgent?s Compression Labs subsidiary, comes in response to another suit filed March 15 in which Microsoft asked a court to declare that use of JPEG is not infringing and to invalidate the patent in question.

The two companies had been negotiating a possible license agreement before Microsoft filed its claim in an apparent preemptive strike.

Noonan said his company prefers to reach an agreement but will ?vigorously pursue? legal action if necessary.

?It?s unfortunate that, despite Microsoft?s recent inquiries about licensing the patent, they chose to file a lawsuit, leaving us no alternative but to assess infringement claims against it,? Forgent CEO Richard Snyder said.

In 2002, Forgent announced that it believed the technology used to compress still images in JPEG infringed on U.S. Patent 4,698,672, which it owns. The company immediately began seeking license agreements with all companies using JPEG and suing those with whom it was unable to reach agreements.

In April 2004 alone, Forgent sued 31 companies. It has filed suit against 44 companies in all, including Apple, Dell, Hewlett-Packard and IBM, and negotiated usage agreements with 35 others. The company has received an estimated $90 to $100 in licensing fees, including $16 million from Sony.

Some industry analysts believe the suit against Microsoft may be something of a Hail Mary move on Forgent?s part, since its patent expires in October.

In its own legal papers, Microsoft accused Forgent of ?subverting the JPEG standard to extract millions of dollars in unwarranted profits.?

Dude.....its friday

bump for my baby.

this is the definition of a submarine patent

we will not wait until 6 months before our expiration date (19-1/2 years from right now) to enforce our patent. to download a copy of our patent click here for the pdf -> http://essociate.com/patents/US6804660.pdf

More low life scum.. let your technology be used by every man and their dog without enforcing your patent and then when it's common place start sueing... assholes...

one thing about issued patents is that the patent holder can only go back for damages (triple damages under certain circumstances) to their issuance date. by waiting they increase the damages. this would not encourage every single patent holder to wait though because a lot of patents are defensive and more for protection from rip-offs than damages collections.

defenses after a long use period are bolstered too in the infringers favor sometimes.. it works both ways to a limited extent. at the end of the day, the patent is already deemed valid and the infringer has to prove their position or lose every time.

if anybody reading this has what they think is a patentable invention and would like our feedback and possibly more assistance- http://www.xpays.com/xpays_home.html#contact

What helped all these patent guys to grow balls was watching all those adult companies rollover. I said its like the candy store that starts paying protection, then every punk comes around looking for money but the big fish knew better.

Interesting read, what are the chances that Forgent will win this one over Microsoft?

a lot of big mainstream companies rollover. the decision boils down to the principle's of the principals.

thats a problem also

business-wise, sometimes a sweetheart license is really a win and victory in court is really a loss though.

no its not because it encourages more of these guys to come out of the woodwork.

it's the one's already in the woodwork that are gathering submarine patent portfolios and shaking industries down with guns to heads.

i agree with you a bit, and we added HomeGrownVideo to XPays.com for that very reason, hoping whatever extra business we can send over there will help out in their fight with acacia.