Bounty hunters accuse Roxio of CD burner patent abuse

Roxio stands accused of patent infringement over its software that allows users to burn files onto recordable CDs. The lawsuit was filed by storage specialist Optima Technology which offered up to $1 million to anyone who could find infringements of its patent.

Irvine, California-based Optima's patent is for a 'Recordable CD-ROM Accessing System.' This is a patent for software with the ability to burn discs that can be read on any computer. Prior to Optima's development, the company says that data burned onto a CD could not be changed or modified, and frequently could not be read on other computers without the original mastering software.

According to Optima, Roxio – which recently acquired and re-launched the Napster brand – is responsible for inducing or contributing to infringement of Optima’s patent rights for this technology by making and selling software that enables others to use it.

On Friday, Optima sued Santa Clara, California-based Roxio, seeking an injunction, damages and costs. Roxio denies the claims.

But Optima also alleges that when an industry trade group, the Optical Storage Technology Association (OSTA), developed certain industry standards or specifications to be used by companies for writing software for CD burners, it infringed Optima’s patent.

This means that companies using the OSTA standards for CD burning software are also infringing on the patent, according to Optima. It says the standards have been adopted by most of the industry in the US and elsewhere around the world. It is therefore likely that more actions will follow.

According to Optima’s lawyer, Robert Lyon, "Optima believes most every company in the CD burner industry may be infringing."

The lawsuit against Roxio comes a few months after Optima offered a reward for information about patent infringements. Optima promised that:

"any person and/or company who aids Optima by providing us with credible documentation that clearly demonstrates proof of a violation of our patent by another company, individual and/or entity shall receive up to $1 million."

Yesterday, Robert Adams, CEO of Optima Tech, confirmed to OUT-LAW.COM that the case against Roxio was the result of information provided by bounty hunters:

"The tip came in from two separate people back when we offered the reward in May 2003 and it took several teams of independent engineers to ensure the evidence was solid and that's why we waited to file in Dec 2003. Optima will pay each person a reward."