The patent that stole Christmas
Filed under: MMO industry, News items, Opinion, Legal, Virtual worlds
As you probably know by now, Worlds.com has filed suit against NCsoft for infringement of one of two key patents that it holds. We talked about those patents and Worlds.com's securing the services of General Patent Corporation for the purposes of enforcement earlier this month.
We can learn a few things from the suit against NCsoft, including (we think) how Worlds.com/General Patent sees its own position with respect to these claims (they don't seem to think it's as firm as it could be). You might also be wondering about prior art (which is abundant). Well prior art, in and of itself, is simply not enough. Not on its own.
"There is the law as she is writ, and there is the law as she is practiced."
Law is endlessly modified. It is organic. Legislation on the books becomes accreted with a thick coating of rulings and precedents. All those minor and major judgment calls from thoughtful men and women judges who have to decide what the correct course is in a particular case. Season with periodic minor amendments and stir.
All of that adds up. Where once, even the whiff of prior art would be enough to overturn a patent for your shiny new widget, the legislation as practiced these days makes the application of prior art to defeat a patent a much trickier thing indeed.
Having the prior art already in existence is not enough. It must be indexed in the right form, and applied with surgical care. A misstep can invalidate the whole procedure and leave the patent that you wished to dismiss stronger than ever.
So, how strong is Worlds.com's position?
Their patent is pretty core technology, but it is also pretty specific. What they really need is a ruling in their favor. Indeed, the very first thing they are asking for as a remedy is "An order finding that the '690 Patent is valid and enforceable".
That would pretty much seal the game for them, and make it very hard to overturn the patent on any grounds. Once they've got that, they can sue just about every other MMOG maker and win in nice short court cases - or simply go to the settlement table and name their price to allow the MMOG to keep going.
Until they're awarded a win in court, though -- it appears that General Patent Corporation and Worlds.com are a bit less confident about their position.
The suit itself was filed on 24 December. Christmas Eve. Considering the suit constitutes a major threat to NCsoft's business, you can well imagine that the legal and management teams would need to meet urgently. From December 24 to the first days of January are probably the most troublesome time of the year to do so. There is only a limited amount of time for NCsoft to respond, and every day counts. This implies that the patent-holder isn't as confident as it otherwise might be.
It must have been a lousy Christmas for NCsoft execs, though. Either people need to be pulled away from their families and holidays or the company loses valuable time to respond.
The plaintiffs are gunning for all the NCsoft MMOG titles. They also claim that discovery will prove that infringement was wilful. Wilful infringement attracts treble damages. Wilful infringement of a patent is when you're infringing on the claims of a patent, and you were aware of it -- if you weren't aware of the patent, only ordinary damages apply.
This is why the majority of software developers discourage their employees from consulting the patent system. If they infringe accidentally, the financial risks are far lower -- and it is pretty much impossible to write any software without infringing on multiple patents.
Why NCsoft?
NCsoft is exposed right now. To make an analogy, NCsoft looks like the weakest member of the herd, and one that can be cut away from the pack and brought down. NCsoft isn't notorious for having a dark army of undead lawyers, and recent quarterly results (plus the closing of Tabula Rasa) has left NCsoft looking like a weak and vulnerable target to an outside observer.
The plaintiffs win if NCsoft makes a blunder, or can't afford to follow the case through, and the plaintiffs get their remedies -- and they win big. They can start knocking on doors, and naming their terms. For the plaintiffs a weak or clumsy (but not destitute) opponent is ideal.
Lawyers representing Worlds.com have indicated that other targets for litigation are being lined up. NCsoft is just the first.
Can Worlds.com win this? It's certainly possible. We wouldn't put money either way on the fight. Not today, anyway. The patent claim itself is sort of the MMOG/Virtual-Environment version of "Using sight as a method of visually identifying objects" -- that is, it is a fundamental mechanism for which there don't seem to be any practical alternative methods.
We are looking forward to NCsoft's response with keen interest.
















Reader Comments (Page 1 of 3)
SignpostMarv Martin said on 10:10AM 12-30-2008
To paraphrase Janet Jackson (I've been listening to 80s music a lot lately), "What exactly is it that Worlds.com has done for me lately ?"
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SignpostMarv Martin said on 10:10AM 12-30-2008
or to be more precise, have worlds.com ever done anything significant with the patented tech (when they filed it)
Phillip White said on 10:41AM 12-30-2008
damn thats messed up
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JBFire said on 11:10AM 12-30-2008
This is just unfortunate and sad. I can sympathize if those at Worlds.com feel they've been wronged by their patents being violated. No one would want that done to them. That being said, the patents for these items were done on a very vague scale. I'm still rooting for the MMO industry, but I have my worries.
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lethality said on 11:14AM 12-30-2008
That's the problem with the patent system... it should be done away with completely. They are way to broad in scope, and open to interpretation which ultimately means more litigation in our legal system.
C'mon... Amazon was granted a "patent" on one-click purchasing. Really? REALLY? Who the hell reviewed that?
Shogun said on 11:32AM 12-30-2008
I'm really hoping here that Blizzard/Activision, SOE, EA and some of the other big MMO companies ride in with their lawyers and back NCSoft now before it's too late, as mentioned above, if this case goes through due to NCSoft being "weak" at the moment, it could have far more expensive and negative ramifications for all other MMO developers in the future.
