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04.23.14

Microsoft’s and Bill Gates’ Biggest Patent Troll (Intellectual Ventures) Suffers Setback and Nokia is Dead While Patents Scattered to Microsoft Patent Proxies

Posted in Bill Gates, Microsoft, Patents at 11:24 am by Dr. Roy Schestowitz

CPTN all over again

Bill and Nathan

Summary: Microsoft’s patent collectors (trolls) are to have a feast with Nokia patents while Intellectual Ventures, Microsoft’s largest patent proxy, continues to attack companies including Motorola

THE world’s biggest patent troll, Intellectual Ventures, recently received yet more subsidies from Microsoft. Microsoft may think we’re all idiots, but it’s easy to see who runs this troll (former Microsoft manager and Bill Gates’ close friend and partner), how the troll attacks practicing companies through thousands of proxies (literally thousands), who subsidises it (Microsoft and Bill Gates, who is working closely with this troll), and who the litigation targets are (the troll has collected more money from Microsoft and it will never target Microsoft, which is a spiritual ally). This is why we often refer to this troll, one among several Microsoft-associated trolls, as Microsoft’s and Bill Gates’ patent troll. It is no exaggeration and not a misnomer. We have watched this troll closely for about 7 years now.

According to this report, “Intellectual Ventures (IV) is the world’s biggest patent-licensing company and boasts of having collected tens of thousands of patents since it was founded in 2000. It’s raised about $6 billion from investors over the years, and to recoup that money, it started filing lawsuits over patents a few years ago. In 2013, it launched a new salvo, filing 13 lawsuits against major US banks, including Bank of America, JP Morgan Chase, and Capital One.

“The Capital One case ended last Wednesday, when a Virginia federal judge threw out the two IV patents that remained in the case. It’s the first IV patent case seen through to a judgment, and it ended in a total loss for the patent-holding giant: both patents were invalidated, one on multiple grounds. (An IV case against Motorola went to a jury, but it ended in a mistrial, and no new trial has been scheduled.)”

Notice the role of Motorola there. It is possible that this troll can even pressure Motorola into a patent deal with Microsoft (appeasement by peer). It is not improbable.

On goes the article from a patent trolls expert: “The case was just weeks away from a jury trial, but US District Judge Anthony Trenga didn’t let it get that far. In an opinion published Wednesday, Trenga found that IV’s patents were simply abstract ideas: “nothing more than the mere manipulation or reorganization of data,” he wrote. “At most, the patents describe a more efficient system or method for performing tasks than could be done without a computer, i.e. monitoring expenditures according to preset limits (the ’137 Patent) or determining what would appeal to a particular user from a particular website (the ’382 Patent.)””

So this one patent troll lost this time around, but Microsoft (and Bill Gates) has other patent trolls with whom to attack Microsoft competitors and potential sources of income (through patent shakedown).

We recently and habitually wrote about how Microsoft was destroying Nokia while leaving the patents outside for attacks on Linux/Android from proxies such as MOSAID. Well, based on this report, the plot is now a “success” (Nokia destroyed, mission accomplished by Elop the mole), customer data held by Nokia (Europe) will be passed to NSA PRISM (through Microsoft, which has just issued disgusting PR/reassurances on the topic) and “grand old name of Nokia will be dropped from the company’s title as soon as the Microsoft takeover is rubber stamped this month, according to a letter sent by the new owners to suppliers.”

It’s a real shame that European regulators don’t quite grasp the fact that not Nokia will become the patent troll; Microsoft ensures that Nokia patents get sent to non-practising proxies (several of them already) which work to eliminate low-cost phones, especially if they run Android/Linux.

Patent Racketeering Continues With Nadella: Motorola the Latest to Join the FUD Campaign

Posted in Microsoft, Patents at 11:02 am by Dr. Roy Schestowitz

Nothing Substantial to See in Motorola Solutions-Microsoft ‘Patent’ Deal

Satya Ballmer
Satya Ballmer

Summary: Nadella continues Ballmer’s campaign of intimidation and alienation, showing that nothing has changed at Microsoft, not even the FUD

“USEFUL idiocy” (or wishful thinking) associated with the "Nadella" label was soon interrupted by evidence that Microsoft will use attack ads/FUD against competitors and also continue patent extortion, first with a Dell deal and now Motorola. So much for change. Change we can’t believe in…

According to this one article: “Motorola Solutions has become the latest maker of Android and Chrome OS devices to license related patents from Microsoft, joining dozens of other companies that have entered into similar agreements with Redmond.

