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08.22.14

Microsoft’s Patent Troll Intellectual Ventures is Collapsing as 20% of Staff Laid Off

Posted in Microsoft, Patents at 3:22 pm by Dr. Roy Schestowitz

Summary: More good news regarding the demise of patents as Microsoft’s leading patent proxy is collapsing more rapidly than anyone ever imagined and software patents too are collectively doubted

Not only Microsoft is laying off nearly 20% of its staff after years of gradual (but mostly concealed) layoffs. Intellectual Ventures, the world’s biggest patent troll that Bill Gates and Microsoft created, is not quite managing to survive, not even with extortions coordinated and perpetrated en masse. We heard about Intellectual Ventures’ financial issues before, but this is a pleasant surprise:

Intellectual Ventures, the company Silicon Valley loves to despise, is laying off about 20 percent of its employees, Bloomberg Businessweek has learned.

On Tuesday, IV sent a memo to its workers, notifying them of the cuts. The company has been employing 700 people, which means about 140 will be let go. “We are making operational changes that are consistent with this reduction and will enable us to maintain and expand our leadership in the market for invention,” the company said in a statement. “Our assets—both people and intellectual property—are among the best in the industry.” Now, let me try to translate that.

Not too long ago Microsoft threw it a lifeline. This uber-troll, the world’s biggest and most vicious troll, is finally announcing layoffs and it is a major deal because it might come to show what will happen to other trolls like it. This Microsoft- and Gates-funded nuisance cannot go far without Microsoft subsidies, apparently.

Times are tough for a patent troll, apparently. A year ago, we noted that Intellectual Ventures — the world’s largest patent troll, who brought in billions of dollars by getting companies to pay up a shakedown fee to avoid lawsuits over its giant portfolio of patents (mostly cast off from universities who couldn’t find any other buyers) — was running out of cash. While IV did convince Microsoft and Sony to dump in some more cash, IV’s litigation strategy is in shambles. Various lawsuits are dropping like flies without any of the big wins that IV promised.

Now that SCOTUS sheds doubt on a lot of software patents things definitely improve. As one lawyers’ site put it a few days ago:

The Supreme Court has not attempted to “delimit the precise contours of the ‘abstract ideas’ category.” In other words, the Court is essentially saying “we will know it when we see it.” This presents a significant problem to inventors and patent attorneys working in the software industry.

In effect, the Supreme Court is proposing a syllogism such as the following:
- Patents shall not be granted on abstract ideas.
- X is an abstract idea.
- Therefore, a patent shall not be granted on X.

The problem is that the Court has not defined “abstract idea.” Furthermore, “abstract idea” is not self-defining and is not a term that is agreed to by everyone. In fact, an endless chain of assumptions must be followed in arriving at a definition. For example, a court might say: “A general purpose computer executing this software is an abstract idea.” A patent applicant then challenges this statement by saying, e.g., “how is this computer with a claimed memory, processor, input/output unit, and a specific software program “general purpose?” The Court then points to the holding in Alice that the particular claimed computer (system claim) is merely carrying out a method that is an abstract idea and the patent attorney is just re-writing the same general purpose method as a system claim and that including hardware elements does not transform the system claim from an abstract idea. This is circular reasoning.

What patent lawyers wish not to accept or even to grasp is the simple fact that, as we have explained before on numerous occasions, all software patents are inherently abstract. Patents do not cover code but only algorithms, which are conceptual. Code is covered by copyright law. As this gets realised by more judges and they make rulings based on this realisation we are likely to see software patents ebbing away. But don’t expect patent lawyers to give up easily, especially not Microsoft and its extortion strategists. Extortion with patents is Microsoft’s last hope. Here is alawyers’ publication publishing propaganda by a “registered patent agent”:

The Supreme Court has declared abstract ideas unpatentable, but there are structural and other ways around the restrictions, writes Christopher Hall.

Christopher Hall is a registered patent agent in the Silicon Valley office of Womble Carlyle. He has 17 years of industry experience as a professional engineer and is named as sole inventor or co-inventor on 15 granted patents.

Pointless self promotion and not even any content in this article, just an advertisement of vapourware. A bit like Intellectual Ventures…

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