Introduction

I will start quoting, MultiChannel article that describes the genesis of this dispute..

Stingray and Music Choice have a long history. In 2015, Music Choice sued Stingray for patent infringement after AT&T U-verse dropped Music Choice in favor of the Canadian company. Music Choice had claimed that Stingray’s service included digital audio music and video-on-demand features that infringed on its patents, features that Stingray enhanced after getting access to confidential information during talks about possibly buying Music Choice in 2015. Stingray counter-sued, asserting “claims of unfair competition, defamation, trade libel, tortious interference with existing and prospective contractual relationships, and unfair competition.” (Source: Multichannel)

It was very interesting that in 2017, Stingray made a $120M offer to Music Choice, that was, rejected, not publicly, simply ignored. The offer was sweet basically no strings attached, and likely this case in dispute completely dismissed.

“Canadian digital and music video company Stingray Digital Group said it has made an unsolicited offer to purchase pay TV stalwart Music Choice for $120 million. (Id) “

As  consequence of this lawsuit, multiple other litigation steps have followed this case: IPR,  Counter Claims, Daubert challenges, and much more. I have been tracking this case I have a portfolio in the same are as “Music Choice” & “Stingray Digital”

Now all my observations resulted accurate, and in other words, the analysis of this cases that I made in 2017 is now a reality.

In summary, I concluded, and you can confirm at [1]. [2]. [3]. and at edwinhernandez.com  that:

• ♠ Stingray IPRs was not going to be super successful, as the PTAB judges were not fully convinced with the arguments.
• ♠ I still believe that Music Choice’s slashed patents by PTAB might have some light in appeal.
• ♠ Damages Report, challenged by Stingray, with a multi-million dollar award was going to be accepted by the court
• ♠ Alice defenses were futile by Stingray
• ♠ Trial was going to be conducted and all other defenses denied

Now this case is scheduled for trial  Dec 9th, 2019 in Marshall, TX.

Opinions

Several rulings have gone unfavorable to Stingray Digital, which includes adoption of the Magistrate judge opinions followed by  an order denying the Daubert challenge made to Dr. Keith Ugone. What this means is that Mr. Ugone’s damages report is safe and sound, in other words the damages expert, Dr. Ugon representing Music Choice,  will be able to tell the jury his story about this case.

Clearly, this was a big reverse to Stingray ,specially when Dr. Ugone has testified that a “non-infringing alternative” presented by Stingray was not suitable and hence, the damages model was at least $23M from the numbers released in a court ruling.

Dr. Ugone’s testified that in absence of a non-infringement alternative, loss profits need to be used to compute damages, instead of a reasonable royalty. Assuming $23M in loss profits, that means revenues could have been $75M. If, an expert applies a royalty of 10% that’s $7M and 1%, 700k in reasonable royalties.  Potentially saving $23M in loss profits, or even higher at $75M for treble damages, if the judge considers necessary to punish Stingray.

As you know, already, I completely disagree as my patents when in use in Cable TV systems are a non-infringing alternative to Music Choice’s.

 For that reason and the other reasons stated within the Order, the Court agrees with the conclusion reached within the Order. The Magistrate Judge’s Recommendation is therefore ADOPTED. 

On second adverse ruling, Judge Payne has provided to Judge Gilstrap its report and recommendations regarding the Alice challenge that Stingray has made against Music Choice, Inc patents. The adverse ruling indicates that as a matter of law, Alice Step One, fails and there is no need to conduct any further steps,

The Court concludes that each of the remaining asserted claims are not directed to an abstract idea at Alice Step One. Because the Court resolves the Alice inquiry at Step One, the Court need not proceed to Alice Step Two. Thus, the Court recommends that Music Choice’s cross-motion be GRANTED and that Stingray’s motion for judgment on the pleadings be DENIED. 

As jury selection is due December 9th, 2019, clearly Stingray has a low chance of surviving a trial, and in my opinion, Stingray has increase its chances to be found guilty of infringement and pay a hefty amount, likely a multi-million dollar judgment and a potential injunction relief favorable to stingray.

What will happen?

Stingray digital has to find a way to now settle this case or, maybe even better, Stingay can discuss a way to present a license to my patents and technology. My patents and technologiss are clearly as a non-infringing alternative to Music Choice, and my patents are new, and will last for a longer time as a protection.

Either way, this is not good to be in this position for Stingray.

Stingray could take a license to my portfolio and present it to Music Choice and the court, and avoid all infringement claims.

