What is "the Wolzien" patent, and why did ACTV buy it?
ACTV has acquired US Patent 5,761,606 from Tom Wolzien, the senior media analyst at Sanford Bernstein. Generally speaking, the Wolzien patent pertains to any system that would allow a user to "pull" Internet information from a video or audio program. This patent is uniquely complementary to the "HyperTV" patent (US Patent 5,778,181) which ACTV already owned, which pertained to any system that would allow a programmer to "push" Internet information in a video signal to a viewer. With both the "push" and "pull" patents under one corporate entity, ACTV has established a uniquely strong patent position pertaining to any system which essentially combines the power of the television (as it pertains to delivering mass audiences) with the power of the Internet (and its ability to deliver information, and facilitate e-commerce).
Who is Tom Wolzien, and why did he do a deal with ACTV?
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Tom Wolzien is a leading Wall Street media analyst, working for Sanford Bernstein, who covers the largest media companies in the US, including Liberty Media, Time Warner, AOL and Disney. Prior to joining Sanford Bernstein in 1991, Mr. Wolzien spent 16 years at NBC. It was approximately 10 years ago, as Vice President of Business Development at NBC, that Mr. Wolzien was first introduced to ACTV, Inc. Mr. Wolzien had been aware of the ACTV business model, and its technology, since its inception. Mr. Wolzien applied for his patent in early 1996, and the patent was issued last July 1998. In a recent interview with theStreet.com, Mr. Wolzien was quoted describing his patent and the significance thereof:
"It's a process patent that basically links programming with online, so that you can go straight from viewing a television, straight to an online site. It's an icon that comes up on the screen, you push a button, then you go … it's a technology that has application pretty much across the board." Tom Wolzien, to Alex Berenson, Senior Writer, theStreet.com, 3/15/99
Obviously, given his position and relationships in the industry, Mr. Wolzien could have gone to practically any media giant with his patent. In conversations with senior management and Mr. Wolzien, we believe the following to be the most salient reasons for his choosing ACTV to commercialize his patent:
Wolzien has known ACTV management for many years. He was aware that ACTV had the technology, HyperTV, to bridge the gap between TV and the Internet, ensuring a more expeditious path to commercialization. HyperTV is commercially available today.
Wolzien has significant TV network experience, and appreciated ACTV's "TV-centric" approach to the convergence experience. ACTV's HyperTV experience supports the brand identity of programming networks and their advertisers.
Liberty Media's significant ownership position in ACTV provides a comfort level that the technology will be commercialized, rather than "warehoused."
We believe that Wolzien's choice of ACTV reflects his confidence in William Samuels, ACTV's Chairman & CEO, and the management team he assembled, and the team's ability to deliver and commercialize technology (Individualized Television, HyperTV, eSchool Online), deliver corporate partnerships (FOX Sports Net, Liberty Media, TCI, General Instrument) and ultimately grow shareholder value.
What is HyperTV?
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