Techrights » IBM http://techrights.org Free Software Sentry – watching and reporting maneuvers of those threatened by software freedom Sat, 07 Jan 2017 22:03:37 +0000 en-US hourly 1 http://wordpress.org/?v=3.9.14 Financial Giants Will Attempt to Dominate or Control Bitcoin, Blockchain and Other Disruptive Free Software Using Software Patents http://techrights.org/2017/01/03/financial-sector-swpats/ http://techrights.org/2017/01/03/financial-sector-swpats/#comments Tue, 03 Jan 2017 16:22:59 +0000 http://techrights.org/?p=98153 Those who have mastered monopolisation, not sharing, cannot be expected to behave as trusted partners

MasterCard
Part of the duopoly (with Visa)

Summary: Free/Open Source software in the currency and trading world promised to emancipate us from the yoke of banking conglomerates, but a gold rush for software patents threatens to jeopardise any meaningful change or progress

ANY company that built its presence/niche/empire on proprietary software sooner or later finds out that it is not sufficient in the face of competition that is based on sharing. Proprietary software is unable to compete with Free/Open Source software. Apple’s patent war on Android (Linux and Open Source), for example, is not new. We used to write a lot about it when it started (Apple v HTC) and Apple is gradually losing more and more of its battles (the higher up they do, the lesser the success rate, as the latest Supreme Court decision served to show — a decision to be discussed tomorrow). Even so-called ‘friends’ of GNU/Linux, Amazon for instance, are pursuing loads of software patents that are occasionally being used.

At the end of last year we gave new examples of software patents being used against Free/Open Source software in finance — the very topic which got this site started in the first place. Worrying about the same type of issues (the attack on Bitcoin/Blockchain [1, 2, 3]), yet another site wrote about it just before the year ended. To quote:

Creating a ‘Blockchain Industry:’ Patenting the Blockchain

Patent filings for blockchain technology have more than tripled since 2014; this spike includes patents filed by cryptocurrency exchanges such as Coinbase, payment processors like Mastercard, and banks like Goldman Sachs and the Bank of America.

According to a report conducted by law firm Reed Smith, the most popular areas for these patent applications are payment systems: both for traditional forms of money and for systems that will be used to trade cryptocurrencies or digital tokens. Mastercard, by way of example, recently filed four blockchain patents for separate steps along authenticating a transaction on the blockchain.

Given the behaviour of IBM as of late and its ambitions in this space (not to mention clients such as Goldman Sachs), it wouldn’t shock us if Big Blue too became not just a participant in the patent gold rush but also a serial patent bully (recall TurboHercules v IBM). This isn’t a wish but a growing concern; all that patent hoarding, as noted in a variety of Bitcoin-themed news site, will likely culminate in some legal wars and out-of-court settlements, leaving the same old oligopolies in tact. That’s just protectionism, not innovation. These patents are not trophies to them; they intend to use them one way or another (they’ll probably claim “defensively”).

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Software Patents Continue to Collapse, But IBM, Watchtroll and David Kappos Continue to Deny and Antagonise It http://techrights.org/2016/12/29/ibm-watchtroll-and-david-kappos/ http://techrights.org/2016/12/29/ibm-watchtroll-and-david-kappos/#comments Fri, 30 Dec 2016 00:53:17 +0000 http://techrights.org/?p=98050 They even organise events to push their agenda

Lobbying for Watchtroll

Summary: The latest facts and figures about software patents, compared to the spinmeisters’ creed which they profit from (because they are in the litigation business)

“L

atest [Section] 101 Statistics Show Improved Validity Prospects at Dist. Cts, Not CAFC or PTAB,” said a patent attorney the other day, reinforcing our response to Mullin's article (titled “These three 2016 [CAFC] cases gave new life to software patents”). The reality in the US right now is undeniably bad for software patents, which are being chopped at PTAB’s block and CAFC’s block. Patent maximalists are trying to pretend otherwise and we repeatedly rebut their arguments, only to see these arguments resurfacing over and over again, courtesy of the usual suspects. If the lies are repeated often enough, then maybe prospective applicants (or clients in need of legal representation) will actually believe them.

“The reality in the US right now is undeniably bad for software patents, which are being chopped at PTAB’s block and CAFC’s block.”The other day we saw this new article titled “Assessing USPTO’s Memo On Software Claim Patent Eligibility”; we keep wondering if USPTO officials will become as rational and realistic as US courts. Right now they just strive to rubberstamp whatever they can and those who pay the price for it are both plaintiffs and defendants; only patent law firms profit from it.

“This method of presentation involves storing and processing applications or parts of applications at a user’s local personal computer rather than at a remote server.”
      –PatentDocs
As a side note — although an important note nonetheless — we can’t help but notice that IBM keeps trying to corrupt the system though its former Director, who had worked for IBM beforehand. IBM definitely used to be a (GNU/)Linux friend. Now it’s just an Apple promoter/pusher and a malicious patent aggressor. Yes, IBM has been rather busy going after small companies using software patents. Some of these companies, seeing what a menace IBM is becoming, belatedly turn to PTAB in an effort to invalidate these patents of IBM. Here is one report about IBM’s software patent that will quite likely be invalidated: “The ’967 patent relates to a method for presenting applications in an interactive service featuring steps for generating screen displays of the service applications at the reception systems of the respective users. This method of presentation involves storing and processing applications or parts of applications at a user’s local personal computer rather than at a remote server. This helps avoid possible server bandwidth issues that can be caused by the server being required to serve too much data to multiple users simultaneously. The ’967 patent lists many applications that can take advantage of this method of presentation, including games, news, weather, movie reviews, banking, investments, home shopping, messaging, and advertising.”

This is pretty trivial. It’s akin to caching.

Now watch what David Kappos is cited as saying again. “US is losing the innovation war,” he is quoted by IBM as saying, “to China” (where IBM finds buyers for its failing business units, notably Lenovo).

“Kappos is a paid lobbyist,” Benjamin Henrion noted, “working for patent trolls such as Microsoft or IBM.”

“IBM’s Schecter would know,” I replied, as “he’s IBM’s patent chief ^_^ so [he] has the ‘receipts’…”

What we have here is IBM citing as ‘proof’ a former IBM staff who is now an IBM-funded lobbyist for software patents. Look how dirty (as in dirty play) these people are…

And as if the greater the number of patents, the better… who would be foolish enough to actually believe this?!

“China pushing for software patents,” Henrion noted in relation to another Schecter tweet, “apparatus claims relating to software can contain both hardware and “program” components…” (links to “China Files A Million Patents In A Year, As Government Plans To Increase Patentability Of Software”)

“Kappos is a paid lobbyist working for patent trolls such as Microsoft or IBM…”
      –Benjamin Henrion
China is their new bogeyman. One of these people added: “But USA keeps working on UN-patentability of software. What’s wrong with this picture?”

Nothing is wrong with this picture. It’s a good decision. End software patents, end patent trolls.

“China is plain wrong on this,” Henrion wrote, separately noting (to Marietje Schaake regarding software patents in Europe) that it’s “like the unitary patent lie that it won’t affect software development.”

On a final note, worth seeing is this rant from Watchtroll and 'gang' about end of software patenting (or demise thereof). “Stepping Back from the Cliff: The Year Congress Didn’t Cave to the Anti-Patent Lobby” says the title. They’re currently taking stock of a terrible year for them [1, 2] — a year which saw the demise of patent trolls. Watchtroll continues to attack PTAB for doing its job and we can’t help wondering why IBM’s Schecter treats this like some kind of ambassador for his cause. Does IBM really want to be so closely associated with Watchtroll, who even resorts to attacking judges?

For a more balanced summary of recent events, see “Year in Review: The Top-Five Legal Developments of 2016″ (posted days ago). It has a section about software patents.

“…anti patent trolling would be better, even if trolling is considered pejorative.”
      –Benjamin Henrion
Those who are against software patents, notably people who actually write software, are not “anti-patent” as Watchtroll tries to put it. In fact, as Henrion put it, “anti-patent is a gross and blunt exaggeration here. [] anti patent trolling would be better, even if trolling is considered pejorative.”

Patent trolls, in the majority of cases, rely on software patents. Take the latter away to get rid of the former.

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Institutional Corruption Like ‘Pay to Play’ Still Drives/Steers US Patent Law, Courtesy of Large Corporations and Their Lobbyists http://techrights.org/2016/12/14/steering-us-patent-policy/ http://techrights.org/2016/12/14/steering-us-patent-policy/#comments Wed, 14 Dec 2016 17:37:43 +0000 http://techrights.org/?p=97492 Steering policy in exchange for money, having acquired contacts and connections

David Kappos as lobbyist
Source: David Kappos interview with Intellectual Property Magazine (2010), modified by us

Summary: IBM, David Kappos, Watchtroll and the rest of this software patents bunch as seen in the news and in forums this past week and half (policy-shaping echo chambers disguised as debates or “roundtables”)

THE FORMER Director of the USPTO, David Kappos, came from IBM, one of the biggest patent bullies out there and also a worldwide lobbyist for software patents. It’s therefore hardly surprising that after his career at the USPTO Kappos continues to promote all the worst aspects of a patent system. A lot of the current mess, including the very low success rate of patent lawsuits, can be attributed to this fool. How did he even get this job? Maybe some connections in high places and pressure on Obama or something…

“A lot of the current mess, including the very low success rate of patent lawsuits, can be attributed to this fool.”Three years ago we said that the USPTO's software patents "roundtable" was rigged and last week we saw a similarly-rigged USPTO "roundtable" where no software developers were even present. It hardly ever gets any more farcical than this.

A few days ago we wrote about other new lobbying events that try to compel Congress to change the law in favour of software patents, in accordance with patent maximalists' Christmas wish list. The so-called IPWatchdog conference (we call it “Watchtroll”) was truly a disgrace because again it’s a case of patent law firms speaking about — not for — inventors. These firms want to gain at inventors’ expense. Remember that Watchtroll is to patent news what Brietbart is to world news; its founder is a blowhard who habitually insults judges and smears PTAB with sexual connotations. Watchtroll tries to meddle in patent law by truly despicable strategies and for self gain, not for scholarly purposes or anything like that.

Patent maximalists like Kappos, as it turns out based on his new article at Watchdog, support this kind of horrible Watchtroll think tank. In Kappos’ own words:

Recent changes to the U.S. patent system — emanating from both Congress and the courts — have pushed U.S. investment money overseas. To China, to be exact.

In his closing remarks to a recent Inventing America and IPWatchdog conference on dangers to the innovation economy, former U.S. Patent and Trademark Office director David Kappos said that in 2015, patent filings in China exceeded those of the next 20 countries.

What’s noteworthy about this article is that here we have an IBM-funded former USPTO Director (now lobbyist for IBM) promoting software patents and then getting promoted by IBM’s patent chief, Manny Schecter. To quote the alarmist, “Kappos: investments moving overseas in response to state of U.S. #patent law” (untrue).

We wonder when IBM will realise that it’s a bad idea to pay a former USPTO official (who had worked for IBM beforehand) to be a software patents lobbyist. Institutional corruption is definitely what this is; that’s a textbook example of it. Now that he is out of his lucrative job he converts influence and connections into money, on behalf of billionaires. It’s a bit like revolving doors, except there is no direct affiliation (he operates via a proxy).

“If former officials are up for sale and they are meddling in the affairs of the Office, then it’s a classic case of “pay to play” and unless we call out the culprits they will continue uninterrupted.”As Benjamin Henrion put it, “this is propaganda at best.”

Well, Schecter and IBM ought to know this because they are the ones who paid for this propaganda. They are still paying Kappos.

“Kappos is a lobbyist who needs lessons in basic economy,” Henrion continued. “R&D done in China, good sold in the US” (indeed and moreover China is fast becoming a den of patent trolling).

The US patent system still suffers from a high level of corruption due to this man. If former officials are up for sale and they are meddling in the affairs of the Office, then it’s a classic case of “pay to play” and unless we call out the culprits they will continue uninterrupted.

