Bonum Certa Men Certa

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

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.

Recent Techrights' Posts

If We Move Everything to Devuan...
IRC, Git, Apache and so on
Campinos is a Lame Duck President This Year at the European Patent Office (EPO)
The strikes are not ending. If anything, they intensify further.
Links 29/04/2026: "Snowden Affair 13 Years Later" and "Landmark Data Center Pause"
Links for the day
 
In Past 6 Months IBM Lost About 100 Billion Dollars in 'Value' While Debt Ballooned to 70 Billion Dollars
Welcome to a universe of fake finances and phony accounting based on fictional assets with made-up 'worth'
Dr. Andy Farnell on Weaponising Morality Against Technofascism and Slop
It's longer than a "tweet", so social control media addicts are likely mentally unfit to read it
Six Months
Techrights will be around (and active) for a very long time to come
Why We Publish "The Corrupt Lecture the Non-Corrupt"
We intend to report the facts, fearlessly, until real and lasting solutions are reached
SLAPP Censorship - Part 61 Out of 200: Garrett and Graveley Must Understand That Reporting Women's Issues in the United States of America (“the US”) is Not Impermissible
when you cover Microsoft corruption and have real effect
Weeks After Mass Layoffs of Red Hat Engineers We Learn of European "Buyouts" and Layoffs at IBM
At Microsoft, they tell us there are merely "buyouts", but they don't tell us what happens if you say "no!"
OS Upgrade Tentatively Scheduled for Tomorrow
We have some contingencies in case the upgrade goes wrong
Links 29/04/2026: LLM Chatbot Usage Goes Down Sharply (as Do Stocks Associated With Them), Microsoft's Circular Financing Accounting Fraud at Risk
Links for the day
Gemini Links 29/04/2026: Returning to an Exodus and Farewell APU
Links for the day
Slop Has a Long Way to Go Before It Gets Basic Facts Right
Please do not rely on slop for anything
The Corrupt Lecture the Non-Corrupt - Part IX - European Patents That Are Illegal (But Serve Non-European Monopolists in Exchange for 'Quick Cash')
People who shamelessly violate the European Patent Convention (EPC) have the audacity to lecture workers on "ethics"
Canonical is Selling You, Ubuntu is a Data-Collecting Platform
Canonical is looking for money in the wrong places
Seems Like Only Techrights Covered IBM Laying Off About 33% of Confluent Staff
How can such a large round of layoffs evade today's media?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, April 28, 2026
IRC logs for Tuesday, April 28, 2026
Gemini Links 29/04/2026: Bad Diet, New Middle Ages, and Temperature Model
Links for the day
IBM is Already Doing 'Voluntary' Layoffs This Year in Europe ('Buyouts' Ahead of Mass Layoffs)
IBM's efforts to hide or belittle layoffs is noteworthy
Tracing Back the Misuse of the Word "Buyout" to Describe Merciless Mass Layoffs
So we can assume very large Microsoft layoffs are on the way, this time not spun as "buyouts"
Growing the List of Sites That Are Rogue
It's very important to raise and spread awareness of which ones are fake
Links 28/04/2026: Uganda Criminalising ‘Foreign Agents’ and China’s Economy "Starts to Show Cracks"
Links for the day
Anthropic and Claude Are National Security Risks Not Because of Politics But False Marketing and Vandalism, Plagiarism Sold as Innovation
The slop hype is causing severe damage
Like GAFAM, US Telecom Industry Has Severe Debt Problem
Maybe their real problem is true profitability
Gemini Links 28/04/2026: Misfin, ELPiS, and Developing Another Gemini Client
Links for the day
US Government Sites See More Traffic From Apple Devices Than Microsoft Windows PCs
Keep this in mind when Microsoft talks about mass layoffs while calling these "buyouts"
Layoffs Versus Buyouts
Microsoft has mass layoffs and those target the most experienced people in one of the best-paid locations
Latest Example of False Marketing by Anthropic
Like Scam Altman, they're better at buying publicity (paying for hype) than they are at delivering something of genuine value [...] That has the full make-up of fake news and a publicity stunt
IBM: From RAs to "Workforce Re-balancing" (New Names for Mass Layoffs)
Well, "workforce re-balancing" means "RAs", which is a misleading acronym IBM has devised to soften if not hide mass layoffs.
Aaron Hillel Swartz Would Have Turned 40 This Year
Aaron Swartz killed himself in 2013
The Trumps Are Making Jimmy Kimmel More Famous and Popular
Comedy has long been "controversial", but trying to get people sacked for the 'wrong' joke results in having no comedians or only pseudo-comedians who are the dictator's jester/joker
Microsoft's Grip Has Slipped, Market Share Steadily Declining
This is why Microsoft is having financial issue
Links 28/04/2026: Microsoft's GitHub Upselling After Two Leaders Jumped Ship (Losses Pile Up), "Inflation Jumps," and More
Links for the day
SLAPP Censorship - Part 60 Out of 200: Talking About Corruption at Microsoft and Arrest for Strangulation is "Malice"
At the moment Brett Wilson LLP has no new clients
The Corrupt Lecture the Non-Corrupt - Part VIII - "Red Line" When the European Patent Office (EPO) President Sleeps With Sister of "Cocaine Communication Manager" (Whom He Unconditionally Protects)
If only management took its own words (idealistic pontification) seriously
IBM Laying Off Thousands of Workers Again, Based on Q1 Earnings Call
under the guise of "workforce rebalancing" we are again seeing that IBM plans to pay people (severance) to leave
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, April 27, 2026
IRC logs for Monday, April 27, 2026
Gemini Links 28/04/2026: Good Sunrise Viewing and Self-hosting from Home
Links for the day[1;5C
Microsoft Insiders: If You Don't Take the Lousy Severance-Like Offer, They'll PIP You Out (Microsoft Signals to People Over 40 That They'd Better Vacate the Place)
Microsoft targets its most experienced (read: expensive) workers
"AI" 16 Times in One 'Article'. The Register MS Got Paid to Post This Spammy, Promotional Piece of Slop.
Pay closer attention to who pays and who gets paid
Links 27/04/2026: Chernobyl Disaster at 40, "Heartbreaking" Decline of Australia
Links for the day
Gemini Links 27/04/2026: Gopher Catchup, MNT Reform, and Injuries
Links for the day
Red Hat Circling Down the Slop Drain
IBM, governed by slop fanatics, is going to do a lot of damage
Slop is an Addiction, Its Users Find It Addictive
please do not tolerate people who slop
The Corrupt Lecture the Non-Corrupt - Part VII - Secrecy at the EPO (Regarding Cocaine and Nepotism) Has Undermined Trust in Management
If Europe's second-largest institution is run by the "Alicante Mafia", does this mean that other key European institutions are "Mafia"?
SLAPP Censorship - Part 59 Out of 200: Mentioning the Fact Alex Graveley Arrested and Charged for Strangulation in Texas is "Reckless" and "Malicious", According to His 'Hired Guns' in London
it was framed as "malicious"
Links 27/04/2026: Strikes, Corruption in Spain (Spanish PM Sanchez' Wife), and YouTuber Faces Jail Time
Links for the day
Gemini Links 27/04/2026: Gopher Catch-up, Year of Contentment, and Path to Freedom
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, April 26, 2026
IRC logs for Sunday, April 26, 2026