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

11.25.15

The Broken Window Economics of Patent Trolls Are Already Coming to Europe

Posted in America, Europe, Patents at 8:59 am by Dr. Roy Schestowitz

There’s the belief that from destruction come profit opportunities

Window broken

Summary: The plague which is widely known as patent trolls (non-practicing entities that prey on practicing companies) is being spread to Europe, owing in part to misguided policies and patent maximalists

MANY people are very much familiar already with the “Broken Window” fallacy. To quote this short article about it, “natural disasters, wars, and other destructive events can boost an economy’s production because they create demand for rebuilding work.”

“The US patent system, much like the Chinese one, strives to maximise the number of patents (a misguided goal).”Last month we pointed out that patent trolls were entering Europe. These are parasites. They are usually confined to operate within the borders of the US, but a poorly-implemented (to benefit the rich) ‘globalisation’ of patent systems means that more of them can expand their arsenal, extend their horizons, and unleash rage upon European businesses. We have covered many examples in recent years.

The US patent system, much like the Chinese one, strives to maximise the number of patents (a misguided goal). How else can such incredibly high approval rates be explained? It’s no wonder that a lot of domains like programming can now suffer from patent lawsuits in the US. According to this new decision: “Following jury and bench trials, the court found that plaintiff’s network security patent was not invalid for lack of patentable subject matter and found the claims were not directed toward an abstract idea. “Plaintiff contends that contrary to Defendant’s overgeneralization of claim 1 of the [patent-in-suit], claim 1 covers a specific technique of protecting computer networks.”

See? Software patents. An abstract thing. Patented! Welcome to the alternative universe where programs that are reducible to a sequence of numbers (to be fed into a processor or processed/solved using pen and paper) are covered by broad patents, not just copyrights. Where would that leave science and technology in the long run? It would just leave science and technology on the run.

“The largest publicly traded patent-holding company will have to pay online retailer Newegg $15,000 after bringing a frivolous appeal.”
      –Joe Mullin
According to some new reports, e.g. [1,2], Unwired Planet (formerly Openwave Systems, which we mentioned in [1, 2, 3, 4]) now uses software patents pertaining to networks in order to troll Android (Linux-powered) players, namely Samsung and Huawei. Patent maximalists don’t seem to mind this. The significance of this is that it all happened in a UK court, not some distant district of Texas (the rocket docket for trolls).

Speaking of patent trolls, the Microsoft-connected troll Acacia (already attacked Red Hat several times over the years) is said to have lost again. As Joe Mullin put it: “The largest publicly traded patent-holding company will have to pay online retailer Newegg $15,000 after bringing a frivolous appeal.

“The order brings to a conclusion what was a once-classic example of sprawling “patent troll” litigation. In 2010, AdjustaCam LLC, a subsidiary of Acacia Research Corp., filed suit (PDF) in Eastern Texas against dozens of companies, saying that they infringed US Patent No. 5,855,343, which describes a type of movable camera clip. The list of defendants included camera makers like Gear Head and Creative Labs, as well as retailers like Amazon, Newegg, K-Mart, Overstock.com, and Wal-Mart.”

This happened in Eastern Texas, but now we see similar things happening in London. It’s not getting any better; it gets worse over time. People in Europe should watch these developments and trends with some concern.

Speaking of Eastern Texas, see this new article about trolls:

Texas Patent Law as If Roy Bean Were Still On the Bench: “Hang ‘Em First, Try ‘Em Later”

East Texas is really a very nice place. The people are friendly. Living is relatively easy amongst the “Piney Woods.” The region is more like the Old South, or the southeastern U.S., than the scrub brush and high plains that many usually think of when they think of Texas. Riddled with rivers, creeks and bayous the climate lends itself to the growth of Spanish moss and bald cypress. But recently it is another climate in East Texas that has attracted the most attention – its lawsuit climate.

The US Chamber’s Institute for Legal Reform recently released its annual lawsuit climate survey and Texas continues to fail, recently dropping again after some slight improvement in the last couple years. The Lone Star ranks an embarrassing 40th out of the 50 states.

Given the direction of the EPO’s management, Europe might soon become the same, little by little. The UPC would certainly contribute to this, for reasons we explained here many times before.

