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

06.28.13

Corporate Debates About Patent Trolls Versus Debates About Patents (or Software Patents in Isolation)

Posted in America, Law, Patents at 5:02 am by Dr. Roy Schestowitz

The issues most often overlooked by American corporate media

OpenSecrets slide
Image from OpenSecrets

Summary: A roundup of coverage about the menace which is patent litigation and the different angles chosen for tackling it

There is a perpetual disconnect and a considerable difference between what people want and what large corporations, which virtually if not practically control the US government, actually want. The large corporations want to see small companies/firms crushed, whereas the public in general wants to reduce spurious added costs, incurred by litigation and cross-licensing (shrewdly-disguised price-fixing by large corporations). The patent lawyers at some firm called “Armstrong Teasdale LLP” join the club of whiners over PTAB [1, 2]. They need to accept the rulings which crush software patents in the US, but they are in denial. Generally speaking, patents do not necessarily benefit the US, unless one considers in isolation smaller compartments of US commerce (patent lawyers or CEOs of large corporations). As a new paper’s abstract puts it:

We use a detailed data set to estimate the costs and benefits of United States patents. To estimate costs, we combine data from Derwent Litalert with a proprietary dataset of non-practicing entity (NPE) lawsuits collected by Patent Freedom, and use an event study approach to estimate losses suffered by alleged infringers during 1984-2009. To estimate benefits, we combine patent data from the USPTO and EPO with financial data from CRSP and COMPUSTAT, and use market-value regressions to estimate the value of patent rents for publicly-traded US firms during 1979-2002. We find that costs exceed benefits overall and that the gap between costs and benefits has grown across time. Surges in the number of NPE lawsuits, lawsuits filed over Computers/Communications patents, and lawsuits brought against non-manufacturing, software and telecommunications firms contribute to the increase in the gap. Growth in costs outstrips growth in lawsuits, in part, because events in these fast-growing categories have higher-than-
average per-event dollar costs.

There are leeches or non-producing players, which hurt customers a lot. According to this article, the “[p]olicy under President Obama is moving against aggressive assertion of software patents, posing significant long-term risk to the profitability of entertainment technology patent holder Rovi (ROVI).”

Whatever destroys trolls is good for the economy — that is — the collective economy which includes customers. Profit for businesses is the wrong yardstick to use if the businesses are ones of extortion, such as Intellectual Ventures. As Troll Tracker put it: “What’s going on is, as the issue of patent trolling attracts more and more attention in the mainstream media, the message is getting diluted and the waters are getting muddied.” There is also this observation about Lodsys:

Intellectual Ventures (Might Be) Tied To Lodsys: Wait, What?

[...]

It’s a proxy fight, and if Lodsys is successful in getting Mhyrvold to testify, something to that effect will surely come out. No wonder he’s fighting it so hard, he’s trying to avoid exposure. Trolls? This is what happens when you garner FTC attention.

We covered this earlier this week. We also covered the issue in prior years. Lodsys had received patents from Intellectual Ventures, which we know to be using about 2,000 pseudo-companies as litigation proxies. This is a pyramid scheme and part of an extortion racket, wrapped in a riddle and a whole legion of lobbyists.

“Lodsys had received patents from Intellectual Ventures, which we know to be using about 2,000 pseudo-companies as litigation proxies.”Mark Bohannon, the Vice President of Corporate Affairs and Global Public Policy at Red Hat (in other words, a chief lobbyist), ought the know the pain caused by trolls like Acacia (it got money from Red Hat several times). Bohannon says that the “House Judiciary Committee Chairman Bob Goodlatte and a wide variety of witnesses highlighted the PAE problem in hearings last winter. Senate Judiciary Committee Chairman Patrick Leahy is working with Chairman Goodlatte and committed to working in a bicameral and bipartisan way to counter what they term ‘patent trolling,’ which “casts a pall on the system because it hinders innovation.””

He also says: “A number of key issues “left on the cutting room floor” during consideration of the AIA—including the current unreliable, uncertain, and speculative method of calculating damages, correcting the standard for finding willful infringement, and venue—remain important elements of our broken patent system that play to the hands of PAEs and encourage abusive patent litigation.

“While action in these areas remains important, they are absent from the current legislative agenda. Given the widening attacks by PAEs, it is essential that Congress work to produce meaningful legislation on at least the issues identified above in order to begin to stem the tide.

