Apple, AT&T hit with lawsuit over iPhone's Visual Voicemail feature
By Donald Melanson 
posted Dec 3rd 2007 3:47PM
posted Dec 3rd 2007 3:47PM
Apple's already drawn a bit of unintended attention for the iPhone's Visual Voicemail feature, and it now looks like its facing a bit more heat on the matter, with Klausner Technologies now suing both it and AT&T for alleged patent infringement. Specifically, Klasuner is claiming that the Apple and AT&T violated two of its patents by "allowing users to selectively retrieve voice messages via the iPhone's inbox display" and, according to Apple Insider, its seeking damages and future royalties estimated at some $360 million. But that's not all, Klausner also apparently filed similar claims today against Comcast, Cablevision, and eBay (Skype, specifically), with damages and future royalties in those cases clocking in to the tune of $300 million. What's more, all this apparently follows two other lawsuits over the very same patents, which Klausner's attorney says they've litigated successfully. As is often the case, however, it's now up to the federal court in the Eastern District of Texas to sort things out.[Thanks, Mark]
Why do these suits always come after the fact? Shouldn't they have filed for an injunction or something BEFORE the "infringing" products hit the market?
Or do they intentionally wait for the product to be successful and then sue?
Suing is the only way these people can afford their shiny iPhone purchase.
Most patent cases come after the product is released. Many times it is because it is after the product is released the infringement is noticed. Patents are prosecuted durignthe application process but stuff slips buy all the time. This will be a case of prior art if it is legitatmate. That said this is a lawsuit that has been field in Eastern Texas which is the easiest place for a patent troll to sue and win. Of course if I had a legitimate patent that was infringed I woudl probably also sue in eastern Texas because I woudl want to win.
@redspear
Please learn how to spell.
durignthe, buy, legitatmate, fiedl, woudl, woudl
@redspear
I'll get my jacket, you get the plane tickets.
im not a lawyer, and never would i ever claim to be, but i don't buy the fact that it takes until after a product comes out for the alleged infringement to be "noticed". visual voicemail was one of apple's main selling points for the iPhone before its release. when lawsuits are delayed like this until well after a feature is public, it says to me that they took all this time to decide if they think that that they MAY be able to benefit monetarily from a lawsuit. personally, i think thats epic lame.
@ a ham sandwich
It would appear that the lawsuit is not over Visual Voicemail itself, but rather over the way the iPhone allows "users to selectively retrieve voice messages via the iPhone's inbox display". That process probably wouldn't have been apparent until *after* the iPhone was released.
@phoomp
didn't Stevie J demo it on stage the day they announced it?
@sandwich
It takes time for the plaintiff company/person to figure out a) if they have a case worth spending the money on and b) whether they can put together a credible enough argument to win said case. Plus, it's probably done by a team of lawyers, which can sometimes move as slow as molasses in January if they know they have time to file.
People,lawsuits,apple,hate at&t. What's new with the people and the iphone?
well well, apple stealing other companys idea/procesws, and all those fan boys are crying over the look of vista.
this is too funny.
I imagine they will pay them off.
I don't understand why this is low ranked... I mean yeah, maybe because of the Vista reference... but apple has a hard time being original.
They've stolen numerous ideas. Parts of their OS, commercials, and now phone features.
We've all seen it. If they can't buy the royalties or don't feel like asking, they just take it.
Of course, apple is far from the only big OS/device manufacturer (**AHEM** ms) to steal, but downranking for a truthful comment only serves to prove this guys comment about fan-boys.
They all steal, just leave his comment neutral.... he's just stating the obvious.
It's ranked low because the very idea that anyone stole the idea of "visual voicemail" is absurd. Anyone could have come up with this idea. I know that when I first got a cell phone, I frequently complained that it was very annoying that I had to waste time calling in for my messages.
I (along with many other cell phone owners) wanted my phone to behave more like an answering machine.
This is a totally obvious idea and I have no idea why it took the iphone to implement! Either way, once you have a phone storing messages, it's equally obvious to display the messages in a way that allows folks to play them back one at a time.
