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

At IBM, Workers 'Expire' Early ("Next Step" is 'Voluntary' Layoffs Decades Before Retirement Age)
It seems like the "new normal" is layoffs not existing or barely existing because companies hide them
Bluetooth and Wi-Fi on Gym Equipment Can Endanger Several Parties
Joy oh joy! Give us more "smart" things
Microsoft Silent Layoffs This Month (PIPs and More "Buyouts", Driving Out the Workforce), According to Insiders
They know it's happening because they see it and fellow workers talk about it, even if the media keeps mum
Omarchy is Already Dying
Same as the life cycle of slopfarms
A Vortex of Beacons (or "Bluetooth Everywhere" Vision)
If someone (or someones) calls you paranoid for taking about "beacon"-like functionality, there will be no lack of authoritative citations (e.g. Web links) they can be provided to prove them wrong
 
What I Learned in London
some ministers still help us in our fight for press freedom in the UK
EPO "Cocaine Communication Manager" - Part XVI - The German State Does Not Enforce the Law Against European Patent Office Officials
It's not acceptable that Europe's second-largest institution can get away with crime time and time again
Germany's National Broadcaster (DW English) to Air Julian Assange Film This Coming Week
It seems rather sad that we live in a world where rich thugs can get away with so many horrible things
WordPress is Bloatware and Bloated Software Guarantees Security Incidents
This site turns 20 in about 11 or 12 weeks from now and it was never cracked, not even when it ran WordPress
Too Many Chiefs (or Chefs) at IBM, They Don't Know How to Run a Company (With a 100+ Year or Century-Old Brand Recognition Advantage)
It seems like a consensus opinion; some line managers or middle managers are too selfish or self-deceiving
Clacton's Election Was a 'Show Election'
At least some people squeezed out some "free press" out of this charade [...] That the media kept boosting parodies as the alternative/s to the bigot is a topic we wrote about a great deal over the past 3 weeks
Windows is Burning
Windows is the "burning platform" of the year
Gemini Links 15/08/2026: Stress, Jetlag, and GPU Hype (Waste of Energy for Amusement, Fake 'Currencies', and Now for Mass Plagiarism)
Links for the day
Links 15/08/2026: XBox Rotting Further, "France’s Top Court Strikes Down Ban on Social Media for Children"
Links for the day
SLAPP Censorship - Part 150 Out of 200: Always Independently Verify What People Claim to Be (or Find Yourself in a Jason Arday-Type Moment/Dilemma)
I'm not a cardiologist and Garrett was never a security expert
Links 15/08/2026: "There Is No A.I." (Slop Plagiarism Isn't Intelligence) and Its "Impact on the Environment Is Absolutely Horrifying"
Links for the day
Gemini Links 15/08/2026: Gratitudes, "Microflier" Drones, and Literate Programming
Links for the day
IBM's PIPs and RAs (Layoffs) Going on, Interns as 'Scabs'
It seems like a consensus (also in Reddit, we took a quick look)
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, August 14, 2026
IRC logs for Friday, August 14, 2026
Gemini Links 14/08/2026: Slower Internet, Logging Off Made Easy, and Human Code
Links for the day
Links 14/08/2026: "Mystery of Dark Oxygen", People Despise Slop, and Backlash Grows Against Fake Currencies (Energy-Wasting Scam Like Slop)
Links for the day
Free Publicity
They say there's no such thing as "bad press" or that every publicity is good publicity, sometimes free publicity
Farage's fears, media hijacked by-election, what really happened in Clacton
Reprinted with permission from Daniel Pocock
It's Friday. A Ton of People Departing From IBM and Red Hat.
