Bonum Certa Men Certa

Corporate Debates About Patent Trolls Versus Debates About Patents (or Software Patents in Isolation)

The issues most often overlooked by American corporate media

OpenSecrets slide
Image from OpenSecrets



Summary: A roundup of coverage about the menace which is patent litigation and the different angles chosen for tackling it

There is a perpetual disconnect and a considerable difference between what people want and what large corporations, which virtually if not practically control the US government, actually want. The large corporations want to see small companies/firms crushed, whereas the public in general wants to reduce spurious added costs, incurred by litigation and cross-licensing (shrewdly-disguised price-fixing by large corporations). The patent lawyers at some firm called "Armstrong Teasdale LLP" join the club of whiners over PTAB [1, 2]. They need to accept the rulings which crush software patents in the US, but they are in denial. Generally speaking, patents do not necessarily benefit the US, unless one considers in isolation smaller compartments of US commerce (patent lawyers or CEOs of large corporations). As a new paper's abstract puts it:



We use a detailed data set to estimate the costs and benefits of United States patents. To estimate costs, we combine data from Derwent Litalert with a proprietary dataset of non-practicing entity (NPE) lawsuits collected by Patent Freedom, and use an event study approach to estimate losses suffered by alleged infringers during 1984-2009. To estimate benefits, we combine patent data from the USPTO and EPO with financial data from CRSP and COMPUSTAT, and use market-value regressions to estimate the value of patent rents for publicly-traded US firms during 1979-2002. We find that costs exceed benefits overall and that the gap between costs and benefits has grown across time. Surges in the number of NPE lawsuits, lawsuits filed over Computers/Communications patents, and lawsuits brought against non-manufacturing, software and telecommunications firms contribute to the increase in the gap. Growth in costs outstrips growth in lawsuits, in part, because events in these fast-growing categories have higher-than- average per-event dollar costs.


There are leeches or non-producing players, which hurt customers a lot. According to this article, the "[p]olicy under President Obama is moving against aggressive assertion of software patents, posing significant long-term risk to the profitability of entertainment technology patent holder Rovi (ROVI)."

Whatever destroys trolls is good for the economy -- that is -- the collective economy which includes customers. Profit for businesses is the wrong yardstick to use if the businesses are ones of extortion, such as Intellectual Ventures. As Troll Tracker put it: "What’s going on is, as the issue of patent trolling attracts more and more attention in the mainstream media, the message is getting diluted and the waters are getting muddied." There is also this observation about Lodsys:

Intellectual Ventures (Might Be) Tied To Lodsys: Wait, What?



[...]

It’s a proxy fight, and if Lodsys is successful in getting Mhyrvold to testify, something to that effect will surely come out. No wonder he’s fighting it so hard, he’s trying to avoid exposure. Trolls? This is what happens when you garner FTC attention.


We covered this earlier this week. We also covered the issue in prior years. Lodsys had received patents from Intellectual Ventures, which we know to be using about 2,000 pseudo-companies as litigation proxies. This is a pyramid scheme and part of an extortion racket, wrapped in a riddle and a whole legion of lobbyists.

"Lodsys had received patents from Intellectual Ventures, which we know to be using about 2,000 pseudo-companies as litigation proxies."Mark Bohannon, the Vice President of Corporate Affairs and Global Public Policy at Red Hat (in other words, a chief lobbyist), ought the know the pain caused by trolls like Acacia (it got money from Red Hat several times). Bohannon says that the "House Judiciary Committee Chairman Bob Goodlatte and a wide variety of witnesses highlighted the PAE problem in hearings last winter. Senate Judiciary Committee Chairman Patrick Leahy is working with Chairman Goodlatte and committed to working in a bicameral and bipartisan way to counter what they term 'patent trolling,' which "casts a pall on the system because it hinders innovation.""

He also says: "A number of key issues "left on the cutting room floor" during consideration of the AIA—including the current unreliable, uncertain, and speculative method of calculating damages, correcting the standard for finding willful infringement, and venue—remain important elements of our broken patent system that play to the hands of PAEs and encourage abusive patent litigation.

"While action in these areas remains important, they are absent from the current legislative agenda. Given the widening attacks by PAEs, it is essential that Congress work to produce meaningful legislation on at least the issues identified above in order to begin to stem the tide.