“Note, however, that we’re not talking about Motorola Mobility, the Android smartphone maker that Google bought in 2011 and recently sold off to Lenovo.

“Rather, this is the other half of the old Motorola that was left after Google acquired the company’s consumer device business. You can think of it as analogous to the parts of Nokia that will be left over once Microsoft completes its gobble of the Nokia Devices & Services division on April 25.”

Here is the key part: “Typically, Microsoft keeps the details of its Android patent licensing agreements secret. In a blog post announcing the latest deal on Monday, it didn’t disclose what sort of payments Motorola Solutions would be making, although most such deals are believed to involve royalties.”

This is probably more to do with PR (promoting the idea that Android is infringing) and not much with actual payments, for the OIN’s CEO told us that deals like that mostly involve FAT patents and Google was abandoning ActiveSync, which was another extortion vector, a couple of years ago. Google probably knows what this deal really involves (it has many patent lawyers now) and quite sincerely we don’t think that this part of Motorola does anything significant with Android or Chrome OS. It’s more to do with PR for Microsoft, namely being able to name “Motorola” as part of the racket. It almost gives the racket some legitimacy because many associate Motorola with Google, Android’s patron.

Microsoft was unsuccessfully pursuing a similar deal with a Chinese rising giant, Huawei ((unlike ZTE but more like the part of Motorola now managed by Lenovo). Some years ago and the press reported about Huawei discussions and nothing has happened since then. It’s the one big fish Microsoft can’t get ahead of and enlist for the FUD campaign.

If this is Microsoft’s principal strategy, then it will find itself portrayed as a villain and a racketeer/criminal (correctly so), alienating many developers, OEMs and in turn losing focus on its own products (if any are left which are viable).

In short, when reading about this Motorola patent deal we should assume that it’s more noise than substance, and Microsoft continues its disgraceful, Free software-hostile campaign of intimidation. There is no “reform” at Microsoft, just aimless pursuit of aggression.

04.16.14

More Microsoft Subsidies to Patent Troll Intellectual Ventures

Posted in Bill Gates, Microsoft, Patents at 3:03 pm by Dr. Roy Schestowitz

Patent sharks still collaborate

Bill and Nathan

Summary: Microsoft hands money to Bill Gates’ close friend who is the world’s largest patent troll

WE recently explained that Apple and Microsoft were helping trolls and preventing patent reform in the United State. Intellectual Ventures, the world’s largest patent troll (funded in part by Microsoft and Bill Gates) was having financial difficulties, so guess who’s stepping in to the rescue, essentially subsidising trolling? Intellectual Ventures is said to have “persuaded Microsoft and Sony to invest in its latest acquisition fund” (of patents). Once again, as in Rockstar, Microsoft and Sony align in patent agenda and as Masnick puts it, “while many of the companies have indeed avoided giving IV any more money, it appears that Microsoft and Sony were quite happy to dump a lot more cash into IV, which has now ramped up its patent buying efforts again (as well as its lobbying and political contributions in an effort to kill off patent reform). Microsoft, of course, has always been close to IV, seeing as it was started by the company’s former CTO, Nathan Myhrvold, who is also a close friend of Bill Gates (who has directly helped IV get some patents). Similarly, Microsoft has become one of the most aggressive patent abusers over the last decade, increasingly relying on its stock of patents to make money from other people’s innovations, rather than innovating on its own.”

“This is racketeering by proxy.”Masnick correctly concludes that “via Intellectual Ventures and its own patent holdings, Microsoft seems to be trying to make sure Gates’ prediction is a reality. It all fits in to the same paradigm we’ve observed for years. When you’re young, you innovate. When you’re old, you litigate. Microsoft appears to have given up on innovation, but is ramping up on litigation, and re-investing in patent trolling via Intellectual Ventures is merely the latest step.”

This is racketeering by proxy. It’s part of the patent-stacking strategy which includes even Nokia and Apple. Bill Gates, which is a close partner of the world’s largest troll, has a lot to do with it. In a system where billionaires enjoy zero accountability jails are reserved only for petty ‘crimes’.

04.15.14

Apple and Microsoft Actively Lobbying Against Patent Reform in the US

Posted in Apple, Microsoft, Patents at 10:23 am by Dr. Roy Schestowitz

Summary: Apple and Microsoft are reportedly intervening/interfering with US law in order to ensure that the law is Free/libre software-hostile

HALF A DECADE after the Bilski case, where SCOTUS helped legitimise software patents by not striking them out, SCOTUS gets another chance to kill software patents in their country of origin.

