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Magnet Patent Suits

toybuilder writes: "Magnequench holds a key patent on high-power neodymium-iron-boron (Nd-Fe-B) magnets that they claim is worth almost 1/2 of the world's permanent magnet market. These magnets are in use everywhere including motors in CD/DVD drives and in actuators in camcorders. They are suing a whole lotta companies including Compaq and HP. You can see the AP newswire at Yahoo or read the company's press release."

12 of 249 comments (clear)

  1. How long has Compaq been making magnets? by Redwire · · Score: 5

    I really don't see why Compaq, Sony and every other tech manufacturer you can name should be sued because they're using the 'illegal' magnets in their products, unless they are actually manufacturing them. How much responsibility should a company have to audit their supplier? How can anyone be expected to make something if they have to keep going over their suppliers books?

    Why stop here? What happens if I work for Compaq's Magnet Supplier, and I get sexually harassed while on the job. Shouldn't I be able to sue Compaq? Aren't they somehow responsible for... well, something?

    If it's a valid case, sue the magnet manufacturers, not the 'end users' such as Compaq and Sony.

  2. Re:I hope they don't make fridge magnets by kzinti · · Score: 5

    Those little magnets are just awesome. I've been salvaging magnets from failed and obsolete disk drives for years, and have a nice collection of these insanely strong critters. My best acquisition was a set of four that came out of a nine-platter SCSI drive.

    I love handing a pair of these little magnets to an unsuspecting guest, and ask them to separate them for me. One guy actually told me they were glued together, until I showed him how to slide the magnets apart to separate them.

    Another good trick to do with an old (but functional) drive, before you take its guts out: take the cover off, hook the drive up, and run fsck on its contents while you mess with its guts. Touch the center of the platter stack to slow them down. Use a marker to write on the spinning platters. Put your finger on the center of rotation of the arms the R/W heads are mounted on. See how much abuse the drive will take and still function (I was kind of surprised).

    I also like to salvage the disk-platter assemblies and set them out as objets d'art. They're really quite pretty!

    --Jim

  3. The Redifinition of the American Dream by FreeUser · · Score: 5

    What we are witnessing, and living through, is the decline of our civilization. This country was founded on high ideals and moral principles. Sadly, the ultimate goal today is to ruthlessly make as much money as possible. The current rampant abuse of the patent system is just the tip of the iceberg.

    At one time the "American Dream" had little to do with money directly. It used to be the notion that one could go to a free country and achieve everything they were capable of, without governmental hinderence. For some people this was the practice of their non-mainstream religion, for others it was the persuit of philosophies or studies suppressed elsewhere, for other the chance to explore the unknown, and, yes, for some it was the opportunity to persue wealth.

    Now, the media have all come together and redefined the "American Dream" solely in terms of the persuit of wealth, even going so far as to equate it with winning the lottery (as if, prior to the 20th century, there had ever even been such an absurd notion).

    At one time laws were intended to benefit society, and the production of wealth was but one component in an entire series of concepts which together were required to benefit society (others included free education, libraries, fire department and water services, land grants, etc.) This is not to say society was ideal, as at the same time there were horrific things going on (the enslavement of black Americans, the wholesale theft of land from native Americans, etc.), but only to point out that, at one time, laws and politicians were expected to serve the voting population of the country, and to a fair degree did so.

    Now there isn't even the pretense of laws in the United States serving the American public, much less society as a whole. Is it any wonder, with our willingness as individuals (by and large) to sell every ideal down the river in the name of profit and income, that our government, as our representatives, behaves any differently?

    Disgusting, yes, Reprehensible, yes. Self defeating and ultimately destructive (particularly with respect to government granted monopolies such as patents, copyrights, and other forms of IP), yes. But, given the direction the majority of the American people chose to go in 1980 and have continued toward since, hardly surprising. Fortunately for us, and the world, these sorts of things are self correcting, even if it means the US economy stagnating and even going third world before people become aware enough to start demanding the kinds of reforms which are necessary.

    --
    The Future of Human Evolution: Autonomy
  4. Analyzing the combined picture by Badgerman · · Score: 4
    Let's take a look at this - having read the statements and the articles here, I think this illustrates more than "oh, darn those patents are so stupid."