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Software Patents Battles: Lobby to Restore US Software Patents, IBM’s and Google’s Positions on the Subject, and Microsoft/Intellectual Ventures With Their Ongoing Attacks on Linux http://techrights.org/2016/12/12/lobbying-for-software-patents/ http://techrights.org/2016/12/12/lobbying-for-software-patents/#comments Mon, 12 Dec 2016 07:48:31 +0000 http://techrights.org/?p=97404 Lobbying for Watchtroll

Summary: An outline of one week’s news regarding software patents in the United States, with special emphasis placed on key foes and allies of GNU/Linux

The Lobby for Software Patents

THE USPTO can no longer grant software patents as routinely as it used to and some people are upset about it. These people, however, do not develop software.

“Sen Chris Coons,” according to this tweet, says that “Eroding patent protections for software and medical advances imperils American R&D, learning, health, and innovation,” but this coming from guy who never wrote a single line of code in his entire life does not mean much. Maybe he’s just funded by some large company that is pursuing software patents (like IBM and Microsoft). Moreover, with Watchtroll branding on the podium (see the photo), we assume that Chris Coons came there to serve patent maximalists, who have grown quite loud recently. Benjamin Henrion responded by saying that “software patents shifts R&D budgets to P&L.” (patents and litigation)

We are troubled to see the voices of the patent microcosm growing even louder in the wake of Trump’s election win. They want change and they want this change to harm software developers so that they can profit from (or tax) actual producers. IBM, we might add, is a growing part of the problem. Does IBM even realise to what degree it alienates the Free software development community by advocating software patents all the time? Does IBM truly realise that it aligns itself with patent extremists that insult judges and push for software patents based on self-serving lies? Does it care? Does IBM realise that by paying the former Director of the USPTO it participates in institutional corruption? And again, does it care? By lobbying to annul the Supreme Court’s decision and elevate less than a handful of Appeals Court (CAFC) decisions these people reveal their true face and selfish interests, which happen to harm every software developer around the world. It harms developers of both proprietary and Free/Open Source software.

CAFC on Software Patenting

Speaking of the Appeals Court, also published (albeit behind paywall) is this article titled “Appeals Court Casts Doubts on Smartflash’s Patent Win Over Apple” (we mentioned this before). “Two judges signaled the patents claim ineligible subject matter under Section 101 of the Patent Act,” says the summary. This article is mirrored here (also behind paywall). Section 101 certainly gets taken into account by CAFC, but patent law firms like Finnegan continue pushing the envelop on lies that software patents still have teeth in the US. It’s that usual cherry-picking of CAFC cases. Baker Botts LLP has just done the same thing. Don’t fall for it. In the vast majority of cases, including in 2016, CAFC rules against software patents and Section 101 remains very strong an argument against software patents. Watch this new docket report that says:

The court denied defendant’s motion for summary judgment of invalidity on the ground that plaintiffs’ call center telecommunications patents encompassed unpatentable subject matter because the motion obscured patents’ complexity with reductionist simplicity.

The recurring theme here was covered in almost a hundred Techrights articles. It definitely seems as though software patents aren’t coming back any time soon (if ever), but the patent microcosm sure is trying to accomplish that.

IBM and Conservative Think Tanks

Adam Mossoff, who works for a Conservative think tank and has a history of rather aggressive patent views (we covered these in [1, 2, 3]), is trying to shame Congress into pushing for reinstatement of software patents, based on misinformation. “Today,” he summarised it, “Congress should save software again by expressly confirming that it is a patentable technological invention.”

Nonsense.

If anything, software patents caused a lot of damage. But then again, judging by Mossoff’s paymaster, reliance on facts is almost a sin. Look where they stand on issues such as climate change.

“But this essential technology in our modern innovation economy is at risk,” Henrion quotes him as saying, responding with “yeah copyright replaced by patent trolls…”

Another person responded with “and look at the Patent Troll mess Software Patents has left us in…”

Exactly. Mossoff, as we pointed out here in the past, became a voice of patent trolls and the patent microcosm. He’s not a software developer and he merely ‘hijacks’ the voice of those who are with a nonsensical headline like “Congress Saved Software in 1980, and It Should Do It Again Today” (in a neo-Conservative Web site, of course).

This article seems to be one among several. The patent microcosm wants software patents back, unlike actual developers. Watchtroll is pressuring Congress on this subject also, most recently with yesterday’s headline (yes, a Sunday!) “Congress Can Save Software Patents by Repeating One of Its Successes”.

It’s just a bunch of mumbo-jumbo urging Congress to reinstate software patents and some of this mumbo-jumbo is promoted by IBM’s patent chief. Patent trolls proponents like Adam Mossoff are intentionally conflating software with software patents (one destroys the other) and then some IBM lawyers deems it cite-worthy? How stupid does IBM want to look here? It’s only going to harm the company’s relations with developers.

Google Against Software Patents, Unlike Microsoft

Contrast this with the following new article from Allen Lo, who is deputy general counsel for patents at Google. He published “Protecting Alice protects patent quality and technological innovation” and said in it:

The goal of the patent system, as set forth in the Constitution, is to promote the progress of the “useful arts,” which has always been understood to mean technological progress. Here at Google, we are proud of the many ground-breaking software inventions by our engineers that have allowed us to file a growing number of high-quality patents and establish a strong and valuable portfolio.

While Google and many other tech companies invest many billions of dollars in research and development (R&D) to make these inventions – and these patents – possible, not all software patents issued by the Patent and Trademark Office (PTO) are of high quality. A series of roundtables recently convened by the PTO in Alexandria, Va.; Stanford University; and other locations around the country explored one of the most important tools for improving the quality of software patents and ensuring that only worthy patents are approved.

That tool arises from the unanimous 2014 Supreme Court decision in Alice Corp. v. CLS Bank International, which established that software patent claims that recite a financial arrangement or broadly describe a function performed “on a computer” or “on the internet” are not eligible to be patented. Before Alice, applicants were obtaining patents from the PTO that were not based on any technical contribution or innovation, often not even providing an explanation of how they expected to achieve a result beyond stating that it would be done “on a computer.” Case law and PTO practices had swung too far toward allowing these low-quality claims to remain unchallenged, and a course correction was needed.

So we’ve covered IBM, Google, and what about Microsoft? Well, Microsoft is in the same boat as IBM when it comes to software patents and its patents have just survived CAFC’s scrutiny, based on this new report that says:

Microsoft has survived an appeal against a lower court decision that it didn’t infringe patents belonging to Impulse Technology.

Yesterday, December 8, the US Court of Appeals for the Federal Circuit affirmed the ruling of the US District Court for the District of Delaware, granting Microsoft’s motion for summary judgment.

In 2011, Impulse sued Microsoft, alleging infringement of 15 claims of the asserted patents: US patent numbers 6,308,565; 6,430,997; 6,765,726; 6,876,496; 7,359,121; and 7,791,808.

Inverting the Narrative

Truth be said, large companies don’t mind the patent mess because they can afford to pay the legal fees and this whole mess harms small companies the most. Here is a 15-page PDF of a paper by Professor Lemley et al in which it’s said (by Patently-O) that “patent litigation outcomes vary according to the identity of the patentee” or to quote Patently-O‘s summary: “The sales market for patent rights continues to vex analysts – especially in terms of valuation. In their Patently-O Patent Law Journal article, Professor Mark Lemley teams up with the Richardson Oliver Group to provide some amount of further guidance.”

It’s no secret that there is gross discrimination in patent systems, even in the EPO.

Part of the patent microcosm, or pushers for software patents (Bilski Blog), chose to distort the narrative of software patents (for large businesses, in bulk) and instead went with this narrative which would have us read about the “little guys”:

From the beginning my application was rejected, and continues to be rejected, under Section 101, even though we have recently overcome all of the prior art rejections. As a result, I have become something of an accidental student of patent eligibility and as such was very interested in attending the USPTO’s Patent Subject Matter Eligibility Roundtable I on November 14, 2016. Prior to the roundtable, I had assumed that my application was something of an outlier, that there was something wrong with it and that was why it had been rejected. At the roundtable I learned that “it’s not me, it’s you” applies not just to exes but to the patent system as well.

[...]

The few speakers at the roundtable who did advocate on behalf of us “little guys” often mentioned how the “direct costs” negatively impacted micro-entities, focusing on the need for examiners to avoid using “blanket statements,” to be specific in their responses, and carefully ensure the law is being properly interpreted and applied on a case by case basis. As a solo entrepreneur, I couldn’t agree more with the need to “get it right the first time,” as this would substantially reduce direct costs for us. My impression is that the examiner’s first instinct is often to reject without any substantive reason, hoping we’ll simply abandon the process altogether, or better yet, pay the ever increasing, exorbitant fees (for me) involved in requests for continued examinations and the appeals process.

This thing which the USPTO called “roundtable” was just an echo chamber. See our article about it and then see this article from Scott Graham of The Recorder (behind paywall). To quote the outline: “A discussion Monday at Stanford University was an opportunity for big tech companies, entrepreneurs, bar associations and academics to hash out the impact of ‘Alice’ and other developments in patent eligibilty.”

This was cited by IBM’s Manny Schecter (IBM is still dissatisfied because there is no software patents certainty and IBM attacks small companies using software patents). There was “no software developer around the table,” Henrion told IBM’s Manny Schecter, “how broken is that?”

Well, this whole “roundtable” was nonsense, or an exercise in fake transparency, giving the illusion of public participation in decision-making while excluding the main stakeholders (who actually produce something).

“If you write code,” I told Manny in relation to this tweet of his, “maybe you’ll understand it’s mumbo-jumbo buzzwords” (he wrote “Abstract? Technological? Concrete? Practical application? Exactly. From #patent perspective these simply cannot be defined precisely.”)

Henrion added, “Tangible?”

All those silly words are so often used by non-developers who try to convince us developers that software patents are desirable.

The Trolls’ Lobby

Witness how Watchtroll’s site wants to crush patent reform and harm actual producers of software etc. The title says “Advice for the Trump Administration and New Congress: Protect Bayh-Dole and Restore the Patent System” and it’s more like the above pattern of lobbying, which we are seeing more of these days.

Not too long ago Watchtroll called reformers “Patent infringer lobby”, leading people in the patent microcosm to saying stuff like: “Patent infringer lobby pushes Trump to aggressively pursue “patent reform” https://lnkd.in/fasm8pZ Time to call out deliberate infringers.”

Well, time to call out Watchtroll who didn’t write any code, doesn’t know how programs work, yet lobbies for software patents.

“Nice bullshit spin on the issue,” wrote a technical person (Raphaël Jacquot) about the above. Henrion wrote, “restore software patents and patent trolling.”

Good for the patent microcosm after all, and we know at whose expense…

Speaking of trolls, Blumberg who used to work for for the world’s largest patent troll, Microsoft’s patent troll that’s connected to Ray Niro (who is now dead), is quoted by IAM as saying: “In our view, Germany is the new Eastern District of Texas. That’s the venue that gives us the most concern.”

Blumberg is now working in Lenovo, which is believed to have colluded with Microsoft to block GNU/Linux (they denied this after actually admitting this).

Concerns about Germany becoming another/new Eastern District of Texas are real because of the UPC ambitions, which will thankfully never reach London. Alexander Esslinger (a.k.a. Patently German) wrote about the above quote: “Really ? At least of owners of SEP’s it is not so easy to get an injunction in Germany based on interpretation of ECJ Huawei-ZTE…”

“Is that a bad thing,” I asked him. He later responded to that, but one must remember whose side he is on. He’s not interested in a sane patent system but a system from which he profits more. Like Bastian Best, who spreads misinformation (biased by omission; fails to mention those ~80% of CAFC cases that send software patents down the sewer), he wants more patent litigation in Germany so that he can profit from that. IAM is on the same side as them and it’s eager for everyone to celebrate patent trolling that’s coming from the Far East. Here is the latest example of that: “Barely a week after KAIST sued several major tech companies in what appeared to be the first ever patent infringement action initiated by an Asian university in the United States, another Korean educational institution has launched its own assertion campaign in the Northern Districty of California.”

Remember that these are non-producing entities that are funded by public money.

Citing Microsoft and its massive patent troll (Intellectual Ventures), IAM also pretends that lowering patent quality is a good thing:

Perhaps the most striking thing was how quickly some of China’s major tech companies have become sophisticated IP players. Xiaomi’s progress in particular has been remarkable and with former IV IP executive Paul Lin on board, the company has one of the most experienced operators in the local monetisation market.

