Google is being sued by a small New York internet call company that claims to hold patents for the technology that enables voice calls to be made over the internet. The New York-based Rates Technology said it would probably seek damages of about $5bn. It alleges that the internet search engine has infringed its patents with the recently launched Google Talk.
Jerry Weinberger, chief executive of Rates Technology Inc (RTI), said he was the inventor of software programming that allows telephone calls to be placed over the Internet. Weinberger alleged that Google has abused two patented RTI software programs in Google Talk, which enables users to talk through a computer headset or to instant message each other for free.
RTI claims companies including Microsoft, Cisco, IBM, Yahoo and Lucent have made one-off payments for use of its patents and that the firm is in similar talks with Time Warner and eBay. It is in legal action with others. Google (Steve Langdon) said the suit was without merit.