There have been several efforts. At one point the W3C were working on a standard protocol for it: https://www.w3.org/annotation/
replyDo you remember any details about the name of the software, or the cause of the lawsuits?
replyI had a similar idea, funny to hear it's been done and ended so badly.
I don't recall any lawsuits, but whytheluckystiff made one 20 years ago. https://ruby-talk.ruby-lang.narkive.com/buiXXTZh/what-is-hoo...
replyDon't know if it matches with the lawsuits, but could've been Third Voice (1999-2001).
replyI believe it was https://web.hypothes.is/
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