CUPERTINO, California--Audiohighway.com, which transmits music, books, news, and other information over the Internet, said it was awarded a patent for its portable digital audio player.
The patent, which the company applied for in 1995, covers any type of digital audio player used to store and play back downloaded content, regardless of the electronic format in which the content is saved, said David Politis, a spokesman for the company.
About 1 million of these players are expected to be sold this year, and the patent means Audiohighway "should be entitled to some sort of compensation for each player," Politis said. The company believes it will be able to "work out amicable [compensation] agreements with the parties out there working on these devices," he said.
Even at just $1 a unit, that compensation could be a big boost for Audiohighway, which had 1998 revenue of $139,000. More than 30 companies worldwide are shipping or have said they intend to ship portable digital audio players this year, and the market for such players could grow to 13 million units by 2002, Audiohighway said.
The patent "is especially important in light of the rapid growth in Internet usage," Nathan Schulhof, president and chief executive of the Cupertino, California-based company, said.
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