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

EPO President to Meet the Union, But He Needs to Resign
Colleagues or workers of the EPO have only just been told that the boyfriend of the sister of "Cocaine Communication Manager" will be talking to the union (SUEPO) tomorrow mornin
SLAPP Censorship - Part 54 Out of 200: Alex-Matt/Automate Twin Cases, Separated at Birth, Drafted by Brett Wilson LLP and 5RB
Perhaps their solicitor K.C. (not the legal title) sought actual redemption and followed the Cross, not the dagger
When Peak Oil Isn't Just "Alarmist Propaganda"
the current conditions favour less consumption
'Nuclear Winter' at Microsoft This Summer?
At Microsoft so far this year there have been many layoffs, but the company tries to keep them secret
EPO Cocainegate Escalates - Part IV - António Campinos Allegedly Sleeping With Sister of "Cocaine Communication Manager" Luis Berenguer to Secure Third Mandate
Based on our understanding, "the f---ing president" Campinos - to quote rather than merely paraphrase his description of himself - is dating Ana Berenguer, sister of "Cocaine Communication Manager" (Luis Berenguer) and daughter of another Luis Berenguer, a friend of the late Jorge Campinos (António's father)
Clownflare (Cloudflare) and the 'Ecosystem' It Wants to Replace
Vercel & Next.JS Hacked - Nothing New to Report
 
Upcoming Mass Layoffs at Microsoft Not Limited to Gaming/XBox
from Microsoft staff
What Could Run the World Instead of "Linux"
Had it not been for GNU (the software, the licence, the compiler GCC), we'd probably not have Linux and perhaps BSD would be more widespread (no copyleft, so expect proprietary derivatives)
IBM's Shares Have Just Collapsed Again as a Result of the Phony 'Results'
Of course all the so-called news is shallow parroting of IBM or "churnalism" void of real analysis
Gemini Links 22/04/2026: Movies, Vim, and Bash
Links for the day
International Business Machines Corporation: Paying Peanuts, Getting Monkeys
they don't pay enough to retain key people
No, Finding Security Bugs Takes Time and Care (Human Touch, Real Grasp of Real Code)
This too shall pass
Move to GNU/Linux, Save This Planet
If you are an environmentalist, it's hard to justify still using stuff from Apple or Microsoft
Combatting Racist Abuse
Take racism seriously
They've Failed to Ruin Our Community, But They Still Try
The cost of liberty is not zero. The cost of it can be supremely high.
IBM "Results" as a Smokescreen to Distract From Mass Layoffs at IBM Every Month in 2026
How can we as a society function if we do not get properly informed and educated about what goes on around us?
Links 22/04/2026: LLM Slop "Damaging Users’ Cognitive Abilities", UK-based Publishers Urge CMA to Curb Slop-Wielding Plagiarists Like GAFAM
Links for the day
Today, or Tonight, Look for What IBM is Hiding, Not What It's Telling Shareholders
It shapes the narrative while cooking the books
Brett Wilson LLP Working for Racists and Losing (at the Same Time It Works for Men Who Assault Women in America)
Brett Wilson LLP is basically attacking whistleblowers
The Corrupt Lecture the Non-Corrupt - Part IV - Demanding Respect From Those You Are Attacking and Robbing
"literature" aimed at staff looks increasingly comical, hypocritical, one might say inappropriate
What It Will Take for More Nations in Europe to Move Fully to GNU/Linux
It would be false to say that France is hostile towards the US
Gemini Links 22/04/2026: Voyage into Cheapness, Heat and Pressure in a Contained Ideal Gas, Tidepools
Links for the day
Links 22/04/2026: YouTube Deletes Channels to Promote US Hegemony, "Kash Patel’s Defamation Suit Against The Atlantic Is Designed To Generate Headlines, Not Win In Court"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, April 21, 2026
IRC logs for Tuesday, April 21, 2026
Gemini Links 21/04/2026: Drinking, Gardening, and Politics
Links for the day
SLAPP Censorship - Part 53 Out of 200: The Lying Solicitor of Alex Graveley Left Brett Wilson LLP Only Days or Few Weeks After the Garrett Trial (Attended by Almost Their Entire Office/Team)
They kept trying to get us to settle
Financial Misery: The Failures of the Solicitors Regulation Authority (SRA) to Regulate Have Cost Many Thousands of Brits Over 50 Million Dollars (Stolen, Embezzled, Defrauded)
There's plenty of revolving doors-like activity
There Are Still Many Debian Developers (Alternative to IBM)
Some Debian Developers are on Microsoft's payroll
Sense of Panic at Microsoft, the Slop (for "Entertainment") in Windows is Backfiring
We'll probably find out soon
The Register MS Has Just Published Another SPAM 'Article' for Slop Grifters. It Says "AI" 33 Times!
