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. Links 18/12/2014: LinuxQuestions.org Polls, Fedora for POWER

    Links for the day



  2. Links 16/12/2014: Google and ODF, Civilization: Beyond Earth Comes to GNU/Linux

    Links for the day



  3. Bill Gates' Pet Troll Intellectual Ventures is Collapsing as Founder Quits

    Intellectual Ventures founder leaves after an exceptionally large round of layoffs, despite [cref 77299 recent subsidies from Sony and Microsoft]



  4. Keeping Software Patents Out of Europe Following the Demise of Software Patents in the US

    Instability in the EPO seemingly prevents further expansion of patent scope, which is the subject of scrutiny of EPO staff



  5. Links 15/12/2014: OSI 2014 Annual Report, GPLv2 Court Test

    Links for the day



  6. Links 14/12/2014: Calligra 2.9 Beta, Krita 2.9 Beta

    Links for the day



  7. Software Patents Are Dying in the US, But Patent Lawyers Refuse to Admit It

    Patent lawyers continue to distort the reality of software patents' demise in the United States



  8. Links 13/12/2014: Android Wear “Lollipop”, European Commission and FOSS

    Links for the day



  9. Time to Take Microsoft Out of British Aviation Before Planes Crash Into Buildings

    London's mighty Heathrow Airport among those affected by a Microsoft-reliant air traffic control system which is not being able to properly recover from an outage, and not for the first time either



  10. News From France and Germany: Battistelli Under Fire, But Not Fired Yet, Just Firing His Opposition

    The régime headed by Benoît Battistelli and his criminal deputy continues to overthrow or pressure out everyone who is not 'loyal' to the régime



  11. Links 12/12/2014: Linux++, KDE Frameworks 5.5.0, Calligra 2.8.7

    Links for the day



  12. The USPTO is Broken: New Evidence Presented

    The scope of patents, as evidenced by some statistical figures and individual patents, shows that the USPTO is broken and must be reformed or dismantled



  13. US Patent Reform (on Trolls Only) More or Less Buried or Ineffective

    An update on efforts to reform the patent system in the United States, including the possibly imminent appointment of Michelle Lee to USPTO leadership role



  14. Software Patents in Canada Not Dead Yet

    Canada's patent status quo increasingly like that of the United States and Canadian giants like BlackBerry now pose a threat to software developers



  15. Dreaming of a Just Christmas: When a Third of EPO Walks Out to Revolt and European Judges Attack the EPO Over Abuses

    Information about the abuses of Battistelli et al. at the EPO are finally receiving wider coverage and increasing the strain on Battistelli's authoritarian reign



  16. Links 11/12/2014: Red Hat Enterprise Linux 7.1 Beta, Firefox 35 Plans

    Links for the day



  17. Ubuntu Core Announcement is Not About Microsoft and Hosting Ubuntu on Azure is Worse Than Stupid

    The power of media spin makes the idea of hosting Free software under the control of an NSA PRISM and back doors partner seem alluring



  18. France Gets Involved in Battistelli's Abuses in the EPO - Part XII (Updated)

    The EPO scandal has officially spilled over to France, where a French Senator got involved and starts asking serious questions



  19. Rolling of Heads Likely Imminent at EPO

    The European patent system is shaking as management breaks the rules, staff is protesting against the management every week, and charges of corruption resurface



  20. Links 11/12/2014: systemd 218, Empire Total War

    Links for the day



  21. Links 10/12/2014: Fedora 21, Ubuntu Core

    Links for the day



  22. Links 9/12/2014: Fedora 21 and Torture Report Are Out

    Links for the day



  23. Exclusive: The Enlarged Board of Appeal Complains About Battistelli's Corrupt Management to the Administrative Council (Updated)

    Text of the complaint from the Enlarged Board of Appeal (EBoA) reaches Techrights, demonstrating just how rampant the abuse in Battistelli's EPO has become



  24. Protests Against EPO Corruption Approach 1,000 in Attendance

    EPO staff at all levels is revolting against the management of the EPO, whose dismissal seems to be only a matter of time



  25. Links 9/12/2014: Greg Kroah-Hartman Interview, Fedora 21 Imminent

    Links for the day



  26. EPO Staff Protests Today and Protested Last Week, Targeting Corruption in the Institution

    PO staff is demonstrating against abuse by the management of the EPO, today we well as in prior days



  27. Links 7/12/2014: New Linux Release, Marines and Prisoners on GNU/Linux

    Links for the day



  28. EPO Scandal: Benoît Battistelli's Arrogance Recognised by European Delegations

    Battistelli’s Nixon moment and the evasive nature of his approach towards external delegations that are troubled by his behaviour



  29. CBS Brushing Aside and Away Microsoft's History of Blackmail and Bribes Against Linux

    Putting in context some of the poor reporting (or whitewash) regarding Microsoft's bribe (disguised as "partnership") to Barnes & Noble



  30. Links 7/12/2014: Typhoon Hagupit, AURORAGOLD

    Links for the day


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