R
Robert Myers
http://www.boston.com/business/tech...05/business_methods_patents_raise_the_stakes/
<quote>
Now the Route 128 technology belt has produced its own poster child for
the perils of this kind of patent: Boston Communications Group Inc.
The Bedford wireless technology company is fighting for its life. In
May, a federal jury slapped BCGI with a $128 million judgment for
infringing on a patent owned by a tiny Phoenix company that covers
prepaid cellular calling plans. If upheld, the judgment, which is three
times BCGI's market value, would almost certainly drive the 400-person
company into bankruptcy.
BCGI is waging a long-shot battle to overturn the judgment, arguing
it's a victim of an absurdly broad patent that never should have been
issued.
Freedom Wireless, a four-person company, has never set up an actual
business serving customers; it seeks royalties from companies like
BCGI, Verizon Wireless, and Nextel Communications Inc. At the heart of
Freedom's 1996 patent is the idea of using a computer to match a
cellphone number with a database showing how many paid-up minutes the
cellphone owner has, then deciding whether to complete a call.
</quote>
RM
<quote>
Now the Route 128 technology belt has produced its own poster child for
the perils of this kind of patent: Boston Communications Group Inc.
The Bedford wireless technology company is fighting for its life. In
May, a federal jury slapped BCGI with a $128 million judgment for
infringing on a patent owned by a tiny Phoenix company that covers
prepaid cellular calling plans. If upheld, the judgment, which is three
times BCGI's market value, would almost certainly drive the 400-person
company into bankruptcy.
BCGI is waging a long-shot battle to overturn the judgment, arguing
it's a victim of an absurdly broad patent that never should have been
issued.
Freedom Wireless, a four-person company, has never set up an actual
business serving customers; it seeks royalties from companies like
BCGI, Verizon Wireless, and Nextel Communications Inc. At the heart of
Freedom's 1996 patent is the idea of using a computer to match a
cellphone number with a database showing how many paid-up minutes the
cellphone owner has, then deciding whether to complete a call.
</quote>
RM