    1. The magnets are everywhere. This is a pretty lousy time to start suing people. I'd definitely say they haven't effectively defended their patent.
    2. This illustrates that defense of patents is highly relative. If an idea becomes widespread quick enough, you can't possibly sue everyone.
    3. From what I've read here, there's overseas investment involved in the company, specifically China. In the highly interconnected global economy, patents certainly seem like a potential weapon to me - a way to foul up other countries economies. We're too connected to be this stupid.
    4. They've taken on some pretty heavy hitters, though in an awfully random way (Best Buy?). There's no guarantee they'll win - and this really shows that patents these days are not about principle, but about getting the court victory.
    5. This legal action can probably be used by smart lawyers to undermine the current overdone patent/copyright legislation.


    This is more than the usual stupid patent/copyright cases here. It illustrates a lot of the issues that need to be considered about patents, copyright, and intellectual property.

    And I strongly reccomend people write Assistant Majority Whip Mike Pence (Republican, Indiana) on his statement. Let him know the above points, let him know the issues.
    --
    "The Sage treasures Unity and measures all things by it" - Lao Tzu
  5. Re:The New New Economy by mindstrm · · Score: 4

    No. There is no blanked law covering Intellectual Property Rights.

    Patents do not have to be defended. You can selectively enforce them however you want.

    Trademark is what you are thinking of; trademark must be enforced, or it no longer has meaning.

    However.. I'm puzzled by Past Damages. I was under the impression that with Patent, you cannot claim past damages, only future dealings. You can't say 'We just discovered this company has been using our patented technology for the last 20 years'. Unless you can prove the company knowingly violated your patent (ie: you asked them before and they ignored you) you're probably out of luck.

  6. Re:I hope they don't make fridge magnets by victim · · Score: 5

    You would probably not want one as a fridge magnet. It would probably bend the front of your fridge as you pry it off.

    If you ever have a hard drive go bad, you should get yourself a set of tiny torx drivers and disassemble it. You will find a pair of insanely strong magnets around the head positioning coil.

    Watch your fingers, when those magnets take a notion to slam together they will pinch through your flesh.

    note: the preceding should not be construed as instructions to bang your office mates computer up and down while operating in order to acquire a bad hard drive.

  7. The decline by Crusadio · · Score: 5
    If nature has made any one thing less susceptible than all others of exclusive property, it is the action of the thinking power called an idea, which an individual may exclusively possess as long as he keeps it to himself; but the moment it is divulged, it forces itself into the possession of everyone, and the receiver cannot dispossess himself of it...He who receives an idea from me, receives instructions himself without lessening mine; as he who lights his taper at mine, receives light without darkening me. That ideas should be spread from one to another over the globe, for the moral and mutual instruction of man, and improvement of his condition, seems to have been peculiarly and benevolently designed by nature...Inventions then cannot, in nature, be a subject of property. --Thomas Jefferson
    It was never the object of those laws to grant a monopoly for every trifling device, every shadow of a shade of an idea, which would naturally and spontaneously occur to any skilled mechanic or operator in the ordinary progress of manufactures. Such an indiscriminate creation of exclusive privileges tends rather to obstruct than to stimulate invention. It creates a class of speculative schemers who make it their business to watch the advancing wave of improvement, and gather its foam in the form of patented monopolies, which enable them to lay a heavy tax upon the industry of the country, without contributing anything to the real advancement of the arts. It embarrasses the honest pursuit of business with fears and apprehensions of concealed liens and unknown liabilities lawsuits and vexatious accountings for profits made in good faith. (Atlantic Works v. Brady, 1017 U.S. 192, 200 (1882)).
    What we are witnessing, and living through, is the decline of our civilization. This country was founded on high ideals and moral principles. Sadly, the ultimate goal today is to ruthlessly make as much money as possible. The current rampant abuse of the patent system is just the tip of the iceberg.
    --

    - Crusadio

  8. Re:What I would like... by 1010011010 · · Score: 4
    Lots of countries don't give a fried fart about U.S. patents -- outside the U.S. However, they cannot participate in our economy unless they do 'respect' them here.

    Interestingly, the U.S. was the "China" of its day when the country was first founded (with a little more freedom for its citizens, of course). Cheap manufacturing, a lack of regard for copyrights and patents from other countries. Plus, the U.S. defaulted on its debts quie a bit.

    Slightly hypocritical of us to complain about people doing that to us, now...

    Some other people have noted that Magnequench is a Chinese company -- but their World Headquarters is in Anderson, Indiana. So they look like a U.S. firm. They have a "Technology Center" in the RTP area, just up the road from me. They make their materials in China. The Chairman of their Board is Chinese.

