Intel Must Pay $150M for Patent Infringement
An anonymous reader writes "ExtremeTech is reporting that a U.S. district court has ruled that Intel's Itanium infringes Intergraph's intellectual property to the tune of $150 million in damages. The judge also cleared the way for Intergraph to request an injunction blocking sales of Itaniums and Itanium 2's."
...must be throwing a party right about now.
What's that smell? Ah, that's my karma burning...
I just wanted to be the first to say that.
I know this doesn't really have anything to do with DRM, but it would be nice if it would at least slow it down.
But on a more relevant note, isn't this also taking patents a little too far? It sounds like they've patented a kind of technology that is virtually inevitable in the computing field. Could I run out and patent the idea of 128 bit parallel chip?
If we're going to fight IP abuse, it may actually be in our interest to support intel on this one. Unfortunately that would be helping a company at the forefront of DRM.
Oh the horror.. We may be screwed either way.
The article fails to mention any technical details concerning the patent, but it sounds as if it has something to do with Intel's EPIC (which basicly is VLIW).
I'd say that Intel will have to pay, because if Intergraph stops the Itanium series of processors, it will mean an even bigger loss of money, and perhaps give AMD time to get a market advantage with the Hammer.
See it here http://www.theregister.co.uk/content/3/27561.html
It seems that intel has learned a lesson the chinese already knew with regards to making sure you really own your ip portfolio.
Or it could be proof that even the best lawyers can occasionally miss something embarrassing in a patent search.
Intel no doubt has a lot of patents that it regards as valuable, so it won't support a proposal to do away with patents all together. But a proposal to reduce the "landmine" effect of unknown patents might win support in the technology industry, because landmine patents are a nightmare to everyone there.
So, how do you prevent landmine patents but still keep the basic concept of a patent? Maybe the time has come for a "sweat of the brow" basis for patents. At present patents are granted on the "lightbulb moment" theory: the inventor has a flash of inspiration and the invention springs fully formed from his brow. But this leads to silly stuff like the infamous XOR patent (which patented the use of XOR for screen cursors in GUIs). However the justification for patents lies in the investment required to bring an idea to market. So maybe patents should be granted based on evidence of the hard work required to generate the invention.
What do you think?
Paul.
You are lost in a twisty maze of little standards, all different.
Take a look at AMD's stock price now and compare it to 1999. Now look at intels. They both have went down but AMD lost a hell of alot more.
http://saveie6.com/
From the FAQ...
I'm not a particularly big fan of Intel. But I want 64 bit processing to take off. This only hinders that. I'm really goddamn tired of our litigous society.
Is Intergraph going to market a 64 bit chip for us? No. So why the hell do they feel the need to... bah. Nevermind. I can't go anywhere with this, it just gets me upset.
"I will trust Google to 'do no evil' until the founders no longer run it." Hello Alphabet.
Here we have a typical case of the patent system working properly:
A smallish (relatively) company create an invention -- new hardware
A large company sees that, likes it, and decides to copy that invention
The smaller company sues for patent infringement, because hey, the big company didn't invent this
This is how things are supposed to work. Software patents are a completely different thing, but here we have a non-trivial hardware inovation that was patented and that patent was infringed upon. Please don't lump the two together under patent reform.
This is EXACTLY the sort of case that the patent system was set up to support. This is a GOOD example of patents working well. Intel infringed on the work of another individual, okay they claim they didn't know about it, but how much should we believe that a corporation like that didn't just think "Hell we've got the most lawyers".
Intel get zero sympathy from me here, too many big companies have played the lawyer card and won.
An Eye for an Eye will make the whole world blind - Gandhi
Have a look at the source of the patent claims:
Intergraph
It has extensive information about this lawsuit and a previous one, including legal docs, tech docs and some flash presentations for the technically impaired.
karma police: arrest this man, he talks in maths; he buzzes like a fridge, he's like a detuned radio. [radiohead]
I mean they used the same instruction set to input instructions and data, but by converting the x86 machine code into an internal machine code, they avoided directly implementing a x86 processor (although they did implement a translator) and thus (as a judge ruled, I recall) avoided patent infringment. Like I said, I wish I had an article to back this up.
In another matter how is it that the PIC is patentable? The article is plenty scant on technical details, but I got the impression that it was just a fancy term for pipelining, which has been around in supercomputers for 25-30 years. Does anyone out there know if PIC is some sort of new, exceptionally novell way of pipelining, or is it just another example of the patant office issuing a "you are the only one allowed to use this incredibly simple, obvious technique, that half the industry uses already."
