Media Rights Technologies Sues Microsoft for Alleged Intellectual Property Theft

High-Stakes Lawsuit Alleges Billions of Copyright Violations as well as Trade Secret Theft for Streaming Music and Movies on the Cloud

SANTA CRUZ, Calif., Dec. 18, 2024 /PRNewswire/ -- Media Rights Technologies, Inc. (MRT), a California-based software development company, and its founder, Hank Risan, have filed a lawsuit against Microsoft Corporation, alleging copyright infringement, trade secret theft, trafficking in counterfeit labels, circumvention of copyright protections, distributing false copyright management information, and violation of a DMCA takedown order related to MRT's patented and copyrighted digital rights management (DRM) technology. DRM technology secures the streaming of music and movies for media companies and is distributed when PC manufacturers sell computers with the Windows Operating System included.

The complaint was filed in the United States District Court, District of Columbia, and can be reviewed at this link. Senior Judge Richard J. Leon has been assigned to handle this case.

Decades of Sweeping Alleged Infringement
The lawsuit claims Microsoft stole and embedded MRT's technology in billions of its products including all versions of the Windows Operating System published in 2007 and later, as well as Azure, Xbox, Office 365, and PlayReady.  Microsoft PlayReady is used to deliver media content on an overwhelming majority of streaming platforms. Windows Operating Systems are regularly distributed by computer companies included with their hardware.

The complaint seeks actual damages, statutory damages (ranging from $200 to $2,500 for each violation depending on classification), profits attributable to Microsoft's infringing use of the copyrighted material, exemplary damages, an injunction, and other relief.  The complaint alleges that billions of violations have occurred when operating systems are installed or updated and when movies or songs are streamed using misappropriated MRT software.

Pioneering Technology at the Heart of the Case
In 2002, MRT developed a revolutionary DRM solution, named SeCure, praised for its unparalleled ability to secure digital content and prevent piracy. Industry leaders, including the Recording Industry Association of America (RIAA) and the Motion Picture Association of America (MPAA), tested and endorsed the technology.  They then cited its 100% effectiveness in protecting media content in their 2003 report, "Securing Digital Content within the Computer by Controlling Audio Pathways: A Review of the MPB Solution."

The complaint alleges that Microsoft, after failing to develop its own solution, sought access to MRT's technology under non-disclosure agreements during acquisition discussions and a patent auction, as well as through other means. When MRT declined Microsoft's offer, Microsoft allegedly misappropriated and integrated the technology into its operating systems and products without permission.

Digital Millennium Copyright Act (DMCA) Takedown
Under the Digital Millennium Copyright Act (DMCA), statutory damages can accrue on a per-violation basis, and MRT alleges that billions of violations have occurred. MRT is also asking for a DMCA takedown of the infringing code in Microsoft products. The DMCA provides for the removal of the infringing code, just as it does for the removal of infringing songs or movies from the Internet.

According to the complaint, a takedown would not impact the public's ability to listen to music or watch movies, as other browsers provide secure media distribution alternatives to Microsoft's streaming services. 

A Legal Scholar's Opinion
Laurence H. Tribe, prominent American legal scholar, emphasized the importance of the First Amendment in cases involving intellectual property and free enterprise as it relates to this case. His report can be reviewed at this link.

A Call for Accountability
"This lawsuit seeks justice for years of Microsoft's blatant infringement and misappropriation of MRT's pioneering technology," said Hank Risan, founder of MRT. "Innovation must be protected, and corporate giants should be held accountable when they steal the intellectual property rights of smaller innovators."

Representation
Jonathan S. Massey, founding partner of Massey & Gail, LLP, is the lead attorney representing MRT in this suit. Massey, a seasoned litigator and Harvard Law graduate, has argued over 60 cases in federal and state courts, including high-profile matters before the U.S. Supreme Court.

About Media Rights Technologies, Inc.
Media Rights Technologies, Inc. is a California-based software development company specializing in digital rights management and secure content delivery solutions.

For media inquiries, please contact:
Jonathan S. Massey
Massey & Gail LLP
1000 Maine Ave. SW
Suite 450
Washington, D.C. 20024
202.650.5452

SOURCE Media Rights Technologies, Inc.