The Federal Court of Appeal (FCA) has upheld a lower court ruling in 2022 that found Videotron’s illico set top box platform did not violate patented technology claimed by U.S.-based Rovi, now known as Adeia Guides.
The FCA said in its August 6 decision that Rovi’s appeal was dismissed as “the Federal Court did not make a reviewable error in its obviousness analysis concerning the 870 Patent and the 344 Patent” — two of four patents at the centre of Rovi’s original patent infringement claims against Videotron involving interactive television program guide technology.
In its June 2022 ruling, the Federal Court had found Rovi’s patent claims are “invalid because they are either anticipated and/or obvious having regard to the prior art and common general knowledge of the skilled person.”
In a press release on Monday, Videotron said it welcomed the FCA decision upholding the Federal Court ruling.
“This Federal Court of Appeal ruling confirming the egregious nature of ROVI’s practices sends a message to tech companies that it’s time to stand up to these patent trolls, which demand outrageously expensive licenses for patents that are ultimately found to be invalid,” Pierre Karl Péladeau, president and CEO of Videotron parent company Quebecor, said in a statement.
“This type of tactic is a real problem for our economy. Bear in mind that the patent system was created to protect inventions and reward innovation. Quebecor and Videotron will continue to vigorously defend their interests, as we do in fighting piracy and counterfeiting,” Péladeau added.
The Federal Court had also previously dismissed Rovi’s similar case against Bell and Telus in October 2022.
In a separate August 6 decision, the FCA upheld the lower court’s ruling in favour of Bell and Telus, saying “the Federal Court did not make any reviewable errors in its obviousness analysis in respect of the 870 Patent or in its anticipation analysis concerning the 585 Patent.”
In a press release Monday, Adeia found a silver lining in the decision: “We are very pleased with the Court’s rulings on key issues that support our licensing practices in Canada and believe the Court’s decisions in both cases positively contribute to the evolving landscape of patent law in Canada,” Kevin Tanji, chief legal officer at Adeia, said in the release. “We look forward to pursuing our rights in light of these rulings in our second phase of cases against Videotron and Bell. We remain committed to protecting our intellectual property and will continue to seek market-based licenses with the Canadian Pay-TV operators that cover our innovations which have helped shape the digital entertainment landscape.”
“Although we didn’t achieve the full outcome we sought, we’re pleased with the Court’s guidance on key patent-related issues in both the Videotron and Bell/Telus rulings,” added Keith Jones, chief financial officer at Adeia, in the release. “Importantly, these decisions do not affect our 2024 guidance and we continue to believe we have a significant opportunity in Canada.”