Don't get me wrong, I'm not a big Intel fan, but still...
"A dictatorship would be a heck of a lot easier, there's no question about it." -George W. Bush
Cheque made payable to Intergraph for $149.99999...
Orginally a working model of the invention was one of the required submissions to the patent office. This caused something of a logistical problem and so the requirement was eventually dropped, but it shows that the writers of the original patent laws ( Jefferson primarily) understood the problems the current system faces.
"The Patent Act of 1790 (H.R. 41, introduced February 16, 1790, passed March 10, 1790) was crafted in part by Thomas Jefferson. As a result, it incorporated many of his beliefs including requirements for patents to have models submitted with all applications. Jefferson believed that ideas should not be patentable, rather patents should be issued only for physical inventions that have been reduced to practice."
http://www.m-cam.com/~watsonj/usptohistory.html
KFG
When big companies get hit a few times like this corporate America will start to see the point that there's really no one who benefits from the patent system the way it is right now. But doing away with patents altogether won't find any takers, as someone's pointed out. Still, this is a good time to start a serious campaign for patent reform. Some checks and balances should be built in, along these lines:
-
Anyone about to release a product submits a description of it to the PTO; patent holders who think the product infringes on their patent has a month or 2 to file a complaint and prove the infringement. The onus of looking out for possible infringement lies enrtirely with the patent holder.
-
A patent holder can not be allowed to sit on a patent indefinitely and prevent others from using the invention. To this end, a patent holder must produce proof that s/he is working to commercially exploit his patent if s/he wants to hold on to it for more than (say) 10 years.
I'm not sure if these are practical to implement the way I've put them, but you get the idea.Of course I don't think anything of this sort will happen in the near future, but that doesn't mean we shouldn't fight.
Intel agrees to 72-hour deadline
r ch _6_2001.htm
technology firms aim to end free access to their goods
Intel, the chip making giant, has agreed to block patented CPUs from its site, following a fresh legal ruling.
A federal judge has given Intel 72 hours to block the processors containing patented "paralell instruction computing" technology.
The deadline operates from the moment anti-fun agents present Intel with lists of processors containing patented "paralell instruction computing" technology they want banned.
"Intel will follow the District Court's order," said Hank Barry, chief executive of Intel.
"Even before the court entered the order, we began making efforts to comply with what we believed to be the dictates of the Ninth Circuit's ruling," he added.
A spokeswoman for the Intergraph said lawyers for the trade group had received the long-awaited injunction late on Monday night in the US.
"I have never bought so much bloatware in my life since I started using Intel"
A Intel fan
The ruling is another victory for the anti-fun agents who have been in legal battle with Intel since December 1999.
They object to their CPUs being freely passed online in little static-charged plastic drug deal baggies between the 50 million Intel users.
"We are gratified the District Court acted so promptly in issuing its injunction requiring Intel to remove infringing works from its system," said Hilary Rosen, president of the Intergraph.
Dismayed fans
Fans of Intel, however, have expressed their dismay at the latest ruling.
"I don't know why people would believe for a second that the CPUs industry is losing money because of Intel," said one fan, using the name "Scorpio 65".
"I have never bought so much bloatware in my life since I started using Intel... I can promise I won't be buying as much bloatware if Intel shuts down, because I won't be able to load or run anything."
Fans also said they would be turning to other chip makers on the internet, such as AMD, Cyrix and Transmeta.
Identifying chips
However, Judge Marilyn Hall Patel also ruled that major CPUs producers must help Intel comply by making "a substantial effort" to identify chips that are being transmitted through the chip-swapping service.
Mr Barry added that court rejected the technology brokers's argument that Intel was inherently illegal.
He called for the technology brokers to share with Intel the burden of complying.
Although there are as yet no details of what punishment might be imposed if the deadline were missed, the most likely would see Intel forced to close down.
Nicholas Economides, an economics professor at New York University, said he sees the decision as "the beginning of the end for Intel, at least for Intel as a beacon of hope in the free world."
Industry doubts on filter
Intel said it had started blocking users from two million CPUs chips late on Sunday.
Industry sources said that amounted to barring only 1,000 or fewer patented processors containing patented "paralell instruction computing" technology on an online directory in which billions of such chips were traded monthly.
And some Intel users were reported to be already finding ways round the blocking mechanism.
On its website, Intel said the process of screening out chip names, clock speeds and L2 cache sizes would not be easy.
"It has involved a significant investment of time and resources," a statement said.