Besides that, Stingray Digital made an offer for $120M to purchase Music Choice, and Music Choice rejected the offer, risked a trial and now their position has been getting more solid day after day.  I would assume that it will have to make an offer around that to settle? That means that Stingray’s revenues in the US, which totals $9M per Quarter or $36M/year are now at risk.

The current damages report shows a $23M loss profits made by Music Choice as of this date, however a full report is only REDACTED and unavailable to the public.

 

“Revenues in the United States increased 12.2% to $9.4 million (12.9% of total revenues) and in Other Countries, revenues increased by 31.3% to $16.1 million (22.1% of total revenues)” (Source: Globenewswire).

Greenberg and Trauig is defending Stingray and Dechert Law, LLP is Music Choice’s plaintiff.

Licensing of My Patent Portfolio

There are several ways to find out about my portfolio of patents and software implementation, you can contact me via email to sales@eglacorp.com or call me.   My innovations are covered by US Patents 10,123,074 and 10,524,002 and other continuation patents, including European Patent filings, plus the technology and software platform:

• First,  this site contains some of that information  and clicking under  Patent Portfolio and  MVPD Licensing
• Or visit cloudtocable.com for additional information on the technology or the portfolio
• or Eglacomm.net search “CloudtoCable” or Patents

Cloud to Cable TV is the platform that makes it easy to send music channels, video channels, video on demand, and any other multimedia streaming content to millions of subscribers.  Cloud to Cable enables a friendly distribution system for media owners, content providers, to subscribers in IPTV, Cable TV, OTT, or even satellite operators.

We have developed a technology that sim greatly simplifies multimedia delivery of deliver music & TV content to cable operators and mobile devices, all in one-stop shop. Upload your content to our online drive or cloud storage, and get ready for distribution and monetization.;

Our intellectual property portfolio includes the following assets:

• US patents
• European patents
• Software and trade secrets

Our patented innovative technology is called:    CLOUD to CABLE

In essence, cloud to cable brings value by bringing to you, an easy way to do:

• Music broadcasting to Operators, mobile, IPTV, cable TV, or even satellite,
• Modern virtualization and cloud technologies integrated into our software,
• Broadcasting with fault-tolerance, ready for high-reliability, and great quality of service.
• Parallel transcoding meaning you can deliver 5, 10, 50, even 100 music or TV channels depending on the hardware chosen, number of instances, and bandwidth purchased from us,
• Web-based approach, yes all is web-based, no funky DIGICIPHER II, MPEG TS, or any of that, all if works on the web, works with Cable TV, Satellite, all and all.
• Interactive and VOD integration
• TV & Music all in one Platform

PDF file with our presentation slide deck:

Patent Issued for One of Our Media Streaming Technologies

Ted Deutch – Boca’s Congress Representative on HR.6557 – Inventors Protection Act

Music for Cable and Music for IPTV

Powered by CLOUD TO CABLE

Music for Cable and Music for IPTV ara part of the sites being relaunched for lead generation for “Cloud to Cable TV” and Music as a Service offerings for operators.   Music for MVPD and Operators is available for licensing

Sites Relaunched: cloudtocable.com, cloudforcable.com, musicforcable.com and ubiquicast.com

Music Choice vs Stingray Digital – Case 2:16-cv-586-JRG-RSP

 vs. 

Music Choice vs Stingray is a case taking place in the E.D. of Texas.  We will discuss in the article, the judge’s order (Judge Roy Payne) and memorandum regarding all the claims terms and its construction. As expected, the judge went for:

“[C]laims ‘must be read in view of the specification, of which they are a part.’” Id. (quoting Markman v. Westview Instruments, Inc., 52 F.3d 967, 979 (Fed. Cir. 1995) (en banc)). “[T]he specification ‘is always highly relevant to the claim construction analysis.

[spiderpowa-pdf src=”http://edwinhernandez.com/wp-content/uploads/2017/07/Music_Choice_v_Stingray_Digital_Group_Inc__txedce-16-00586__0145.0.pdf”]Music_Choice_v_Stingray_Digital_Group_Inc__txedce-16-00586__0145.0

As shown, in all cases where Music Choice made a simple term definition, Judge Payne went for the simplest and more appropriate meaning to the words. Music Choice won pretty much all terms in their favor and in all “indefinite” arguments did not move an inch in favor of Stingray. Hence the judge also sided with Music Choice’s arguments and claim construction. For instance:

