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In 1994,
the company received its first IP licensing revenue
from Australia and developed early versions of its
patented media delivery software, which it licensed to
select customers.
In 1999, the company released Burstware version 1.1,
built on Intel’s JMF platform. In early 2000 company
changed its name to Burst.com and the first version of
Burstware designed as a plug-in to Microsoft’s Windows
Media Player was released, extending Burst’s
technology to Internet-based VOD and AOD applications.
Burst became a Microsoft “Partner” and exhibited in
the Partners Pavilion at the NAB trade show in April
of 2000. The company earned revenues from the
sale/licensing of Burstware in the first half of 2000.
By mid-2000, the company had grown to a peak of over
100 employees.
In the last half of 2000, Microsoft released a version
of WMP that rendered Burst’s plug-in inoperable. Burst
was forced to cut its staff from 110 to 20 employees.
By April of 2001, due to factors described in Burst’s
subsequent lawsuit against Microsoft, the company’s
size was reduced to 5 full-time employees and the
offices were moved to Santa Rosa California.
During the 2nd half of 2001, Burst restructured the
company’s operations, successfully eliminating most of
the company’s liabilities. It also further reduced the
company’s operating costs by shrinking to 2 full-time
employees and utilizing contract labor for all other
vital services. Utilizing former Burst engineers on a
contract basis, the company improved the Burstware
product and was able to generate new revenues,
including a new Master Licensing agreement with a
Korean video-on-demand firm.
On December 11th 2001, Microsoft publicly announced
that it was introducing a new digital media delivery
product named “Corona” (later renamed Windows Media
9), which appeared to utilize all of the major
elements of Burst.com’s patent portfolio and Burstware
software products (without a license).
On June 18, 2002, the company filed a lawsuit in U.S.
District Court in San Francisco, accusing Microsoft
Corporation of various antitrust and
patent-infringement violations.
On March 12, 2005, Burst announced that it had settled
its litigation with Microsoft. Microsoft agreed to pay
Burst $60 million for a non-exclusive license to
Burst’s patents, with no rights for sublicensing.
During 2005, Burst approached several companies that
it determined were utilizing Burst’s patented
technology without a license. One of these companies
was Apple Computer, Inc. Following extensive
negotiations in 2005, Apple sued Burst in U.S.
District Federal Court in San Francisco on January
4th, 2006, seeking to have 3 of Burst’s patents
declared invalid and Apple not infringing these
patents.
On April 17th, 2006 Burst filed a counter-claim and
patent infringement suit against Apple Computer,
accusing Apple of infringing 4 of Burst’s patents with
various iPod, iTunes, & QuickTime products and
services. The case is currently pending.
As of January 2006, Burst.com had been issued 10 U.S.
patents and 28 International patents (tracking the
U.S. material) on its faster-than-real-time “Burst”
technology (the earliest being issued in 1990). The
issued international patents include the European
Community, Japan, Korea, Canada, Australia and India.
There are an additional 7 patents pending in the U.S.
and abroad.
January 3, 2008, Burst announces a settlement agreement with Apple Computer.
January 8, 2008, Real Networks files suite against Burst.com seeking a declaratory judgment of non infringement.
March 31, 2008, Burst announces it has received 2 new patents from the United States Patent and Trademark Office. Patent #7,334,034, entitled
"Method For Connection And Rapid Determination Of Optimal Multi-Media Content Delivery Over Network” was issued on February 19, 2008. The second patent, #7,346,688 was issued on March 18, 2008.
___________________________
Richard Lang, Burst.com’s Co-Founder, Chairman & CEO
is the inventor-of-record for the bulk of Burst.com’s
patent portfolio. He is also the Co-Founder and former
CEO of Arizona-based Go-Video, Inc., which he started
in 1983 and remained with as CEO until mid-1987. He is
co-inventor of record for Go-Video’s patented
“Dual-Deck VCR”, which continues to be sold worldwide
today.
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