A recent out-of-court settlement between Apple Computer and the owner of the patent that covers the downloading of music and video with the ability to play music and video on a device (technology essential to the iPod and other music and video technology) has landed the attorney in the national spotlight.
Michael Starkweather is now commenting on the impact of Apple’s decision that affects “The future of the whole cell phone, iPod and PDA industry. That’s the billion dollar patent.” Starkweather believes that this patent has just overcome its first major legal victory. “I believe that, with this patent in hand, Apple will eventually be after every phone company, film maker, computer maker and video producer to pay royalties on every download of not just music but also movies and videos.”
This patent is considered by some to be one of the most important in years for the industry and in particular Apple. Since launching the iPod in 2001, iPod’s 3rd quarter 2006 sales accounted for 42 percent or about $4 billion, of Apple’s record-breaking revenues. If the patent had landed in the hands of Apple’s competitors, it would have seriously threatened Apple. Currently, the iTunes software, which is covered by the patent is the primary access point to Apple’s industry-leading iTunes Music Store. This software is available in 19 countries where more than 450 million songs have been downloaded worldwide.
Starkweather wrote the patent in 1996 for a Vermont inventor who originally didn’t show interest in patenting the idea or understand its value. The concept consisted of a desktop computer holding multiple songs with an interface allowing a hotel guest to select three songs and play them on an electric grand piano. Starkweather saw the broader value and broke the patent into three elements; remote music storage, selection of music to download and playing music on a music device. Starkweather realized that downloading movies was an obvious variation to downloading music. It was data manipulated in the same way. “Sometimes it’s easy to break an invention down to its key components,” Starkweather says. “That’s why patent writing is an art, not a science, and requires creativity.”
Starkweather began his career as a Patent Examiner in the U.S. Patent and Trademark Office, then served as in-house Patent Attorney for several major corporations, including Xerox Corporation, AT&T/NCR, Micron Semiconductor and IBM.
I.P. portfolio management has been a major focus for Mr. Starkweather. He has developed tools for executives to clearly “valuate” I.P. portfolios involving thousands of patents. Those valuations have been used to negotiate hundred million dollar mergers, acquisitions, and licensing deals.
Currently, Starkweather is practicing patent law in Salt Lake City at his law firm, Advantia Law Group which he founded. He is available for interviews on the recent settlement or in relation to corporate and patent law.
More about the patent in question: United States Patent #5,864,868 “Computer control system and user interface for media playing devices” here.
MacDailyNews Note: This is an interesting press release from the attorney involved, since before this was released, the terms of the Apple-Contois settlement were confidential. It sounds to us like Apple now controls this patent.
Related articles:
Apple settles Vermont man’s lawsuit against iTunes – September 01, 2006
Vermont man says Apple stole design for iTunes – June 14, 2006
Contois Music & Technology sues Apple for patent infringement in iTunes software – February 06, 2006
Apple sued over iTunes software interface; injunction sought to prevent iTunes distribution – June 20, 2005
Since I am backgrounded in movie production anyway, I would not consider selling my movies via anything else but iTunes….
…the only problem is that the studio that finance my (future) productions don’t agree and as a recent article explained the studios want a tighter DRM.
It’s as the saying goes ‘he who holds the money holds the power’.
Like with many of you folks; I too think that the above is a move by Apple to prevent losing out over patent issues. Remember the debacle over the iPod onscreen menu layout and Creative?
Yes that was eventually settled, but imo only the most foolhardy of businesses would skip patenting their product/idea with expecting to be able to settle any patent disputes at a later date and amicably.
MW: ‘fear’ as always keep an eye out for FUD, Fear, Uncertainty and Doubt!
“I doubt Apple wants royalties for this patent. The political fallout would be too great. The probably just want to keep it out of the hands of others where it could hurt Apple badly.”
I agree as well. Although it is still a ridiculous patent and indicative of how out of control the patent process has become.
BTW – I wasn’t going to tell anyone, but I will soon be the richest man in the world. My patent just got approved. Here is the short version: A method of pleasue by which a male member of the human species and a female member of same said species engage in the act of copulation. Starting in 2007, everyone who has heterosexual sex will be paying me a royalty fee.
There is still money to be made – The male/male, female/female, and others are still not patented yet.
Did you hear about the guy who patented a three-part system of storing clothes in a closet, presenting them on hangers for selection, and then putting them on for portable wear?
</i>…There is still money to be made…</i>
You forgot about male/sliced bread – though a heavily buttered french roll is even better.
@ NewType: “One useful application is that if Universal decides to go into a hissy fit at the bargaining table because Apple won’t give them a piece of iPod revenue, Apple could pull out the patent and make sure Universal pays Apple for every download on every piece of Universal content, whether it’s on iTunes, Napster, Real, or Zune Marketplace.”
I was thinking the same. Apple would have a helluva time trying to enforce their claim, against some very big companies – lots of time and money lost in the inevitable court battles, and perhaps goodwill that would’ve been put to better use in cooperative ventures. However, as an implicit threat to keep these vultures who want their pound of flesh in line? That’s this patents most efficient utility.
Until and if the threat dosn’t keep them in line of course. And you know at least one of these egoist powersuits is gonna entertain the idea that HE (or she) is the exception.
Either way, if this story is accurate, Apple has a very potent talisman on their side now. Hope they don’t abuse it.
Synthmeister –
you need to research about the patent and find out more than what was available to you in the above referenced article. Do this before making flippant remarks about a patent.
Mr. Contois’ patent was not only quite brilliantly executed, but he did have fully operational software and hardware prototypes which he was actively marketing at the time it was blatantly stolen by 2 guys who would later be hired by Apple. When he sued Apple, it was not an attempt to mooch from corporate america, but actually a quest to reclaim what was wrongfully taken from him.
I’ve met Mr. Contois. He’s a Teacher, Musician and Entrepreneur. A very passionate man of many talents. He’s definitely not a parasite.
thx.