$360M Patent Suit Over iPhone Voicemail
Stony Stevenson writes "Klausner Technologies said on Monday the company had filed a $360 million suit against Apple and AT&T over voicemail patents that Klausner claims the Apple iPhone infringes. New York-based Klausner said the lawsuit also names Comcast, Cablevision, and eBay's Skype as infringing its patent for 'visual voicemail.' The plaintiff seeks an additional $300 million from the three." Klausner has won on two previous occasions with this patent. The new suit was filed in the Eastern District of Texas, of course.
I know. You're going to say "why didn't you do it" or something similar. But considering we already have email, so called "Visual Voicemail" isn't that big a leap.
"Thanks for all the money you paid to us. We've used it to buy off ISO among other things" -Microsoft
A cursory search for "Klausner Technologies" doesn't easily locate their corporate site, but is certainly a long laundry list of all their legal deeds.
Sigs cause cancer.
Ad-free printer friendly version. Article text:
Klausner Technologies Inc said on Monday the company had filed a US$360 million suit against Apple and AT&T over voicemail patents that Klausner claims the Apple iPhone infringes.
New York-based Klausner said the lawsuit also names Comcast, Cablevision Systems and eBay's Skype as infringing its patent for "visual voicemail." The plaintiff seeks an additional US$300 million from the three.
Klausner said in a statement that it filed the lawsuit in U.S. Court for the Eastern District of Texas. A copy of the filing was not yet available from the court.
The suit alleges asserts that the defendants' Internet-based voicemail products and services violate a Klausner patent. It seeks damages and future royalties estimated at $300 million, according to the press release.
The complaint involves U.S. patent 5,572,576, the same one at issue in a suit Klausner filed in 2006 against voice-over-Internet telephone service provider Vonage Holdings Corp. The two sides agreed to settle that earlier case in October 2007, according a spokesman for Klausner.
Vonage is now a licensee of Klausner's voicemail technology for its Vonage Voicemail Plus service, as is Time Warner Inc's AOL for its AOL Voicemail services, Klausner said.
A company spokeswoman said Apple's pioneering Newton personal digital assistant was covered under a licensing deal between Klausner and Japan's Sharp Corp, the manufacturer of the Newton, tied to Klausner's U.S. patent 4,117,542.
The suit naming Apple as a defendant targets the sleek visual voicemail application offered by Apple in its iPhone.
The company alleged in its statement that Cablevision's Optimum Voicemail, Comcast's Digital Voice Voicemail and eBay's Skype Voicemail violate Klausner's patent by allowing users to selectively retrieve and listen to voice messages via message inbox displays.
An Apple spokeswoman said the company does not comment on pending litigation.
EBay spokesman Hani Durzy said his company has not received the suit and would not comment until its lawyers have seen it.
"We haven't seen it," echoed a Cablevision spokesman, who declined to comment further.
The suit was filed for the plaintiff by the California law firm of Dovel & Luner in Texas. "We have litigated this patent successfully on two prior occasions," Greg Dovel of Dovel & Luner, said in the statement issued by Klausner.
You can read the patents in question here. It's an interesting suit -- I can't tell if Klausner has legitimate patents or not, but just because Vonage and AOL rolled over, it doesn't mean that Apple will (disclaimer: my blog link), especially not at those prices.
That high of damages makes me think they want Apple to settle. But that high of damages also makes me think Apple would rather invalidate their patents than settle.
This, like many patent lawsuits today, is entirely ridiculous. Visual voicemail is essentially identical to an email with an audio attachment and a fancy wrapper around it. If these types of cases keep happening, corporate America is going to eat itself whole. We're going to see more and more people who's business model is to patent trivial things and try to lynch anyone who approaches something similar to it.
