EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

07.29.10

Is Nathan Myhrvold’s and Bill Gates’ Pyramid Scheme Finally Collapsing?

Posted in Apple, Bill Gates, Finance, Microsoft, Patents at 11:35 am by Dr. Roy Schestowitz

Happy face

Summary: Intellectual Ventures is reportedly failing, despite all the capital which was funneled into it by Gates, Microsoft, and Apple

ABOUT a decade ago, by Nathan Myhrvold’s own admission, Bill Gates and this buddy of his came up with the idea of patent hoarding (and subsequent patent extortion) into which the patents-loving Gates poured billions of dollars of his own money, along with Microsoft and Apple. They called it Intellectual Ventures and it is the most splendid example of why the patent system rewards unethical — and at times corrupt — individuals like patent trolls and racketeers [1, 2, 3, 4, 5, 6, 7]. Nathan Myhrvold is considered the world’s biggest patent troll and he reportedly uses over 1,000 satellite firms (yes, that’s over one thousand) to engage in his extortion racket that’s structured like some sort of a pyramid.

Intellectual Ventures has already spent around $5 billion acquiring patents (that’s all it does as no products ever come out of Intellectual Ventures) and notable victims of extortion from Intellectual Ventures have paid around $100 million. That’s a lot of money, but apparently it’s not enough to make this unproductive parasite thrive as a business (if extortion qualifies as a legitimate business per se).

“Intellectual Ventures Shows A Negative 73 Percent Return,” says this new report, but it would be nice to have this claim verified independently.

The link is a PDf download of a document from the University of Texas Management Company listing all of its private investments in venture funds and private equity funds, along with their internal rates of return (IRR). One of the worst performers is Intellectual Ventures, the patent portfolio fund started by Nathan Myhrvold that has a reputation for patent extortion. One of its funds, the Invention Development Fund I, has a negative 73 percent IRR (Dixon mistakenly thought it was negative 78 percent, but close enough). Another fund, the Invention Investment Fund II, has a negative 10 percent return. The two funds combined are delivering a negative 36.66 percent IRR for the University of Texas.

Even if Intellectual Ventures operates at a loss, its terrorisation of the entire industry is a good outcome for some of its investors, which include Apple and Microsoft (they are on the safe side of course).

This patent troll needs to be eliminated and it’s very doubtful that anyone can be fined or arrested because with over a million dollars (per annum) in lobbying alone, Intellectual Ventures has made it apparent that the tail continues to wag the dog, i.e. the rich people continue to control the regulators who were supposed to watch them.

In other news of abuse, Rambus continues to attack the entire industry with submarine patents. [via]

The International Trade Commission has announced its findings in the NVIDIA/Rambus patent infringement lawsuit and it’s not the sort of ruling Team Green would’ve preferred. The commission found NVIDIA to be in violation of three Rambus patents. The trade panel also granted an injunction Rambus had requested, which theoretically prevents NVIDIA and the various companies attached to the lawsuit (Asus, HP, Palit, and MSI among others) from selling products that contain the infringing IP. This last bit sounds more ominous than it actually is; there’s a 60-day window before the injunction takes effect and NVIDIA believes it has other options.

Rambus — unlike Intellectual Ventures — at least has some products. So as much as the industry detests Rambus, no-one deserves exile more than Intellectual Ventures and the new-age gangsters who created it.

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

3 Comments

  1. Jose_X said,

    July 29, 2010 at 1:44 pm

    Gravatar

    Is IV there for tax purposes?

    In any case, I believe that money comes in and it goes back out to its members following whatever formula they use. So we are getting money redistribution, likely from the majority of participants and towards a smaller group of earlier investors (eg, Gates and friends).

    This flow of money only exists because of the threat of voluminous amounts of litigation, made possible courtesy of patent law.

    I think many companies find ways to create shell companies that end up taking extra losses (through deals favorable to the “main company”) so the the main companies can take greater profits. Perhaps this is to exploit loopholes in tax or other laws or to help sell their product or to hide the money trail.

  2. gnufreex said,

    July 30, 2010 at 3:51 am

    Gravatar

    Did those scumbags (Intellectual Ventures) trolled (sued) anyone yet? Or they are going with silent Micro racketeering in a Soft manner?

    Dr. Roy Schestowitz Reply:

    Intellectual Ventures is already suing using its satellites.

What Else is New


  1. The EPO's Race to the Bottom in Recruitment and Early Retirements Explained by an Insider

    The European Patent Office under Battistelli is failing to attract -- and certainly failing to retain -- talented examiners



  2. Wouter Pors and Other UPC Boosters Believe That Repeating the Lies Will Potentially Make Them Truths

    The lobbying campaign for UPC, or hopeful lies (sometimes mere rumours) disguised as "news", continues to rely on false perceptions that the UPC is just a matter of time and may actually materialise this year



  3. The Patent Trial and Appeal Board (PTAB) is Utilised in Fixing the US Patent System and the Patent Microcosm Loses Its Mind

    A roundup of PTAB news, ranging from attacks on the legitimacy of PTAB to progress which is made by PTAB, undoing decades of overpatenting



  4. The Patent Trial and Appeal Board (PTAB) and the Federal Circuit (CAFC) Take on Patents Pertaining to Business Methods

    Patents on tasks that can be performed using pen and paper (so-called 'business methods', just like algorithms) and oughtn't be patent-eligible may be the next casualty of the America Invents Act (AIA)



  5. Google's Stewardship of GNU/Linux (Android, Chromebooks and More) in Doubt After Company Resorts to Patent 'First Strikes'

    Google has just turned a little more evil, by essentially using patents as a weapon against the competition (by no means a defensive move)