“With many of the key players in Congress—joined by the Executive Branch—rowing in the same direction, let’s look for an updated draft of the House Judiciary bill that enhances its ‘first step’ proposal. And the Senate Judiciary Committee is well positioned to put forward a robust measure that builds on (and incorporates) the bills introduced by Senators Cornyn and Schumer.”

“Get rid of the patents to resolve the issue.”The problem is, the White House is still tackling the symptom, not the disease [1, 2, 3, 4]. Those bills are hardly the solution, they tackle a symptom really, one among several symptoms which they mostly fail to address. Todd Bishop, a Microsoft booster, shows Google acquiring more privacy-infringing ideas, which is a problem in itself.

MariaDB, which recently joined OIN and OSI, will remain vulnerable to trolls and as the Oracle case against Google taught us, OIN membership is not enough to dodge litigation from giants, either. Get rid of the patents to resolve the issue. The large corporations are definitely part of the problem, but the White House is literally funded by many of those companies, so don’t expect reform in that domain. Expect the White House to go after smaller players, those that opportunistically sue many large companies. This one new example says that “ArrivalStar sued more than 200 companies and cities over bus-tracking patents.” Patent trolls like ArrivalStar are a problem, but they are not the only problem and when one looks at the actual patent, then it becomes clear that patent scope is the issue, not the plaintiff per se. As we saw many times before (e.g. Oracle, Apple, Microsoft), large corporations use equally ridiculous patents to extort other companies. According to this post, a troll we wrote about before is still busy in Texas, suing large corporations’ clients, so those large corporations get involved:

Earlier this week, we provided an update on the multitude of WiFi-related infringement lawsuits brought by non-practicing entity Innovative Wireless Solutions LLC against various hotels and restaurants in Texas, noting that IWS had dismissed these suits (albeit without prejudice). We had discussed that this was a decidedly “un-Innovatio-like” turn in the cases — but yesterday brought a development that makes this series of disputes much more like the ones in the Northern District of Illinois involving Innovatio: Cisco Systems Inc., a supplier of WiFi equipment for many of the hotels accused of infringement, got involved. And Just like it did with Innovatio, Cisco here filed a declaratory judgment action against IWS, seeking declarations of invalidity and non-infringement as to IWS’s three asserted patents.

It is not easy to kill patent trolls, as Gene Quinn’s recent piece indicates. Trolls cannot be sued, so it takes collective effort. The chairwoman of the FTC speaks about predatory tactics of patent trolls. To quote: “At an event co-sponsored by CCIA, FTC Chairwoman Edith Ramirez announced that she would be asking the Commission to institute a Section 6(b) investigation of the patent troll business model. Senator Leahy also sent Chairwoman Ramirez a letter today, encouraging the FTC use its powers “to prevent unfair and deceptive trade practices in patent infringement allegations.”

“It is those large corporations which probably do far more damage than the trolls and the remedy lies within patent scope.”Edith Ramirez should ask her colleagues to look at patent scope rather than the nature of firms that sue large corporations. It is those large corporations which probably do far more damage than the trolls and the remedy lies within patent scope. Don’t expect any real reform in a nation where large corporations have politicians and government agencies in their pockets. Both political parties (including members of Congress) are controlled and bankrolled by the same large corporations, some more than the other. Always ask yourself when the White House debates trolls or some Congressperson brings up the subject, who are those people funded by? Also, notice who is backing all these pushes against trolls in the corporate sector. As always, money makes the world go round and large corporations are still writing everyone’s policies. The public deserves better than that. The corporations-controlled and corporations-run USPTO will continue to grant more patents than ever before (i.e. more profit), it’s just that those capitalising on those patents (monopolies) will be fewer and larger. Those patents are not there to encourage innovation, they are there to justify increases in prices, eternally-forbidding commoditisation, e.g. generics in medicine.