Yes, seeing a list of things in a list format is so amazingly original. Just add "voicemail" and, sure it's patentable! I've been using internet-based "visual" voice mail for like 10 years. Octel VM systems come with a web option and have done so for at least 8 years. This patent, filed in 1977, is just being enforced now? Seems a good case for being invalid just based on the fact that they ignored all infringers until now. I skimmed that patent (http://www.freepatentsonline.com/4117542.html) and I'm at a loss to see how it applies. They talk of being able to speak letters a numbers. Specifically, under "Talking Phone Book" it can read your phone number from an address book as well as displaying it. (a) not rocket science, and (b) not what Apple's product even does. Looks more like a patent on an electronic address book.
I don't know, but it works for me.
I'm so tired of reading stories like this. The guy who is suing actually thinks he's not a patent troll. I read an article about this guy where he denies he's a patent troll. Here's an excerpt:
Riiiight, it's Apple's fault he has to sue them. He had an idea, and as far as I can tell, never saw, met, or discussed it with anyone at Apple. They happened to have a similar idea and acted on it, and now they have to pay. Dearly. Some more wisdom from him:
I'm sorry, but I just don't see having an idea as meriting hundreds of millions of dollars. Acting on an idea, now that's worth something.
I have lots of ideas, too. I don't patent most of them, because I don't plan on acting on them, and I don't feel like I deserve hundreds of millions of dollars if someone else does. Even if there were something I feel like would make the world a better place, it's likely I wouldn't pursue it because I know I'd get sued into oblivion for just about anything I might do.
I'm still waiting for someone to explain to me how patents spur innovation. Every time I read articles like this, patents are being used to hinder it.
now there is an idea......
Insert funny smart-ass comment here.
Someone at Apple is going to throw an impeccably designed chair about this.
What about the famous scene in episode 4 with R2D2 "Help me, Obi-Wan Kenobi; you're my only hope..."
Does that count as prior art?
A defensive patent would do nothing in this case.
This guy cannot possibly infringe on a patent because he doesn't actually produce anything. So Apple, MS, IBM can have millions of patents and they wouldn't be able to use them defensively here.
Don't confuse common sense with legal reality. It is typically discouraged for inventors to do their own prior art searches, because that could expose the company to be sued later for willful patent infringement with accompanying higher damages.
Disclaimer: I am not a lawyer, and this is not legal advice. However, I am a patent holder, so I've been down this road before...
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If they've won on this issue before, then this shouldn't come as any big surprise to anyone.
As for East Texas juries, their state should be ashamed of them, and they should be ashamed of themselves. The RIAA would probably file all their cases there, if they could.
"It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
Given Apple's litigious history, it will be fun to see how this shakes out. Hand me the popcorn, please. No matter who loses, we all win.
WRONG! And by your statement you prove that you know nothing about patents, why they were necessary at one time, why they're mostly irrelevant when it comes to software and how much MS kool-aid you've drank lately.
The patent system is broke. It's underfunded, undermanned and because of outside pressures, it pretty much allows nearly any yahoo to come along with a specious claim and "patent" it. Defensive patents are being bought, yes, but without the proper due diligence, it's pretty much a road to nowhere.
Im pretty sure if I was a serial killer, I wouldn't call myself one either. Has anyone thought of how better off the world would b without people like this? I mean seriously, it's like u can patent something as obvious as breathing nowadays. Hrmm, think I better get out the books on that one. Oh, and hasn't yahoo/outlook/and countless others been allowing u to look at voice mail for years now??
Perhaps their legal team thoroughly researched all the voicemail patents out there, and decided to give Apple/AT&T the thumbs up as their technology was sufficiently differentiated from the patented technology, and the differences would be bloody obvious in any court in the U.S. except for perhaps in East Texas.
If you are not allowed to question your government then the government has answered your question.
While I strongly feel that no one should be able to patent putting certain types of sequential data objects into a scrolling list widget (on the grounds that the invention is the widget, not the application of the widget to some kind of data), Apple has sort of hyped their way into a corner here, having touted this amazing feature of the iPhone as cool and innovative, they now cannot consistently claim that it is obvious and trivial.
It's hard to take anything you say seriously when your sig screams "partisan shill".
