Updated: Discovery Sues Amazon For Patent Infringement Over Kindle E-Book Delivery
Turn away for a second and the damnedest things drop in your inbox: Discovery (NSDQ: DISAB) Communications (NSDQ: DISCA), home of Shark Week, filed a suit today in U.S. District Court against Amazon (NSDQ: AMZN), claiming that the sale of the Kindle and its electronic book delivery infringes on one of its patents. The claim, over U.S. Patent Number 7,298,851 for the “Electronic Book Security and Copyright Protection System,” dates back to the work of Discovery and founder John S. Hendricks on a digital content and delivery system in the 1990s but the patent wasn’t issued until Nov. 20, 2007.
Discovery General Counsel Joseph A. LaSala, Jr.: “The Kindle and Kindle 2 are important and popular content delivery systems. We believe they infringe our intellectual property rights, and that we are entitled to fair compensation. Legal action is not something Discovery takes lightly. Our tradition as an inventive company has produced considerable intellectual property assets for our shareholders, and today’s infringement litigation is part of our effort to protect and defend those assets.” Release (We’ve embedded the full complaint, including the patent, after the jump.)
Amazon declined comment. The cable programmer has its own store on Amazon, selling DVDs, toys and digital downloads, a relationship that could be disturbed if the two don’t keep this particular issue in laser focus. My understanding is that Discovery and Amazon have held discussions about the patent claim but Discovery isn’t commenting on that. More details after the jump.
What does Discovery want?: Unlike some similar suits, Discovery isn’t seeking an injunction to halt sales or use of the technology. (If it’s successful with the suit, its payout will depend on those sales.) The company isn’t seeking a specific amount, either in damages or for licensing, since it has no knowledge yet of sales. The suit asks for a ruling that Amazon infringed on its patent, damages to cover that infringement if the ruling goes its way, a continuing royalty in lieu of an injunction, legals fees and a few other line items.
More on the patent: This is an unusual situation for Discovery, which wouldn’t even make my top 1,000 list of companies that might sue over a patent. In fact, this particular patent has been licensed only once, as part of a patent portfolio, and that was to TVGateway, an interactive TV joint venture involving several cable operators. I haven’t been able to get through the entire 55-page patent yet but while it is video-centric—not surprising given it stems from Hendrick’s efforts with Your Choice TV—it covers alternate means of distribution. It also talks about “a portable book-shaped viewer” which “is used for secure viewing of text.”
Multichannel News talked to Hendricks back in 2002 about the intellectual property potential from the various patents related to Your Choice, including menu-driven search. His answer then is a little at odds with today’s events: “We’re just using it in a friendly fashion. There are some people—I’m not going to name names—but they’re trying to make a business of suing people, and trying to extract license rights. So we can provide a lot of distributors with some immunity because some of our patent rights predate some of the other players.”
Posted In: Legal, Patents, Companies, Amazon, discovery communications, kindle
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