E-data Wins Round in 5-Year Landmark Patent Fight
Sees Victory as Step Toward Dominating Kiosk Data Downloads
NEW YORK --Nov. 6, 2000-- "We hold that the district court erred in at least one aspect of its construction of each of the five claim limitations upon which the judgment of non-infringement was based. Accordingly, we vacate and remand for further proceedings consistent with the claim construction provided in this opinion." With these words, the Court of Appeals Federal Circuit vacated and remanded Interactive Gift, Inc. (a/k/a E-Data Corporation) v. Compuserve Incorporated, et. al. E-Data had appealed from a ruling entered by the U. S. District Court for the Southern District of New York on March 12, 1999 concerning E-Data's U.S. Patent No. 4,528,643 known as the "Freeny patent."
E-Data Corporation announced this morning that the long awaited Court of Appeals ruling on its appeal was published late Friday, November 3, 2000. E-Data President, Scott Hillstrom said, "this case represents a strong victory for E-Data. While we didn't win every point, and some questions remain to be decided, E-Data's position in the digital product distribution marketplace is strengthened substantially."
The ruling construed the patent's claims in such a way that its application to virtually all U.S. kiosk businesses selling digitally downloadable products (e.g. music, video games, books, etc.) is clear. For example, "based on this
ruling, real-time streaming is covered by the patent and it is not necessary that kiosks locally pre-store the digital products being sold for the patent to apply," said Hillstrom.
The ruling also clarifies the issues that may now be addressed in further litigation relating to the sale of software, video games, music and other products downloaded by businesses and consumers to offices and homes. While the lower court had ruled that the patent precluded coverage of such transactions, the Federal Circuit held that such transactions are not precluded by the patent where all of the elements of the claims are present. Regrettably, the ruling holds that sales of digital products downloaded only to PC hard drives are not covered by the patent but leaves avenues open where digital products are downloaded, streamed or copied onto compact discs, paper or other storage media in homes and offices. "This method of distribution of music and other products is anticipated to be a large and fast growing market in the near future and we are optimistic that we will reach a large percentage of it with the clear path we can see ahead based on this ruling," said Hillstrom.
E-data owns North American and European patents covering a specific system and method of distributing information over electronic and wireless networks . These patents are basic building blocks of an emerging global market for music, books, films and other products digitally distributed through kiosk networks. Under its innovative business model, E-data will actively partner with companies in various market segments to leverage its intellectual property rights by practicing as well as licensing its proprietary technology.
E-data Corporation, formerly known as Interactive Gift Express, holds U.S. Patent No. 4,58,643 entitled "System for Reproducing Information in Material Objects at a Point of Sale Location" and corresponding Canadian, UK and European patents.
Note: This press release for E-data Corporation may contain "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 regarding events, conditions and financial trends that may affect the company's operating results and financial position. Prospective investors are cautioned that forward-looking statements are not guarantees of future performance. Actual events or results may differ from the company's expectations, which are subject to various risks and uncertainties including but not limited to protracted judicial proceedings, growth trends in e-commerce and the ability of the company to finance its licensing and marketing activities.
Contact:
E-data Corporation
Scott Hillstrom, CEO
651/452-6003
or
Agency Contact:
Warren J. Cavior,
The Cavior Organization
212/687-6070 / caviorg@aol.com |
