Bonum Certa Men Certa

Microsoft Sued by VirnetX (Again) and Kodak Alleges That Microsoft's Patent Troll Bullies Companies Along With Ray Niro

Nathan Myhrvold



Summary: Intellectual Ventures is said to be attacking companies using its proxies and Microsoft suffers the wrath of the very practice it advocated with investments (patent trolling)

WITH some of its latest patent deals (e.g. Amazon [1, 2, 3]), Microsoft made it abundantly clear that it views racketeering [1, 2, 3, 4, 5, 6, 7] as an acceptable business model. No Microsoft executives have been arrested for it because we live in a society that typically jails the poor and glorifies the rich. It's part of the indoctrination system. We are taught that large entities are immune to social responsibilities, whereas small ones can be viewed of "crooks", "nutcases", or "terrorists". Both are harmful and there is room for infinite hypocrisy.



But anyway, Microsoft is quickly finding out that those small "terrorists" -- the patent trolls -- can cause a lot of damage. Shortly after losing the VirnetX case [1, 2, 3, 4, 5, 6, 7, 8], Microsoft gets sued by VirnetX again (this time triple damages for Vista 7). VirnetX is of course just a patent troll that contributes nothing to industry, whereas Microsoft is a marketing firm that contributes nothing to industry, except harm and monoculture.

"Usually Microsoft doesn't develop products, we buy products."

--Arno Edelmann, Microsoft's European business security product manager



Here is some more coverage of Microsoft's loss to VirnetX:

Microsoft has been ordered by a US federal jury in Texas to pay nearly $106m to VirnetX Holding Corporation for infringing two internet communication patents.


Microsoft's booster Emil Protalinski says that Microsoft will appeal, as usual. It's the same rollercoaster of exhaustion when it comes to i4i [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12].

“Microsoft is a patent troll or at least a backer of some; one could argue that Microsoft is a patent troll by association...”Based on the words of Microsoft's patent troll at Intellectual Ventures, this massive patent-trolling firm was created after discussions with Bill Gates; he created his own troll to 'address' the issue of patent trolls. In order to avoid the "troll" status, Gates and his friends established a model whereby there is reliance on a central hoarder of patents that lends patents to legal attack dogs. This business model has proven successful because some large companies paid "protection money" to Intellectual Ventures under NDAs. Intellectual Ventures has no less 1,000 firms connected to it; these firms are akin to armed mafia people who will go around shooting victims and their families under "mysterious circumstances" unless those victims pay money to the mafia Dons, namely Nathan Myhrvold, Bill Gates, and their ilk (they are financially connected and Gates is part of this vehicle that resembles pyramid schemes). Microsoft is a patent troll or at least a backer of some; one could argue that Microsoft is a patent troll by association and the following new article sheds light on the connection to the father of patent trolling, Ray Niro. We wrote about this connection before

"Kodak Says Intellectual Ventures Behind Patent Lawsuit Filed By Shell Company," says TechDirt:

It seems that at least one company sued over such a patent is hitting back. Joe Mullin points us to the Legal Pad blog, which notes that Kodak, who has been sued for patent infringement by a shell company (PFI) being represented by Ray Niro (famous for, among other things, being the first person labeled a "patent troll," as well as suing a bunch of companies he didn't like with a bogus patent -- finally rejected for good, recently -- that he claimed covered any website that used a JPEG image), doesn't believe that it's really the shell company that's behind this lawsuit. It's demanding that Intellectual Ventures take part...


The original report asks, "Will Patent Holder IV [Intellectual Ventures] Show Its Face to Kodak?"

Kodak is trying to draw large patent hoarder Intellectual Ventures into court.

With its 30,000 patents and opaque veil of mystery, IV has shied away from the courts, likely because an allergy to discovery. But with its new money making scheme of selling patents to trolls who then file lawsuits (free reg. req.), you knew that IV would eventually end up in a courtroom.

Here are the basics on the Kodak case:

1. IV sold patent to shell company named Picture Frame Innovations.

2. Picture Frame, represented by Ray “the original patent troll” Niro, sued Kodak for patent infringement.

3. IV co-founder Peter Detkin told me last year that IV is now cutting deals where it sells patents and takes a cut of any money made by filing lawsuits (free reg. req.). So it seemed like IV might have struck such a deal with Picture Frame and Niro.


We wrote about Kodak and patents before [1, 2].

Recent Techrights' Posts

It's Not a GAFAM World Anymore and There Are Far More Operating Systems Than Google's, Apple's, and Microsoft's
we're not getting the full picture of what's happening
Microsoft's XBox is Going Away Like Microsoft's Skype (Slowly But Surely, Then All at Once)
XBox is dying rapidly
Codecs and Software Patents - Part IV - Things Got So Bad That Some Laptop Sales Got Banned in the EU (Over Software Patents!)
If software patents lead to such severe outcomes, shouldn't the media pay closer attention to the problem?
SLAPP Censorship - Part 69 Out of 200: Microsoft's Graveley Strangles, Gets Arrested, Charged, Then Asks for Apology From Those Who Reported It by Recycling Garrett's Plea for Apology
Garrett realised that his "funny" lawsuit wasn't so funny anymore
 
