In a move that smacks of the Research In Motion Ltd./NTP Inc. tussle, a holding company that owns wireless spectrum has sued Alltel Corp. and Verizon Wireless over alleged patent infringements involving the transmission of television to a wireless phone.
A wholly owned subsidiary of Speedus Corp., CellularVision Technology & Telecommunications L.P., filed suit last week in the U.S. District Court in Florida against Alltel; the company filed against Verizon Wireless last month. A trial date of Jan. 7, 2007, has been set in one of the two complaints against Verizon Wireless. According to Speedus, the technologies involved include those used to “transmit television to wireless users over cellular networks and the simultaneous transmission of analog and digital signals within the same bandwidth.”
Both Verizon and Alltel sell video offerings to their subscribers.
“We have identified infringements of two of our patents by Alltel, and we are asking them to cease and desist from these infringements in their network service,” said Shant Hovnanian, chief executive officer and chairman of Speedus. He added that Alltel’s reciprocal roaming agreement with Verizon Wireless had “increased the scope of unauthorized usage of our technology.”
According to the company’s Web site, Speedus has 43 wireless-related patents in 22 countries and 21 patents pending that will add another six countries to the list.
“We believe that it would be difficult for any wireless communications company to construct a system without using one or more of our patented technologies,” Speedus said on its Web site. The company is seeking an unspecified sum in damages from the two wireless carriers, and that Verizon Wireless and Alltel deliver “all infringing devices and all … other matter used for making such infringing devices” so that they can be impounded or destroyed.
Verizon Wireless declined to comment on the matter. Alltel spokesman Andrew Moreau said that Alltel had not yet had an opportunity to review the suit, but that the company “does not believe we have violated any patent rights.”
When asked why only Verizon Wireless and Alltel were targeted when other carriers also offer mobile TV services, Speedus’ Hovnanian said that the company has “an ongoing investigation to evaluate possible infringements of our entire portfolio. When we find infringements, we will act accordingly.”
He said that no equipment manufacturers had been sued because the actual violation of the patents involves operating a network.
“From my understanding, it’s the operators that are infringing on the property,” Hovnanian said.
Hovnanian added that, although the company is also investigating possible overseas infringements on its patents, it had not yet found violations in other countries.
Speedus, formerly CellularVision USA Inc., owns 300 megahertz of spectrum in the 28 GHz band, and is exploring the use of that spectrum for what Hovananian described as “advanced Wi-Fi services” that would be “more secure and more local.” The company also has a controlling interest in a medical device company, Zargis Medical Corp., and owns two fast-food restaurants in the New York area, F&B Güdtfood.
Speedus reported a $5.5 million loss in 2005 and has made a profit only in two years out of the last six. In 2001, it reported profits of $2.8 million due to investments gains. In 2004, the company spent $2.9 million on a technology lawsuit with one of its international licensees that ended up being settled for $15 million, giving Speedus a $6 million profit for the year.
The company’ stock was as high as $10 per share in 1999, but by 2001 Speedus was struggling to maintain the $1-per-share minimum to be listed on the Nasdaq. The stock-which still is listed on the Nasdaq-went up about 10 percent in response to the Alltel suit, but had flattened out by mid-week.