Regardless of your feelings on Apple, or Vista, or the history of UI innovation, it hurts everyone when one company sues another over an interface that literally thousands of people have thought up on their own. If apple sued someone over this "innovation" I would be equally unhappy.
Please see my comment from below.
http://tinyurl.com/ytlm48
It's easy to say in hindsight that you could have come up with the idea. But this was filed in 1992, well before most people had cell phones.
why is it easy to win a patent suit in eastern texas?
Because there is nothing else to do there.
A lot of patent cases get pushed through the court system there. It is almost like a factory and the judges there just pass everything through and almost always sides with the patent holder. I have been to three patent cases there and it is always the same thing. Judge Smith is crazy but not as crazy as Judge Luckern(however Luckern si smart and actually fair and in a differnet court... the ITC).
As for spelling I am on the internet and not proof reading. I am only a trial tech and not a lawyer/paralegal and really only care about spelling for emails. Anybody who can not tell a typo from spelling error well that is on them I don't care.
What a stab in the back.
i %@$#ing hate patent trolls. Go %@$# off Klasuner.
I hope all the defendant companies above win, including comcast, and I hate comcast.
Hey can't knock the hustle.
And as a lesson to companies, when you have an idea patent it. And if you want to do something either check with the patent office or pay the owner of a patent.
Oh... thanks for that advice.
-Companies-
Actually, checking with the patent office is the WORST thing to do. If you knowingly infringe, that sets you up for triple damages.
In today's world, it's almost impossible to make a product, especially a software product, that does not infringe on one or more patents.
What about Callwave. It does the same thing. Why not also sue them. I love Callwave by the way.
It just amazes me what crap you can get a patent for.
Yep, you can get a patent on any crap you want. In fact, the iPhone has over 300 patents.
Suing over visual voice mail is complete BS. How the hell can you patent retrieving voice mail the only alternate way....via sight.
Hell I thought of this when I got my first damn cell phone. I should be suing too. They might as well sue every creator of answering machines too!
Maybe check you vm by taste?
@egotman
ROFL
@egotman
haha funny, but I don't think I want to know what anyone's voicemail tastes like... lol hmm, maybe smell would work?
"Hmm it smells like rubbing alcohol and medicine, I think my grandmother is calling." >_
Usually I'd agree that patent trolls suck. In this case though, it's pretty obvious that apple doesn't give two shits whether or not they are infringing on other peoples patents or not. Normally you'd have a lawyer check and make sure you weren't infringing before you put out a product, but it doesn't seem like apple even bothers. Visual voicemail has been a long, LOOOONG time coming, and I'm glad that the Iphone has it (even though I'm holding off until they throw some 3G love into the thing) but respect the patents apple. In other, unrelated news, Klausners stock probably just went up 300%
With all due respect, it is impossible to get a freedom-to-operate opinion for something like the iPhone (or just about any multipurpose gadget). You'd have to examine the voicemail, the google-map-to-calling, the swivel aspect of the screen, the flip interface, the multi-touch, and on and on and on.
Why do companies wait, well, 1) it could be that the company just has a bunch of patents it collects and sees what tech gains traction in the market. 2) It may be that the company that originally had patents on the tech went belly up and the new owner just bought it 3) or the reverse of the iPhone clearance: there are so many products out there that might infringe that the attorneys for the plaintiff, who believe it or not are not always tech savvy and up-to-date on what's coming out, really did just discover that the iPhone might infringe.
I will say this: while lawyers are part of the patent troll problem, they are by no means main cause of it. I just roll my eyes when people make it out that "the lawyers are the ones walking with the money" or whathaveyou because usually the lawyers take is significantly less than any damages award. It is ultimately the clients that make the decision to sue or to settle, not the lawyers.
-p-
and the part I said about lawyers is not in response to the OP, but just in anticipation of all the lawyer hate.
What about this lawsuit makes you think Apple doesn't respect patents? Everyone seems to agree visual voicemail is not even something you should be able to patent. Why do you assume that the Klausner patent is legitimate, or that the companies claims will hold up in court.
