The business of getting personal: Patent agreement illustrates growing market competition

Glenayre Technologies and Accessline Technologies both have come to epitomize the mixture of aggressiveness and patience required of enhanced services software developers. Both companies weathered initial carrier fickleness and user indifference, but their offerings have gradually progressed toward wide deployment and usage.

Now, the two companies may have avoided a potentially lengthy and costly patent flap by entering into a new technology licensing agreement. Glenayre-the Duluth, Ga., company that has sold its Modular Voice Processing (MVP) enhanced services platform to PrimeCo, Omnipoint, Citizens Telephone and other carriers-has agreed to pay Accessline royalties that are related to the Bellevue, Wash., developer's single number solution.

Specifically, the settlement addresses branch routing of calls, routing schedules and call monitoring capabilities that are part of Glenayre's Constant Touch service, available since 1993 but patented by Accessline. Accessline had applied for some of its patents as long ago as the early 1980s. Royalties will be retroactive.

The agreement reflects the fact that single number features and other enhanced services, once ignored, are now attracting a wealth of market competition. "There were no competitors for these services a few years ago. Now, they're springing up everywhere, and these patents are becoming very valuable," said an Accessline spokeswoman.

Glenayre officials have been tight-lipped about the arrangement since Accessline announced it a few weeks ago.

"It's a business agreement that does not affect the capabilities of Constant Touch or how we bring it to market," said Mike Gulledge, director of marketing at Glenayre. The company developed some of the technology for its MVP platform in-house, but it also has benefited from outside sources to beef up MVP. Most recently, Glenayre acquired Open Development Corp. to gain ownership of the latter's prepaid wireless offering (Telephony, Sept. 15, page 6).

The Accessline System has been deployed by carriers such as Ameritech Cellular and AirTouch Cellular, and Accessline also has licensed its technology to other third-party suppliers. It has more than 30 patents pending.

As acceptance of single number solutions and enhanced service has increased, Glenayre and Accessline have found success through slightly different models. Glenayre has focused entirely on direct sales to carriers, integrating its MVP platform into existing or planned network operations. Meanwhile, Accessline has relied on a combination of methods to spur adoption of Accessline System, which was the earliest commercial offering of a single number system.

It has sold direct to several domestic and international carriers. But its third party relationships include ties to Motorola, Ericsson, Octel Communications and Stratus Computer. Its single number capability has become an integral element in the switching and off-switch systems these vendors are selling to carriers. Also, a recent alignment with GTE Telecommunications Services Inc. will position Accessline System as a service bureau offering, which Accessline believes will key even more carrier acceptance, the spokeswoman said.