Microsoft sued over JPEG patent claims

By Steve Malone

Posted on 25 Apr 2005 at 10:44

Forgent Networks which claims to own key patents to JPEG technology has announced it is to sue Microsoft. The company, which acquired patent number 4,698,672 through its acquisition of Compression Labs, has already had disputes with the industry issuing writs against 44 companies including Apple, Dell, HP and IBM in April of 2004.

The Forgent patent covers areas of digital image compression, and fields of use include digital still image devices used to compress, store, manipulate, print or transmit digital still images.

The wonder is that Forgent took so long to get round to Microsoft. However, the clue is in the accompanying statement made by Richard Snyder, Chairman and CEO of Forgent. 'Forgent intends to vigorously pursue its claims for patent infringement against Microsoft. We believe we will prevail in this action as the '672 Patent is valid, enforceable and infringed by Microsoft.

'It's unfortunate that, despite Microsoft's recent inquiries about licensing the patent, they chose to file a lawsuit, leaving us no alternative but to assert infringement claims against it. We are committed to the intellectual property program, and our objective remains to protect our intellectual property assets from infringement, and where appropriate to collect a reasonable royalty fee, thus maximizing shareholder value.'

At the time of writing, we were unable to get details of a Microsoft lawsuit. However, as with the long running Eolas patent dispute, Microsoft will likely as not vigorously defend its position and take it all the way through the courts. As with the Eolas case, Microsoft will not only have the backing of much of the industry but also the JPEG Committee.

The intellectual property business has certainly been a lucrative one for Forgent over the past few years. The company says it has made $100 million from licensing the '672 Patent to more than 35 different companies in Asia, Europe and the United States.