Bonum Certa Men Certa

Chinese Patent Policy Continues to Mimic All the Worst Elements of the American System

This will crush Chinese innovation

Chinese flag



Summary: China is becoming what the United States used to be in terms of patents, whereas the American system is adopting saner patent policies that foster real innovation whilst curtailing mass litigation

THE USPTO, together with US courts, may have done what's necessary to stave off at least some patent trolls. With software patents on the rocks, venue-shifting becoming tough and various other notable factors, patent trolls either go out of business [sic] or move somewhere else. Some of them go to China.



Even China, based on yesterday's blog post, is lost in an appalling trap of a patent gold rush. The Chinese government now signals that competing/emergent players (those which compete against state-connected giants) are to be banned. From the blog: "While many past customs enforcement campaigns have focused on foreign rights owners (often big international brands), this one was carried out on behalf of domestic tech companies. China Daily explains that it is part of the government’s plan to “nurture Chinese companies with IP advantages in their exported goods”. In planning the “Soaring Dragon” operation, the Shenzhen authorities selected patent owners that were deemed “capable of independent innovation” – Huawei and ZTE chief among them."

"The Chinese government now signals that competing/emergent players (those which compete against state-connected giants) are to be banned."So put another way, a quarter million products were denied access to the market. Who exactly benefits from that? "Whatever the details behind the numbers GACC is publicly promoting," it concludes, "the message is clear: if you’re an innovative Chinese company and your patents are being infringed, the customs services is one of the tools at your disposal. The more proactive they become, the more potent a remedy this will be, especially for the likes of Huawei and ZTE."

Those are massive corporations. They now shield themselves with a massive number of low-quality patents, just like in the US. This actually suppresses innovation and reduces competition. It's like ITC in the US.

Earlier today Watchtroll wrote about ITC action against Apple -- action which, as we explained before, would likely go nowhere. ITC, like the above Chinese equivalent, guards the domestic giants.

China will never admit anything like that and with tight control over the media it's already perfuming the above action. Watch how the Chinese official news site (government site in English) calls embargoes "Reforms open up fair playing field" (a euphemisms salad). "Officials said such ordinances," the short report says, "meant to encourage enterprises to increase their brand-building awareness and improve product quality, had partly played a positive role."

"Those are massive corporations. They now shield themselves with a massive number of low-quality patents, just like in the US."In whose favour? Giants such as Huawei and ZTE? They basically use government-enforced protectionism in the same way Apple tried to guard itself from devices imported from China, Taiwan and Korea. Apple is still stockpiling patents and as we explained a couple of days ago, we expect it to become the next BlackBerry in the sense that it will litigate when little/no market is left for "i" devices. The Microsoft-connected patent troll Finjan already does exactly that (except it was never successful) and it's is still at it, based on today's press release. The good news is, victims of this troll are fighting back and challenging the patents. As for BlackBerry, in the absence of Kokes it carries on chasing companies with legal actions, albeit it looks like it explores doing so via intermediaries. As IAM explained yesterday:

Teletry is described as “an independent operating company with expertise in building relationships between patent holders and licensees in the wireless technology industry”. It is headed up by Kasim Alfalahi, who will be known to just about everyone who reads this blog as the former chief IP officer of Ericsson and the current CEO of Avanci, the IoT licensing platform.

Avanci is one of several businesses that sit within the Marconi Group, which was created earlier this year. Another is PanOptis, the NPE which, among other assets, owns a number of patents previously held by Ericsson. Although it is not entirely clear, it looks as if Teletry has been specifically created for the BlackBerry venture - it does not have its own website as far as I can tell and the only mention of it on the Marconi website is the press release announcing the BlackBerry deal.

Aside from Alfalahi, there are a number of other very well-known patent deal makers on the Marconi roster, including: former Google and Motorola Mobility patent transactions rainmaker Kirk Dailey; Eric Reifschneider, previously with Qualcomm; and Fred Telecky, once of Texas Instruments and most recently head of the licensing operation at PanOptis.

[...]

