SAN FRANCISCO (AFX) -- RealNetworks Inc. said Friday it has prevailed in a $200 million patent infringement lawsuit originally brought against it by Ethos Technologies, Inc. in 2002.
A Massachusetts jury found that Seattle-based RealNetworks doesn't infringe on any of the 10 patent claims asserted by Boston-based Ethos, and also invalidated seven of the 10 claims in both patents. The lawsuit pertained to certain RealNetworks downloading products, including RealDownload Express and RealDownload.
RealDownload has since been discontinued and RealDownload Express, which is used as utility software to facilitate the downloading of RealNetworks products, is considered a minor application with a minimal impact on the company's revenue.
'We take Intellectual Property rights seriously,' said Dave Stewart, vice president and deputy general counsel with RealNetworks, in an interview. 'If a party issues a patent suit against us we're going to vigorously defend against it and the jury agreed with us on this one.'
The verdict resolves a legal battle first initiated by Ethos in September 2000. That suit was later dismissed, according to RealNetworks. Ethos shuttered its business in 2001 before bringing about the more recent suit which sought $200 million in damages.
RealNetworks shares have been on a tear in the past month, gaining nearly 20% and notching 52-week highs in nine consecutive trading days through Wednesday. On Thursday, Stifel analyst Kit Spring wrote that RealNetworks shares, have gotten ahead of themselves. The analyst wrote that short-term traders could profit by selling RealNetworks Inc. shares ahead of its first-quarter results.
RealNetworks reports its results in the first week of May.
In October, RealNetworks won an antitrust lawsuit against Microsoft Corp. . The settlement was valued at $761 million in cash, and included agreements to promote RealNetworks music and video services.
Stewart said RealNetworks currently has two other patent suits filed against it, 'both of which we are vigorously defending.'
On Thursday, the company's shares lost nearly 1% to $9.85. This story was supplied by MarketWatch. For further information see www.marketwatch.com.