A federal jury in Dallas awarded $105 million to a technology company, VidStream Inc., in a patent infringement case against X Corp, formerly known as Twitter. The jury found that X willfully infringed on one of two patents owned by VidStream, which filed the lawsuit in 2016 seeking $632.6 million in damages.
The trial began in April before Chief Judge David C. Godbey of the Northern District of Texas. VidStream alleged that X used its patented technology to standardize user-generated videos across different platforms, including social media, smartphone apps, and television. X, however, argued that it developed a similar technology independently and did not infringe on VidStream’s patents.
VidStream’s attorney, Bradley Caldwell, accused Twitter of stealing Youtoo Technologies’ patented technology, while X’s attorney, Sonal N. Mehta, claimed that Twitter had the technology before the alleged infringement occurred. The lawsuit stemmed from failed partnership talks between the two companies, with Twitter eventually backing out due to differing visions for the technology.
Youtoo Technologies, the original patent holder, filed for bankruptcy in 2017, and VidStream acquired the patents as part of the liquidation. The technology in question involves a server system that standardizes user-generated videos for distribution on various networks by imposing predetermined constraints on the videos.
The case highlights the importance of patent protection in the tech industry and the potential risks of partnership negotiations. For more legal news, visit texaslawbook.net.
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