Verizon Loses -- Again -- to ActiveVideo in Patent Infringement Case

SAN JOSE, Calif., Dec. 13, 2011 /PRNewswire/ -- Verizon Communications (NYSE: VZ) yesterday lost yet another decision in United States District Court in the ongoing patent infringement case that was brought against the company by ActiveVideo Networks™. 

Judge Raymond A. Jackson, United States District Court Judge for the Eastern District of Virginia, denied a motion by Verizon seeking to stay the monthly royalty payments imposed by a November 23 court injunction, and directed Verizon to make the first monthly payment on December 16, as indicated by the injunction.

In four separate decisions, Verizon has been found liable for up to $250 million in damages, supplemental damages, interest and royalties for its infringement of ActiveVideo intellectual property.  The November 23 injunction ordered Verizon to make the first of monthly sunset royalty payments of $2.74 per subscriber per month by December 16.  In addition, the injunction issued on November 23 ordered Verizon to terminate FiOS Video-on-Demand service on May 23, 2012, if it cannot offer the service without unlawfully using ActiveVideo technology.

In rejecting Verizon's latest effort the court held as follows: "Staying the royalty portion of the injunction would serve no legitimate purpose. It would merely provide Verizon the freedom to continue to infringe without any recourse to the prevailing Plaintiff."

"We continue to be mystified by Verizon's insistence on litigating this matter, and are grateful that the Court once again has recognized the merits of our arguments," said Jeff Miller, president and CEO of ActiveVideo Networks.  "I want to make it clear that we will do everything necessary to continue to prevail in this case, should Verizon continue in its ongoing act of piracy, and we will not hesitate to demand that FiOS VOD, widgets and any other infringing services be terminated on May 23 if our rights remain violated."

ActiveVideo filed suit against Verizon in May, 2010, after its patent protections and ability to do business were compromised by a Verizon suit against Cablevision Systems Corp., an ActiveVideo customer.  The ActiveVideo suit alleged that the Verizon FiOS television service infringed four patents for technology created, owned and used by ActiveVideo. The patents, which are fundamental to interactive television services such as video on demand, include: 

• United States Patent No. 6,034,678, titled "Cable Television System With Remote Interactive Processor;"
• United States Patent No. 5,550,578, titled "Interactive And Conventional Television Information System;"
• United States Patent No. 6,100,883, titled "Home Interface Controller For Providing Interactive Cable Television;" and
• United States Patent No. 6,205,582, titled "Interactive Cable Television System with Frame Server."

A jury in the United States District Court for the Eastern District of Virginia found that Verizon infringed all of the asserted claims.

Having pioneered cloud-based delivery of VOD and interactive television, ActiveVideo has a substantial and fundamental portfolio of patents dating back to the early 1990s.  The ActiveVideo CloudTV™ platform is currently deployed with major cable system operators, including Cablevision.  It offers solutions for video on demand navigation, interactive games, and many other interactive services. 

ActiveVideo is represented by the law firm Morgan Lewis.

About ActiveVideo Networks
ActiveVideo Networks™ has created CloudTV™, a cloud-based apps platform that enables the fast and flexible development and deployment of personalized navigation interfaces and other advanced user experiences for television service providers.  Using the CloudTV platform, service providers can deliver navigational mosaics, advanced advertising, TV apps, games and multi-screen pairing solutions to any set-top box, CI+ enabled television, mobile device, and broadband-connected CE device. ActiveVideo Networks is based in the heart of Silicon Valley, with offices in Los Angeles and Hilversum, the Netherlands. For more information, visit www.activevideo.com; find us at www.facebook.com/ActiveVideoNetworks; follow us at www.twitter.com/activevideo  view our videos at www.youtube.com/AVCloudTV.

SOURCE ActiveVideo Networks