Satellite radio giants slapped with second lawsuit

By Ed Sperling, Editor in Chief -- Electronic News, 5/1/2007

Satellite radio giants XM and Sirius were slapped with their second patent infringement lawsuit in two months, this time over technology that schedules transmissions from computer databases.

Finisar filed suit in U.S. District Court for the Eastern District of Texas against XM, Sirius and Satellite CD Radio, claiming the companies violated a 1995 patent. Finisar, which makes optical components and test equipment, claims it contacted XM and Sirius in 2005 about licensing its technology, but the satellite radio giants ignored the request.

The technology uses high-bandwidth communication between the server and radio receivers, which was particularly unique back in 1995 when the patent was awarded to Finisar and its chairman and CTO, Frank Levinson. It also reduces the amount of two-way traffic between the receiver and the server, which further speeds transmission, and relies on a tiered system of transmission.

Finisar is seeking damages, “enhanced” damages, and a permanent injunction.

The suit comes on the heels of another patent suit against the satellite radio giants filed in early March, claiming that XM and Sirius were illegally using its technology for smoothly streaming audio.

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