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Article One Partners is a company that offers rewards to people for finding prior art that can be used to try to invalidate patents, and Article One is willing to pay serious money to those who find that prior art. Most recently, Article One Partners paid out $50,000 to an anonymous individual for identifying prior art that, Article One Partners believes, invalidates at least one of the two Worlds.com patents. The Article One Partners press release indicates that they believe the prior art they found invalidates Worlds.com's earlier '690 patent. They do NOT indicate that they believe it also invalidates the latter '558 patent, but instead indicate that the prior art may also be "relevant" to the latter patent. Indeed, it may be "relevant", but only one claim needs to remain valid and infringed for NCSoft to be on the hook for damages and an injunction. Nonetheless, Article One clearly believes they have some good prior art, and is willing to license its findings to interested parties.

While this certainly appears to be good news for the virtual world community in general, NCSoft is not out of the woods yet. If anything, this might help distill the issues in the case and reduce the number of claims being litigated between the parties, but it doesn't appear that the case is going to go away any time soon. Stay tuned...
Yahoo! Inc. v. Nat'l Football League Players Association, Inc. et al.
United States District Court for D. Minn.
Case No.: 0:09-cv-01272-PJS-FLN, Filed June 1, 2009



Continuing the trend of fantasy sports litigation, Yahoo! Inc., has filed a lawsuit seeking declaratory judgment against the defendants National Football League Players Association, Inc., and the National Football League Players Incorporated (collectively hereinafter “NFL Players”).

The NFL Players Association acts as the exclusive collective bargaining representative for active players in the NFL. The players assign their rights to the Association which, in turn, grants NFL Players Inc. exclusive use of the Group Licensing Rights. Yahoo! provides NFL fantasy football game services to participants throughout the United States. This includes tracking, compiling and posting publicly available NFL player statistics and information to aid game participants in making decisions.

Prior to the upcoming 2009/2010 season, Yahoo! had a licensing agreement with NFL Players to pay for using the statistics as well as “names, likenesses (including, without limitation, numbers), pictures, photographs, voices, facsimile signatures and/or biographical information” of NFL players. However, the license expired in March 2009 and was not renewed. On April 28, 2009 the same court hearing this case decided in CBS Interactive, Inc. v. Nat. Football League Players Inc., 70:08-cv-0597-ADM-SRN (D. Minn.), that the provider of a fantasy football game did not require a license from NFL Players to use player names, statistics, and other information in operation of the game. After that decision, Yahoo! contacted NFL Players to get confirmation that it would not be sued for similarly using the statistics but NFL Players refused to provide confirmation since they were appealing the court's ruling.

Yahoo! followed up on June 1, 2009 by filing the present suit in which it seeks declaratory judgment (a declaratory judgment action is one filed by someone who fears getting sued by another on an issue, and doesn't want to sit around waiting to get sued - they file a suit of their own to clear the air and resolve the issue) on three claims:



  1. Yahoo!’s actions in operating its fantasy football league did not violate any publicity rights owned or controlled by NFL players;



  2. If Yahoo!’s actions did violate those rights, the First Amendment supersedes that right of publicity; and



  3. If Yahoo!’s actions did violate those rights, federal copyright law preempts the trademark right or right of publicity by dedicating information used in a fantasy sports games business to the public.


This suit seems almost identical to CBS Interactive mentioned above, as well as C.B.C. Distribution and Marketing Inc. v. Major League Baseball Advanced Media, L.P., 505 F.3d 818 (8th Cir. 2007), which dealt with similar publicity issues in fantasy baseball. In both of these other declaratory judgments, the courts found that even if the plaintiff did violate defendants' publicity rights, the plaintiff enjoyed a First Amendment right to use the publicly available players' names and statistics that prevailed over any right of publicity. To escape this precedent set in the 8th Circuit, it seems possible that NFL Players may attempt to transfer venue to the Southern District of Florida as the defendants attempted in CBS Interactive (to no avail). Why Florida? In Gridiron.com, Inc. v. Nat'l Football League, Player's Ass'n, Inc., 106 F. Supp. 2d 1309, 1315 (S.D. Fla. 2000), which appears to be the only other case addressing publicity rights and the First Amendment as they relate to the fantasy sports industry, the court rejected the plaintiff's argument that a fantasy football provider had a First Amendment right to use players' names and statistics without a license. This kind of split among jurisdictions may result in a trip to the Supreme Court, so we'll keep an eye out ...


A full version of the complaint can be found here.

