[Ecommerce] News Patent on internet downloads aggressively enforced

[Manon Ress]

OUT-LAW.com
http://www.out-law.com/php/page.php3?page_id=patentoninternets1023973098

News  Patent on internet downloads aggressively enforced
13/06/2002

E-data Corporation has sent warnings to many of the internet’s biggest
businesses because it believes they are infringing its so-called “Freeny
Patent” - which covers music, books, movies and other products
distributed digitally over the internet.

In November 2000, a US appeals court ruled on the controversial patent,
limiting its scope to an extent. The ruling meant that sales of digital
products downloaded only to PC hard drives are not covered by the
patent. However, where digital products are downloaded, streamed or
copied onto compact discs, paper or other storage media in homes and
offices, it is possible that the patent will apply.

The New York-based company yesterday announced that it is filing the
first of many anticipated patent infringement lawsuits against an
as-yet-unnamed company in a Wisconsin court. In a statement, E-data’s
president, Tibor T Tallos, said:

"While the initial filing is against one company, E-data plans to add
more companies over the course of the next few weeks. During the past
few months E-data has sent notice of infringement letters to over one
hundred companies, including some of the biggest companies on the
internet. While E-data management is talking about settlements and
licensing with some of these companies, others are at risk of being
added to this lawsuit, or to additional lawsuits we are planning."

This is the first lawsuit filed by E-data in over six years. Tallos said
that this reflects “a new determination by the company to aggressively
enforce our patent.” 

The company says it is carefully selecting company targets to sue based
on their location and the market segments they represent. It hopes to
obtain judgments “that would impact negotiations with other companies in
[the same] market segment.”

The Freeny Patent is entitled: "System for Reproducing Information in
Material Objects at a Point of Sale Location." It describes a system and
method of distributing content over electronic and wireless networks.
The company says that it holds the Freeny Patent in both North America
and Europe. 


-- 
Manon Anne Ress
Essential Information
www.essential.org
PO Box 19405, Washington, DC 20036
mress@essential.org, voice: 1.202.387.8030, fax: 1.202.234.5176