In the past year, some NAB member radio stations have received letters from a company called Mission Abstract Data (MAD), L.L.C., (also doing business as Digimedia). These letters claim that the radio station owes MAD licensing fees for use of a patent, owned by MAD, that relate “to systems and methods for a programmable digital audio system for radio stations where the music is stored in a digital database from which it is recalled pursuant to prior programming of the operation of the radio station.” The letters provide information about the patents, and a license agreement with a chart and payment schedule for license.

If you receive a letter from MAD, you may want to consider the following:

• Check with your own station’s counsel regarding the letter. Share the information contained in the news/resource links below with your counsel regarding this matter.
• You should also contact the company from which you purchased the hard drive/playback system that you use. More likely than not, the company will be familiar with MAD and may offer some guidance or service.
• Check with your insurance carrier as to whether your insurance coverage provides for these types of incidents.

At the present time, there is litigation taking place between MAD and a number of radio broadcasting companies. The radio broadcasting companies are challenging the validity of the patents. Further, the patents owned by MAD are being re-examined by the U.S. Patent Office. For more information on the litigation and the reexamination of the patents in question, please see the various articles and court documents provided in the links below.

http://www.rwonline.com/article/broadcasters-win-a-delay-in-hard-disk-automation-suit/24822

http://www.rwonline.com/TabId/64/Default.aspx?ArticleId=24810

http://radiomagonline.com/currents/news/patent-office-dismisses-mission-abstract-data-1024/

http://www.ded.uscourts.gov/LPS/Opinions/Nov2011/11-176.pdf