Paradigm hires major U.S law firm to enforce rights over wireless location patent

Paradigm Advanced Technologies Inc has hired one of the top lawyers in the United States to crack down on companies that use its wireless location technology without a licence. David Boies, who came to litigation fame defending Napster Inc, arguing the U.S. government’s anti-trust suit against Microsoft Corp, and fighting for a Florida re-count in the recent American election, has been retained by Paradigm to persuade any company currently using its patented technology to start paying for it. Eduardo Guendelman, president and CEO at Paradigm says six major firms were interviewed and the company ultimately settled on Boies, Schiller and Flexner LLP because of its end-to-end legal team which includes litigation lawyers, technology experts and patent lawyers. "We found that because of the size (of the market) and the millions of users already using the technology of GPS transmission over cellular (networks), there was a need to hire a top notch law firm," Guendelman told Report on Wireless. "And Boies had some experience in working with Microsoft, plus in other cases." Paradigm’s wireless location patent covers the transmission of GPS signals over cellular networks. It acquired the patent last September from Eastern Investments (RoW, Sept. 18/00) and its move into the wireless location business began with its purchase of PowerLOC Technologies (RoW, Sept. 5/00). Patent stood up to legal scrutiny in the past Boies’ job will be to enforce the patent, preferably by encouraging companies using a similar architecture to license the technology from Paradigm. Companies that refuse will likely face litigation. Seven years ago, one of the largest GPS companies in the world, Trimble Navigation Ltd, Sunnyvale CA, challenged the patent and ultimately lost. As a result of that case, the Paradigm patent was strengthened and expanded to cover four apparatus claims and two method claims. That doesn’t bode well for one Ottawa-area GPS company, SiGEM Inc, which has grown significantly of late signing contracts in various parts of the world for its e-Ping technology. Company executives wouldn’t comment specifically on this situation saying only that Paradigm’s patent would have no material impact on its business. Other companies like CSI Wireless Inc of Calgary and Vancouver-based L3 Technology could also be affected. "The decision to hire Boies practically is hinting to everyone that we are here to stay," Guendelman told RoW. "And we are going to be enforcing our rights and licensing to those that wish to use our technology." While the patent is wide reaching in nature, Guendelman claims there is no confusion when it comes to the delivery of the technology via a GPS-type system or a cellular network. As such, he maintains that the patent is enforceable. "Any company that is transmitting satellite-obtained location information over cellular networks is using our technology." Discussions already underway Paradigm won’t say how many companies in the world it believes are using this type of architecture to deliver wireless location services, but during a conference call this month with investors Guendelman said "the technology is being used by automotive companies and telecommunications companies, some of which are multi-billion dollar companies." Paradigm spent the last five months doing extensive market research to identify which companies were infringing on its patent. With a list now in hand, the legal team will talk to these companies about the benefits of signing licensing agreements with Paradigm, and the potential ramifications if they don’t. "Our intention at this stage is to leave our legal team to implement a strategy so we will, in a more efficient way license companies to use our technology," he says. "We are already talking with many of the potential licensees and we hope in the next while more companies will come to us and license our technology," adds Guendelman. "We will try to reach agreements and licensing agreements in an amicable way and we are working in that direction." Solidifying presence in the GPS market Paradigm recently acquired Naftel Technologies Inc and its portfolio of six patents covering navigation, mapping and communications which should help the company maintain a strong position in the burgeoning wireless location market. The acquisition also enables Paradigm to "become a sizable l-commerce (location commerce) company that will not only be able to license technology, but also offer products to our customers, as well," says Guendelman.

Paradigm hires major U.S law firm to enforce rights over wireless location patent

News | March 5, 2001

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