Bonum Certa Men Certa

Update on Patent Trolls and Their Enablers: IAM, Fortress, Inventergy, Nokia, MOSAID/Conversant, Microsoft, Intellectual Ventures, Faraday Future, A*STAR, GPNE, AlphaCap Ventures, and TC Heartland

Hiding behind fronts, attack dogs, and interest groups

Cat hide and seek

Summary: A potpourri of reports about some of the world’s worst patent trolls and their highly damaging enablers/facilitators, including Microsoft which claims that it “loves Linux” whilst attacking it with patents by proxy

THE ISSUE associated with patents as a ‘pure’ business model, or patent trolling, is widely understood. Imagine a world where people profit from making nothing at all, just demanding money from (if not blackmailing) companies that make actual sales and have a source of income/revenue, namely customers that buy products.

More patent trolls news came from the trolls-funded IAM the other day. “According to a December 29th release,” it quoted, ““Fortress will have the sole discretion to make any and all decisions relating to the company’s patents and patent monetisation activities.” Inventergy has around 740 patent assets acquired from Nokia, Huawei and Panasonic in a series of three separate deals in the first half of 2014.”

Here again we see Nokia as trolls’ ammunition, just like at MOSAID (now known as Conversant, which pays IAM’s publisher). Speaking of MOSAID, which Boris Teksler is involved in (hopping between Microsoft-connected trolls), see this new list from IAM. The Editor in Chief of IAM gives him (yet again!) some special honour, without noting that his employer paid IAM (under the new name, Conversant). So much publicity for an aggressive firm (actually a patent troll) from IAM… one might begin to think that it’s coverage that money simply buys. Conversant is such an evil patent troll (working for Microsoft’s interests now) that it had to change its name and now it’s trying to improve its reputation with some puff pieces? And from who, from IAM? Watch this latest IAM revisionism about Xiaomi (yet again!), maybe for the third time in the past month alone. We already explained that Microsoft was extorting Xiaomi with patents, but IAM tells a sanitised, face-saving PR story for Microsoft:

Xiaomi – Who says the IP deals market is flat? During 2016, Chinese mobile manufacturer Xiaomi – not yet 10 years old – seemed to be on a one company mission to prove that this is far from the case. In January it emerged that it had got its hands on a suite of Broadcom patents while a month later came the news that it had acquired a significant portfolio of US assets from Intel. Both deals, though, were eclipsed by the ground-breaking transaction with Microsoft announced at the end of May – a win-win for both that exemplified the way that IP is now forming the bedrock of much wider co-operative agreements between operating companies. While all this was happening. Xiaomi was also incorporating Zhigu Holdings into its internal operation – a move that saw the aggregator’s president and chief operating officer Paul Lin become Xiaomi’s VP of IP strategy. That could well prove to be a masterstroke, with Lin having gained a great deal of deal-making experience at both Intellectual Ventures and Microsoft while based in the US. Like many young Chinese technology businesses, Xiaomi is running a significant patent deficit; but unlike many of them it has recognised it needs to be aggressive in doing something about this. To expand, it will not only have to develop its own IP, but must continue to be active and creative in bringing it in form third parties. With Lin enjoying enlightened support from the very top of the company, Xiaomi is set to become an even bigger patent player in 2017.

Notice the connection between “Intellectual Ventures and Microsoft” (in the above text). It’s a strong and well established connection, which we have been covering for nearly a decade now. Microsoft uses the world’s largest patent troll, which it itself created/funded, to attack Linux. It’s a common tactic where the troll is mostly/only a proxy.

Similarly, as mentioned here the other day, Faraday Future throws its patents at some shell company and this new article from TechDirt looks deeper at the anatomy of it:

That’s all interesting… but what’s amazing is that in all of these discussions about how Faraday Future “doesn’t own its intellectual property” absolutely no one seems to point out the fact that the company that everyone compares it to, Tesla, famously dumped all its patents into the public domain and told anyone to go ahead and use them. That seems like a relevant point to make in articles about this upstart competitor and its “intellectual property.” Of course, it’s possible that the articles could mean something else when it says “intellectual property” — such as trademarks — but it seems unlikely that the trademarks for a flailing company that is unlikely to ever get anything on the market are that valuable.