"With many of the key players in Congress—joined by the Executive Branch—rowing in the same direction, let’s look for an updated draft of the House Judiciary bill that enhances its 'first step' proposal. And the Senate Judiciary Committee is well positioned to put forward a robust measure that builds on (and incorporates) the bills introduced by Senators Cornyn and Schumer."

"Get rid of the patents to resolve the issue."The problem is, the White House is still tackling the symptom, not the disease [1, 2, 3, 4]. Those bills are hardly the solution, they tackle a symptom really, one among several symptoms which they mostly fail to address. Todd Bishop, a Microsoft booster, shows Google acquiring more privacy-infringing ideas, which is a problem in itself.

MariaDB, which recently joined OIN and OSI, will remain vulnerable to trolls and as the Oracle case against Google taught us, OIN membership is not enough to dodge litigation from giants, either. Get rid of the patents to resolve the issue. The large corporations are definitely part of the problem, but the White House is literally funded by many of those companies, so don't expect reform in that domain. Expect the White House to go after smaller players, those that opportunistically sue many large companies. This one new example says that "ArrivalStar sued more than 200 companies and cities over bus-tracking patents." Patent trolls like ArrivalStar are a problem, but they are not the only problem and when one looks at the actual patent, then it becomes clear that patent scope is the issue, not the plaintiff per se. As we saw many times before (e.g. Oracle, Apple, Microsoft), large corporations use equally ridiculous patents to extort other companies. According to this post, a troll we wrote about before is still busy in Texas, suing large corporations' clients, so those large corporations get involved:

Earlier this week, we provided an update on the multitude of WiFi-related infringement lawsuits brought by non-practicing entity Innovative Wireless Solutions LLC against various hotels and restaurants in Texas, noting that IWS had dismissed these suits (albeit without prejudice). We had discussed that this was a decidedly “un-Innovatio-like” turn in the cases — but yesterday brought a development that makes this series of disputes much more like the ones in the Northern District of Illinois involving Innovatio: Cisco Systems Inc., a supplier of WiFi equipment for many of the hotels accused of infringement, got involved. And Just like it did with Innovatio, Cisco here filed a declaratory judgment action against IWS, seeking declarations of invalidity and non-infringement as to IWS’s three asserted patents.


It is not easy to kill patent trolls, as Gene Quinn's recent piece indicates. Trolls cannot be sued, so it takes collective effort. The chairwoman of the FTC speaks about predatory tactics of patent trolls. To quote: "At an event co-sponsored by CCIA, FTC Chairwoman Edith Ramirez announced that she would be asking the Commission to institute a Section 6(b) investigation of the patent troll business model. Senator Leahy also sent Chairwoman Ramirez a letter today, encouraging the FTC use its powers “to prevent unfair and deceptive trade practices in patent infringement allegations.”

"It is those large corporations which probably do far more damage than the trolls and the remedy lies within patent scope."Edith Ramirez should ask her colleagues to look at patent scope rather than the nature of firms that sue large corporations. It is those large corporations which probably do far more damage than the trolls and the remedy lies within patent scope. Don't expect any real reform in a nation where large corporations have politicians and government agencies in their pockets. Both political parties (including members of Congress) are controlled and bankrolled by the same large corporations, some more than the other. Always ask yourself when the White House debates trolls or some Congressperson brings up the subject, who are those people funded by? Also, notice who is backing all these pushes against trolls in the corporate sector. As always, money makes the world go round and large corporations are still writing everyone's policies. The public deserves better than that. The corporations-controlled and corporations-run USPTO will continue to grant more patents than ever before (i.e. more profit), it's just that those capitalising on those patents (monopolies) will be fewer and larger. Those patents are not there to encourage innovation, they are there to justify increases in prices, eternally-forbidding commoditisation, e.g. generics in medicine. ⬆

Recent Techrights' Posts

European Patent Office (EPO) Series: A Costa-Benefit Analysis: Has the Asset Become a Liability?
All other things being equal, one could expect the Portuguese political establishment to support Campinos in his reappointment bid. But what if all other things are no longer equal because the former "asset" has in the meantime become a "liability"?
Brigading Against Women - Part XIV - Mastery of Distraction
The finger-pointing actions themselves prove the saying that even an accusation is likely a confession
 
