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


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. Links 24/10/2016: Linux 4.9 RC2

    Links for the day

  2. Battistelli Plans to Expand the Social [sic] 'Study' (Then 'Conference') Propaganda Until Next Month, Under the 'Workshop' Umbrella

    Milking his shameless propaganda (paid-for 'studies'), Battistelli wants to rewrite the record by all means possible, then pretend that EPO staff participates in it

  3. EPO and EUIPO Join Hands to Release Propaganda (for European Media to Parrot) Some Time Tomorrow

    EPO and EUIPO in collaboration for the promotion of the notion that they are both necessary (and reinforced speculations about growing overlap between them)

  4. UPC Preparatory Committee Puts the Brakes on UPC Amid Brexit and Growing Uncertainty

    The Unified Patent Court (UPC) preparatory committee recognises that the UPC isn't going anywhere (any time soon) and false job advertisements -- or advertisements for jobs that will never exist -- are withdrawn

  5. Updates Regarding EPO and BoAC: Unrest and Injustice Carry on

    Some of the latest information which is publicly and privately available to us, in particular regarding the case of a suspended judge which represents unprecedented erosion of the appeal boards' independence (and hence lack of justice in the Organisation)

  6. EPO and the “Iberian Connection”: Patricia García-Escudero Márquez - Battistelli's Pet Chinchilla on the Boards of Appeal Committee?

    Why the Boards of Appeal Committee has begun showing prominent signs that it is anything but independent and capable of standing up to Battistelli (or his circle at the Office, which includes the “Iberian Connection")

  7. Links 23/10/2016: Alcatel's New Android Smartphones, Another Honorary Doctorate for Stallman

    Links for the day

  8. Open Letter Exposing the Farce Which Was Battistelli's 'Social Conference' Coinciding With Further (New) Attacks on EPO Staff Representatives

    A detailed letter reveals legitimate concerns expressed by staff representatives at the EPO ahead of the so-called Social Conference, in which we have highlighted severe factual flaws

  9. Translation of Latest Rant From French MP Philip Cordery About Benoît Battistelli's Abuses at the EPO

    Philip Cordery crosses horns with Benoît Battistelli, who has become a source of embarrassment for France with his autocratic tendencies and misguided policies that rapidly ruin the European Patent Office (EPO)

  10. Battistelli-Commissioned PwC ‘Study’: Leaked Document Shows PwC's Dishonesty and Misrepresentation of EPO Staff

    An in-depth analysis (but not comprehensive, just preliminary) of the so-called 'study' from PwC, which basically did what it was paid for (pay to say)

  11. Links 22/10/2016: Deus Ex for GNU/Linux, Global DDoS (DNS)

    Links for the day

  12. Battistelli-Commissioned PwC ‘Study’: Survey Comparison Shows Serious Deterioration and Efforts by PwC to Disguise the Truth

    The latest output from PwC turns out to be even worse than initially thought, indicating that not only did it find a degradation in the EPO but also attempted to hide/obscure it

  13. EPO Teaser - The "Iberian Connection" - Some Photos of García-Escudero and His Royal/Government Connections

    A look at the undeniably close connections between Mr. García-Escudero and the most powerful people in Spain

  14. Disruption to Site's Service

    A technical note about why Techrights has not been publishing many articles recently

  15. Links 21/10/2016: MPV 0.21, Mad Max for GNU/Linux

    Links for the day

  16. EPO Caricature: Battistelli's High Five

    Another cartoon about the sad state of the EPO

  17. Battistelli Ruins Not Only the EPO But Also the Whole of Europe By Ushering in Software Patents That Patent Trolls Love So Much

    Battistelli's bad leadership at the EPO threatens to bring to Europe all the ills and menaces of the patent system in the United States

  18. EPO Spokesman Lies to IP Watch in Order to Save Face and Save the King (Battistelli)

    Rewriting history (revisionism) regarding Battistelli and what was demanded amidst abusive behaviour from him

  19. Unitary Patent (UPC) is Dead, But 'Managing IP' and Selfish Patent Law Firms Still Try to Resurrect It

    The latest attempts to shore up the Unitary (or Unified) Patent Court and who's behind it other than the usual suspects

  20. Links 20/10/2016: Linux 4.10 Preview, ONF and ON.Labs to Merge

    Links for the day

  21. Battistelli-Commissioned PwC 'Study': The Raw Outcome Shows Distortion of the Facts at the EPO's Notorious 'Social Conference'

    Results of the Staff Survey carried out by PwC, in order to provide some propaganda for Battistelli's expensive Social Conference

  22. Addendum: EPO's Alberto Casado Cerviño, WIPO's Francis Gurry, and EUIPO's Archambeau

    Photos taken as part of an IP event which took place in Riga (Latvia) in March 2015

  23. Worrisome Connections Between EPO VP2 Alberto Casado Cerviño and Patricia García-Escudero Márquez

    Exploring the potential conflicts of interests implicating the EPO's Boards of Appeal Committee

  24. Site's Infrastructure Under Attack and Upgrades Ahead of Major New Publications

    Protections for the Web site have been improved and capacity increased in order to avoid or at least prepare for another week of abusive/spam traffic

  25. Team Battistelli's Conspiracy Theory: SUEPO is Behind Everything, EPO Management is Trying to Tell the Media

    Attempts to blame SUEPO, the staff union of the EPO, even though SUEPO has nothing to do with articles that are critical of the EPO while many thousands of EPO employees are disgruntled

  26. Links 19/10/2016: Canonical Livepatch Service, Plasma Plans

    Links for the day

  27. The 'Sarah Sharps' of Microsoft: Not the Kind of Scandal the Media Cares Enough to Write About

    Another example of the large (industrial) scale of sexual discrimination at Microsoft -- a company that tries to advertise itself as diverse or tolerant and stigmatise Free/Open Source software (FOSS) as intolerant and/or not diverse

  28. EPO Caricature: EQE Questions

    The latest EPO cartoon, this time about European qualifying examination (EQE)

  29. The Long History or Seeds of Control by Fear and Punishment at the EPO

    The latest hogwash from Team Battistelli (Pinocchio), the latest instance of software patents promotion by EPO Principal Director, and an old (decade-old) nugget of information from the Forum for Principal Directors

  30. Subject of the European Patent Office's Abuses Raised in European Parliament by Ulrike Müller (ALDE)

    A local copy of a bunch of questions asked less than a month ago by Ulrike Müller at the European Parliament, regarding the unacceptable state of affairs at the European Patent Office (EPO)


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


Recent Posts