Bonum Certa Men Certa

Corporate Debates About Patent Trolls Versus Debates About Patents (or Software Patents in Isolation)

The issues most often overlooked by American corporate media

OpenSecrets slide
Image from OpenSecrets



Summary: A roundup of coverage about the menace which is patent litigation and the different angles chosen for tackling it

There is a perpetual disconnect and a considerable difference between what people want and what large corporations, which virtually if not practically control the US government, actually want. The large corporations want to see small companies/firms crushed, whereas the public in general wants to reduce spurious added costs, incurred by litigation and cross-licensing (shrewdly-disguised price-fixing by large corporations). The patent lawyers at some firm called "Armstrong Teasdale LLP" join the club of whiners over PTAB [1, 2]. They need to accept the rulings which crush software patents in the US, but they are in denial. Generally speaking, patents do not necessarily benefit the US, unless one considers in isolation smaller compartments of US commerce (patent lawyers or CEOs of large corporations). As a new paper's abstract puts it:



We use a detailed data set to estimate the costs and benefits of United States patents. To estimate costs, we combine data from Derwent Litalert with a proprietary dataset of non-practicing entity (NPE) lawsuits collected by Patent Freedom, and use an event study approach to estimate losses suffered by alleged infringers during 1984-2009. To estimate benefits, we combine patent data from the USPTO and EPO with financial data from CRSP and COMPUSTAT, and use market-value regressions to estimate the value of patent rents for publicly-traded US firms during 1979-2002. We find that costs exceed benefits overall and that the gap between costs and benefits has grown across time. Surges in the number of NPE lawsuits, lawsuits filed over Computers/Communications patents, and lawsuits brought against non-manufacturing, software and telecommunications firms contribute to the increase in the gap. Growth in costs outstrips growth in lawsuits, in part, because events in these fast-growing categories have higher-than- average per-event dollar costs.


There are leeches or non-producing players, which hurt customers a lot. According to this article, the "[p]olicy under President Obama is moving against aggressive assertion of software patents, posing significant long-term risk to the profitability of entertainment technology patent holder Rovi (ROVI)."

Whatever destroys trolls is good for the economy -- that is -- the collective economy which includes customers. Profit for businesses is the wrong yardstick to use if the businesses are ones of extortion, such as Intellectual Ventures. As Troll Tracker put it: "What’s going on is, as the issue of patent trolling attracts more and more attention in the mainstream media, the message is getting diluted and the waters are getting muddied." There is also this observation about Lodsys:

Intellectual Ventures (Might Be) Tied To Lodsys: Wait, What?



[...]

It’s a proxy fight, and if Lodsys is successful in getting Mhyrvold to testify, something to that effect will surely come out. No wonder he’s fighting it so hard, he’s trying to avoid exposure. Trolls? This is what happens when you garner FTC attention.


We covered this earlier this week. We also covered the issue in prior years. Lodsys had received patents from Intellectual Ventures, which we know to be using about 2,000 pseudo-companies as litigation proxies. This is a pyramid scheme and part of an extortion racket, wrapped in a riddle and a whole legion of lobbyists.

"Lodsys had received patents from Intellectual Ventures, which we know to be using about 2,000 pseudo-companies as litigation proxies."Mark Bohannon, the Vice President of Corporate Affairs and Global Public Policy at Red Hat (in other words, a chief lobbyist), ought the know the pain caused by trolls like Acacia (it got money from Red Hat several times). Bohannon says that the "House Judiciary Committee Chairman Bob Goodlatte and a wide variety of witnesses highlighted the PAE problem in hearings last winter. Senate Judiciary Committee Chairman Patrick Leahy is working with Chairman Goodlatte and committed to working in a bicameral and bipartisan way to counter what they term 'patent trolling,' which "casts a pall on the system because it hinders innovation.""

He also says: "A number of key issues "left on the cutting room floor" during consideration of the AIA—including the current unreliable, uncertain, and speculative method of calculating damages, correcting the standard for finding willful infringement, and venue—remain important elements of our broken patent system that play to the hands of PAEs and encourage abusive patent litigation.

"While action in these areas remains important, they are absent from the current legislative agenda. Given the widening attacks by PAEs, it is essential that Congress work to produce meaningful legislation on at least the issues identified above in order to begin to stem the tide.

