Bonum Certa Men Certa

Software Patents and Patent Taxes: How 100 Grams Worth of Components Can Cost as Much as $1000

Nearly challenging the price of gold now

Phone and USPTO
Phones now a pocket-sized patent thicket



Summary: A roundup of recent news about patents that affect phones in particular, notably patents on software rather than hardware

THE SUBJECT which is software patents hasn't been covered here recently. It's due to other important issues. "How to get around software patents" is an article published nearly a week ago. To quote part of it: "Isn't is possible to work around software patents and use [...] In some cases it is really possible. The Ogg/Vorbis developers have done patent research and hope their format won't vulnerate patents in the United States."



"The patent attacks on Chinese companies have led some of them to a pursuit of patents akin to stockpiling."Well, Apple's Steve Jobs attacked Ogg, as we wrote here several times in past years (well before Jobs' death). Don't forget that, when it comes to patents, Apple is not only a foe of Linux (and by extension Android) but of FOSS as a whole. There's a long tradition to it, as we showed here over the years.

Earlier this month and later last year we wrote about Xiaomi, a rival of Apple, craving or lusting for patents (perhaps as many as 10,000). Two recent articles from IAM [1, 2] said more about this area, noting that "Xiaomi’s latest gambit in its quest to find sales growth outside of its home market of China was a short-lived one. The company launched its first phones in South Korea last Monday, 4th January, through KT Corporation, the nation’s second largest mobile carrier. Just two days later, the handsets were abruptly pulled from the market, based on what KT described as “legal matters related to sales”. There are several possibilities for what has happened, but given the company’s history of IP troubles, some in the media have wondered whether a patent dispute is behind the setback. If that does prove to be the case, it would raise some serious questions about Xiaomi's IP strategy and its ability to gauge its own freedom to operate."

The patent attacks on Chinese companies have led some of them to a pursuit of patents akin to stockpiling. Over a week ago we learned about Huawei and Ericsson signing a patent agreement [1, 2] and it is worth noting that Ericsson uses patent trolls as fronts. "As the battle for patents rages on," said one report, "and tech giants are at each other’s throats on court, arguing who has the right to use what technology, two companies have extended their agreement to use each other’s patents without much hassle.

"Imagine higher prices on everything (the lawyers' tax), including mobile phones whose prices are artificially high.""Those two companies are Ericsson and Huawei and they have, according to a recent press release, extended their global patent licence agreement that includes patents regarding wireless communication technology."

This new report about Ericsson's troll, Unwired Planet (formerly Openwave Systems), shows that Ericsson has become a big liability to Android companies. Unwired Planet has become a leading example of patent trolls serving even European companies, or a proxy war with SEPs. This is what UPC would lead to more of (given growing momentum it's easy to be pessimistic, especially now that UK-IPO and British patent lawyers make decisions behind closed doors), making Europe more accessible to patent trolls from the US as well. To quote lawyers' media: "The UK government has prepared legislation to give effect to EU legislation on the unitary patent and to the Agreement on the Unified Patent Court (UPC), which backs the creation of a new UPC for resolving disputes over new unitary patents."

Imagine higher prices on everything (the lawyers' tax), including mobile phones whose prices are artificially high. That's where we are today.

Earlier this month, Florian Müller chose to focus again on Apple's patent war with Android [1, 2]. "Today I received a really interesting Lex Machina press release," he wrote. "Lex Machina, a LexisNexis company, operates the Legal Analytics platform and claims that companies such as Microsoft, Google, Nike and eBay as well as various top-notch law firms are among its clients. Its new "Patent Trial and Appeal Board 2015 Report" provides lots of insight about last year's trials before the United States Patent and Trademark Office's (USPTO) Patent Trial and Appeal Board, i.e., the USPTO's in-house court system." This study, Müller says, shows that Apple and Samsung now use so-called 'patent death squads'.