MS is trying to push through patents in the EU so it can start scaremongering over there like it's doing here already. Or haven't you heard about the "246 infringing patents in linux" bit from Balmer yet. No legal challenges (because they would lose) but enough to scare the companies to keep taking their MS medicine. Hey, have you heard...MS had its FAT file system patent challenged by PubPat. MS is no better than patent trolls, my friend. You need to take a look around before you make this rash call.
Or, if you're astroturfing, at least you're getting paid for this.
The wheels of invention have officially come spinning off. Visual voicemail? Does this cover video voicemail? If not, who owns the patent to that... And when do those lawsuits come?
If you own a patent, and have no desire to do anything with it, you're not helping innovation, nor are you protecting anything. You slow progress, and you hurt the people who actually do want to change the world. I'm starting to believe in the idea that the US has about 90 years left. At this rate, we won't be able to develop anything without getting sued. Plus, China will continue to block our products, copy them, and sell them back to us.
I feel a little better now. OK.. for a more reasonable reaction... How about: If you patent something, and you don't have some product to market utilizing that patent in less than 5(? I'm flexible) years, it goes out the window. The patent also expires after 15(3xinitial?) years. By then, you should have improved your product, and you should own the market enough to protect your inventions. If you get swallowed by competition the day after the patent dies, you sucked at running the business. Sure this opens up the possibility of someone coming up with an idea, patenting it, and intentionally not making a product to stop future patenting of the idea.... But is that any worse than what's happening now?
If you can think of it as an average Slashdot 10 year old, you can't patent it. Problem solved.
From the Oxford American Dictionary:
So, while you cannot see voice, you can see your voicemail. Particularly, you can interact with it visually rather than audibly. I understand that it's fashionable to poke fun at marketing, particularly Apple's... but please do so with a modicum of common sense regarding the language.
I don't want to say that his invention has enough merit to gain or loose a patent, but it seems many people are crying "patent troll" without knowing the specifics of the case.
this is the patent in question which specifically is an improvement of current voicemail systems which provides visual information. To add to that it was issued over a decade ago and was filed for in 1994. Priority may go back further. The claims specifically show the intended improvement of the voicemail system, and right off the top of my head I don't recall anything that complex regarding voicemail in 1994. Now it's pretty common because we have more than Pentium 133Mhz computers at the bleeding edge to power equipment, but back then something like this (while it maybe somebody did dream it up) was unheard of. I don't like that he did (as far as I can tell) nothing to advance the technology, but I don't think this patent is without some merit.
The original generic sig.
But there's so much crap in the patent system, that it's not feasible to go through searching for patents on every feature you come up with.
Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
"I don't think it's selfish, to eat defenseless shellfish." -NOFX
LOL PATENTS RULE LOL
Yeah. It would be funny if it weren't so pathetic. IP laws are like swords that modern tech companies (Apple included) use to beat the rest of us into submission while they corner a market and reap mostly undeserved and exhorbitant profits. MSDOS was not worth billions of dollars, sorry. Whosoever uses the sword shall perish by the sword. In the end, IP laws will lead to violent wars, if they haven't already.
what a fucking choad of a company. keep it up trolls, the more you guys exploit the faulty legal system, the quicker it'll get patched...
IANAL, however, the AT&T Intuity Audix Message Manager is a desktop product that gives you random access to your voice mail messages. The Message Manager user guide dated January 1995 is on the Avaya site at:
http://support.avaya.com/edoc/docs/intaudix/iammusr1.pdf
Go to page 25 "Listening to your messages" shows how to select any voice mail message displayed on your screen. This wasn't rocket science. I wasn't involved with that products development, but I don't recall any patents being issued for it. Even at the time it seemed like an obvious thing to do and should be to any practitioner in voice mail.
define common sense.
in apple's case, it was probably more profitable to ignore it on the off chance they would get away with it. in linux' cases it's common sense to never look at patents ever in case you might accidently get polluted.
prgamatic entities make decisions in grey areas all day long.
