Court Invalidates Verizon Countersuit Claims Against ActiveVideo

SAN JOSE, Calif., May 17, 2011 /PRNewswire/ -- ActiveVideo Networks™ today announced that an order has been issued invalidating asserted claims of two key Verizon Communications (NYSE, NASDAQ: VZ) patents in the year-long litigation initially filed by ActiveVideo in May, 2010.

In the United States District Court for the Eastern District of Virginia, the Honorable Raymond A. Jackson invalidated all asserted claims of the two patents:  United States Patent No. 5,682,325, which was included in a suit against ActiveVideo Networks, and United States Patent No. 6,381,748, which was included in suits against both ActiveVideo Networks and Cablevision Systems Corporation.

"The decision is important to ActiveVideo and to our customers," said Jeff Miller, president and CEO of ActiveVideo Networks.  "Obviously we're pleased at the elimination of Verizon's claims against our company, but it is equally important that the ruling removes claims by Verizon against our customer, Cablevision."

On April 7, 2011 Judge Jackson issued an order, called a "Markman order," construing the claims of five ActiveVideo patents included in the company's suit against Verizon.  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;"
• United States Patent No. 5,526,034, titled "Interactive Home Information System with Signal Assignment;" and
• United States Patent No. 6,205,582, titled "Interactive Cable Television System With Frame Server."

"We were extremely pleased with the Markman order," said Miller. "The court's construction essentially tracked ActiveVideo's proposals and provides powerful support for our infringement case against Verizon.  ActiveVideo's patent portfolio covers the core technology required for delivery of Video on Demand, and interactive services offered by Verizon on its FiOS network.

"We are confident that we will recover not only damages for Verizon's infringement, but also enjoin Verizon from using ActiveVideo's patented technology," Miller continued.  "Beginning in 2005, we shared our technology with Verizon and tried to reach an agreement to deploy our CloudTV solution on the FiOS network.  Verizon declined to do business with us and instead has infringed our patents."

Trial is set for July 12, 2011.

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.  

About ActiveVideo Networks

ActiveVideo Networks™ has created CloudTV™, a new apps platform that enables the development and streaming of smart TV apps to any screen, box, or device.  The CloudTV approach of placing the intelligence in the network, not the device, powers an open development and publishing environment for content creators, service providers, and CE manufacturers to quickly and easily create new television experiences for their viewers.  CloudTV simply and efficiently allows limitless content -- including TV Apps, web-to-TV apps, personalized iVOD navigation, and social media sharing and recommendations -- to be delivered uniformly to every cable and IPTV set-top, 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