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Altnet Settles Music Industry Patent Infringement Case

SHERMAN OAKS, Calif.--May 15, 2006-- In 2004, Altnet, its parent company Brilliant Digital Entertainment, Inc., and Kinetech, Inc., a patent licensing company, launched a lawsuit in the U.S. District Court alleging patent infringements by the Recording Industry Association of America (RIAA), Loudeye Corp., Overpeer Inc., Media Sentry (now part of SafeNet) and a number of individuals.

Overpeer and Media Sentry were the companies that the music industry called upon to flood Kazaa and other peer to peer (P2P) systems with "spoofed," that is, fake files. It was alleged that these files were damaged or otherwise counterfeit and that the methods used to distribute them infringed two patents critical to P2P business.

The lawsuit was commenced after RIAA executives and other defendants were put on notice on a number of occasions in relation to the patents and their infringement.

Altnet, on behalf of the plaintiffs in this case, is pleased to announce that a settlement has been reached with the Loudeye and Overpeer companies.

Kevin Bermeister, CEO of Altnet and spokesperson for the plaintiffs, said, "We welcome this settlement as an important step toward the acknowledgement and recognition of the TrueName patents as a prerequisite to legitimate utilization and exploitation of P2P technology."

In a significant turn of events, Overpeer has admitted that its P2P interdiction activities infringed the TrueName patents in question, as alleged by plaintiffs. Both companies have further undertaken not to engage in those activities in future.

"It validates the position Altnet has held with regard to treatment of piracy occurring within P2P applications and establishes with clarity the underlying importance for Altnet to be considered an integral part of the future online entertainment industry," said Mr. Bermeister.

The settlement was filed in the Los Angeles District Court, and the case against the remaining defendants will continue with a trial likely in 2007.

The Speck Consulting Group has been engaged to manage the Altnet patent enforcement program.

Altnet, Inc.
Michael Speck,
+61 2 90047974
+61 408970161

© Brilliant Digital 2020

Protected by one or more of the following:
U.S. Patents 5978791, 6415280, 6928442, 7945539, 7945544, 7949662, 7802310, 8001096;
Japanese Patent No. 3865775. Patents Pending in the U.S. and other countries