The Hillcrest patents referenced in the action against Nintendo are secondary patents relating to user interface details and compensation techniques, whereas Movea’s Gyration patents are central to the usage model, i.e. using sensors to detect human motion and control graphics on a screen. Gyration was the pioneer in developing fundamental motion sensing technologies and IP, and was a core enabler to Nintendo and Hillcrest, both of whom had entered license arrangements with Gyration to enable their products.

PRESS RELEASE: Hillcrest Labs Issues Statement About Legal Action Against Nintendo and the Wii

August 20, 2008 – Rockville, MD – Hillcrest Labs issued an official statement about legal action that the company has taken today against Nintendo(R) for patent infringement. The statement is as follows:

Hillcrest Labs has filed a complaint for patent infringement with the U.S. International Trade Commission (ITC) in Washington, D.C., and a separate patent infringement suit in the U.S. District Court in Maryland against Nintendo(R) related to the Wii(TM) video game system.

Hillcrest's patents at issue are U.S. Patent Nos. 7,158,118, 7,262,760, and 7,414,611, which relate to a handheld three-dimensional pointing device, and U.S. Patent No. 7,139,983, which relates to a navigation interface display system that graphically organizes content for display on a television. Since 2001, Hillcrest Labs has pioneered technology that allows consumers to interact with digital media on television using motion-control and pointing techniques. The company holds 29 patents in this area worldwide, and has filled for more than 100 related patents.

Leading consumer electronics companies, not all of whom have been disclosed publicly, have already licensed Hillcrest's technology for use in their products. While Hillcrest Labs has a great deal of respect for Nintendo and the Wii, Hillcrest Labs believes that Nintendo is in clear violation of its patents and has taken this action to protect its intellectual property rights. Given the current status of the filings, the company will not disclose any additional details about the matter at this time.

Information about Hillcrest Labs and its products are available at www.hillcrestlabs.com

Instead of scrolling through your onscreen guides with the up/down/left/right buttons like you do now on your TiVo/Media Center, you can use the scrollwheel on the Loop like you would a PC. This means you get to your destination faster and more accurately. Just like a mouse for navigation is better than just using a keyboard, this is better than using a standard button-based remote.

But the remote is only half the story.

Hillcrest Labs is also focusing on its own in-house DVR software. Designed to work on set-top boxes like your cable receiver, thin-client PCs, or even regular home theater PCs, the DVR software looked actually pretty nice, and has similar functionality to Windows Media Center that we've been using for a couple years now. It's way beyond the usability that the lousy $9 Comcast HDTV DVR rental we're currently "using".

There's a web browser, photo viewer, music playback, video playback, and even On Demand support, along with the standard DVR features of playing back live TV and recorded TV. Hillcrest told us that they've secured deals with some major manufacturers/service providers, and they should be rolling out this software on machines sometime in 2007. Presumably with The Loop remote as part of the bundle.

When asked, Hillcrest told us that the motion-sensing technology could be adapted to standard-looking remotes with your regular amount of buttons on it, but that's up to market demand and what the service providers like Time Warner or Comcast want to do with their box.

All in all, a pretty promising idea which boils down to letting you mouse around a DVR interface using a remote instead of a mouse. And if they can get Comcast to replace the craptastic Motorola DVR? They'd get a hug and a kiss from every subscriber in the nation. – Jason Chen