Apple and Burst.com have settled their patent dispute for $10 million USD after two years of litigation. The initial complaint was over four separate patents that covered transmission of compressed audio and video files that were used in iLife, iTunes, QuickTime and of course, the iPod. Given the digital media nature of the listed products, and the installed base (especially for the iPod) it seems like $10 million USD might be a bargain price.
“Under the agreement, Apple will pay Burst.com US$10 million and get access to Burst.com’s patent portfolio, with some exceptions, Burst.com said in a press release. Apple won’t have access to four of Burst.com’s current and pending patents, including three pending patents relating to digital video recorder (DVR) technology. Court costs, expenses and attorney’s fees will reduce the proceeds to Burst.com to $4.6 million.
Burst agreed not to sue Apple over current or pending DVR patents, Burst.com said.”
Given the publicity that Burst.com received over the law suit, maybe they should be paying Apple for the publicity the law suit generated.