The kind of knock-on effect this would have on independant or small developers could stop development of smaller more innovative games altogether, and encourage only the creation of games that are a "sure thing"
Maybe I'm reading too much into this, but if any game that goes into development has to hand over handfulls of cash to worlds.com before they even get started, that has to have some kind of effect...
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Firebreak said on 6:06PM 12-30-2008
This case has such an impact on the industry as a whole that it is hardly going after just NCsoft. I can not imagine that the other big names are going to let NCsoft fail from a lack of funding. If they do fail then Blizzard/activision is going to be next.
John said on 2:21PM 1-04-2009
I agree. I'd love to see a company that *does* have a massive army of undead lawyers, like Blizzard/Activision, swoop in and smack Worlds.com down hard.
Lateris said on 11:50AM 12-30-2008
The giant is waking from its slumber. Blizzard is going to spank these money grubbing con artists.
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Padishar said on 12:01PM 12-30-2008
This is sooo messed up.
That patent was filed nearly a decade AFTER MMO's were invented.
I believe this shows yet another flaw in how our patent system works. Hopefully this entire case gets thrown out.
FYI NeverWinter Nights, Meridian59, Ultima Online, Everquest and Asheron's Call were all out on the market before worlds.com decided to claim they invented the wheel...
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Jon Merriex said on 12:08PM 12-30-2008
Actually no this is not true.
The patent was filed in 1995 and 2000 respectively. UO and EQ where just getting off the ground then as was online gaming in general.
Jon Merriex said on 12:06PM 12-30-2008
I know a lot of people are looking at this as only MMOs, but these patents could technically be applied to console online games and even the console makers themselves. ANY online chat could be compromised as well (Vent, Skype, AIM, etc). The worst part is, if this is upheld, the World.com could go after the developers then the publishers then the distributors on the same title.
I am not an opponent of the patent system. I think a lot of people knock it but don't really understand it. I AM a huge opponent of seedy patents like these. The fact these got approved clearly show the lack of understanding and knowledge the General Patent Corp has (even in 1995 games like Warcraft II were using this kind of tech).
It will be interesting to see how this plays out.
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Tateru Nino said on 12:16PM 12-30-2008
This potentially applies to many server-client architectures, including some single-player games that I can think of that run connected server and client processes to handle an environment - and any client-server system that handles character or avatar positions.
Ilya Bossov said on 12:34PM 12-30-2008
1995? That's nice.
MUDs, MUXes and MUSHes have been around back in 1994.
Online chat was not invented by worlds.com. Sorry.
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solaris said on 1:33PM 12-30-2008
Doesn't matter who "invented" it, if you or someone else has a patent documented. It will be you who owns the idea or concept regardless, but I think (don't hold me to it though) if you do not pursue an infringement on your patent, you lose the right to make that claim when someone does infringement on your patent.
Ripper McGee said on 12:19AM 12-31-2008
Please note, the patents are specifically for a "three-dimensional graphical, multi-user, interactive virtual world system". MUDs, MUXes, MUSHes and MOOs aren't 3 dimensional (or even graphical, as the case may be).
Habitat wasn't 3D, nor was AOL's Neverwinter Nights (arguably, the first commercial graphical MMO). Meridian 59 is regarded as the first 3D MMO and it launched in September 1996. If Worlds.com/Worlds Inc. submitted a patent application in 1995, it was before the first 3D graphical MMO ever went live. That being said, the date of their initial patent application seems to be in November 1996, months after Meridian 59 went live.
On a side note, its an incredible coincidence that the patents include art of penguin avatars interacting in a virtual 3D space and the award given to video game pioneers by the Game Developers Conference used to be called the "First Penguin Award" (http://www.gamechoiceawards.com/archive/penguin.htm)
MfA said on 8:03AM 12-31-2008
What does it matter that it's for 3D?
Just adding "on the internet" or "in 3d" to something is not a patent worthy invention.
Palithras said on 8:01PM 3-11-2009
@Solaris: Not entirely true.
Under US Patent Law the "inventor" is the first to "invent and reduce to practice", not the "first to file" as it is in most other countries including those in Europe.
So if it could be shown that Meridian 59 was indeed live before Worlds.com filed their patent then MMO's win.
Of course that menas that the inventors of Meridian 59 could then sue everyone for patent infringement. But I think that as Massively said in a previous articale on this, the Laches doctrine may win out - worlds.com have willingly not claimed on this for many many years, and should not be entitled to any reimbursement for it - nor should anybody else.
Rich said on 2:03PM 12-30-2008
Be interesting to see if the Biliski decision will effect this. If it does, then World.com is hosed.
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Rm4g3dD0v said on 3:06PM 12-30-2008
Wellcome to the wonderful world of capitalism.
You know microsoft tried to register the patent of doubleclicking in order to force all software houses pay for anything that works with a doubleclick.
Now some con artist in 1995 that could see far in the future, patents something thats already been invented by someone else and then lets all gaming companies develop games using their patent for 14 years. Now, with the economic crisis they come claiming rights and compensation for patents they INTENTIONALLY let being infriged.
And you call this justice? Well, i suppose, since you voted for it...
You know, they re going to win, because it's a halter well placed and well tightened. And after this, gaming will remain to the past, and eventually wither. Now, why do that? Someone could say it's because the future young slaves must not have time for themselves. Welcome to capitalism slave!
Now let's make an MMO with this scenario!!! :P
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