Xiaomi’s deal with Microsoft, announced in May this year, was in the spotlight on day 1 as Lin joined the software giant’s Micky Minhas to dissect one of the leading IP-driven transactions of 2016. As part of that agreement Microsoft sold the Chinese company 1,500 patents, giving Xiaomi a much-needed boost to its portfolio as it weighs up expansion into the US. For all that conditions are widely seen to have deteriorated for many patent owners in the US, the deal shows that American assets will always remain a crucial part of any company’s IP strategy be it focused on freedom to operate or monetisation.

Xiaomi’s patent settlement with Microsoft was an attack on Linux and on Free software, as we explained at the time. Given China’s approach towards software patents (the opposite of what the US is doing), we’re not too shocked to see this happening, but that does not mean we have given up, either.

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IAM’s Interest in Patent Trolls Going Global, Capitalising on Declining Patent Quality http://techrights.org/2016/11/13/declining-patent-quality-and-trolls/ http://techrights.org/2016/11/13/declining-patent-quality-and-trolls/#comments Sun, 13 Nov 2016 16:44:24 +0000 http://techrights.org/?p=96716 Also see: The Former Chief Economist of the EPO Warns That Battistelli’s Implicit Policy of Lowering Patent Quality (for Quantity) Will Bring Patent Trolls to Europe

IAM THE VOICE OF PATENT TROLLS

Summary: A roundup of news about patent trolls, in particular their growth in east Asia and growing interest from parasitic firms like IBM and Microsoft (which have not so much left but a pile of software patents amassed in past years)

CHINA’S SIPO, which the EPO‘s President got close to (and increasingly imitates both in terms of degrading labour standards and poor patent quality), is becoming the generator of the world’s biggest platform for patent trolls. We have been pointing this out for a number of months now. It’s a harrowing scene because it means that an epidemic that (thus far) was almost exclusive to the US has spread like a pandemic to the world’s largest population.

A new article from John Collins and Steve Lundberg (yes, that crude software patents booster from Schwegman Lundberg & Woessner) is titled “Barrier to Business Patents Softening in China” and it reveals that China — like today’s EPO — encourages more patents irrespective of their quality and it already attracts patent trolls that utilise software patents. Has China learned nothing from the mistakes of the United States — mistakes that even government departments now openly speak of?

According to IAM, a site exceptionally sympathetic towards patent trolls (some of them pay IAM), says that “Qihoo 360 was actually the first company to have a GUI design patent granted.” Now it’s a highly litigious company, IAM says. With software patents, as expected, come the patent trolls to Asia, where patent quality nearly got abandoned (same mistake which the US had made). Here is another new example from IAM, though it does not use the “T” word. These trolls operate not only in China and as we pointed out before, some of them now go abroad and sue Western companies in plaintiff-friendly courts like those in Texas. They will certainly come to Europe as well, in due course. At the EPO, as we have repeatedly demonstrated, patent examination is too lax/lenient — a recipe for disaster for existing EP holders, if not future ones too. According to this tweet from the EPO: “Luis Ignacio Vicente del Olmo of @Telefonica : “The number of patent applications is increasing” #EPOPIC pic.twitter.com/BcmVRxswtD”

Does that mean more innovation or aggressive patent thickets that lock the ‘small guy’ (or business) out of the market?

As another EPO tweet put it the other day: “Luis Ignacio Vicente del Olmo: ” A smartphone may include more than 5000 patent families” #EPOPIC”

Wonderful! “Luis Ignacio Vicente del Olmo speaks about new challenges for IP as a result of the new technological paradigm,” the EPO says, adding that: “Luis Ignacio Vicente del Olmo of @Telefonica talks about trends in #ICT sectors & transparency of patent data #EPOPIC pic.twitter.com/wApNe223C1″

Some of that data comes to and from Asia, as this tweet notes: “Luis Ignacio Vicente del Olmo: “The European market is very attractive to companies outside Europe like from Asia & the US” #EPOPIC”

So how long before Chinese patent trolls come to Europe, even without that UPC (which would greatly assist them if it ever became a reality)?

IBM, which is already suing small companies using software patents, seems to salivating and drooling over litigation in China. See this tweet from IBM’s Manny Schecter, boasting that “China’s patent-lawsuit profile grows. http://www.wsj.com/articles/chinas-patent-lawsuit-profile-grows-1478535586 … via @WSJ” (article here but with limited access to non-subscribers).

“When a Canadian patent-licensing firm wanted to sue Japanese electronics company Sony Corp., it chose an unlikely venue: China.” That’s what the report says. IBM already sold quite a few pieces of its business to China and we can envision IBM trying to impose patent licensing deals in China, if not lawsuits too (for those not sufficiently ‘obedient’).

According to this new article from Liu, Shen & Associates, the notion of obligatory patent tax has already spread to China. “Standard essential patents have long been a hot topic in China,” they argue. “Hou Guang and Jia Hongbo of Liu,Shen & Associates explain the history and analyse recent developments…”

Standard essential patents (SEPs) block the use of Free/Open Source software (FOSS) and much more. IBM used to lobby for this kind of mess in Europe and look where it led to; rather than stop SEPs/FRAND IBM told the European authorities that software patents promote FOSS innovation (which is of course a lie).

Design patents in Taiwan (arguably part of China, depending on who one asks) are discussed in another new article. Japan and China phased in this nonsense, as we noted the other day and sooner or later we expect China to overtake the United States in terms of patent trolling, including trolling in places/parts of the US where litigation is ubiquitous and low-quality patents are routinely tolerated (not just Texas, the trolls’ capital). See this article titled “As litigation increases, China follows Japan in exploring state-subsidised IP infringement insurance”. It says that “[p]atent authorities in both China and Japan have recently brought forth proposals for patent office-subsidised IP infringement insurance. SIPO says it will focus on offering protection to Chinese companies expanding outside the country, while the JPO anticipates local SMEs using its insurance product both offensively and defensively in China. As litigation increases in China, and more Chinese companies expand abroad, companies throughout the region need all the IP risk management tools they can get.”

What a total waste of resources and energy. They handicap their own economy.

Over in the United States, says this article from IAM, Rockstar (a patent troll connected to Microsoft) pursues more shakedown, even though the FTC deemed this damaging to the country. IAM, being the trolls’ apologist that it is (or denier of patent trolling), attacks the FTC’s study which bemoans patent trolls (for the second time in less than a month!) and says this:

One of the significant outcomes of the Federal Trade Commission’s recent report on patent assertion entities (PAE) is that it very clearly differentiated between two types of licensing business.

On the one hand there were the litigation PAEs, who use the threat of infringement litigation to drive a large volume of low-dollar settlements. They, it was strongly implied, largely engage in the kind of abusive practices that many in the patent community criticise and drive a high number of lawsuits.

We are increasingly convinced that IAM is very eager, with money from Microsoft-connected patent trolls on its table, to see patent trolls go global. IBM too seems to like the idea, as the company has little left other than a pile of patents (same as Microsoft). Some companies are simply transforming into megatrolls; see what Blackberry does in Texas because its products are failing to sell.

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Good Job, David Kappos, Says the ‘Boss’ (IBM) http://techrights.org/2016/08/26/david-kappos-ibm/ http://techrights.org/2016/08/26/david-kappos-ibm/#comments Fri, 26 Aug 2016 19:54:21 +0000 http://techrights.org/?p=95112 How shallow, spotted just hours after publication by Kappos

Manny Schecter screenshots
Manny Schecter works for IBM, the former employer of Kappos

Summary: Responses to the latest call against Alice (eliminator of many software patents), courtesy of the man from IBM (still paid by IBM) who was responsible for the policy that blindly approved a lot of software patents in the US

Our latest article about David Kappos (who has in essence been helping Microsoft's extortion of Linux using low-quality patents in large numbers) was well received by quite a few people. They know a lot better now what Kappos stands for and who pays him. Our many articles on the subject contributed to that. Interest groups and lobbyists are among the things we have been exposing for nearly a decade. Once exposed, they are a lot less capable of operating. Sometimes they need to rename.

As Henrion put it/told Manny Schecter (IBM), “he [Kappos] is a Microsoft/Apple spokesman.” He is also a former IBM employee who is now being paid by IBM for his lobbying.

This article from Kappos led to an article by Mike Masnick (via Professor James Bessen) shortly after we had mentioned it. Masnick said that “of course, if you’re former US Patent and Trademark Office boss David Kappos — who presided over a massive increase in patenting, which the Government Accountability Office recently noted was mainly due to basically no quality standards being used — this is a bad thing. Perhaps he takes it personally that the current patent situation really puts an exclamation point on the fact that he helped usher in hundreds of thousands of anti-innovation weapons that could be used to shake down actual innovators.”

Like the Battistelli-led EPO right now? AntiSoftwarePat highlights the part of the above article which says Kappos “presided over a massive increase in patenting… mainly due to basically no quality standards being used” (i.e. rubberstamping, with approval rates soaring).

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Large Corporations’ Lobbyist David Kappos Disgraces Former Employer USPTO by Meddling in Their Affairs on Software Patents, Downplaying the Supreme Court http://techrights.org/2016/08/26/uspto-meddling-by-kappos/ http://techrights.org/2016/08/26/uspto-meddling-by-kappos/#comments Fri, 26 Aug 2016 10:56:54 +0000 http://techrights.org/?p=95087 Microsoft, IBM and few other large companies pay former USPTO officials to promote software patents

Microsoft links to David Kappos

Summary: The latest lobbying from David Kappos, who blatantly exploits his connections in patent circles to promote software patents and work towards their resurgence after Alice v CLS Bank

LAST NIGHT we wrote about the demise of software patents in the US. The USPTO, which David Kappos had turned into more of a rubber-stamping operation (because of the growing backlog), finally had to accept that many patents were erroneously granted (if not fraudulently granted to increase measurable figures).

“The FTC PAE report should be the final nail in the coffin for Software Patents,” AntiSoftwarePat wrote last night in response to my article. He or she has been saying this for quite a while. PAE is a type of patent troll, for those who don’t know.

“He doesn’t want people to know what he does for a living in his capacity as a de facto lobbyist.”Kappos deserves at least some of the blame for the terrible status quo. So many patents at the USPTO are junk and patent trolls needn’t even go to court and face the burden of proof; they just target small businesses in secret (divide and rule) to shake these down using bogus patents. Kappos is absolutely fine with that and we wrote a lot about this nefarious activity of his quite a lot this year. He doesn’t want people to know what he does for a living in his capacity as a de facto lobbyist. Instead, says his own description of himself: “Dave Kappos is a partner at Cravath, Swaine and Moore LLP and previously served as under secretary of commerce and director of the United States Patent and Trade Office.”

He does not disclose he works for a front group funded by monopolists which support software patents. Yesterday, published in the Morning Consult Web site was this Kappos piece protesting Alice v CLS Bank. He took wonderful news, namely the gradual end of software patents in the US, and called it “the terrible” (not for software developers but for parasites like him and his ilk).

Once again he pretends it’s a loss to software innovation and other such malarkey. He does not disclose who pays him to utter this nonsense. Here is the ending paragraph:

Rather than celebrate or mourn the anniversary of Alice, we should recognize that its overly broad application stifles software innovation in fields that require major, sustained investments to address humanity’s truly daunting challenges—across industries from life sciences to information technology to transportation and beyond. There is some room for cautious optimism—recent decisions from the federal circuit in Enfish, Bascom and Rapid Litigation Management have upheld quality patents challenged on eligibility grounds—but unless the courts continue to provide clearer guidance, a long heritage of American innovation leadership will be at risk. We should seek balance by applying Alice narrowly, “lest [Section 101′s exclusionary principle] swallow all of patent law”— and let the other parts of the law do their work.

“When legislation and/or caselaw is up for sale we all lose.”It’s clear that he is asking for loopholes so that software patents can still be granted and asserted (successfully) in courts. It’s not about “clarity” (we explained this spin of his before and also showed the so-called whitepaper he published last year to reveal his bias on this topic). Quick to promote this article was IBM’s Manny Schecter, who is funding him through IBM (Kappos used to work at IBM, which now just pays him through a front group). Congratulating one’s own lobbyist again? Does he not see ethical breach amid all that patent aggression by IBM? Microsoft is paying Kappos as well and it too is attacking even Android/Linux using patents, as recently as a few days ago.

