Patent Office Deals Second Blow in Segment of Software

The U.S. Patent and Trademark Office has tentatively rejected a patent that had given a small La Costa, Calif., company broad rights over any sort of advertising in computer software programs.

The decision marks the second time in recent months that the agency has thrown out a broad patent that had drawn widespread protest from the software industry. The earlier decision quashed a patent held by Compton’s New Media of Carlsbad, Calif., on multimedia search and retrieval processes.

Now, the agency has rejected a 1992 patent issued to Software Advertising Corp., citing “indefinite language” that failed to establish a specific invention. Under the patent, if Bill Gates had wanted to plug, say, Twinkies on Microsoft’s Windows software operating system, he would have had to pay Software Advertising Corp. for a license.

News of the patent rejection was released Monday by PC Dynamics, a small Westlake Village company that publishes a “screen saver” featuring the Energizer Bunny, a longtime advertising symbol of Eveready batteries. In March, Software Advertising had demanded royalties from the company, alleging that the bunny infringed its patent.

“There’s a freedom issue involved here,” said Peter Avritch, president of PC Dynamics. “People are paying for my product . . . because they think the Energizer Bunny is cute. I am not pushing batteries.” PC Dynamics pays Eveready a licensing fee for use of the pink, drum-banging character in its screen savers, which cost $20 to $25 at retail.

Dave Ekedal, president of Software Advertising, vowed to continue his fight for the patent. Under agency procedures, his company has 60 days to file back-up documents and seek a reissue of the patent before the rejection is finalized.