Uniloc
Encyclopedia
Uniloc Corporation is a computer security
and copy protection
software company founded in Australia
in 1992 recognized as a pioneer in "try and buy" software distributed via magazines and preinstalled on new computers.
granted to the inventor Ric Richardson
who is also a principal in the Uniloc Company. The original patent application was dated late 1992 in Australia and granted in the USA in 1996 and covers a technology popularly known as product activation
, try and buy software and machine locking.
In 1993 Uniloc distributed "Try and Buy" versions of software for multiple publishers via a marketing agreement with IBM
. An initial success was the sale of thousands of copies of a software package (First Aid, developed by Cybermedia) distributed on the front cover of Windows Sources
magazine in 1994.
Later Uniloc worked with US magazine publisher Ziff Davis
to distribute unlockable versions of software on the front cover of their magazines including Windows Magazine.
In 1997 a US subsidiary was set up called Uniloc PC Preload to produce preloaded unlockable editions of popular software products on new PCs. Distribution agreements were executed with eMachines
and Toshiba
. Family PC magazine also produced two months of magazines featuring unlockable software from Uniloc PC Preload on the cover in 2000.
In 2003, Uniloc Corporation set up a US subsidiary called Uniloc USA, which operates out of Rhode Island
and Southern California
. The company is currently licensing its patented technology to software publishers and entertainment companies including Sega
.
Uniloc sued Microsoft in 2003 for violating its patent relating to technology designed to deter software piracy. In 2006, US District Judge William Smith ruled in favour of Microsoft, but an appeals court overturned his decision, saying there was a "genuine issue of material fact" and that he should not have ruled on the case without hearing from a jury.
On April 8, 2009 a Rhode Island jury found Microsoft had violated the patent and told Microsoft to pay Uniloc $388 million in damages. After this success, Uniloc filed new patent infringement suits against Sony America, McAfee, Activision, Quark, Borland Softward and Aspyr Media.
The decision against Microsoft was subsequently overturned on September 29, 2009 when Judge Smith "vacated" the jury's verdict and ruled in favour of Microsoft again, saying the jury "lacked a grasp of the issues before it and reached a finding without a legally sufficient basis". Uniloc appealed the judge's decision, alleging bias and in 2011 the guilty verdict was reinstated against Microsoft. The US Court of Appeals for the Federal Circuit said that instead of using the usual "25 per cent rule", the damage awards for infringement would need to be recalculated.
According to intellectual property lawyer Trevor Choy, the tech giants see Richardson as a "patent troll" who waits for a company to use a patented technology then litigates in order to extract royalties. Microsoft has made a vigorous defense because they would face lawsuits from thousands of mainly US based trolls if Uniloc wins. Choy concedes that Uniloc is much more commercially proactive than the trolls, nevertheless the view is still held.
Computer security
Computer security is a branch of computer technology known as information security as applied to computers and networks. The objective of computer security includes protection of information and property from theft, corruption, or natural disaster, while allowing the information and property to...
and copy protection
Copy protection
Copy protection, also known as content protection, copy obstruction, copy prevention and copy restriction, refer to techniques used for preventing the reproduction of software, films, music, and other media, usually for copyright reasons.- Terminology :Media corporations have always used the term...
software company founded in Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
in 1992 recognized as a pioneer in "try and buy" software distributed via magazines and preinstalled on new computers.
History
The Uniloc technology is based on a patentPatent
A patent is a form of intellectual property. It consists of a set of exclusive rights granted by a sovereign state to an inventor or their assignee for a limited period of time in exchange for the public disclosure of an invention....
granted to the inventor Ric Richardson
Ric Richardson
Ric Richardson is an Australian inventor. He is the holder of multiple granted patents including the Uniloc patent and the Logarex patent . Although he spent twelve years in California to promote and develop products produced by Uniloc, Richardson grew up in Sydney and currently resides just...
who is also a principal in the Uniloc Company. The original patent application was dated late 1992 in Australia and granted in the USA in 1996 and covers a technology popularly known as product activation
Product activation
Product activation is a license validation procedure required by some proprietary computer software programs. In one form, product activation refers to a method invented by Ric Richardson and patented by Uniloc where a software application hashes hardware serial numbers and an ID number specific...