The whole story, and the ignoring of Tesla’s stance on patents… is just strange. It is true that sometimes failing companies hang onto their patents as a sort of last ditch effort to extract some return for their investors in a patent fire sale. But if you’ve reached that point, things have already gone way too far south to really matter. Tesla has shown that it can build a pretty damn successful company without relying on “intellectual property.” It seems that people should stop freaking out that Faraday Future may have dumped its patents into some offshore company, and focus on the company’s real problems — like the fact that its execs are racing out the door as fast as possible.

Remember that Microsoft has its own patent “assertion” (trolling) department/entity (they call it “Licensing”) and several more large companies now do something similar. Sites like IAM just call that NPEs.

“For NPEs,” (i.e. trolls) Florian Müller explained the other day, “it’s often actually desirable to make litigation more, not less, expensive. Speed and injunctive relief attract them.”

Yes, this is a truthful statement and it helps demonstrate how to mitigate/tackle the trolling epidemic if there was sufficient desire, just like limiting trolls' movement/travel. Currently, in the Eastern District of Texas, where defendants haven’t much confidence in winning (not cheaply anyway), trolls are making a killing.

East Asia is rapidly becoming the breeding ground for the trolling epidemic, as we noted here before. The above from IAM is just one example of it, as is the IAM article titled “The signs suggest that IP monetisation activity is on the rise in Southeast Asia, says A*STAR tech transfer chief” (“IP monetisation” is a euphemism for trolling). Another new article is titled “$130 million patent claim against Apple in Shenzhen shows NPEs in China increasingly strident”. It sure looks as if SIPO has turned China into a cesspool of patent trolls. Who benefits from this? A few parasites, not ordinary Chinese people. To quote IAM, “GPNE’s Chinese assertion appears to have begun back in 2013 in the Shenzhen Intermediate People’s Court. The court’s database shows four lawsuits against Apple and associated companies at the trial stage. According to a report in China’s National Business Daily, the most recent hearing was in late November 2016; the same article also states that Apple has made three separate attempts to invalidate the asserted patent at SIPO’s Patent Reexamination Board, with all of these complaints being dismissed on appeal.”

Poor patent quality at SIPO, just like at USPTO before it, emboldens patent trolls. IAM is siding with the trolls, as usual, also in the case of Nokia against Apple — a case which it belatedly covers (Nokia has become like a patent troll which merely licenses the brand).

Writing about patent trolls in general, Wolf Greenfield & Sacks PC bemoans what happens in the US. “Over the course of the last decade,” it says, “the U.S. Supreme Court has issued a series of decisions making it more difficult for so-called non-practicing entities (NPEs)—companies that own and enforce patents but do not offer products or services covered by them—to extract value from their patents. The Court may now be ready to take a step in the other direction by removing the equitable defense of laches against patentees’ past damages claims—up to six years of damages in many cases. Oral arguments were heard in the landmark case of SCA Hygiene Products Aktiebolag v. First Quality Baby Products, LLC on November 1, 2016, and a decision is expected later this term.”

“Patent Value” for patent trolls (ignore euphemisms like “NPEs”) is also mentioned in this article. We can’t help but feel like patent law firms — not just sites like IAM (which trolls are paying) — take the side of trolls. They don’t care about innovation, just litigation. They profit from that.

United for Patent Reform, a group that battles against patent trolls, wrote the other day that “Crowdfunding company @gustly won its case over a #PatentTroll after 2 years in court.” Here is part of the statement:

The patent lawsuit filed by AlphaCap claimed ownership over “online equity financing”. As with most other patent lawsuits, the case was brought in the Eastern District of Texas. This court is known as a patent troll haven and has benefitted economically from an assumed bias in favor of trolls.

So here again we have an example where legitimate companies are hit hard by trolls that make nothing at all, just lawsuits. “Wearable device company Fitbit has moved for termination of its ITC patent complaint against Jawbone, which is unhappy at suggestions about its financial stability,” MIP wrote the other day (a move which we covered in this older post of ours). As before, Fitbit makes shameless excuses, trying to portray itself as merciful after it attacked a rival, only to realise that its case is going nowhere fast and is only wasting its own (Fitbit’s) financial resources.

