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VOD Patent Battle Turns Bitter

BRIAN SANTO

One of the greatest contributing factors in Robert E. Lee's loss at Gettysburg was his failure to scout the enemy. If you're going to pick a fight with someone, you really ought to find out first what kind of heat they're packing. SeaChange International may have just learned that lesson the hard way.

SeaChange sued nCube for patent infringement earlier this year; now nCube has turned around and sued SeaChange for a patent violation.

But where SeaChange's patent covered a fairly specific system configuration, nCube's patent appears to be fairly broad, describing a fundamental process that covers, among other things, video-on-demand (VOD).

The SeaChange patent covered a means of ensuring system redundancy with multiple servers. nCube is able to avoid infringing on SeaChange's patent by not hooking up its servers in a certain configuration.

nCube's patent might not be so easily side-stepped, however. It covers the way communications between a client and a server are managed in a high-bandwidth environment.

nCube officials insist SeaChange's VOD products, by their very nature, violate its patent and have asked a judge to issue a permanent injunction ordering SeaChange to stop shipping those products immediately.

In effect, it looks as though SeaChange pulled a knife and nCube whipped out a cannon.

"They thought they saw a situation where we were coming up against them. Now it's my turn to say: `Here's where you're coming up against me,'" says Michael Pohl, president of nCube.

He said nCube's suit was not brought in retaliation. By the way, the nCube patent (U.S. Patent Number 5,805,804, originally issued to Oracle) is not licensed by any other company, and nCube has sued no other company for infringing it, even though it would seem to apply to many competitors; products.

In response, SeaChange president/CEO Bill Styslinger not only issued the standard "without merit" quote, he saw fit to carp about nCube's lawsuit notification methods, another indication the spat between the rivals has gotten rather bitter.

"SeaChange received no notice regarding nCube's claims of patent infringement prior to that company's press release yesterday," he says. "Although it would usually seem reasonable to address a conflict prior to involving the courts, we have had an opportunity to review nCube's claim of patent infringement, and we believe it is without merit. SeaChange will vigorously defend its technology, products and customers."

nCube's patent, filed in November 1994, covers fundamental systems and methods for providing multimedia solutions in today's networked environment. Applications are split so that client devices (STBs, PDAs, etc.) can focus on presentation, while backend servers running in a distributed server complex provide access to data and manage the acquisition of data from numerous sources. The technology covered by the patent is essential to providing a commercially viable real-time multimedia VOD server that supports storage and playback of real-time audio and video data.

Can SeaChange get around the patent?

"They would have to fundamentally change the way they do business," says Pohl.

If SeaChange wanted to license the patent, he'd be open to doing so, he adds.

SeaChange filed its infringement suit against nCube last July. In September, a jury issued a verdict in favor of SeaChange.

There has been no entry of judgment or final ruling from the court, and nCube continues to contest the verdict, with three post-trial motions pending before the court.

Congratulations on winning the 2000 Women in Technology Award from the SCTE and WICT. Thank you!

Was it hard to gain acceptance as a woman working on the technical side when you started in the cable business?

I can honestly say I never had a problem being accepted or getting ahead. I've always had incredible support from my managers and coworkers.

Although you're overseeing AT&T Broadband's rollout of enhanced digital services, you've also been active in training throughout your career. Why is that important to you?

Everyone in the company needs to understand how a cable system works, from the people in accounting to the people in the field. Besides taking workshops, I tell people to network through organizations such as SCTE and WICT. I also suggest they find a mentor.

What's this about a future career as a Wal-Mart greeter?

I always figured I needed a job with no stress. The cable industry gets in your blood, but sometimes I think how fun it would be to just say, `Hi, welcome to Wal-Mart! Would you like a cart?' for a living.

We also hear that your other passion, besides ITV, is an ATV ...

My husband Michael and I got a Honda Rancher about a year ago, and it's my favorite escape. On weekends we love nothing more than driving it around our property in the Rocky Mountains.

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