"We have written so much about the so-called slide-to-unlock patent, which is effectively a software patent."In other news [1, 2], "Samsung is appealing its Apple infringement case to the Supreme Court because a very old law is a bad fit with very modern technology" (with the CCIA's support).

The case, which we have grown quite tired of after half a decade, is still the subject of much media coverage (the latest development is that Apple is suing Samsung for embargoes to be belatedly enforced and technology giants take Samsung's side [1, 2, 3, 4, 5, 6, 7]) and legal sites too.

"Devices that cost just several dollars to make (on the basis of material) end up being sold for almost a thousand dollars in some cases."As Müller put it earlier this month: "The '721 slide-to-unlock patent, whose European sibling has already been held invalid by 15 judges, is irrelevant not only because it will likely be held invalid but also because it covers only certain graphical variants of the slide-to-unlock mechanism, but not the slide-to-unlock functionality as a whole."

We have written so much about the so-called slide-to-unlock patent, which is effectively a software patent. We don't wish to spend too much time debating it again, but we are gratified to learn that Apple too receives a reminder of the harms of software patents. "Apple has been targeted in a patent infringement complaint centring on its voice recognition technology Siri," said WIPR the other day.

The bottom line -- if there is one -- might be that patents are very destructive in the so-called 'smart' phone space (smartphone). Devices that cost just several dollars to make (on the basis of material) end up being sold for almost a thousand dollars in some cases. Who benefits from this?

Recent Techrights' Posts

Distinguished Lecture by Richard Stallman This Coming Monday in Rome
After "Free software, Crucial for Freedom in a Digital World"
The Lawsuit by Clients of Brett Wilson LLP Against Brett Wilson LLP is Officially On, It is Progressing, The 'Experts' Pick Outside Law Firms (RPC and Mills & Reeve) to Spare Them From Litigants in Person
So it is probably quite potent
The 'Culture Wars' in Free Software Have Gone Out of Control
Social control media amplifies such utterly infantile discourse
Teaser: To Compensate for the Fact Our Clients Are Terrible Human Beings Who Strangle Women (While on Microsoft's Payroll) and We Get Paid by Mystery Parties We Bombard You and Your Wife With Almost 10 Kilograms of Legal Papers
If you can't win an argument, then drown the other side with papers?
Now Confirmed in Western Media: Microsoft Azure Layoffs This Month
Affirmed by more sources moments ago
10 Out of 10: RMS Attracts Massive Audience in Göteborg, Sweden (All Seats Occupied, Some People Standing)
a 55-second clip of his talk
 
