Rovi Loses Ruling in Patent Case Against Netflix and Roku
Rovi lost the first round in its patent-infringement case against Netflix Inc. and Roku Inc. over interactive television program guides at the U.S. International Trade Commission.
Netflix and Roku didn’t infringe Rovi patents, trade Judge David Shaw said in an notice posted on the Washington agency’s website today. Rovi claimed Netflix infringes four patents and Roku one and is seeking an order that would block U.S. imports of Roku boxes and stop certain Netflix software applications.
The judge’s findings are subject to review by the six-member commission, which has set a target to complete the investigation by Oct. 7.
Another source on the above:
From Seeking Alpha
An ITC administrative law judge rules Netflix (NFLX) and Roku don't infringe a Rovi (ROVI -6.6%)...
Monday, June 10, 9:54 AM ET
An ITC administrative law judge rules Netflix (NFLX) and Roku don't infringe a Rovi (ROVI -6.6%) patent related to parental control for TV UIs; Rovi, which is likely to appeal, is diving after making fresh 52-week highs on Friday. B. Riley has cut Rovi to Neutral, stating it's "now somewhat less optimistic about Rovi’s chances of prevailing." The firm thinks deals with Netflix and Roku could respectively yield $90M/year and $10M-$20M/year in licensing fees over the next 3-5 years.
Strange wording considering that most of Rovi's patents held up,
"While we are disappointed in the initial determination of no infringement and expect to exercise our right to petition the full Commission of the ITC for a review of this decision, we are pleased that the majority of the patents involved were confirmed valid," said Samir Armaly, Rovi's executive vice president of worldwide intellectual property and licensing.
An ITC spokeswoman said that appeals generally happen after the investigation is completed, when the commission's final determination is made.
Big news coming,, Netflix and Rovi will probably still make a deal that will include Divx Plus Streaming and other patents.
Other big news coming, buyer of RES should be known in coming weeks...