ADT Sued: Remote Monitoring Patent Lawsuit

Author: John Honovich, Published on Apr 14, 2011

A powerful IP licensing firm has sued ADT and a number of remote monitoring providers for patent infringement. The firm, Walker Digital, claims that ADT and other surveillance companies violate their patent for an 'Internet Surveillance System' that they originally filed in 1998.

Walker Digital is a powerful force in patent enforcement. They are the company behind the Priceline patent and claimed to have generated over $200 million USD in patent licensing for their hundreds of patents. Walker Digital also recently filed suits against Google, Groupon, Facebook, etc. in cases unrelated to their surveillance patents.

Remote monitoring is widely viewed as one of the next big things. ADT is one of the leading promoters of this service. Remote monitoring holds the promise of reducing expenditures on guards and providing a surveillance service with strong, clearly demonstrated ROI. Interestingly, remote monitoring also greatly benefits from video analytics for generating alerts. Analytics themselves are under attack from patent lawsuits (review the OV analytics lawsuit campaign).

The case was filed this week and also names publicly traded Iveda Solutions and retail provider Westec, among others. We will continue to update as the lawsuit makes its way through the court system.

UPDATE May 4, 2011: In the comments section, two industry veterans make the case that significant prior art exists that should invalidate the Walker Digital patents. Read the comments for full details.

Background

For details, we recommend reviewing the following:

The key claim made in the complaint is that these providers, including ADT, are 'making, using, importing, offering for sale and/or selling remote and Internet monitoring and surveillance products and services.' The complaint repeats this for each named defendant and for each patent cited.

The Patents

Looking at the 1998 patent, here are key clauses that might impact the surveillance industry:

  • Server use: Assumes the use of a central server: "a central server to manage remote monitoring tasks performed by users of a data network"; It's likely that all production remote monitoring services use a central server (or servers).
  • Payment required: Assumes payment for the service: the service "caus[es] a payment to be provided to the remote viewer, wherein the payment is in exchange for time the remote viewer spent viewing at least the image." This essentially eliminates all forms of self-monitoring. For example, if you have a VMS and are monitoring it from your home or phone, etc., this does not appear to be covered.
  • Self-Monitoring Excluded: Acknowledges that self-monitoring software existed before their patent application. They cite a few examples such as PriVID and Novex Canada. This is further indications that regular remote monitoring software is not threatened.
  • Key process: Here is the key process that they are claiming to have invented: "receiving a request from a user of a user device to monitor a remote location; determining a remote location to be monitored; enabling communication between a sensor at the remote location and the user device; and crediting value to the user for monitoring the remote location in accordance with an amount of time the user device has been in communication with the sensor for remote monitoring purposes." Most of this description describes today remote monitoring services very well.  One aspect that might be disputed is paying for an 'amount of time'. Many providers charge a flat rate per event. However, a court may judge that a flat rate falls under that meaning.
  • Public Monitoring application: An alternative "embodiment of the present invention is directed to a commerce-based system and method that enables members of the general public who have access to a data network such as the Internet to log on at any time and perform remote monitoring tasks for value." This would appear to directly target what InternetEyes is doing in the UK.

Initial Observations

A few observations from our initial review:

  • Traditional remote monitoring software and self-monitoring appear to be safe from this patent threat.
  • 'Regular' VSaaS providers are unlikely to be impacted as these companies generally provide no monitoring services. The provider stores and provides access but does not monitor or respond to particular events.
  • A number of fundamental remote monitoring processes are described in this process and could pose a threat to providers charging for remote monitoring.
  • The age of the patent (1998) is a cause for concern. That's fairly ancient in video surveillance terms and while there were certainly remote clients for DVRs whether any prior art exists of paid for remote monitoring services is questionable. Westec reports being founded in 1996 so they may use this to prove 'prior art'.
  • Walker is a sophisticated company with a track record in pursuing patent infringement cases. They cannot be dismissed as a 'crazy' patent troll.
  • We do not think this will present any serious long term harm to remote monitoring. Worst case, the providers will pay a license or royalty. Only a few have generated significant revenue in the past (e.g. Westec) so any damages should be minimal for most. For new providers, the overall business model of remote monitoring is healthy enough that adding licenses should not be significant.