When you are designing a complex piece of electronics, you will nod doubt be able to find hundreds of patents that *could* result in lawsuit. If Apple offered to buy rights to any such patent in advance, it would expose itself to outrageous demands, while simultaneously legitimizing future lawsuits. The patent system is broken, and even if you play by the rules, you can get sued.
A company like Apple can't afford to not file patents. They help protect them against litigation and also provide them with bargain power. Even so, Apple (and many similar companies) is in favor of patent reform. Under the current system, wasting money on superfluous patents is a necessary evil, and you can still get sued for no good reason.
Sueing and making money. It's a whole new career folks.
So this is why we never had Visual Voicemail before? Someone was just sitting on the patents waiting to sue the first company to do it. Nice.
Vonage has had this for years...
Vonage didn't have it back in 1992 which is when the earlier of the two patents was filed: http://tinyurl.com/2yeo93
People are saying this is BS, but 1992 is pretty early for a visual voicemail system.
I'm not saying this is or is not a valid patent, but just pointing out a fact that people may not be aware of and, at least for me, makes it seem not so obvious at the time the patent was filed (which is the standard).
*shrug*
Is this another patent company? like those companies who's only source of revenue is patent lawsuits? that should be illegal, especially when they're patenting obvious-assed ideas like visual voicemail who all VOIP providers offer... total waste of consumer dollars by proxy...
I think patent holders should be able to prove active revenue streams from either patents they hold or other existing services they provide that relate to the patent. Otherwise, people could just go patent any old thing they think of and wait for some other company to comercialize the common-sense idea - then sue..
I did a search for this company and can't find a website, service or any other legitemate purpose to exist; All I found were lawsuits...
I'm going to go patent something obvious now...like shoes that recharge your phone when you walk... look out Nike...
While I understand your vitriol, bear with me for a minute and consider this. A patent is just a property right, like to a piece of land. A property right does not mean you necessarily have to use the land, but it allows you to keep people off it. Sure you COULD have a farm or build a house on it, but you don't HAVE to. It's yours - do what you want with it.
"Licensing companies" are basically companies that buy unused land and then try to kick people off the land when people come on to it. "Hey, but you're not using the land - why can't I cut across it?" is a fair question, but it comes down to "well, because it's their land and they can allow or not allow who they choose."
Now, disputing that the land should be theirs in the first place is a little different. But if they do have a potentially legitimate claim, they should still be allowed to prevent people from walking across it until it's proved that they don't, shouldn't it? Otherwise I could challenge your ownership of your house, walk all through it until you proved to me you own it - and just having a piece of paper (deed) saying you own the house doesn't cut it.
I understand your viewpoint - it is a very common one. But do you see the idea and the logic behind the one I presented?
-p-
Perhaps the vitriol comes from the perception that there are many, many people who have staked claims to huge ... tracts of land, with seemingly no intention of ever developing it themselves.
It is certainly reasonable to focus on the fact that the land is owned, but I think more people are questioning whether or not it should be permissible to own land without ever using it. Although the analogy may break down at this point, I believe that there are circumstances where you cannot simply purchase land and keep it vacant: at the very least, you're expected to do something to maintain the land, and in some cases, you may be expected to develop the land in a specific manner.
Which is why the monopoly a patent gives you expires 20 years after filing the application (or earliest priority date if you want to be technical). :-)
-p-
Yo -p-
That's a great description of a totally dysfunctional system.
In the real world, when people are squatting on a piece of land that everyone needs to use, governments step in and use the power of eminent domain to reclaim the land for use by all. Sadly the Founding Fathers never imagined a bunch of lawsuit-happy patent squatters, or they'd have build eminent domain over patents into the Constitution as well.
Actually, the government only uses eminent domain when it determines that taking the land is in the best interest of the public (the CT case excepted). And when it does, the government justly compensates the land owner.
In the case of patents, the disclosure of the idea is what the government has determined is the in the public interest, i.e., you've given up your secret and told the world how to solve a problem, so the 20 year monopoly is your just compensation.
p, good retort but if the 'landholder's intentions were to keep people off the 'land' so to speak, they would file cease-and-desist orders against the infringers. instead, they're filing lawsuits which seak financial reward/restitution.
