nCUBE Wins VOD Patent Infringement Lawsuit

A Delaware District Court jury has ruled that SeaChange International infringed on a patent for VOD delivery technology owned by nCUBE Corp. The jury ordered SeaChange to pay nCUBE over $2 million dollars in damages and a 7-percent royalty on all sales of infringing products after February 1, 2002.

nCUBE filed the lawsuit on January 8, 2001, alleging that SeaChange's ITV System infringed on its US Patent 5,805,804, issued in 1998.

The patent concerns video server architecture designed for VOD delivery. The architecture allows the server to provide scalable video services to all service providers, while requiring minimal changes to the server to make it compatible with providers' existing systems.

SeaChange, which will appeal, said "the verdict will not materially affect the marketing and performance of our VOD system. A jury in a previous Delaware case found that nCUBE infringed on SeaChange's U.S. Patent 5,862,312 relating to its MediaCluster Technology. A separate trial to determine damages from that case is pending.