Microsoft settles European music download to disc patent suit

January 21, 2004

This starts off bad, then it gets worse. According to ZDNet , last October the small company E-Data sued a European division of Microsoft, along with the HMV Group, Internet service provider Tiscali and digital music company On Demand Distribution (OD2). The suit is for the violation of a patent that covers (take a deep breath and let it out real slow) "the downloading of information onto a tangible object such as a CD." It was true, music download services operated by the four companies, allowed consumers to burn downloaded music to a CD.

Microsoft has settled with E-Data. The financially secretive terms, include past and future rights to use the patent anywhere in the world. Specifically, here is the description of the patent from E-datas webpage .

That's the bad part.

"We are quite pleased with this settlement, as it further reinforces the scope and validity of (our) patent in Europe," said E-Data Chairman Bert Brodsky in a statement. "While the OD2 service is still in the nascent stage…the agreement sends an important message to other companies infringing upon our intellectual property."

E-Data is characterizing the suit's settlement as an explicit shot across the bow of other download services--Brodsky specifically cites Apple Computer's iTunes--that are planning to enter the European market.

"We are currently in talks with a number of prominent companies in Europe infringing upon our intellectual property, and may seek injunctions against these companies if necessary," Brodsky said

Other companies, including Acacia Research and SightSound Technologies, have said that they own broad rights to such processes as streaming digitally archived media such as music or video, or even selling access to audio and video over a telephone line.

"We are currently in talks with a number of prominent companies in Europe infringing upon our intellectual property, and may seek injunctions against these companies if necessary," Brodsky said.

It got worse didn't it? One would think that it would be important to not only have a concept, but also the solution for said concept, in order to obtain a patent. It seems as if everyone has their hand out expecting a cut of the profits. And they are getting it by merely documenting a pipe dream.

Source: ZDNet