• What was the goal on trying to interpret a Cable TV system as it if was not a digital system? I don’t really understand why Greenberg did not agree to this simple term?  And the judge sided with Music Choice: “Accordingly, the Court rejects Defendants’ proposed “not a digital network” and “signal” limitations and determines the transmission-system terms have their plain and ordinary meaning without the need for further construction.”   The claim recites a first transmission and a second transmission system,
• The same thing with “multicast,” this is a well-known term in all Cable TV systems, where multicasting is used to transmit all Linear TV signals. “Accordingly, the Court rejects Defendants’ proposed “not a digital network” and “signal” limitations and determines the transmission-system terms have their plain and ordinary meaning without the need for further construction.”
• A very similar analysis is found with the term “trigger message” where the judge sided with the same simple meaning as follows:” Accordingly, the Court construes “trigger message” as follows: “trigger message” means “message configured to initiate an action”
• And you can find a very similar argument for most of the terms in dispute.

All the evidence is sealed and there is no way to see exactly how these terms match the device in dispute, however, Music Choice’s attorneys should be prepared and if those terms were favorable to them, now one can asume that their evidence to match these terms is solid.

We will keep track on this case and how this develops, on a different note, Music Choice also got hit by Stingray with several IPRs:

Music Choice then has to defend the following IPR cases filed by Stingray Digital regarding this particular case:

• Trial Number – IPR2017-01450
  Filing Date – 5/18/2017
  Patent # – 9,414,121
  Title – SYSTEMS AND METHODS FOR PROVIDING AN ON-DEMAND ENTERTAINMENT SERVICE
  Patent Owner –  MUSIC CHOICE
  Petitioner – Stingray Digital Group Inc.
  Tech Center – 2400
• Trial Number – IPR2017-01192
  Filing Date – 3/31/2017
  Patent # – 8,769,602
  Title – SYSTEM AND METHOD FOR PROVIDING AN INTERACTIVE, VISUAL COMPLEMENT TO AN AUDIO PROGRAM
  Patent Owner –  MUSIC CHOICE
  Petitioner – Stingray Digital Group Inc.
  Tech Center – 2400
• Trial Number – IPR2017-01191
  Filing Date – 3/30/2017
  Patent # – 9,351,045
  Title – SYSTEMS AND METHODS FOR PROVIDING A BROADCAST ENTERTAINMENT SERVICE AND AN ON-DEMAND ENTERTAINMENT SERVICE
  Patent Owner –  MUSIC CHOICE
  Petitioner – Stingray Digital Group Inc.
  Tech Center – 2400
• And maybe others http://www.gbpatent.com/content/uploads/IPR.pdf

For example we found:  http://ptolitigationcenter.com/2017/05/pto-litigation-report-may-19-2017/

Disclosure: EGLA, which I own, provided a platform for DMX for digital music distribution. Stingray acquired DMX Music but not our technology and kept its own music delivery system, the infringing system now. However, EGLA owns a patented technology that is called “CLOUD to CABLE TV“ that enables delivery of linear music channels to Cable TV subscribers in a more clever, fault-tolerant, and efficient way than these patents disputed here. Source: http://edwinhernandez.com/2016/08/01/platform-nternet-tv-music/

https://www.slideshare.net/edwinhm/egla-communications-cloud-to-cable-tv-licensing-proposal?qid=9a8ef586-78a7-45a5-b02f-fc6ad1e0a95a&v=&b=&from_search=1

and,

Patent for the Cloud to Cable TV – WIPO Format

EGLA CORP has a patented technology, superior to all the patented technologies out there, that brings the Cloud -based systems and generated images for music and TV channels that can be overlapped.  The Cloud to Cable TV system provides:

• A system to convert HTML5 to Video, MPEG-4 or MPEG2Video, or H.265
• A fault-tolerant system for MVPD and MSO’s – Cable TV Systems
• Streaming for M3U8, HTTP Streaming, and compatible with other technologies
• Virtualized TV in a box system with Cloud

The device is called MediaPlug and also contains other Management APIs, as well as a good implementation tested with:

• Cisco
• Ericsson
• Huawei
• and Many other multi-plexers

Advantages over all other systems

There is no dependency into any Set Top Box or DOCSIS 2.0, DOCSIS 3.0, or other MPEG frames or dependencies in changes to STB.

All the systems, are fault-tolerant and enable great reliability and remote management system for all distribution devices

Uses standard DSL/Cable Modem technologies with the system to deliver 50, 100, 200 music channels, and 10-20 HD/SD/4K TV Channels.

Many more advantages that are benefit DRM security, provisioning, and tracking for media playback.