| Microsoft and InterTrust settle DRM dispute, cross license patents |
Apr. 12, 2004
Microsoft announced today that it has taken a comprehensive license to InterTrust Technologies Corp.'s patent portfolio for a one-time payment of $440 million, and that the agreement resolves all outstanding litigation between the two companies. Additionally, InterTrust will receive rights under Microsoft patents to design and publish InterTrust reference technology specifications related to digital rights management (DRM) and security. The two companies say they believe this agreement will accelerate adoption and development of DRM technologies.
Microsoft and InterTrust issued the following statements: "Licensing InterTrust's patent portfolio reaffirms Microsoft's commitment to the importance of intellectual property rights as well as our commitment to our customers to stand behind our products in these emerging technology areas," said Marshall Phelps, deputy general counsel and corporate vice president of intellectual property at Microsoft. "One of our goals with this and our broader intellectual property (IP) licensing program is to provide peace of mind for our customers and partners by letting them know that patent licensing is our responsibility. Doing an effective job at managing the IP in our software differentiates our products and builds confidence that Microsoft has the rights necessary to build innovative solutions."
"Today's announcement validates InterTrust's intellectual property portfolio as seminal to advancing DRM and trusted computing in the marketplace," said Talal Shamoon, CEO of InterTrust. "InterTrust will continue to help drive the adoption of these important technologies through our inventions, licensing programs and reference technologies, and we expect to develop a thriving licensing business going forward." Microsoft says "the settlement agreement ensures end-users can use Microsoft products and services as they are intended to be used without requiring a license from InterTrust." In addition, "software developers who build products that use Microsoft platform technology will not require an InterTrust license for normal and expected uses of the Microsoft technologies," according to Microsoft.
However, Microsoft said, "developers, including systems integrators, may need a license from InterTrust for other uses of Microsoft technology including cases in which Microsoft technology is combined with third-party technology."
Information about licensing terms, questions about whether a license is needed and documentation needed to license InterTrust technology can be found on InterTrust's corporate website.
"DRM solutions are essential to secure valuable personal, business and commercial content in a massively connected world," noted Will Poole, senior vice president of Microsoft's Windows client business group. "With our existing technology and IP portfolio combined with our new agreement with InterTrust, Microsoft is committed to working with the broader industry to accelerate the promotion of DRM standards and solutions. Microsoft and our partners are delivering the most powerful and flexible rights management solutions in the industry, while assuring customers that we have the IP necessary in striving to secure our products."
InterTrust is an independent, privately held company located in Silicon Valley. The company was founded in 1990 and was publicly traded from 1999 to early 2003 when it merged with a joint venture owned by Sony, Philips, and Stephens Bank. The company says it holds 30 U.S. patents, and has over 100 patent applications pending worldwide, covering software and hardware techniques that can be implemented in a broad range of products that use DRM and trusted computing technologies, including computer operating systems, digital media platforms, Web services, and enterprise infrastructure.
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