Brett Wilson LLP Spreads Trumpism to the United Kingdom, Looking to Profit From 'Legal Colonialism' (Overriding Sovereignty)
There's growing recognition of this conundrum worldwide
The Demise of Shopping in Person
In a world like this, how valued is the customer?
We Are Safe in a Modern "Tech" Society, Right?
People are safer if they control their own computing
This Past Friday, "Nearly 700 People Came to Listen to RMS!" (Richard Stallman)
"Nearly 700 people came to listen to RMS!"
Slopwatch: UbuntuPIT Churning Out Plagiarism and the Slopfarm LinuxSecurity Turns to Pseudonyms
Our hunch is, UbuntuPIT will sooner or later realise that this toxic approach is just harming UbuntuPIT and tainting the reputation of past articles
Gemini Links 11/10/2025: Nyctography, Gerrymandering, and Lurking
Links for the day
Links 11/10/2025: World Mental Health Day 2025, Another European Legal Defeat for Microsoft 360
Links for the day
MIT Technology Review is Part-Time SPAMfarm of Billionaires and Mega-Corporations
Does MIT operate its own "b2b" SPAMfarm?
Open Source Initiative Executive Director Leaves, Replacement Sought by Monopolists, Not the Community or OSI Members
Serves to show who runs this show...
Links 11/10/2025: China-US Tensions Grow Again, "Hey Hi" More Widely Recognised as Bubble Made of Capital That Doesn't Exist
Links for the day
Peter O'Callaghan QC represented grandparents, Westernport Hotel, at Liquor Royal Commission
Reprinted with permission from Daniel Pocock
Either The Register MS Divests From FOSS Coverage or Liam Proven is on Long Holiday
Publishers perish when their audience loses trust in them
Microsoft Cancelling Another Datacentre is a Sign of Financial Trouble and Lack of Growth
The debt continues to grow
Gemini Links 11/10/2025: An Evening at the Fair and Fast Fourier Friday
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, October 10, 2025
IRC logs for Friday, October 10, 2025
Geminispace is Very Large
The word continues to spread and the number of participants grows
Another Wave of Microsoft Layoffs, This Time During National Day Holiday
This time it's China again
Staying Happy in Times of Crackdowns on Civil Society
Optimism in this sort of "new reality" or "new normal" seems like something for the irrational person
"Nobel" Exploited Posthumously for "AI" Hype, Now They Do the Same With "Quantum"
ere have been many jokes about "Nobel" for peace (often granted to pro-war people) and a fake one for "Economics" (establishment propaganda)
Slopwatch: Plagiarism and "Linux" Articles by Bots
Sites that do this won't survive; many of them rely on slop services (suppliers) that will cease to exist after the bubble bursts
Links 10/10/2025: Putin Admits Russia Downed Azerbaijan Airlines Jet, More New Heat Records
Links for the day
Noteworthy Claim That IBM is Firing a Lot of Lawyers This Week (RAs in the Legal Department)
A lot of what they do is patent 'trolling' or lawyering up against their own staff (e.g. HR disputes)
Links 10/10/2025: US Judge Bars Attacks by ICE On Journalists and Protesters; “We Took The Freedom of Speech Away” Says the President
Links for the day
Slopwatch: Serial Sloppers, Google News Gifting Slopfarms, and Fake News/Plagiarism About "Linux"
Google itself is a slop pusher these days
Qualcomm, the New Owner of Arduino, Blasted for Its Software Patents Tax on 'Smartphones'
A lot of Qualcomm's patents are on software. We wrote about this in prior years.
XBox Layoffs Rumours, Downtime, and Criticism From XBox Co-Founder
"everyone is ditching the xbox."
Links 10/10/2025: Honoring The Legacy Of Robert Murray-Smith, Many Articles on the Hey Hi (AI) Bubble
Links for the day
Gemini Links 09/10/2025: October Gothic and Reading Middle Earth Role Playing; C and Ada
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, October 09, 2025
IRC logs for Thursday, October 09, 2025
Links 09/10/2025: Farewell to Jane Goodall, California Bans Algorithmic Price-Fixing
Links for the day
Gemini Links 09/10/2025: Lost Wages and a Saga Of Continuing To Use Palm PDAs
Links for the day
Richard Stallman's Talk in Helsinki is Done. Tomorrow Göteborg.
There are scarce details in Finnish about Dr. Stallman's talk
New XBox Leaks Probably Serve to Confirm XBox's Collapse (Many More Layoffs)
It's very much consistent with what many other sites have reported lately
The Slop Song
The train wreck marches on
LLM Slop/Advanced Plagiarism Flooding the Zone With Capital That Does Not Exist
Many publishers out there still participate in this bubble instead of calling it what it is
Links 09/10/2025: Sacked Microsoft Workers Make "Sackbird", IBM Taps CockroachDB for PostgreSQL
Links for the day
"Happy Hacking Day" Richard Stallman Talk This Afternoon (From 14:00 to 16:00) at Haaga-Helia University in Pasila
Richard Stallman in Helsinki, Finland
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, October 08, 2025
IRC logs for Wednesday, October 08, 2025
Links 09/10/2025: Impact of Microsoft Layoffs, More Data Breaches
Links for the day
Gemini Links 09/10/2025: Autumn Blues and C IRC Bot
Links for the day