Summary: News about software patents that affect Free software and Android developers in addition to the increased backlash from the public and some people inside government
TECHRIGHTS is pleased to see the opposition to software patents growing. More people are made aware of the problems and they also speak out about these problems, sometimes passionately. Sooner or later we might all win this fight for sanity. It's definitely achievable if the population is on the right side and those in power (the monopolists, oligarchs, or whatever we may wish to call them) will perform an analysis and realise that the backlash from the public outweighs the benefits (protectionism) they get from software patents. It would not be a simple matter of altruism as that alone is never enough to make power-greedy people become more civilised and considerate.
Enemies of Google, the world's largest open source company, are acquiring software patents after patents through direct or proxy acquisitions. Earlier it was Novell's patents and now its about Nortel's patents. The companies which are acquiring these patents are not only known monopolists or abusers but have also been seen lately to discourage innovation and kill competition by using patents as threats.
One common player in these two acquisitions is Microsoft, a company which earlier tried to hide behind a consortium to acquire Novell's patents.
Microsoft has signed 5(+-) deals in a week with small Linux players over Android/Google Chrome. The details of the deals were not disclosed so we don't even know which patents Microsoft is using to threaten small companies with lawsuits forcing them to sigh such deals.
What is the guarantee that Microsoft or Apple will not use the patents that they acquired through these acquisitions to block innovation and kill competition in the market? Patents were meant to protect the inventor, but softrware patents are nothing more than a way to kill competition.
According to a report today by The Canadian Press, the auction may come under government scrutiny. Industry Minister Christian Paradis has reportedly asked his department to examine how the Investment Canada Act could apply to the auction. If the auction us found to be reviewable under the act, Paradis could potentially block the sale if it's found to not be a “net benefit” to Canada.
Last year the big news was that Attachmate was buying Novell, but that Novell's patent portfolio was being sold separately to a little known buyer named CPTN Holdings LLC. It was known that Microsoft was one of the companies behind CPTN, but then it came out that CPTN was not just a single company, it was a consortium, and more importantly, it was a consortium of competitors. Included in the CPTN fold were Microsoft, Apple, EMC and Oracle. Their common enemy? Google.
But Google was not the only entity concerned about this alliance of the largest companies in the information technology sector, almost all of which compete with each other on some level. The Free Software Foundation and Open Source Initiative filed complaints with competition authorities in the U.S. and Germany. In the end German and U.S. competition authorities extracted changes in the transfer, ownership, and licensing of the Novell patents to assure a level playing field that allowed room for free and open source software.
New legislation shows how much sway banks have over Congress, writes Andrew Ross Sorkin.
WALL Street often tries to play down its influence in Washington. As the US Congress pushed through financial regulations that seemed to get watered down last year, Wall Street's chief executives tried to suggest, somewhat surprisingly, that their highly paid lobbyists did not have much sway.
If there is still any question about how much power Wall Street actually has in Washington, here is some fresh evidence worth examining.
In a piece of legislation recently passed by the House of Representatives and the Senate to revamp patent law, a tiny provision was inserted at the last minute called section 18. The provision has only one purpose: to allow the banking industry to skirt paying for certain important patents involving ''business methods''.
Google Inc. (GOOG)’s loss in bidding for the $4.5 billion portfolio of Nortel Networks Corp. patents last week means the Internet-search company will be looking to buy other inventions to build a bulwark against lawsuits targeting its Android system, patent brokers said.
“There are a lot of phenomenal portfolios for sale,” said Dean Becker, chief executive officer of ICAP Patent Brokerage in Palm Beach, Florida, the world’s largest patent seller. “Every operating company is in the market because of the expense, distraction and the potential financial risk of patent litigation.”
Another day and three new declaratory judgment actions against Lodsys with respect to the four patents it has been asserting. While one of the three new actions is in the Northern District of Illinois, where several of the other declaratory judgment actions have been filed, two of them are in new venues - one in Arizona and one in the Southern District of California. This changing of venues is important. While Lodsys may seek to consolidate the cases in the Northern District of Illinois for the sake of efficiency (and saving Lodsys attorney's fees), Lodsys will likely have to defend in each of the other jurisdictions where a declaratory judgment action is filed, thus increasing the cost of defense as local counsel is retained in each case.
I always advise software startups to file patents to protect their “secret sauce” from competitors, and to increase their valuation. The good news is that a patent can scare off or at least delay competitors, and as a “rule of thumb” every patent can add up to $1M to your startup valuation for investors, or for M&A exits (merger and acquisition).
The bad news is that patent trolls can squeeze the lifeblood out of innocent and unsuspecting entrepreneurs, as exemplified by the current mess around Lodsys patent No. 7222078. This patent holding company is charging infringement and demanding royalties from every app developer for the iPhone and Android, for a feature most agree has been in apps for many years.
Yes, the software patent process is a mess. I say this with conviction even after I survived the process, and have a software patent pending. Consider this list of commonly recognized software patent flaws, as summarized from my research, Paul Graham’s “Are Software Patents Evil?” essay, and the most recent “Enough is Enough” article by VC Fred Wilson, sparked by the Lodsys case
According to AP, the lawsuit centres on patents involving software and electronic components that are used in features to make phone calls, play music and access navigation tools with vocal commands.
Comments
Needs Sunlight
2011-07-08 07:57:41
Dr. Roy Schestowitz
2011-07-08 08:42:30
Google needs to decide what type of company it is.