Here is the back and forth between Apple’s “expert" and BRST counsel. Does not end well for AAPL.

http://messages.finance.yahoo.com/Stocks...

And here are the facts they refer to.

One of the prime conclusions of Halpern, Apple’s expert, is the following:

“According to the claims, this faster-than-real-time transmission is achieved with "time compression."

His EXPERT REPORT is founded on the assumption that the “compression means” in the patent claims (“compression means, coupled to said input means, for compressing said audio/video source information”) is time compression.

He is wrong. Why? A close read of the ‘995 patent repeatedly states that the compression means being utilized in DATA compression:


1- “an improved audio/video recorder which maximizes a given storage capacity, through the use of a DATA compression technique.

2- “an audio/video recorder utilizing a DATA compression technique for efficient storage, transmission, and reception of a digitized audio/video program over telephone lines or by other external digital means”

3- “Compression of the digital DATA defining a video frame and the reverse process (decompression) are accomplished by compressor/decompressor 26.”

4- "In one optional embodiment, to further reduce the amount of memory required to store a program the compression algorithm can simply record DATA corresponding to only those pixels which change color from one frame to the next. This results in considerable memory space savings, since not all pixels change color each frame. Basing calculation upon 10% of the pixels changing from one frame to the next, it is estimated that memory requirements using this technique are cut by about 90%. It is also estimated that on the average, the CCITT Group IV algorithm can cut memory requirements by another 95%. Thus, if no DATA compression technique is used, it would take approximately 51.03 gigabytes to store a 2 hour movie, but using THE ABOVE [DATA] COMPRESSION TECHNIQUES, it is estimated that memory 13 will require only 250 megabytes."

5- Also, the audio DATA can be compressed with conventional algorithms, e.g., a Fibonacci delta compression algorithm.

And apparently The Judge in the Microsoft case agreed.

http://messages.finance.yahoo.com/Stocks...

From his Order:

"the definition of “time compression” contained in the patent [Haskell] was entirely immaterial to the issuance of the ‘705 patent."

I see the cider press looming dead ahead.