What will it take for these companies to stop bribing former officials and hide behind them while they lobby for the resurrection of software patents? Who are those people kidding? Can one file a formal complaint for “revolving doors” kind of abuse here? We might try soon, perhaps once we identify the best authority/institution to address regarding the unprofessional (and likely unethical if not in breach of contract) practice. When legislation and/or caselaw is up for sale we all lose.

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Corporate Media in India Misrepresents Startups to Push for Software Patents http://techrights.org/2016/08/25/patentability-of-software-india/ http://techrights.org/2016/08/25/patentability-of-software-india/#comments Thu, 25 Aug 2016 17:03:33 +0000 http://techrights.org/?p=95063 New Delhi

Summary: A parade of misinformation as seen in Indian (but English-speaking) press this week as questions about patentability of software resurface

FOREIGN giants which operate in India (companies like IBM and Microsoft) just can’t help trying to repeatedly introduce software patents in India, aided by front groups and lawyers of theirs. Why on Earth is NASSCOM, which is connected to Bill Gates [1, 2, 3], participating in a debate in India regarding software patents or even just software? “NEW rules designed to boost India’s software industry will open for public consultation in a matter of days, say sources close to the matter,” said one new article among several this week (e.g. [1, 2). These mentioned software patents as well and some correctly noted that “this opens them [software companies] to patent trolls. Dealing with patent trolls here as India doesn’t have software patents.” The English here is problematic and then it says this: “So the conundrum for startups is whether to stay in India or not.”

“India is constantly being lobbied by big businesses that are not even Indian.”No, startups would be wasting their time pursuing patents on software. In practice, heavy-pocketed corporations from abroad want software patents. Indian startups do not. But don’t count on corporate media like the above to accurately represent the desires and needs of ordinary Indians. Neither should anyone trust NASSCOM, one among several Indian agencies that act like outposts and brought India nothing but EDGI.

India is constantly being lobbied by big businesses that are not even Indian. Watch what Microsoft has done to the Modi government earlier this year and last year. It shot down a Free/Open Source software policy.

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Software Patents a Dead End in the United States, But Some Large Companies and Trolls Can’t Help Trying (and Failing) to Float Them http://techrights.org/2016/08/02/east-texas-swpats-news/ http://techrights.org/2016/08/02/east-texas-swpats-news/#comments Tue, 02 Aug 2016 14:07:23 +0000 http://techrights.org/?p=94729 Even East Texas, which advertises itself as plaintiff- and troll-friendly, might not tolerate software patents for much longer

Rodney Gilstrap

Summary: Examining some of the latest software patents that make this week’s headlines and what we can learn from these

SOFTWARE patents are dying in the US, owing largely to § 101 (post-Alice). Patent lawyers, as expected, are in denial about it (misleading customers in order to maintain demand) and there is a new article today/this week about § 101 analysis. Mentioned therein is a “conclusion that the claims at issue fail to meet the standard for patent eligibility under § 101.”

“The significance of this outcome is that once again (as before) we see software patents — once challenged enough, scrutinised properly and reassessed sufficiently — falling short.”The de facto ban on “abstract” software patents (that ought to cover all software patents) does not deter everyone, especially not deep-pocketed companies which simply hoard thousands (if not tens of thousands of patents) and then cross-license or shake down companies in bulk. According to dozens of news reports from yesterday (e.g. [1, 2, 3]), Amazon continues to patent software (this patent for audio surveillance) and today we learn that Disney tries patenting foot surveillance in parks. Talk about lack of ethics… Amazon has pushed software patents as far as Europe in spite of the clear exclusions.

As we mentioned here briefly at the start of this week, VirnetX's software patent attack on Apple is falling short, as does the stock of VirnetX [1, 2, 3, 4, 5, 6]. VirnetX is a patent troll whose existence (or worth) is little more than software patents, so the loss of the case (or at least a $625,000,000 award) was big news yesterday [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15], not just in Apple-centric sites.

The significance of this outcome is that once again (as before) we see software patents — once challenged enough, scrutinised properly and reassessed sufficiently — falling short. Time to leave East Texas for a balanced venue? It’s probably a waste of time (and money) trying to assert these patents in a court of law, especially against large companies that can afford to withstand/endure lots of motions and appeals. That’s why the main victims of software patents (and patent trolls) are small businesses; they would often settle rather than risk the high cost of never-ending legal proceedings. The SCO case has gone on for 13 years because IBM can afford this and SCO, whose only remaining existence is this one case, goes to the grave (well past bankruptcy) in a desperate effort to extract some money (much like VirnetX).

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The USPTO’s Dark Legacy of Software Patents Still the Cause of Spurious/Frivolous Litigation, Residue Which is Software Patent Trolls and Lawyers Will Try to Change the Law http://techrights.org/2016/08/01/mosquitoes-and-trolls/ http://techrights.org/2016/08/01/mosquitoes-and-trolls/#comments Mon, 01 Aug 2016 10:45:27 +0000 http://techrights.org/?p=94701 Mosquito crossing

Summary: Software patent lawyers and software patent trolls are still active in the United States, even if the climate is unfriendly to them after the Supreme Court’s decision on Alice and § 101

WITH § 101 and Alice (2014), it’s now abundantly apparent that things have changed. It’s rather common for software patents to simply die, either at the courts or at PTAB. As patent trolls rely so heavily on software patents, they too are suffering and now there’s a plan for an “IPO Webinars on Section 101″. To quote a patent maximalism site: “The Intellectual Property Owners Association (IPO) will offer two one-hour webinars entitled “Section 101 – The Way Ahead”. The first webinar, concerning the impact of § 101 on the software industry, is being offered on August 10, 2016 from 2:00 to 3:00 pm (ET). Stephen Durant of Schwegman, Lundberg & Woessner, P.A.; Michelle Macartney of Intellectual Ventures, LLC…”

Well, Steven Lundberg's firm, which we last mentioned in April, is one of the worst offenders and one of the most vocal proponents of software patents. They even have a dedicated blog and lobbying on the matter. The world’s largest patent troll (and Microsoft’s troll) Intellectual Ventures taking part in pro-software patents event is also noteworthy. It really shows what the Intellectual Property Owners Association has been reduced to; it’s like a think tank for lobbyists, parasites and trolls.

“It’s rather common for software patents to simply die, either at the courts or at PTAB.”In writing about Technicolor, the trolls-funded 'news' site IAM did not bother mentioning that MPEG-LA is a parasitic patent troll. The editor, who wrote this article, denies that trolls exist (like people who deny climate change). MPEG-LA and related patent pools (mentioned therein and covered here in the past) pass a massive tax to the public, in the name of software patents even when these patents do not exist (and are not legitimate). Companies that latch onto MPEG-LA to extract revenue from the public are nothing but leeches. They don’t innovate, they just look for a patent troll like MPEG-LA to act as a proxy and bully any company which streams video (or helps stream video) without paying millions of dollars in unjust tax. Even Mozilla became a victim of this. What a waste of money for a FOSS company and a project like Firefox.

Speaking of trolls, IBM increasingly acts like one and it relies on software patents for this. Using the words “PTAB Attack” (another negative-sounding term like “killer” or “death squad”) a patent attorney wrote that “IBM’s Online Reservation Patent Survives PTAB Attack: https://dlbjbjzgnk95t.cloudfront.net/0822000/822630/ipr2016-00604_institution_decision_12.pdf

“Companies that latch onto MPEG-LA to extract revenue from the public are nothing but leeches.”The cited PDF is 25 pages long and in it it’s “ORDERED that, pursuant to 35 U.S.C. § 314(a), an inter partes review is not instituted for claims 1–8, 11, 12, 14–21, 24, 25, 27–34, 37, 38, 40–45, 47–49, 51–57, and 60–66 of U.S. Patent No. 5,961,601.” The Petitioners are Richard Zembek and Gilbert Greene. The patent owner (or firm representing him/her/them) is Andrew Heinz and/or Kevin McNish.

What we have here is a reminder that PTAB is not always the ultimate remedy. Having said that, there are also the courts to fall back on, so if IBM resorts to lawsuits rather than just saber-rattling, the patent can still die (at very high cost to the defendant though, possibly lasting several years after a number of appeals).

The latest in a high-profile case against Apple suggests that VirnetX‘s patent lawsuit which it won against Apple isn’t the end of it because “TX Ct [Texas court] Vacated VirnetX $625M Award Against Apple; Ordered Two New Trials: https://dlbjbjzgnk95t.cloudfront.net/0823000/823395/https-ecf-txed-uscourts-gov-doc1-17518671566.pdf

Texas again. It figures.

“What we have here is a reminder that PTAB is not always the ultimate remedy.”In other news, Patently-O wrote last night about Illumina’s battle against Ariosa Diagnostics. It’s one of those controversial patents on genetics (i.e. on life) and Professor Crouch wrote: “The essence of the conflict is whether Illumina’s U.S. Patent No. 7,955,794 is covered by the “Core IP Rights” licensed as part of a 2012 supply agreement. Illumina argues that ‘794 patent was not licensed and, when Ariosa refused to pay a license fee, sued Ariosa for patent infringement. Ariosa’s counterclaim of breach of contract and other covenants stem directly from the infringement allegations.”

Sadly, as seen above, there is a persistent (if not also growing) element of confrontation around software patents and other dubious patents because the USPTO lost touch with patent scope and granted nearly anything that came in — the same mistake that Battistelli now makes at the EPO.

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Blockstream Has No Patents, But Pledges Not to Sue Using Patents http://techrights.org/2016/07/22/blockstream-swpats/ http://techrights.org/2016/07/22/blockstream-swpats/#comments Fri, 22 Jul 2016 09:14:56 +0000 http://techrights.org/?p=94525 Read between the lines then…

Blockstream logo

Summary: Blockstream says that it comes in peace when it comes to software patents, which triggers speculations about coming Blockchain patent wars

THE PAST few years were baffling as companies equated promises not to sue with “Open Source” or “open-source” (with a dash, to help dodge the trademark perhaps). Examples we covered here included, notably, Tesla and Panasonic.

A couple of days ago we saw that Blockstream had claimed the following: “Today we are excited to announce some important steps we are taking on the patent front, why these defensive steps are necessary, and our hope that others will see merit in our approach and follow our lead.

“The system as it stands is inherently hostile towards GNU/Linux and Free/Open Source software, which is what Blockchain is all about.”“Core to the Bitcoin ethos is permissionless innovation. Without it and the level of contribution to which it gave rise Blockstream would not be on the exciting path we find ourselves today. It should not come as a surprise then that permissionless innovation is also core to Blockstream’s ethos. We firmly believe that in order for Bitcoin and related technologies’ potential to be fully realized they must be underpinned by a global platform that is free for any innovator to use without hesitation.”

As Benjamin Henrion rightly asked, “where do you have patents? which numbers?” Another person, a patent attorney who specialises in patent data/statistics, noted that “Blockstream Does Not Have Any Patents Assigned to It.” This is not entirely shocking. Having written about Blockstream in the past (we have very broad scope in our daily links), not once did we mention it in relation to patents. Patently German hypothesised: “Preparation for future #blockchain #patent wars? Blockstream announces defensive patent pledge and patent agreement…” (IBM, a patent bully with software patents, is also heavily involved in the same Linux-centric space)

IP Watch, a decent watchdog of patent matters, wrote the headline “Trust Us, We Won’t Sue You” (it sounds rather humourous or sarcastic). It said that “Blockstream, which developed the blockchain technology and bitcoin, has announced a defensive patent strategy. The crux of it: assurance that users of its technology won’t be sued.”

“It seems like shameless self-promotion or a publicity stunt with a “patents” angle.”The EFF wrote about this as follows: “We’ve written many times about the need for comprehensive patent reform to stop innovation-killing trolls. While we continue to push for reform in Congress, there are a number of steps that companies and inventors can take to keep from contributing to the patent troll problem. These steps include pledges and defensive patent licenses. In recent years, companies like Twitter and Tesla have promised not to use their patents offensively. This week, blockchain startup Blockstream joins them with a robust set of commitments over how it uses software patents.”

