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October 30, 2007

Buffalo Stops US Sale of Products under Patent Case Ban

By Glenn Fleishman

Buffalo Technology was enjoined starting Oct. 1 from selling 802.11a and g gear in the U.S.: The Australian technology research agency CSIRO has a broad patent in the U.S. that’s being widely fought. A Texas court, in a jurisdiction which patentholders attempt to get their cases remanded to, found Buffalo infringed CSIRO’s rights. Buffalo has appealed. Buffalo’s posting on their wireless products page notes, “Recently, Microsoft, 3COM Corporation, SMC Networks, Accton Technology Corporation, Intel, Atheros Communications, Belkin International, Dell, Hewlett-Packard, Nortel Networks, Nvidia Corporation, Oracle Corporation, SAP AG, Yahoo, Nokia, and the Consumer Electronics Association filed briefs in support of Buffalo’s position that injunctive relief is inappropriate in this case.” Buffalo can sell existing inventories and has permission to replace products under warranty.

Although Buffalo mentions 802.11a and g, Draft N products are apparently under the import ban, too, perhaps because they incorporate 802.11a and g.

The Register notes that the Microsoft-led group that includes 3Com, SMC Networks, and Accton are pushing the eBay v MercExchange argument, which prevents injunctions in most cases in which a patentholder isn’t actively involved in making a product that uses the patent.

CSIRO’s actions don’t threaten 802.11n so much as impose a fee on it. If CSIRO can prevail, then every piece of 802.11a, g, and n (but not b) gear would have a small licensing fee attached to it. This would increase the cost of products by a tiny amount. Companies would also potentially either be liable (if they lost a lawsuit) or able (if they negotiated) to pay back fees in that case, too.

If CSIRO can’t prevail in U.S. courts, then it’s business as usual. [link via The Register]

Posted by Glennf at October 30, 2007 1:45 PM

Categories: Legal

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