Related Reports on Monitoring

Amazon Ring Alarm System Tested on Jul 16, 2018
Amazon Ring is going to hurt traditional dealers, and especially ADT, new IPVM test results of Ring's Alarm system underscore. IPVM found that...
Amazon Ring Partners With Rapid Response For $10 Monitoring on Jul 10, 2018
Amazon's Ring alarm system is using Rapid Response for monitoring, IPVM has confirmed in our testing. Amazon is arguably the most feared new...
Simplisafe Acquired At $1 Billion Valuation on Jun 29, 2018
Simplisafe, the competitor alarm monitoring companies historically most love to hate, has been acquired by a mega private equity firm for a $1...
OpenEye Apex VMS Tested on Jun 26, 2018
OpenEye is a US company, founded nearly 20 years ago. In the past few years, OpenEye has been one of a few VMS providers that have pivoted to being...
Axis Guardian - Cloud VMS And Alarm Monitoring - Released on Jun 19, 2018
Axis has struggled to deliver a cloud-based managed service video platform. Video service providers have utilized AVHS for over a decade, and have...
Amazon Ring Launches $10 Monthly Professional Alarm Monitoring on Jun 15, 2018
Amazon's Ring has announced an alarm system with 24/7 professional alarm monitoring for $10 per month, a fraction of the $30+ per month traditional...
China Public Video Surveillance Guide: From Skynet to Sharp Eyes on Jun 14, 2018
China is expanding its video surveillance network to achieve “100%” nationwide coverage by 2020, including facial recognition capabilities and a...
Stealth / UCIT - Remote Video Monitoring Provider Profile on May 18, 2018
Can 2 remote video monitoring companies, Stealth Monitoring from the US and UCIT from Canada combine to impact the market and compete in a changing...
IP Network Hardware for Surveillance Guide on May 02, 2018
Video surveillance systems depend on IP networking equipment. In this guide, we explain the key pieces of equipment and features, explaining where...
FLIR Launches Saros on May 01, 2018
Has FLIR solved the video intrusion / remote monitoring problem or have they created an overkill, overly expensive device? FLIR has launched...

Most Recent Industry Reports

Amazon Ring Alarm System Tested on Jul 16, 2018
Amazon Ring is going to hurt traditional dealers, and especially ADT, new IPVM test results of Ring's Alarm system underscore. IPVM found that...
Hikvision Wins Chinese Government Forced Facial Recognition Project Across 967 Mosques on Jul 16, 2018
Hikvision has won a Chinese government tender which requires that facial recognition cameras be set up at the entrance of every single mosque...
Installing Dome Cameras Indoors Guide on Jul 16, 2018
IPVM is producing the definitive series on installing surveillance cameras. This entry covers one of the most common scenarios - installing dome...
Security Sales Course Summer 2018 on Jul 13, 2018
Based on member's interest, IPVM is offering a security sales course this summer. Register Now - IPVM Security Sales Course Summer 2018 This...
US Tariffs Hit China Video Surveillance on Jul 13, 2018
Chinese video surveillance products avoided tariffs for the first two rounds. Now, in the third round, many video surveillance products will be...
Last Chance - July 2018 IP Networking Course on Jul 12, 2018
Registration ends today, Thursday. Register now. This is the only networking course designed specifically for video surveillance...
4 Most Difficult Camera Installs (Statistics) on Jul 12, 2018
Heavy housings, cumbersome brackets, heavy ladders required, and tricky field of view requirements will cause difficulties no matter the camera...
Axis Perimeter Defender Video Analytics Tested on Jul 12, 2018
Axis 'high security' video analytics offering is Perimeter Defender, OEMed / developed with Digital Barriers. But how good is Perimeter Defender?...
Hikvision Fights Ban - Claims 'Red Scare', Hires 14 Term Ex-Congressman on Jul 11, 2018
Hikvision is fighting back against the House Bill Ban of their products. Hikvision has hired one of the biggest lobbying firms, led by a 14 term...
Arecont Acquisition By Costar on Jul 11, 2018
Arecont Vision acquisition by Costar Technologies has been approved by the court, concluding the bankruptcy process triggered by Arecont's...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact