Bonum Certa Men Certa

Hailo and Qualcomm Both Want to Profit From Software Patents Rather Than Actual Products

Hailo lawsuits guaranteed

Hailo lawsuits



Summary: The (mis)use of software patents for "easy money" is being challenged and it does not look particularly encouraging to those who rely on such patents in 2017

THE resurgence of software patents in Europe, due to the EPO's abhorrent attitude (the management not obeying the law), is a very serious issue, but it's one that we regularly cover. In the US, for example, the sheer abundance of software patents (granted before Alice) continues to feed patent trolls and other parasites. It's destroying the industry.



The momentum against software patents may have been lost (albeit courts continue to squash these) and sometimes we see both software patents and patent trolls tackled at the same time. "Stupid Patents of the Month," for instance, are now these patents which the EFF mentions as follows:

With all the attention ride-sharing has been getting lately, some might think Uber and Lyft were highly inventive apps. But according to at least one company, the apps are just highly infringing. Who’s right? Probably neither.

Hailo Technologies, LLC (“Hailo”) has recently sued both Uber and Lyft, alleging they infringed Hailo’s taxi dispatch patent, U.S. Patent No. 5,973,619 (“the ’619 patent”). The patent claims a method for a “computer system” that: (1) displays a list of transportation options; (2) asks the customer for a number of passengers; (3) shows destinations graphically; (4) displays the approximate fare; (5) calls a selected taxi company up for a ride; and (6) gives an estimated arrival time. A few months ago, Hailo also sued a few other companies for infringing a different patent, U.S. Patent No. 6,756,913 (“the ’913 patent”), which claims a method for keeping track of available taxis on the road. More specifically, it claims a method where a computer (1) determines if a taxi is free (i.e. currently has no rider); and if free (2) sends the current location of the taxi to the taxi dispatch server.


We looked up details about Hailo Technologies and found nothing except the above lawsuit and prior ones. As it turns out, Hailo has been around for a number of years (there are even puff pieces about it) and "Hailo Technologies" is its trolling alter-ego. The patent goes back to 1999 and is a software patent that's not just obvious (see the EFF's explanation) but is also meritless after Alice. The EFF says the patent is on "a method where a computer (1) determines if a taxi is free (i.e. currently has no rider); and if free (2) sends the current location of the taxi to the taxi dispatch server."

This is the same thing taxi companies already did with or without a computer prior to the patent. Nothing innovative here...

We feel pretty safe to guess that Hailo walks on broken glass here. We predict these patents will be invalidated soon.

Qualcomm's Glasses Shattered



The following chart is almost self explanatory. As soon as Apple said it would stop paying Qualcomm the following thing happened.

Hailo lawsuits



Notice the volume in this chart. There's a massive panic.

Expect more of the above from Qualcomm, which is seeing erosion in 'protection' money. It's already way below its 52-week high. Apple has apparently stopped paying, sending Qualcomm's stock into a tailspin on Friday (down almost 5% in just one hour). Having sent Florian Müller a couple of links about it (also included in our daily links), yesterday he published "Qualcomm reduces quarterly forecast by $500 million as Apple stops license fee payments" and said:

Bloomberg reports that Apple confirms having "suspended [license fee] payments [via its contract manufacturers in China to Qualcomm] until the correct [fair, reasonable and non-discriminatory = FRAND] amount can be determined by the court" and that Qualcomm therefore has reduced its revenue forecast for the quarter ending June by $500 million. Given that the spring quarter is not the strongest one for mobile phones (the closest the next iPhone model is, the more customers wait until they buy), this indicates more than a $2 billion impact on Qualcomm's annual revenue and profit.

Just like the analyst quoted by Bloomberg, I've previously described patent disputes as an "all-out war," but I try to use the term sparingly. I'm not saying that's not what it is. I just want to wait and see how the dispute unfolds. There can be no doubt, however, that the stakes are high.

The $500 million figure for a quarter that is not the strongest one of the year is not really inconsistent with what I recently estimated to be Qualcomm's royalty demands.


Qualcomm is a parasite which we hope will lose even if we don't generally support Apple. What's at stake here is FRAND with software patents. Qualcomm needs to justify its existence by making actual products, not just taxing products.

Recent Techrights' Posts

Gemini Links 11/04/2025: Microcosmographia Academica and Ada Language
Links for the day
At the Root of the SLAPPs There Are Matters of GitHub Corruption and Microsoft Competition Crimes
Keep both eyes on the ball; this is about monopoly abuse and attempts to muzzle critics
Open Source Initiative (OSI) Privacy Fiasco in Detail: More on the Complaint, Which Also Points the Finger at Stefano Mafulli and Deb Nicholson
Focus on what they are attempting to distract from
"Linux" Foundation, Besieged by Microsoft, Isn't About Science But Against Science and Against Facts
(and for Microsoft Dogma, Microsoft Domination, Microsoft Money)
IBM Pays IDG's IDC to Market Proprietary Red Hat Enterprise Linux (RHEL) Under the Guise of "Research"
Proprietary RHEL promoted by FUD (Fear, Uncertainty, Doubt or just plain fear-mongering)
 
