Forgent Settles JPEG Patent Litigation
Patent holding firm Forgent said Wednesday that it had settled its lawsuit over its JPEG patent, however it settled for significantly less than the $1 billion it hoped to make as a result. According to reports, the company has settled with about 30 companies for about $8 million.
Over 60 companies have already settled with Forgent, raising some $110 million in royalties. However, a group of about 45 PC makers and other companies refused, triggering a lawsuit. Before this final settlement, 15 companies, including Yahoo, decided to settle.
Much of the reason why Forgent may have lost quite a bit at the bargaining table is due to questions over the patents validity. The Public Patent Foundation was successful in May in having the patent rejected in an initial review, and in June a court put limits on what portions of the patent Forgent could assert.
Still, the company put a positive spin on the developments, saying it was satisfied with the end result. "We are satisfied with the resolution of this matter. Over the life of the '672 patent, we have collected in excess of $110M," Forgent chairman and CEO Richard Snyder said in a statement.
"But expect to hear more from Forgent very soon. Our focus now shifts to the November '746 patent claims construction hearing and the May 2007 jury trial and continuing to grow our NetSimplicity software business," he continued.
The '746 patent involves technology within the digital video recorders used by cable companies.