Wednesday, March 31st, 2010

Following on from securing PCT (Patent Cooperation Treaty) patent protection, Red Button Technologies has lodged national patent applications in Australia, New Zealand, the USA and Europe.

The applications have been lodged this month ahead of planning the launch of its first product on the Web in mid 2010.

The patents address technology claims around Red Button’s proprietary Connectivity Server developed by Red Button over the last three years. The Connectivity Server is the core enabling Technology for a wide range of telecommunication enhancement products.

“Patent protection is part of our innovation strategy. We are seeking to build a portfolio of intellectual property controlled by Red Button to enhance the future value of the company” said Justin Wearne, Chief Executive Officer of Red Button Technologies.

The value of patents
Obtaining and protecting intellectual property rights is becoming a strategic necessity for businesses. Twenty years ago patents weren't as valuable in the sense that the damages for infringement were not as significant.

Today, damages for infringement of upheld patent rights have run into hundreds of millions of dollars reflecting how the market views the value of patents to listed companies.

It is estimated that patents alone account for over 22% of the market capitalization of companies in the US market. As a result of changes in value being placed on patents and the court’s recognition of their value, inventors are now prevailing more often in multi-million dollar infringement lawsuits.

Red Button’s expertise in managing patents
Red Button’s Chairman and Chief Technology Officer Professor Reg Coutts has direct experience of the leverage that patents can provide; having provided expert advice in some of these disputes between global vendors.

Apple has patented the iPhone application platform and Nokia is suing Apple for infringement of their mobile phone IP. In another example, the holder of a patent on the bar code process has reportedly received over $450 million in royalties and judgments.

Closer to home Australia’s technology organisation the CSIRO won a landmark settlement from a number a number of global vendors including Hewlett Packard over the unlicensed use of their patented wireless LAN technology often referred to as WiFi which has already resulted in hundreds of millions of dollars to the CSIRO sponsoring further innovation in Australia.

In the case of Red Button Technologies, our intellectual property strategy including patents, copyright and trade marks, which is part of the necessary negotiation armoury in the ICT industry for any small innovative market entrant.

Red Button’s patent lodgements
Since forming in mid 2006 after filing an initial patent, Red Button refiled revised patents in 2007 based on an evolution of the original concept and funded the development of the demonstration prototype by Melbourne firm UNICO Computer Systems in 2008.

Red Button received a COMET grant in early 2009 which funded comprehensive market research providing a deeper understanding and quantification of the market potential for the first product estimated to be a $130 million just in Australia.

A brief history
Red Button Technologies established its Adelaide office in September 2009, and a half million dollar injection by Melbourne based software house Optimation in October the same year was a significant step forward underpinning the final development and construction of the Connectivity Server system being installed over Easter in a Primus Telecom data centre in Melbourne.

Red Button opened a Melbourne office earlier this year to house its software development team.

Future product development
Red Button Technologies has already started product planning for further service products based on the increasing capability of its Connectivity Server to serve new business markets as well as consumer applications.

In parallel with this development, Red Button will be broadening its patent portfolio and expanding its IP assets generally.

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Contact Profile

Red Button Technologies

Red Button Technologies Pty Ltd was formed in 2006 through a partnership between telecommunications expert Professor Reg Coutts ( and technology specialist marketer Justin Wearne (

Professor Coutts was a member of the expert panel formed by the Federal Government in 2008 to provide advice on the National Broadband Network which led to the announced policy to invest $43 billion on the national network; he is an Emeritus Professor of telecommunications at the University Adelaide
The company received an AusIndustry COMET Grant in February 2009 to develop the Connectivity Server prototype and to assist with commercialisation of the venture.

In December 2009, Red Button announced that it had received a $500k investment from Melbourne based firm Optimation Software Engineering and has entered into an agreement to develop and commercialise Red Button’s Connectivity Server platform.

Prof Reg Coutts
P: 0414 477 766

Justin Wearne

P: 0414744481
M: 0414744481


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