For years, British Telecom says it tolerated the royalty-free use of a technology it patented in 1989, but recently it had a change of heart and decided it was time to collect.
Last week its lawyers sent out letters to the top Internet service providers in the United States, alerting them they'd best begin discussions for licensing the technology, referred to in BT's patent as "an information handling system in which information is derived from a computer at a remote point and transmitted via the public telephone network to terminal apparatus."
Translated from patent speak, BT explained, that means "hyperlink."
That's right, hyperlinks, the bits of coded, colored text on Web pages that connect them to other Web pages; the things you click on when you're surfing; the connective strands that hold together the World Wide Web.
British Telecom believes it has the patent for hyperlinks (patent No. 4,873,662). It wants to be paid.
"What we expect is that ISPs will do the decent thing and take licenses for our intellectual property that they're using," said Simon Craven, a spokesman for British Telecom. "We're looking for reasonable royalties on revenues that they're enjoying from our technology."
Earthlink, one the top U.S. ISPs, confirmed it had been contacted by BT about licensing hyperlinks, but declined comment pending legal review of BT's demand.
The average bloke with a Web page needn't fear a knock from a BT rep, the company said ("Clearly that would be nonsensical," a company official said).
BT instead will limit its licensing demands to deep-pocketed Net service providers ("You look to the places where the predominant revenues are flowing," Craven said).
Meanwhile, news of BT's patent claims, first published in a report by Agence France Press, touched off a firestorm of outrage online.
Tech-savvy posters at geek news forum Slashdot railed against BT for trying to enforce what they feel is an overly broad patent, while blasting the patent system for granting overly broad patents in the first place.
"This is absolutely amazing," fumed one poster. "Next thing we know, we will have people trying to reinforce patents on toilet paper, and more. When is this madness going to end?"
Other posters claimed that hyperlink technology existed in the 1960s, long before BT filed for its patent in 1980. Called "prior art" in legal-speak, that technology would invalidate BT's patent.
BT summarily rejects the claim of prior art. "Basically, we are the prior art on this," said Craven.
BT developed the technology itself in the 1970s, applied for it in 1980, and received it in 1989, he said.
It will be difficult to assess the validity of BT's patent claim without seeing the exact language of its licensing demand, patent attorneys said, but at least one thought it was odd that BT would wait 11 years to begin enforcing a patent so integral to the Web.
"It's going to take some study to see what this patent covers and doesn't cover," said Bob McAughan, a patent attorney for the law firm Howrey, Simon, Arnold & White. "But I certainly think that people should have some raised eyebrows about why it took them so long to figure out they had a patent that applied to the Internet."
"For some reason they've now all of a sudden decided they've got something. I'm not sure how much of this is profiteering, and how much is a legitimate issue."
By waiting so long to enforce its patent, BT has legally forsaken any claims to back royalties, although it hasn't given up claim to future payments.
And it's just possible that there might be future payments, said Carl Oppedahl, a patent attorney and partner at Oppedahl & Larson.
At first blush, the patent looks as though it might indeed cover computers connected to the Web by a standard modem and phone line, he said.
"It's very interesting. If a court upheld the patent, it would have profound effects on the Web," he said.
BT shrugs off the implications. It has lots of patents; it enforces lots of patents -- that's what companies with patents do.
"Really, it's all just in the course of business doing business," said Craven.
