Microsoft Corporation (NASDAQ:MSFT) is facing a patent infringement lawsuit filed by Secure Web Conference Corporation, a subsidiary of Copytele Inc (OTCBB:COPY), a company that specializes in patent monetization and patent assertion.
Secure Web Conference Corporation alleged that Microsoft Corporation (NASDAQ:MSFT) violated its patents in encryption technology, which were used in the Skype Video Conferencing service of the software giant. Microsoft acquired Skype for $8.5 billion in 2011 and currently has more than 250 million active monthly users.
In its complaint, Secure Web Conference Corporation cited that Microsoft Corporation (NASDAQ:MSFT) infringed its patents 6,856,686 B2 (Method and Apparatus for Securing E-mail Attachments) and 6,856,687 B2 (Portable Telecommunications Security Device).
The company said that the patents in the suit are related to web-based peer-to-peer communications, and it has the exclusive rights to enforce the patents against infringement as the owner of all right, title and interest in the two patents in question.
Secure Web Conference alleged that Microsoft Corporation (NASDAQ:MSFT) violated its patents by making, using, selling, or offering for sale its Skype peer-to-peer communications software to consumers, and by using the technology itself. According to the company, it suffered damages and will continue to suffer irreparable harm from Microsoft’s infringements on its patents.
Secure Web Conference filed the lawsuit in the Eastern District Court of New York. The company asked the court for a jury trial and requested a judgment that Microsoft Corporation (NASDAQ:MSFT) infringed one or more of its patents-in suit, and payment for all damages and costs incurred by Secure Web Conference. The company also requested the court impose the highest lawful rates on the damages caused by the software giant’s infringing activities.
In a statement, Robert Berman, president and CEO of Copytele Inc (OTCBB:COPY) said, “With coverage on web conferencing technology across an industry that generates over $4 billion in annual revenue, these encryption patents are a prime example of the enormous, untapped potential at CTI. The new management team was attracted to CTI because of the tremendous value of its patents that were masked by its previous business model. We expect to launch additional assertion programs with significant revenue opportunities as we continue to mine CTI’s patents, and acquire additional patent portfolios from third parties.”