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

11.21.17

Chinese Patent Policy Continues to Mimic All the Worst Elements of the American System

Posted in America, Asia, Patents at 11:38 am by Dr. Roy Schestowitz

This will crush Chinese innovation

Chinese flag

Summary: China is becoming what the United States used to be in terms of patents, whereas the American system is adopting saner patent policies that foster real innovation whilst curtailing mass litigation

THE USPTO, together with US courts, may have done what’s necessary to stave off at least some patent trolls. With software patents on the rocks, venue-shifting becoming tough and various other notable factors, patent trolls either go out of business [sic] or move somewhere else. Some of them go to China.

Even China, based on yesterday’s blog post, is lost in an appalling trap of a patent gold rush. The Chinese government now signals that competing/emergent players (those which compete against state-connected giants) are to be banned. From the blog: “While many past customs enforcement campaigns have focused on foreign rights owners (often big international brands), this one was carried out on behalf of domestic tech companies. China Daily explains that it is part of the government’s plan to “nurture Chinese companies with IP advantages in their exported goods”. In planning the “Soaring Dragon” operation, the Shenzhen authorities selected patent owners that were deemed “capable of independent innovation” – Huawei and ZTE chief among them.”

“The Chinese government now signals that competing/emergent players (those which compete against state-connected giants) are to be banned.”So put another way, a quarter million products were denied access to the market. Who exactly benefits from that? “Whatever the details behind the numbers GACC is publicly promoting,” it concludes, “the message is clear: if you’re an innovative Chinese company and your patents are being infringed, the customs services is one of the tools at your disposal. The more proactive they become, the more potent a remedy this will be, especially for the likes of Huawei and ZTE.”

Those are massive corporations. They now shield themselves with a massive number of low-quality patents, just like in the US. This actually suppresses innovation and reduces competition. It’s like ITC in the US.

Earlier today Watchtroll wrote about ITC action against Apple — action which, as we explained before, would likely go nowhere. ITC, like the above Chinese equivalent, guards the domestic giants.

China will never admit anything like that and with tight control over the media it’s already perfuming the above action. Watch how the Chinese official news site (government site in English) calls embargoes “Reforms open up fair playing field” (a euphemisms salad). “Officials said such ordinances,” the short report says, “meant to encourage enterprises to increase their brand-building awareness and improve product quality, had partly played a positive role.”

“Those are massive corporations. They now shield themselves with a massive number of low-quality patents, just like in the US.”In whose favour? Giants such as Huawei and ZTE? They basically use government-enforced protectionism in the same way Apple tried to guard itself from devices imported from China, Taiwan and Korea. Apple is still stockpiling patents and as we explained a couple of days ago, we expect it to become the next BlackBerry in the sense that it will litigate when little/no market is left for "i" devices. The Microsoft-connected patent troll Finjan already does exactly that (except it was never successful) and it’s is still at it, based on today’s press release. The good news is, victims of this troll are fighting back and challenging the patents. As for BlackBerry, in the absence of Kokes it carries on chasing companies with legal actions, albeit it looks like it explores doing so via intermediaries. As IAM explained yesterday:

Teletry is described as “an independent operating company with expertise in building relationships between patent holders and licensees in the wireless technology industry”. It is headed up by Kasim Alfalahi, who will be known to just about everyone who reads this blog as the former chief IP officer of Ericsson and the current CEO of Avanci, the IoT licensing platform.

Avanci is one of several businesses that sit within the Marconi Group, which was created earlier this year. Another is PanOptis, the NPE which, among other assets, owns a number of patents previously held by Ericsson. Although it is not entirely clear, it looks as if Teletry has been specifically created for the BlackBerry venture – it does not have its own website as far as I can tell and the only mention of it on the Marconi website is the press release announcing the BlackBerry deal.

Aside from Alfalahi, there are a number of other very well-known patent deal makers on the Marconi roster, including: former Google and Motorola Mobility patent transactions rainmaker Kirk Dailey; Eric Reifschneider, previously with Qualcomm; and Fred Telecky, once of Texas Instruments and most recently head of the licensing operation at PanOptis.

[...]

For the following ones, though, both parties will be expecting a return. If Kokes was right about the strength and breadth of the BlackBerry portfolio, outsourcing a large part of the smartphone licensing business to Teletry will free internal deal makers at the company to chase businesses in other verticals. That, in turn, should hasten the arrival of royalties into the company’s coffers – something that will undoubtedly please investors. The hook-up with Teletry may not have been a move that BlackBerry entered into entirely willingly, but it could be one that bears significant fruit.