The SFLC wrote about its role a few days ago, noting: “In each Supreme Court brief that SFLC has filed over the years we have included a little note on the first page declaring that the brief was made using only free software. This point was particularly important in our most recent brief, for a case named Alice Corporation v. CLS Bank, which was argued in front of the court last week. Our use of free software was particularly important this time because we argue in our brief that free software has been responsible for the major software innovations of the modern era. In partial support of that claim I want to show you our document creation process and tell you about the free software we use to take text from an email and turn it into a camera-ready Supreme Court brief, then a website, then an eBook.”

Watch how Microsoft and Apple work to eliminate the possibility that software patents or even patent trolls will be eliminated. As TechDirt put it some days ago: “Back in December, we noted that the House Judiciary Committee had approved an unfortunately watered-down, anti-patent troll bill. It was better than nothing, but we hoped that the Senate would approve a much stronger version. For a while it seemed like that was likely to happen, but… those who abuse patents are pretty damn powerful. Even those who have been hit by patent trolls in the past, like Apple and Microsoft, have decided to join forces in lobbying against meaningful patent reform. They’ve been pushing to water down the Senate’s bill, taking out nearly everything that would make the bill useful — and it appears that they’re succeeding.”

04.09.14

A Call to Ban/Stop Big ‘Patent Trolls’ Like Nokia, Microsoft, and Apple

Posted in Apple, Microsoft, Patents at 5:40 am by Dr. Roy Schestowitz

Patent stooges

Summary: Reporting in corporate media generally lacks focus on patent abuse by large companies, but Topix has a long noteworthy article

PATENT coverage has been scarce here recently because corporations won. They warped the debate in such a way that almost no articles criticise software patents anymore; the focus has been shifted to small trolls and politicians are, accordingly, ignoring the big issue, instead pursuing fake ‘reforms’ that hardly address any concerns, other than the concerns of big corporations (it’s like Obama’s so-called ‘reform’ of the NSA). Here for a change is a good Topix article titled “How to Really Fix Patents – and Why Congress Is Unlikely to Do It” (via Glyn Moody).

The article says: “The total loss to the economy caused by junk patents far exceeds $29 billion per year when one takes into account that big companies act like patent trolls too, by obtaining junk patents to keep out their competitors.”

It also states that: “The real costs of junk patents are easy to imagine when you consider some of the egregious patents that should never have existed to begin with. Patent No. 5,851,117 was granted in 1998 to a company for using an illustrated book to teach janitors how to clean a building. Clearly that is not such an original idea that it deserves to be patented. Luckily the economic impact of that patent was likely very minimal.”

And finally: “Patent trolls should be dealt with, but if big companies are able to continue to obtain junk patents for things that are not inventions and then act like patent trolls, then they will be able to continue to corner markets and ensure that new emerging technologies can’t compete with them.”

We recently wrote about Apple's "holy war" against Linux/Android — a subject that was mentioned by a lot of media [1, 2, 3, 4]. Nokia‘s patent deal with Apple, which had already cross-licensed with Microsoft for quite a long time (we have written about this triangle for a number of years), helped show how this “holy war” was going on. This new article states that “Nokia makes up about 80% of them [...] the vast majority of licensing fees Microsoft collects — about $15 per device — comes from the Finnish company. Those fees are about to become an internal exchange once the acquisition deal closes between the two companies.”

The ultimate victim will be Android. They are working on it.

To make matters worse, Microsoft and Nokia feed Android-hostile patent trolls like MOSAID, passing patents for no purpose other than harassment (patent-stacking).

This is trolling. The European authorities have already warned/reprimanded Nokia.

What needs to change right now is the debate. We need to reject the idea that there is this thing called “patent trolls” which basically means small companies with patents and that this alone is the issue with patents. There are much bigger issues.

04.05.14

SCOTUS Works For Plutocrats, But It May, For a Change, Axe Software Patents

Posted in Patents at 8:22 am by Dr. Roy Schestowitz

New gavel

Summary: Update on the Supreme Court (SCOTUS) case which can effectively end software patents where they originally came from

THE SCOTUS, like the USPTO, practically exists to serve corporations while claiming to serve people’s interests. We showed many examples of this over the years, especially when we closely covered patent matters.

SCOTUS has just proven, yet again, that it serves the interests of the top fraction of the top 1% of income earners — people who provide the majority of funding to political candidates [1,2]. Sen. Bernie Sanders says that SCOTUS undermines democracy by allowing billionaires to “buy elections”.