    However, according to their "timeline," General Motors, Sumitomo Metals and the Chinese Academy of Sciences all discovered neodymium-iron-boron magnets in 1982. Magnequench was created as a "business unit" of GM in 1986. Then, in 1995,

    Beijing San Huan New Material High-tech, Inc., China National Non-Ferrous Metals Import & Export Corporation, and an investment group led by Sextant Group, Inc. acquire Magnequench and establish Magnequench International, Inc

    So, yes, they appear to be a Chinese company now.

    Apparently Sumitomo Special Metals Co. licensed the magnet technology to San Huan New Material High-Tech Inc., which sells the stuff through Beijing San Huan International Trading Co. Sumitomo has this notice on their website:

    "Notice : In the United States of America and Canada, you may use Sintered Neodymium-Iron-Boron Permanet Magnets, as the piece part magnet or as it's assembly, manufactured by the [above] licensees ONLY. Use of Sintered Neodymium-Iron-Boron Permanent Magnets made by non-licensee is prohibited by the Patent Law of the United States of America and Canada."

    Sumitomo is a Japanese company that got its start in 1918 as Sumitomo Steel Works, Ltd. So it appears that, even though GM invented the stuff here, they sold it to the Chinese who now license it from the Japanese.

    Ninbo Konit Industries Inc. is the only Chinese licensee of Magnequench and Sumitomo. They are also the largest manufacturer of NdFeB magnets in China. They are located in the "Ningbo Economic and Technical Development Zone" in Xiaogang, China. I.e., one of the pseudo-capitalist (mercantilist, really) enclaves in otherwise Communist China. Konit is actually owned by San Huan High-Tech New Materials. Apparently Tridus of Rancho Domingo, California founded San Huab New Materials in a joint venture with the Chinese Academy of Science. They claim to be "the only legitimate importing and marketing company for Chinese Sintered Neodymium Iron-Boron permanent magnets in North America."

    Apparently these infringement suits have been going on for a while. In 1995, a suit was originated in the PRC and Hong Kong by Crucible Materials Corporation against San Huan New Materials, Tridus and Ningbo Konit, among others. Violation of patent #4,588,439 ("Oxygen containing permanent magnet alloy") was found and a Cease and Desist issued.



    - - - - -
    --
    Napster-to-go says "Fill and refill your compatible MP3 player", which is a lie. It's not MP3. It's WMA with DRM.
  9. Does anyone bother reading the articles any more? by BobGregg · · Score: 4

    You know, aside from the obvious "yet-another-patent"-ness of this, there actually are some interesting points to be made, that if anyone (!) had bothered to read the actual article(s), they might have picked up on.

    For instance, "Magnequench" is not some Johnny-come-lately. They started as a division of GE back in the mid-'80s. The magnet technology was originally discovered in 1982, and they've had a production plant in operation since 1986. They have physical plants in both the US and China. They actually produce the products that they are suing over, as opposed to a lot of the business-method parasites usually discussed in these forums.

    And incidentally, in 1995 the whole shebang was acquired by a Chinese holding company. Yes, a Chinese company suddenly has the potential to drastically affect a large portion of the American computer-manufacturing market. Does anyone think *that* might have interesting repurcussions worth discussing?

    And FYI, here is the link to Magnequench's patent guide, which actually lists all of their patents (see especially 5172751), including their so-called philosophy, in case anyone feels like doing more than just barking today.

  10. Re:Analyzing that YANAL by frankie · · Score: 4
    You Are Not A Lawyer. And it shows, badly.

    Neither am I, but I do know the difference between trademark law and patent law. A patent holder does not Not NOT need to defend it in order to maintain it. They can choose to enforce it selectively, at a late date, or otherwise, any time in the duration of the patent.

    The parent post is a good candidate for -1: Misinformative moderation.

  11. Re:Recall? by alarmo · · Score: 5

    That'd be funny. The yahoo article did say "destruction of products owned by the defendants", though, so I wouldn't worry about your personal CDRW drive motor too much.

    It does make you wonder how in the world everyone got to be using that magnet material without *realizing* it was under patent, though. There's gotta be a story there - maybe a "publish the method but forget to mention the patent" story a la LZW compression? Anyone have more info?

  12. I hope they don't make fridge magnets by oily+pants · · Score: 5

    Now I guess I'll have to pile all of my kid's art work on the floor next to the fridge.