All lawsuits have been dropped by both sides. The companies will cross-license each others’ patent portfolios under undisclosed terms, which gives both companies an opportunity to save face. After three and a half years, higher education can move on. Left unresolved is the larger question of the role of patents in higher education, but that is at least as much a question for the universities as it is for the vendors.
For now, though, I’m just happy it’s over.
In other IMS news, Desire2Learn has announced that they are the first LMS provider to support BLTI, a specification designed to support plugging third-party tools into an LMS. According to the press release, here’s what’s included:
A couple of other platforms are following D2L on this road.
This is just the work that’s visible to the public. As is often the case with these things, (a) more work is going on behind the scenes, but (b) you should demand to see working code and a commitment to a supported release within a defined time frame before taking any statements of support by a vendor or project too seriously.
Kudos to Desire2Learn for taking the lead here.
I’m a little late on this one, but late last week the U.S. Court of Appeals denied Blackboard’s rehearing petition. Their only recourse now would be to appeal to the United States Supreme Court and hope that the court miraculously decides to hear their case. As a result, Blackboard will have to return roughly $3.3 million to Desire2Learn, wiping out 100% of the company’s earnings for 2008.
This does not mean that the litigation is over. Blackboard is still suing D2L in Canada for infringement of the original patent, and the company has been granted continuation patents (basically revised versions of the original patents) that they could assert.
There’s a blog post update from Desire2Learn on the latest back and forth between them and Blackboard over the patents. (Remember, there’s more than one patent now.) Here’s the latest, as near as I can follow it:
Oy.
You may recall that Blackboard originally won a judgment of $3.3 million from Desire2Learn in their lawsuit. The ruling from the Court of Appeals means that Blackboar will probably have to return that money—plus interest—to Desire2Learn, as Blackboard indicates in an 8-K SEC filing today. The filing says, in part, that Blackboard “expects to record one-time charges of approximately $3.5 million related to the reversal of the district court judgment” of which $3.3 million is the money they have to return and the extra $200K is presumably interest.
Now, here’s the thing. According to Blackboard’s 2008 10-K filing, their net income for that year was $2.8 million. If you subtract the $3.3 million in income that they are going to have to return to D2L from the $2.8 million net profit, it appears that Blackboard’s business actually lost $500K in 2008.
Update: Patently-O blogger Dennis Crouch has posted a legal analysis of the ruling in which he concludes, “Defendant Desire2Learn wins a complete victory (after a few million in attorney fees).”
Via Desire2Learn’s patent blog, we learn today that the U.S. Court of Appeals re-affirmed the invalidation of claims 1-35 and newly invalidated claims 36-38 of Blackboard’s original ‘138 patent. You may recall from my previous post that Blackboard was stalling in the USPTO because they thought their odds would be better in court. I haven’t read the opinion, but from D2L’s post, it appears to be pretty damaging to the patent in the U.S.—perhaps decisively so. Now, that doesn’t mean that Blackboard has exhausted its legal options by any means. There’s the continuation patent, the trade board fight, and the Canadian patent suit, to name a few of the remaining loose ends. But this is, once again, an opportunity for Blackboard to put this brand-damaging fight behind them by quitting the field.