The Register MS is not a good publisher
Apple's Last Leader Died After He Had Been Sacked by Apple
Cult-like worship leads to dictatorships, not redemption from dictatorships
Microsoft Lunduke Never Liked Free Speech
Microsoft Lunduke does not speak truth to power. He farts words to 4Chan "bros"
"Linux" Sites That Knock Themselves Out by 'Pivoting' to LLM Slop
People don't need like 100 "Linux" sites to follow, only a handful that they can truly trust
The European Patent Office (EPO) Needs More Scrutiny, Contact Your Officials Tonight or Tomorrow
The European Patent Office (EPO) or the European Patent Organisation (also EPO) are disgracing Europe and the European Union (EU)
Slop in "AI" Clothing is Such a Miserable Failure That IBM is Allegedly Firing Entire Teams That Do Slop (the Media Didn't Report This; It Said the Opposite!)
Gaslighting, lying media that engages in deceit will not outlast this bubble
Huge Microsoft Layoffs Coming Shortly (With Financial Report)
There will be lost of slop layoffs. Be ready. It's a bubble.
The Corrupt Lecture the Non-Corrupt - Part III - "Ethics" Explained by Unethical People, Lots of Buzzwords Included
Imagine being the person (or PR agency) that wrote this with a straight face, possibly commissioned by some frequent cocaine user who runs the Office
Gemini Links 21/04/2026: Dystemia, Protocol Group Chat Gone Wrong, and More
Links for the day
Links 21/04/2026: Drunken Kash Patel Sues The Atlantic for Reporting, California Accuses Amazon of Price-Fixing
Links for the day
EPO Cocainegate Escalates - Part III - Connected Families - The Cocaine User Luis Berenguer and António Campinos
not just bromance between Luis and António
FOSS Linux (fosslinux.com) Has Become a Slopfarm
Slopfarming is the last incarnation of sites that die or are dead
Gemini Links 21/04/2026: NeoVim, GeminiMDB, and Another New Gemini Client (Called Titan II)
Links for the day
Links 21/04/2026: Internet Shutdowns, Bluesky Crippled by DDoS Attack
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, April 20, 2026
IRC logs for Monday, April 20, 2026
3,400 Gemini Capsules Accessible and Known to Lupa, A Geminispace Crawler
We're about to exceed 3,400 some time soon
When and Why I Quit Writing "Classical" GNU/Linux Advocacy Articles
I'd love to write more about why GNU/Linux is great [...] We always try to cover unique issues and break stories (exclusives)
IBM Had Mass Layoffs Every Month This Year (Including at HashiCorp, Confluent, and Red Hat), 'Results' Due in 2 Days' Time
IBM's "media partners" seem to be engaging (propaganda and puff piece) ahead of the serenade to Wall Street
Dr. Andy Farnell on Privacy Failings and Shallow Media Coverage
Bad media paves the way for failed societies
Gemini Links 20/04/2026: Fahrenheit 451, Small Web Advocacy, and Offgrid Holdout
Links for the day
Debian Has a New Project Leader (DPL)
We plan to upgrade Debian some time this month
This Morning The Register MS Published SPAM With "AI" 36 Times in It. This is What The Register MS is Paid to Publish.
It's selling out to Ponzi schemers
Links 20/04/2026: Chatbots Motivate Manslaughter, GAFAM’s ‘Tobacco Moment’
Links for the day
Throwing Rocks in Houses of Glass
Lots of "virtue-signalling" against ICE
The Corrupt Lecture the Non-Corrupt - Part II - It's About Politics, Not Science
Tomorrow we'll discuss what the cocaine proponents (or apologists) deem to be "ethics"
SLAPP Censorship - Part 52 Out of 200: Phil Golding Appointed Bar Standards Board (BSB) Chief, Misogyny Must End
How many rules will they "bend" or even breach?
Links 20/04/2026: Brave Origin Nightly, Scuttling USAID Gives 'Soft Power' to China, and White House Gives Money to Russia (Through Oil Sales)
Links for the day
EPO Cocainegate Escalates - Part II - "Cocaine Communication Manager" Luis Berenguer is Back Without Punishment
Latest on Luis Berenguer
Gemini Links 20/04/2026: "I Hate Computers" and "Why I de-Googled"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, April 19, 2026
IRC logs for Sunday, April 19, 2026