SOCTUS us losing the trust of US citizens. There is no question about it. Meanwhile, however, “Software Patents On [are] The Ropes In SCOTUS,” Robert Pogson claims, citing some recent filings/proceedings. Where is Groklaw when you need it? Having witnessed the Bilski case some years ago (famous case at SCOTUS), we are highly sceptical of the possibility that anything significant will happen. SCOTUS is typically doing what the corporations are asking for. As TechDirt put it the other day: “Four years ago, the Supreme Court had a chance to establish once and for all whether or not software was patentable. The Bilski case got all sorts of attention as various parties lined up to explain why software patents were either evil, innovation-killing monsters or the sole cause of innovation since the cotton gin and everything in between (only slight exaggeration). Rather than actually answer the question everyone was asking, the Supreme Court decided to rule especially narrowly, rejecting the specific patents at stake in the case and saying that the current test used to determine patentability (the so-called “machine-or-transformation” test) need not be the only test for patentability. However, it declined to say what tests should be used, leaving it up to the lower courts to start ruling blindly, making up new tests as they went along. And muddle along blindly they did — right up to the height of pure absurdism in the CAFC (appeals court that handles patents) ruling in the Alice v. CLS Bank case, in which every single judge disagreed with each other. The ruling was 135 pages of confused mess where all justices only agreed on a single paragraph, which (like Bilski) said this particular patent was invalid, but no one could agree why.”

Let’s wait and see if the SCOTUS can surprise all of us by effectively putting at peril all software patents (in one fell swoop). This is the most important thing for Free software. The Register has this new article about “More software patent silliness,” noting that in China there are software patent applications, e.g. one relating to Wine on ARM (we covered that a few days ago.

“The filing has irritated Wine contributor André Hentschel,” the author says, “who points to his code commits from 2010, and remarks that “from my point of view there are no facts in that potential patent that should be patented”.

“Whether that’s sufficient to block the Chinese patent application CN102364433 is another question.”

We need to stop software patents in the US before they spread further. The tendency is for US law to get exported to almost every continent.

Related/contextual items from the news:

  1. Supreme Court ruling on campaign contributions: More clout for the rich

    The wealthiest 1% of Americans will likely play an even larger role in elections following the Supreme Court decision Wednesday that freed rich donors to give as much as $3.5 million per election to the array of candidates running for Congress.

    The 5-4 decision struck down a Watergate-era limit that barred a single donor from giving more than $123,200 to congressional candidates every two years.

  2. Supreme Court strikes down aggregate campaign giving limits

04.02.14

Occupied by Lawyers It Hired, Google Now Reportedly Promotes Software Patents

Posted in Google, Patents at 4:03 am by Dr. Roy Schestowitz

Don’t do lawyers, Google

Suzanne Michel

Summary: The British press names companies which are promoting software patents in the United States and Google is one of them

WE WARNED ABOUT this years ago. Rather than fight for people’s interests when it comes to patents, Google hired some of the same people who fight for themselves and against people’s interests (making themselves necessary through patent battles).

How unfortunate.

Now that SCOTUS is looking into software patents (Joe Mullin is distracting from the real issue by focusing on patent trolls, as usual, except when he takes this other angle) we have a real chance to redeem software developers from greedy business monopolists and their guardians, the lawyers. According to this report, however, Google is among those who argue for software patents. Having HP in there is not surprising given the company’s history of patent PR. It is definitely not surprising to see Microsoft and IBM there; they are the leading and biggest proponents of software patents. The report says that SCOTUS “will hear from a consortium of technology companies today that have weighed in over software patents.

“Later today, nine US Supreme Court Justices will sit for one hour of argument by representatives from companies including Google, IBM, Microsoft and HP.

“The software patent standards that the companies are seeking vary, however they are all calling for tightening patent law to protect software implementation in their field.

“Suzanna Michel, senior patent consel for Google said in a statement to Bloomberg, “The fact that we have not policed this patentability requirement and have allowed the issuance of a lot of abstract, overbroad patents for doing business on the Internet — those patents have fueled this litigation.””

Google has a “senior patent counsel” (turns out it’s a former FTC official which AOL describes as one of “the commission’s top intellectual property officials” and whose education background confirms to be a laywer) and according to this report Google is now part of the problem, making the USPTO even more developers-hostile. Having read the original article, it is a little unclear whether Google actively promotes software patents (Michel speaks about business methods), but given Google’s track record of applying for and buying software patents — a trend we severely suffer from and have criticised — Google can no longer oppose software patents with a straight face. The press now claims that Google is actively harboring such patents. It’s the first time we see this. The author, Chris Merriman, cites this report from Greg Stohr and Susan Decker.

