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Dear Reader:

We wanted to let you know that, after nearly three years of operation on the World Wide Web, National Journal's Insider Update: The Telecom Act ceased publication as of January 1, 2008.

We took this step at a time when the National Journal Group is moving to increase technology coverage -- including reporting on telecommunications and broadcasting issues -- in several of its other publications. In particular, National Journal's CongressDaily -- our twice daily publication for Capitol Hill insiders -- will be adding staff in the coming weeks for this purpose.

CongressDaily will feature the kind of detailed coverage of telecom issues, both on Capitol Hill and at the Federal Communications Commission, that you are accustomed to seeing in Insider Update -- plus a lot more.

If you are interested in a trial subscription to CongressDaily, please call 800-424-2921 or e-mail us at memberships@nationaljournal.com. Thank you for your readership and support of Insider Update, and please don't hesitate to write to me at lpeck@nationaljournal.com if you have any questions or concerns.

With best regards,
Lou Peck Editor In Chief

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Firm That Beat BlackBerry Targets Telcos

By Andrew Noyes

(Wednesday, September 12) The patent-holding firm NTP, best known for its landmark lawsuit against the BlackBerry maker Research In Motion, quietly filed complaints last week against several of the nation's largest wireless carriers.

Virginia-based NTP sued AT&T, Sprint Nextel, T-Mobile and Verizon Communications for alleged patent infringement in the same Virginia federal court that heard the BlackBerry case. Ontario-based RIM settled that dispute with NTP for about $612.5 million last year.

NTP is now accusing the wireless firms of violating eight patents for e-mail services, including some that were detailed in NTP's case against RIM. In its filings, NTP asked the court for royalties based on sales of telephones, personal digital assistants and other devices capable of sending and receiving e-mail.

NTP's complaint against AT&T claims that it asserted its patents to the telecommunications giant in January 1999 and offered to license them but received "no substantive reply." Since then, AT&T has "continued to infringe the patents-in-suit, despite its knowledge of them and in reckless disregard for NTP's patent rights," NTP argues.

Hardware manufacturers whose devices are sold by AT&T have licensing deals with NTP, which "provide[s] further evidence that AT&T knowingly, recklessly and willfully infringes the patents-in-suit," NTP said. In addition to RIM, Visto, Nokia and Good Technology are licensees.

AT&T spokesman Dave Pacholczyk said the company has received the complaint but could not comment until it has been thoroughly reviewed. Rory Radding, a partner at Morrison & Foerster, simply said, "It looks like round two is beginning."

During the long-running RIM case, the BlackBerry producer filed a dozen requests for re-examination of NTP patents with the Patent and Trademark Office. In two cases, the agency rejected NTP's patent claims, but the firm appealed those decisions. The PTO's work is ongoing.

Gartner analyst Ken Dulaney said NTP is now "betting on the assumption" that those patents will be enforced. "RIM had to pay because they were in legal limbo. Those conditions no longer exist," he said. "If I were those carriers I would fight NTP."

In this instance, NTP may not be seeking as much money as they did in the BlackBerry case, so the carriers could settle, Dulaney said. "The bottom line is that NTP costs us all money, and that is not a good thing. The government needs to change the [patent] laws."

McDermott Will & Emery attorney Paul Devinsky predicted that the defendants would move for an immediate stay pending conclusion of the re-examination and that the stay would be granted.

He also suggested that NTP may be concerned that pending patent legislation on Capitol Hill would limit claims for past damages "and is seeking to be certain their damage claim is calculated under the current statute."


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