Patent Law

Time Runs Out for Owner of Altimeter Patent

April 22, 2013, by Mandour & Associates, APC

Los Angeles – U.S. District Court Magistrate Judge Elizabeth LaPorte recently ruled that Avocet Sports Technology Inc. waited an unreasonable amount of time, 6 years, to initiate a patent infringement case against Polar Electro, Inc.  Thus, she dismissed the case due to the doctrine of laches.

Avocet Sports Technology Inc., a Palo Alto, California company, tried to convince the Judge that the 6-year delay was due to a lack of funds needed to pursue litigation, but the Judge dismissed the excuse as having “no authority” to uphold it.  She further stated that Avocet’s claim of lack of knowledge was unjustified because Avocet Sports should have taken action sooner if it knew of possible infringing activity by Polar Electro.

Avocet Sports filed the complaint a year ago against Polar Electro in a California federal courtroom alleging that Polar infringed on one of its patents.  The patent at issue, U.S. Patent Number 5,058,427, issued in 1991 for “Methods for selectively accumulating altitude changes”.  The patent involves a strap-on device which Avocet Sports developed as a GPS-type of monitor which tracks a hiker, cyclist, or runner’s variations in altitude while on a trek.

Avocet Sports has been an innovator of outdoor sports products including compact cycling computers, altimeters, heart rate monitors and other related equipment since 1977.  Avocet Sport’s complaint against Polar Electro claimed the two companies had discussed the possibility of a partnership or license to the technology, but that Polar Electro had branched out on its own, copied the design, and then sold its own similar device.

Polar Electro, which focuses on sports, physiology and electronics has been developing heart rate monitors since 1977.  It now sells its products in over 80 different countries, employing 1200 people.  Polar Electro has been aggressively marketing and selling the elevation-tracking device since 2004, spending significant sums of money, unaware they may have been infringing on Avocet Sport’s patent.  Because of this, the Judge felt Polar Electro would be unduly prejudiced by Avocet’s long delay in filing an action against it.

Now that the case has been dismissed, it may never be determined if Polar Electro had in fact infringed the patent.

Tagged as: Avocet Sports Technology, Polar Electro

Judge Upholds $368 Million FaceTime Patent Infringement Judgment against Apple

March 5, 2013, by Mandour & Associates, APC

Los Angeles – A Texas federal judge upheld a $368 million patent infringement judgment against Apple Inc. last week, but the judge refused to issue an injunction against Apple over the FaceTime app that would have prevented Apple from offering its video chat product on the market.

In November, a Texas jury found that Apple had infringed four patents owned by VirnetX Holding Corp. with its FaceTime application that is available for use on various Apple products, including the iPad and iPhone.

After the $368 million judgment against Apple in November, the technology giant filed several post-trial motions attempting to eliminate or reduce the verdict against it, which U.S. District Judge Leonard Davis denied.  The judge also ordered Apple to pay pre- and post-judgment interest to VirnetX, though he denied VirnetX’s request for attorney’s fees.

Judge Davis, however, rejected VirnetX’s bid for a permanent injunction that would prevent Apple from providing the popular videotelephony software application on its various devices.  As the app is already on millions of phones and tablets, Judge Davis said an injunction would be too drastic, resulting in unnecessary inconvenience and expense.

“The most recent estimates project the cost [for Apple] to comply at $50.8 million,” the judge said.  “Additionally, though VirnetX only seeks to enjoin the use of the infringing feature and not the entire devices, an injunction would not only harm Apple, but also its customers and other third parties.”

However, Judge Davis did order the two companies into mediation to determine a fair royalty rate that Apple will pay in order to use the technology in its products.

VirnetX originally filed the lawsuit against Apple in August 2010, alleging that Apple was infringing four patents.  The FaceTime app allows users to make video calls to others who also have Apple products with FaceTime.

VirnetX said in a statement that it was pleased with the judge’s decision to uphold the ruling against Apple and said that it would drop the related lawsuit it filed with the U.S. International Trade Commission and pursue relief through the federal courts.