Related/contextual items from the news:

  1. Privateering: UK court holds Ericsson patent valid, essential to LTE in case against Huawei, Samsung

    In March 2014, Unwired Planet sued several smartphone makers over various patents it had “acquired” from Ericsson. Actually, “acquired” misses the key commercial point here. In April I took a closer look at the related arrangements and couldn’t help but conclude that this was just a pseudo-sale of patents and simply an act of what is commonly referred to as “privateering.”

  2. Unwired Planet wins first of five patent trials against Samsung and Huawei

    Licensing company Unwired Planet has scored a double victory at the English High Court after it ruled that one of the company’s 4G standard-essential patents (SEPs) is valid and was infringed by Samsung and Huawei.

    Mr Justice Birss handed down his judgment today, November 23.

    The judgment is the conclusion of the first of five trials concerning the validity and any scope of infringement of Unwired’s five European SEPs, as well as a non-SEP, by Samsung and Huawei

    Samsung and Huawei argue that the patents are invalid.

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 19/2/2017: GParted 0.28.1, LibreOffice Donations Record

    Links for the day



  2. The EPO is Becoming an Embarrassment to Europe and a Growing Threat to the European Union

    The increasingly pathetic moves by Battistelli and the ever-declining image/status of the EPO (only 0% of polled stakeholders approve Battistelli's management) is causing damage to the reputation of the European Union, even if the EPO is not a European Union organ but an international one



  3. Patent Misconceptions Promoted by the Patent Meta-Industry

    Cherry-picking one's way into the perception of patent eligibility for software and the misguided belief that without patents there will be no innovation



  4. As the United States Shuts Its Door on Low-Quality Patents the Patent Trolls Move to Asia

    Disintegration of Intellectual Ventures (further shrinkage after losing software patents at CAFC), China's massive patent bubble, and Singapore's implicit invitation/facilitation of patent trolls (bubble economy)



  5. Links 17/2/2017: Wine 2.2, New Ubuntu LTS

    Links for the day



  6. Bad Advice From Mintz Levin and Bejin Bieneman PLC Would Have People Believe That Software Patents Are Still Worth Pursuing

    The latest examples of misleading articles which, in spite of the avalanche of software patents in the United States, continue to promote these



  7. Patents Are Not Property, They Are a Monopoly, and They Are Not Owned But Temporarily Granted

    Patent maximalism and distortion of concepts associated with patents tackled again, for terminology is being hijacked by those who turned patents into their "milking cows"



  8. SoftBank Group, New Owner of ARM, Could Potentially Become (in Part) a Patent Troll or an Aggressor Like Qualcomm

    SoftBank grabbed headlines (in the West at least) when it bought ARM, but will it soon grab headlines for going after practicing companies using a bunch of patents that it got from Inventergy, ARM, and beyond?



  9. Technicolor, Having Turned Into a Patent Troll, Attacks Android/Tizen/Linux With Patents in Europe

    Technicolor, which a lot of the media portrayed as a patent troll in previous years (especially after it had sued Apple, HTC and Samsung), is now taking action against Samsung in Europe (Paris, Dusseldorf and Mannheim)



  10. Michelle Lee is Still “in Charge” of the US Patent System

    Contrary to a malicious whispering campaign against Lee (a coup attempt, courtesy of patent maximalists who make a living from mass litigation), she is still in charge of the USPTO



  11. Our Assessment: EPO Wants a Lot of Low-Quality Patents and Low-Paid Staff With UPC (Prosecution Galore)

    The European Patent Office seems to be less interested in examination and more interested in facilitating overzealous prosecution all across Europe and beyond; The Administrative Council has shown no signs that it is interested in profound changes, except those proposed by Battistelli in the face of growing resistance from staff and from ordinary stakeholders



  12. Links 16/2/2017: HITMAN for GNU/Linux, Go 1.8

    Links for the day



  13. Yet More Complaints About the European Patent Office in the Bavarian Regional Government

    Some German politicians do care about the welfare of EPO staff, a lot more so than the EPO's management that is actively crushing this staff



  14. EPO Staff Representatives to Escalate Complaint About Severe Injustices to the EPO's Secretive Board 28

    In a new letter to President Benoît Battistelli it is made abundantly apparent -- however politely -- that Battistelli's gross abuses could further complicate things for Battistelli, who is already embroiled in a fight with his predecessor, Roland Grossenbacher