IQ Biometrix, Inc. v. Perfect World Entertainment, Inc. et al.
United States District Court for N.D. Illinois, Eastern Division
Case No.: 1:09-cv-03180, Filed May 27, 2009

IQ Biometrix, Inc. on May 27, 2009, filed a new lawsuit against Perfect World Entertainment, Inc., Perfect World Co, Ltd., and Wagware Systems, Inc. for alleged patent infringement regarding two separate patents.

The plaintiff, IQ Biometrix, Inc., provides facial image composite software, marketed under the name FACES, which is used by law enforcement agencies worldwide, including the CIA, the FBI and the U.S. Military.

Defendant Perfect World Co. Ltd. is a China-based online game company and maker of the popular fantasy-based MMORPG Perfect World which offers gamers significant avatar customization and player-created content. Defendant Perfect World Entertainment is a wholly-owned subsidiary of Perfect World Co. Ltd., established in the U.S. in 2008 to localize and publish Perfect World in North America. More info on defendants here and here.

Defendant Wagware focuses primarily on developing software applications for handheld platforms. One of its products, MakeFaces, is a children’s game designed to allow the user to combine different styles of facial features (e.g., eyes, nose, hair) to make funny faces.

IQ Biometrix alleges that Perfect World Entertainment and Perfect World Co. infringe IQ Biometrix’s patent 6,731,302 by providing the online game Perfect World, likely because of the avatar customization the game provides. The ‘302 patent, titled Method and Apparatus for Creating Facial Images, is for a process of creating a facial composites by selecting “basic morphological elements” or facial features from a library of encoded features and merging them into a single synthetic image with proportional components, thus reducing contrasts between the individually selected features. The invention appears applicable to systems used in law enforcement, artistic creations, education, and recreation (such as creating personalized characters in gaming).

Representative Claims 6 & 16 of the '302 patent read as follows:
6. A method for generating a composite facial image, said method comprising the steps of:
a) providing a machine-readable storage medium for storing graphical representations of basic morphological elements, said graphical representations being proportionate to one another and having respective boundaries, the graphical representations of basic morphological elements including skin components around their respective boundaries, the skin components having skin tones substantially similar to one another;
b) receiving user data indicative of a set of data elements, each data element in said set of data elements being associated to a respective graphical representation of a basic morphological element in the machine-readable storage medium;
c) processing the set of data elements to locate in the machine-readable storage medium corresponding graphical representations of basic morphological elements;
d) combining the graphical representations of basic morphological elements located to generate a digital representation of a facial image, at least two graphical representations being combined such that their skin components having substantially similar skin tones meet at a boundary; and
e) displaying the digital representation of the facial image on display means.

16. A method for generating an electronic library of basic morphological elements suitable for usage in a composite picture system, said method comprising the steps of:
a) providing a plurality of facial images;
b) digitizing the facial images;
c) processing the digitized facial images to create a plurality of graphical representations of basic morphological elements of a certain facial image, said graphical representations of basic morphological elements including skin components having different skin tones;
d) applying a filtering process to said graphical representations of basic morphological elements to derive modified graphical representations, the modified graphical representations including skin components having skin tones substantially similar to one another;
e) processing said modified graphical representations to generate calibrated graphical representations, said calibrated graphical representations being substantially proportional to one another; and
f) storing the calibrated graphical representations on a computer-readable storage medium.
IQ Biometrix has also alleged that Perfect World Entertainment and Wagware (through Perfect World and MakeFaces computer games, respectively) infringe on its patent 7,289,647, titled System and Method for Creating and Displaying a Composite Facial Image. The ‘647 patent consists of 44 claims directed to various processes for the encoding/decoding of images that can be separated into their constituent parts (i.e., individual facial features) as may be used in composite picture systems. This type of encoding of the images allows for reducing the memory requirements for storage and the bandwidth required for the transmission of the image (by storing and transmitting a facial code rather than a graphical representation).

Representative Claims 1 & 34 read as follows:
1. A method, comprising:
receiving a number of facial feature designations;
generating element codes corresponding to the facial feature designations, each element code based on:
(a) a symbol representative of a facial feature, the symbol having one of a plurality of values indicative of variations of the facial feature, and
(b) a first code factor having a value that equals or exceeds a maximum value of the plurality of values indicative of the variations of the facial feature; and
displaying a composite image based on the element codes corresponding to the facial feature designations.

34. A system, comprising:
a screen; and
a processor for controlling the screen to display a number of facial feature images on a first area of a screen and to display a composite facial image on a second area of the screen, said composite image including facial feature images selected from the first screen area, the processor automatically generating element codes corresponding to the selected facial feature images, each element code based on:
(a) a symbol representative of a facial feature, the symbol having one of a plurality of values indicative of variations of the facial feature, and
(b) a first code factor having a value that equals or exceeds a maximum value of the plurality of values indicative of the variations of the facial feature, the composite image based on element codes corresponding to the selected facial feature images.
IQ Biometrix has requested a jury trial and seeks injunctive relief and damages.

