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InterTrust Alleges Patents Infringed by Microsoft Windows XP Activation/Anti-Piracy Features

(July 24, 2001)
InterTrust Technologies Corporation announced today that its second amended complaint in its lawsuit against Microsoft will add claims that Microsoft's "product activation"/anti-piracy technology infringes InterTrust patent claims.

The infringing technology is used in Microsoft's Windows XP, Office XP, and Visio 2002 software. The second amended complaint adds InterTrust's US Patent No. 5,940,504 (`504 patent) and Patent No. 5,920,861 ('861 patent), announced as being added to the litigation last week.

The `861 patent was issued to InterTrust in July 1999 and the `504 patent was acquired by InterTrust from Infologic Software Inc. later that year. InterTrust is seeking unspecified damages and an injunction to prohibit further infringement.

"Since our founding in 1990, InterTrust has focused on pioneering Digital Rights Management. We have invented a diverse array of technologies. These include both foundation security technologies and original combinations of security techniques for commerce automation," said Victor Shear, Chairman & CEO, InterTrust. "Although many people think of DRM solely in the context of selling music or other digital content online, DRM really is about - and InterTrust owns numerous patents concerning - the trusted management of digital events according to rules and/or authenticated user attributes. Our patented technologies are now finding use both in classic DRM scenarios and in many additional contexts."

"Over time, we have established a pattern of Microsoft's use of security, authentication, and authorization technologies implementing methods enabling network services that were long ago invented or acquired by InterTrust," said Ed Fish, President of InterTrust's MetaTrust Utility Division. "Microsoft's `product activation' technology prevents a user from continuing to use Windows XP unless the user has `activated' the software, meaning that the user has received electronic authorization. InterTrust anticipated these DRM processes many years ago and our issued and pending patents serve to protect our ingenuity and investment in them."

The lawsuit, originally filed on April 26, 2001 in the United States District Court for the Northern District of California, now contains four (4) InterTrust patents covering a wide variety of DRM technologies. The suit specifically addresses Microsoft's infringement of InterTrust property rights through sale and distribution of Microsoft application, server, and operating system products.

This includes components of Windows XP and Windows ME operating systems, and Office XP, Visio2002, Windows Media Player, Microsoft Reader, and Digital Asset Server products.

Over the past eleven years InterTrust has been the leading developer of basic DRM technology, and it continues to pioneer the DRM landscape today.

As the first company to devise a digital commerce network, branded the MetaTrust Utility, to help other businesses manage and protect their proprietary data, and as the first provider and principal inventor of peer-to-peer and rules-based rights management, InterTrust acts as a neutral third party to ensure e-commerce and enterprise security and rights management.

This ensures a secure, interoperable trust foundation for the Internet and among all forms of computing devices. InterTrust's more than 40 licensees and partners include Adobe, AOL/TimeWarner, BlockBuster, BMG Entertainment, Cirrus, Compaq, Digital World Services, Enron, Magex, Mercurix, Mitsubishi, Nokia, Philips, Samsung, Texas Instruments, Universal Music Group, and Wave Systems.

InterTrust's continuing inventive work has resulted to date in 21 issued US patents and more than 80 patents pending. InterTrust is dedicated to the development of DRM technology and the availability of an effective DRM environment. DRM is InterTrust's sole business focus.

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