NDAs as a Price Tag on Criticism (or Honest Expressions of Opinion)
What ever happened to accountability? Suppressed by reverse bribes (via NDAs)?
Internal Microsoft Communications Confirm: "Buyout" Offer Worse Than a Year's Salary and Microsoft Offers "Retirement" to Young People Who Cannot Retire
Does that sound like a good offer or marching orders?
Site Overhauls at Cybershow and at analognowhere.com (Less is More!)
They seem to be replacing the heavy PHP backend with static HTML pages
The Corrupt Lecture the Non-Corrupt - Part XVI - EPO Had Data Breaches, Covered Them Up, Now Lectures Staff That Didn't Do It and Didn't Cover It Up
Imagine what would happen to staff if (non-anonymously) blowing the whistle on management leaking and then covering up EPO data breaches
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, May 07, 2026
IRC logs for Thursday, May 07, 2026
Mass Layoffs at IBM's Kyndryl, Slop Won't Save Kyndryl
Kyndryl is a "done deal". It's done. It's finished.
Kyndryl Holdings Inc Falls Almost 15% in 2 Days, What Does That Tell Us About IBM?
The "Big Blue" 'shell game' isn't working
Companies That Say They Are "Hey Hi" (AI) Leaders Don't Really Do Well, They Have Mass Layoffs Because Hype and Storytelling Won't Live Up to Shareholders' Expectations
Microsoft's investment in slop is not going well
Gemini Links 07/05/2026: Unicode and "RSS 4 Noobs (Getting Started)"
Links for the day
During IBM's Annual Event/Bash IBM's Stock Fell to (Almost) Lowest Level in a Year, Insiders Explain "IBM is on the Brink of Collapse."
Anthropic - like IBM - pays the media for puff pieces, exaggerations, and obvious vapourware
Servers Became "Cloud", VR Became "Metaverse", Now Bots Become "Agents" (of Slop)
Changing the name of things won't prevent rejection, only delay the negative reaction some more
Links 07/05/2026: "The ‘Perfect Storm’ Hanging Over Britain’s Public Debt" and "Internet Shutdowns Spread in Africa"
Links for the day
OSI Partners With Microsoft to Help Pretend Proprietary (GitHub) 'Celebrates' Open Source
And a Microsoft operative announced this as well
Links 07/05/2026: "Most Vibe-coded (Slop) Tools Are Not for You" and "Prepare for the PCB Shortage"
Links for the day
Codecs and Software Patents - Part III - AOMedia Video 1 (AV1) and Antitrust Issues
As we'll show in later parts, this already results in bans of some hardware sales in Europe
The Corrupt Lecture the Non-Corrupt - Part XV - Talking About Responsibility and Accountability While Failing to Hold Themselves Accountable
what outlet is there for justice or for the Rule of Law?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, May 06, 2026
IRC logs for Wednesday, May 06, 2026
Gemini Links 07/05/2026: Dissociated Jekyll And Hyde, New Antenna 2.0.0
Links for the day
Google Slop Contains Serious Errors, Google Has Just Been Sued for 1.5 Million Dollars by One Victim of It
If he wins, the floodgates will open for millions of other people
Keeping Server Costs Under Control in Age of Zombie-Majority Net
The Web has become such a sordid mess not just due to chatbots and LLM bots
People Work for Microsoft Because They Fear No Other Company Would Hire Them
Why do people still work at Microsoft?
The Register MS Does "Microsoft Says", Fails to Accept XBox is Dying and Slop is a Failure
The real news today isn't some tweets from Microsoft
IBM Seems to be Imitating the European Patent Office's "Young Professionals" (YPs) With Client Innovation Center (CIC), Which is About Mass-Hiring Inexperienced People on Very Low Salaries (Sometimes Unlivable)
So the future of IBM now is college students without experiences?
IBM Spammers With LLM Slop Discourage Discussion About IBM Problems and Layoffs
they would likely not bother had those discussions not hurt IBM's management [...] There is a similar problem this year in IRC
The Register MS is All About MS After the Site Overhaul, Now They Are a Platform of "Microsoft Says"
They rewrite history for sponsors [...] Microsoft says. Hence, it must be true!
Pop the Slop Bubble, Don't Ask When It'll Pop or Expect Others to Pop It for You
It has all along been sold on a lie and it relied a great deal on corrupted (captured) media which played along with deliberate lies because it got paid to do this [...] The slop bubble is similar to the fake-coins bubble
SLAPP Censorship - Part 68 Out of 200: Based on Their Particulars of Claims, Microsoft's Graveley and Garrett Seem Like the Same Person (Exactly Same Words Used, Sloppily Recycled)
almost identical (even a description of who they are and how they feel)
The Operating Systems statCounter Cannot Identify or Classify
Is it possible that statCounter just cannot properly decipher and classify systems brought by and controlled by eastern Asia as opposed to Europe and North America?
Gartner Group Paid The Register MS. And Now The Register MS is a "Gartner Says" Rag.
Follow the money
IBM Allegedly Used Apptio to Target and Sack (RA) Productive or 'Expensive' Employees, Are Apptio Staff Now Subjected to Layoffs?
Apptio is one of several companies that IBM buys only to sink together with the IBM boat, RMS Watson
Gemini Links 06/05/2026: "Who Knows That You Blog?" and New Official Antenna by Michael Nordmeyer
Links for the day
Links 06/05/2026: Apple Accepts That It Misled People on Slop and Begins Blocking Software/Games Made With Slop
Links for the day
Microsoft's XBox Exodus Carries on: Corporate VP of Gaming Ecosystem Organization and Corporate VP of XBox Devices and Ecosystem Both Leave Microsoft
Don't expect what's left of the media to properly report the true scale of the XBox cuts and executive-level departures
Codecs and Software Patents - Part II - AV1 and HEVC Not Really Safe
We are, in effect, looking at a sort of cartel (like the one which came out of Germany with MP3)
The Corrupt Lecture the Non-Corrupt - Part XIV - Antisemitism Inside the EPO
A sensitive topic for the European Patent Office (EPO)
Gemini Links 06/05/2026: Childhood Memories, Intense People, and Natural Web Exploration
Links for the day
Links 06/05/2026: Narges Mohammadi in Critical Condition and Copyright Infringement Rampant in Reddit
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, May 05, 2026
IRC logs for Tuesday, May 05, 2026