Whoops, Siri got Apple into trouble with the law. Back in October of 2012, a company called Marathon Patent Group and its licensee Dynamic Advances sued Apple for allegedly violating a patent -- "Natural language interface using constrained dictionary of results" -- with Siri. Dynamic Advances announced today that it is settling the lawsuit with Apple for US$24.9 million.
The patent was originally developed by a professor at Rensselaer Polytechnic Institute in New York state, and it was licensed to Dynamic Advances. Under the agreement, Marathon Patent Group will drop its case with the US District Court for the Northern District of New York and immediately receive $5 million from Apple. It will receive the remaining $19.9 million if other conditions are met. What does Apple get from the agreement? A patent license and a promise that it won't be sued again during the next three years.
Rensselaer Polytechnic Institute will receive about half of the proceeds of the agreement, but hasn't yet agreed to the proposed royalty rate in the agreement. Arbitration might be required to come to a final decision on that matter, but Dynamic Advances says it won't "deter the resolution" with Apple.