Yeah, like patent law has any freaking thing whatsoever to do with the english language. I'd say that it is rather a deliberate, systematic perversion of the english language.
To boldly use to and too two times and get it right too! They're not gonna believe their eyes when they see it there!
For those not familiar with the area (Eastern District of Texas), what is up?
Does the Eastern district just give away money to any patent troll?
Can Apple, AT&T, etc ask to have the case heard some where else?
General, you are listening to a machine! Do the world a favor and don't act like one.
"You NEED to patent everything you have if you don't want to open your pocked every week. Defensive patents are a necesity these days."
No, all you have to do is make your idea public (in a way it can be implemented), and no other person can get a patent on it. Please do it such that it can be found.
Bert
Patent attorney against software patents
This is the real point. The only possible patent that could be used against patent trolls that I've EVER heard of was one IBM filed covering automatic patent portfolio licensing that could possibly be interpreted as a business model patent for patent trolling. :)
But there's so much crap in the patent system, that it's not feasible to go through searching for patents on every feature you come up with.
Which is why the patent system is only good for Big Corps, that can afford expensive lawyers to crush small inventors, and go against competitors. Nobody without expensive lawyers, deep pockets, and a large patent portfolio (to counteract) can ``invent'' anything new and survive to profit from it.
And this is precisely why patents were setup to being with!
Maybe patent law should be amended that an entity worth more than $10m (market cap) cannot be granted patents longer than 6 months (and cannot hold a patent longer than that), as it obviously has enough resources to profit from them on short notice. This would ensure the small inventors get to profit (right upto the point they become worth more than say $10m), and big corps can't hold small inventors (or each other) hostage to patent lawsuits.
"If anything can go wrong, it will." - Murphy
You must be new here.
What was once true, is no longer so
Whoa there, were do you work?
While inventors may be discouraged from doing their own prior art searches, that is only because in the next breath they are being encouraged to pay someone to do it for them. There actually is a valid reason for this, as the inventor likely knows so much about his invention that there is a fair chance that he either interprets everything remotely similar to be infringing, or he sees his device as being so specialized that nothing, in his mind, is similar.
Companies like apple, comcast, and ebay have people on staff whose sole responsibility is to search for prior art.
The CB App. What's your 20?
I might patent it actually
Google's Super Secret Search Algorithm: SELECT @search_results FROM internet WHERE @search_results = 'good'
You can dislike Apple as much as you want. Knock yourself out, I don't really mind. Probably won't disagree with you on some of it. But if you are going down the road of "the enemy of my enemy is my friend" road, then you don't really know much about MS. Plus, if your sig is all "Appel is teh suck" and your post is "poor poor MS has to defend itself, when will they get a break", then I may doubt the veracity of your being able to look at the subject objectively. It's something that sticks out a bit.
You are right, you have the right to say those things about Apple. I have the right to call them as I see them and perhaps challenge your objectivity.
Can someone explain to me how Klausner lost $660 million of profit from an *idea,* though legally patented, that he has not attempted to bring to market for 13 years? Is that figure just made up in an attempt to encourage the defendants to settle out of court for mere tens of millions instead?
Peachy. I guess corporate government of the future will fix patent trolling by declaring the trolls the equivalent of terrorists. Don't close Gitmo just yet!
there is a difference between a patent of a "visual representation of voicemail", which is the most ubiquitous form of this type of patent (http://www.google.com/patents?id=iPAoAAAAEBAJ&dq=5572576) and the kind that you describe , verses a patent of a "voice mail containing visual elements", which is what I was trying to describe. in any case, you are right, this case applies to the former, and by that count I am incorrect.
-- Betting on the survival of the media industry is a serious risk. I advise investing elsewhere.
Spending a lot of time dwelling on engineering for applications which aren't even relevant now (for instance applications which only become interesting with widespread broadband or mobile phones with teraflop computation capability) is not something of interest to most reasonable engineers. Art obvious to practitioners will only be discussed when it starts becoming useful ... and it becomes useful to patent trolls long before it becomes useful to anyone else. So they are the first to "discuss" it (if you can call submarined patents discussion).
