Subject: [NEXTEL-1] Pushed To Talk About PTT

From: [email-masked]
Date: Fri, 01 Aug 2003 13:42:40 -0400

Pushed To Talk About PTT 

By Monica Alleven
August 1, 2003

It's been said before and I'll join the chorus: "Push to talk" is not the type of
phrase that should be trademarked. The question isn't so much why Nextel
Communications Inc. did it, but why did the U.S. Patent and Trademark Office grant
it? 

According to the USPTO's Web site, a trademark includes "any word, name, symbol,
or device, or any combination, used, or intended to be used, in commerce to
identify and distinguish the goods of one manufacturer or seller from goods
manufactured or sold by others, and to indicate the source of the goods." In
short, the office says, a trademark is a brand name.

Brand name? Direct Connect by Nextel is a brand name. But push to talk is not. The
industry has used the term for years to describe a walkie-talkie-like service in
mobile phones. Newton's Telecom Dictionary refers to it as not only a feature in
specialized mobile radio and CB systems but also as a protocol in satellite and IP
telephony networks.

The USPTO also says staff isn't available to talk about the validity of registered
marks. But attorneys at Verizon Wireless are weighing in on the matter. Verizon
filed a complaint in the U.S. District Court for the District of Delaware
challenging the trademark, saying Nextel's request initially was denied by the
examining attorney for a Principal Register distinction. After that denial, Nextel
applied for a Supplemental Register distinction, a mark that doesn't carry the
same weight as the principal designation.

Verizon argues that Nextel unreasonably sought a supplemental registration for the
push-to-talk phrase to prevent Verizon from using the term when it commercially
launches its service. Naturally, Verizon has some expectation that Nextel will
commence litigation should Verizon use the term in its marketing.

As for Nextel, company spokeswoman Audrey Schaefer points out that the trademark
process is not something companies or the government take lightly. It's a long
process, one that for Nextel started more than a year ago. When it comes to push
to talk within a multi-functional device, Nextel has the corner on the market. And
since the USPTO made its decision, the company is confident the courts will agree
it deserves the mark.

Times sure do change. It wasn't that long ago when Nextel representatives liked to
point out that it didn't compete with more traditional wireless carriers, in part
because of its SMR roots. No doubt, they would argue that in a lot of ways, the
company still does not compete head-on with cellular. But in some ways, the gap is
getting smaller every day.

Nextel may not have much to fear from competitors that want to start offering
walkie-talkie-type services and emulate its higher-than-average ARPU. Nextel's
primary customers–businesses and government–typically do their homework before
selecting a wireless provider. They are loyal–Nextel's churn last quarter was 1.6
percent. About 95 percent of its customers use the Direct Connect feature every
month.

Whether Nextel deserves to call push to talk or PTT its own is now up to a court,
or courts. But an underlying big question is how will other carriers' services
compare? How much latency will there be between the push of a button and talking
to someone across town or across the country? How will the services be priced?

Nextel, at one time considered by many a thorn in their side, has enjoyed a
stellar solo run with its Direct Connect offering, and its management has proved
it gets results. The company, including its in-house engineers and their partners
at Motorola, deserve a big hand for what they achieved in a relatively short
time–after a few fits and starts in the lab. And its national PTT rollout was
impeccably timed before the onslaught of other carriers' services.

Other carriers targeting non-traditional segments of the market, such as youth,
will gain another source of revenue once they start offering the service. And they
can count on at least one ace: Nextel doesn't yet offer instant push to picture.
 
http://www.wirelessweek.com/

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