Press Release
February 23, 2004, Pittsburgh - SightSound Technologies Inc. announced today that it has reached a final settlement in its patent infringement litigation against CDnow and N2K.
In the settlement, CDnow and N2K acknowledged that the United States Patents 5,191,573; 5,675,734; and 5,966,440 are valid and enforceable, and paid SightSound Technologies US$3,300,000, without conceding infringement or other liability resulting from their prior activities in the music download business. A Final Order and Judgment on Consent in accordance with the settlement was entered by Chief Judge Donetta W. Ambrose of the United States District Court for the Western District of Pennsylvania on February 20, 2004.
William Wells of Kenyon & Kenyon, lead counsel for SightSound Technologies, commented on the outlook for SightSound. "Resolution of this dispute, after six years of vigorous litigation, is momentous. SightSound can now look forward with renewed strength to licensing those in the music and movie industry who seek to employ SightSound's patented technology in downloading digital music and movies over the Internet."
"When we made the world's first electronic sale of music downloads in 1995 and the first electronic sale of feature film downloads in 1999, we changed the way consumers access entertainment, and our patents gave us the power to change the business practices of an entire industry," said Scott Sander, SightSound Technologies President and CEO. "Our success today indicates that the industry has entered a new era of respect for intellectual property, both copyrights and patent rights."
SightSound was represented by Kenyon & Kenyon's William K. Wells, Jr., Brian S. Mudge, Mark M. Supko, partners in the Washington, DC office, Benjamin Hershkowitz, partner in the New York office, Clyde E. Findley, Jeffrey S. Gerchick, and R. Paul Zeineddin, associates in the Washington, DC office.