“Well, They can’t hide,” wrote Mr. Bosson from the FFII (Sweden), “Microsoft’s Amicus Brief is quite defensive for sw-patents, using EPO-style arguments to protect them.”

He quotes Microsoft, Adobe and HP as saying: “Software makes computing technology work” (so does silicon!).

“Only by looking at the each claim as a Whole,” is also what they say. “Just like EPO makes software patents OK,” Bosson remarks.

HP and Microsoft both did some nefarious things in Europe, as we have covered here in Techrights, so let’s not be misled by news that some HP laptops may come with GNU/Linux (in the UK) [1,2]. HP is definitely not a friend of Free software based on these policies; as for Google, it seems to be drifting away in its own trajectory.

Related/contextual items from the news:

  1. eBuyer Taking Pre-Orders for £219 Ubuntu HP Laptop

    While anyone living in China or India can walk into a store and buy an Ubuntu laptop off the shelves, those of us in Europe and the US find hunting down brand-name notebooks loaded with Linux a bit of a hassle.

  2. UK’s first Ubuntu laptop goes on sale at Ebuyer

    The HP notebook – priced at £219.99 and available at the end of April – will be the first computer of its kind to come pre-installed with the free operating system from Linux.

03.27.14

Another Reason to Boycott Dell: Support for Microsoft’s Racketeering

Posted in Dell, Microsoft, Patents at 11:12 am by Dr. Roy Schestowitz

Campaign of intimidation against Linux fueled by Dell, too

Dell monitor logo

Summary: The dying computer assembly company is joining a notorious attack on GNU/Linux as if it is trying to appease Microsoft rather than today’s generation, which increasingly embraces GNU- and Linux-based platforms

Last year we called for boycott of Dell and at the end of the year we gave more reasons for it. Dell had done a disservice to Free software for a number of years and in 2007 it joined the Microsoft/Novell deal, perhaps implying (but never explicitly saying so) that it will play a role in putting patent tax on GNU/Linux.

“Dell did not have to do this, but it chose to.”Now that Windows (Microsoft’s common carrier) is in real trouble because many users are exposed to crackers other than the NSA (to which Microsoft provides back doors) Microsoft is very much focused on trying to scare vendors (and people, who usually rely on these vendors) away from GNU/Linux.

Chrome OS is a GNU/Linux distribution, possible the most widely used of its kind, so Microsoft has been running attack ads (smear campaigns) against it. In addition, adding to reasons to boycott Dell (Microsoft took over at least part of Dell and it has been getting worse since), Dell is reportedly joining Microsoft’s extortion and intimidation campaign against Android and Chrome OS. Dell did not have to do this, but it chose to. “Without disclosing too many details,” writes Monika Bhati, “the companies said they have agreed to license each company’s applicable intellectual property related to three product lines: Android, Chrome OS and Xbox.”

Monika Bhati’s softball ‘article’ is just parroting claims from press releases without investigating any further or at the very least checking what’s true and what’s FUD. This article repeats the unsubstantiated claims that Microsoft makes billions of dollars this way, despite lack of any actual evidence (the real goal is to deter against GNU/Linux adoption). She is not alone in it and we need to stop this. This whole thing is typical cross-licensing, intended for the most to disguise the reality of finances, as in Novell’s case (I spent years of my life researching this, so I recognise these patterns).

One must wonder: where is OIN in all this? The OIN brags about adding Verizon to its ranks this week, but it does absolutely nothing to stop Microsoft’s racketeering campaign. The OIN’s CEO, whom I spoke to several times over the phone, is quote as saying: “We appreciate Verizon’s industry thought leadership in joining OIN and supporting patent non-aggression in Linux. We believe Verizon is a bellwether for other communications service providers from an open-source and intellectual-property perspective, and look forward to working with other carriers so they can similarly come to understand the benefits of participation in the OIN community and partake of this growing culture of patent non-aggression.”

Mr. Bergelt is quoted as saying that he is into “non-aggression in Linux,” so how come he does nothing at all to stop the racketeering against OIN members like Google? This is beyond useless and the OIN will never even lobby against software patents because its large members are in favour of them. Some of them are very much part of the problem.

People need to vote with their wallets. The Linux Foundation and OIN are not going to save or preserve freedom in GNU/Linux; they don’t prioritise this. One is a mutual pact not to sue and another is a branding operation (employing for the most part marketing and branding professionals).

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