Personal Audio v. ACE Broadcasting Network [1]

In 1996, James Logan applied for a patent for an "an audio program and message distribution system in which a host system organizes and transmits program segments to client subscriber locations." This patent [2]-now held through Logan's company, Personal Audio-was issued in 2001, though the device described was never created. Logan applied for another patent, frequently referred to as the "podcast patent," in 2009. As issued in February 2012, this patent [3] (No. 8,112,504) described a similar audio program and message distribution system, modified and described in more detail to better reflect contemporary podcasting.

In the U.S. District Court for the Eastern District of Texas on January 7, 2013, Personal Audio filed a complaint [4] against ACE Broadcasting Network for infringement of its 2012 patent, No. 8,112,504. In the complaint, Personal Audio alleged that ACE Broadcasting infringed on the '504 patent by providing several podcasts, including "The Adam Carolla Show" podcast. Personal Audio argues that in these podcasts, ACE Broadcasting "uses servers, data storage and other Internet hardware and software in a manner that directly and literally infringes" the claim describing the apparatus for disseminating podcast episodes online. In the alternative, Personal Audio argued that even if ACE Broadcasting's podcasts were not literally infringing, patent infringment should still be found under the doctrine of equivalents.

Personal Audio amended its complaint [5] on May 10, 2013 to "name the correct entities with respect to patent infringement." Personal Audio's substantive arguments remained the same, while the named defendants were amended to include those parties Personal Audio believed responsible for "The Adam Corolla Show": Lotzi Digital, Inc. and a partnership including ACE Broadcasting.

On July 10, 2013, Lotzi Digital filed its answer [6], asserting no infringement, literal or otherwise. Among its defenses, Lotzi Digital argued that the '504 patent is invalid under Patent Act sections 101 (subject matter), 102 (novelty), 103 (obviousness), and/or 112 (disclosure and enablement). Under these same theories, Lotzi Digital counterclaimed for a declaration that the '504 patent is invalid. 

In response to this suit, the Electronic Frontier Foundation has started a campaign [7] to "save podcasting" and has partnered with Harvard's Cyberlaw Clinic to investigate the '504 patent, including research of prior art that may invalidate the patent.