Forgent Licenses JPEG Patent to Yahoo

Scheduling software maker turned patent enforcer Forgent has announced an agreement with Yahoo in which the search engine will license the technology behind JPEG image compression. In exchange, Yahoo will be removed from litigation against companies Forgent claims are infringing on what it calls the '672 Patent.

Forgent obtained the patent through its 1997 purchase of Compression Labs. After unsuccessfully trying to sell its JPEG patent to Compaq, Forgent has switched its strategy to litigation -- a tactic that has proven successful. Forgent has sued 47 companies thus far and raked in more than $105 million in licensing fees from 50 others.

40 of its cases are still pending in the United States District Court for the Northern District of California. In April of this year, Forgent sued Microsoft, but not before the Redmond company preemptively filed its own lawsuit asking the courts to nullify Forgent's patent.

"It's unfortunate that, despite Microsoft's recent inquiries about licensing the patent, they chose to file a lawsuit, leaving us no alternative but to assert infringement claims against it," Forgent CEO Richard Snyder said at the time.

According to Forgent, "The '672 Patent relates to digital image compression used in digital still image devices that compress, store, manipulate, print or transmit digital still images such as digital cameras, personal digital assistants, cellular telephones, printers, scanners and certain software applications."

But Forgent is also facing pressure from the Public Patent Foundation, which in November said it has proof of prior art that would invalidate the company's rights to the technology. The group has asked the U.S. Patent and Trademark Office to revoke the patent.

In addition, Sun and Google have countersued Forgent, accusing Compression Labs of defrauding the U.S. Patent Office about a lack of prior art.

"Forgent Networks is a classic example of the new and rapidly growing trend of patent holders that do nothing more than sue people who make products or services available to the public," PUBPAT Executive Director Dan Ravicher said last month.