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Deal gives Microsoft a leg up on digital media | |
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||
| Time: 13:24 EST/18:24 GMT | News Source: E-Mail | Posted By: Byron Hinson | ||
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In settling with InterTrust Technologies Corp., Microsoft Corp. could be gaining a big advantage in the growing market for distributing music and videos online -- to the detriment of competitors who now risk getting caught in InterTrust patent squabbles of their own. Microsoft announced Monday it would pay $440 million to InterTrust to settle a 3-year-old patent infringement lawsuit over technology for protecting music, movies and other digital content against piracy. | ||
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| #1 By 21912 (24.205.202.246) at 4/14/2004 1:47:50 AM |
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Gosh, if only there were some way Microsoft could guarantee to digital media providers that a DRM-enabled media player were already on nearly everyone's desktop, it would certainly eliminate a lot of the confusion in this huge new market. I'm quite certain they wouldn't abuse any potential advantage it might give to their proprietary tools and delivery systems.
And I bet if they tried really hard, they could use the word "innovate" at least 5 times in every press release ;-) Hey, I never claimed not to be cynical. |
| #2 By 1643 (24.229.63.178) at 4/14/2004 12:43:30 PM |
| Halcyon-X12, you sound like a anti-ms PR rep. |
| #3 By 3339 (64.160.58.135) at 4/14/2004 1:17:00 PM |
|
Halycon, remember, the people writing most of these articles don't get it. It's not clear that any other company using DRM is at risk to InterTrust's patents... Remember, the circumstances with Microsoft were: they entered a technology agreement with Intertrust, viewed, studied, and integrated their technology and then dumped Intertrust in the alley...
Many companies have many patents on DRM. It appears most of Microsoft's current DRM tech is coming out of ContentGuard. There is no reason to presume that anyone else has the same risk exposure to Intertrust. Why did they settle? Because the case could have gone on for another 3 or 4 years at which point MS could have replaced most of the infringing code with code from ContentGuard... They would have wanted to because of 3rd party concerns... In which case, Microsoft would still be liable for patent infringement but they'd no longer need to license the patents. With a settlement Sony can guarantee that they get some patent licensing from MS for some number of years... slowing down MS from moving on to rip off some other company's patents for DRM (that's a joke... MS has invested heavily in ContentGuard) and getting some value from the Intertrust IP. Remember: Sony bought Intertrust... For them, they wanted the IP for their own use... beyond that, they probably jsut want to break even and or make a modest sum through licensing to MS partners not covered by MS's licensing agreement. This post was edited by sodajerk on Wednesday, April 14, 2004 at 15:07. |
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