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

09.06.18

The Eastern District of Texas and Patent Courts Elsewhere Are Eating Huawei, But Huawei Also Uses These US Patent Courts to Prey on Its Competitors Outside China

Posted in America, Asia at 6:37 am by Dr. Roy Schestowitz

In China Huawei enjoys favourable treatment/courts because Huawei is connected to the government

Huawei

Summary: The flawed notion that US patent law would somehow guard the US from competition in Asia overlooks the simple fact that companies in the Far East, China included, can turn US courts against US companies

THE EPO has much to learn from the mistakes made in the US, resulting in many billions of dollars going down the drain (or into the pockets of lawyers and trolls who produce nothing). There’s no way to prevent oneself from being sued when the US Patent and Trademark Office (USPTO) grants bogus patents whose validity would cost a fortune to not only dispute but also contest in court. “The resulting Intraspexion product lets enterprise legal departments prevent potential lawsuits before they even start,” says this new press release, marketing a product that almost certainly would not work. They sell a fantasy. There’s no way to track and properly understand millions of patents; moreover, once such patents are asserted in the form of a lawsuit, legal bills come flowing in. Even if one can predict such lawsuits, that cannot facilitate prevention.

The patent maximalists (who profit from excessive lawsuits/litigious culture) nowadays ‘name-drop’ China quite habitually. Like Donald Trump, they just use “China” as a dog-whistle by which to distract with an external bogeyman and push an agenda that has nothing to do with China. It has a lot more to do with Texas and the meta-industry of patent litigation in there. Here’s what a Dallas patent maximalism site published earlier this week. Media in eastern Texas is just celebrating what would likely get used by patent trolls around there — lots of bogus software patents that the USPTO should not have granted. We have meanwhile learned that PanOptis, which we covered here before [1, 2, 3, 4], sued Huawei successfully, owing to an Eastern District of Texas jury, i.e. a venue that markets itself as being patent trolls- or plaintiff-friendly and a jury that rarely understands technical matters. Appeal to the Federal Circuit would likely overturn this judgment.

A patent maximalists’ site wrote about it. Michael Loney said:

Eastern District of Texas jury awards $2.8m for infringement of four standard essential patents and $7.7m for infringement of one patent without a FRAND commitment

An Eastern District of Texas jury has awarded PanOptis $10.6 million in damages, finding that Huawei willfully infringed five PanOptis patents covering wireless communication technology. The case is Optis Wireless Technology v Huawei Technologies.

The term “FRAND” is nonsense; we’ll come to this again in a moment. It isn’t fair, reasonable, and non-discriminatory (FRAND); it’s the exact opposite.

Huawei isn’t really worthy of sympathy; Huawei fell for Microsoft's blackmail campaign and based on action in the Northern District of California — as covered as recently as yesterday — Huawei itself is a patent bully not only in Chinese courts but also American ones. Citing the example of InterDigital (it took 21,000 Technicolor patents some months ago) and Microsoft’s patent war on Android, this new post says:

As I mentioned a month ago, Samsung had a deadline last week for its response to Huawei’s Ninth Circuit appeal lodged with the Federal Circuit against the antisuit (actually, just anti-enforcement) injunction Judge William H. Orrick upheld in the Northern District of California in late June. The U.S. district court will hold a trial in December, and the purpose of the injunction is to bar Huawei from leveraging two Chinese patent injunctions (granted by the Shenzhen Intermediate People’s Court) before Judge Orrick has the chance to adjudicate a related claim.

Like in the court below, Quinn Emanuel, as counsel for Samsung, is defending the Microsoft v. Motorola it once sought to prevent as Motorola’s counsel, while Sidley, then counsel for Microsoft, is trying hard (but not convincingly so far) to distinguish one case from the other.

[...]

I remember that a Chinese court had held that InterDigital was entitled to SEP royalties far below what InterDigital was seeking then and Huawei is seeking now. But that’s the problem when a company is licensor in some cases and licensee in others: once the shoe is on the other foot, the positions one used to take and sometimes even the victories one scored in a different context backfire. Just like Huawei’s U.S. counsel from the Sidley firm is now struggling to distinguish Huawei v. Samsung from what may have been by far the most important triumph of the firm in connection with patent enforcement.

Meanwhile, Samsung’s counsel is making a lot of effort to describe the anti-enforcement injunction as no big deal. That’s necessary because of the international comity considerations involved: it’s about a U.S. court having enjoined a Chinese company (that elected to file a case in San Francisco), not about a U.S. court putting itself above a Chinese court, or putting U.S. law above Chinese law. As Samsung’s brief puts it, the U.S. district court merely sought to “protect its own jurisdiction to decide the controversy now before it” and to “ensur[e] that the U.S. case can also proceed unimpeded.”

The same blog also wrote about Qualcomm a day earlier. Just like Intel in the more distant past, Qualcomm faces antitrust/abuses scrutiny in Korea, Europe and the US (maybe China too one day). There are some press reports on the (US) FTC’s Qualcomm-’busting’ action, which merely compelled Qualcomm to reduce the prices a little. FRAND too is an injustice, as it’s merely a euphemism for something that isn’t Z-RAND (zero cost). It’s a patent tax. One front group said this:

The Federal Trade Commission (FTC) pressed ahead with its challenge of Qualcomm’s licensing practices on Thursday, August 30, asking a California federal court to find that the company is required to license its standard essential patents (SEPs) to rival chipmakers.