"With many of the key players in Congress—joined by the Executive Branch—rowing in the same direction, let’s look for an updated draft of the House Judiciary bill that enhances its 'first step' proposal. And the Senate Judiciary Committee is well positioned to put forward a robust measure that builds on (and incorporates) the bills introduced by Senators Cornyn and Schumer."

"Get rid of the patents to resolve the issue."The problem is, the White House is still tackling the symptom, not the disease [1, 2, 3, 4]. Those bills are hardly the solution, they tackle a symptom really, one among several symptoms which they mostly fail to address. Todd Bishop, a Microsoft booster, shows Google acquiring more privacy-infringing ideas, which is a problem in itself.

MariaDB, which recently joined OIN and OSI, will remain vulnerable to trolls and as the Oracle case against Google taught us, OIN membership is not enough to dodge litigation from giants, either. Get rid of the patents to resolve the issue. The large corporations are definitely part of the problem, but the White House is literally funded by many of those companies, so don't expect reform in that domain. Expect the White House to go after smaller players, those that opportunistically sue many large companies. This one new example says that "ArrivalStar sued more than 200 companies and cities over bus-tracking patents." Patent trolls like ArrivalStar are a problem, but they are not the only problem and when one looks at the actual patent, then it becomes clear that patent scope is the issue, not the plaintiff per se. As we saw many times before (e.g. Oracle, Apple, Microsoft), large corporations use equally ridiculous patents to extort other companies. According to this post, a troll we wrote about before is still busy in Texas, suing large corporations' clients, so those large corporations get involved:

Earlier this week, we provided an update on the multitude of WiFi-related infringement lawsuits brought by non-practicing entity Innovative Wireless Solutions LLC against various hotels and restaurants in Texas, noting that IWS had dismissed these suits (albeit without prejudice). We had discussed that this was a decidedly “un-Innovatio-like” turn in the cases — but yesterday brought a development that makes this series of disputes much more like the ones in the Northern District of Illinois involving Innovatio: Cisco Systems Inc., a supplier of WiFi equipment for many of the hotels accused of infringement, got involved. And Just like it did with Innovatio, Cisco here filed a declaratory judgment action against IWS, seeking declarations of invalidity and non-infringement as to IWS’s three asserted patents.


It is not easy to kill patent trolls, as Gene Quinn's recent piece indicates. Trolls cannot be sued, so it takes collective effort. The chairwoman of the FTC speaks about predatory tactics of patent trolls. To quote: "At an event co-sponsored by CCIA, FTC Chairwoman Edith Ramirez announced that she would be asking the Commission to institute a Section 6(b) investigation of the patent troll business model. Senator Leahy also sent Chairwoman Ramirez a letter today, encouraging the FTC use its powers “to prevent unfair and deceptive trade practices in patent infringement allegations.”

"It is those large corporations which probably do far more damage than the trolls and the remedy lies within patent scope."Edith Ramirez should ask her colleagues to look at patent scope rather than the nature of firms that sue large corporations. It is those large corporations which probably do far more damage than the trolls and the remedy lies within patent scope. Don't expect any real reform in a nation where large corporations have politicians and government agencies in their pockets. Both political parties (including members of Congress) are controlled and bankrolled by the same large corporations, some more than the other. Always ask yourself when the White House debates trolls or some Congressperson brings up the subject, who are those people funded by? Also, notice who is backing all these pushes against trolls in the corporate sector. As always, money makes the world go round and large corporations are still writing everyone's policies. The public deserves better than that. The corporations-controlled and corporations-run USPTO will continue to grant more patents than ever before (i.e. more profit), it's just that those capitalising on those patents (monopolies) will be fewer and larger. Those patents are not there to encourage innovation, they are there to justify increases in prices, eternally-forbidding commoditisation, e.g. generics in medicine.

