Single Touch Claims Mobile Streaming Patent, Puts The Touch On Netflix, Hulu

Netflix-app

Earlier this month, mobile media company Single Touch sent a shot across the bow at Netflix and Hulu, claiming that its streaming video services made use of patented techniques in the company's portfolio.

Single Touch now adds to the patent file by extending these claims into the mobile arena, potentially affecting any publisher that authenticates user identity in order to stream the video.

In an earlier letter to Hulu, Disney and Netflix, Single Touch noted the impending issuance of pending patent #8,015,307, which the company says may apply to video services that communicate to any mobile device, such as an iPad, Playbook or Android tablet.

"In these cases, either topically or behind the scenes, a reservation or unique ID is most likely associated with the person or persons trying to access the media," says Anthony Macaluso, chair and chief innovation officer, Single Touch. "When that occurs, followed by a stream of media provided by the company, there is the possibility that our patents encompass this process."

Macaluso adds that the patent may even cover utilizing a special code or device ID to enter a conference call on a WebEx session. The key element here seems to be the publisher needing to know the identity of the streaming media recipient and for the purposes of charging the user.

Single Touch is a mobile solutions provider that claims over 140 patents, of which 15 apply to streaming media. The company stock was up about 4.42% by late afternoon yesterday on the news, with trading volume running considerably above its 3-month average.

Will the patent extend to TV Everywhere iterations on mobile like HBO Go and Xfinity apps? Like Netflix or Hulu, these are premium services that have to authenticate users and essentially make the app access to the on-demand video part of the subscriber package.

Macaluso says the companies that seem to be violating the patent "should probably have a conversation sooner rather than later." If the patents succeed in pressuring streaming media companies to come to terms with Single Touch on these patents, then obviously it layers on new licensing expenses for online video revenue models that are already tenuous.

In the case of Hulu, which is looking for a purchaser, the unsettled patent issue could complicate negotiations.

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