Arbitron and Digimarc End Patent Dispute

US radio ratings giant Arbitron and secure identity solutions firm Digimarc have settled their dispute, begun last year, over technology developed by the latter to monitor broadcasts.

Digimarc's intellectual property portfolio includes digital watermarking and media identification and management solutions. Last summer, the firm claimed that technology used by Arbitron for its PPM (Portable People Meter) infringed Digimarc's patents.

Digimarc Chairman and CEO Bruce Davis sent a letter to Arbitron's then President and CEO, Michael Skarzynski, alleging that Arbitron's use of his firm's system infringed Digimarc patents, and that Arbitron required a license from his firm.

Arbitron responded by issuing a warrant in the District Court of Delaware, stating that the Digimarc patents were invalid.

But today, Digimarc has entered into a licensing arrangement with Arbitron, contingent upon the ratings firm paying a $4.5m fee by the end of March.

Once this fee is paid, Arbitron will receive a 'non-exclusive, worldwide, and irrevocable' license to a substantial portion of Digimarc's domestic and international patent portfolio (including related future and pending patent applications).

The arrangement provides Arbitron, its licensees and customers with various rights in Digimarc's technology, including the rights to use it to enhance the Arbitron PPM technology until the end of 2021, or until the last licensed Digimarc patent expires.

Arbitron and Digimarc have agreed that the legal action filed by Arbitron last year will be dismissed.

Web sites: www.arbitron.com and www.digimarc.com .