Tagged as: Apple, VirnetX Holding

Online Health Records Company Sues WebMD for Patent Infringement

February 15, 2013, by Mandour & Associates, APC

Los Angeles – MyMedicalRecords Inc. filed a lawsuit in California federal court against the health information company WebMD Health Corp., claiming that WebMD has created an online portal for patient records that infringes one of its patents.

The online health records provider claimed that WebMD launched its new patient’s records portal after talks regarding MyMedicalRecords assisting WebMD revamp its old portal fell through.  It also claimed that the new portal infringes its patent that covers technology that allows patients to securely access personal health files stored remotely.

MyMedicalRecords filed the lawsuit on Monday in the Central District of California in Los Angeles and Judge Christina A. Snyder will hear the case.

MyMedicalRecords is a subsidiary of Los Angeles-based MMRGlocal Inc.  Its website allows users to store all of their medical information securely online and allows them to access and add to the records from anywhere.  The company also offers other methods for securely storing medical records and has seven patents to protect the technology.

WebMD provides health information to the general public, health care providers and health plans through both public and private portals.  The New York-based company approached MyMedicalRecords in May 2007 requesting assistance in developing a secure patient information portal, according to the complaint.

At the time, WebMD’s patient portal only allowed users to enter personal information, which could be compared against a database to give the user an assessment of his or her health.  WebMD admitted to MyMedicalRecords that its portal was limited and sought its advice on improving the portal, as WebMD wanted to have a system similar to MyMedicalRecords’ system.

The companies signed nondisclosure and confidentiality agreements and began talks.  According to MyMedicalRecords, WebMD halted the talks a few months later and then began altering its portal to include features of MyMedicalRecords portal.

According to the complaint, WebMD’s current portal allows users to integrate different forms of health information from various sources and store those records securely, which MyMedicalRecords claims directly infringes its patent.

MyMedicalRecords is seeking a judgment declaring that WebMD has willfully infringed its patent and an injunction forcing WebMD to cease infringing the patent in addition to damages, treble damages, interest, costs and attorney’s fees.

Tagged as: MyMedicalRecords, WebMD

Nokia, LG Accused of Infringing Integrated Circuit Patents

February 13, 2013, by Mandour & Associates, APC

Los Angeles – Tela Innovations Inc. filed a lawsuit against Nokia Corp, LG Electronics Inc., and several other companies with both the U.S. International Trade Commission and the Delaware federal court accusing the companies of infringing seven patents owned by Tela that cover technology related to integrated circuit manufacturing processes.

In addition to Nokia and LG, Tela filed separate lawsuits against Motorola Mobility LLC, HTC Corp., and Pantech Co. Ltd. in Delaware federal court and a joint complaint against all five companies with the ITC accusing the companies of copying Tela’s technology for optimizing the layout of integrated circuits in its smartphones without a license from Tela.

“Tela has, and continues to, create technology to address critical technical and economic challenges facing the semiconductor industry.  Our products enable designers to achieve the best performance, area and power characteristics possible as semiconductor processes continue to scale,” Scott Becker, CEO of the California-based Tela, said in a statement.  “Given the significance of our company’s investment in this technology and associated products, it was necessary to take legal action at this time.”

Tela, which is headquartered in Santa Clara County, said its patents protect improvement for the manufacture of integrated circuit chips, which are utilized in nearly all electronic devices including smartphones, tablets and laptops.  The manufacturing techniques allow manufacturers to perfect printing of a circuit layout on tiny chips.

In the complaints, Tela claims that each of the five companies have imported and sold smartphones or tablets that contain integrated circuits that infringe some combination of seven patents held by the company.

“Tela has been irreparably harmed by the defendants’ infringement of its valuable patent rights,” the complaint said. “Moreover, defendants’ unauthorized and infringing uses of Tela’s patented technology have threatened the value of this intellectual property.”

