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E-Ink Holdings face patent lawsuit - could spell trouble for Amazon and the Kindle

Published on 11 February 2013 10:16 GMT by Frank

CTI (CopyTele Inc), a business that, in their own words, are experts in patent monetization filed a suit alleging theft of technology used in e-ink displays used on eReaders including the Kindle, Nook and Kobo.

The suit makes a claim that E Ink Holdings and AU Optronics Corp participated in an elaborate scheme to steal patented display technologies developed by CopyTele.

Robert Berman, CTI’s President and CEO stated, “This is a case about two, multi-billion dollar foreign companies, conspiring to steal valuable, patented technologies from a small U.S. company, with the intention of causing significant financial hardship so that CTI could not protect itself and fight back. When you consider the potential impact of CTI’s technologies on broad product categories currently dominated by AUO and E Ink such as displays for televisions, computers, tablets, and eReaders, it is not surprising that they would want these technologies. CTI now has the resources and expertise necessary to ensure that AUO and E Ink are held accountable for their transgressions.” Berman, who previously ran Acacia Research Corporation and has a successful track record of taking on large companies on behalf of small inventors, joined CTI as President and CEO in October.

Regardless of the outcome of the legal proceedings, in the short term the suit could cause severe problems for eReader manufacturers as both companies may have to cease products of screens until the lawsuit is resolved.

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