TYLER – Network-1 Technologies Inc., wholly owned subsidiary
Mirror Worlds Technologies, has agreed to a $25 million settlement of a patent
lawsuit filed against Apple Inc., which is pending in the U.S. District Court
for the Eastern District of Texas.
Specifically, Mirror Worlds alleged that Apple infringed on U.S.
Patent No. 6,006,227 (227 patent).
Under terms of the agreement, Apple will receive a fully
paid non-exclusive license to the 227 patent for its full term, which
expired in 2016, along with rights to other patents in Network-1’s portfolio.
Network-1 will receive $25 million from Apple for the settlement and fully paid
Network-1 said in a news release the 227 patent was
among nine patents and five pending patent applications acquired by Network-1,
through Mirror World Technologies, Inc., from Mirror Worlds, LLC on May 21,
2013. The company said the 227 patent, titled “Document Stream Operating
System” relates to methods that enable unified search, indexing, displaying and
archiving of documents in a computer system.
Network-1 said the inventions described in the 227 patent
resulted from work done by Yale University computer scientist David Gelernter and
his then-graduate student Eric Freeman in the mid-1990s.
On May 23, 2013, Mirror Worlds Technologies, LLC filed a
patent infringement lawsuit against Apple and several other defendants in
connection with the 227 patent.
The plaintiff alleged the defendants, without Mirror
Worlds’ permission, used its patented technology in connection with products they make, use, sell, and offer to sell that include document stream
software, and contributed to and/or induced others to use the patented
Mirror Worlds demanded a jury trial and sought damages for
patent infringements and an injunction preventing the defendants from using or
selling the patented technology.
Patent 227 was issued by the U.S. Patent and Trademark
Office on Dec. 21, 1997. According to Mirror Worlds’ complaint, Apple infringed
on the 227 patent since at least Oct. 2, 2010, and it knew about the 227 patent
since at least July 2, 2001. Mirror Worlds said Apple’s infringing products
included its products that generate streams of data units, such as Mac
computers and some versions of Mac OS X.
“Apple offered and continues to offer its infringing
products for sale, and instructed and continues to instruct users to operate
them in an infringing manner through, without limitation, advertisements, product
documentation and customer support,” the lawsuit said.
In addition, Mirror Worlds alleged Apple sold, offered
to sell, and/or imported its infringing products and services for use in a data
unit stream generation and data unit search, organization and display process
that make up a significant part of the invention claimed in the 227 patent.
“Apple knew that its infringing products were especially
made for infringement of the ‘227 patent, that they were not a staple article
or commodity of commerce, and that they have no substantial non-infringing use,”
the lawsuit said.
As part of a related lawsuit filed in 2008, Apple was
ordered to pay $625 million to Mirror Worlds. However, that ruling was reversed
on appeal, and the 2008 case was closed by the court.
The other defendants named in the 2013 lawsuit included Best
Buy Co. Inc., Dell, Inc., Hewlett Packard Co., Lenovo Group Ltd., Lenovo
(United States) Inc., Microsoft Corp., Samsung Electronics USA Inc. and Samsung
Telecommunications America, LLC.
U.S. District Court
for the Eastern District of Texas, case no. 6:13-cv-00419-RWS.