http://neohio.craintech.com/cgi-bin/article.pl?articleId=2416
Looking to profit from patent 4:59 AM Feb. 03, 2003 By JEFF STACKLIN Universities do it. So does the government and employment agencies. It is online testing, and it has become part of the lives of many people required by their employer or school to pass an exam. As of last week, Test Central Inc. in Cleveland owns the U.S. patent to conduct testing via the Internet and, in essence, owns the online testing business. It�s a market that exceeds $10 billion a year, according to a study the Gartner Inc. technology research and consulting firm performed for the company in 1999, said Test Central co-founder James F. Koehler. However, don�t look for the four-employee company based in the Buckley Building in Playhouse Square to pursue every university and business that sells tests over the Internet for �infringing� upon the sweeping patent, said CEO Jim Posch. Instead, Test Central plans to sell or license the patent to a large online testing company or consulting firm. Whoever buys or licenses the patent then can go after their competitors, Mr. Posch said. �We�re trying to find an organization that will get the most benefit out of (the patent),� Mr. Posch said. �They would be able to close the door on their competitors.� Although company officials say they have discussed an asking price for the patent, they would not disclose it publicly. Mr. Posch said the price and whether it�s an exclusive arrangement remains open for negotiation. Test Central was granted the patent, which covers �making a test and posting the test online�for potential test takers,� last Tuesday, Jan. 28. (Read about all the patents issued to local companies recently.) Charles Stack and John Anderson, the founders of the company, applied for the patent in February 1999. Mr. Stack also founded the Cleveland-based software company Flashline Inc. Attorney John J. Del Col, of the Cleveland law firm Renner, Otto, Boisselle & Sklar LLP, said the process to get the patent was �routine,� despite taking nearly four years. Now that Test Central has it, it is up to the company�s competitors to challenge the patent�s validity. �Under U.S. Patent law � any challenger must beat the burden of clear and convincing evidence to overturn a patent�s validity,� Mr. Del Col said. Mr. Koehler, a lawyer who manages the business practice group at Cleveland law firm Gallagher, Sharp, Fulton & Norman LPA, said patent litigation is extremely expensive and Test Central �can easily spend $1 million� defending a single infringement claim. �It makes sense to license the patent instead of trying to enforce it,� Mr. Koehler said. Besides, Test Central last summer changed its focus to the sale of online testing and survey-taking software from selling tests over the Internet. Even so, Mr. Posch said the company wants to offer its software and use of its �Test.com� domain name as part of the deal. Along with the patent, Mr. Posch and his colleagues say they have a tremendous asset. Test Central notified 400 potential buyers in December that it was pursuing and about to receive the patent, Mr. Posch said. Since then, about 20 companies have responded, he said. He declined to identify the potential suitors. �They really wanted to know how this impacts their businesses and who are these guys at Test Central,� Mr. Posch said of the companies that responded to the Test Central�s initial letters. �We�re trying to give them the impression that we want to work with them.� _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