Bob Summerwill told me [1, 2]: “I see this as hugely positive. Looks directly analogous to what the GPL does for copyrights. Use system against itself.”

Right, but unless Blockstream actually has some patents (there is no evidence of it so far), what can they really use against the system? The system as it stands is inherently hostile towards GNU/Linux and Free/Open Source software, which is what Blockchain is all about.

Blockstream’s message is suggestive of unknown context (like something they know but are not telling us). It seems like shameless self-promotion or a publicity stunt with a “patents” angle. We have become accustomed to it. One company that should definitely do the same thing (but has not) is Red Hat. OIN membership does not guarantee this and if Red Hat got sold to some relatively hostile entity (like Sun to Oracle), there is no guarantee that Red Hat’s patents would not be used to wreak havoc (like a $10 billion lawsuit over a programming language alone, i.e. an order of magnitude worse than SCO versus IBM).

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Large Corporations’ Software Patenting Pursuits Carry on in Spite of Patent Trolls That Threaten Small Companies the Most http://techrights.org/2016/07/18/bahr-patent-scope-and-trolls/ http://techrights.org/2016/07/18/bahr-patent-scope-and-trolls/#comments Tue, 19 Jul 2016 02:27:07 +0000 http://techrights.org/?p=94501 Hostile environment in which trolls thrive owing to software patents and cashless startups that must settle

Robert BahrSummary: With unconvincing excuses such as OIN, large corporations including IBM continue to promote software patents in the United States, even when public officials and USPTO officials (like Bahr on the left) work towards ending those

SOFTWARE patents remain a very major barrier not just to FOSS developers but to all software development. Such patents, unsurprisingly, are being promoted by monopolists and their facilitators, to whom they’re a major source of revenue. Those monopolists continually rig the whole system in their favour as they can definitely afford it; in fact, it might be considered part of the obligation to shareholders (protectionism through legislation).

The mainstream media or corporate media no longer talks about software patents. Instead it speaks about “patent trolls” and by patent trolls it means the small ones, not the media owners. Apple, for instance, is directly connected to some major media conglomerates, so bias in patent coverage is to be expected in some cases (we wrote about this in past years). Let’s be easily deluded and just ignore Apple demanding billions (not millions) from Android OEMs (patent aggression and sometimes trolling includes big vendors) and also forget Apple’s unique role in Intellectual Ventures (explained here several years ago), the world’s largest patent troll which goes after Android vendors. The article “Apple will pay $25M to patent troll to avoid East Texas trial” is eye-catching and so is “Newegg’s Three-Step Solution to Fighting Patent Trolls” by Gary Shapiro, President and CEO of Consumer Technology Association (CTA). This group likes to focus on patent trolls rather than patent scope. Here is some of the latest from Gary Shapiro:

Lee Cheng is a troll trapper. As chief legal officer for Newegg.com, the second-largest online only retailer in the United States, Cheng has successfully battled the almost three dozen trolls that have attacked his company in the last ten years. And not just fight them, but win.

Patent trolls — sometimes called “non-practicing entities,” or NPEs — don’t actually create any products or services. Instead, they scoop up patents for the express purpose of using them to extort money from real companies large and small that can’t or don’t want to pay high legal defense costs. NPEs focus on settlements and generally have no desire to test their generally poor-quality patents in trial and through appeal. Even bad patents can generate millions in settlement dollars.

A newly-updated Harvard Business School study finds patent trolls sue cash-rich firms “seemingly irrespective of actual patent-infringement” — because that’s where the money is. The Harvard researchers noted trolls are taking a toll on innovation at the firms they target: “After settling with NPEs (or losing to them in court), companies on average reduce their research-and-development (R&D) investment by more than 25 percent.” So instead of funding development of the Next Big Thing in consumer technology, these American small businesses are handing over legalized extortion payments to trolls.

Research estimates that patent trolls drain a prodigious $1.5 billion a week from the economy. I sat down with Lee Cheng to get a from-the-trenches account of the patent troll problem, and to let him share his lessons for taking down the trolls.

“They also rely a great deal on software patenting, as a look at their patent portfolio easily and instantly reveals.”What Gary Shapiro misses here is that patent trolls are often part of a broader shell game played by large corporations such as Microsoft. They also rely a great deal on software patenting, as a look at their patent portfolio easily and instantly reveals. All the focus is now being shifted towards trolls, both in the media and US Congress. Just see this new tweet (“VIDEO: Sen. Jeff Flake Targets Patent Trolls”).

Proskauer Rose LLP, which likes to cherry-pick cases in promotion of software patents, recently released this so-called ‘analysis’. They try to maintain a grip on software patents no matter what. Some large corporations are doing the same thing and it’s not limited to Microsoft. Consider IBM.

IBM’s commitment to Free software, especially now that it pays lobbyists like David Kappos for software patentability, should be seriously doubted. It just likes “Linux”. Manny Schecter, a patent chief at IBM, is an ardent proponent of software patents and he has just linked to “Latest very brief USPTO update to patent examiners on subject matter eligibility in view of recent cases…”

This is a PDF of a new Robert Bahr (Deputy Commissioner for Patent Examination Policy) letter regarding the Rapid Litigation case and Sequenom case (both covered here earlier this month). Herein he is alluding to Mayo and Alice as he might try to gently challenge these or begrudgingly adopt what the ‘pesky’ Supreme Court said. Here is a quote from the PDF: “In summary, the USPTO’s current subject matter eligibility guidance and training examples are consistent with the Federal Circuit’s panel decisions in Rapid Litigation Management and Sequenom. Life sciences method claims should continue to be treated in accordance with the USPTO’s subject matter eligibility guidance (most recently updated in May of 2016). Questions should be referred to Technology Center subject matter experts or your SPE.”

Where does IBM stand on the subject? It’s hardly even a mystery. IBM does not like Alice because IBM loves software patents and actively works to expand these to more countries/continents. At the same time IBM brags about OIN as though it magically makes IBM’s patent policies absolutely fine and compatible with FOSS. “I don’t think there is an alternative choice when you are small entity,” told me someone today. “When has OIN actually helped a small company? Even as a deterrent,” I replied. “When your entity is relatively small,” he said, “OIN represents a potential shield to provide you even a minimum of security.”

“Life sciences method claims should continue to be treated in accordance with the USPTO’s subject matter eligibility guidance (most recently updated in May of 2016).”
      –Robert Bahr
But how in practice can OIN protect one against a troll for example? It cannot. OIN is totally useless against patent trolls. Don’t ever forget that. I saw that firsthand when I was part of E-mail thread I had initiated. Small companies sometimes try taking rivals to court with their patents. If the rival is big enough, then countersuit is massive (IBM has a massive portfolio which virtually every software patents infringes on), defeating the very point of bothering with a lawsuit in the first place. Large companies may use trolls as satellites/proxies, so the lawsuits/countersuits can come from all sorts of mysterious directions.

“Intel and McAfee Sued for Patent Infringement,” writes Patent Buddy this week. Security Profiling LLC (LLCs are usually patent trolls) is suing in the Eastern District of Texas. What can Intel do about it? Nothing. Intel is now trying to sell/offload McAfee, based on last week’s news reports (see our daily links for half a dozen such reports). Has it become too much of a burden perhaps? The point about patent trolls and OIN sticks, no matter what. Steven J. Vaughan-Nichols has just fallen for the OIN public relations machine, joining the chorus which began with an 'exclusive' puff piece. OIN is not a “Linux” thing as some want it to be widely viewed; it’s mostly an IBM, Sony etc. thing. It helps legitimise software patents rather than acknowledge that they are not compatible with FOSS or Linux and thus need to be ended.

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With ‘Friends’ Like IBM and Its ‘Open’ Invention Network We Legitimise Software Patents Rather Than End Them http://techrights.org/2016/07/16/ibm-and-oin/ http://techrights.org/2016/07/16/ibm-and-oin/#comments Sat, 16 Jul 2016 20:12:12 +0000 http://techrights.org/?p=94416 Choice of a ‘lesser evil’ still leaves us with evil

A devil

Summary: Another reminder of where IBM stands on patent policy and what this means to those who rely on IBM for sheltering of Free/Open Source software (FOSS) or small businesses (SMEs) in a post-Alice era

Large corporations take it all when it comes to patents. Patent trolls are somewhat of a distraction and an obsession, as they help obscure the underlying problem with patent scope, including the existence of software patents. Consider IBM. IBM is itself a patent bully (with history). It uses software patents to attack far smaller companies and lobbies for such patents as well. IBM is opposing patent reform and it is also relying on its lobbyist (and former employee and former USPTO Director) David Kappos to maintain the status quo and abolish Alice as a factor, i.e. to prop up software patents at a time they’re increasingly dying.

“IBM is opposing patent reform and it is also relying on its lobbyist (and former employee and former USPTO Director) David Kappos to maintain the status quo and abolish Alice as a factor, i.e. to prop up software patents at a time they’re increasingly dying.”According to another new article from Fortune, which seems to have found an interest in patents lately, “innovation and entrepreneurship has been on a steady decline for the last 40 years, and the U.S. has ultimately become less competitive as large companies take a greater share of profits in their respective industries, and roughly as many small companies go out of business as start up annually. One particularly telling statistic: Nearly 60% of U.S. employees now work for firms founded before 1980, Kauffman says.” The article is titled “How Licenses and Patent Trolls Are Choking Entrepreneurship in America”. The current policy is basically an SME killer (they’re increasingly being eliminated by patents), whereas large companies don’t seem to mind this. They form conglomerates like OIN which provide them with a collective shield in many cases. Where does antitrust law come into this?

“Don’t be misled,” IBM’s Manny Schecter wrote regarding the above article, “this is about occupational licenses, not patent licenses even tho it is also about patent trolls”

Benjamin Henrion responded to Schecter by saying “patent trolls such as IBM. I had a look at your Prodigy patents complain[t], really insane.”

And right now, based on yet another corporate media puff piece (Bloomberg in this case), it sure looks like the OIN people are greasing up major journalists for puff pieces this week. iophk told us regarding this article: “When will Microsoft put their money where their mouth is and join?”

“Some may be friends of FOSS on the technical side, but when it comes to policy — especially patent policy — they are certainly part of the problem.”Well, when will IBM actually do something to stop the menace of software patents rather than promote these? Red Hat, which itself pursues software patents of its own (we wrote about this before), gets all excited about OIN even if it doesn’t achieve much. Today it wrote about it that “Fortune reports that Toyota has joined the Open Invention Network as a full member, joining IBM, Red Hat, Google and others.”

Unless or until OIN makes its goal also the abolition of software patents, why would the FOSS community have a good reason to embrace it? Look at the main parties behind OIN. Some may be friends of FOSS on the technical side, but when it comes to policy — especially patent policy — they are certainly part of the problem. Toyota itself is very close to Microsoft.

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The Open Invention Network Keeps Growing, But It Helps Large Corporations, Not Free/Open Source Software http://techrights.org/2016/07/13/toyota-oin-spin/ http://techrights.org/2016/07/13/toyota-oin-spin/#comments Wed, 13 Jul 2016 23:56:56 +0000 http://techrights.org/?p=94370 Piggy bank OIN

Summary: Free/Open Source software (FOSS) continues to be used as a cover for large corporations (like Google, IBM, NEC, Philips and Sony) to maintain a grip on patent pools and act as gatekeepers with software patents that they openwash (not even cross-license, as Oracle v Google serves to illustrate)

WE were never huge fans of OIN, which is why OIN’s CEO and PR people tried hard to convince us otherwise. I saw first-hand accounts where patent trolls were repelled by OIN, which didn’t quite seem to care (maybe because OIN cannot do anything at all about patent trolls, other than attempt to buy/harvest patents before they’re bought to be used offensively). OIN is basically the world’s biggest legitimiser of software patents. IBM, the main company behind OIN (recall its first head of operations, Jerry Rosenthal from IBM), is a patent bully and a notorious software patents proponent, so how can one honestly expect OIN to be part of a true solution? IBM is demonstrably part of many problems.

