AT&T Told to Pay $27.5 Million After Losing Two-Way Trial

AT&T Inc. (T) was told to pay $27.5 million for infringing a Colorado company’s patents for controlling how audio or video is streamed online.

AT&T’s U-verse TV services infringed two patents owned by Two-Way Media LLC, the federal jury in San Antonio said yesterday. The jury rejected Dallas-based AT&T’s efforts to have the patents deemed invalid.

The Two-Way patents cover live streaming technology as well as ways to record detailed usage data by customers, according to the company’s lawyers at Susman Godfrey. Boulder, Colorado-based Two-Way had sued Akamai Technologies Inc. and Limelight Networks Inc. (LLNW) over the same technology; those two companies settled.

“‘This was a very hard-fought case,’’ Parker Folse, a Seattle-based Susman lawyer representing Two-Way, said in a statement.

The trial focused on three Two-Way patents. The jury found U-Verse infringed two of them. AT&T said it would seek to have the verdict overturned.

‘‘While the verdict was a small fraction of what the plaintiff sought in this case, we will challenge the amount that was awarded,’’ Marty Richter, an AT&T spokesman, said in a statement.

The case is Two-Way Media LLC v. AT&T Inc., 09cv476, U.S. District Court for the Western District of Texas (San Antonio).

To contact the reporter on this story: Susan Decker in Washington at

To contact the editor responsible for this story: Bernard Kohn at

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