!062894 Hughes gets $144 million, wanted a billion



                   HUGHES GETS $144 MILLION, WANTED A BILLION

     For the past twenty years, Hughes Aircraft has been suing the US
government over satellite technology patents.  Some time ago, Hughes won
its patent infringement lawsuit, and sought a 15% royalty on billions of
dollars of government satellite activity, seeking about $5 billion. The
government argued that it only owed a "few" hundred million in its appeal,
with observers feeling that Hughes would end up with an ammount somewhere
in the middle of these figures, around $1 billion.

     Last Friday, a federal judge awarded Hughes $114 million, calculated
as a 1% royalty rate on $3.58 billion of government satellite activities
(the remainder being due to compound interest effects).  Lawyers for Hughes
are considering an appeal.

     The original patent was awarded to Hughes in 1973, and is based on
technology developed by an Hughes engineer, Donald Williams.  The invention
is the use of a single rocket nozzle to orient satellites properly just
before they are thrust into orbit.  The invention was important to using
geosynchronous satellite orbits, very important to the communications
industry.

     The argument between Hughes and the government (mainly NASA and the DoD)
revolved around just compensation.  While the government is free to use
patented technology on behalf of the public good, it owes the patent holder
just compensation.  Over twenty years, Hughes and the government went through
four trials and numerous appeals arguing over this issue (which is not a very
encouraging precedent for those familiar with the legal aspects of some of
the international treaties being proposed for mining the ocean floor).




Greg Aharonian
Internet Patent News Service