Links 11/04/2025: LLMs as Worthless Gimmicks, People in Trouble for Saying Too Much in (or Before) 'Cheeto Era'
Links for the day
Links 11/04/2025: "Getting Screamed At" and LLM Crawlers as Vandals Online
Links for the day
Links 11/04/2025: Microsoft Mass Layoffs Again, Zelensky Doubles Down on Claim That Many Chinese Are Fighting for Russia
Links for the day
Slopwatch: A Sea of LLM Slop About SparkyLinux, Kubernetes, Ubuntu, and Linux Kernel
Welcome to the future? The future of the Web?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, April 10, 2025
IRC logs for Thursday, April 10, 2025
Gemini Links 10/04/2025: "Secret of Happiness" and Overthinking POSSE
Links for the day
Links 10/04/2025: NNCPNET Email Network, RSS Readers, and IRS as 'Immigration Enforcer'
Links for the day
IBM Layoffs in Markham (Canada) Apparently Still Happening
"Still going on... Got laid off today. TEL Canada, Band 9, 19 years with IBM."
Links 10/04/2025: Fentanylware (TikTok) Perils and Internet Shutdown
Links for the day
Microsoft's "Linux" Foundation Pays Writers to Publish Propaganda and Then LLM Slop Sites (Slopfarms) Repeat the Propaganda, Using Microsoft LLMs
consider the latest LLM slop
Once You Slop You Can't Stop and If You're a Serial Slopper Nobody Will Believe You Really Wrote an Article (Even If You Did)
It's a lot like, "if you're a serial liar people won't believe you even when you say some truth" (or "once a cheater, always a cheater")
Pressing Against SLAPPs (From Americans Who Strangle Women While Microsoft Pays Their Salaries) is a High Priority for Us
We also need to ensure that greedy firms/people that facilitate the SLAPPs get "disbarred" or "struck off"
Mozilla Firefox Already Down to 1% in Brazil
Don't people crave the surveillance and the slop?
Links 10/04/2025: Hardware, Politics, and Internet
Links for the day
Gemini Links 10/04/2025: Creativity and Agitation, Life in the USA, CSS Naked Day 2025
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, April 09, 2025
IRC logs for Wednesday, April 09, 2025
Alleged Layoffs at IBM Consulting in Australia
IBM loses many government contracts these days
The Rumours Were Likely True: Sixth Wave of Microsoft Mass Layoffs in 2025 (Days After "50" Anniversary and About 5,000 Layoffs)
5 hours ago, by Ashley Stewart
Malware in Proprietary Software - Latest Additions
Original by Free Software Foundation, Inc.
Links 09/04/2025: More Trade Wars and Wars, Chinese Army Troops Found Fighting in Ukraine
Links for the day
Linux Clickbait by Slop
Give it up for Brian Fagioli, the Serial Slopper
IBM and MCC: Layoffs Coming Again to Metro Connect Company Limited (MCC) as Tariffs Bite and IBM's Shares Fall
Blacklists applicable to Chinese suppliers also mean that IBM can no longer cooperate with key partners in Asia
Microsoft's Entire Premise for Its Future Existence Goes Up in Flames
32 minutes ago
GNU/Linux on a High in Colombia
Stereotypes much?
Go Static
Please don't Go(lang) or JavaScript or PHP or...
Techrights Be Like...
K.I.S.S.
Gemini Links 09/04/2025: Autism, Cybersecurity, and LLMs Attacking Services Online
Links for the day
GNU/Linux Would be Measured at Over 5% Globally (by statCounter) Had the Data in India Not Been Changed
GNU/Linux grew a lot in many countries and has expanded since then
Keeping Track of Microsoft Layoffs in 2025
So here's a quick roundup of 2025
The Sixth Anniversary of the Lightweight Alternative to the Web (Gemini Protocol)
Now 11 short of 3,000 active capsules. 65 short of 4,500 total.
Links 09/04/2025: Quartz Fires All Writers (Shutdown, LLM Slop or Slopfarm Instead), "Bitcoin Is Crashing Hard"
Links for the day
People Are Sick of LLM Slop. Offer Them Alternatives.
We never used LLM slop for anything and we never will
Web Surveyor statCounter Sees Apple's macOS Falling From 5.6% to 3.6% in Two Months, It Might Soon be Smaller Than GNU/Linux
Apple's "value" (faked, exaggerated) is back to "pandemic times"
UK House of Lords Recognises the SLAPP Issue in the UK and EFF Pursues "Bill (That) Could Put A Stop To Censorship By Lawsuit" in the US
"A House of Lords inquiry into how the news industry can survive into the future has accused the government of “failing to prioritise” action on strategic lawsuits against public participation (SLAPPs)."
Open Source Initiative (OSI) Privacy Fiasco in Detail: Seeking Class Action Against the OSI
"LETTER SEEKING CLASS ACTION REPRESENTATION"
The Value of Slop, by Alexandre Oliva
Original by Alexandre Oliva
Gemini Links 09/04/2025: Neocities, Tinylogs, and Inter-community Protocols
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, April 08, 2025
IRC logs for Tuesday, April 08, 2025
You Can Be an A--hole to Women (Even Strangle Women) as Long as You Work for Microsoft
Recalling the Mark Shuttleworth origin story
Canonical is a Proprietary Software Reseller With a 'Debian Base'
"Canonical Ubuntu" is just Debian with some proprietary things sold on top of it