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$10M Says Apple Can Use Burst Patents

by , 10:45 AM EST, November 26th, 2007

Apple and Burst finally settled their two-year long patent infringement battle. Apple got a non-exclusive license for Burst's patent portfolio, and Burst got a check for US$10 million.

Burst originally filed a lawsuit against Apple claiming the company was infringing on its patents with technology used in the iPod, QuickTime, iTunes, and the iTunes Store. Earlier in November 14, of the 36 claims were thrown out leaving 22 claims for Burst to pursue in court sometime in 2008.

Burst's legal fees in the case, however, will eat into the settlement Apple is paying. About $5.4 million of the $10 million will be used to cover the company's legal costs.

Apple isn't the first company Burst has sued over patent infringement. The company previously went after Microsoft which ultimately led to a $60 million lump sum license settlement from the Redmond company.

Observer Comments

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Close Name:Guest
Mon Nov 26, 2007 12:53 pm Subject: great use...

of cash. Put it behind you. Burst is a nuisance, but they're making money the American way...lawsuits!


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Close Name:Terrin Posts: 414 Joined: 29 Jan 2006
Mon Nov 26, 2007 1:44 pm Subject:

Well, Apple must have thought Burst owned legtimate patents. It approached Burst multiple times to license Burst's patents. However, Burst didn't like the price Apple was offering. So what did Apple do? It did what any big company in it's position does: just use the patented ideas anyway. It will worry about paying later.


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Close Name:Guest
Mon Nov 26, 2007 2:28 pm Subject:

Chicken feed.


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Close Name:Sir Harry Flashman Posts: 792 Joined: 08 Feb 2007
Mon Nov 26, 2007 3:43 pm Subject: Market Share

Quote
Anonymous wrote:
Chicken feed.


Yes, Apple's settlement is chicken feed compared to the 60 million MicroSoft paid to Burst. Of course MicroSoft's market share is larger so it only makes sense that they pay more.

Seriously 10 million isn't a lot of money in a situation like this, especially considering the iPod market share. I wonder just how much of Burst's infringement claim was valid.


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Close Name:Guest
Mon Nov 26, 2007 4:37 pm Subject: next time...

Apple: Next time, just buy the company. Get all their "holdings" at one time instead of being nickeled and dimed to death by them (not to mention if the claims really are valid, how many other companies would suddenly be beholden to you for the technology...)


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