In the lawsuits filed in federal court, Tela is seeking damages and an injunction to prevent the companies from importing goods in the future that infringe its patents.  The ITC complaint is seeking a declaratory judgment that the companies have imported infringing goods and therefore have breached Section 337 of the Tariff Act of 1930.  If the ITC rules in favor of Tela, it could result in an exclusion order banning the companies from importing their devices into the United States.

Tagged as: LG Electronics, Nokia, Tela Innovations

Patent Chief Defends System Against Google and Other Critics

November 26, 2012, by Mandour & Associates, APC

Los Angeles – US Patent and Trademark Director Dave Kappos defended the patent system against critics, such as Google, who have been claiming the system is broken.

Google and other technology giants have long criticized the patent system, particularly when it comes to the handling of software patents.  Many issues in the debate were summed up in an opinion piece written by Kent Walker, senior vice president and general counsel for Google, which was posted yesterday on Wired.

Walker claimed that patent trolls are taking advantage of holes in the patent system, costing technology giants billions of dollars each year.  He called the government to action, claiming they need to get rid of bad software patents that have been issued, prevent bad software patents from being issued in the future, and provide “clearer rules for damages and awarding costs.”  Walker claimed that bad software patents include overly broad patents and business method patents.

The patent trolls are not only bad for businesses, Walker claims they are bad for consumers as well.  He claimed that fighting abusive litigation takes time and resources away from research and development in large companies and completely devastates small companies and start-ups, resulting in quashed competition and suppressed creativity.

These views are shared among many critics of the software patent system, but Kappos claimed in a speech this morning at the Center for American Progress that the software patent system is functioning the way it should be.

The patent office conducted a study of many different software patent lawsuits and found that the courts had found 80 percent of the patents in question valid, according to Kappos, thus getting rid of bad software patents would make little difference in the amount of software patent litigation.  He stated that the software patent wars are not a sign that the patent system is broken, but rather a sign that the patent system is working.

Kappos also claimed that the America Invents Act will take care of many of the issues critics are complaining about, but they have not yet given the AIA time to take effect. Among other things, Kappos said the AIA will help weed out business method patents and bad software patents.

His last major claim against his critics was that technology continues to develop very quickly, so he claims that critics who say development is being harmed by the litigation have no standing.

Regardless of whether the software patent system will end up being reformed or not, it appears that software patents will continue to be a hot topic.

Tagged as: AIA, Kappos

ITC Kicks Off Wireless Device Patent Investigation Into Amazon, Nintendo, Others

August 22, 2012, by Mandour & Associates, APC

Los Angeles – The U.S. International Trade Commission on Tuesday launched a Section 337 investigation into certain wireless consumer electronics devices and components to determine whether devices imported into the U.S. by Amazon.com, LG Electronics, Samsung Electronics, Nintendo Co. and others violate three companies’ patent rights regarding high speed microprocessors.

The products at issue in the investigation are consumer electronic devices with wireless capabilities, such as electronic tablets, smartphones, e-readers, mobile hotspots, broadband wireless modems, and handheld game consoles, the ITC said.

The probe is based on a complaint filed by Technology Properties Ltd. LLC and Phoenix Digital Solutions LLC of Cupertino, California, and Patriot Scientific Corp. of Carlsbad, CA, on July 24. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain wireless consumer electronics devices and components that infringe a patent asserted by the complainants. The three complainants have requested that the USITC issue an exclusion order and cease and desist orders.

The other companies involved in the investigation include Acer Inc., Barnes & Noble, Garmin Ltd., HTC Corp., Huawei Technologies Co., Kyocera Corp., Novatel Wireless Inc., Sierra Wireless Inc. and ZTE Corp.

The ITC has not yet made any decision on the merits of the case, the Commission said. According to standard procedure for 337 investigations, the ITC’s Chief Administrative Law Judge will assign the case to one of the ITC’s six administrative law judges who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337, but that initial determination is subject to review by the Commission.

