Apple will pay $25 million to settle a patent lawsuit with Network-1 Technologies' subsidiary Mirror World Technologies and license its patents, the companies announced today. The patent (No. 6,006,227) dates back to 1999, covering a system that stores documents in a stream ordered chronologically, similar to Apple's Cover Flow or Time Machine.
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Under the terms of the agreement, Apple will receive a fully paid up non-exclusive license to the '227 Patent for its full term, which expired in 2016, along with certain rights to other patents in Network-1's portfolio. Network-1 will receive $25 million from Apple for the settlement and fully paid up license.
The technologies described in the patent were developed from the work of Yale University computer scientist Professor David Gelernter and his then-graduate student Dr. Eric Freeman in 1996. They then founded Mirror Worlds LLC, which began a long-running legal fight with Apple over the patent. In 2010, Apple was hit with a $625 million judgment over the patent. A year later, Apple won a reversal of the decision and the judge closed the case in Apple's favor.
In 2013, Mirror Worlds was purchased by Network-1 and the company acquired Mirror World's patents. Network-1 describes itself as a company "engaged in the development, licensing and protection of its intellectual property and proprietary technologies." Last year, the company also reached a settlement with Microsoft for $4.6 million over the same patent.
Top Rated Comments
(View all)Maybe not trolls, but patent hoarders, and the only way they make money is by suing others.
Unless apple does it. Then its called protectiong intellectual property :)Not saying they aren't justified since they own the patent. It's just a slimy business model.
Seems like Apple has been busy copying rather than inventing or being creative these days. Sad isn't it?
Sure, if it were true.Unless apple does it. Then its called protectiong intellectual property :)
Except that Apple actually MAKES things protected by the patents they own, whereas, "Network-1 describes itself as a company 'engaged in the development, licensing and protection of its intellectual property and proprietary technologies.'"Or in other words, they don't make a damn thing.
Granted, not every patent Apple has is for something they've brought to market, but if they stopped making iDevices and just sued companies that infringed their patents, I'd say the same thing about them.
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It seems like they were academic computer scientists coming up with innovative ideas. Not exactly my image of a patent troll but who knows.
The original developers of the patent were academic computer scientists. Network-1 is anything but that.[doublepost=1468023764][/doublepost]For those wondering Mirror Worlds LLC's compensation was
"The consideration paid by Network-1 to Mirror Worlds, LLC for the Patent Portfolio consisted of (i) $3,000,000 in cash, (ii) 5-year warrants to purchase 875,000 shares of common stock of Network-1 at $1.40 per share, and (iii) 5-year warrants to purchase 875,000 shares of Network-1 at $2.10 per share.
Recognition also received from Network-1 an interest in the net proceeds realized from the monetization of the Patent Portfolio as follows: (i) 10% of the first $125 million of net proceeds, (ii) 15% of the next $125 million of net proceeds, (iii) and 20% of any portion of the net proceeds in excess of $250 million."
So they got $3 million up front, plus they'll get $2.5 million (10%) from this lawsuit + licensing.