The US Patent and Trademark Office has taken away parts of the patent that controls the use of the JPEG standard, moving it closer to being completely free:
In the reexamination proceeding initiated late last year by the Public Patent Foundation ("PUBPAT"), the United States Patent and Trademark Office has rejected the broadest claims of the patent Forgent Networks (Nasdaq: FORG) is asserting against the Joint Photographic Experts Group (JPEG) international standard for the electronic sharing of photo-quality images. In its Office Action released yesterday, the Patent Office found that the prior art submitted by PUBPAT completely anticipated the broadest claims of the patent, U.S. Patent No. 4,698,672 (the '672 Patent).
Forgent Networks acquired the '672 Patent through the purchase of Compression Labs, Inc. in 1997 and began aggressively asserting it against the JPEG standard through lawsuits and the media in 2004. The company has the opportunity to respond to the Patent Office's rejection, but third party requests for reexamination, like the one filed by PUBPAT, result in having the subject patent either modified or completely revoked roughly 70% of the time.
(via Interesting People)
