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Court affirms download patent Updated: Mon, Jul 16 8:35 PM EDT=20
=20
by Paul Festa, News.com=20
E-Data insists it owns the patent for Internet software downloads, and =
an appeals court says they may be right. At stake are licensing fees =
that could make the company richer than Microsoft.=20
A federal appeals court has for the second time breathed life into a =
patent that could force software vendors to pay licensing fees to sell =
their products directly over the Internet.=20
A full panel of judges on the Federal Circuit U.S. Court of Appeals on =
Friday ordered a lower court that effectively had thrown out the patent =
to reconsider its scope more broadly.=20
The decision is a setback for software makers including Intuit and AOL =
Time Warner’s CompuServe unit, which have been battling a small =
Secaucus, N.J.-based company known as E-Data for years over the patent, =
which dates back to 1985.=20
E-Data’s defendants say the company’s claim would entitle it to =
licensing fees for all Internet software downloads.=20
“This is the case that would not die,” said Carl Oppedahl, attorney with =
Dillon, Colo.-based Oppedahl & Larson, which is defending Softlock =
Services in the case. “It has been going since 1995, and it isn’t over =
yet. If the patent owner prevails in its view, they stand to be =
wealthier than Microsoft.”=20
In March 1999, the U.S. District Court for the Southern District of New =
York ruled that the defendants had not infringed E-Data’s patent and =
that the patent had a scope too narrow to apply to Internet downloads in =
general. The patent, the court said, applied more to downloads through =
“kiosks” and other physically based retrieval systems.=20
In November 2000, the U.S. Court of Appeals for the Federal Circuit =
threw out that decision, ruling that the district court had too narrowly =
interpreted the patent.=20
Friday’s decision by the same appeals court meeting with all its active =
judges, or en banc, essentially upholds its previous decision that the =
patent should be read more broadly.=20
“The gist of it is that the court is sticking with its interpretation =
that the District Court had too narrowly read the claims of the patent,” =
said Neil Smith, a lawyer with Howard, Rice, Nemerovski, Canady, Falk & =
Rabkin in San Francisco. “The companies that had mostly Internet-based =
systems were likely able to get out based on the District Court’s =
ruling. They no longer can do that.”=20
The appeals court sent the case back to the District Court for a new =
hearing.=20
Defendants in the case include CompuServe, Broderbund Software, Intuit, =
Waldenbooks and Ziff-Davis Publishing
Gary Stein
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<DIV><FONT face=3DArial size=3D2></FONT><FONT face=3DArial =
size=3D2><SPAN=20 style=3D"FONT-WEIGHT: bold; FONT-SIZE: small;
COLOR: black">Court = affirms download=20 patent</SPAN><BR> <TABLE
cellSpacing=3D0 cellPadding=3D0 width=3D"100%" border=3D0> <TBODY>
<TR> <TD style=3D"FONT-FAMILY: times" align=3Dright><SPAN=20
style=3D"FONT-STYLE: = italic">Updated: Mon, Jul 16&n-
bsp;8:35 PM EDT</S=
PAN></TD></TR></TBODY></TABLE>
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<STYLE> p { font-family: times; font-size: small } </STYLE>
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<DIW><SMALL><I>by Paul Festa, News.com</I></SMALL><FONT size=3D0>=20
<DIX></FONT><B>
<DIY>E-Data insists it owns the patent for Internet software downloads, =
and an=20 appeals court says they may be right. At stake are
licensing fees that = could=20 make the company richer than
Microsoft.</B>=20
<DIZ>A federal appeals court has for the second time breathed life into a
= patent=20 that could force software vendors to pay licensing fees
to sell their = products=20 directly over the Internet.=20
<DIZ>A full panel of judges on the Federal Circuit U.S. Court of Appeals =
on Friday=20 ordered a lower court that effectively had thrown out
the patent to = reconsider=20 its scope more broadly.=20
<DIZ>The decision is a setback for software makers including Intuit and =
AOL Time=20 Warner’s CompuServe unit, which have been battling a
small Secaucus, =
DIZ.A.-based=20 company known as E-Data for years over the patent, which
dates back to = 1985.=20
<DIZ>E-Data’s defendants say the company’s claim would entitle it to =
licensing=20 fees for all Internet software downloads.=20
<DIZ>“This is the case that would not die,” said Carl Oppedahl, attorney =
with=20 Dillon, Colo.-based Oppedahl & Larson, which is defending
Softlock = Services=20 in the case. “It has been going since 1995,
and it isn’t over yet. If = the patent=20 owner prevails in its view,
they stand to be wealthier than Microsoft.”=20
<DIZ>In March 1999, the U.S. District Court for the Southern District of =
New York=20 ruled that the defendants had not infringed E-Data’s
patent and that the = patent=20 had a scope too narrow to apply to
Internet downloads in general. The = patent,=20 the court said,
applied more to downloads through “kiosks” and other = physically=20
based retrieval systems.=20
<DIZ>In November 2000, the U.S. Court of Appeals for the Federal Circuit =
threw out=20 that decision, ruling that the district court had too
narrowly = interpreted the=20 patent.=20
<DIZ>Friday’s decision by the same appeals court meeting with all its =
active=20 judges, or en banc, essentially upholds its previous
decision that the = patent=20 should be read more broadly.=20
<DIZ>“The gist of it is that the court is sticking with its interpretation
= that=20 the District Court had too narrowly read the claims of the
patent,” said = Neil=20 Smith, a lawyer with Howard, Rice,
Nemerovski, Canady, Falk & Rabkin = in San=20 Francisco. “The
companies that had mostly Internet-based systems were = likely=20
able to get out based on the District Court’s ruling. They no longer
can = do=20 that.”=20
<DIZ>The appeals court sent the case back to the District Court for a new
= hearing.=20
<DIZ>Defendants in the case include CompuServe, Broderbund Software, =
Intuit,=20 Waldenbooks and Ziff-Davis Publishing</P>
<DIZ> </P>
<DIZ><FONT face=3DArial size=3D2>Gary =
Stein</FONT></P></FONT></DIV></BODY></HTML>
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