The patent at issue, U.S. Patent Number 5,809,336, is titled “High performance microprocessor having variable speed system clock.” The microprocessor system includes an integrated circuit having a central processing unit and a ring oscillator variable speed system clock for clocking the microprocessor, according to the patent abstract.

The objective of the invention was to provide a high speed microprocessor with a reduced pin count and cost compared to conventional microprocessors, according to the patent summary.

Inventors Charles H. Moore of Woodside, California, and Russell H. Fish III of Mountain View, California were awarded the patent, which was assigned to Patriot Scientific on September 15, 1998 after filing their application on June 7, 1995.

Apple Awarded Patent For iPhone Case That Reduces Background Noise

July 19, 2012, by Mandour & Associates, APC

Los Angeles – Some might call this a year of innovation for Apple, as the pace of new and improved products seems to be increasing. New smartphones, head-mounted computer display devices, a sophisticated new stylus, and new technology abounds as the California company further increases its market share and pushes its stock price even higher.

Smartphone cases were one of the more recent innovations that were both functional, practical, and allowed users to express their personalities with a variety of colors and designs. Apple’s most recent contribution to its patent portfolio is a noise-canceling iPhone case. The newest patent involves a “windscreen”, designed to reduce distracting background sounds that are usually picked up by the device’s microphone and result in decreased sound quality. The patent is also good for all portable electronic devices that enable two-way conversations in real time.

Originally filed January 11, 2011, patent application number 20120177239 shows a diagram with a windscreen over the microphone, which is specially designed to reduce wind noise, air blasts and any other noise that may negatively affect call quality. The patent includes a diagram that shows a “windscreen” sealed across the opening of the case, aligned with the device’s microphone port.

The new product would effectively allow intelligible speech despite background noise and without requiring the user to increase call or voice volume. According to the patent application, the case will be formed from plastic, acrylic, polycarbonate, silicon, or rubber. The screen will likely be of mesh, foam or a feather-like material. And like the current products, the new noise-reduction cases will be available in different colors and designs. A release date for the new iPhone case has not been determined yet. However, judging by the shape of the case in the diagram, it appears that iPhones will remain the same size and shape or the new case will be released prior to any changes down the road for iPhone designs.

Tech Giant Qualcomm Restructures Business To Protect Patent Portfolio

July 16, 2012, by Mandour & Associates, APC

Los Angeles – Qualcomm owns thousands of patents and has dozens more in development to add to its significant patent portfolio. Additionally, as a leader in mobile technologies and chip manufacturing, Qualcomm has long captured a significant market share by ensuring that its products are embedded in the top computers, phones and other hand-held devices.

However, its mobile technologies have become more and more important in its company growth plan. Mobile technologies account for 90% of Qualcomm’s patent licensing revenues and a large chunk of the company’s revenue on the whole. Moreover, Qualcomm’s patents are becoming increasingly significant as the use of 3G and 4G networks proliferate. Consequently, the San Diego based communications specialist and chip manufacturer recently determined that its current business structure did not adequately support the desired direction of its development and sales. As such, Qualcomm announced that it has plans to restructure its business operations. That reorganization includes the addition of new units to handle its chip business, effectively separating that part of its business from its key mobile communications and other intellectual property.

This is not to say that Qualcomm’s chip development is not also an integral part of its business. Apple is one of Qualcomm’s biggest customers using Qualcomm’s baseband chips in its tremendously popular iPhones and iPads. Additionally, the Snapdragon chip for smart phones and tablets is being used in Google’s Android and future laptops supporting Microsoft’s Windows RT Operating Systems. Qualcomm is highly motivated to continue its growth in the chip manufacturing field, thus the separation of its critical portions of business are expected to yield positive results almost immediately. To that end, Qualcomm expects that it’s reshuffling of business operations will allow products and services to be delivered more quickly and efficiently.