Stick a fork in BlackBerry. It’s a patent troll by proxy now, for the actual business is just virtually dead. Now that we know what Teletry actually is, our predictions turn out to have been accurate all along. They’re just “managing” “portfolios” of patents (as per this press release from yesterday) and doing so by aggressive/proactive means, notably lawsuits. But will they succeed in the current atmosphere in the US?

“Stick a fork in BlackBerry. It’s a patent troll by proxy now, for the actual business is just virtually dead. Now that we know what Teletry actually is, our predictions turn out to have been accurate all along. “Today’s post from IAM, regarding RPX, says it’s a “tough market reality” and RPX is therefore moving to China. Many patent trolls are moving to China (good riddance!) and the only ones who complain about it are the patent ‘industry’. Technology companies are vastly relieved that all this nuisance is moving as far away as possible.

As a reminder, RPX was imploding somewhat earlier this year. Here’s the latest:

On a recent quarterly earnings call, RPX CEO Marty Roberts told analysts that the firm is looking to expand its presence in China in 2018. The exact dimensions of the aggregator’s planned investment aren’t known as of yet, but when you speak with senior IP executives inside Chinese companies one thing becomes clear very quickly: saying you want to be in China and actually being there are two very different things. If RPX really does want to take advantage of the opportunities the country presents it will need to be very serious about building a long-term project that may not immediately bear fruit.

We don’t yet know whether RPX plans to expand the coverage of its existing defensive aggregation model to China (perhaps by targeting more Chinese patents for acquisition), or whether it might seek to provide some different services designed specifically for Chinese clients. As a service provider with a defensive mission and a large portfolio, it could potentially provide a tailored service that helps Chinese entities gain freedom to operate in overseas markets and defends them against NPEs. However, the decrease of the NPE threat in the US, together with the emergence of the IPR system, have already brought down the costs of defence there – this is something that impacts Chinese companies as much as it does anyone else.

That last sentence is pretty revealing. RPX was directly profiting from a lot of troll activity (IAM uses the euphemism “NPE”) and now that trolls are ebbing away (or moving to China) those who offered a so-called ‘solution’ to it (for large corporations) fail to find themselves.

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. OSI Did Not Guard the Open Source Brand; Now Its Own Name, Open Source Initiative, is Being 'Diluted' and “Open Source” is Almost Meaningless

    The term or the brand “Open Source” is becoming worthless because those who use it typically engage in production of proprietary software falsely marketed as “Open Source” (that's what openwashing is inherently about)



  2. Microsoft is Not an Open Source Authority But an Opponent of Open Source

    Various outlets that are closely connected to Microsoft are trying to convince us that Microsoft is now 'king' of Open Source; nothing could be further from the truth however



  3. Links 22/9/2019: KMyMoney 5.0.7, Lennart's Latest Plan

    Links for the day



  4. Summits of Open Bear Traps: The Open Core Summit and Other 'Open' Events That Actually Attack Software Freedom

    Conferences that call themselves "open" something are sometimes nothing but an attack on openness (not to mention freedom) and promotion of FUD about Free/Open Source software (FOSS); there's an ample set of examples to that effect



  5. Openwashing Report: 'Open Source' Without Any or Most of the Benefits

    The cheapening of the term "Open Source" continues; sooner or later everything out there will be called "open" irrespective of what it really is



  6. Patent Extremism is Not Normal and Not an Innocent Mindset

    Reflection upon the sad state of the European patent system and how media turns a blind eye to it; worldwide, in general, the discussion about patents is being warped by the litigation giants, whose sole goal is to maximise the number of lawsuits/shakedowns (personal gain)



  7. Links 22/9/2019: LLVM 9.0.0 and FreeBSD 12.1 Beta

    Links for the day



  8. Links 21/9/2019: Plasma 5.17 Beta in Kubuntu, Cockpit 203

    Links for the day



  9. IBM Cannot Become a True Friend of Free Software Because of Its Current Patent Policy

    IBM needs to quit bullying people/companies with software patents; that would help towards appeasement of IBM critics and sceptics



  10. When Patent 'Professionals' Sound Like Children Who Learned to Parrot Some Intentionally-Misleading Buzzwords, Myths and Lies

    With buzzwords like "AI" and misleading terms like "IP" the litigation zealots are trying to convince themselves (and the public) that software is a physical thing and a "property" which needs "protecting" from "theft"; it doesn't seem to bother these people that copyright law already covers software



