A small software developer, Charlotte, N.C.-based Scientigo, plans to seek royalties from the myriad companies that use the data-formatting standard XML, writes CNET. Scientigo owns two patents (No. 5,842,213 and No. 6,393,426) covering the transfer of "data in neutral forms," and it is asserting that they are being infringed by XML. Scientigo intends to "monetize" the intellectual property, according to CEO Doyal Bryant, who said that the company has had discussions with 47 companies regarding the patents, including Microsoft and Oracle. He said he is confident that software companies and large organizations such as Amazon.com that use XML will pay royalties.
But Scientigo will have a tough time extracting royalties according to Andrew Updegrove, a partner at Gesmer Updegrove and attorney for the standards body Organization for the Advancement of Structured Information Standards (OASIS).
"The world has learned that you don't mess with the internet, the web, or anything crucial to its operation. Mighty will be the hue and cry against any assertion of patents against XML in any kind of broad sense or even in any sense at all. There will be a call for re-examination of the patents, and there will also be refusals to license that will lead to litigation if the patent owner chooses to sue," Updegrove predicted.