Fitbit, like many other companies, must have realised that certainty of winning patent cases has gone down. Moreover, Jawbone sued Fitbit in retaliation, causing quite a big (and expensive) headache to Fitbit. As Fitbit is not a patent troll (it has actual products that it sells) it’s not hard to sue it as well, thereby compelling it to reach a ‘ceasefire’.

Meanwhile, as even IAM cares to admit, litigation numbers are down sharply and patent trolls suffer a lot:

Unified Patents and RPX have both released their early numbers on new US patent litigation cases in 2016, confirming what we have known for some time: district court cases fell dramatically, with Unified putting the total number of filings at 4,382 – a drop of 24.8% year-on-year. That is the lowest volume of new cases since 2011 when the America Invents Act (AIA) came into effect and a change in joinder rules led to an immediate increase in the number of suits. According to Unified, disputes at the Patent Trial and Appeal Board (PTAB) saw a slight drop down to 1,723 from 1,793, although last year was still the second busiest on record.

The question now is whether the 2016 litigation drop was a blip or part of a longer-term trend. The last few years have seen sharp fluctuations in the number of cases with 2013, the busiest year on record, leading into a marked fall in 2014 as plaintiffs were seemingly turned off by the Supreme Court’s Alice decision and by the prospect of patent reform. So if that is repeated, we might expect to see the number of new cases rise again this year.

MIP takes into consideration an upcoming SCOTUS case (alluded to above), but it barely bothers to mention that this case would affect trolls the most. To quote what is not behind a paywall:

Natalie Rahhal speaks to former Federal Circuit Chief Judge Paul Michel and others to assess the potential impact of In re TC Heartland at the US Supreme Court. One outcome could be a sharp fall in filing in the Eastern District of Texas and an increase in a potentially under-resourced District of Delaware

In re TC Heartland is already shaping up to be one of the most important patent cases in the US this year. The Supreme Court on December 14 granted cert in the case, which will give the court an opportunity to revisit the case law and statute governing forum selection in patent infringement suits.

We look forward to the outcome of this case because the Justices, probably well before Trump introduces new ones, are expected to serve a blow to patent trolls. Today’s Justices tend to be sceptical on issues pertaining to patents maximalism.

Recent Techrights' Posts

Too Hard for IBM to Keep Everybody Silent About How the Company Has Gone South
IBM is busy trying to keep disgruntled or ex workers silent using NDAs
 
