Forgent to get rich from JPEG

[morriswindgate]

Forgent Networks (formally known as VTEL) has posted a press release stating their claim to JPEG and their intention to pursue licensing revenue from companies who use it. They own United States patent 4,698,672 which covers the JPEG compression standard, this patent was created by Compression Labs who Forgent bought back in 1997. The press release specifically mentions digital cameras as well as PDA's, web browsers, phones and scanners. It looks as though Sony has already paid $15 million for the privilege...

From The Register:


"Forgent's most recent SEC filing states that Sony Corporation paid the company $15 million for licensing Patent 4,698,672: a significant portion of the $22 million Forgent booked as revenue in the quarter."


From Forgent's own SEC Filing:


In May 2002, Forgent signed a multi-million dollar patent license agreement with Sony Corporation, a leading manufacturer of audio, video, communications and information technology products for the consumer and professional markets. The patent agreement relates to the Company's data compression technology and marks the second such agreement that Forgent has obtained. The first agreement, with another prestigious international company, was signed in April 2002 and generated $15.0 million in revenue during the three months ended April 30, 2002 for the Company. The Company is pursuing additional license agreements with other companies from multiple industries; however, there can be no assurance that additional licenses can be obtained or, if obtained will be on similar favorable terms.


Press Release:


Forgent Networks Clarifies Licensing Arrangement AUSTIN, Texas, Jul 11, 2002 (BUSINESS WIRE) -- Forgent(tm) Networks Inc. (Nasdaq:FORG) today clarified its licensing program regarding Forgent's JPEG data compression technology, owned by its subsidiary Compression Labs Inc., embodied in U.S. Patent No. 4,698,672.


JPEG is a standardized image compression mechanism and is designed for compressing either full-color or gray-scale still images.


Forgent has the sole and exclusive right to use and license all the claims under the '672 patent that implement JPEG in all "fields of use" except in the satellite broadcast business. Forgent's "fields of use" for licensing opportunities include digital cameras, digital still image devices, personal digital assistants (PDA's), cellular telephones that download images, browsers, digital camcorders with a still image function, scanners and other devices used to compress, store, manipulate, print or transmit digital images.


Forgent and a national law firm, who has made and continues to make a significant investment to develop Forgent's IP licensing program, are the sole beneficiaries of the patent license revenue.


"We wanted to ensure the investment community and the general public are clear about the terms of our valuable JPEG data compression technology, one of the many technologies we have in our patent portfolio," stated Richard Snyder, chairman and chief executive officer at Forgent. "We are in ongoing discussions with other manufacturers of digital still cameras, printers, scanners and other products that use JPEG technology for licensing opportunities."

[MSIuser]

Looks like a court case coming on.

[moonlight burner]

If it's listed in the stock exchange, I think it's share price might very well shoot up

[mairving]

FORG is the stock symbol. In spite of posting record earnings, their stock was down yesterday. Most analysts have listed it as a strong sell. It seems like the market may not believe in their claim. The patent was issued 16 years ago on coding system for reducing redundancy , not on the actual jpeg compression. A US patent is only good for 20yrs. I am sure that it will be tied up in courts until then.
Another company is trying to say now that it holds the patent to hyperlinks. Next I guess Al Gore is going to sue since he invented the Internet and will want licensing fees from users.

[Furius92]

Where do you people get this? You don't even know what Al Gore actually said, do you?

He said he invented the internet regulations. Not just the internet, it's just the media chose to quote him with leaving out the last part.

[mairving]

What he actually said In a March 1999 interview with Wolf Blitzer, was:

"During my service in the United States Congress I took the initiative in creating the Internet."

Which is totally false.

[Roberto49]

Check this out for how crazy things can get

http://www.despair.com/demotivators/frownonthis.html

[moonlight burner]

Originally posted by Roberto49 Check this out for how crazy things can get http://www.despair.com/demotivators/frownonthis.html

Sounds more like 'desperado' for MONEY.

"Al Gore created the Internet"- I think it's just part of , "Professional Public Speech", to interest the audience like you and me