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Examples
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Such a request can paralyze a small company like Avistar, as other companies that may have licensed its patents wait to see if the patents are declared valid.
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The only way Avistar can survive in the current climate is to ensure it files "bulletproof" patent applications, Mr. Moss says.
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The clash between Microsoft and Avistar is one flash point in a larger struggle between small companies that generate revenue from licensing patents and the deep-pocketed firms that pay for those licenses.
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Yet Avistar, and many companies like it, are being treated like trolls by big companies that aren't making any distinction in whose patents they're challenging, says Mr. Moss.
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Avistar spent $7.7 million on research and development last year alone, and has developed what it claims is unique software for videoconferencing and collaboration.
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"We agree with corporate America that [patent troll] behavior has to stop," says Avistar Chief Executive Simon Moss.
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And small firms like Avistar, which develop and patent their own technology, say they're getting caught in the crossfire.
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Indeed, about a month after it disclosed Microsoft's challenge, Avistar, a San Mateo, Calif., maker of videoconferencing and collaboration software, cited the potential impact on its financial outlook as it announced plans to cut 25% of its work force, or 27 employees.
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Avistar declined to comment on the dispute, citing a confidentiality agreement with Microsoft.
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His experience as a business leader and respected individual within the financial services community helped Avistar address the needs of the financial services industry, while building a business focused on addressing the emerging unified visual communications market.
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