  15. New Survey Reveals That High Patent Quality, or Elimination of Bad Patents, is Desirable to Patent Holders

    A new survey from Bloomberg BNA and AIPLA reveals that the Patent Trial and Appeal Board (PTAB), which still grows in prominence, is supported by people who have themselves gotten patents (not those who are in the bureaucracy of patents and self-serving politics)



  16. Open Patent Office is Not the Solution; Ending Software Patents is the Solution

    Our remarks about the goals and methods of the newly-established Open Patent Office and what is instead needed in order to combat the menace that threatens software development



  17. New Scholarly Paper Says “UK’s Withdrawal From the EU Could Mean That the Entire (Unitary Patent) System Will Not Go Into Effect”

    A paper from academics -- not from the patent microcosm (for a change) -- provides a more sobering interpretation, suggesting quite rightly that the UPC can't happen in the UK (or in Europe), or simply not endure if some front groups such as CIPA somehow managed to bamboozle politicians into it (ratification in haste, before the facts are known)



  18. Patent Trolls Update: Rodney Gilstrap Maintains His Support for Trolls, MPEG-LA Goes Hunting in China, and Blackberry Hits Nokia

    A roundup of the latest news about patent trolls and what they are up to in the United States, Europe, and Asia



  19. Guest Post: EPO, an Idyllic Place to Work

    The true face of the EPO as explained by an insider, recalling the history that led to the negative image and toxic work atmosphere



  20. Links 15/2/2017: Linux 4.9.10 and Linux 4.4.49

    Links for the day



  21. Claude Rouiller (ILOAT) and ILO Rulings Effectively Disregarded by the European Patent Office

    The compositions of kangaroo courts at the EPO continue to be absurd, in spite of a ruling from the International Labour Organisation (ILO), which insisted that change must be made following a lot of mistrials



  22. National Law Journal Believes That Gorsuch as Supreme Court Justice Would be Opponent of Patent Reform

    Whispering campaign surrounds Neil Gorsuch's alleged or perceived views on patents, and in particular the America Invents Act (AIA) which brought the Patent Trial and Appeal Board (PTAB), a serial invalidator of software patents, owing to Alice (a Supreme Court decision)



  23. Center for Intellectual Property Understanding (CIPU) is a Lobby Group for Software Patents and Patent Maximalism

    An introduction to what the Center for Intellectual Property Understanding really is, what it is for, and who is behind it



  24. The European Patent Office Looks More and More Like the Sicilian Mafia Every Day

    Battistelli has constructed or pulled together a Mafia-like family inside the EPO, where all those who protect the 'King' (or Don) are rewarded and the rest are removed with prejudice



  25. EPO-Connected Writers Are Using Alternative Facts or Fake News to Promote the Unitary Patent in British Media

    The misuse of publications for the purpose of lobbying by Battistelli and Team UPC (a small group of opportunists looking to exploit change that they themselves introduce) is worth noting, for its frequency is on the rise again



  26. Microsoft Has Not Managed to Blackmail Huawei Over Android and GNU/Linux, But Its Trolls/Satellites Are Trying

    The story of Huawei gets more complicated, even though software patents are losing their teeth and notorious patent trolls are altogether losing their patents



  27. IBM Has Become an Enemy of GNU/Linux and a Loud Proponent of Software Patents

    IBM's poisonous policy on patents, which has long been incompatible with Free/Libre software, has gotten even worse and the company now takes the lead in lobbying for patenting of software



  28. Leaked: European Patent Office a Fire Hazard Waiting to Cause Tragedy (Possible Deaths)

    The EPO has known for a while that is was not in compliance with regulations, but as usual -- flaunting immunity and impunity -- nothing happened



  29. For Valentine's Day, Battistelli Learns to Stop Worrying and Love to Lie

    Battistelli lies about patent quality once again, incidentally on the very same day that serious leaks regarding patent quality got published (and need distracting from)



  30. India Cites Public Interest in Patent Case Where Embargo Attempted Against Local Drugmaker

    India turns away a foreign corporation that attempts to use patents to shut down (or destroy the business model of) an Indian company


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