Nuance v. Vlingo: Legal Battles in the Speech-Recognition Space

It's great to have the biggest stand-alone company in the speech recognition business here in Massachusetts: Nuance Communications. But I wonder if we're starting to see some negative effects... as Nuance seems to believe it owns all of the IP in the speech-rec field. They've been fairly litigious of late, and have yet to win a lawsuit in court.

Today's Globe column focuses on Nuance's latest lawsuit against a rival. This time, the defendant is Vlingo, a 35-person start-up in Harvard Square, co-founded by an ex-Nuance executive, Mike Phillips.

I prepared a chart that didn't run with the column, highlighting some of the other recent Nuance lawsuits. Here it is:

2004 – Burlington-based Nuance Communications, Inc. (then known as ScanSoft, Inc.) files suit against Woburn-based VoiceSignal Technologies, Inc. for infringing a patent related to voice-controlled dialing on mobile phones, and trade secret misappropriation. In 2006, VoiceSignal sues Nuance for patent infringement related to an approach to correcting mistakes used by dictation software. In 2007, Nuance buys Voice Signal for $263 million, ending the litigation.

2004 – Nuance sues ART Advanced Recgnition Technologies, Inc. of Israel for patent infringement over voice-controlled dialing for mobile phones. In 2005, Nuance acquires ART, ending the litigation.

2006 – Nuance sues California-based Tellme Networks, Inc. over two patents related to directory assistance and call center technologies. Microsoft acquired Tellme in 2007, but the lawsuit is still pending.

2006 – Nuance sues SoftMed Systems, Inc. of Maryland, alleging that SoftMed violated patents that cover centralized digital dictation systems and priority voicemail systems. The two companies later settled out of court.

2008 – Nuance sues Vlingo, Inc. of Cambridge over a patent pertaining to adapting speech recognition software to individual users.

Lawsuit to watch: Nuance sues Vlingo

Nuance, the biggest speech recognition software company in the world, is suing tiny Vlingo, a Cambridge start-up, for patent infringement. Vlingo co-founder Michael Phillips had been a Nuance employee before starting the company, which focuses on speech recognition on mobile phones. He took a year off to sit out his non-compete agreement before starting Vlingo.

From Nuance's press release about the lawsuit:

In its complaint, Nuance states that Vlingo infringes a Nuance patent that covers a technique for adapting a speech recognition system to the speech of individuals or groups. In the claim, Nuance seeks monetary damages for infringement and injunctive relief to prevent Vlingo from continuing to infringe U.S. Patent No. 6,766,295, entitled “Adaptation of a Speech Recognition System across Multiple Remote Sessions with a Speaker.”

Update: Vlingo's PR rep just sent along this response, from CEO Dave Grannan:

We believe this lawsuit is unfounded. Nuance has referenced a patent that has serious limitations in its coverage. The patent does not apply to vlingo’s technology; moreover, we have significant doubts regarding the patent’s validity. Vlingo’s technology is based on a license of IBM’s core speech recognition platform, which is used by hundreds of companies worldwide. Industry observers will recognize this as typical counterproductive behavior of filing frivolous lawsuits in an attempt to stifle competition. Vlingo will fight the lawsuit aggressively to its conclusion, while continuing to build on our tremendous momentum we’ve gained in less than one year since our public launch.

Some earlier video of Phillips doing a Vlingo demo is here. And Phillips is also mentioned in this Globe column.