OnLive Granted Cloud Gaming Patent

Andy Chalk

One Flag, One Fleet, One Cat
Nov 12, 2002
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OnLive Granted Cloud Gaming Patent


Gaikai [http://www.onlive.com].

OnLive opened its virtual doors to the public in June but the development of the system, which handles videogame processing chores on remote servers and then fires the visuals back to any PC, netbook or its own "microconsole," has been ongoing for years. Founder Steve Perlman began work on the technology in late 2002 and filed for a patent in December of that same year, and last week it was finally granted.

Richard Doherty of the market analyst firm Envisioneering Group described it as a "landmark patent," noting that unlike many other technology patents, this one is based on real-world hardware. Furthermore, because of the huge and growing popular of gaming, Doherty said there will likely a lot of other companies lining up to license it.

Which naturally leads to the question of Gaikai, OnLive's rival cloud-gaming system that's currently undergoing beta testing. Perlman said "he has a history of trying to work out agreements" in such cases and claimed that despite holding over 100 patents, he's never sued anyone for infringement. On the other hand, these stakes are high; in August the company had an estimated valuation of $1.1 billion [http://venturebeat.com/2010/08/04/online-game-service-onlives-latest-filing-points-to-1-1-billion-valuation/] and is planning to expand into streaming movies next year.

"You can never time when a patent will arrive," Perlman told VentureBeat [http://venturebeat.com/2010/12/14/rivals-beware-onlive-says-it-has-received-a-fundamental-patent-on-cloud-based-games/]. "But it's gratifying to get the recognition. In my opinion, it is a very fundamental patent that covers an important part of the system."



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StriderShinryu

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Dec 8, 2009
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Heh.. I'm sensing a little bit of that Edge thing going on here. If you can't make money off the actual product why not make it off of legally enforcing the patent. Of course, that hasn't happened yet but I'd bet OnLive will be keen to bust anyone who even tries something similar to their tech from now on, big or small.
 

omicron1

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Mar 26, 2008
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Yeaahhh... this is going to do wonders for this brand new market, I can tell you that right now. One company controlling the entire thing... not good. Not good at all.
 
Apr 28, 2008
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"The idea that I can be presented with a problem, set out to logically solve it with the tools at hand, and wind up with a program that could not be legally used because someone else followed the same logical steps some years ago and filed for a patent on it is horrifying." - John Carmack

Thats basically how I feel about this whole thing...
 

ImprovizoR

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Dec 6, 2009
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Morons don't even realize that they pretty much screwed themselves with this move. No one cares about cloud gaming and yet instead of making people interested in it they pull shit like this. So now people have the option to play games the way they're used to, or to use OnLive. And guess which one they'll chose.
 

PedroSteckecilo

Mexican Fugitive
Feb 7, 2008
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Sounds more legit than most Patent Trolling all things considered... people have a right to protect technology they have developed... however Patents are so damn vague that you can patent a "method" which is bullshit, especially if the technology put forward by alternate companies is notably different.
 

Mr. Omega

ANTI-LIFE JUSTIFIES MY HATE!
Jul 1, 2010
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Well, that's one way to make your product unique, I guess... /sarcasm

Serious: Isn't Steam basically cloud gaming? How does that work? Also, I'll only take interest in OnLive if there is a price drop. Even then, I'm not too sure about it.
 

Diligent

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Dec 20, 2009
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Really guys? So much hate for the fact that he filed a patent for his own invention. Statements like "they pull shit like this?" and "they screwed themselves" are weird.

Development on the idea of onlive started in 2002. Think about that...battlefield:1942 was brand new, so was Metroid Prime, and the PS2 was still a big system.
Had you heard of the idea of cloud gaming, or believed it feasible in the near future? Probably not.
So way back then he files for a patent for an idea, and it just so happened to take this long to process, and now because of this he's the devil? Give me a break...

Now I'm not claiming that I necessarily believe in the idea of OnLive but you can't fault the guy for making a perfectly legal and sound business decision.
 

Danpascooch

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Apr 16, 2009
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oh shit.

Now we're going to have another company that survives not by offering something consumers want, but by squatting on a patent.

Sure, they offer something now, but I bet in 5 years 90% of their income will be from the patent.
 

Danpascooch

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Apr 16, 2009
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Diligent said:
Really guys? So much hate for the fact that he filed a patent for his own invention. Statements like "they pull shit like this?" and "they screwed themselves" are weird.

Development on the idea of onlive started in 2002. Think about that...battlefield:1942 was brand new, so was Metroid Prime, and the PS2 was still a big system.
Had you heard of the idea of cloud gaming, or believed it feasible in the near future? Probably not.
So way back then he files for a patent for an idea, and it just so happened to take this long to process, and now because of this he's the devil? Give me a break...

Now I'm not claiming that I necessarily believe in the idea of OnLive but you can't fault the guy for making a perfectly legal and sound business decision.
I just think it's too broad for a patent.

It's going to end with this company making 90% of it's money by charging licensing fees to an entire industry section if cloud gaming takes off.
 

Baldr

The Noble
Jan 6, 2010
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If it wasn't Onlive, Sony filed patents sometime before 2008 for the some sort of cloud gaming. I rather the patents be in the hands of some company that is really committed to the technology.

How much cheaper can you get than over 40 games some as new as six months for only $10/month.

And since I support OnLive since the beginning, I've gotten 5 free games + the system.
 

gl1koz3

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May 24, 2010
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Would be very cool, if they set up a local data center so I can play without lags of >100ms. On this note, there is potential. Though, the graphics don't quite look as good as I'd like...
 

Lillowh

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Oct 22, 2007
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wow good job OnLive. Whatever respect for you that I had has been lost. You've basically just monopolized the technology which is a ***** move. It's pretty much like if Atari Patented "Home Video game devices". You've just screwed over any innovation and competition in the industry. I hope you feel proud. By Patenting "cloud gaming" you've basically screwed over your predictions that "cloud gaming is the future". Especailly with your over-frickin-priced home system of $99, which is about 10x more of a rip off than Kinect, just to hook a tv up to what equates as a filter? Great way to be "alot cheaper than consoles". Douchebags.
 

omicron1

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Mar 26, 2008
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Straying Bullet said:
omicron1 said:
Yeaahhh... this is going to do wonders for this brand new market, I can tell you that right now. One company controlling the entire thing... not good. Not good at all.
Then again, Cloud Computing hopefully never becomes a really powerful thing. I don't like the idea of a server containing all my date despite having the convience they are crunching my data.
But imagine if, say, Steam introduced a server-side gaming feature where you could choose to play any game in your library over the network. Saving on install time, allowing you to ignore hardware requirements, while keeping the ability to install games on your end - and giving Steam/the publishers a free demo option for any game on the service... that would be a mighty attractive option. Unfortunately, it's significantly less likely now that OnLive controls the patent. (Would you give your chief competition access to the only thing that separates you from them technologically? I wouldn't...)
 

Dexiro

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Dec 23, 2009
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That's just a patent for how OnLive works right? Streaming games without downloading them to your own system? If so then it doesn't bother me, not something that I'm ever gonna use. Digital distribution is bad enough, nevermind streaming games over the internet.