The E-Data Corporation has announced a world-wide agreement for past and future royalties has been reached with On Demand Distribution GmbH (OD2), settling the infringement actions against OD2, HMV Group , Tiscali and Microsoft. For infringing upon E-Data’s European patent EP0195098B-1, also known as “the Freeny patent.” This settlement resolves all outstanding litigation with the companies. As part of the agreement, financial terms of the settlement were not disclosed.
The Freeny patent covers the downloading and recording of information, such as music, from a computer onto a tangible object, such as CDs, DVDs and MP3 players. The OD2 platform enables Tiscali Music Club customers and HMV customers to download individual music tracks for a fee using Microsoft’s Windows Media Player and Digital Rights Management technology.
Bert Brodsky, chairman of E-Data Corporation stated, “We are quite pleased with this settlement as it further reinforces the scope and validity of the Freeny patent in Europe. While the OD2 service is still in the nascent stage, which is reflected in the settlement, the agreement sends an important message to other companies infringing upon our intellectual property. Importantly, OD2’s service in Europe parallels iTunes Music Store, a successful music downloading service developed by Apple in the United States, and which Apple plans to launch in Europe later this year. Moreover, we are currently in talks with a number of prominent companies in Europe infringing upon our intellectual property, and may seek injunctions against these companies if necessary.” In the United States, E-Data has secured more than 30 domestic licenses and had received a favourable decision by the Court of Appeals for the Federal Circuit on November 6, 2000, supporting the scope of the company’s patents.