Seeing as the company has no existing revenue stream or model to create such a revenue stream, it appears that their sole purpose is to wait for someone to step into their snare and then sue.
This practice should be illegal.
Well, actually just about EVERY patent lawsuit seeks an injunction, so in effect they are asking for a cease and desist in addition to damages. However, if someone's already been on your land, taking advantage of it, kicking them off isn't going to undo the enrichment they've obtained by hanging around on your land. It'd be like if I came onto your land, farmed some of crops while I was there, built a house on it, and then you wanted to kick me off. I shouldn't have been there in the first place, so you should be compensated for the use of my land. It's the whole theory behind renting property - you pay for the use.
I'm not trying to be snide, but "it should be illegal" is a little silly. People smarter than both of us came up with the basic tenets of property law and intellectual property concepts and they've been around since William the Conqueror. Should the rules be modified? Sure, but made illegal? No. If that was the case, by your remedy, no one would build anything because they'd invest millions into a product, be enjoined by a patent holder and then collapse because they'd have to cease and desist all infringing activity. Instead, the patent owner is compensated a reasonable royalty, the infringer takes a license, and the parties keep going. And this is all for a patent that is not found invalid (which will occur more and more frequently with the Supreme Court's ruling in KSR back in May).
Money is just money. By your solution, Apple shouldn't be allowed to sell the iPhone at all if the patent is valid. Which is worse - they pay more than they expected to, or they are prevented from selling it period?
-p-
"...the monopoly a patent gives you expires 20 years after filing the application..."
Which is the crux of the failure of the current patent system, ensuring that we (consumers) are always 20 years behind on any given technology. $360 million for an idea originally implemented almost 40 years ago for email is ridicules and not in the consumer's interests. What product or service has Klausner even attempted to sell that utilizes this technology? My bet is none, patent trolling hurts invasion and ultimately all consumers.
The innovation aspect is that people are supposed to come up with new ideas to get around the patent. Seriously.
-p-
Here is an analysis that I found on another site. It seems a reasonable analysis to me...
I am not well versed in patent law, but I have read both related
patents.
Although Apple could settle this out of court, I suspect that Apple
will contest the validity of the patents and go to court. In each of
the patents the phrase "These codes or numbers are decoded by means of
the caller entering DTMF signals into the telephone which are
recognized, recorded and processed by the TAD."
Under closer reading the TAD (Telephone Answering Device) contains a
DTMF decoder. The caller leaves a message, and uses the telephone
keypad to enter a code which the TAD associates with the call. It is
this code, entered by the caller, which the TAD associates with other
internal data to construct and display the list of calls. Automatic
caller IDs, not user entered data, is used in the Apple/AT&T
implementation. I believe that Apple might defend itself by claiming
that the original patent only covers implementations which rely on
arbitrary caller-entered data. In this interpretation, the patent
would only be valid for this subset, and not cover the case where the
data is gathered directly from caller ID tones. The codes used are
transmitted and decoded via DTMF just as in the described
implementation, but they are not entered by the caller into the
telephone.
Since both patents explicitly refer to codes gathered by "means of the
caller entering DTMF signals into the telephone", my guess is that
Apple will claim that the patent does not apply to Apple's specific
implementation.
That seems like a pretty big difference. The system that Apple actually uses (called ID identification used to identify calls) also strikes me as pretty obvious. I hope they fight it vigorously. More work for lawyers is always good.
fucking sueing :(
Then might as well add a bunch of PBX manufacturers to the list. At work we have this voicemail feature where we can just access the list voice messages and play them through our computers' client.
I'm so sick of these patent trolls. They're defeating the purpose of patenting.
I am not sure whether you can file a law suit in a court which doesn’t have jurisdiction over either the plaintiff and / or the defendant. Most likely this company was smart enough to incorporate itself in some small town of Texas.
If it is true that Eastern Texas District is very liberal about such cases, then it is really bad for the state because more and more legit business will think twice before setting up businesses there.
