ACTV Claims License To License
broadbandweek.com by Karen Brown from the September 2000 issue of Broadband Week
It's not as broad a claim as Al Gore's invention of the Internet, but technology developer ACTV appears to want just as much credit in the interactive television arena.
The New York-based company is setting up a licensing program covering some 16 issued and pending patents covering iTV functions, and putting other companies on notice that it will work to protect those rights.
Covered functions include automatic delivery of Web addresses and content during a program, embedded links allowing viewers to access additional information during a program, chat functions and bookmarking of Web pages associated with a program.
ACTV CEO William Samuels said the move was not just to protect ACTV's intellectual property but to nurture the industry by offering others access to the technology - for a fee.
"The primary reason is today, if you look at all of the programming that could be enhanced, only a small fraction of the content - whether it be on cable or broadcast - is interactive enabled," he says. "What we want to do is to take the experiences we have gained in the last six months and take it to the remaining 99 percent."
"The primary objective is letting the market know that yes, we do have valuable IP (intellectual property) but also we will offer it at a very reasonable rate," he adds. "For the one percent of people in the space it says 'Yes, we have this and as a publicly traded company, we want to be treated fairly.'"
ACTV hasn't sued anyone yet for using its patented technology, but Samuels won't rule out the possibility. "The hope is others in the industry we do perceive as needing a license with us will see this license as a value," he says.
Besides potential licensing revenue, ACTV's business plan includes content creation, hosting and post production services courtesy of a relationship with its major partner, AT&T Corp. subsidiary Liberty LiveWire.
ACTV, which started producing interactive television spots late last year, has gotten repeat business through Viacom Inc. and Turner Broadcasting Corp., and raised $140 million of new capital in February.
"This is a very exciting industry that is still small, and hopefully everyone will work together," Samuels says. "This is a business where it would be best to see a community of interest before we start to take verbal shots." |