SLAPP Censorship - Part 34 Out of 200: The Necessity of Transparency, Illuminating Garrett's and Graveley's 'Tag-Team' Act, Misusing the British Docket (From Far Away in America) in Efforts to Hide Bad Behaviour
Transparency is paramount
Red Tape at Red Hat (IBM)
Now the guiding principles are the whims and moods of people who peddle buzzwords to manipulate IBM's share prices
The So-called 'AI' (Slop) Companies Will Have the Plug Pulled
It can vastly accelerate this bubble's implosion
Dr. Andy Farnell on a "Technology Plan B"
based around Free software
Windows Lows Across the Mediterranean
Judging by this month's data from statCounter
The Future of the Net is 'in Space'
Gemini Protocol is growing and GemText remains the same, so it's made to endure
Linux Foundation Profits From Scams, Fraud, and Grifting
Don't be misled by the name "Linux Foundation"
Microsoft Transmits Malware and Back Doors to GNU/Linux Servers, Media Points the Finger at Everyone But Microsoft's Servers
Is Microsoft too poor to vet and check what it hosts and transmits?
Gemini Links 04/04/2026: "Fuzz Guy", "Reusing Old Computers with Arch Linux and DWM", and Bubble v10.0 Released
Links for the day
Links 04/04/2026: eBay Scam, "Music Publishers’ X Copyright Lawsuit Officially on Pause"
Links for the day
Links 04/04/2026: Social Control Media Verdict and Bans, Whistleblower (Axel Rietschin) Explains How "Microsoft Vaporized a Trillion Dollars"
Links for the day
Reaching the End/Event Horizon of LLM Slop
Are we moving towards a post-LLMs world?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, April 03, 2026
IRC logs for Friday, April 03, 2026
Gemini Links 04/04/2026: STXGE and Computer Relationships
Links for the day
SLAPP Censorship - Part 33 Out of 200: Garrett Sued by My Wife and I, Then His Microsoft Acquaintance Files Another Lawsuit and Our Webhost Receives Legal Threats Too
Today we also show how our solicitor Mark Lewis responded to it
Good Friday, Leaving IBM for Good
Even on holidays
Links 03/04/2026: Rejection of More Software Patents and Social Control Media in Several Continents
Links for the day
Malware in Proprietary Software - Latest Additions by Rob Musial
Original published yesterday in gnu.org
Visual Evidence/Documentation of IBM Dying Like the Dinosaurs
IBM has many of these giant white elephants lying around, with some getting demolished
Links 03/04/2026: USPTO’s Latest Greenwashing and Internet Blackouts Impact Journalists in War Zones
Links for the day
SLAPP Censorship - Part 32 Out of 200: Garrett Made Spurious Requests (Later Withdrawn) the Same Week Someone He Later Spoke to by E-mail Sent Threats to Our Webhost
The "plot thickens" because there's a multi-party tag-team act, as confirmed by Garrett after he had sworn on the Bible
IBM is a Dying Company, Nowadays It Kills Red Hat With Slop
when your last day is a national holiday in IBM's country
"Independence Drives" and Community-Run Sites
Independence in reporting is a much-valued trait
When Charlatans Are Only Good at Losing Money and Storytelling (e.g. About Investment in Them)
Wait till a a barrel of oil costs $300
What Apple Fans Are Missing
Apple is a bad company
The "Pale Blue Dot" Moment Had Returned
To many people, the "bitter-sweet" observation of how small we are
Saudi Arabia Does Not Rely Much on Microsoft/Windows
Putting aside politics, this is good for Free software
Almost 12 Years of Exposing Corruption in Europe's Second-Largest Institution
The "unready" President is now an abandoned President
Easter Moon Mission and Its Reminder of IBM's Demise
A lot of NASA operations now rely on GNU/Linux
When Power is Scarce and GNU/Linux Has Power
In Cuba, GNU/Linux has long enjoyed high adoption rates
Don't Totally Dismiss the 'Survivalists'
'Survivalists' or similar terms are used to describe a particular mindset of people who prepare for some really awful scenarios
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, April 02, 2026
IRC logs for Thursday, April 02, 2026
A Much Better Use of Fuel Than Slop
Something positive for a change
Hoping for Peace
There are still many things to be enjoyed, including nature and kind people
Gemini Links 03/04/2026: "Slide Rule Triple Multiplication" and End of "Picture Pages"
Links for the day
Rumours of Microsoft Layoffs This Season
Just how much trouble is Microsoft in at this point?
GNU/Linux Measured at All-Time High in Sweden
Can 'influencers' have played a role
SLAPP Censorship - Part 31 Out of 200: Speaking About 20+ Years of Alleged Harassment/Defamation and High-Profile 'Targets' of Garrett
attempts were made to settle (in effect end the case) by the person who started the case almost half a dozen times along the way
In Asia, Windows is in Its Teens (Below 20%)
On a global scale, Windows is down to about 26%
GNU/Linux Becoming More Universal
It seems likely the end of Vista 10 coinciding with a sharp rise in memory prices (and now energy prices) will benefit GNU/Linux and therefore give us more to write about
Low Morale at IBM and Perception of Destructive Management
IBM is going nowhere, fast
Gemini Links 02/04/2026: Super Mario Galaxy Movie and New Antenna Instance
Links for the day
It Seems Like Google News Cracked Down on (Omitted, Delisted) a Lot of Slopfarms
There's no justification/point in spending so much energy just to plagiarise things poorly
Can Economies Like the American One Hang On?
The coming weeks will be "interesting" unless wars end
Steam Survey for Last Month Says 5.33% Use GNU/Linux
big leap for GNU/Linux
Links 02/04/2026: Science News, Energy Scarcity, Oil Sold in Yuan
Links for the day
Links 02/04/2026: Apple Turns 50, Efforts To Ban VPNs
Links for the day
Gemini Links 02/04/2026: Kubernetes With FreeBSD, OFFLFIRSOCH, and Great Circle Distance
Links for the day
Dr. Andy Farnell on Microsoft Silencing or Deplatforming Opposition in the UK and Elsewhere
Microsoft as a king or a kind of "religion" one cannot question
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, April 01, 2026
IRC logs for Wednesday, April 01, 2026