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Forgent compresses JPEG disputes

Forgent compresses JPEG disputes

Forgent, the patent-holdings giant, announced this week that it has accepted US$8 million damages from over 40 software and technology firms for illegal use of a JPEG system it owns the rights to. While the settlement marks the end of a long series of legal disputes over the system, it is still just a small percentage of the kind of sum that Forgent had sought, having valued the patent at US$1 billion. Full terms of the settlement were not disclosed.

US Patent No. 4,698,672, first awarded on 6 October 1987 and commonly known as the ‘672 Patent’, describes a method of compression for JPEG image files that assists with the storage of multiple pictures. Forgent acquired the patent rights in 1997, and began a series of licensing agreements with select manufacturers.

Through its established licenses, Forgent has netted royalties of over US$110 million from more than 50 firms. However, with the growing use of digital cameras, camera-phones and home photo-printing kits, a host of technology firms have been competing with each other to offer consumers the best means of handling JPEG images – filenames for which typically bear the ‘.jpg’ suffix. Forgent’s lawsuits had been concerned with uses of its 672 method that had taken place outside official licensing agreements.

Forgent chairman and CEO, Richard Snyder, said: 'We are satisfied with the resolution of this matter ... 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.' The '746 hearing stems from legal action launched against 15 firms in 2005, over a computer-controlled video playback system.

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