In a decision that could have had an unheralded effect on the Voice over IP (VoIP) industry, especially as it pertains to cable providers’ VoIP offerings, the United States District Court for the Eastern District of Texas ruled in favor of Comcast (News - Alert) Cable in a suit brought by Caritas Technologies.

Caritas Technologies, formed by four men, including David Farber, who many consider the grandfather Internet, was awarded a series of VoIP-related patents. One, in particular, Caritas claimed could be read to include calls that were made partly using VoIP connections and partly across the PSTN (public switched telephone network). Essentially, Caritas was claiming to have invented to capability to connect calls running partially on the PSTN and partially on IP networks, explained Daralyn Durie, attorney at Keker & Van Nest, LLP, representing Comcast in the case.

In the suit, whereby Caritas sought to end the Comcast Digital Voice (CDV) VoIP service offering, Caritas alleged that CDV infringed on Caritas’ patent rights, and in a claim construction hearing on July 31, the main issue was the term, “telephone connection in a telephone network.” Comcast held that the patent owned by Caritas was intended as a way to set up conference calls on the PSTN, not a way to have actual voice signals transmitted over an IP network. Caritas, conversely, argued that their patent could be interpreted to cover these hybrid PSTN/VoIP calls.

The court subsequently issued a ruling in accordance with Comcast’s stance, asserting that the term, “telephone connection in a telephone network,” means a circuit-switched connection between telephones.

“So, because, CDV doesn’t have circuit-switched connections that go from one phone to another, the [plaintiff] stipulated to a judgment of non-infringement based on that claim construction ruling,” said Durie. “Yesterday, the court entered judgment in Comcast’s favor.”

Caritas sought a settlement of $2.2 billion in the suit, and most knowledgeable observers would have expected a victory. Indeed, according to a recent New York Times report, 78 percent of decisions in the Eastern District of Texas are for the plaintiff (19% higher than the national average).

The only comment Comcast offered was through a company spokesperson: “We’re very pleased that the Court agreed with our position that Caritas’ patent had nothing to do with Comcast’s Digital Voice service.”

Durie explained that it is common for companies moving into new areas of service — such as cablecos adding voice to their offerings — to draw attention, and often face lawsuits in the process. She added that patent owners regularly look for new ways to interpret their patents in an effort to benefit from new products and services on the market. This case, in particular, had it been decided in favor of Caritas, would have had a far reaching impact on the VoIP and cable industries.

Had this case gone against Comcast, it would certainly have been applicable to all calls to PSTN numbers made by not only CDV customers, but it could certainly have been extended to VoIP services offered by other cablecos nationwide as well. The financial impact on the service providers would, at best, have been disruptive, and would also likely have put them at a significant disadvantage in their current battle with incumbent telephony providers. While this is not going to signify the end of the lawsuits against cable companies, it is certainly a notable victory.

---------

Erik Linask is Associate Editor of INTERNET TELEPHONY. Most recently, he was Managing Editor at Global Custodian, an international securities services publication. To see more of his articles, please visit Erik Linask’s columnist page.