“IBM is demonstrably part of many problems.”According to this new article from Fortune, joining OIN makes one “a Patron of Open-Source Software” (what a ludicrous headline). To quote from the article: “It’s called the Open Invention Network, and its other members are Google, IBM, Red Hat rht , NEC nec-electronics , Philips phg , Sony sne , and SUSE (a unit of Britain’s Micro Focus). Fortune is the first to report Toyota’s startling move.

“Formed in 2005, OIN’s mission is to protect and encourage the collaborative development and use of open-source software, like the Linux operating system, which can be freely copied, altered, and distributed, and which no one person or company owns. OIN pursues a variety of strategies aimed at protecting the users and developers of such software against the threat of patent suits by proprietary software manufacturers, like Microsoft and Apple. Such suits, if successful, could deny users the freedoms that make open-source software desirable.

“That Toyota would now join the group reflects the growing importance that software is playing in cars, and the growing number of automakers who believe that open-source software is the best approach to providing many of the needed solutions for its vehicles. Open-source champions say such software is cheaper, more flexible, and of higher quality, because it benefits from the pooled resources of collaborative input.”

Toyota, a very close Microsoft partner (probably more so than any other vehicles maker), claims to have joined OIN, but what good will that do for FOSS? Nothing. Toyota is not even a software company. It’s about as relevant to FOSS as that openwashing campaign from Tesla (and later Panasonic). Total nonsense. It’s about as helpful to FOSS as RAND is and speaking of RAND (or FRAND), this new article from IP Watch speaks about FRAND in relation to Europe, where the term FRAND is typically a Trojan horse (or surrogate) for software patents in Europe.

“Toyota, a very close Microsoft partner (probably more so than any other vehicles maker), claims to have joined OIN, but what good will that do for FOSS?”Going back to OIN, it has done virtually nothing so far to protect FOSS. It’s like bogus insurance plan which does not actually work or cover anything (no matter the circumstances). Where is OIN every time Microsoft blackmails Linux/Android OEMs? Speaking of which, Professor Crouch has this new article about insurance based on patents (or copyright, trademark, and trade secret). He says that “Hammond’s insurance company USLI had refused to indemnify Hammond based in-part upon the intellectual property exclusion found in the policy that specifically excluded coverage for any “loss, cost, or expense . . . [a]rising out of any infringement of copyright, patent, trademark, trade secret or other intellectual property rights.” Agreeing, the court particularly found that the basis for TCA’s attorney fee requests stemmed from the Pennsylvania Uniform Trade Secrets Act as well as the Copyright Act – even though no intellectual property infringement claim had been asserted in the underlying case.”

Look what we have come to. With misnomers like “intellectual property”, which compare ideas to “property” and ascribe physical attributes to them (like insurance traditionally did, covering for damage caused to physical things), no wonder the media says joining OIN is becoming “a Patron of Open-Source Software” (FOSS inherently rejects the notion of patron or owner, except in the copyright assignment sense).

“Fortune is the first to report Toyota’s startling move,” its author wrote, but in reality Fortune is the media partner to peddle Toyota’s marketing/propaganda, along with OIN’s agenda.

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Patent Bubbles Implode and Patents Are Passed to Trolls for ‘Monetisation’ http://techrights.org/2016/06/12/patents-monetisation/ http://techrights.org/2016/06/12/patents-monetisation/#comments Sun, 12 Jun 2016 22:04:06 +0000 http://techrights.org/?p=93449 Patent aggression by proxy not a novel concept

Ballmer on patents

Summary: A brief update on the world’s largest patent troll, Intellectual Ventures, and IBM, which is becoming one of the largest patent aggressors while spreading its patents around

TECHRIGHTS has given several examples of universities with a lot of patents selling their patents to trolls like Intellectual Ventures. This is a vicious cycle of patent granting and litigation (or legal bullying/extortion). Who benefits here? Remember that many of these patents were granted on the backs of taxpayers. Should these taxpayers then be taxed by vicious patent trolls, using the same patents the public paid for? Intellectual Ventures makes neither products nor patents; it’s just a vulture, an insidious predator. It’s a lot worse than hedge funds.

IAM is still grooming the world’s largest patent troll, the Microsoft-connected Intellectual Ventures, having made it their cover page feature in the latest magazine.

Something called Invention Development Fund, or IDF for short, is acting as an army of occupation with patents right now. To quote IAM (which treats this like a wonderful thing, as usual): “As well as building and monetising one of the largest patent portfolios in the business, another part of the Intellectual Ventures story has been its focus on incubating and spinning out successful start-ups. The number of new companies that IV has helped launched is now approaching 10 thanks to its latest spin out – that of its Invention Development Fund. IV has kept the news fairly low key to this point although it did disclose some details in a blog post last month. Luckily for IPBC delegates, Paul Levins of IDF was on hand on the last panel of the day called ‘Adapt or die’ to give a little more insight into what the newly independent business does. “We were the third fund of IV,” he told the audience. “In the course of the last three weeks we’ve spun out from IV. What we’d describe ourselves as doing is about new invention creation, invention services and product development. It’s a specific class of invention creation targeted at companies interested in doing new things in the marketplace, but who may have previously found appeal in the open innovation space. Many times you quickly discover there’s a lot of pieces missing with open innovation. Companies who work with us have a partner who’s willing to sit beside them and place bets on future technologies. We do that by creating brand new inventions that’ve been outsourced from a very well-curated inventor network. You get open innovation but you still have the benefit of getting IP protection and product development.” The general message seems to be watch this space. We understand a full rebranding of IDF is currently in the works. There should be more details by the end of the summer.”

This isn’t about creating anything but about coercion. Intellectual Ventures already has thousands of satellite firms, usually created for litigation purposes (empty shells with no/little staff), so what’s another one for? This is not about creating innovation/products but all about taxing those who do. Recall what IBM has begun doing amid layoffs and see this very recent article titled “IBM’s Odd New Role: Selling Patents To Silicon Valley”. It says the following: “Alex Lee, head of patent research at EnvisionIP, writes most of the IBM-purchased patents appear to fit into Silicon Valley companies’ defensive strategies. In other words, the California companies aren’t snapping up patents as a way of expanding into new areas that would have been unknowable mysteries to them otherwise. Instead, the patents help the Silicon Valley companies ward off suits by various parties that might otherwise be able to argue about who came up with an idea first.”

This actually overlooks IBM’s aggressive patent strategy, which goes back to its days of litigation against Sun. Perhaps IBM is beginning to realise that its patents aren’t so valuable after all? IBM has been selling quite a few of its business units to China and even outsourced some jobs, such as office suites development, to China. All that’s left now at IBM is a large pile of patents (bigger than anybody else’s).

Another patent bubble explodes/implodes, according to IAM [1, 2], this time in China where there is a desperate ‘monetisation’ effort and patents are equated with all sorts of ludicrous notions.

We have entered a scary time when patents are like aging nuclear weapons or old stockpiles awaiting expiry, so they are being ‘monetised’ (or used) by airdrops and sales to rogue entities. This won’t end nicely. The next few posts will focus on examples of patent trolls.

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IBM, Google and Microsoft Patent Stockpiles Demonstrate That Today’s US Patent System Exists for Billionaires, Not for Inventors http://techrights.org/2016/06/05/patent-systems-for-billionaires/ http://techrights.org/2016/06/05/patent-systems-for-billionaires/#comments Sun, 05 Jun 2016 18:00:47 +0000 http://techrights.org/?p=93193 Not your grandfather’s patent system and not your grandfather’s IBM…

Reuters on tax havens
Creating virtual wealth. Remember Bill Gates ranting about the patent system when he was younger and Microsoft was a lot smaller. Now he makes billions out of various patents, including Monsanto’s, and he pays virtually no tax.

Summary: Persistent lobbying and a surrender of fast-growing companies to the system which was deformed so as to offer protectionism to the super-rich take their toll and distort the very essence that motivated patent systems in the first place

ACCORDING TO this dubious new chart from IAM, it’s not IBM but Google that supposedly leads based on some patent criteria. This is not a cause for celebration but a cause for alarm as over half a decade ago Google was somewhat of a patents antagonist and I spoke to relatively high-level managers at Google about it. Basically, Google erroneously made the choice to waste time and effort on patenting rather than fight an unjust system that had increasingly ganged up against Google.

In some sense, Google has become greedy and sort of defected. It is now actively pursuing patents on software (including patents on driving — something for which I developed an Android app with help from someone who worked at Google) and no wonder Google does nothing against software patents anymore. That would be hypocritical.

Now, the usual defense (not just from Google) might be that Google never attacks using patents unless attacked first, but then again, that’s just what happens in companies when they’re on the way up (ascent). As things begin to turn sour/bitter, as is already the case at IBM, the non-technical managers are turning aggressive and even attacking with any software patents at their disposal. They see patent aggression as a sort of ‘insurance policy’ or a Plan B. Microsoft, as we noted in our previous post, only began doing this a decade ago (to present), around the same time of Windows Vista and the Novell deal.

“If Google starts to nosedive (no company lasts forever, not even with government subsidies) sooner than the expiry (lifetime) of these patents, then there’s potential of selling/auctioning patents to patent trolls or attacking directly, as infamously IBM does.”Manny Schecter, who is in charge of patents at IBM, does not hide the company’s real intentions, lobbying for software patents, and even the lobbyists (people like David Kappos, who came from IBM). He’s quite reckless from a marketing point of view. “We should neither deny that the patent system promotes innovation overall and that abuse of it should be properly curbed,” he wrote the other day at Twitter. What about the patent abuse by IBM (Schecter’s department), which uses software patents against small companies? What does that tell us about OIN?

The FFII’s President responded to Schecter with “”promotes innovation” should be replaced by “promotes litigation”. Innovation cannot exist without any quantification.” As I put it across to both, the patent system was created to incentivise dissemination (publication), not to provide a litigation sledgehammer for billionaires to whack inventors.

Sadly, Google is now part of this whole ‘patent cartel’, as one might be tempted to call it. Google is not aggressive (at least not yet), but time will tell what happens with these patents. If Google starts to nosedive (no company lasts forever, not even with government subsidies) sooner than the expiry (lifetime) of these patents, then there’s potential of selling/auctioning patents to patent trolls or attacking directly, as infamously IBM does.

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IP3 Demonstrates That Today’s Patent Systems Devolve Into a Conglomerates’ Game, Won’t Protect the Mythical Small Inventor http://techrights.org/2016/05/22/ip3-symptom-of-patent-trends/ http://techrights.org/2016/05/22/ip3-symptom-of-patent-trends/#comments Sun, 22 May 2016 19:26:50 +0000 http://techrights.org/?p=92792 This increasingly globalised system is not for the “small guy”

A small guy

Summary: Multinational corporations bring together their shared interests and steer the increasingly-inseparable patent systems according to their needs and goals, but has anyone even noticed?

For anyone who still thinks that patents are designed to protect the small guy/gal and/or his/her small company/ies… well, maybe this was true a long time ago. The USPTO moved in a bad direction quite some time ago and the EPO, led by Battistelli and his goons, trots in the same direction, notably (but not only) with the UPC. People’s rights and people’s wealth are under constant attack so that corporations’ power and wealth can increase and make way to greater dominance in an increasingly globalised world (overcoming environmental regulations, bypassing minimum wage laws, diminishing working conditions and so on). Just see what I.S.D.S. is all about when assessing the real motivation of TPP or TTIP (not just the forces behind them, those who prefer secrecy due to fear of public reaction). It’s class war, that’s what it boils down to.

Earlier this month and a month ago we wrote about Creative’s attempt to ban a lot of Android devices (at import level). TechDirt finally wrote about it just before the weekend:

It wasn’t enough that Creative Labs/Creative Technology spent March 24th suing almost every big name in the cell phone business for patent infringement. These lawsuits, all filed in the East Texas patent troll playground, asserted the same thing: that any smartphone containing a music app (which is every smartphone produced) violates the patent it was granted in 2005 to use in conjunction with its mp3 players. “Venue is proper” because smartphones are sold in Texas, even if the plaintiffs are located in California and Singapore, respectively.