"However, we believe it is superior to shutting the service down and disbanding the community during the transition period to the new membership-based service."
Intel made its pledge to block access to patented material on Friday when it was in court fighting for its life.
anti-fun scepticism
Several major anti-fun agents had sued Intel for encouraging and facilitating patent infringements.
They had asked the judge to issue an injunction that would ban the service from operating unless it could block fargs of patented CPUs.
It was believed that this would effectively bring Intel's life to an end because the service had said it did not have the software to filter out such processors containing patented "paralell instruction computing" technology. Consequently, Intel's sudden promise was met with much scepticism.
"They've been telling the courts they can't do this. All of a sudden, they figured it out," said Robert Schwartz, a lawyer who has previously represented Warner Studios in similar cases.
Imminent injunction
Judge Patel had previously issued an injunction that would have effectively closed down Intel, but had been asked by a higher court to reconsider the case after Intel appealed against her decision.
"I've been stealing ram sticks like crazy"
Intel user
Intel wants to transform its website into a subscription service, where people pay to farg CPUs.
To make this a success, it needs to retain its loyal users, and this cannot be done if it closes down.
Widely watched
The legal battle with Intel is being closely watched because of its implications for CPUs, books, wheels, fire and other technology being distributed via the internet.
However, Intel's efforts appear to have won over at least one of its potential rivals.
Media and technology giant Vivendi Universal seemed to warm on Monday to the idea of joining Intel's planned subscription service with German media giant Bertelsmann, saying it could consider jumping on board over the next few months.
http://www.stern.nyu.edu/networks/quotes/BBC_Ma
I understand why you don't want to let just anybody build products on the back of the research done by a company's scientists. But this sounds to me like Intergraph were not honestly trying to prevent Intel from using their IP. In fact, I think they might structure their buisiness model around this sort of deal: Patent something you know a big company is going to need soon, wait until they've completely commited to it, and beat a few million out of them in court. Would anybody call this a legitimate revenue model?
One might even feel bad for Intel, as they seem to attract some pretty slimy parasites recently (none worse than Rambus). However, one must remind oneself about all the frivolous IP infringement suits they filed against AMD and VIA. Then, this looks like cumupets (sp?).
This is a familiar pattern.
A company that fails in the market resorts to intellectual property suits to tax successful companies.
Let's be clear here, Intel didn't steal Integraphs designs, but now everyone who purchases an Itanium CPU from Intel must subsidise Integraph who had no hand in designing or manufacturing them.
IP patents lead to all sorts of problems. How different is different enough not to be sued? If I independently develop a similar, say, algorithm why shouldn't I be allowed to use it?
If I discover an optimal algorithm but then another makes the same discovery and patents it, how is this fair?
How can you tell the difference between an invention and a discovery? What if I use a different means to achieve the same specific end?
Sometimes when I think about pantent law, I say to myself, "Me, why does head feel like it being applied to sufficiently large cheese grater and vigorously shaken?" To which I answer, "You mindless grammar fiend! More brain washing for you!" and silenty look at the pretty blue colors at microsoft.com
Why, o why must the sky fall when I've learned to fly?
I had this great idea, and thought of Patenting it, but in the interests of open source and free software, decided to publish it for free use. As far as I know, there is no prior art. :-)
VCR Clock SettingA reliable sign of the absence of technical knowledge is to see the flashing 12:00 of a VCR. It seems that manufacturers can't get their act together, to create a UI that the average Joe (or Joanne) can use to set the time in the VCR (or Microwave oven.)
My idea is to add a single button, replacing all those time setting menus. On this button, and also on a large sheet of card in several languages, would be written the words "Press the Time button at 12 noon." Of course, technicians can also be trained to do this for those who have trouble following instructions.
Share and Enjoy!
[Note to moderators: +1 Funny. It's humor.]Paul Gillingwater
MBA, CISSP, CISM
The point is that Intel is loaded and this was pocket change to them.
Stock price means nothing except PERCEIVED value of a company. It only has something to do with reality in so far venture capitalists are able to distinguis between fact and fantasy (and we still remember the .com bust) ...
Did you know, that the wheel has been patented?
Innovation Patent #2001100012 granted by the Australian Patent Office.
/. Where the truth
And, from the USPTO itself: US 5794003 and US 5560028
And, for future reference: search the USPTO
Discussions such as this one are the result of the different views people have on the reasons we have patents. What is it the patent system actually tries to accomplish?