, try and buy software and machine locking.
In 1993 Uniloc distributed "Try and Buy" versions of software for multiple publishers via a marketing agreement with IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
. An initial success was the sale of thousands of copies of a software package (First Aid, developed by Cybermedia) distributed on the front cover of Windows Sources
Windows Sources
Windows Sources was a magazine by ZDNet. It lasted from c. 1993 – c. 2001.-Staff:Patrick Norton ran the hardware reviews section. Carlos Carrillo was the Assistant Editor and ran the Shareware reviews section....
magazine in 1994.
Later Uniloc worked with US magazine publisher Ziff Davis
Ziff Davis
Ziff Davis Inc. is an American publisher and Internet company. It was founded in 1927 in Chicago by William B. Ziff, Sr. and Bernard G. Davis. Throughout most of its history, it was a publisher of hobbyist magazines, often ones devoted to expensive, advertiser-rich hobbies such as cars,...
to distribute unlockable versions of software on the front cover of their magazines including Windows Magazine.
In 1997 a US subsidiary was set up called Uniloc PC Preload to produce preloaded unlockable editions of popular software products on new PCs. Distribution agreements were executed with eMachines
EMachines
eMachines is a brand of entry level PCs, based in Irvine, California. eMachines employed about 135 employees and sold between 1 to 2 million computers each year before its purchase on January 30, 2004, by rival Gateway Computers...
and Toshiba
Toshiba
is a multinational electronics and electrical equipment corporation headquartered in Tokyo, Japan. It is a diversified manufacturer and marketer of electrical products, spanning information & communications equipment and systems, Internet-based solutions and services, electronic components and...
. Family PC magazine also produced two months of magazines featuring unlockable software from Uniloc PC Preload on the cover in 2000.
In 2003, Uniloc Corporation set up a US subsidiary called Uniloc USA, which operates out of Rhode Island
Rhode Island
The state of Rhode Island and Providence Plantations, more commonly referred to as Rhode Island , is a state in the New England region of the United States. It is the smallest U.S. state by area...
and Southern California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
. The company is currently licensing its patented technology to software publishers and entertainment companies including Sega
Sega
, usually styled as SEGA, is a multinational video game software developer and an arcade software and hardware development company headquartered in Ōta, Tokyo, Japan, with various offices around the world...
.
Patent Lawsuits
Uniloc has sued 73 companies over violating its patent. 25 of those companies have settled according to Uniloc.Uniloc sued Microsoft in 2003 for violating its patent relating to technology designed to deter software piracy. In 2006, US District Judge William Smith ruled in favour of Microsoft, but an appeals court overturned his decision, saying there was a "genuine issue of material fact" and that he should not have ruled on the case without hearing from a jury.
On April 8, 2009 a Rhode Island jury found Microsoft had violated the patent and told Microsoft to pay Uniloc $388 million in damages. After this success, Uniloc filed new patent infringement suits against Sony America, McAfee, Activision, Quark, Borland Softward and Aspyr Media.
The decision against Microsoft was subsequently overturned on September 29, 2009 when Judge Smith "vacated" the jury's verdict and ruled in favour of Microsoft again, saying the jury "lacked a grasp of the issues before it and reached a finding without a legally sufficient basis". Uniloc appealed the judge's decision, alleging bias and in 2011 the guilty verdict was reinstated against Microsoft. The US Court of Appeals for the Federal Circuit said that instead of using the usual "25 per cent rule", the damage awards for infringement would need to be recalculated.
According to intellectual property lawyer Trevor Choy, the tech giants see Richardson as a "patent troll" who waits for a company to use a patented technology then litigates in order to extract royalties. Microsoft has made a vigorous defense because they would face lawsuits from thousands of mainly US based trolls if Uniloc wins. Choy concedes that Uniloc is much more commercially proactive than the trolls, nevertheless the view is still held.