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

What Else is New


  1. Željko Topić, Benoît Battistelli, and the European Patent Office (EPO): Part II

    Part II of our look into the EPO appointment of Željko Topić and other matters showing the dubious integrity of the EPO



  2. Links 14/9/2014: Android-based Watches Earn Optimism

    Links for the day



  3. Links 14/9/2014: Eucalyptus Devoured

    Links for the day



  4. Links 11/9/2014: Linux Toilet Project, Linux-Based Wheelchair Project

    Links for the day



  5. Links 10/9/2014: Brian Stevens in Google, Ubuntu 14.10 Expectations

    Links for the day



  6. Links 9/9/2014: Hating/Loving Linux, Android Aplenty

    Links for the day



  7. Links 8/9/2014: Linux 3.17 RC 4, Switzerland Welcoming Snowden

    Links for the day



  8. Suspicion of High-Level Corruption at the European Patent Office (EPO): Part I

    The European Patent Office (EPO) Vice-President has a background of corruption and his appointment to the EPO too is believed to be reliant on systemic corruption



  9. Links 6/9/2014: Core OS at DigitalOcean, Women in Xorg

    Links for the day



  10. Software Patents 'Quality' Debated in Courts, Microsoft's Biggest Patent Troll Still a Chronic Liar

    Intellectual Ventures, Microsoft's and Bill Gates' largest patent proxy, continues to spread lies about its motivations, claiming that patent assessment is among the goals when in fact only the courts and patent offices do this



  11. New Article Explains How Bill Gates Prevents Schools From Moving to GNU/Linux and Free Software

    A new article from Al Jazeera provides details about the role of so-called 'charities' of billionaires inside school systems



  12. Microsoft Sued for Large-scale Copyright Abuses

    Microsoft reveals its disregard for copyright law which it loves so much to wield as a weapon against its competition and clients



  13. Links 5/9/2014: New WordPress, Systemd Debate Continues

    Links for the day



  14. 'Embrace and Extend' at Microsoft: The New Generation

    Some of the latest examples of Microsoft's predatory acts against Free software and against competition in general, disguised as acts of friendliness



  15. Bill Gates' God Complex: Common Core a One-Man Campaign of Greed and Control

    The push for Common Core is overwhelmingly dominated by Bill Gates, who intimidates and even resorts to retribution against critics while bribing those who help him accomplish the goal of privatised (for his private profit) indoctrination in US schools



  16. Bill Gates Investments Harm the World, Not Improve the World, Based on New Exclusive Piece of Investigative Journalism at The Nation

    The Gates Foundation's profiteering efforts and lack of ethics outlined in a new report that many sites around the Web find fascinating and mostly irrefutable



  17. Links 3/9/2014: Android Gadgets, New Tails OS

    Links for the day



  18. Linus Torvalds DebConf Talk

    Torvalds' latest talk which got media attention earlier this month



  19. Microsoft Should Not be Considered Too Big to Jail

    Microsoft continues to use dumping as a strategy which revolves around starving the competition, not beating the competition



  20. Pro-Software Patents Voices Finally Acknowledge the Demise of Software Patents in the United States

    A milestone is reached as even the most zealous supporters of patents on algorithms (or computer-implemented inventions, or software patents) are admitting that the era of software patents may be over



  21. New Lies About Microsoft 'Privacy' and New FUD Against the GPL Comes From 'Former' Microsoft Staff at Black Duck

    More AstroTurfing by sites that are run by Microsoft MVPs and firms which were created by people from Microsoft



  22. Links 2/9/2014: GNU/Linux in BBC, Calls Against systemd

    Links for the day



  23. Links 1/9/2014: Poettering on systemd, ITNews on DBMSs

    Links for the day



  24. Moving Away From Windows to GNU/Linux and the Abandonment of Windows as the Modest Proposal These Days

    Morale of GNU/Linux and an embrace of GNU/Linux is very high, despite recent propaganda from Microsoft MVPs and boosters (primarily security-themed and Munich-themed FUD)



  25. Korean Press Slams Microsoft Over Patent Extortion Against Linux/Android as New Abuses Resurface

    Harsh words from the national press of South Korea as Nokia's role in Microsoft's anti-Linux tactics becomes more apparent



  26. More Good News About Patents and Their Demise in the United States

    A roundup of news about software patents and patent trolls in the land where these thrive



  27. Links 31/8/2014: Linux 3.12.27, Akademy 2014

    Links for the day



  28. Links 30/8/2014: Jailhouse 0.1, *buntu 14.10 Beta

    Links for the day



  29. Links 28/8/2014: Many New Games, CTO of Red Hat Steps Down

    Links for the day



  30. We Are Gradually Winning the Battle Against Software Patents

    The once-elusive war on software patents is finally leading to some breakthrough and even the Federal Circuit reinforces the trend of software patents' demise


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