Court Throws Out Cable-Modem Patent Claims
Rembrandt Agrees to Not Seek Royalties on Any DOCSIS-Based Products

Todd Spangler
Multichannel News

11/9/2009 12:51:04 PM

http://www.multichannel.com/article/388051-Court_Throws_Out_Cable_Modem_Patent_Claims.php


A federal judge has dismissed the claims of patent-licensing firm 
Rembrandt IP Management relating to the cable industry's DOCSIS 
cable-modem technology, putting an end to Rembrandt's bid to collect 
millions of dollars in royalties from the five largest U.S. cable operators.

Judge Gregory Sleet of the U.S. District Court for Delaware last month 
dismissed Rembrandt's claims for eight patents the firm had alleged 
pertained to the cable industry's DOCSIS cable-modem standard, after 
Rembrandt signed an agreement to not seek patent royalties on any 
DOCSIS-based products.

In 2005 and 2006, Rembrandt had sued Comcast, Time Warner Cable, Cox 
Communications, Charter Communications and Cablevision Systems, alleging 
the MSOs infringed eight patents purportedly pertaining to DOCSIS 
technologies. The cable operators in turn requested indemnification from 
their suppliers, leading six manufacturers -- Cisco Systems, Motorola, 
Arris, Thomson, Ambit Microsystems (now called Ubee Interactive) and 
Netgear -- to countersue Rembrandt and seek a judgment that their 
products don't infringe the patents in question.

In a statement, Comcast said, "We are pleased that the court rejected 
Rembrandt's claims and imposed appropriate conditions on their 
dismissal. We have maintained that Rembrandt's claims had no merit, and 
the court affirmed our position." For its part Time Warner Cable said, 
"We're pleased with the ruling."

Cisco, commenting on the ruling, said, "We are gratified that after four 
years of Rembrandt's litigation, the court has dismissed all of 
Rembrandt's infringement claims against us, and Rembrandt has agreed to 
never again sue us or our customers on these patents for products which 
comply with the existing industry standards."

Cisco added that "we continue to believe that Rembrandt abused the legal 
system by filing this industry-wide patent litigation on patents that 
had nothing to do with our technology" and that it "will be pursuing 
Rembrandt to recover our fees and costs."

Details of Sleet's Oct. 23 ruling were reported last week by Bloomberg News.

"This is the poster boy for sending a message to people that you can't 
bring cases that have no merit," defendants' lawyer Steven Cherny told 
the judge during an Oct. 1 conference, according to a court transcript 
cited by Bloomberg. A jury trial in the cases had been scheduled to 
begin Jan. 11 in the Delaware federal court.

Rembrandt executives did not respond to requests for comment.

The suburban Philadelphia firm has acquired more than 200 patents and 
seeks to collect money from licensing agreements or patent-infringement 
verdicts -- a type of business derogatorily referred to as a "patent 
troll." According to its Web site, Rembrandt offers "supreme service and 
ample funding to pursue exploitation and licensing of intellectual 
property for companies and inventors."

In a separate series of actions, Rembrandt sued ABC, CBS, NBC, Fox and 
Sharp Electronics, alleging they infringe on a patent Rembrandt owns 
related to the Advanced Television Systems Committee's digital-TV spec. 
That litigation is still pending.

In December 2004, Rembrandt paid a reported $1 million for the patent 
portfolio of communications-equipment maker Paradyne that included the 
ATSC-related patent as well as the eight at the heart of the cable-modem 
litigation. Paradyne, once owned by AT&T, is now part of Zhone Technologies.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204 
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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