E-Data to Pursue Enforcement of Patent on Distribution of Song Tracks in Europe

["Seth Johnson" <seth.johnson@realmeasures.dyndns.org>]

(Forwarded from Pho list.  They're trying to control access to 
individual tracks by means of their patent!  Will wonders never 
cease?  -- Seth)

-----Original Message-----
From: Paul Scaife <paul@recordoftheday.com>
Date: Mon, 13 Oct 2003 20:27:56 +0100
Subject: pho: E-Data Commences Litigation and Seeks Injunction Against 
Microsoft, Tiscali, and On Demand Distribution in Europe

http://www.stockworld.de/msg/572775.html

E-Data Commences Litigation and Seeks Injunction Against Microsoft, 
Tiscali, and On Demand Distribution in Europe

- New Litigation Follows Landmark Settlement -

PORT WASHINGTON, N.Y., Oct. 13 /PRNewswire-FirstCall/ -- E-Data
Corporation
(BULLETIN BOARD: EDTA) announced today that it has commenced 
litigation and is seeking an injunction against Microsoft Deutschland 
GmbH, a subsidiary of Microsoft Corporation , Tiscali GmbH, a 
subsidiary of Tiscali S.p.A (Milan Stock Exchange: TIS), and On Demand 
Distribution GmbH (OD2) in Germany (Court of Mannheim, Germany: 7 O 
353/03) for infringing upon its European 
patent EP 0 195 098 B-1, also known as "the Freeny patent." The OD2 
platform enables Tiscali Music Club customers to download individual 
music tracks for a fee using Microsoft's Windows Media Player and 
Digital Rights Management technology.

Bert Brodsky, chairman of E-Data Corporation stated, "Microsoft, 
Tiscali, and On Demand Distribution are in blatant violation of our 
patents by jointly enabling consumers across Europe the ability to 
download music tracks. The Freeny patent covers the downloading and 
recording of information, such as music, from a computer onto a 
tangible object, such as CDs, DVDs and MP3 players. As a result, we 
are seeking an injunction to prevent further violation of our 
intellectual property."

Mr. Brodsky added, "Microsoft, Tiscali and OD2 are working to build a 
service in Europe that would parallel iTunes Music Store, a successful 
music downloading service developed by Apple in the United States. 
However, these companies have not done their homework on patent rights 
before launching the service in Europe. We are confident in the scope 
of our patents as demonstrated by our favorable rulings in the U.S. 
Moreover, we are encouraged by our recent settlement with Satellite 
Newspapers, which reinforces the validity of our patents in Europe."

The company has engaged the services of Howrey Simon Arnold & White, 
MNP, an internationally renowned law firm, to initiate an aggressive 
new licensing and patent enforcement campaign in the 10 European Union 
countries where E-Data Corporation owns the rights to the Freeny 
patent. The company also has pending litigation against HMV Group 
[Kurs/Chart] (Patents County Court of
London, England; PAT03089) and a prior suit against On Demand 
Distribution in the United Kingdom (Patents County Court of London, 
England; PAT03089).

In the United States, E-Data has secured more than 30 domestic 
licenses and has received a favorable decision by the Court of Appeals 
for the Federal Circuit on November 6, 2000, supporting the scope of 
the company's patents.

About E-Data Corporation

E-Data Inc. [Kurs/Chart] (BULLETIN BOARD: EDTA) owns North American 
and European patents covering a specific system and method of 
distributing digital content over electronic and wireless networks. 
The Company believes that this patent is the basic building block of 
an emerging global market for information, music, books, films and 
other products digitally distributed through electronic systems, 
networks or kiosks, including the Internet. Under its business model, 
E-Data will seek to partner with companies in various markets to 
leverage its intellectual property rights by practicing as well as 
licensing its proprietary technology.

Forward Looking Statements

This press release contains forward-looking statements which involve 
known and unknown risks and uncertainties or other factors that may 
cause actual results, performance or achievements to be materially 
different from any future results, performance or achievements 
expressed or implied by such forward-looking statements. When used 
herein, the 
words "may," "could," "estimate," "believes," "anticipates," "thinks," 
"intends," "will be," "expects" and similar expressions identify 
forward-looking statements within the meaning of the Private 
Securities Litigation Reform Act of 1995. Prospective investors are 
cautioned that forward-looking statements are not guarantees of future 
performance. Actual events or results may differ from
the Company's expectations, which are subject to certain risks and 
uncertainties, including but not limited to protracted judicial 
proceedings, growth trends in e-commerce and the ability of the 
Company to finance its licensing and marketing activities.