Thursday, March 27, 2008

What is a patent troll? Not DigitalContainers and here is why.

We are involved in some patent litigation at this point. We are doing this as a last resort...having tried everything to get licenses from the companies in the suit. People in a knee jerk way tend to call any company resorting to litigation a patent troll. Below is an explanation I left on a blogger site that referred to as such.

"Patent trolls, as the name has evolved, usually refers to companies that accumulate patents for the purpose of pursuing litigation…that being their only business model. In most cases, these companies had nothing to do with the invention itself. In the case of Digital Reg of Texas, the owners are part of the original team that invented the technologies back in 1998. Their company won “Best New Company” at InternetWorld 1998 and was one of the very first to sell music and books on the Internet, on themusicrack.com, and the bookrack.com. Although this suit is based on just one patent, the parent of Digital Reg, DRM Technologies, Inc. and its operating corporation, DigitalContainers, Inc. has a portfolio of granted patents that cover a range of technologies that allow for content to be downloaded directly from search results and online advertising, and then be passed around, with perpetual rights management and monetization. As a pioneering company in DRM, and with the patents and awards to prove it, we do not believe we are in the patent troll category. As to why we are not including Intertrust in the action, it is because in the late 90’s we and Intertrust were among the only companies developing DRM technologies, and we were very aware of each other. Our way of doing it was highly differentiated from their’s, and our patents cite their work extensively. The patent office agreed that there was no overlap between Intertrust and us."

There is a lot more to be said about this...but trolls we are not.

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