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Thursday, November 02, 2006
JPEG Patent Cases Settled

Forgent Networks has settled its lawsuit concerning the so-called JPEG patents for $8 million, a fraction of what the company initially sought.

The company, an intellectual property firm that licenses communications technology and software for business meetings, announced on Wednesday that it has reached a settlement with all of the remaining claims in the cases involving U.S. patent number 4,698,672. The company said that the JPEG standard--the image compression mechanism used in digital cameras and PCs--infringed upon the patent, which Forgent acquired in 1997.

"We are satisfied with the resolution of this matter. Over the life of the '672 patent, we have collected in excess of $110M. Our focus now shifts to the November '746 patent claims construction hearing and the May 2007 jury trial and continuing to grow our NetSimplicity software business," said Richard Snyder, chairman and CEO of Forgent.

About 60 companies, including several camera makers, had already cut licensing deals with Forgent.

PC makers, however, balked at licensing deals, which led to the lawsuit. The suit originally involved about 45 defendants, but 15 settled before this final settlement.

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