A US Federal Court of Appeals ruling has revived an internet
software download patent case that may have serious financial
consequences for on-line enterprises. Following court orders, a
review of the “Freeny Patent” registered by E-Data will now be
undertaken in order to establish whether it can apply to all
categories of download software.
The case was initially disposed of by a US District Court of New
York in March 1999. At that hearing, the court found that the
patent registered by E-Data in 1985 was only relevant in limited
circumstances, which excluded many instances of software
downloading to PCs.
In the Appeals Court order dated 13th July, the following
statement in background description of the “Freeny Patent” is
noted:
"… the invention overcomes the problem of
how to manufacture and distribute material objects embodying…
information in an economical and efficient manner and in a manner
which virtually assures that the owners of [the] information will
be compensated in connection with the sale of such material
objects."
If the review ordered by the court concludes that the previous
interpretation of the patent was too narrow, then it may be taken
to include a far broader spectrum of software downloads. In that
event, E-Data may be entitled to pursue companies employing the
technology for royalty payments and to demand payments for use of
the patented invention.
