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

Social Control Media and GAFAM as National Security Threats (Domestically and More So Abroad)
"Algorithms control messages, swayed 2024 presidential election"
 
Links 09/05/2026: "Grand Theft Oil Futures" and Mass Layoffs at Verizon
Links for the day
Gemini Links 09/05/2026: Inkscape "Copy Text Style" and NomadNet
Links for the day
The Corrupt Lecture the Non-Corrupt - Part XVII - European Patent Office (EPO) Management Not Sharing Responsibility for Financial Resources
For those who wonder, EPO strikes are still going on
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, May 08, 2026
IRC logs for Friday, May 08, 2026
Gemini Links 08/05/2026: Slop Falsely Marketed to Greedy Administrators and New Official Maintainer of Antenna Confirmed
Links for the day
Links 08/05/2026: French Prosecutors Seek Charges Against MElon, Europe Wants Young People Without Skinnerboxes (Smartphones)
Links for the day
2,000-4,000 More Layoffs Expected at IBM's Kyndryl, Some Say Over 10,000 Layoffs
They use euphemisms like "restructuring" or "rebalancing"
Gemini Links 08/05/2026: Dissociated Pride and Prejudice, Smallnet Protocols Roundup
Links for the day
Links 08/05/2026: Slop Profiteer NVIDIA (and Circular Financing/Accounting Fraud Leader) May Be Liable for Mass Copyright Infringement, Kyndryl (IBM) Layoffs
Links for the day
Outgoing OSI Chief Was Paid by Microsoft to Advocate for GPL Violations (Using the OSI's Name). Now, Inside OIN, He Says GPL Violations Are 'Freedom'.
It seems like only compromised people can be "allowed" to run today's OSI
SLAPP Censorship - Part 70 Out of 200: Microsoft's Graveley Injunction Request 100% the Same as Garrett's (Pure 'Copy-paste', Not Even a Word or Single Character Changed!)
Not so funny at all
Over 97% of the 'Linux' Foundation's Budget Goes Not to Linux
There is a term for this: mission creep
Cloudflare is a Giant Pile of Debt, Now There Are Mass Layoffs and Media Coverage About This is Churnalism, Sometimes by Slopfarms (False Excuses)
If Cloudflare goes under, it'll be great news
NDAs as a Price Tag on Criticism (or Honest Expressions of Opinion)
What ever happened to accountability? Suppressed by reverse bribes (via NDAs)?
Internal Microsoft Communications Confirm: "Buyout" Offer Worse Than a Year's Salary and Microsoft Offers "Retirement" to Young People Who Cannot Retire
Does that sound like a good offer or marching orders?
It's Not a GAFAM World Anymore and There Are Far More Operating Systems Than Google's, Apple's, and Microsoft's
we're not getting the full picture of what's happening
Site Overhauls at Cybershow and at analognowhere.com (Less is More!)
They seem to be replacing the heavy PHP backend with static HTML pages
Microsoft's XBox is Going Away Like Microsoft's Skype (Slowly But Surely, Then All at Once)
XBox is dying rapidly
Codecs and Software Patents - Part IV - Things Got So Bad That Some Laptop Sales Got Banned in the EU (Over Software Patents!)
If software patents lead to such severe outcomes, shouldn't the media pay closer attention to the problem?
The Corrupt Lecture the Non-Corrupt - Part XVI - EPO Had Data Breaches, Covered Them Up, Now Lectures Staff That Didn't Do It and Didn't Cover It Up
Imagine what would happen to staff if (non-anonymously) blowing the whistle on management leaking and then covering up EPO data breaches
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, May 07, 2026
IRC logs for Thursday, May 07, 2026
Mass Layoffs at IBM's Kyndryl, Slop Won't Save Kyndryl
Kyndryl is a "done deal". It's done. It's finished.
Kyndryl Holdings Inc Falls Almost 15% in 2 Days, What Does That Tell Us About IBM?
The "Big Blue" 'shell game' isn't working
Companies That Say They Are "Hey Hi" (AI) Leaders Don't Really Do Well, They Have Mass Layoffs Because Hype and Storytelling Won't Live Up to Shareholders' Expectations
Microsoft's investment in slop is not going well
Gemini Links 07/05/2026: Unicode and "RSS 4 Noobs (Getting Started)"
Links for the day
During IBM's Annual Event/Bash IBM's Stock Fell to (Almost) Lowest Level in a Year, Insiders Explain "IBM is on the Brink of Collapse."
Anthropic - like IBM - pays the media for puff pieces, exaggerations, and obvious vapourware
Servers Became "Cloud", VR Became "Metaverse", Now Bots Become "Agents" (of Slop)
Changing the name of things won't prevent rejection, only delay the negative reaction some more
Links 07/05/2026: "The ‘Perfect Storm’ Hanging Over Britain’s Public Debt" and "Internet Shutdowns Spread in Africa"
Links for the day
OSI Partners With Microsoft to Help Pretend Proprietary (GitHub) 'Celebrates' Open Source
And a Microsoft operative announced this as well
Links 07/05/2026: "Most Vibe-coded (Slop) Tools Are Not for You" and "Prepare for the PCB Shortage"
Links for the day
SLAPP Censorship - Part 69 Out of 200: Microsoft's Graveley Strangles, Gets Arrested, Charged, Then Asks for Apology From Those Who Reported It by Recycling Garrett's Plea for Apology
Garrett realised that his "funny" lawsuit wasn't so funny anymore
Codecs and Software Patents - Part III - AOMedia Video 1 (AV1) and Antitrust Issues
As we'll show in later parts, this already results in bans of some hardware sales in Europe
The Corrupt Lecture the Non-Corrupt - Part XV - Talking About Responsibility and Accountability While Failing to Hold Themselves Accountable
what outlet is there for justice or for the Rule of Law?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, May 06, 2026
IRC logs for Wednesday, May 06, 2026
Gemini Links 07/05/2026: Dissociated Jekyll And Hyde, New Antenna 2.0.0
Links for the day