Gemini Links 02/10/2026: Hitchhiking, Dream, Journey of Thoughts, and ROOPHLOCH
Links for the day
IBM in Such a Bad Shape That Silent Layoffs Have Come to India
Make it hard for IBM to hide what's happening
The Mass Layoffs at Red Hat (Secret Layoffs) Not Limited to This Week or to October 1st
Red Hat can shed off 10% of its staff without anyone in the media uttering a word
The Latest "PARTNER CONTENT" at The Register MS is by Chief Marketing Officer at VergeIO
Maybe The Register MS can just run ads, not articles, and hope nobody will notice
Links 02/10/2026: Turkey's Censorship of Journalists Grows, "Hong Kong Journalist Arrested After Covering Gathering Linked to 2019 Protests"
Links for the day
IBM's Red Hat is a Slave of Microsoft, It Does Not Compete With Microsoft
As released and shown earlier today in "Red Hat Partner Connect"/redhat.com
Red Hat: Stop Saying Master, It's Racist. Today's Red Hat: "Master Your Skills" and Adopt Slop Plagiarism
IBM is shredding Red Hat to pieces while it keeps humiliating the collective intelligence of communities
Reform UK, Nigel Farage's party/company, admits missing winding-up petition
Reprinted with permission from Daniel Pocock
Links 02/10/2026: "McDonald's Caught Cheating Consumers for Profit" and "It's Not Illegal If You Buy New Laws"
Links for the day
EPO "Cocaine Communication Manager" - Part XVII - A Vote for Campinos This Month (Reappointment) Would be an Endorsement of Cocaine
The harder they try to silence critics, the worse it'll get
The Cyber Show on "Career Scientists" (Resellers of Establishment Brands Like GAFAM)
"The "career scientist" - with PhD and research office by their mid-twenties - follows well oiled tracks and institutional signposts, steering away from controversial or "difficult" subjects."
Reporting Court Matters While Preserving Dignity of Staff
There's a high and growing probability we'll take our appeal to the Court of Appeal next year
Broligarchs Speech-Policing, Faux 'Community' or 'Hub' in 'User-Driven' Clothing
Until a broligarch decides to "flag" inconvenient stories
Gemini Links 02/10/2026: Haiku, Microsoft EEE ('Linux' as a Container in Windows), and ROOPHLOCH 2026 Roundup
Links for the day
Microsoft Promised Them Bonuses, Instead They May Get Laid Off
Laid off or paid off?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, October 01, 2026
IRC logs for Thursday, October 01, 2026
Lots of People Left Red Hat This Week, No Announcement Made of Layoffs
Companies just find ways and excuses not to announce their layoffs
Gemini Links 01/10/2026: Gemini-to-Web Proxies Considered Harmful, ROOPHLOCH 2026 at Griffith Park Observatory
Links for the day
"SPONSORED FEATURE" of HPE and NVIDIA at The Register MS Has Just Mentioned "AI" 68 Times in One Page!
Meanwhile, grown-ups ignore the hype and get work done without slop
Microsoft's XBox Layoffs Not Finished, Won't be Finished, It's Called "Forever Layoffs"
Microsoft will shut down (XBox) after shrinking it, there's no need to sell anything (a straw man)
IBM's Red Hat Lost Lots of People Today, Chief People Officer (CPO) Dethroned
Headcount falls shortly in secret.
Microsoft is "Pushing Up Daisies" Amid Mass Layoffs (Secret Ones)
"Longtime Microsoft research leader Peter Lee and former LinkedIn CEO Ryan Roslansky to depart"
Links 01/10/2026: "Lawyer Cites ChatGPT-Invented Fake Witnesses in Murder Appeal" and The 'Linux' Foundation Technical Advisory Board (TAB) Has Vacuum
Links for the day
Brigading Against Women - Part XIII - The Offer We Didn't Ask For (and Under Threats to a Lady at the Webhost, a Form of Extortion From America)
Two and a half months ago Garrett made an offer to my wife
Creditors beware: VMS Enterprises Ltd vs Brexit Party (Reform UK Party Ltd)
Reprinted with permission from Daniel Pocock
Techrights Turning 20 Next Month
Our image is under attack, our finances are constantly under attack and so on
Links 01/10/2026: "Meat Proxies" and "Japan’s Far Right Is Courting Young Voters"
Links for the day
Red Hat Being Phased Out of Existence (Like Many Other Companies That IBM Bought)
The "Red Hat" brand (and badge) is being dissolved some more today [...] IBM is imploding 'creatively'.
IBM Layoffs Cover-up
thelayoff.com is censoring threads
"Restricted Boot" Garrett's State is Now Implementing Kill Switches (Just What We've Warned About All Along)
The underlying concept is hardly new