  6. Links 24/2/2017: Ubuntu 17.04 Beta, OpenBSD Foundation Nets $573,000 in Donations

    Links for the day



  7. IAM, Greased up by the EPO, Continues Lobbying by Shaming Tactics for the UPC, Under the Guise of 'News'

    The shrill and well-paid writers of IAM are still at it, promoting the Unitary Patent (UPC) at every opportunity and every turn



  8. Patent Scope Gone Awry: European Vegetable Patents Office?

    In its misguided race to raise so-called 'production', the EPO lost sight of its original goals and now facilitates patent royalty payments/taxation for naturally-recurring items of nature



  9. Yes, There is Definitely Brain Drain (Experience Deficit) at the European Patent Office and Stakeholders Feel It

    The direction that the European Patent Office has taken under Battistelli undoes many decades (almost half a century) of reputation-building and progress and naturally this repels existing staff, not to mention hampers recruitment efforts



  10. The Sickness of the EPO – Part IV: Cruel Management That Deliberately Attacks the Sick and the Weak

    The dysphoric reality at the European Patent Office, which is becoming like a large cell (with bolted-down windows) where people are controlled by fear and scapegoats are selected to perpetuate this atmosphere of terror and maintain demand (or workload) for the Investigative Stasi



  11. Links 23/2/2017: Qt 5.9 Alpha, First SHA1 Collision

    Links for the day



  12. UPC Roundup: War on the Appeal Boards, British Motion Against the UPC, Fröhlinger Recalled, and Fake News About Spain

    Taking stock of some of the latest attempts to shove the Unitary Patent (UPC) down Europe's throat, courtesy of Team Battistelli and Team UPC



  13. The Sickness of the EPO – Part III: Invalidity and Suicides

    An explanation of what drives a lot of EPO veterans to depression and sometimes even suicide



  14. The Appeal Board (PTAB) and Federal Circuit (CAFC) Maintain Good Pace of Patent Elimination Where Scope Was Exceeded

    The Court of Appeals for the Federal Circuit (CAFC) continues to accept about 4 out of 5 decisions of the Patent Trial and Appeal Board (PTAB) and the US Supreme Court (SCOTUS) refuses to intervene



  15. Software Patents Are Ebbing Away, But the “Swamp” Fights Back and Hijacks the Word “Fix”

    The club of patent maximalists, or those who profit from excess prosecution and legal chaos, isn't liking what has happened in the United States and it wants everything reversed



  16. Report From Yesterday's Debate About the European Patent Office (EPO) at the Bavarian Landtag

    A report of the EPO debate which took place at the Bavarian Landtag yesterday (21/2/2017)



  17. Links 22/2/2017: Wine-Staging 2.2, Nautilus 3.24

    Links for the day



  18. French Politician Richard Yung Tells the Government About Abuses at the European Patent Office (EPO)

    The subject of EPO scandals has once again landed in French politics, just a couple of months since it last happened



  19. The Sickness of the EPO – Part II: Background Information and Insights

    With a privatised, in-house (sometimes outsourced and for-profit) force for surveillance, policing, justice, public relations and now medical assessment (mere vassals or marionettes of the management) the EPO serves to show that it has become indistinguishable from North Korea, where the Supreme Leader gets to control every single aspect (absolutely no separation of powers)



  20. EPO Cartoon/Caricature by KrewinkelKrijst

    A new rendition by Dutch cartoonist and illustrator KrewinkelKrijst



  21. Inverting Narratives: IAM 'Magazine' Paints Massive Patent Bully Microsoft (Preying on the Weak) as a Defender of the Powerless

    Selective coverage and deliberate misinterpretation of Microsoft's tactics (patent settlement under threat, disguised as "pre-installation of some of the US company’s software products") as seen in IAM almost every week these days



  22. The Sickness of the EPO – Part I: Motivation for New Series of Articles

    An introduction or prelude to a long series of upcoming posts, whose purpose is to show governance by coercion, pressure, retribution and tribalism rather than professional relationship between human beings at the European Patent Office (EPO)



  23. Insensitivity at the EPO’s Management – Part VII: EPO Hypocrisy on Cancer and Lack of Feedback to and From ECPC

    The European Cancer Patient Coalition (ECPC), which calls itself "the largest European cancer patients' umbrella organisation," fails to fulfill its duties, says a source of ours, and the EPO makes things even worse



  24. Links 21/2/2017: KDE Plasma 5.9.2 in Chakra GNU/Linux, pfSense 2.3.3

    Links for the day



  25. EPO Caricature: Battistelli's Wall

    Battistelli's solution to everything at the EPO is exclusion and barriers



  26. The 'New' Microsoft is Still Acting Like a Dangerous Cult in an Effort to Hijack and/or Undermine All Free/Open Source Software

    In an effort to combat any large deployment of non-Microsoft software, the company goes personal and attempts to overthrow even management that is not receptive to Microsoft's agenda



  27. PTAB Petitioned to Help Against Patent Troll InfoGation Corp., Which Goes After Linux/Android OEMs in China

    A new example of software patents against Free software, or trolls against companies that are distributing freedom-respecting software from a country where these patents are not even potent (they don't exist there)



  28. Links 20/2/2017: Linux 4.10, LineageOS Milestone

    Links for the day



  29. No, Doing Mathematical Operations on a Processor Does Not Make Algorithms Patent-Eligible

    Old and familiar tricks -- a method for tricking examiners into the idea that algorithms are actual machines -- are being peddled by Watchtroll again



  30. Paid-for UPC Proponent, IAM 'Magazine', Debunked on UPC Again

    The impact of the corrupted (by EPO money) media goes further than one might expect and even 'borrows' out-of-date news in order to promote the UPC


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts