Bonum Certa Men Certa

Microsoft Sued by VirnetX (Again) and Kodak Alleges That Microsoft's Patent Troll Bullies Companies Along With Ray Niro

Nathan Myhrvold



Summary: Intellectual Ventures is said to be attacking companies using its proxies and Microsoft suffers the wrath of the very practice it advocated with investments (patent trolling)

WITH some of its latest patent deals (e.g. Amazon [1, 2, 3]), Microsoft made it abundantly clear that it views racketeering [1, 2, 3, 4, 5, 6, 7] as an acceptable business model. No Microsoft executives have been arrested for it because we live in a society that typically jails the poor and glorifies the rich. It's part of the indoctrination system. We are taught that large entities are immune to social responsibilities, whereas small ones can be viewed of "crooks", "nutcases", or "terrorists". Both are harmful and there is room for infinite hypocrisy.



But anyway, Microsoft is quickly finding out that those small "terrorists" -- the patent trolls -- can cause a lot of damage. Shortly after losing the VirnetX case [1, 2, 3, 4, 5, 6, 7, 8], Microsoft gets sued by VirnetX again (this time triple damages for Vista 7). VirnetX is of course just a patent troll that contributes nothing to industry, whereas Microsoft is a marketing firm that contributes nothing to industry, except harm and monoculture.

"Usually Microsoft doesn't develop products, we buy products."

--Arno Edelmann, Microsoft's European business security product manager



Here is some more coverage of Microsoft's loss to VirnetX:

Microsoft has been ordered by a US federal jury in Texas to pay nearly $106m to VirnetX Holding Corporation for infringing two internet communication patents.


Microsoft's booster Emil Protalinski says that Microsoft will appeal, as usual. It's the same rollercoaster of exhaustion when it comes to i4i [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12].

“Microsoft is a patent troll or at least a backer of some; one could argue that Microsoft is a patent troll by association...”Based on the words of Microsoft's patent troll at Intellectual Ventures, this massive patent-trolling firm was created after discussions with Bill Gates; he created his own troll to 'address' the issue of patent trolls. In order to avoid the "troll" status, Gates and his friends established a model whereby there is reliance on a central hoarder of patents that lends patents to legal attack dogs. This business model has proven successful because some large companies paid "protection money" to Intellectual Ventures under NDAs. Intellectual Ventures has no less 1,000 firms connected to it; these firms are akin to armed mafia people who will go around shooting victims and their families under "mysterious circumstances" unless those victims pay money to the mafia Dons, namely Nathan Myhrvold, Bill Gates, and their ilk (they are financially connected and Gates is part of this vehicle that resembles pyramid schemes). Microsoft is a patent troll or at least a backer of some; one could argue that Microsoft is a patent troll by association and the following new article sheds light on the connection to the father of patent trolling, Ray Niro. We wrote about this connection before

"Kodak Says Intellectual Ventures Behind Patent Lawsuit Filed By Shell Company," says TechDirt:

It seems that at least one company sued over such a patent is hitting back. Joe Mullin points us to the Legal Pad blog, which notes that Kodak, who has been sued for patent infringement by a shell company (PFI) being represented by Ray Niro (famous for, among other things, being the first person labeled a "patent troll," as well as suing a bunch of companies he didn't like with a bogus patent -- finally rejected for good, recently -- that he claimed covered any website that used a JPEG image), doesn't believe that it's really the shell company that's behind this lawsuit. It's demanding that Intellectual Ventures take part...


The original report asks, "Will Patent Holder IV [Intellectual Ventures] Show Its Face to Kodak?"

Kodak is trying to draw large patent hoarder Intellectual Ventures into court.

With its 30,000 patents and opaque veil of mystery, IV has shied away from the courts, likely because an allergy to discovery. But with its new money making scheme of selling patents to trolls who then file lawsuits (free reg. req.), you knew that IV would eventually end up in a courtroom.

Here are the basics on the Kodak case:

1. IV sold patent to shell company named Picture Frame Innovations.

2. Picture Frame, represented by Ray “the original patent troll” Niro, sued Kodak for patent infringement.

3. IV co-founder Peter Detkin told me last year that IV is now cutting deals where it sells patents and takes a cut of any money made by filing lawsuits (free reg. req.). So it seemed like IV might have struck such a deal with Picture Frame and Niro.


We wrote about Kodak and patents before [1, 2].

