Company that filed the case: Marathon Patent Group is a non-practicing patent holding company representing the Rensselaer Polytechnic Institute. In other words, it is a patent troll. When RPI decided that it wanted to monetize the patent, it went to Dynamic Advances, which later became a part of RPI.
Accused Company: Apple
Topic of accusation: Siri's voice control on the iPhone and iPad
Patent Details: The patent in question is patent number 7177798 which describes a system for "processing natural language input" and dates back to 2000. It also covers the use of natural language to process database queries--this is what Siri does when you say, "Call Mom"-- it looks for a command (AKA Call) and searched "Mom" in the database (contact directory). From looking at the patent, it does look like Apple had been infringing on the patent- knowingly or unknowingly.
Settlement: $24.9 million
About half of the money ($12.5 million) from the settlement will go to MPG, and the rest will go to RPI, an unnamed exclusive licensee, and the legal team handling the case.
Apple was willing to settle the case instead of going to trial, which is interesting. We can make one of two assumptions about this stand: Apple's legal team knew MPG would win in court, or Apple felt it was more cost effective to settle than pursue a legal fight.
Either ways, it is sad because the patent troll won again. And as we have repeatedly talked about it in our posts, patent trolls need to be stopped because they hinder technological growth and innovation by discouraging innovators in the fear of being sued.
[MPG said it has plans to go after other companies, too, and it'll no doubt make sure everyone knows Apple already agreed to pay up.]
Hi Srushti,
ReplyDeleteAfter a semester of "patent troll"s, these cases don't surprise me anymore. Big companies just don't want to deal with these issues and they almost immediately choose to settle the case instead of going to trial. On the other hand, I am very surprised that a reasonably big institute like Rensselaer Polytechnic Institute is involved with trolling. Thanks!