Also, these patent squatters know that big corporations would prefer to settle rather been drawn to long legal battle. I mean, why would a corporation spend 20 to 30 million dollars on lawyers and legal fees if it could just “settle” for 10 to 15 million dollars? It is high time that these corporations made an example of these idiots.
I am not saying that ALL patent disputes are frivolous, but most of them are.
Lastly, the root problem of this are the patent laws which allow an idea to be patented rather than a innovation using this idea. The guy who invented periscope was not granted a patent because a “similar” device was mentioned in Jules Verne’s novel. I mean tomorrow, someone can just patent the idea of “Method of discharging waste fluids in upright position” and then sue anyone who dares to take piss standing.
"If it is true that Eastern Texas District is very liberal about such cases, then it is really bad for the state because more and more legit business will think twice before setting up businesses there."
It also brings in a ton of revenue in court fees.
"Lastly, the root problem of this are the patent laws which allow an idea to be patented rather than a innovation using this idea. The guy who invented periscope was not granted a patent because a “similar” device was mentioned in Jules Verne’s novel."
even today that would invalidate any patent as long as whatever the prior art described the actual process and not the end result. Also obvious patents are not patentable.
"I mean tomorrow, someone can just patent the idea of “Method of discharging waste fluids in upright position” and then sue anyone who dares to take piss standing."
I know this is sarcasm but biological process are not patentable. Case in point Hormones are patatenable only by the process in which they are made in the lab. Natural body process are not patentable. Even thouh a patent is held for Bovine Growth Hormone you could still produce it if you found another way to process it.
On a side note all patents are prosecuted during the application process. It can be a lengthy time from application of a patent to the patent actually getting filed. It should also be noted that in most cases the actual product in question has to be inspected for the process not the end result. design can play a large factor if it is key to the process like say Ink Jet cartridges.
A common strategy is for the plaintiff to set up a shell company with a mailing office in the Eastern District thereby establishing personal jurisdiction (the harm is caused to an in-state "entity").
Though most people don't know it, there is a lot of legislation being considered (and very close to passing if not already done) to reform the patent system. One provision is specifically aimed preventing venue shopping specifically because the E.D. Tx is well-known to be a plaintiff friendly venue. Homework assignment: http://en.wikipedia.org/wiki/Patent_Reform_Act_of_2007
All that said, your comment is way off on the numbers. A typical patent litigation costs a side around $5 million in attorneys fees/costs from start to finish, not $20 or $30 million. The reason suits settle is because of the potential payout down the road and that is usually based on a "reasonable royalty" computed based on the number of infringing devices sold and a number of other factors (lookup Georgia-Pacific factors).
-p-
"It also brings in a ton of revenue in court fees."
It is a federal court. So doesn't ALL the court fees go to the Federal Govt. than the State of Texas?
Wow, does anyone else think it is funny how apple fans always complain about how Apple is always ahead of everyone else and how everyone else steals Apple's technologies to keep up, but yet Apple is CONSTANTLY being sued for patent infringment?
This is Apple at it's best. Innovation? Stealing other company's technology is right up their alley.
How on earth do you patent the concept of a list on a screen?
Stealing a million dollars isn't easy. And if Klasuner sneaked into Apple's lobby and stole some chairs and potted plants, that would only net him a couple hundred dollars or something.
So what's a thief to do? Litigate!
Pfffft. Burn in hell, Klasuner.
So how is the patent owner the thief? Typically, the patent owner is the one *suing* the thief for damages.
If you people had your way, there wouldn't be a court system and we'd be back to a "state of nature" Hobbesian world where you take what you want so long as you can get your hands on it.
I think it's very amusing seeing the flecks of foam flying from the rabid fanboys' lips as they snarl in defense of Apple and denegrate the patents trolls.
Apple filed against Microsoft for infringements on their copyrighted visual elements and lost (in fact, Apple later gave unlimited access for Microsoft to adopt the "interface" in exchange for Excel and Word). The Apple interface and GUI concept was largely evolutionary, and pioneering work in GUI and mouse control existed long before Steve or Woz. Apple was neither original nor revolutionary. They did not invent the GUI, or the mouse. They tried to claim someone stole something they had already "borrowed" yet claimed they invented.
