Rich Media Patent Stirs Controversy

By Ed Oswald | Published February 23, 2006, 12:42 PM

The United States Patent and Trademark Office earlier this week granted design company Balthaser the rights to a patent that covers the creation of rich media applications on the Internet. While it may not seem like the news is of any consequence, the San Francisco-based company intends to demand payment from those using a range of Web technologies.

The awarding of the rights to Balthaser is sure to again stir controversy regarding the patent process, especially in light of recent patent fights involving companies such as Visto and NTP.

Companies who build applications using Flash, AJAX, Java, or a host of other methods to deliver rich content could all be affected.

"This new addition to our patent portfolio is a pioneering patent and provides significant licensing opportunities for both Balthaser and our licensees," CEO and chairman Neil Balthaser said in prepared remarks.

If the patent is allowed to stand, it could mean millions -- if not billions -- of dollars in revenue for Balthaser through licensing fees and royalties. However, questions have already arisen on its validity.

According to press reports, Balthaser filed for the patent on February 9, 2001. However, in 1999 a system to create multimedia content online was released by a company called Javu Technologies. Those affected by the patent could use Javu's work as evidence of "prior art," a common defense in attempting to strike down illegitimate patents.

Bola Rotibi, senior analyst with Ovum, says the patent carries broad implications. "What it does signify is the growing issues over intellectual property and patents within the IT industry, and it raises some important questions around what it is right to patent," she said, alluding to the high profile RIM-NTP case.

Many of the technologies that this patent would cover are being used in next generation Web applications such as Google Maps, Rotibi explained, and it would be damaging to the future of such advances if the big players allow Balthaser to "sneak away with the goodies."

"With such an action looming it is conceivable to predict a massive rush by the big players to either fight the patent or purchase Balthaser," she continued. "Either way, a mouse with respect to Balthaser's size has roared, and the consequences are unpredictable but important."

Comments

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What is happening here? this is just nuts.
soon it will come to no inovation in america, why? becuase trying anything may get you sued or liable due to patents or the way that people use your new invention.

I am hopefull that other countries take note of this and begin to out tech/science and etc.. the USA, after all, i think that the people in controll need to see that this country is a stagnent as a brackish pond.

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Btw, I have patented the technique of breathing.
Either pay me or choke!

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All this does is open the door for legal fees and future court battles. This is getting stupid. On one hand USPTO says NTP's holdings are too broad and may be invalidated by prior art. On the other hand they go and grant a vague patent that may already have prior art known. Stupid. Someone needs to clean house at USPTO.

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feedback@balthaser.com

925-658-1800

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"The United States Patent and Trademark Office earlier this week granted design company Balthaser the rights to a patent that covers the creation of rich media applications on the Internet."

Shortly thereafter, Google releases an Online Page Creator using AJAX, one of the technologies supposedly in jeapordy from this new patent.

Gotta wonder how MS (Windows Live, Outlook WebAccess), Google and the like are going to react to this if Balthaser tries to enforce this patent.

Sounds like someone in the patent office didn't do their homework...yet again.

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I've got an idea. I'm going to patent the universe, and anyone living in it will have to pay me royalties. That goes for you as well God, don't think you can omnipotence you way out of this one.

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Omnipotence...Gotta get me some of that.

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ROTFL!!

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This seems kind of crazy to me. Seems like a very broad patent.

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The Free Market is getting more and more Expensive...

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