Recent Techrights' Posts

Links 27/03/2026: Studying Whale Births, Apple is Cancelling Products, Cambodia Arrests Journalists Over Photographs
Links for the day
Perpetual Strikes to Begin at European Patent Office (EPO), Large Majority Votes for Strikes Any Day of the Week
Approved industrial actions [...] Notice how none of the media or even so-called 'IP' blogs write about it
 
"Headcount" as Distraction From Mass Layoffs and Salary Reductions
Things aren't looking well when one considers revenue is acquired, not earned
"Linux" Slop Turning Rarer, New York Times Nowadays Contaminated With LLM Slop
Another day has passed without much slop about "linux"
Gemini Links 27/03/2026: GTD, Gopher Catchup, Gemini Crawlers, and "Slop Everywhere"
Links for the day
Mozilla Was Ruined Like Sirius Open Source Was Ruined - From the Top Down
Mozilla will never return to its Free software roots
Nokia Could Never Recover From Microsoft
It's very important to remember what really happened
Why Techrights and Many Other Sites Stopped Doing April Fools’ Day Articles
Well before slop (made by LLMs) it was "bad optics" to have satire or humour in a site, irrespective of the day of the year
President Not-Cocaine Campinos Notified of Historic EPO Strikes (Thousands of Workers Not Coming Back to the Office)
Please do pay attention to how the media treats these strikes in Europe's second-largest institution
Slides From the Presentation Discussing EPO Strikes Until End of June or Until End of 2026 (Maybe Next Year Too)
More to come soon (later today)
IBM Cuts Are Everywhere (Global), the Aim is to Lower the Pay
Because the revenues keep falling (IBM buys other companies' revenues using borrowed money)
Mozilla is Not a Privacy Company, Mozilla is Run by GAFAM Executives and Managers Who Came From American Surveillance Companies
Would you trust a VPN they claim to be "free"?
SLAPP Censorship - Part 25 Out of 200: That Time Matthew J. Garrett Got Temporarily Banned/Suspended From Twitter
That he gets banned from large social control media platform is hardly surprising given his combative communications
Ubuntu Started as Free With ShipIt, Now It Becomes Payware That Exploits Debian Volunteers (Slaves)
"Ubuntu" the distro now replaces the GNU components inherited from Debian with a bunch of Microsoft GitHub (proprietary) things that reject reciprocal licences
Last Night The Register MS Published a Fake Article. It Mentioned "AI" 27 Times.
Paid-for nonsense! [...] What's left of once-respectable news sites actively harms society
Links 27/03/2026: Google Executive (GAFAM, US, Surveillance) "Named the New BBC Head", Prominent Climate Scientist Resigns From NASA
Links for the day
Gemini Links 27/03/2026: "Being Busy" and "Posting Again"
Links for the day
GNOME Has No "Real" Executive Director, Only an IBM (Perma)'Interim' One With No Openings in Sight
GNOME is having financial problems
Microsoft Experiencing "Leadership Exodus"
Microsoft's current position is no better than Meta's (Facebook)
GNU/Linux Distros Should Reject "Age Verification" and Uphold Software Freedom for Users
It's not about protecting children
Slop Plunge
we can already "smell the blood" of the so-called 'AI industry'
IBM Media Puff Pieces While Layoffs Go On and On
Has the PR industry absorbed the press?
Media Says Microsoft Hiring Freezes, But There Are Already Microsoft Layoffs
They want the public to talk about Microsoft as if it's just not hiring when it is actually firing
Richard Stallman lynchings: Sruthi Chandran splitting Debian
Reprinted with permission from Daniel Pocock
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, March 26, 2026
IRC logs for Thursday, March 26, 2026
Links 26/03/2026: Tor Relay at National Taiwan Normal University, Copyright Hammers Fall
Links for the day
Gemini Links 26/03/2026: "The War of the Worlds" and "sometimes science is just the dumbest thing"
Links for the day
The World Wide Bots
The shape of the Web is so bad that bots exceed humans in some places
Links 26/03/2026: Solicitors Regulation Authority (SRA) Closes 101 Law Firms in 2 Years, "Please Compensate the Work You Appreciate"
Links for the day
Regaining Software Freedom Means Regaining Control Over Programs That Run on Our Devices
Richard Stallman will speak in Italy
Microsoft Secure Boot Removes Users' Choice
Has Greenland banned Microsoft and 'secure' boot yet?
IBM Pushes Workers Out, It Does Not Count Them as "Layoffs"
The number of IBM layoffs can be as large as tens of thousands per year
