THE BIG PLAYERS above represent some of the real estate industry's best and most valuable technology solutions. Hundreds of thousands of agents rely on their solutions almost daily. Most of these companies were not aware of REAL's patents prior to their development efforts. All of these companies are now aware of the patent, predominately because in most cases they find themselves as direct infringers. Others are indirect or contributory infringers. Certain companies, have reviewed point for point how their technology follows the claims of the patent and have decided to acquire the appropriate licensing. Others have been influenced by the NAR's questionable tactics, and have decided to continue their infringing in hopes that the NAR could eventually derail or disrupt the rights currently held by patent holders.
THE BIG SECRET is that this patent protects a business method that has become ubiquitous in the industry over the past several years. If real estate agents and brokers advertise or market their properties using computers in this manner whether they pay for the service through member dues, like an MLS, or on a fee basis like REALTOR.com, they become an infringer. The NAR and HOMESTORE knew this years ago. It's all the more insidious to note that while HOMESTORE (MOVE inc) executives were busy cooking the books and padding their pockets with elicit revenues in 2000-2002, a scenario that has since sentenced many of them to prison, they appear to have been carelessly and callously dragging under, otherwise innocent, real estate agents and brokers into the chilling waters of this infringement nightmare.
THE BIG TICKET for damages associated with being an infringer is a matter of law which is ultimately weighed in on by juries. USPTO 5032989 is being heard in federal district court in California, and in February of 2009 a jury will have its chance with this case. Although the patent holders, REAL llc, have made licenses available for a fee of $10,000, damage assessments for anyone utilizing the methodology without a license could reach into the hundreds of thousands of dollars, especially for top agents. How can that be? Simple, licenses are a saleable permission or property right, and the civil penalty for breaking patent license laws (infringement) is often calculated on a percentage of the annual revenues of the infringer.
THE BIG PROBLEM is that in 80% of such cases, settlements usually wind up somewhere between 6%-10% of the infringers annual earings, and can be calculated on multiple years forward and backward. So if you are an average real estate agent earning around $45,000/yr, you could be looking at $18-$25,000 in damages after defending yourself in a federal court case. Let's face it, we all know its cheaper to buy a copy of MICROSOFT OFFICE than to pay $250,000 in licensing penalties. Nobody would pay $1,000 or more to download a song you can buy for a buck or two. However, civil penalties for cheating aren't based on how much it would've cost if you played fair. And, lest we forget, if the jury finds that you knew about the patent and still tried to "beat the system" you could be found guilty of "willful infringement" which would triple the penalty plus add in the court costs of the patent holder.
THE BIG LIE is that the NAR actually believes the disinformation campaign that they are peddling about this patent throughout the industry. In fact, quite to the contrary, the NAR and HOMESTORE have been privy to some of the best confirmations of the validity of the patent. Unfortunately for all of those concerned, this drama has entered into a dizzying death spin. Either the NAR disproves all of the validating evidence confirmed by the USPTO and their own attorneys, or, they are caught in another HOMESTORE (MOVE) lead fiasco. This time not only do they hurt themselves and their shareholders, but they've incriminated virtually every NAR agent and broker member across the USA.
THE BIG ICEBERG on this page highlights many reputable corporate technology vendors, but a closer look reveals the more than 1,000,000 honest and hardworking real estate agents and brokers who have unwittingly been submerged and brought under this enormous mountain of infringement. After you read the facts, and examine the history of the parties involved, ask yourself, do you really trust HOMESTORE and the NAR to be your barometer of integrity when it comes to this issue?