14 DAY TRIAL // Apple and Burst.com have been at it for a while now, fighting over patents, definitions and, ultimately, money. Now the two companies have finally put a stop to it all through a settlement that also ensures that they won't be fighting again anytime soon.
Apple Inc. andBurst.com have ended their legal dispute through a settlement and payment of $10 million protection from current and future lawsuits. After factoring in legal fees and other expenses Burst.com will collect approximately $4.6 million. As a result, Apple will be receiving the right to use most of Burst's patent portfolio, the bulk of which deals with the compressing and transferring of data across networks. Also Apple will be immune to any further lawsuits that may arise from four additional patents that Burst has no shared, three of which are related to digital video recorders and have yet to be granted.
This settlement brings an end to a legal battle that started back in 2004 when Burst accused Apple of using its patents as the basis of the iPod. In retaliation, Apple launched a preemptive suit in the District Court of Northern California in January of 2006 in an attempt to invalidate the patents. Burst's answer was to countersuit in April the same year, accusing Apple of patent infringement by refusing to license four cornerstone patents it says are violated by the iPod and iTunes. Earlier this year, in May, a Markman Hearing meant to clarify the terms of the lawsuit also gave Burst the upper hand by allowing most of Burst's definitions to stand for a potential trial.
Burst was rather successful throughout its entire battle with Apple and back in 2005 it also won against Microsoft, getting a $60 million settlement from Microsoft over a patent dispute regarding Windows Media Player's transmission of music and video.