That wasn’t all Creative Technology did. It also filed a complaint with the US International Trade Commission seeking to block the import of smartphones from manufacturers like Sony, LG, BlackBerry, Samsung, etc. under the theory that every imported phone contains patent-infringing software. The ITC has opened an investigation of Creative’s allegations, which will at least hold off any potential import blocks until it reaches a decision. The ITC’s summary of Creative’s patent claims clearly shows how broad the patent’s potential coverage is — and (inadvertently) why it should be invalidated.

[...]

Google has decided it’s not going to wait around for the ITC or east Texas courts to come to the wrong conclusions. It’s gone on the offensive, seeking declaratory judgment that it does not violate Creative’s broad patent. Every company sued by Creative on March 24th sells Android phones that contain Google’s “Play Music” app. On behalf of its customers (and its own Motorola Mobility, which was also sued), Google wants Creative’s BS patent’s power neutered.

We already remarked on Creative’s real ‘business’ at present. This isn’t a case of David v. Goliath but more like Troll v. Google. This troll has an old brand and recognised name (in technology circles), so it’s easy to lose sight of what’s happening here. MPEG-LA operates similarly on behalf of giants like Microsoft and Apple.

“This troll has an old brand and recognised name (in technology circles), so it’s easy to lose sight of what’s happening here.”Incidentally, and probably without direct correlation to the above, some days ago the patent lawyers’ sites began floating ‘news’ about IP3 (new name, not a new thing), e.g. [1, 2]. The latter said: “This blog recently covered Google’s Patent Purchase Program, here and here. Google basically offered to consider purchasing submitted patents. The Program is back, but this time expanded with a new group of players under the title, “IP3 by Allied Security Trust.”

We wrote about this before, but it has just been expanded and rebranded (or renamed, to put it more politely). Here is what IAM (patent maximalist) wrote: “In many ways IP3, the new patent selling platform backed by the likes of Google, Apple, Ford, Microsoft and IBM that was announced on Wednesday, is a product of its time. It’s hard to imagine, say five years ago, Google and Apple jumping into bed together on anything patent-related – or for companies in very different industries pooling resources in the way they have for IP3. But today is different: with the smartphone wars almost at an end and everyone talking about convergence, IP3 reflects the more cooperative, partnership-based approach to IP strategy that a growing number of operating companies insist is their new ethos.”

“They just want more mega-corporations to coalesce and use their collective power for protectionism and a sort of cross-licensing with extra edge (battling small plaintiffs which target the well-funded cabal).”Notice the size of the backers and mind who they target with IP3. Is this the fairy tale which the patent systems’ biggest proponents try to tell us about when they defend further scope expansion and sharp increases in the number of patents? As if the more patents we have, the more ‘lone inventors’ are ‘protected’? Consider the cost of application, renewal, litigation, etc. It’s very prohibitive. Here goes IAM again, in its initial report about this: “A group of major patent-owning companies – Google, Microsoft, Apple, IBM, Ford, Cisco and Facebook among them – have banded together to form the Industry Patent Purchase Program – or IP3 – providing patent owners with a streamlined way of selling their IP. The new initiative has been developed in conjunction with AST which will play the central role in administering the project. In effect it is the second iteration of Google’s Patent Purchase Promotion, which the search giant launched last summer and which saw it buy up a number of patents in a price range of $3,000 to $250,000.”

Can I join too? I have no patents, but I too would like this special/magical ‘protection’. The press release about IP3 is a big load of nonsense which is “Calling All Patent Owners”, so people like myself are obviously excluded. They just want more mega-corporations to coalesce and use their collective power for protectionism and a sort of cross-licensing with extra edge (battling small plaintiffs which target the well-funded cabal). What kind of arsenals are they pooling together?

“What all the above stories have in common is that they show patent empowerment by large corporations, their consortia, their trolls (or ‘pools’ like MPEG-LA) and at whose expense?”Speaking of Google, which is the key company in IP3, see the new article “Tech and Auto Firms Join Google-Led Patent Purchase Program” and recall what we recently wrote about the hoard of software patents on driving (not a new concept). Watch how Google is now stockpiling driving patents, as reported last week by dozens of publications, e.g. [1, 2, 3, 4] (very limited list as an exhaustive one would be vast).

Google, unlike IBM, never suffered massive layoffs (not yet anyway), but would it become a patent aggressor like IBM recently became (using software patents)? Every company collapses sooner or later. No company exists for an eternity. See what happened to Nokia‘s mobile patents (Microsoft instructed Nokia to give these to Google-hostile trolls).

“This is highly regressive and it corrodes the spirit of the so-called ‘intellectual property’ system we are told to respect.”Dr. Glyn Moody has this new article about a patent we mentioned the other day. It shows just how far IBM’s patent lust has gone. To quote Moody: “Stories about copying turn up a lot on Techdirt. That’s largely as a consequence of two factors. First, because the Internet is a copying machine — it works by repeatedly copying bits as they move around the globe — and the more it permeates today’s world, the more it places copying at the heart of modern life. Secondly, it’s because the copyright industries hate unauthorized copies of material — which explains why they have come to hate the Internet. It also explains why they spend so much of their time lobbying for ever-more punitive laws to stop that copying. And even though they have been successful in bringing in highly-damaging laws — of which the DMCA is probably the most pernicious — they have failed to stop the unauthorized copies. [...] We’ve already seen Microsoft’s Protected Media Path for video, a “feature” that was introduced with Windows Vista; it’s easy to imagine something a little more active that matches the material you want to view or listen to against a database of permissions before displaying or playing it. And how about a keyboard that checks text as you type it for possible copyright infringements and for URLs that have been blocked by copyright holders? There is a popular belief that the computer in Stanley Kubrick’s “2001: A Space Odyssey” was named “HAL” after IBM, by replacing each letter in the company name with its predecessor. That’s apocryphal, but with this latest patent application IBM is certainly moving squarely into HAL territory. ”

Yeah, some ‘innovation’…

And we all surely benefit, right?

From patent aggressor IBM, according to this new IAM report, a notorious character moved to Rovi (another patent aggressor) and now he lands inside HEVC Advance, which is a patent troll [1, 2] (IAM dares not say this term, so it would say only “PAE” or “pool”). Remember who is behind HEVC Advance. No ‘lone inventors’ at all. To quote IAM: “Technicolor – previously known as Thomson – has long been a leading media and entertainment business with a strong R&D focus, and has one of Europe’s biggest technology and patent licensing operations – first developed under the leadership of IP Hall of Famer Béatrix de Russé. In 2013, Boris Teksler was brought in to lead the company’s technology operation, with a remit that included IP; and when Teksler departed in June 2015 he was replaced by Stéphane Rougeot, who has now also left the company. As if that was not enough, for much of 2014 and early 2015, the Technicolor board was involved in a bitter dispute about the company’s future direction with shareholder Vector Capital. That has now been settled.”

What all the above stories have in common is that they show patent empowerment by large corporations, their consortia, their trolls (or ‘pools’ like MPEG-LA) and at whose expense? The same mythical character which the patent system was presumably created to protect. This is highly regressive and it corrodes the spirit of the so-called ‘intellectual property’ system we are told to respect.

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[ES] Compañías Grandes Que Se Están Convirtiéndo Trolles Amenazan a Linux, Tratan de Embargar Importaciónes http://techrights.org/2016/05/15/microsoft-creative-y-android/ http://techrights.org/2016/05/15/microsoft-creative-y-android/#comments Sun, 15 May 2016 09:57:57 +0000 http://techrights.org/?p=92613 English/Original

Article as ODF

Publicado en GNU/Linux, Google, IBM, Microsoft, Patents at 11:17 am por el Dr. Roy Schestowitz

Las patentes de software atacan de nuevo

La creencia no es sustitúto de la aritmética.”

Henry Spencer

Sumario: Batállas legales que largamente envuelven a Android (y por extensión Linux) son notados en los medios esta semana porque hay una solicitud para su prohibición (interdicto)

Hay una creciénte tendencia en economías que están yendo para abajo porque crecimiénto infinito es imposible y los monopolistas luchan para compensar sus pérdidas y sobreponérse a nuevas fronteras. A las compañías que alguna vez produciéron productos asombrósos no les queda nada pero patentes, así que recurren a chantáje de patentes y tratan de escurrir a otras compañías de sus ganancias. Observen como, en medio de grandes despidos, IBM esta atacándo compañías legítimas usando patentes de software en estos días, ganándose títulos como “el Más Grande Troll de Patentes del Mundo”. IBM se considera una victicma y dijo: “IBM, una reliquia de las firmas tecnológicas del siglo 20, ha recurrido a usurpar la propiedad intelectual de las compañías nacidas este milenio.” ¿Puede alguién confíar IBM con la OIN más? IBM no es un aliado creíble, es un animal encorralado asustado de no emplear un medio millón de personas como solía. ‘Pobrecito’ IBM…

No sólo compañíás que pretendes ser todo por Linux hacen esto. Una de estas compañíás es Creative, de la que hablamos el otro dia. Como un nuevo artículo lo puso, “Creative se levanta de los muertos para tratar de destruir a Android” y para citar:

¿Recuerdas Creative? En la década de 2000, la empresa tuvo su gran periodo, ya que sus reproductores de MP3 Zen fueron los anti-sistema alternativo al iPod. En estos días, la empresa con sede en Singapur en su mayoría hace auriculares para juegos y altavoces de la computadora – nada que ver con los teléfonos inteligentes, en otras palabras. Pero gracias a una denuncia presentada en contra de todos los fabricantes de teléfonos Android grande, Creative ha declarado la guerra a Android en silencio.

La queja presentada contra un quién es quién de los teléfonos inteligentes Android: Samsung, LG, HTC, Blackberry, Sony, ZTE, Lenovo y Motorola. El tema en cuestión es reproductores de música: todos los teléfonos tienen ellos, y Creative tiene una patente que piensa está siendo violada. En concreto, todos los teléfonos son capaces de “reproducción de archivos multimedia almacenados seleccionados por un usuario desde una visualización jerárquica.”

Android Police escribió que “Creative Quiere Prohibir a la Mayoría de Telefonos Android Phones de los EE.UU por una Supuesta Infracción de Patentes” y para citar unos párrafos:

Creative no es un nombre que se oye tan a menudo en la electrónica de consumo en estos días. La firma con sede en Singapur es conocida por la fabricación de productos de audio, incluyendo la línea de Zen de reproductores multimedia. Creative ha presentado una queja ante la Comisión Internacional de Comercio (ITC), alegando que, básicamente, todos los fabricantes de teléfonos Android está infringiendo sus patentes de Zen al mostrar su música. Se quiere que todos sean prohibidos, pero lo que realmente quiere es el dinero.

La queja se dirige a ZTE, Sony, Samsung, LG, Lenovo, Motorola, HTC y BlackBerry. La cuestión es cómo todo el mundo ve a las canciones y álbumes en un sistema de menú jerárquico muestra, que dice que es un invento suyo. Se fue detrás de Apple por lo mismo hace una década y, finalmente, consiguió un acuerdo de $ 100 millones. Si el CCI está de acuerdo con Creative, que podría conducir a la prohibición de dispositivos infractores, lo que sería una gran cantidad de teléfonos.

Ahora recuérden a Microsoft, un ¿ socio de Creative? No hay un cese al fuego a su chantaje de patentes como reporto hace poco. La parte de Google en Motorola teléfonos móviles viene a la mente, vean este nuevo reportaje que demuestra que Microsoft todavía esta atacándo a Linux/Android con patentes de software (mientras al mismo tiempo afirma “amar a Linux). Para citar a Reuters (reporte corto): “La patente de Microsoft Corp en camino para mostra que un web brows todavíá esta subiéndo contenido no es inválida, una corte de apelaciónes de los EE.UU dijo este Martes en vista del desafío de Motorola Mobility y Google Inc.

“Un panel de tres jueces de la Corte de Apelaciones de EE.UU. para el Circuito Federal falló a favor de Microsoft y sus abogados Klarquist Sparkman, la afirmación de un fallo de la Patente de EE.UU. Oficina de Marcas y que se negó a cancelar una parte clave de la patente. El panel no se dio por razones de su decisión, que se produjo dos días después de los argumentos orales en el caso.”

