Patent Office to Reexamine ‘JPEG Patent’

AUSTIN, Texas — The U.S. Patent and Trademark Office has agreed to review the validity of Forgent Network’s claim that one of its patent’s entitles it to royalties from companies that use the JPEG compression standard.

Forgent obtained U.S. Patent No. 4,698,672 in 1997 when it bought Compression Labs. In 2002, the company announced that it believed the patent covered the JPEG compression technique used by many PC and electronics makers and began suing and demanding licensing payments from companies that use JPEG technology.

Forgent has filed suit against 44 companies in all, including Apple, Dell, Hewlett-Packard and IBM, and negotiated usage agreements with 35 others. The company has received an estimated $105 million in licensing fees.

But a nonprofit group called the Public Patent Foundation filed a request last November asking the Patent Office to take a closer look at Forgent’s patent and submitted evidence that it said would prove Forgent has been fleecing companies out of millions of dollars in a “campaign of harassment” based on bogus intellectual property claims.

On Thursday, the Patent Office agreed to reexamine the patent.

“This is the first step towards ending the harm being caused to the public by Forgent Networks’ aggressive assertion of the patent,” Public Patent Foundation Executive Director Dan Ravicher said.

Mike Masnick, CEO of analysis site TechDirt, was less diplomatic in his enthusiasm about the prospect of the patent being ruled invalid.

“The patent in question had absolutely nothing to do with the eventual creation of JPEG image compression,” Masnick said. “[Forgent] made a bit of a stretch and said it covered JPEG compression and started suing everyone. You have a patent that obviously had nothing to do with the actual innovation, but was simply applied retroactively as a ‘lottery ticket’ to take money from those who actually did innovate.”

While he praised the Patent Office for reevaluating the patent, he also criticized it for routinely granting what he said are fraudulent patents and allowing companies to keep money collected on patents that are later invalidated through 3rd-party research.

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

FTC Weighs Reboot of 'Click to Cancel' Rulemaking Process

The Federal Trade Commission has invited public comments on a petition to renew trade regulation rulemaking concerning negative option plans, after a federal court previously vacated a “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions.

VRPorn.com Releases 2025 'Annual Report'

VRPorn.com has released its Annual Report, highlighting its audience favorites from throughout 2025.

MrPornGeek Launches 'Visibility Boost' System

MrPornGeek has launched a new visibility boost system.

New Federal Bills Aim to Repeal Section 230

Members of Congress this week introduced two bills calling for the repeal of Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

RM11 Joins Pineapple Support as Supporter-Level Sponsor

RM11 has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

Mark Spiegler Named XBIZ Talk Guest for 2026 LA Conference

XBIZ is pleased to announce that famed talent agent Mark Spiegler, impresario of the Spiegler Girls agency, will join an exclusive talk session at XBIZ 2026, the latest edition of North America’s largest adult industry conference, set to take place Jan. 12-15 at the Kimpton Everly Hotel in Hollywood.

Gataca Introduces Passkey Integration

Spain-based age verification provider Gataca has debuted its new passkey integration.

GloryPay Announces New Financial App

European fintech company GloryPay has announced the launch of its financial app for industry members.

Creator of Hentaied, Parasited Launches New Site 'MonsterPorn'

Romero Mr. Alien, the creator of Parasited and Hentaied, has launched new paysite MonsterPorn.com.

House of Lords Approves UK Plan to Outlaw 'Choking' Content

The House of Lords, the U.K.’s upper house of Parliament, has agreed to amendments to the pending Crime and Policing Bill that would make depicting “choking” in pornography illegal and designate it a “priority offense” under the Online Safety Act.

Show More