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

Utah Governor Signs 'Porn Tax' and VPN Rule Into Law

Governor Spencer Cox on Friday signed into law a bill to tax adult websites and make them liable if minors circumvent geolocation.

BranditScan Launches 'White Glove' Subscription Tier

BranditScan has launched its new White Glove subscription tier for creators.

German Court: Regulator Can't Block Creator's IG Account, Only Posts

A German court has ruled that while a regional media regulatory agency may block specific Instagram posts that include material deemed harmful to minors, it cannot ban an entire Instagram account due to such a post.

Brazil Lays Out Preliminary Guidelines for New AV Requirements

President Luiz Inácio Lula da Silva on Wednesday signed a decree establishing guidelines for new regulations requiring adult websites to age-verify users located in Brazil.

Senate Committee Debates Section 230 Reform

The U.S. Senate Committee on Commerce, Science, and Transportation held a hearing Wednesday on potential changes to Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

Pearl Industry Network Offers Free Creator Memberships

Industry trade group Pearl Industry Network (PiN) has launched its free creator membership initiative.

Sam Bird Acquires Fanblast

Sam Bird, former co-director of global talent agency Surge, has acquired creator monetization tool Fanblast and named himself CEO.

'SheHerGirls' Launches Through Paysite.com

The braintrust behind PoleVixens has officially launched a new membership site, SheHerGirls, also through Paysite.com.

FTC Invites Public Comment on 'Click to Cancel' Rulemaking

The Federal Trade Commission (FTC) announced this week that it is seeking public comment on whether it should amend its Negative Option Rule to better address deceptive or unfair practices.

Aylo Rebuts Indiana AV Suit Claims Over VPN Access

Aylo this week asked a Marion Superior Court judge to dismiss Indiana’s lawsuit alleging that the company violated the state’s age verification law by failing to prevent access by users who employ VPNs and similar means to avoid geolocation.

Show More