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Burst.com Files Patent Infringement Suit against Apple Computer
Announces Expansion of Legal Team
Santa Rosa, Calif.,
(April 17, 2006) – Burst.com,
Inc. (OTC: BRST) today announced that it has filed counterclaims accusing
Apple Computer of infringing four of Burst’s U.S. patents. In the
counterclaims, filed in Federal District Court in San Francisco on
Monday, April 17th, Burst alleges
that Apple’s iTunes Music Store, iTunes software, the iPod devices, and
Apple’s QuickTime Streaming products infringe Burst’s U.S. Patents
4,963,995; 5,995,705; 5,057,932 and 5,164,839. Burst’s filing responds to
a suit that Apple filed against Burst in January of this year, seeking a
declaration that Burst’s patents are invalid and that Apple does not
infringe them. Burst requests in its counterclaims that Apple pay a
reasonable royalty for Apple’s infringing products and services, and also
seeks an injunction against further infringement. A copy of the filing can
be found on Burst’s website:
www.burst.com.
Burst.com is
represented in the action against Apple by San Francisco law firm Hosie
McArthur, who also represented Burst in its successful litigation against
Microsoft Corporation. In March 2005, Microsoft settled that litigation by
paying Burst $60 million for a non-exclusive license to Burst’s patents.
Burst has also expanded its legal team in the Apple litigation to include
attorneys from the Seattle office of Susman Godfrey, LLP, as well as
Houston-based intellectual property firm Heim, Payne & Chorush, LLP. Also
representing Burst is Palo Alto-based intellectual property firm Carr &
Ferrell, LLP.
Burst.com Chairman &
CEO Richard Lang indicated that the company would rather not have to
resort to litigation, but is committed to enforcing its patent portfolio,
which was developed over an 18-year period. In its April 17 filing, Burst
alleges that its technology has been essential to Apple’s success,
providing it with a critical audio and video-on-demand media delivery
solution. According to Lang, “We have a responsibility to protect our
patents and to seek a fair return for the many years and tremendous
investment that we have made in developing Burst technology and patents.”
Apple failed to
license Burst’s technology when it introduced its iPod and iTunes products
in 2002. According to Lang, Apple may have assumed that Burst’s patents
would be invalidated in Microsoft’s defense of the then-pending
litigation. Instead, Microsoft ultimately licensed Burst’s patents.
“While we had hoped to avoid litigation and negotiate a reasonable license
fee, it is Apple’s own actions that have forced our hand. We now look to
the courts to reaffirm Burst’s rights as innovators and to be paid fairly
for our widely acknowledged contributions to the industry.”
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About Burst
Founded in 1988,
burst.com has pioneered the development of
Faster-Than-Real-Time™ video and audio delivery. burst.com has
built an international patent portfolio covering burst-mode video and
audio delivery, scheduling, rapid casting and network optimization.
About
Susman Godfrey
Susman Godfrey LLP, a law
firm with more than 70 lawyers, was named one of the top litigation
boutiques in the country by The American Lawyer (2005). The firm
represents plaintiffs and defendants in a broad range of commercial
litigation matters, including antitrust, patent and intellectual property,
securities and corporate governance litigation, energy, commercial and
products liability litigation, bankruptcy and financial restructuring,
accounting malpractice, arbitration, and foreign and international
litigation matters. The firm has offices in Houston, Dallas, Los Angeles,
and Seattle. For additional information, visit
www.susmangodfrey.com.
About Hosie MacArthur
Hosie
McArthur LLP specializes in trying complex commercial cases and obtaining
exceptional results. Because of the quality of its legal skills,
innovative approach to the law and record of success, Hosie McArthur has
been chosen by colleagues, entrepreneurs, CEOs, and state attorneys
general for some of the country's most demanding civil litigation. Hosie
McArthur offers clients a sophisticated legal team that balances broad
legal experience with specialized practice skills. It has
extensive experience in antitrust, intellectual property, energy and
natural resources law, fraud, business torts, media law and class
actions. The firm has successfully litigated several multi-million dollar
verdicts and settlements in cases against some of the largest
multi-national corporations in the United States. For more information,
visit
www.hosielaw.com.
About Heim, Payne & Chorush
Heim, Payne & Chorush LLP. is a Texas
law firm focused on intellectual property litigation and antitrust
litigation involving patents. The law firm litigates matters throughout
the United States. Attorneys at the firm have been involved in several
high profile patent and antitrust cases, often representing patent
owners/plaintiffs against Fortune 500 companies, including Intel,
Dell, Sony, Microsoft, Apple, Oracle, AOL, Bristol-Myers Squibb, Bayer
Corp., and Abbott Laboratories.
About Carr-Ferrell
Carr & Ferrell LLP is one of Silicon
Valley’s foremost technology law firms, committed to providing a unique
blend of legal, business and technical expertise. Focused on technology
innovation and protection, the firm's team of professionals combines
technical degrees and experience with proven legal and business
experience. Distinguished by its demonstrated competencies in patent,
corporate and litigation matters, Carr & Ferrell LLP enables its clients
to strategically accelerate the growth and success of their businesses.
The firm has a proven track record in developing patent portfolios and
successfully asserting them in both licensing and litigation contexts.
For more information, visit
www.CarrFerrell.com.
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