For Immediate Release

SALT LAKE CITY, November 27, 2006—A recent out-of-court settlement between Apple Computer and the owner of Patent No. US 5,864,868 A, which covers the downloading of music and video, including the ability to play music and video on a device (technology essential to the iPod and other music and video technology), has landed Michael W. Starkweather, a patent attorney, in the national spotlight.

Starkweather is now commenting on the huge impact of Apple’s decision that affects “The future of the whole cell phone, iPod and PDA industry.  That’s the Billion Dollar Patent.”  Starkweather believes that this Patent has just overcome its first major legal victory.  “I believe that, with this Patent in hand, Apple will eventually be after every phone company, film maker, computer maker and video producer to pay royalties on every download of, not just music, but also movies and videos.” 

This Patent is considered by some to be one of the most important in years for the music industry, and in particular, Apple.  Since launching the iPod in 2001, iPod’s 3rd Qrt. ‘06 sales have accounted for 42 percent, or about $4 billion, of Apple’s record-breaking revenues.  If the Patent had landed in the hands of Apple’s competitors, it would have seriously threatened Apple.  Currently, the iTunes software, which is covered by the patent is the primary access point to Apple’s industry-leading iTunes Music Store.  This software is available in 19 countries where more than 450 million songs have been downloaded worldwide.  Apple's iTunes software has grown to serve an installed user-base of millions and is distributed free-of-charge through Apple's website as well as with each iPod sold.

Interestingly, Starkweather wrote the Patent in 1996 for a Vermont inventor who originally didn’t show much interest in patenting the idea, or to even understand the value of it.  The basic concept  consisted of a desktop computer holding multiple songs with an interface allowing a Marriott hotel guest to select three songs for a dollar and play them on an electric grand piano.  As a creative attorney, Starkweather saw the broader value of the idea and broke the Patent into three basic elements; remote music storage, selection of music to download and playing the music on a music playing device.  It was at that time that Starkweather realized that downloading movies were an obvious variation to downloading music.  It was just bits of data being manipulated in the same way.  “Sometimes it’s easy to break an invention down to its key components,” he says.  “That’s why patent writing is an art, not a science, and requires creativity.”

Starkweather began his distinguished career as a Patent Examiner in the United States Patent and Trademark Office (USPTO).  Starkweather has served as an in-house Patent Attorney for several major corporations, including Xerox Corporation, AT&T/NCR, Micron Semiconductor and IBM.  He also worked as the Chief Patent Counsel for the CTS Corporation.

Intellectual property (IP) portfolio management has been a major focus for Mr. Starkweather.  He has developed tools for executives to clearly “valuate” IP portfolios involving thousands of patents.  Those valuations have been used to negotiate hundred-million-dollar mergers, acquisitions and licensing deals.  With this portfolio view, he developed a corporate IP strategy for a major corporation that increased their patent portfolio by 844 percent in three years .

Starkweather has lectured about business and technology at Brigham Young University, taught law at the University of Phoenix and is currently teaching at the University of Utah on IP Valuation and Portfolio Management Strategies.  Additionally, he has taught many seminars in California and throughout the United States to thousands of Emerging Entrepreneurs about IP and its effect on business development.

Currently, Starkweather is practicing patent law in Salt Lake City at his law firm, Advantia Law Group, which he founded.  He is available for interviews on the recent settlement or in relation to corporate and patent law.