Navy Encryption IP Found Unenforceable In State Farm Row

By Matt Fair (June 14, 2012, 6:33 PM EDT) -- In a victory for State Farm Mutual Automobile Insurance Co., a California federal judge ruled Wednesday that a patent for U.S. Navy-invented computer encryption technology under exclusive license to Network Signatures Inc. was unenforceable because the patent had expired before the license was awarded.

U.S. District Judge James Selna ruled that a petition to the U.S. Patent and Trademark Office in 2004 to extend the life of the patent, which is owned by the Navy, had been submitted in bad faith and could not be honored. The petition was filed by by Metrix Services Inc., which transferred the license to NSI...

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