We've added this case to our tracking list and will provide updates of major developments. The full text of the complaint with accompanying patents can be downloaded here.

Today the United States Supreme Court granted certiorari in the case Bilski v. Doll. As many readers may know, the case In re Bilski is the case in which the Federal Circuit court of appeals held that business methods are not patentable unless: 1) they transform matter into a different state or thing, or 2) they are tied to particular machine. This will be the first time the U.S. Supreme Court has addressed statutory subject matter under 35 U.S.C. sec. 101 since the 1981 case of Diamond v. Diehr where the Court held that the execution of a physical process, controlled in part by the running a computer program, was patentable.

It will take some time for the case to go through the briefing stage, and then to schedule oral arguments, before the Court will render a decision. In view of the fact that the Court is about to recess for the summer, we probably won't get a decision on this case until late 2009 or early 2010. We'll keep you posted nonetheless, as this case could have a major impact on patents for video games and other interactive entertainment and media.

Read more from Brad Wright of Banner & Witcoff here.
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-Ross
On this day in history, as reported by Wired.com, on May 26, 1981, the USPTO granted the first pure software patent, U.S. Patent No. 4,270,182, to Satya Pal Asija. Video games are computer software, so the '182 patent really was a groundbreaker for the industry. The software was a natural-language-interface program called Swift-Answer, an acronym for the contrived name Special Word-Indexed Full-Text Alpha-Numeric Storage With Easy Retrieval.
Online chat company Paltalk Holdings, Inc. and Microsoft Corporation have formally dismissed the patent suit between them in the Eastern District of Texas.

In the suit, Paltalk alleged that the chat and communication features in Microsoft's XBox Live service infringed Paltalk's patents 5,822,523 and 6,226,686, both entitled "Server-group Messaging System for Interactive Applications," and sought tens of millions of dollars in damages. Microsoft alleged that the asserted claims were invalid, and that their service did not infringe those patents.

The case went to trial in March of 2009, but it abruptly ended when the parties announced they had reached a settlement. The formal dismissal is a procedural step that formally closes the court's books on the case.

The settlement means those patents have avoided having their validity and scope tested in that court, so they live to fight another day. No word yet on whether Paltalk will target some other unlucky online gaming company, but we'll keep an eye out and keep you posted.

For those keeping track at home, the case cite is: Paltalk Holdings, Inc. v. Microsoft Corp., No. 2:06cv367 (E.D. Tx, filed Sept. 12, 2006).
Two items of note, one of which is in two parts:

1) Square Enix reportedly kills Chrono Trigger fan project based on alleged copyright infringement.

2) Duke Nukem Forever news...
2.1) 3 minutes of Duke Nukem Forever footage released, but...
2.2) It appears that the 3 minutes is all we'll ever see, because 3D Realms has reportedly shut down!

Bummer.
Samuel Michael Keller v. Electronic Arts inc. et al.
case number 09-cv-1967
U.S. District Court for the Northern District of California

From Law360:

Law360, New York (May 06, 2009) -- A former quarterback for Arizona State University has filed a putative class action against Electronic Arts Inc. and the National Collegiate Athletics Association for appropriating and using the images and attributes of college sports players in its popular line of interactive video games in violation of NCAA rules, which prohibit commercialization of college players.

Sam Keller, once a starting quarterback for ASU's and University of Nebraska’s football teams, filed the lawsuit Tuesday in the U.S. District Court for the Northern District of California, claiming that EA video games like NCAA March Madness, NCAA Football and NCAA Basketball violate NCAA rules prohibiting the use of college athletes’ names and images in commercial ventures.

It looks like Mr. Keller is trying to get class action status, which could make this a huge case and a potential black eye for the NCAA and EA. Apparently EA has copied the appearance and likeness of players, down to their personal clothing choices and hairstyles, without actually using the players' names. However, many of the games allow users to upload rosters that include the actual players' names. This case just might have legs. We've added it to our tracking list and will keep you posted regarding substantive developments.
In an interesting twist, Taser International voluntarily dismissed this case before Linden even answered the complaint. Taser filed a Notice of Voluntary Case Dismissal on May 5, 2009. Because Linden never filed an answer, the dismissal is without prejudice and Taser could choose to refile the case at a later time if desired. But for now, this case is closed.
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