The FTC filed its motion for partial summary judgment at the US District Court for the Northern District of California, San Jose Division, on August 30. Qualcomm’s competition dispute with the FTC is due to be heard at trial in January 2019.

However, four months before the trial is due to commence, the FTC has asked the court for partial summary judgment that, under the fair, reasonable, and non-discriminatory (FRAND) licensing obligations Qualcomm committed to when it participated in setting wireless standards, Qualcomm must license its SEPs to rival chip makers.

The Commission’s lawsuit, submitted in January last year, alleges that Qualcomm had unlawfully maintained a monopoly in the market for baseband processors.

Sadly, Qualcomm will continue to tax the entire market. So will Huawei, even in the United States. This is in no way beneficial to customers or valuable for innovation purposes. It’s for rich shareholders of very affluent companies whose goal is to undercut, undermine and undertake the competition worldwide. As we pointed out last year, Chinese companies have begun turning US patent courts (and US patent law) against American companies in their own back yard, notably in the Eastern District of Texas. In order to improve matters one needs to question patent maximalists and their agenda; China now patents vastly more things than the US does because China (SIPO more specifically) barely even pretends to value quality of patents.

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

    Links for the day



  2. 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



  3. 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



  4. 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)



  5. 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"



  6. 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



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

    Links for the day



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

    Links for the day



  9. 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



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

    Links for the day



  11. 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



  12. '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?



  13. 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“



  14. The Sad State of GNU/Linux News Sites

    The ‘media coup’ of corporate giants (that claim to be 'friends') means that history of GNU/Linux is being distorted and lied about; it also explains prevalent lies such as "Microsoft loves Linux" and denial of GNU/Free software



  15. EPO President Along With Bristows, Managing IP and Other Team UPC Boosters Are Lobbying for Software Patents in Clear and Direct Violation of the EPC

    A calm interpretation of the latest wave of lobbying from litigation professionals, i.e. people who profit when there are lots of patent disputes and even expensive lawsuits which may be totally frivolous (for example, based upon fake patents that aren't EPC-compliant)



  16. Links 15/9/2019: Radeon ROCm 2.7.2, KDE Frameworks 5.62.0, PineTime and Bison 3.4.2

    Links for the day



  17. Illegal/Invalid Patents (IPs) Have Become the 'Norm' in Europe

    Normalisation of invalid patents (granted by the EPO in defiance of the EPC) is a serious problem, but patent law firms continue to exploit that while this whole 'patent bubble' lasts (apparently the number of applications will continue to decrease because the perceived value of European Patents diminishes)



  18. Patent Maximalists, Orbiting the European Patent Office, Work to 'Globalise' a System of Monopolies on Everything

    Monopolies on just about everything are being granted in defiance of the EPC and there are those looking to make this violation ‘unitary’, even worldwide if not just EU-wide



  19. Unitary Patent (UPC) Promotion by Team Battistelli 'Metastasising' in Private Law Firms

    The EPO's Albert Keyack (Team Battistelli) is now in Team UPC as Vice President of Kilburn & Strode LLP; he already fills the media with lies about the UPC, as one can expect



  20. Microsoft Targets GNU/Linux Advocates With Phony Charm Offensives and Fake 'Love'

    The ways Microsoft depresses GNU/Linux advocacy and discourages enthusiasm for Software Freedom is not hard to see; it's worth considering and understanding some of these tactics (mostly assimilation-centric and love-themed), which can otherwise go unnoticed



  21. Proprietary Software Giants Tell Open Source 'Communities' That Proprietary Software Giants Are 'Friends'

    The openwashing services of the so-called 'Linux' Foundation are working; companies that are inherently against Open Source are being called "Open" and some people are willing to swallow this bait (so-called 'compromise' which is actually surrender to proprietary software regimes)



  22. Microsoft Pays the Linux Foundation for Academy Software Foundation, Which the Linux Foundation is Outsourcing to Microsoft

    Microsoft has just bought some more seats and more control over Free/Open Source software; all it had to do was shell out some 'slush funds'



  23. Links 14/9/2019: SUSE CaaS Platform, Huawei Laptops With GNU/Linux

    Links for the day



  24. Links 13/9/2019: Catfish 1.4.10, GNOME Firmware 3.34.0 Release

    Links for the day



  25. Links 12/9/2019: GNU/Linux at Huawei, GNOME 3.34 Released

    Links for the day



  26. Links 12/9/2019: Manjaro 18.1 and KaOS 2019.09 Releases

    Links for the day



  27. EPO: Give Us Low-Quality Patent Applications, Patent Trolls Have Use for Those

    What good is the EPC when the EPO feels free to ignore it and nobody holds the EPO accountable for it? At the moment we're living in a post-EPC Europe where the only thing that counts is co-called 'products' (i.e. quantity, not quality).



  28. Coverage for Sponsors: What the Linux Foundation Does is Indistinguishable From Marketing Agencies' Functions

    The marketing agency that controls the name "Linux" is hardly showing any interest in technology or in journalism; it's just buying media coverage for sponsors and this is what it boils down to for the most part (at great expense)



  29. Watch Out, Linus Torvalds: Microsoft Bought Tons of Git Repositories and Now It Goes After Linux

    Microsoft reminds us how E.E.E. tactics work; Microsoft is just hijacking its competition and misleading the market (claiming the competition to be its own, having "extended" it Microsoft's way with proprietary code)



  30. Links 11/9/2019: Acer in LVFS, RawTherapee 5.7 and Qt 5.12.5 Released

    Links for the day


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