Sufia Tippu
Sunday, 20 August 2006 14:20
IT Industry -
Market

Meeting his e-tutor face to face for the first time when he visited India during summer holidays was the height of excitement for 10-year-old Farhan. He goes to school in New York and was being taught online by this Bangalore-based math teacher for the past 18 months.
This is not a stray episode. Many students like Farhan have become so
dependent on online learning that this has become a big time business
in India. Although no hard data exists about the size of this market in
India, industry experts estimate it at $100-150 million with leading
e-learning companies like LearningMate, Tata Interactive, NIIT,
BrainVisa, ExcelSoft and Hurix Systems offering online education
services for overseas customers.
But, with the recent granting of a patent to US-based Blackboard, (an
e-learning market leader whose product is predominantly used in US
universities for online education), the online education market is
jittery.
Online education covers mainly three categories --converting text books
into soft copies; developing technologies for delivering content
through the Internet; and teachers tutoring students remotely through
the Net.
About two weeks ago, Blackboard was issued a US patent for technology
used for Internet-based education support systems and methods. The
patent covers core technology relating to certain systems and methods
involved in offering online education, including course management
systems and enterprise e-learning systems.
In addition, patents corresponding with the US patent have been issued
in Australia, New Zealand and Singapore and are pending in the European
Union, China, Japan, Canada, India, Israel, Mexico, South Korea, Hong
Kong and Brazil.
Even before the ink had dried on the patent grant, Blackboard sued
Canadian company Desire2Learn, its main competitor in the market that
caters to American students.
According to industry experts, the granting of this patent is like
patenting ERP as your own technology. “How can you patent something as
generic as an e-learning technology?” they ask.
Says Samudra Sen, founder and CEO, LearningMate.com, Mumbai-based
e-learning company which has developed intellectual property in the
areas of content-development and standards-based learning technologies
and services only US and EU client, “No doubt that Blackboard is a
market leader but getting a monopoly in this space is something that
companies and the markets have to watch out for. The patent is
certainly going to be an irritant."
Patent lawyers say Indian companies enrolling US-based students for
their e-learning programs would need to watch out because if there is
any infringement of Blackboard's patent it could run into legal trouble
with suits running into hundreds of thousands of dollars.
‘Today, we are seeing an increasing trend by companies who are adopting
the Alexander approach -- I come, I see and I conquer – and filing
patents for anything under the sun – whether it would be commercial or
relevant to them. Companies like this which patent a platform will be
creating a “scare-all” kind of a situation that would affect the growth
curve in this industry,” explains Pavan Duggal, Supreme Court advocate
who specializes in cyber law.
But many Indian companies feel the patent can cover only specific
systems and there are many ways to deliver e-learning without
infringing on Blackboard's patents.
Ramesh B, who heads Eduquity, a Bangalore-based online assessment
company, feels that whatever patents come up in learning management
systems (LMS) , people can always work around them. “Especially in the
e-learning domain there are so many processes and so many modules --
people can always fashion what they want to suit there needs,” he adds.
But it has definitely put a spoke in the wheel of e-learning companies,
especially smaller online education firms and e-tutors. Most likely to
be impacted would be those students like Farhan who have become so used
to online tutoring and the smaller one-teacher firms which would be
worried about infringing on Blackboard’s copyright technology.