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INTERTRUST BROADENS PATENT SUIT AGAINST MICROSOFT

Intellectual property developer InterTrust said Mon. it was “substantially broadening” patent infringement suit filed last year against Microsoft on Xbox videogame consoles and other key products. Santa Clara-based InterTrust said it added 4 new patents to suit, more than doubling number of claims involved in case to 11 patents, 144 claims and “over 190 separate infringement scenarios.” InterTrust said it was seeking injunction against various Microsoft products, including Xbox, Windows XP, Office XP, Microsoft.NET and Windows Media Player as well as compensatory and punitive damages. Microsoft couldn’t be reached for comment by our Mon. deadline.

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Microsoft was first sued by InterTrust in April 2001 in U.S. Dist. Court, San Francisco when latter charged that software giant’s Windows Media violated patents covering its digital rights management (DRM) technology. Besides limiting ability to make copies, DRM technology can be used to enforce array of rules set by copyright holders. Among InterTrust’s licensees are Bertelsmann and Vivendi Universal. At that time, we noted that although tiny compared with Microsoft -- InterTrust has only 35 employees -- company has substantial patent portfolio by virtue of head start in field. As of April 2001, InterTrust said it held 18 U.S. patents and had filed for 47 others and now says it holds 24 U.S. patents and has 90 applications pending worldwide.

Since first filing, InterTrust said it expanded suit “by adding numerous significant Microsoft products and services that use InterTrust’s patented innovations in basic infrastructure for trusted computing and digital rights management.” It said all its current assertions against Microsoft were related to DRM and product activation technologies, .NET and related security technologies, trusted and reliable operating system technologies. Company believes “Microsoft’s forward-going technology infrastructure significantly relies on InterTrust’s inventions for DRM and trusted computing,” it said.

Although Microsoft comment was unavailable Mon., InterTrust said Microsoft had filed answer denying all allegations involving 7 patents and in turn contended InterTrust had infringed on 2 Microsoft patents relating to downloading of software. InterTrust said it didn’t believe latter 2 patents were “valid, infringed or significant to its business.” It also said Microsoft hadn’t yet responded to allegation it made in Feb. that Microsoft’s Plug and Play Driver Certification Program infringed on InterTrust’s U.S. patent No. 6,157,721. InterTrust said it filed for interference proceeding in Jan. in U.S. Patent Office to assume ownership of Microsoft’s 2 “recently issued” Trusted Operating system patents. In interference proceeding, Patent Office determines which party is true inventor of disputed technology. InterTrust contended that “technology fundamental to the 2 Microsoft patents was originally invented by InterTrust and the subject of InterTrust patent applications filed more than 3 years before Microsoft’s patent application date.”

Meanwhile, Microsoft finds itself involved in another patent dispute. Attorney Brian Racilla of firm Fish & Richardson filed complaint Fri. with International Trade Commission (ITC) on behalf of Microsoft against Ultimate Game Club (UGC), Old Saybrook, Conn. Racilla requested that ITC conduct investigation under Sec. 337 of Tariff Act of 1930 involving certain videogame systems, accessories, components. Racilla and Microsoft spokeswoman weren’t available for comment by our deadline to clarify nature of dispute and it was unclear precisely what kind of company UGC was. Latter also couldn’t be reached by our deadline. Complaint appeared to be accusation by Microsoft that UGC was infringing on Xbox patent in some way. Sec. 337 of Tariff Act relates to investigations of infringements of patents, trademarks, copyrights, other unfair practices in import trade.