Stimulate research by allowing individuals and companies to reap the full benefits from their research, knowing that the competition will not be able to run off with the things they have laboured to invent. Patenting drugs is an example, they take considerable research and testing to develop, and their formulas should therefor be protected. However patenting gene sequences also fall under this category. Many people say that they should not be patentable, but it can be argued that they should, due to the large amount of effort involved in finding and exploiting interesting gene sequences.
Protect ideas, basically saying that if you think of something first, you have full rights to the idea. Something like the telephone, for which the technology already existed but no one had thought of this particular application yet, before Bell. Single-click buying and XOR cursor patents fall under this category as well though, patented by people who are simply the first to be faced with a trivial problem, and patent the obvious solution to that problem.
Foster innovation and competition in the marketplace, by giving startups the rights over their ideas and designs, they have the opportunity to develop their business without the competition taking their idea and crushing them. Individuals thinking up novelty items such as the "waving hand on a spring" would like their ideas protected, so that they can market and produce these items without large-scale Hong Kong and Chinese manufacturers taking their idea and flooding the market with 10 million units produced overnight. But Intel can use this as well, patenting the design for a CPU socket to lock out competition in a market they already dominate.
Which ever of these three reasons for patents you believe in (or any other reason for that matter), one can come up with both good and bad examples of patents that meet the criteria, ("Good" and "bad" being designations that most people would agree with in these cases).
In my opinion, the best solution might be to shorten patent life. If the purpose of patents is to encourage ideas to be published and used, yet allow the inventors to reap the benefits of their ideas and their work, then a shorter lifespan of patents would work well... how long does it generally take for a company to recoup monies invested in research anyway? If I have a good idea but I lack the means to develop it in the near future, is the public not better off if another company is allowed to use my idea after the patent lapses after a few years, instead of allowing me to sit on it for ages, perhaps hoping some company will discover the same idea and then spring my patent on them? I would suggest a patent lifespan of no more than a few years... but perhaps others can come up with reasons longer lifespans would be a necessity.
If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
The thing goes like this. To produce an innovation, i must spend money. And then i can get the money by orverchaging a bit when i sell the product, to compensate the R&D costs.
Now, if i want to overcharge a bit, but company B has this technology withoout any R&D, the wouldn't care to sell it cheaper (production cost + very small margin). So I can't sell my product unless i charge the same.
So I don't do that R&D and so there is no innovation. But as we already know, the patent system is doomed, because it assumes there is no cost for patent research, it asumes it's costs the same to research 1 patent, 100, 1000000, infinite number.
So at the end, it stiffles promotes innovation, but depromotes implementations/applications, and breaks the techonolical advance foundations which is built layer upon layer.
Unless you can trade cards (patent portfolio), which means only large corporations can access the technology.
In the end, you can never be sure it does more harm than good, but companies are mostly cnfortable with it, because at the end, it's a way to split the cake ($$$).
And that's what companies are about. But as it beign the perfect tool to promote innovations, i very much doubt it.
unfinished: (adj.)
Because it's worth a lot, at least $150M, that's why.
unfinished: (adj.)
The more big companies feel the pain caused by over-reaching IP claims, the faster the day will come that our "representatives" will be forced to rationalize these laws.
You were mistaken. Which is odd, since memory shouldn't be a problem for you
Is that the same Intergraph that used to make high end 3D workstations?
Perhaps they still do, I've been out of the 3D world for a few years now - but I never really thought they had any of their own technology, just cool cases and fast hardware (other people's hardware), and solid video cards.
There are some odd things afoot now, in the Villa Straylight.
There is a big difference with genetics. Genes already exist in nature. The people who are patenting genes are FINDING them, not INVENTING the. The result is that they are using the patent to prevent other people from performing research on naturally occuring bio functions.
Simply having a lot of work and money involved in something does not justify enabling patents on it. You are still FINDING something that already existed. The patent system is for developing something that does not already exist.
One group patented genes that they thought were related to breast cancer. Then they prevented other groups from researching various cures for breast cancer. THAT SUCKS.
If someone developes a gene sequence from nothing, let them patent it. But if they just find an existing sequence in nature, then it should qualify as prior art and prevent the patent.
There is nothing so silly as other peoples traditions, and nothing so sacred as our own.
I just unloaded my Intergraph stock a month ago.
Oh well. I used to work in Intergraph's advanced processor division a couple a years ago. There was this designer that laid out the clipper cache for the C3/C4 processor. Well he got grabbed up by intel a few years later. Word had it, he designed part of the pent/intn cache.