A mere subset of people who announce this in public at Microsoft's LinkedIn
GNU/Linux and ChromeOS Beyond 11%
Combined with ChromeOS, it's already past and beyond 11%
Chatbots/LLMs Are the Next "Clown Computing", Pure Hype, a Serious Mistake
Programs that scan text and emit something similar (but full of errors)
Links 14/08/2026: Slop 'Music' Causing Problems, Slop Data Centre Contractor Unpaid (Massive Debt), and The Cyber Show Says We're "Colonised By Wankers"
Links for the day
Fake Growth of Social Control Media is Misleading
nowadays people look for alternatives - ones not controlled by MElon, CPC, and Kapo-Berg
statCounter: Windows Down to All-Time Low of 25%, Android Leads the Pack, GNU/Linux About to Leapfrog Apple, Overtaking MacOS
The situation was very different in past years
Microsoft's Mass Layoffs (Including 'Voluntary' Secret Layoffs) Take Their Toll on Seattle
How much longer can they hide their crises?
Planet Fedora ("Fedora People") is Just IBM Staff, Former IBM Staff, and LLM Slop
this is what Fedora boils down to now
Explanation of What Will Happen to Red Hat (and Other Acquired Companies) After August
In short, a lot will be scuttled; history shows it happens over and over again
SLAPP Censorship - Part 149 Out of 200: It Took a Long Time to Show What Jason Arday (at Cambridge) and Harvey Weinstein (in Hollywood) Really Were
Really bad when society endures abuse because the abusers silence their exposers
Gemini Links 14/08/2026: 32-bit RISC-V and BlackBerry
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, August 13, 2026
IRC logs for Thursday, August 13, 2026
'Voluntary' Layoffs (a Form of Silent Layoffs): Microsoft Global Voluntary Separation Agreement (GVSA) in August 2026 and September 2026
Today and yesterday
Microsoft Sees Windows on Fire, Pours Gasoline Over It
The latest move from Microsoft defies logic
Racing Towards "Woman Zero"
They don't seem to value women
The Legacy of Gerstner (Rapid Destruction) Continues at IBM
They say IBM never recovered from Gerstner, who instead of saving the companies (IBM and others he claims credit for) set up a collision course of rapid shrinkage
Counters in Clacton Commence in 3 Hours at Clacton Leisure Centre
Even a few hundreds of votes for Pocock would be considered a great success
Swiss army to attack 2,900 domain name owners? Cult of ETH Zurich & Debian
Reprinted with permission from Daniel Pocock
IBM's Bluewashing of Confluent Carries on, More Layoffs Coming, Same Likely Applicable to Red Hat
September 30 is a day before this next phase of bluewashing at Red Hat
Headlines About Microsoft and Ransomware, But They're "SPONSORED FEATURES" at The Register MS
The Register MS habitually publishes LLM slop too
Links 13/08/2026: K-pop Suicide Due to Social Control Media, Legal Problems for Facebook Over Safety
Links for the day
'Cancel Culture' Isn't About Empathy, It's About Making Good People Homeless
Seeing what they did to RMS, remember that those "concern trolls" are about everything other than ethics and morals
Daniel Pocock in The Nerve
Lots of publicity owning to the enrollment
Why Support Daniel Pocock
Our readers who come from IBM and the EPO are certainly familiar with the tactics of censorship and what that sort of censorship leads to
SLAPP Censorship - Part 148 Out of 200: The Manosphere
Those people don't just threaten our national sovereignty, press, democracy etc. They also endanger women everywhere.
Gemini Links 13/08/2026: Health, Partial Eclipse Sketches, and Guilelessness
Links for the day
GNU/Linux Reaches 10% "Market Share" in statCounter
As of this morning
15% of IBM Marked for Potential Termination, PIPs are the "New Layoffs" (or RAs) at IBM
IBM is a dying company, but it does not want the press to say this or for people to understand that
Links 13/08/2026: "The Rise of the Measles-Industrial Complex" and Spotify Curbs Slop
Links for the day
Daniel Pocock on Australia's 9News (Nine Entertainment)
This gives visibility to software and technology issues
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, August 12, 2026
IRC logs for Wednesday, August 12, 2026