Now Apple is freely "adopting" other people's work (for interfaces, commercials, ad campaigns, names, software, intellectual property, etc) and is getting called out on it. Is Klausner's claim real and relavent? Time will tell, but Apple has an extremely long and negative track record for patent and copyright violation, and it shows no signs of slowing down.
Apple vs. Creative (turned down by creative, stole tech anyway, lost suit)
Apple vs. Burst (never bought licenses for tech, lost suit)
Apple vs. SP Technologies (iPhone keyboard, pending, Apple likely to settle)
There are many, many more, some turned down, some sttled, some pending. While it is true that many claims are just vultures and jackals sniffing aroud for scraps and making trouble, the large number of losses and settlements indicates a trend for Apple's business ethics and behavior.
Apple is a large corporate entity, just like any other, whose singular goal is to MAKE MONEY. They lie, cheat and steal and are just as culpable as any other company or entity who profits on the work of others without paying for it. They are not mystical, hippie do-gooders with people's happiness in mind. They have some neat products, and a certain design philosophy, but their corporate structure, ever increasing outsourcing and lack of significant R&D are causing them much trouble.
By the way, to those who question the concept of patenting an informational menu system for data retrieval... in 2005 Apple submitted for a patent for their iPod user interface data retrieval system. Unfortunately they were denied. Someone else had done it 3 years before them (John Platt, 2002).
They went ahead and used their system anyway (which technically means that their system violated Platt's patent, which they never licensed).
Patents do cover methods and means for heirarchial data retrieval and nested tree menu systems within specific systems and specific devices/platforms. The visual voicemail is no different, as it uses multiple pieces of data to provide a heirarchial display of voicemails that are visually represented according to data sorting. Because it uses visual representation of a specific data type (voicemail) on a specific platform (cell phone) it is directly in contest to Klasuner's patent. Just like Apple's patents of similar data in the past.
Seems they need to work on developing a system for retrieving info on patent and copyright law.
Ok, I didn't read all the comments so i don't know if someone has already mentioned this but, i find it damn annoying that companies or people for that fact patent a certain idea or trademark some phrase or whatever and then DON'T DO ANYTHING WITH IT and then when some other company actually puts that idea into production and decides to let the general public benefit from it (such as visual voicemail) all these companies/people do is wait for them to make a great profit and sue. Of course this company did not sue when they first found out about Apple making a visual voicemail, in fact, they were probably ecstatic. They did not sue at first because it costs a lot of money to sue, and if the idea hasn't been placed in production, there's not a lot of damages they can get out of it. Therefore they wait a while till they can get big bucks, sue and make a ton of money. I just hate that it's like this because patents shouldn't be determined by when you thought about the idea, but when you put the idea into practice.
So yeah.. this story really isn't about Apple "stealing" somebody else's idea. Hell, nothing is original nowadays, its just who does it first that should matter.
thats my thought...
What a d-bag you are. If you can't be bothered to read what everyone else writes, then don't write yourself.
This was brought up and discussed already. Read next time.
Apple actually WON their patent suit against Microsoft and settled for some cash and foolishly allowed M$ to use the stuff if M$ would do some stuff with M$ Word or something.
This Klausner dude doesnt actually MAKE anything, he's just a greedy, property developer in New York that decided a long time ago to pitch a pile of really OBVIOUS things as patents and see how many fish he could shoot in that barrel. What a jerk. he probably thinks its cool to make money in this oafish slimy, parasitic way.
'Klausner technologies' - just a nasty patent troll - there oughta be a law against it.
The whole M$ thing was kind of funny 10 years ago, but its time has long since passed. You lose.
Is Klausner Technologies a long lost relative of SCO?
It look like they had sued AOL for same patent in 2005 then AOL had been settled to pay for licenses.
http://findarticles.com/p/articles/mi_m0EIN/is_2005_June_15/ai_n13815137
http://findarticles.com/p/articles/mi_m0EIN/is_2006_April_24/ai_n16132324