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Arbitron Gets Agreement on PPM Patents

January 27 2009

Radio ratings giant Arbitron has reached separate agreements with Ipsos and The Media Audit regarding infringement of three US patents relating to its Portable People Meter (PPM). The deals mean the two firms will not compete with the PPM for at least three years.

Ipsos and The Media Audit had planned a US launch for their own 'Smart Cell Phone' radio ratings system, designed to monitor radio, TV, cable and Internet use through audio monitoring.

At the time it filed suit in 2006, Arbitron's then CEO Steve Morris said that his firm had to take action against companies that 'attempt to profit from our innovation'.

However, back in October 2008, Arbitron and The Media Audit entered into a settlement agreement in which the latter acknowledged that the three Arbitron US patents were valid and enforceable.

The Media Audit further agreed that until the expiration of all three Arbitron US patents, it would not make, use, sell, offer for sale, test, demonstrate, distribute, or otherwise engage in activities that potentially infringe the patents.

As a result, earlier this month Ipsos agreed to immediately suspend all efforts in the US related to commercialization, testing, and/or marketing of a portable electronics measurement system until at least January 13, 2012.

Phillip Beswick, EVP at The Media Audit, said of the agreement: 'It is our opinion that it is much more productive for us focus on helping radio in these challenging times, than to divert our energies to a legal dispute with another supplier.'

Arbitron also recently signed a legal settlement with New Jersey Attorney General Anne Milgram and New York Attorney General Andrew Cuomo to resolve concerns that its PPM undercounts the listening habits of minorities.

Separately, Arbitron announced last week that it will increase the sample target for cell-phone-only households in all PPM markets to 15% by year end 2010. In an interim step, the current target of 7.5% will be raised to 12.5% in PPM markets by year-end 2009.

Web sites: www.arbitron.com , www.ipsos.com , and www.themediaaudit.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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