In a landmark ruling, a federal jury awarded $105 million to Dallas technology company VidStream Inc. in a patent infringement case against X Corp., formerly known as Twitter. The lawsuit, filed in 2016, alleged that X willfully infringed on patents held by VidStream for technology that standardizes user-generated videos for distribution on various platforms.
The trial, which began on April 7 in Dallas, concluded with the jury finding X guilty of infringing on one of the two patents in question. Lawyers for VidStream had initially sought $632.6 million in damages. The jury deliberated for one full day before reaching their verdict.
VidStream’s technology involves standardizing user-generated videos and converting them to be usable across different networks including social media platforms, smartphone apps, and television. The lawsuit claimed that Twitter, through its video apps Vine and Periscope, used VidStream’s patented technology without permission.
The jury was presented with arguments from both sides during the trial. VidStream’s lead attorney, Bradley Caldwell, argued that Twitter intentionally ignored their patents, while X’s attorney, Sonal N. Mehta, claimed that Twitter’s engineers independently developed a similar technology that did not rely on VidStream’s patents.
VidStream, the successor-in-interest to Youtoo Technologies, acquired the patents in question after Youtoo filed for bankruptcy in 2017. The technology developed by Youtoo involves a server system that simplifies the transcoding of user-generated videos into different formats for distribution.
Despite claims of a potential partnership between the two companies, the deal fell through, leading to the legal battle. The jury ultimately sided with VidStream, awarding them $105 million in damages. This ruling sets a significant precedent in the realm of patent infringement cases and intellectual property rights.
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