Jury: Verizon must pay $115M to ActiveVideo in patent dispute

Verizon (NYSE: VZ) was ordered by a federal jury to pay $115 million in damages to interactive television technology provider ActiveVideo Networks for infringing on four of the San Jose, Calif. company's patents.

Following the decision, which came after a three week trial and two days of jury deliberation in the U.S. District Court for the Eastern District of Virginia, ActiveVideo said the company also would seek an injunction against Verizon and its FiOS TV service.

"We are seeking immediate payment of the damages that have been awarded by the court," said Jeff Miller, president and CEO of ActiveVideo Networks. "In addition, our legal team... will be filing an injunction against Verizon to prevent any further unlawful use of our technology."

The telco, meanwhile, said it wouldn't pay ActiveVideo until its appeal was heard.

"Verizon disagrees with the verdict and is confident that the Court of Appeals will agree," said Verizon spokesman Ed McFadden.

ActiveVideo, which counts Cablevision as one of its clients, filed the case in May 2010, contending Verizon infringed on four of its patents relating to the delivery of advanced television applications such as video-on-demand (VOD) and interactive TV.

The patents include:

  • United States Patent No. 6,034,678, titled "Cable Television System With Remote Interactive Processor;"
  • United States Patent No. 5,550,578, titled "Interactive And Conventional Television Information System;"
  • United States Patent No. 6,100,883, titled "Home Interface Controller for Providing Interactive Cable Television;" and
  • United States Patent No. 6,205,582, titled "Interactive Cable Television System with Frame Server."

"We're extremely pleased that the judge found that ActiveVideo intellectual property was valid and that the jury found that Verizon infringed on all asserted claims," said Miller. "We are delighted that this verdict enables us to continue granting our customers unfettered access to the power of our CloudTV technology."

ActiveVideo has a substantial portfolio of patents dating back to the early 1990s. The ActiveVideo CloudTV platform is currently deployed with major cable system operators, including Cablevision.

For more:
- see this release
-see this Bloomberg article

Related articles:
Cablevision wins round in battle with Verizon
Court invalidates Verizon's patent counterclaims against ActiveVideo, Cablevision
Cloud TV: ActiveVideo Networks
Interactive TV vendor ActiveVideo files patent infringement suit against Verizon

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