A Wisconsin-based startup that once partnered with Motorola Inc. to help it patent wireless-camera technology is suing Moto for fraud, patent infringement and breach of contract.
Memorylink Corp. developed technology that allows users to stream video over wireless devices. Today, such technology is used by government agencies to transmit video from security cameras and by wireless carriers to transmit video to mobile phones.
Memorylink says it showed the technology to Motorola a decade ago, and the Schaumburg-based company offered to help Memorylink patent the technology. But Motorola pursued the patent as Memorylink’s partner, not as a customer, which means Motorola has been able to use the technology in its own products without paying royalties, says Mike Femal, Memorylink’s attorney at McDonald Hopkins L.L.C. in Chicago.
Memorylink is suing to have Motorola removed from the patent, which was awarded in 2003, and to void any agreements Motorola has made to distribute the technology to others. Memorylink, which is based in Neenah, Wis., and has a research and support facility in northwest suburban Rolling Meadows, seeks undetermined damages.
“Motorola believes that Memorylink’s claims are without merit and the company intends to vigorously defend itself against these allegations,” Motorola said in a statement. “Throughout all its dealings with Memorylink, Motorola acted in good faith and in compliance with the written agreements between the two companies. While discussions to resolve this matter have been held, Memorylink has continued to make demands that are entirely unreasonable under the circumstances.”
John Pletz is a reporter for Crain’s Chicago Business, a sister publication to RCR Wireless News. Both publications are owned by Crain Communications Inc.