New patent risks for the web
Balthaser, a little known provider of next generation technology and design solutions for the Internet has successfully won the patent rights entitled to "Methods, Systems and Processes for the design and creation of rich-media applications via the Internet". The potential
implications of this seemingly inconsequential news become more apparent with the claim from its CEO and Chairman Neil Balthaser:
"the patent covers all rich media technology implementations including Flash, Flex, Java, Ajax and XAML and all device footprints which access Rich-Media Internet Applications including desktops, mobile devices, set-top boxes and video game consoles. Balthaser will be able
to provide licenses for almost any Rich-Media Internet Application across a broad range of devices and networks."
Players such as Microsoft, Adobe, Google, Yahoo to name but a few, are making significant investments in Rich Internet/Interactive technology.
Many are placing bets that this technology in conjunction with hand held device proliferation and embedded technology is the gateway to a market that sees a convergence between consumer, workplace and appliance interactions.
This is a defining market (not unlike the effect the PC had for Microsoft) and the bedrock of future software applications.
Researchers at Ovum highlight the lack of methodology and guidance in building rich media and interactive client applications and has urged the main players to join hands and concentrate on this as vital step forward. It is therefore inconceivable that such large players would take their eyes off theball and allow a relative underdog to sneak away with the goodies.
Ovum has not yet had a chance to examine the patent in full and understand fully the extent to which it covers the creation and deployment of rich media and interactive applications and what this might mean for the industry.
What it does signify is the growing issues over Intellectual Property and Patents within the IT industry and raises some important questions around what it is right to patent. There has been a string of high profile patent cases causing major headaches for leading vendors. More recently and one that is still playing out in the courts is NTP's patent action against Research In Motion (RIM, the makers of
blackberry devices allowing you to access emails and make phone calls through a dedicated hand-held device). The patent action brought
against RIM has already been upheld by the US courts. On the 24th of February, the courts will finally rule on the shutdown of BlackBerry
services in the USA. If this happens, it is a move that could result in grave financial and marketing consequences for the company in the
US. With such an action looming it is conceivable to predict a massive rush by the big plays to either fight the patent or purchase
Balthaser.
Either way a mouse with respects to Balthaser's size has roared and the consequences are unpredictable but important.
While Europe continues to prevaricate on bringing software patents laws inline with the US, Balthaser's patent awards, and its consequences
for leading players, demonstrates both the good and bad of software patents and gives us a good reason for careful deliberation before we follow the US's lead.
Bola Rotibi is an analyst at Ovum.com
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