Sirius, XM hit with another patent infringement lawsuit
Tags: 2, XM
The suit filed by Finisar Corporation against XM, Sirius and Satellite CD Radio, claims the companies violated a 1995 patent that utilizes high-bandwidth communications between the server and radio receivers. It also reduces the amount of two-way traffic between the receiver and the server, which further speeds transmission, and relies on a tiered system of transmission.
Finisar, which makes optical components and test equipment, claims they contacted XM and Sirius in 2005 about licensing its technology, but the satellite radio giants ignored the request.
Finisar is seeking damages, “enhanced” damages, and a permanent injunction.
If much of this sounds all too familiar, that's because Finisar filed a patent infringement lawsuit against DirecTV not too long ago. It's a lawsuit that they won last year, resulting in over $100 million awarded in damages (initially Finisar was awarded $78.9 million, but then the court tacked on an addition $25 million). The court also ordered DirecTV to pay a compulsory ongoing license fee to Finisar at the rate of $1.60 per set-top box throughout the duration of the patent, which expires in April 2012.
The Finisar v. DirecTV lawsuit appears to be the same patent in question that Finisar is suing XM and Sirius over (though I haven't been able to verify this at the time of posting).