Por lo que Microsoft está todavía acosándo a Motorola y Google (es decir, Android) y al mismo tiempo dice que “ama a Linux”. Tiene sentido, ¿verdad? Mandatos no sólo buscados por Creative (recurrir a la ITC como lo hizo Microsoft hace cerca de una década con el fin de bloquear un rival al este de Asia); Es probable que sólo estrategia de crecimiento en Estados Unidos, a juzgar por estos nuevos artículos escritos por bufetes de abogados de Canadá y Brasil [1, 2] para ser incluído en IAM principios de esta semana.

ITC investigará a Samsung y Sony por reclamos de patentes” dice otro nuevo titular. ¿Quién se beneficia de esto? Para citar:

La Comisión de Comercio Internacional (ITC ) ha dicho que va a iniciar una investigación sobre fabricantes de teléfonos inteligentes como Sony, Samsung, ZTE y LG por la presunta violación de patentes.

En un comunicado en su página web, la ITC dijo que su investigación se centraría en “dispositivos electrónicos portátiles con la capacidad de reproducir archivos multimedia almacenados”.

Lenovo, Motorola, HTC y BlackBerry pueden destinarse también en la investigación.

La investigación de la sección 337 se basa en una denuncia presentada por Creative Technology con sede en Singapur y Creative Labs, con sede en Milpitas, California, en Marzo.

Creative solía ser amable en la década de 1990, pero ahora es notoria por su acoso a Linux (hay conexiones con Microsoft e Intel). Además de esta controvertida medida de Creative nos hemos enterado que el propio troll de patentes de Ericsson que todavía está activo en el Reino Unido y al parecer permanecera en la Corte de Patentes del Reino Unido en lugar de la Corte de Apelación Competitiva , basado en el informe de ayer, que dice: “Para cualquier persona se mantenga al tanto, la disputa de patentes de mamut en Unwired Planet v Huawei y Samsung continúa a lo largo de un trueno a paso. La última decisión del Tribunal de Patentes de la saga abordó la cuestión de si los problemas de competencia – posiblemente la parte más jugosa del caso – podrían ser transferidos a la Competencia Appeal Tribunal (CAT)? A finales de abril, el Sr. Justicia Birss respondió a esta cuestión, la decisión de que las cuestiones deben permanecer en la División de la Cancillería [2016] EWHC 958 (Pat).”

Permanecemos completamente comprometidos con el rastreo meticulóso de estas amenazas al Free software, incluyendo Android, ya que las patentes de software no son compatibles con el Free software como Linux. Cuando estas patentes comienza a sobrepasar las fronteras Europeas nos damos cuenta que la enfermedad se esta esparciéndo en vez de ser contenida (e.g. debido a Alice en los EE.UU). Hay mucho en riesto.

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Large Firms Which Are Becoming Troll-Like Threaten Linux, Try to Embargo Imports http://techrights.org/2016/05/12/microsoft-creative-ericsson-android/ http://techrights.org/2016/05/12/microsoft-creative-ericsson-android/#comments Thu, 12 May 2016 16:17:40 +0000 http://techrights.org/?p=92566 Software patents strike again

“Belief is no substitute for arithmetic.”

Henry Spencer

Summary: Legal battles which primarily involve Android (and by extension Linux) are noted by the media this week because there is a request for bans (injunction)

THERE is a growing trend in downturn economies because infinite growth is impossible and monopolists strive to make up for losses by overstepping new boundaries. Companies that once produced awesome products have nothing left but patents, so they resort to patent shakedowns and try to claw in other companies’ revenue. Watch how, amid massive layoffs, IBM is attacking legitimate companies using software patents these days, earning itself labels like "the World's Biggest Patent Troll". IBM’s victim said: “IBM, a relic of once-great 20th century technology firms, has now resorted to usurping the intellectual property of companies born this millennium.” Can anyone trust IBM with OIN anymore? IBM is not a credible ally, it’s a cornered animal afraid of not employing like half a million people anymore. ‘Poor’ IBM…

Not only companies which pretend to be all about Linux do this. One such company is Creative, which we wrote about the other day. As one new article put it, “Creative rises from the dead to try and destroy Android” and to quote:

Do you remember Creative? In the early 2000s, the company had a brief period of being cool, as its Zen MP3 players were the anti-establishment alternative to the iPod. These days, the Singapore-based company mostly makes gaming headsets and computer speakers — nothing to do with smartphones, in other words. But thanks to a complaint filed against every big Android phone manufacturer, Creative has quietly declared war on Android.

The complaint is filed against a who’s-who of Android smartphones: Samsung, LG, HTC, BlackBerry, Sony, ZTE, Lenovo and Motorola. The issue at hand is music players: all the phones have ’em, and Creative has a patent it thinks is being infringed on. Specifically, all the phones are capable of “playing stored media files selected by a user from a hierarchical display.”

Android Police wrote that “Creative Wants To Ban Most Android Phones From US Over Alleged Patent Infringement” and to quote some paragraphs:

Creative is not a name you hear as often in consumer electronics these days. The Singapore-based firm is known for making audio products, including the Zen line of media players. Creative has filed a complaint with the US International Trade Commission (ITC) alleging that basically every maker of Android phones is infringing its Zen patents by displaying your music. It wants them all banned, but what it really wants is money.

The complaint targets ZTE, Sony, Samsung, LG, Lenovo, Motorola, HTC, and BlackBerry. At issue is how everyone shows you songs and albums in a hierarchical menu system, which Creative says it invented. It went after Apple for the same thing a decade ago and eventually got a $100 million settlement. If the ITC agrees with Creative, it could lead to a ban on infringing devices, which would be a lot of phones.

Now, remember Microsoft, a partner of Creative? There is definitely no patent ceasefire as publicly claimed some months ago. Google’s stake in Motorola’s mobile business in mind, see this new report which shows that Microsoft is still attacking Linux/Android with software patents (while claiming to “love Linux). To quote Reuters (short report): “Microsoft Corp’s patent on a way to show that a web browser is still loading content is not invalid, a U.S. appeals court said on Tuesday in the face of a challenge by Motorola Mobility and Google Inc.

“A three-judge panel of the U.S. Court of Appeals for the Federal Circuit found in favor of Microsoft and its Klarquist Sparkman attorneys, affirming a ruling by the U.S. Patent and Trademark Office that refused to cancel a key part of the patent. The panel did not give reasons for its decision, which came just two days after oral arguments in the case.”

So Microsoft is still going after Motorola Mobility and Google (i.e. Android) and it says it “loves Linux”. Makes sense, right? Injunctions were sought not only by Creative (resorting to the ITC as Microsoft did nearby a decade ago in order to block an east Asian rival); it’s probably just growing strategy in America, judging by these new articles authored by law firms from Canada and Brazil [1, 2] to be pinned at IAM earlier this week.

“ITC to investigate Samsung and Sony over patent claims” says another new headline. Who benefits from this? To quote:

The US International Trade Commission (ITC) has said it will launch an investigation into smartphone makers including Sony, Samsung, ZTE and LG over alleged patent infringement.

In a statement on its website, the ITC said its investigation would centre on “portable electronic devices with the capability of playing stored media files”.

Lenovo, Motorola, HTC and BlackBerry will also be targeted in the investigation.

The section 337 investigation is based on a complaint filed by Singapore-based Creative Technology and Creative Labs, based in Milpitas, California, in March.

Creative used to be OK in the 1990s, but it’s now notorious for its poor treatment of Linux (there are Microsoft and Intel connections). In addition to this controversial move from Creative we have also just learned about Ericsson's own patent troll that is still active in the UK and will apparently stay in the UK Patents Court rather than the Competition Appeal Tribunal, based on yesterday’s report which says: “For anyone keeping tabs, the mammoth patent dispute in Unwired Planet v Huawei & Samsung continues to thunder along at pace. The latest decision from the Patents Court in the saga addressed the question as to whether the antitrust issues – arguably the juiciest part of the case – could be transferred to the Competition Appeal Tribunal (CAT)? At the end of April, Mr Justice Birss answered that question, deciding that the issues should remain in the Chancery Division [2016] EWHC 958 (Pat).”

We remain committed to meticulous tracking of these threats to Free software, including Android, as software patents are inherently not compatible with Free software such as Linux. When such patents start to overstep the European border we just know that this disease keeps spreading rather than contained (e.g. owing to Alice in the US). There is so much at stake.

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IBM is Not a ‘Patent Troll’ But Increasingly, Over Time, Troll-Like http://techrights.org/2016/05/10/groupon-strikes-back/ http://techrights.org/2016/05/10/groupon-strikes-back/#comments Tue, 10 May 2016 18:03:46 +0000 http://techrights.org/?p=92489 When products aren’t selling those who have amassed patents weaponise them and tax the rivals’ products

Ginni Rometty

Photo source (modified slightly): The 10 Most Powerful Women in Technology Today

Summary: Groupon, which has come under a software patents attack from IBM, strikes back and spin sites like IAM keep denying that the term “patent trolls” means anything at all

EARLIER this year we chastised IBM for attacking companies using software patents. What became mainstream news today is “Groupon counters IBM over software patents.” We found many articles about it this morning [1, 2, 3, 4, 5, 6, 7, 8] and they indicate that IBM’s victims are fighting back. IBM’s ‘blowback’, so to speak, did not sink the stock or anything like this [1, 2], but surely this will generate negative press for IBM.

“We don’t call IBM a “patent troll”, but some pundits do (John Dvorak for instance called them the biggest patent troll).”When thugs like IBM attack using software patents (whilst actively lobbying for them) they essentially put pressure on other companies, including those not enamoured with/fond of patents, to file for ‘defensive’ patents, perpetuating the problem. Now that IBM is openly attacking legitimate companies using such patents (and surely extorts others) one can hope that IBM will go bankrupt fast, or alternatively appoint a new CEO who doesn’t choose to be a bully. Some pundits now call IBM a "patent troll", which definitely harms IBM’s reputation and ruins the brand.

If anyone among our readers chooses to cancel a contract with IBM (one probably should) or refuse/reject their marketing people, tell them it’s due to patent aggression as this can definitely help change their policy. Looking for someone to blame for IBM going rogue, lobbying for software patents and attacking legitimate companies using software patents? Blame Manny Schecter as well, not just the CEO. He’s the company’s patent chief and he has been rather outspoken as of late against any nation which rejects software patents.

We don’t call IBM a “patent troll”, but some pundits do (John Dvorak for instance called them the biggest patent). Some also call Yahoo a potential “patent troll”, so IAM — partly funded by patent trolls — attacks them. To quote IAM: “While we wait to see how potential acquirers value the IP, some in Silicon Valley are getting worked up about just what might happen to those patents. Last week the well-known tech journalist and author Steven Levy published a piece on his Backchannel blog which asked, “Will Yahoo become a patent troll?””

“Microsoft even has a standalone patent troll entity called “Microsoft Licensing”, putting aside all sorts of satellites and other patent trolls is uses to blackmail rivals.”It’s not news that IAM is a trolls denialist. To quote the concluding paragraph: “There will no doubt be many more column inches – on this blog and elsewhere – written on the Yahoo sale before it reaches its conclusion. Hopefully it will give members of the patent and investor communities an opportunity to discuss just how a public company – failed or otherwise – should properly value its intangible assets particularly in the current climate. But please, whatever happens, lets leave the troll moniker out of it.”

As we have seen in the case of Nokia after Microsoft had hijacked it, Nokia patents could be passed to patent trolls who later also paid IAM (literally, the same troll in the case of MOSAID). In today’s IAM output one can also see/learn that it has “been widely reported in Chinese-language (and, increasingly, English-language) media over the past few days that Huawei may be receiving hundreds of millions of US dollars in patent licensing fees from Apple.” Given what Nokia has done to Apple and what Apple has done (and is still doing) to many Linux-centric companies, it’s hard to find any sympathy for any of these companies. They put patents before products as time goes on and sales of actual product are harder to make (Apple has suffered a significant decline recently). While we never called companies like IBM, Yahoo, Nokia or Apple “trolls”, some people do call them that and to a certain degree it’s indeed trolling given how they position themselves. Microsoft even has a standalone patent troll entity called “Microsoft Licensing”, putting aside all sorts of satellites and other patent trolls is uses to blackmail rivals.

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