For the following ones, though, both parties will be expecting a return. If Kokes was right about the strength and breadth of the BlackBerry portfolio, outsourcing a large part of the smartphone licensing business to Teletry will free internal deal makers at the company to chase businesses in other verticals. That, in turn, should hasten the arrival of royalties into the company’s coffers – something that will undoubtedly please investors. The hook-up with Teletry may not have been a move that BlackBerry entered into entirely willingly, but it could be one that bears significant fruit.


Stick a fork in BlackBerry. It's a patent troll by proxy now, for the actual business is just virtually dead. Now that we know what Teletry actually is, our predictions turn out to have been accurate all along. They're just "managing" "portfolios" of patents (as per this press release from yesterday) and doing so by aggressive/proactive means, notably lawsuits. But will they succeed in the current atmosphere in the US?

"Stick a fork in BlackBerry. It's a patent troll by proxy now, for the actual business is just virtually dead. Now that we know what Teletry actually is, our predictions turn out to have been accurate all along. "Today's post from IAM, regarding RPX, says it's a "tough market reality" and RPX is therefore moving to China. Many patent trolls are moving to China (good riddance!) and the only ones who complain about it are the patent 'industry'. Technology companies are vastly relieved that all this nuisance is moving as far away as possible.

As a reminder, RPX was imploding somewhat earlier this year. Here's the latest:

On a recent quarterly earnings call, RPX CEO Marty Roberts told analysts that the firm is looking to expand its presence in China in 2018. The exact dimensions of the aggregator’s planned investment aren’t known as of yet, but when you speak with senior IP executives inside Chinese companies one thing becomes clear very quickly: saying you want to be in China and actually being there are two very different things. If RPX really does want to take advantage of the opportunities the country presents it will need to be very serious about building a long-term project that may not immediately bear fruit.

We don’t yet know whether RPX plans to expand the coverage of its existing defensive aggregation model to China (perhaps by targeting more Chinese patents for acquisition), or whether it might seek to provide some different services designed specifically for Chinese clients. As a service provider with a defensive mission and a large portfolio, it could potentially provide a tailored service that helps Chinese entities gain freedom to operate in overseas markets and defends them against NPEs. However, the decrease of the NPE threat in the US, together with the emergence of the IPR system, have already brought down the costs of defence there – this is something that impacts Chinese companies as much as it does anyone else.


That last sentence is pretty revealing. RPX was directly profiting from a lot of troll activity (IAM uses the euphemism "NPE") and now that trolls are ebbing away (or moving to China) those who offered a so-called 'solution' to it (for large corporations) fail to find themselves.

Recent Techrights' Posts

Techrights Does Not Compete With LLM Slop, It Exposes the Bastards, Plagiarists and Scammers Who Do That
People like Scam Altman, still facing a lawsuit from his own sister for sexual abuse against her
Slopwatch: Planet Ubuntu Became LLM Slop and Some People Fail to See the Immorality of Plagiarism
it lessens the incentive for people to publish real articles
Microsoft Layoffs Again in Bay Area
Microsoft relies on people's false belief that being "in LinkedIn" will get you a job; well, seems like even working inside LinkedIn really sucks and you lose the job
 