Recent Techrights' Posts

European Patent Office (EPO) Series: Czech Mate: EPO Kingmaker or Merely a Pawn in the Game?
recent "missions" of the EPO President
SLAPP Censorship - Part 131 Out of 200: A Big Win for the Media in the United Kingdom (UK) Today
In a democratic society the Right to Know, which is closely connected to freedom of the press (or what one might label "blogging" or "blag"), comes above all else, except where there are lives being put at risk
IBM's Fedora Plans to Integrate Slop Into "Fedora Workstation as a Default Feature."
IBM does not care whether the community wants this or not
The Media Talks a Lot About XBox Layoffs, a Closer Look at the Data Shows Microsoft 'Bloodbath'
'Bloodbath' is the term insiders use
 
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, July 07, 2026
IRC logs for Tuesday, July 07, 2026
Links 07/07/2026: Microsoft Cuts Doom "id Software" and Turkey Detains Journalists
Links for the day
Gemini Links 07/07/2026: Old Computer Challenge (OCC) and Hardware Tests
Links for the day
A Break From the Routine
What matters is what whistleblowers keep feeding information to us
SLAPP Censorship - Part 132 Out of 200: When You Cannot Pay a Million Pounds (1,335,520.00 United States Dollar) to Lawyers But Have a Strong Community
Techrights compensates for its fiscal poverty with a wealth of community spirit
Fame is Not the Goal
"Fame" kills
Mental Health in Free Software Communities
clearly there is a subject that merits debate and it ought not be a taboo anymore
The Era of Sponsored Spam
There is no "era of AI", there is era of BRIBES to PRETEND there is an "era of AI"
Gemini Links 07/07/2026: Cleaning, Old Computer, and More
Links for the day
Links 07/07/2026: Le Monde Combats LLM Slop Plagiarism, "ACLU Launches Largest Ever Midterm Electoral Program"
Links for the day
Extremism in the Free Software World is Mostly a Myth
Only the firm belief that justice applies to all will produce a just society
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, July 06, 2026
IRC logs for Monday, July 06, 2026
Links 07/07/2026: Kernelized Secure Operating System (KSOS) and "Exploiting Thoughtcrime in LLMs"
Links for the day
SLAPP Censorship - Part 130 Out of 200: Jealousy, Envy, Hubris
This site is primarily about Free software
Gemini Links 06/07/2026: Still Mostly Dry, GoToSocial, and More
Links for the day
European Patent Office (EPO) Series: Effective Dispute Resolution… But Not For EPO Staff
Slovenia fielded one of the few Administrative Council delegations which managed to maintain its own independent line against the tyrannical EPOnian "Sun King"
Community Sites Need Genuine Collaboration and True Autonomy
People who want to communicate, federate and organise for effective change need to evolve
Free Software Foundation (FSF) Covers Quibble, Free Software for Secure Communications, in the FSF Summer Bulletin
The Georgia Tech folks are bringing Free software education and contributions to one of the better known Computer Science hubs in the US
Microsoft Layoffs Include Windows, Bing, Slop (CoPilot etc.) and There Will More More Rounds (or Waves) to Come
"43% of Xbox laid off"
Obscene Contradiction in Microsoft's Layoffs Tally ("Official" Numbers Do Not Add Up)
Notice how they treat "LinkedIn" as separate
Preserving Comments About the Real IBM Before They Get Deleted
IBM in the 1980s is not what it is right now
Cybershow on "Escaping Prisons For Your Mind"
"THE CYBER SHOW: Stealing technofascism's boots, and stomping on its own face with them."
Links 06/07/2026: At Least 20% Staff Reduction in XBox (Microsoft), Taiwan Sees Uptick in Chinese Aggression/Provocation, Senator Rodante Marcoleta Arrested
Links for the day
Confirmed: Microsoft Layoffs Come in Two Waves, Just Like Last Summer
To us, what stands out is the admission from Microsoft that there are two (or more) waves
In Praise of the UK's Stance on Free Speech (but Some Reservations)
At the moment there is a healthy discussion going on with the objective of disrupting attacks on British press
Exposing Corruption at the European Patent Office (EPO), a Call for More Whistleblowers
We predict that, provided enough whistleblowers speak out, António "the unready" won't even finish his current term
Leaving Our Pets for Several Days
This week our pets will be worried that "mommy and daddy" are away
Dating Trees and Dating 'Apps'
several high-profile stories in the news about scandals in "dating apps"
DW Documentary About Julian Assange Turns 2
It was released just days after Assange had turned 53 and about two weeks after he had left the UK
Independent Media is the Only Form of Legitimate Media
Independent media is, indeed, what we need to demand more of
The Story of the European Patent Office (EPO) Wagging the Dog (EU)
The aim of the series is to properly inform the world - not just Europeans - how Europe's second-largest institution is run [...] How did a corporate hub of monopolies become so detached from the Rule of Law?
GNU/Linux Up to New High in Libya, Windows Down to All-Time Low
GNU/Linux touches 5% there, based on statCounter
Links 06/07/2026: Artists Reject Slop (or Even de Facto Bribes to Market/Endorse Slop)
Links for the day
SLAPP Censorship - Part 129 Out of 200: Iranian Tactics
Hunger for revenge compels people to do overzealous, irrational things
Quiet Week
Many in the US are still enjoying an extended weekend
The Media Needs to Speak of Slop as a Climate Issue Like It Did With Bitcoin
But the slop industry keeps paying the media to play along with the hype
IBM's Fall
IBM's fate is closely connected to that of the Free software movement because of the salaries
Social Dialogue at the European Patent Office (EPO) is Dead, the Strikes and Work Stoppage-Like Actions Carry on
What next for the EPO?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, July 05, 2026
IRC logs for Sunday, July 05, 2026
Links 05/07/2026: Shadows of the Upper Peninsula and 2026 Old Computer Challenge
Links for the day