NVIDIA Settles Patent Dispute with Implicit Networks

Santa Clara-based NVIDIA Corporation, manufacturer of graphics-processor technologies for workstations, desktop computers, and mobile devices, settled a patent dispute today with Implicit Networks. Implicit is a small, Seattle-based company involved in computer software and licensing. Implicit is taking on some of technology's biggest companies, including the likes of Intel and AMD.

Implicit's case against Intel, NVIDIA and others involves US Patent No. 6,629,163 covering "A method and system for demultiplexing a first sequence of packet components to identify specific components wherein subsequent components are processed without re-identifying components." This is basically, a system for processing encrypted data. According to allegations in the Complaint, this technology is used in Intel's Viiv platform, the Java Media Framework, ATI Radeon hardware, software from NVIDIA called Stant, and other products.

Details of NVIDIA's settlement with Implicit remain confidential, or at least I don't have any information about it other than what is in this post.

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Supreme Court Hears Oral Arguments in LG v. Quanta

On Wednesday, the Supreme Court heard oral arguments in the LG v. Quanta case, a case dealing with the doctrine of patent exhaustion. This is an incredibly important decision because it may transform how patent licenses are drafted and negotiated. Many believe that the Supremes will rule in favor of Quanta, overturning the Federal Circuit's decision, holding that patent rights covering methods or system claims are exhausted when the thing used to carry out that system or method is sold. Here is a link to the oral argument transcripts. Patent Troll Tracker had this to say about the arguments:

"It's very hard to read Supreme Court tea leaves. In this case, though, I think that Justices Roberts, Stevens, and especially Breyer honed in on exactly the problem with the Federal Circuit's opinion in LG. Justices Alito and Thomas were completely quiet. Justices Scalia, Kennedy, Ginsburg and Souter asked questions, but without really revealing which way they were leaning, although Justice Scalia did seem to discount that LG/Intel's notice meant anything, and Justice Ginsburg picked up on the fact that LG could have expressly conditioned its license requiring Intel to sell products only to licensed companies. So, on balance, I'd say the Court appears to be leaning towards overturning the Federal Circuit, but perhaps only slightly, and I certainly won't be surprised if it's a 5-4 or 6-3 decision the other way. And who knows what the scope of the opinion will be? Should be interesting."