  11. The European Parliament Needs to Become More Outspoken About EPO Abuses

    There are few encouraging signs in Europe right now because the EPO's disregard for patent law (striving to just grant as many patents as possible) earned it much-needed backlash from the European Parliament



  12. Links 19/9/2019: German Federal Ministry of the Interior Wants FOSS, Top Snaps Named

    Links for the day



  13. Buying the Voices of 'Linux' People to Repeat Microsoft's Talking Points While Removing Our Icons and Leaders (Calling Them Sexist)

    The dirty games leveraged by several companies including Microsoft target charismatic people who are essential for morale and leadership; these tactics aren't particularly novel



  14. When the EPO Sees Itself as Above European Law, Grants Patents in Defiance of the EPC (Its Founding Document) and Violates Staff's Labour Rights/Protections (International Law)

    The absurd state of affairs at the EPO has reached the point where laws at every level are being violated and even judges are being threatened or vainly ignored; the EU is belatedly trying to tackle these issues, which have actually cost its credibility a great deal and threaten the perception of Rule of Law at multiple levels



  15. Links 19/9/2019: Samba 4.11.0 and Kubernetes 1.16

    Links for the day



  16. Update on Koch v EPO: Internal Appeals Committee (IAC) Composition Still Likely Illegal

    An important EPO case, concerning a dismissed staff representative, shows what ILO-AT and the EPO's Internal Appeals Committee boil down to



  17. Links 18/9/2019: Fedora Linux 31 Beta, PCLinuxOS 2019.09 Update

    Links for the day



  18. Links 17/9/2019: CentOS 7.7 and Funtoo Linux 1.4 Released

    Links for the day



  19. EPO is Not European

    Internationalists and patent trolls are those who stand to benefit from the 'globalisation' of low-quality and law-breaking patents such as patents on algorithms, nature and life itself; the EPO isn't equipped to serve its original goals anymore



  20. The EPO's Central Staff Committee and SUEPO (Staff Union) Respond to “Fascist Bills” Supported by EPO President António Campinos

    Raw material pertaining to the latest Campinos "scandal"; what Campinos said, what the Central Staff Committee (CSC) said, and what SUEPO said



  21. Storm Brewing in the European Patent Office After a Hot Summer

    Things aren't rosy in EPOnia (to say the least); in fact, things have been getting a lot worse lately, but the public wouldn't know judging by what media tells the public (almost nothing)



  22. Why I Once Called for Richard Stallman to Step Down

    Guest post from the developer who recently authored "Getting Stallman Wrong Means Getting The 21st Century Wrong"



  23. As Richard Stallman Resigns Let's Consider Why GNU/Linux Without Stallman and Torvalds Would be a Victory to Microsoft

    Stallman has been ejected after a lot of intentionally misleading press coverage; this is a dark day for Software Freedom



  24. Links 16/9/2019: GNU Linux-libre 5.3, GNU World Order 13×38, Vista 10 Breaks Itself Again

    Links for the day



  25. Links 16/9/2019: Qt Quick on Vulkan, Metal, and Direct3D; BlackWeb 1.2 Reviewed

    Links for the day



  26. Richard Stallman's Controversial Views Are Nothing New and They Distract From Bill Gates' Vastly Worse Role

    It's easier to attack Richard Stallman (RMS) using politics (than using his views on software) and media focus on Stallman's personal views on sexuality bears some resemblance to the push against Linus Torvalds, which leans largely on the false perception that he is sexist, rude and intolerant



  27. Links 16/9/2019: Linux 5.3, EasyOS Releases, Media Backlash Against RMS

    Links for the day



  28. Openwashing Report on Open Networking Foundation (ONF): When Open Source Means Collaboration Among Giant Spying Companies

    Massive telecommunications oligopolies (telecoms) are being described as ethical and responsible by means of openwashing; they even have their own front groups for that obscene mischaracterisation and ONF is one of those



  29. 'Open Source' You Cannot Run Without Renting or 'Licensing' Windows From Microsoft

    When so-called ‘open source’ programs strictly require Vista 10 (or similar) to run, how open are they really and does that not redefine the nature of Open Source while betraying everything Free/libre software stands for?



  30. All About Control: Microsoft is Not Open Source But an Open Source Censor/Spy and GitHub/LinkedIn/Skype Are Its Proprietary Censorship/Surveillance Tools

    All the big companies which Microsoft bought in recent years are proprietary software and all of the company’s big products remain proprietary software; all that “Open Source” is to Microsoft is “something to control and censor“


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