i3 Archive and National Digital Medical Archive (NDMA) are caught in a legal dispute with InSiteOne over a technology patent relating to offsite storage and management of digital images. The dispute went to the courts in late September when NDMA and i3 filed a lawsuit in Federal District Court for declaratory judgment of non-infringement and invalidity of U.S. Patent No. 6,574,742 held by InSiteOne. In response, InSiteOne last week filed a counter claim alleging that both NDMA and i3 are “actively inducing” customers to infringe on this patent and is seeking to halt the offered services and for payment of damages. According to a representative for i3 Archive and NDMA, they “have independently developed their own unique technology and have pursued patent protection in the United States and worldwide.” i3 Archive also claims to have acquired the rights to its core technology that had been in development since the mid 1990s, having spent more than $20 million dollars to develop it.