REFILE-U.S. FTC reaches agreement with patent company
(Refiles to fix typographical error in 4th paragraph)
By Diane Bartz
WASHINGTON, Jan 23 (Reuters) - Negotiated Data Solutions LLC has reached an agreement with the Federal Trade Commission to honor a licensing fee on Ethernet technology used to run computer networks.
The patent for the technology was acquired by Negotiated Data, a small patent company, from National Semiconductor Corp. Ethernet was used as the industry standard after National pledged in 1994 to license it for $1,000.
The Federal Trade Commission said on Wednesday that Negotiated Data knew about the licensing pledge when it acquired the patent, but demanded higher royalties.
Reneging on the pledge allowed it to "increase the price of an Ethernet technology used by almost every American consumer who owns a computer," the FTC said in a statement.
Under the terms of the agreement, Negotiated Data will be barred from filing suit against companies using the patented technology unless it first offers a license at $1,000, the FTC said.
This is not the first time the FTC has taken on a company accused of taking advantage of patents that apply to standards. The FTC went after Rambus Inc (RMBS.O) when it allegedly failed to disclose patent applications to a semiconductor memory standard setting body. There will be a hearing in the decade- old case next month.
When technology is emerging, a standard setting body is convened to determine which version of any new product will be the standard and who owns relevant patents. (Editing by Andre Grenon)
