Nathan Myhrvold/Intellectual Ventures is to Microsoft
what Sisvel is to Philips [1, 2, 3, 4, 5, 6]
When writing about Acacia, we were unable to show clearly enough its connection with Microsoft, but top-level appointments were made of Microsoft staff just days before they attacked GNU/Linux [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11] and also around the same time that patent threats were issued by Microsoft's CEO.
Nathan Myhrvold: The genesis of this idea was when I was at Microsoft. We had a problem with patent liability. All these people were coming to sue us or demand payment. And Bill (Gates) asked me to think about if there was a solution. This is what I came up with.
Over the past few years, the former Microsoft Corp. executive has quietly amassed a trove of 20,000-plus patents and patent applications related to everything from lasers to computer chips. He now ranks among the world's largest patent-holders -- and is using that clout to press tech giants to sign some of the costliest patent-licensing deals ever negotiated.
John Amster, one of two former Intellectual Ventures executives that formed RPX, said he will not detail the company's business model or customers until October. However he did say RPX will acquire patents in a broad range of technology and e-commerce areas, especially when the patents are being asserted or involved in litigation.
Former Microsoft exec Nathan Myhrvold has been collecting patents, extracting fees from technology companies via his company Intellectual Ventures. Is Myhrvold a patent troll with tech cred?
The Wall Street Journal has a long account of Myhrvold’s patent collecting efforts and how he is winning multimillion dollar payments from the likes of Verizon and Cisco. These payments are top secret material, but Myhrvold’s firm is the one reaping the rewards. Intellectual Ventures has more than 20,000 patents. In many respects, Myhrvold is just a patent trader. A few lawsuits could define him as a troll quickly though.
Unlike most other pure licensing companies, Intellectual Ventures hasn’t filed patent-infringement lawsuits to help force settlements. But the group lobbying on behalf of tech companies in Washington, the Coalition for Patent Fairness — which includes several companies that have been approached for licensing deals by Intellectual Ventures — says it is only a matter of time. “Since these thousands of patents only give [Intellectual Ventures] the right to stop others from making products, through lawsuits, it is obvious what they intend to do,” the group said in a statement.
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As with short sellers, large companies don't like plays that can shake them up and expose their inadequacies, and will spend large amounts to PR / lobby / legislate them away - and as any small player who has tried to enforce patent abuse by large companies knows, it's virtually impossible to win and ruinously expensive to fight. So in that respect, aggregation is a good thing. Its hard to tell from this article if its just part of the PR war or whether there has been a real step up in the shakedown.
--Steve Jobs (2006)
--Bill Gates, Microsoft
--Arno Edelmann, Microsoft Manager (2007)
Intellectual Ventures and its ilk are arguably the single biggest risk to America's continued leadership in technology and innovation. As dsquared elegantly put it in a comment here in May, the company might do a bit of R, but it doesn't do any D. Instead, it acts as a brake on any company wanting to do substantive R&D of its own, since there's a good chance Intellectual Ventures will have got there first, patented the idea, and then just decided to sit on it until somebody dares to violate it.
Although the contents of the agreement, including the specific financial terms, are confidential, the parties indicated that Microsoft is being compensated by Pioneer.
--Linus Torvalds, July 2008
Comments
aeshna23
2008-09-18 18:26:12
pcole
2008-09-18 20:25:00
Roy Schestowitz
2008-09-18 20:35:28
http://boycottnovell.com/2008/08/13/smithers-on-massive-msft-losses/
At the moment, over in IRC, we're discussing the financial frauds and mess that's blowing up gradually.
http://beranger.org/index.php?page=diary&2008/09/18/13/41/05-one-more-take-on-the-wall-street http://beranger.org/index.php?page=diary&2008/09/18/07/14/53-thursday-reading
BTW, I ought to have added that Nathan Myhrvold has openly expressed his FOSS disdain:
http://boycottnovell.com/2007/12/09/charlie-rose-nathan-myhrvold/