Hard to Find a Job After Working for Microsoft (Back Doors Giant, Bribery Hub)
It generally looks like people who chose to serve Microsoft's agenda don't end up too well
Microsoft Lost 31% Of Its Alleged "Value" in Five Months, Then It Got Downgraded
In 2026 Microsoft focuses on keeping the layoffs silent
Altering Perceived Reality to Make It Seem Like Microsoft is Thriving, Not Failing
pretend XBox did not die
SLAPP Censorship - Part 24 Out of 200: The Failed Effort by Brett Wilson LLP to Strike Out My Lawsuit and My Wife's Lawsuit Against Garrett (the Master Allowed Our Lawsuits to Proceed)
This is lawfare
Official New Figures Show That Solicitors Regulation Authority (SRA) Sees Rise in Dishonesty Among Law Firms Forcibly Shut Down ('Euthanised' Due to Misconduct)
It's rather if in our little country as many as 16 law firms were found to be so dishonest that they needed to be shut down
Back to Normalcy
In our datacentre at least
IBM is "Increasing Its Temporary and Part-time Headcount" While Net Headcount Falls (Despite Buying Many Companies and Their Workforce)
Headcount is a rather superficial yardstick.
Confluent Insiders: IBM Laid Off Over 800 at Confluent, Not Just 800
For the record, the layoffs at Confluent won't be over. After the bluewashing there will be "IBM RAs" impacting Confluent folks, aside from PIPs
EPO Union Decides to Continue Industrial Actions, Next Strike in Four Days
The latest strike had the highest participation rate
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, March 25, 2026
IRC logs for Wednesday, March 25, 2026
Microsoft's "Silent Layoffs" in Slop Clothing
"AI-powered transformation" is just a euphemism for mass layoffs
Where and How to Spot LLM Slop
Many people correctly perceive LLMs as a site's downfall, a step towards the abyss
Public Talk by Richard Stallman in Half a Day "at the Engineering and Architecture Campus of Cesena of the University of Bologna"
He'll probably attract a fairly large crowd
Gemini Links 26/03/2026: Buying a House, Stargazing, OFFLFIRSOCH 2026
Links for the day
Links 25/03/2026: Nations Return to Russian Oil and Burning Wood
Links for the day
Gemini Links 25/03/2026: Resisting Authoritarianism and Why Slop Needs to Go Away
Links for the day
Fedora Maintainer-ship Using Slop (Mistakes) Would Make Fedora Less Reliable
It won't produce reliable code or stable systems one can rely upon
IBM's "Legacy Employees" (Experienced Workers, IBM Management Dubs Them 'Dinobabies')
This notion of "legacy employees" seems like something overlapping with "expensive" (well paid) staff, even if not entirely equivalent
EPO's "Current Industrial Actions Are Likely to Intensify Further."
There is another strike in 5 days
This Morning The Register MS Published Slop Promotion With the Term "AI" 15 Times In It. The Register MS Was (As Usual) Paid to Do This
This is not a serious publisher
SLAPP Censorship - Part 23 Out of 200: We Were Right All Along (for 2 Years) About Third Party Funding and Willingness to 'Break the Bank' in Pursuit of "Revenge"
How much damage can a person do to oneself in pursuit of cover-up of legitimate technical concerns?
Gnome Foundation Inc is in Trouble
the agenda is set GAFAM and IBM rather than donors
Links 25/03/2026: Airports Further Militarised, "Slopification and Its Discontents", Microsoft 'Open' 'Hey Hi' Shutting Things Down
Links for the day
Gemini Links 25/03/2026: Blogging Fright and Absolutely Useless 'Apps' Made by Slop Machines
Links for the day
Rise in Energy Prices Will Significantly Accelerate the Death of So-called "AI Companies"
It should be noted that fake news about Microsoft OpenAI doubling workforce (mere words, not actions) can serve as a nice distraction from the death of Sora due to divestment
It's Always a Question of Trust
There's a widespread stigma of lawyers being manipulative and chronically dishonest
Solicitors Regulation Authority (SRA) Must More Carefully Investigate or Assess the Financial State of Law Firms in the UK
We'll cover this in depth in the future
GAFAM Mozilla Removes Theora Support, Now GNU Needs to Re-encode Videos
Mozilla used to mean something to Free software advocates
An Open Admission Profits Depend on Addiction
Proprietary software tends to be like this
IBM Americas President Ayman Antoun Comes to OpenText, Weeks Ahead the Mass Layoffs Begin
Is that what IBM will be good at?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, March 24, 2026
IRC logs for Tuesday, March 24, 2026