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Technology Stocks : General Magic

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To: Thotdoc who wrote (9733)8/15/2001 6:34:43 PM
From: Sully-  Read Replies (1) of 10081
 
From GMGC's web site............

General Magic to license VUI patent

the451.com, August 14
by Steve Coplan

San Francisco - General Magic has won an extension to its patents that cover voice user interfaces (VUIs) "with a human personality," and is in the process of coming up with a licensing program for the intellectual property. The move may be a controversial one for the fledgling voice technology space.

Since the company has only recently been awarded the patent that it contends covers any voice user interface with a personality, it has no licensing scheme in place. However, among the companies General Magic considers potential licensees of the VUI patent are Nuance (with its Persona services) and AT&T Labs, because of the recent release of its Natural Voices text-to-speech software.

General Magic's original patent was filed three years ago, but the company has continued to add new claims. The latest extension means General Magic "will hold pioneering intellectual property rights related to the design and implementation of human-like voice user interfaces."

Although Nuance and AT&T Labs are the obvious candidates for an effort to capitalize on the patent, it's possible any startup developing a VUI could face a licensing claim from General Magic. "This covers virtually anyone building a voice user interface, but we still have to determine cases on a company-to-company basis," a General Magic spokeswoman said.

Although the company says it is not considering litigation to back up the licensing program, it's difficult to conceive of another method of enforcing the claim. The move could potentially be disruptive for the voice technology marketplace since it's unclear who would be liable for licensing fees and the extent of their liability under the licensing program. It's become clear that the quality of the VUI is crucial for voice applications, and there's some benefit in developing a standardized interface. But General Magic may have to be flexible in pressing its claims.

The licensing initiative calls to mind the legal dispute that raged between Geoworks and Phone.com (which merged with Software.com to form Openwave) over IP licensing for WAP applications. While the dispute was not necessarily a factor in the disappointing uptake of WAP services, it did serve as a distraction during an early stage of the industry's development. The companies eventually came to a sublicensing agreement, whereby any customer buying Openwave's browser or WAP gateway becomes a de facto licensee of the Geoworks Flex UI patent.

General Magic believes that the patent will allow licensees to take advantage of the methodology for VUIs that it has developed for applications like GM OnStar's Virtual Advisor and its own magicTalk platform.

The patented methodology includes a seven-step process for developing the VUI, including a 'back story,' or mini-biography for the voice, interaction model design and post-production techniques. Apart from the production process, General Magic has done research into conversational protocols and the implicit rules that underlie interactions.

Also, the work the company has done in establishing patterns through non-verbal characteristics like pitch, amplitude and speech rate can translate into better matching of VUIs to the personalities companies may want to portray. General Magic is looking to raise $15m in funding within the next few months to stay afloat. A revenue stream from IP licensing would clearly be reassuring for potential investors .

genmagic.com
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