Microsoft Sued Over JPEG-Related Patents

AUSTIN, Texas — Forgent Networks is suing Microsoft, alleging that the software giant is infringing the patent on Forgent’s still-image-compression technology by using the JPEG digital-image standard.

“If a company uses JPEG, they are using our patent,” said Michael Noonan, director of investor relations at Forgent. “We want [Microsoft] to pay a reasonable royalty for the technology they are using.”

The suit, filed in U.S. District Court through Forgent’s Compression Labs subsidiary, comes in response to another suit filed March 15 in which Microsoft asked a court to declare that use of JPEG is not infringing and to invalidate the patent in question.

The two companies had been negotiating a possible license agreement before Microsoft filed its claim in an apparent preemptive strike.

Noonan said his company prefers to reach an agreement but will “vigorously pursue” legal action if necessary.

“It’s unfortunate that, despite Microsoft’s recent inquiries about licensing the patent, they chose to file a lawsuit, leaving us no alternative but to assess infringement claims against it,” Forgent CEO Richard Snyder said.

In 2002, Forgent announced that it believed the technology used to compress still images in JPEG infringed on U.S. Patent 4,698,672, which it owns. The company immediately began seeking license agreements with all companies using JPEG and suing those with whom it was unable to reach agreements.

In April 2004 alone, Forgent sued 31 companies. It 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 $90 to $100 in licensing fees, including $16 million from Sony.

Some industry analysts believe the suit against Microsoft may be something of a Hail Mary move on Forgent’s part, since its patent expires in October.

In its own legal papers, Microsoft accused Forgent of “subverting the JPEG standard to extract millions of dollars in unwarranted profits.”

Copyright © 2026 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

California Governor Signs Bill Limiting CIPA Claims

Governor Gavin Newsom has signed into law a bill to narrow the scope of the California Invasion of Privacy Act (CIPA), to prevent abusive lawsuits targeting online businesses, including adult websites.

California Enacts Stricter UGC Rules for Adult Sites

Governor Gavin Newsom has signed into law a bill to impose tighter compliance standards for user-generated content (UGC) on adult websites accessible in California.

UK Aims to Begin Enforcing 'Choking' Ban Before Year's End

The U.K. will soon begin enforcement of a new law criminalizing depictions of “non-fatal strangulation” in adult content, according to a Ministry of Justice official.

XBIZ LA Conference Website Now Live, Registration Open

The event website for the XBIZ LA conference is now live, offering comprehensive information about the upcoming event, taking place Jan. 7-10 at the JW Marriott L.A. LIVE.

CrakRevenue Launches Mobile App for Real-Time Affiliate Alerts

CrakRevenue has launched Aff Companion, a mobile app that sends affiliates real-time notifications about clicks, conversions, and revenue.

Goddess Lilith Launches New Official Website Through PAYSITE

Goddess Lilith has rolled out her new official site, QueenGoddessLilith, through PAYSITE.

Pineapple Support to Host 'Reclaiming Intimacy' Support Group

Pineapple Support is hosting a free online support group for performers with trauma-impacted intimacy issues.

Ofcom Cites Web Prime, Porntrex for Alleged AV Violations

U.K. media regulator Ofcom on Tuesday notified two operators of adult websites of the agency’s provisional determination that the companies have failed to comply with provisions of the Online Safety Act.

FSC: Utah Excise Tax on Adult Content Goes Into Effect October 1

The Free Speech Coalition (FSC) has issued an advisory that the Utah Excise Tax goes into effect tomorrow.

Segpay Parent Company Names David Press to Board

Segpay parent company Toccata Inc. has named payment industry veteran David Press to its board of directors.

Show More