The "AI" (Slop) Bubble Already Popped, But It's Not an Overnight Collapse
where Microsoft put its money
No More Steven Astorino at IBM, Chatter About Weekly/Nonstop Layoffs at IBM
What happened? Good luck guessing.
Looking at Corruption in Europe, Going Beyond the EPO
Expect a new series to kick off very soon
Slopwatch: Security SPAM and LLM Slop for SEO and FUD Purposes, Perpetually Tarnishing the Perception of Linux and (Open)SSH Security
A lot of this Fear, Uncertainty, Doubt (FUD) comes from Microsoft and its LLMs
Links 30/05/2025: Google's LLM Slop Pushers Are Killing Journalism and Shira Perlmutter Fails to Stop Bribed Regime From Legalising Plagiarism (in "AI" Clothing)
Links for the day
Links 30/05/2025: Offline Arts and "Threshold of Patience"
Links for the day
Signing Off Serious Lies With a Statement of Truth is No Joking Matter
It's not hard to see what's happening here
Links 30/05/2025: LLM Slop Already Ingests and Vomits Its Own Garbage, Facebook Exec Admits Copyrights a Concern Too
Links for the day
Mass Layoffs at Microsoft Result in More Whistleblowers From Microsoft
Microsoft's predatory pricing is further
EPO Poll: 68% Dissatisfied With Quality of Slop (Wrongly Framed as "AI") for Patent Classification
Slop does not work, it's just falsely advertised with extra hype (funded by slop pushers that sponsor the major media)
Big Crowds Gather to Learn About Software Freedom From the Man Who Started GNU/Linux in 1983
"It was a great success"
Gemini Links 30/05/2025: Fighting Against the Bad News, and Slop is Dehumanisation Disguised as "Intelligence"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, May 29, 2025
IRC logs for Thursday, May 29, 2025
Links 29/05/2025: Chinese Cracking Against EU Institutions (Prague), More Assaults on Media and Its Funding Sources
Links for the day
EPO Workers Caution That the Officials Are Still Illegally Trying to Replace Staff With Slop (to Lower Quality and Validity of European Patents)
Nobody in Europe voted for any of this
Links 29/05/2025: US Health Deficit and Malware Disguised as Slop Generator
Links for the day
Links 29/05/2025: Turtle Roadkill, Modern 'Tech' as a Sting
Links for the day
Thanks for All the Fish, Linux Format
people who once wrote for it (or for other magazines) comment on the importance of this news
People's Understanding of the History of GNU/Linux is Changing
RMS is not a radical, he's just clever enough to see and foresee what's going on
Microsofters Were Scheming to Take Over This Entire Web Site (in Their Own Words!)
Money gets spent censoring/deplatforming people who speak about real issues; no money gets spent actually tackling those underlying issues
Bicycles for the Minds and the Story Harrison Bergeron
"The goal of having people in charge of the tools they use and that the tools should amplify ability" has long been abandoned
Links 29/05/2025: YouTube Problem and Giant Privacy Hole in Microsoft OneDrive
Links for the day
[Video] Cory Doctorow Explains DMCA: DRM in the Browser (or Webapp) Will "Make It a Felony to Protect Your Privacy While You Use It."
Pycon US Keynote Speaker Cory Doctorow
United States Courts With Sworn Testimonies Are on Our Side, We'll Present the Same Here
Chronicling what happened is a moral imperative
Serial Sloppers Ruin and Lessen the Incentive to Cover "Linux"
The Serial Sloppers (SSs) ought to be named and shamed, but almost nobody does this
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, May 28, 2025
IRC logs for Wednesday, May 28, 2025
Links 28/05/2025: 'Emulation Layers' (Measurements and Linguistics), Libraries, and Discomfort
Links for the day
Links 28/05/2025: More Arrests for Bitcoin-Connected Torture and Prosecutions for Dieselgate-Linked Executives
Links for the day
Even Microsoft (MSN) Covers Richard Stallman's Public Talk in Milan 2 Days Ago
He spoke in Spanish earlier this month (Alicante)
Gemini Links 28/05/2025: Techo-authoritarianism With Slop Plagiarism and "No Online June" (Going Offline)
Links for the day
Links 28/05/2025: GitHub MCP Exploited and MathWorks Discovers Huge Windows TCO
Links for the day
Very High Attendance Level at Richard Stallman's Talk Shows People Can Relate to His Message
Smear campaigns have their limits
Gemini Links 28/05/2025: Celsius-Fahrenheit, Endless Scrolling/Infinite Scrolling, and Trapping LLM Slop Bots
Links for the day
Prison gate backdrop to baptism by Fr Sean O'Connell, St Paul's, Coburg
Reprinted with permission from Daniel Pocock
More Photos From This Week's Milan Talk by Richard Stallman
The posts are in Italian, not English
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, May 27, 2025
IRC logs for Tuesday, May 27, 2025