The tech behemoth also anticipates that separation of its open-source contributions from its 3G/4G patents will allow for greater efforts to increase market shares in both areas. Qualcomm is one of the more prolific and aggressive patent licensing companies with a significant patent portfolio. However, the nature of its internal organization did not allow for as much development in open-source software as many other top companies in the industry. It is anticipated that the recent reorganization will allow for greater contributions to open-source communities, as well as concurrent patent development. Patents are not necessary for contribution, but the restructure will now allow Qualcomm to compete with IBM and other significant open-source contributors without weakening the company’s market share.

Apple’s Water Damage Detection Device Is Awarded Patent

July 6, 2012, by Mandour & Associates, APC

Los Angeles – Almost everyone knows someone who has accidentally dropped their phone in water and then been forced to deal with the unhappy repercussions. Most people first attempt to dry out the device before resorting to customer service just purchasing a new phone.

With an eye toward this problem, Apple announced this week that it has received a patent for its liquid contact indicator technology. Patent 8,210,032 was awarded for Apple’s technology that can quickly determine whether or not a device has been submerged in liquid. The tiny electronic device, intended for use by customer service representatives, is placed inside the product and provides a visual indicator when a product is dropped into water or any other liquid. The liquid indicator technology included in Apple’s new patent is particularly helpful because water damage is one of the top reasons for product malfunction. Because it is sometimes difficult to determine the exact reason for product malfunction by a simple physical examination or a quick phone call, verification of water exposure is an essential troubleshooting feature. The instantaneous verification of a blinking red light can assist customer service representatives to quickly ascertain the exact nature of the problem, provide more efficient trouble-shooting and help in warranty claim assessment.

Despite the fact that the patent for its water detection device was filed in 2010 and awarded only recently, Apple has included some form of the technology in products since the inception of the iPhone. The water detection technology is particularly important because Apple’s iPhone warranty specifically excludes water damage. Apple’s iPhones currently have a small button that shows red when a device is dropped in water, thus giving customer service representatives the instant ability to ascertain specific details about product malfunction. Consequently, by instantly eliminating the warranty claims of any consumer who has dropped their device in water, the company can save thousands of dollars in insurance claims and countless hours of wasted customer service representative troubleshooting.

Microsofts Buys 800 Patents from AOL for $1 Billion

April 19, 2012, by Mandour & Associates, APC

Los Angeles – The flailing Internet service provider America Online (AOL Inc.) has sold approximately 800 technology patents to Microsoft at a recent patent auction. Patent fire sales are becoming more and more popular as floundering companies try to raise the funds to stay afloat and for financially sound companies to increase their market share and earn licensing royalties.

Microsoft would not comment on what technology the patents cover, however technology analysts believe they relate to Internet technology, including advertising, search, and mapping. If that is the case with the patents purchased from AOL, Microsoft will have a chance at competing with Google, which dominates the market in all three areas.

“There is a fight for market share occurring on multiple fronts – technology, patents, and advertising,” stated Colin Gillis, an analyst with BGC Partners, who covers Microsoft. “Microsoft, more so than others out there, has been using its patent portfolio as a way to generate license fees. This should strengthen that.”

In recent years, the high-tech industry has become a hot bed for patent sales as well as for messy litigation. Many companies, such as Apple, Microsoft, and Samsung have used their patent artillery for suing their competitors for patent infringement as well as for disputing infringement claims against them by trying to invalidate their competitors patents.

A recent example of this is social networking giant Facebook acquiring 750 patents from IBM, which aided the company in defending itself after being sued for infringing 10 Yahoo patents. With the newly acquired patent portfolio, Facebook was able to respond to Yahoo’s complaint with a counter complaint, accusing Yahoo of violating ten of its patents.

Just after the announcement of the patent sale, AOL’s stock rose $7.98 or 43% per share, to $26.40. The iconic Internet service provider says it plans to pay out a portion of the proceeds as dividends to its shareholders. Once the sale is final, AOL should have about $15 per share of cash on hand.

AOL will still retain more than three hundred patents covering a wide array of technologies, including advertising, search, content generation, social networking, mapping, multimedia, and security.

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