-Caveat Lector-

Patents suit plaintiff aims to block sales of upcoming Windows

The Associated Press

SANTA CLARA, Calif. (June 27, 2001 2:05 p.m. EDT) - InterTrust
Technologies Corp. said Wednesday it was expanding its patent
infringement lawsuit against Microsoft Corp. and would seek to stop sales
of the new Windows XP operating system.

The lawsuit concerns digital rights management, or antipiracy measures
that are essential in the move to put music, movies and other copyrighted
material on the Internet. Digital rights management technology is used to
limit what users can do with copyright material.

InterTrust first sued in April, claiming the digital rights management
software in Microsoft's Windows Media Player program and its operating
systems violated a patent issued to InterTrust in February. That patent
covers technology used in downloading digital content.

On Tuesday, InterTrust said it had been granted another patent, this one
governing its process for securing content that is copied from one device to
another, such as from personal computers to MP3 players.

The company said the new patent "substantially expands the implications
for Microsoft's current and future products" that also secure content being
transferred between devices. Specifically, InterTrust cited Windows Media
Player, and the Millennium Edition and upcoming XP version of the
Windows operating system.

InterTrust said it would ask a federal court to stop sales of any Microsoft
products that infringe on the patents.

"The underlying issue is Microsoft's failure to respect InterTrust's
pioneering, inventive work," said Ed Fish, president of the MetaTrust Utility,
which is part of Santa Clara-based InterTrust.

A Microsoft spokesman did not immediately return a call seeking
comment, though the company has called the case a desperate attempt by
InterTrust to avoid competing in the marketplace.

InterTrust, founded in 1990, has licensing agreements and business
partnerships with several companies that figure to play a large role in the
future of digital content on the Internet, including AOL Time Warner, Adobe
Systems, Nokia, Universal Music Group and Blockbuster.

Shares of InterTrust were up 5 cents at $1.27 in midday trading on the
Nasdaq Stock Market, where Microsoft shares were up 23 cents at $70.37.
InterTrust stock is well off its 52-week high of $25.50 and the $100 price it
achieved before the dot-com bust in 2000.


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