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'Podcasting Patent' Is Totally Dead, Appeals Court Rules (arstechnica.com)

A federal appeals court affirmed the April 2015 inter partes review (IPR) ruling -- a process that allows anyone to challenge a patent's validity at the U.S. Patent and Trademark Office -- that invalidated the so-called "podcasting patent." "That process was held by a company called Personal Audio, which had threatened numerous podcasts with lawsuits in recent years," reports Ars Technica. From the report: Back in 2013, Personal Audio began sending legal demand letters to numerous podcasters and companies, like Samsung, in an apparent attempt to cajole them into a licensing deal, lest they be slapped with a lawsuit. Some of those efforts were successful: in August 2014, Adam Carolla paid about $500,000. As Personal Audio began to gain more public attention, the Electronic Frontier Foundation, however, stepped in and said that it would challenge Personal Audio's US Patent No. 8,112,504, which describes a "system for disseminating media content representing episodes in a serialized sequence." In the end, EFF raised over $76,000, more than double its initial target.

[T]he history of Personal Audio dates to the late 1990s, when founder Jim Logan created a company seeking to create a kind of proto-iPod digital music player. But his company flopped. Years later, Logan turned to lawsuits to collect money from those investments. He sued companies over both the "episodic content" patent, as well as a separate patent, which Logan and his lawyers said covered playlists. He and his lawyers wrung verdicts or settlements from Samsung and Apple.

3 of 30 comments (clear)

  1. Patent Peer Review by CaptQuark · · Score: 4, Insightful

    This is one of the reasons patents should be peer reviewed before being granted. This was also discussed when it was revealed that Australia awarded a patent for a wheel in 2001. https://yro.slashdot.org/story...

  2. Need a way to reverse settlements by Solandri · · Score: 5, Insightful

    attempt to cajole them into a licensing deal, lest they be slapped with a lawsuit. Some of those efforts were successful: in August 2014, Adam Carolla paid about $500,000.

    We really need a procedure to get these sorts of payments reversed if the patent is later found to be invalid. A large part of the reason the Blackberry died was because they settled for over $600 million with patent troll NTP right around the time when they badly needed the money to develop a new device (industry was transitioning to touchscreens). All but one of NTP's patents were later invalidated, but because RIM had entered a settlement they couldn't get the money back (even though it was effectively done under threat of a lawsuit under false pretenses).

    1. Re:Need a way to reverse settlements by ledow · · Score: 4, Insightful

      Lesson: Don't enter into settlements to shut up people who have absolutely no claim as to what they are holding over you.

      Take them to court, drag it out, invalidate their patents and take their business from underneath them, instead of just capitulating and paying them money to avoid the hassle.

      If you have $600m dollars to give away, you can fight in court for an AWFULLY long time, appeal multiple times and then reclaim all your costs from the company when they are proven wrong.

      These people operate on the basis of extortion - I won't take you to court and risk winning my case against you, if you just give me lots of money now.

      If their claims are baseless, ignore them. If their claims have standing, pay them a FRAND patent licence for failing to do your homework.

      Don't "believe they have no case" but then settle to avoid the hassle. It allows them to continue doing that to yourself and others, and they'll come back for more.

      What was stupid was entering into a $600m settlement, part of which - your lawyers would have instructed you - means that if it were invalidated, you'd get nothing.

      Hell, for a couple of million you could do a full patent review and argue the case. If you lose, you probably still have to pay the $600m (to be honest, I can't imagine a reasonably licensed patent costing that much for such a company). But then if the patent is invalidated you automatically "win" on appeal and get your money and court-costs back.

      Settling is really a stupid thing to do if you're innocent. To be honest, it's also a stupid thing to do if you're guilty (just pay the patent licence in the first place if you thought it had merit!).

      It's the corporate equivalent of accepting a police caution when you're innocent. Easy to do, all the hassle goes away, you don't spend a night in the cell or have to hire a lawyer. But it will forever stain your record as, basically, an admission of guilt of that instance.