... they don't need a very high success rate).
What's the solution? I see none. Only obviousness stands in the way of patent trolls and even without the TSM test it only reduces their chances of success slightly (it's purely subjective and nothing a little venue shopping won't help with, besides
TFA is misleading, as the original patent doesn't specifically have anything to do with the visual interface. The visual interface may be covered by a prior patent that is being refereced.
What the company is claiming is a method of linking several voice messages to certain caller identities, and then allowing the user to select an identity and play back a specific voice message associated it. Essentially combining an answering machine with caller ID. The patent was issued in 1994.
As I see it, Apple has three choices:
1) Settle. Companies usually list exorbitant damages ($300 million) to get the attention of other companies or scare them. Apple could likely settle for 10 times less ($30 million).
2) Litigate. They could try to find prior art, or try to invalidate it through other arguments.
3) Change. They could change the iPhone system to display all the voicemail messages in chronological order, then allowing the user to select a time-ordered message and it displays caller information in a separate menu. They could use a marking system to identify if you've already checked a message or not.
Most companies do #1, or try to do #2 and then do #3 when they lose.
Hrrm... perhaps I should patent number 3 now, and then sue when the implement my patent to get out of the other patent...
Just because it has legal merit doesn't mean it is of any worth.
...essentially cover allowing users to selectively retrieve voice mail messages using an inbox-type display.
How is NeXTSTEP's mail app (with integrated voice support) not prior art?
AOL and Vonage may not have been able to turn up prior art, but Apple owns NeXTSTEP. It would seem reasonable for them to fight it, considering the damages claimed. If the suit weren't filed in patent troll central, it would seem to be a no-brainer.
That's why it's spelled "visual voice-mail," not "visual-voice mail."
Although the latter one might be awesome, thinking about it.
Bitten Apples are still better than dirty Windows...
Speaking of prior art, Accessline for almost 10 years has been selling voice mail integrated with email and a desktop applet.
Long before that I used a type of visual voicemail which we referred to as the secretary. [S]he would take voice messages using a speech to text mechanism dubbed the pencil. The user interface was an array of pink sheets of paper labeled While You Were Out. Think of them as pop-up windows, affixed to your desktop - computer desktop or oak as the case may be. Each dialog would give the caller's name, time of call, urgency, caller ID to return the call, and the message. You would dismiss the dialog by crumpling it and throwing it into the trash can. In another early innovation you didn't need a special command to empty the trash can. Something called a "janitor" would come by daily to do so.
Well get ready for court because I already patented the means of filing a patent.
FlyingPizzas.com, for the tasteful hermit
I got that with the Soundblaster card/CD-ROM kit sold by Borland in the late 80's/early 90's. Still have the machine here and the floppies.
The software showed a list of voice-mails, including time received. I don't know whether the caller ID worked since I used it in Europe. As said, the software lets selectively listen to the voice messages. It also features optionally multiple mailboxes (with a voice prompt to enter the mailbox number) and was shipped standard with the multimedia Soundblaster card and CDROM player sold by Borland.
It would be funny to observe the psycho-social consequences of a community where most of the litigations are patent lawsuits from companies that are not located anywhere close and who have no relationship with their population.
It must be somewhat surreal, with the judges and jurors feeling like they, of all the world, have some unique insight into intellectual property nobody else has that drives companies to seek their wisdom and sense of justice about all things patentable.
It's impossible they never noticed that.
http://www.dieblinkenlights.com
We are a company that invents and receives patents - my own - and licenses them.
He invents patents, he doesn't patent inventions. Pure patent troll.
Hell, I've sent the ol' Ascii Finger in the mid 80's many times.
Table-ized A.I.
The patent describes an Ericsson PPX/pager/phone system I was using in early, mid 80's perfectly except it didn't use names to display the caller but the telephone numbers.