Brett Wilson LLP Has Had No Annual Report in 16 Months
A cynic might hint that they try to hide something
Reform UK last minute accounts filing
Reprinted with permission from Daniel Pocock
Gemini Links 01/10/2026: "Babel With Better Hardware", Software Input That's Slop, and DWeb Cascadia 2026
Links for the day
Today is D-Day at Red Hat and People Leave in Droves
They said there would be "bluewashing", we're mostly seeing people announcing they're leaving
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, September 30, 2026
IRC logs for Wednesday, September 30, 2026
Gemini Links 30/09/2026: Fish Leather, Slop Formation, and ROOPHLOCH
Links for the day
In a Lot of Europe (or EU) Android (With Linux) is Bigger Than Windows
For example in Greece
Slop-Posting is a New Form of S---posting
We recently caught several more "linux" sites (with "linux" in their domain name) turning to slop
EPO Cocainegate: Lots of Money (Over a Million Euros) for Cocaine Addicts, Not for Children With Special Needs
Next month we'll bring out some more Campinos scandals
High Court victory: Nigel Farage is 'the Company's own candidate'
Reprinted with permission from Daniel Pocock
It Took GNOME's Code of Conduct Committee (CoCC) Over 8 Months to Realise CoC Reports Went Into /dev/null/
It would be ironic if the blunder's culprits were punished for it, would it not?
Links 30/09/2026: Microsoft "OpenAI Ignored Employees’ Warnings About Safely" and "Pentagon Personnel Agency Data Breach Impacts 3 Million People"
Links for the day
The Register MS "Events" As Paid Spam That Promotes and Keeps Afloat Hype About Slop
This dreary sort of media reads like a soup of words, i.e. like the thing it is advertising
Digital Independence in the UK and in Western Europe
We have the technical capacity and skilled personnel to achieve this
IBM's Anderon as a Mass Layoffs Ritual With a Bailout (From US Taxpayers to IBM) and Other Perks
Like those empty promises in the first term of the Cheeto dictator
Gemini Links 30/09/2026: David Bowie, Web Rendering Proxy, Ink and Letters, Gemlog Nostalgia
Links for the day
EPO Annual General Meeting (AGM) Will Speak of Financial State of the EPO's Union
Their work is needed because the EPO breaks the law
Rust Causes Upgrade Issues in Ubuntu
They could just keep GNU coreutils in place (nothing was broken about it) and avoid Microsoft's back doors and TPMs
Losses From Slop Are "Investment", Hundreds of Billions in Debt Are "Growth Opportunity", Layoffs Are "Great to See", and Loss of Business Means "We Need a Slowdown" (for "Safety")
Microsoft is removing staff, as investment is apparently the act of shrtinking
Brigading Against Women - Part XII - Toxic Masculinity, Hunting Women, Will Code for Sex
Who says things like these?
The Microsoft Lunduke Slop Problem
Microsoft Lunduke does not support Software Freedom; he serves to discredit many ideas championed by Free software or ideals articulated which are apolitical for the most part
Links 30/09/2026: "Understanding the LLM Bubble" and "Florida Senate Threatened Legal Action Against Newspapers"
Links for the day
It Looks Like Mass Layoffs at "Nordcloud, an IBM Company" Today (a Day Ahead of Red Hat)
Expect the same from Red Hat next
British Prime Minister Recognises Social Control Media as National Cohesion Problem
one has to wonder if addiction to social control media is not compatible with peace
The Future Isn't Social Control Media (Nothing Will be Left of It, Not Even Archives)
"Error code: 502 Bad Gateway"
GNU/Linux Usage in China is Increasing
China is leaving Microsoft and Windows behind
43 Years of GNU and GAFAM's (Especially Microsoft's) Attacks On It
GNU is very widely used (when people say "Linux commands" they typically mean "GNU programs"), hence it's being attacked a lot
CDMAG Covers Free Software, New Magazine From Decent People
If enough people accessed their site, they would not rely on social control media (third parties, censorship platforms)
Brigading Against Women - Part XI - An Abject Lack of Social Skills (and Not Knowing How to Handle Women)
GGG enjoy - if that's the right term - very bizarre or esoteric sex life
Gemini Links 30/09/2026: Accelerationism, "The Billionaire is Wrong", Rant About LLM-generated Support E-mails
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, September 29, 2026
IRC logs for Tuesday, September 29, 2026