Once you contacted(phoned) the PPX you got the names of the caller(s) in voice (if programmed in PPX) and a list of messages by caller in any order you selected. You could listen, skip, delete and archive those messages for later use. You could also tell the PPX to call back the caller or reroute the calls to another phone(user) or start a conference call or etc.. But no visual except there were "intelligent" phones which gave you the list of numbers on a small display, number and time of each message, capability to listen any or none, save or delete and archive, call back the caller, etc.
So, the only real difference was the visual maybe because of the technology at that time. Now - there was even earlier the huge (and expensive) IBM PPXs, I just don't remember all its capabilities but they did interesting tricks with messages no matter in which country you were and maybe it did show the names on 3270(heh!)
Really have to wonder what can be patented today and how broken the whole system is! It is so obvious to connect names to numbers / messages / whatever once you have a little memory and a small processor. And caller ID.
.....What the company is claiming is a method of linking several voice messages to certain caller identities.......
That is exactly what my SE/30 Mac did in 1989. It used a plug in modem type device together with some software to record voice calls and display caller info on the screen. It also sent and received faxes and data. It was smart enough to differentiate automatically between voice calls, faxes and data.
All theory is gray
Have to agree, somewhat. I worked on the first Xerox Star system in Canada in 1980, about four years before the Mac was introduced (I also worked with the Lisa, Mac's mom). Personally, I think Xerox was incredibly stupid to walk away from the technology, but the Star had everything the first Mac UI did - icons, mouse, WYSIWYG word processing, etc. Jobs freely admits he toured Xerox's PARC facility in the early 80's, and that he saw the Star while there. In his defense, I think this was before this nonsense of broad software patents had emerged (as opposed to specific software patents, covering a particular program implementation, like Lotus 1-2-3; you could build a spreadsheet if you wanted to, but you couldn't copy Lotus's code. Note that Lotus was not the first spreadsheet, either; VisiCalc was.) Apple was more successful because they worked with others to develop better applications. I still think Lotus Jazz was years before its time. But for anyone to claim that M$ stole the graphical UI concept from Apple, well, they're just plain wrong.
What was once true, is no longer so
I found some early Message Manager documentation in our archives.
The technical prospectus ( which would be very early in the product cycle ) is dated March 25, 1994. The Release 1.0 requirements are dated March 11, 1994.
A development plan is dated April 6th, 1994 ( after the patent filing date ), however the document version number is 0.6. The status date of the document was December 2nd, 1993, which I think is the same as creation date.
One undated document, but added to the database on Jan 12th 1994, says the "competition has announced GUI interface to voice mail products including Northern Telecom, VMX, Active Voice, AVT, Octel and others", and goes into some detail on each one.
It sounds to me like this patent was filed back then as a patent time bomb, that is, let products get built that infringe on the patent and then years later file big dollar lawsuits. Nice business strategy. Hopefully there is enough prior art here to kill this lawsuit.
I left that "have someone else do it" part out. That's a good point. Thanks for the correction...
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I read both patents and both of them specifically say that the data is encoded via DTMF by the caller. Apple's mechanism doesn't rely on DTMF encoding (or any other kind of encoding from the caller), but rather uses the caller ID and voicemail flags from the carrier. Since the patents are so implementation specific and clearly not the implementation that Apple chose, this seems like an open and shut case.
Had that too, and a Windows 3.1 version that did the same thing. This is yet more proof of why software patents are BAD.
Of course, the best example is VMS... TONS of software patents on stuff that was incredibly advanced at the time, lots of which is still far ahead of the game. All locked up in patents being traded around like baseball cards.
Drives me nuts.
An operating system should be like a light switch... simple, effective, easy to use, and designed for everyone.
I did most interesting things with voice mail (including "visual voice mail") and telephones in my Master's thesis in 1984. this predates by a good margin most voice mail systems. for the best quick overview see the video at http://xenia.media.mit.edu/~barons/phone-slave-video.html for full references, including my thesis, see the "Phone Slave" section near the bottom of http://xenia.media.mit.edu/~barons/AronsAnnotatedBibliography.html