Supporting World Peace Through Nuclear Pacification
Pending the final outcome of this patent infringement case, I wonder how this will affect AMD and its *hammer chip uptake in the higher-end 64-bit x86 architecture market. Should Intel lose the case, does any of this have the potential to help AMD increase market share in the 64-bit arena, whether by virtue of being a pure, innovative technology (as opposed to being ripped from someone else), or by having an advantage of already being on the market while Intel redesigns their chips? Or by having cheaper chips (by not having to tack a litigation 'tax' onto the price of processors)?
Does any of this even matter? Will AMD still be the Cinderella in the corporate eyes when this is over?
Have EVDO, will travel.
If anything, Intel would have released it sooner, to build up OEM demand for it, and thus allies to help them argue against an injunction. As it is, Intel will have a hard time getting people to care, when OEMs are happy to continue using Xeons.
Too bad this patent doesn't keep people from reinventing it.
!#@%*)anks for hanging up the phone, dear.
In pharmacuticals this approach is feasible. A medical patent would have to mention both the disease and the treatment, and both of these have fairly well defined keywords to describe them.
At the other extreme, software patents are essentially unsearchable. A patentable idea can often be expressed in a few lines of code, so a 100,000 line program has many thousands of ideas in it, any one of which might already be patented. Worse yet there is no system for categorising and naming these ideas, so if I want to do a patent search on even one of these ideas I have only the vaguest guess as to what keywords to look for.
So the only thing to do is to put your product on the market and pray that someone doesn't pop up and say "You stepped on my patent: cease and desist selling your product immediately".
Intel faces a very similar problem: just substitute "simple logic circuits" for "lines of code" in the above. In fact chip designers these days do actually design chips in a programming language called VHDL, so the cases are exactly parallel.
Paul.
You are lost in a twisty maze of little standards, all different.
This may be a little offtopic but as people is again discussing the merits of the modern patent system I would highly recomend this link from Scientific American:
There's No Stopping Them
Well SciAm is a highly respectable publication which seems to have some good years of life. So I think we may take into consideration that if even perpetual motion engines keep being patented, anything can be patented, even the Creation or the Big Bang... Besides, in the article they give some interesting reason why we have so many silly patents and why we have so many troubles with courts. While this is not exactly about this patent we are discussing here, it gives some light on the state of the things.
But in the long run, AMD may be able to proceed ahead with better, faster processors while Intel is still trying to work on a replacement for Itanium (if the injunction goes for blocking sales).
They may take a stock hit, but progress technology-wise they may be able to get put more of a dent on Intel's bandwagon.
Those who go for AMD usually stay with AMD - phorm
An abnormally bad flu season probably costs Intel this much.
... AMD announces the acquisition of Intergraph for $400M. :-)
That is all.
Patents are not evil. But while we are getting a system giving rights to every jerk down Earth to claim and pursue every silly idea, that will put it into question the very reason of its existence. Currently the present patent system cannot aford what was supposed to do - to protect real and genuine innovations. Besides the patent system had a social status - to protect the inventor from being stolen its right to reward.
What we see? We see patents being hold for nearly everyone. From genuine inventors down to perpetual motion dodos. And we see corporations catching up the mood with buying licenses for the most silly patents. Why? People think tha its because it is too onerous to hold in court a claim against a patent. NO! It's because this idiotic and subversive patent system allows them to circumvent the ideology of patent protection. By paying a license for every stupidity, they are legalising the stupidity of the patent. It will be harder for concurrents to hold in court against the claimer if he already has got a few licenses from major players. Some big ones may still try to fight, but not anyone can hold up against some claimer who had already stuffed a few millions from a few licenses.
This is the reason why many big players don't even think to charge over some "John from the street, with a patent on perpetual motion hyperlink". It is much better to stuff him with some money and leave him doing the dirty job of hunting claims over the concurrents.
I think all this patenting should be dropped. First of all they should limit patenting to things that are really revolutionary. Secondly, having a patent should not be profitable. It would be just to get credits as being first.
Them why the HELL with anyone file for a patent? Instead it would be much more profitable to just keep the invention secret, and tie it up with restrictive licensing terms and trade secret protections.
You think patents hinder progress? Consider the alternative - no patents to read, and everything kept as trade secrets. This was what was going on during the start of the industrial revolution - all kinds of equipment was being sold in sealed, welded shut boxes that had to be sent back to the factory if anything went wrong. England had lawes that forbid the export of ANY mechanical devices (there were famous cases where things like sewing machines were smuggled out to Americas).
This sort of stuff was so obviously hindering the growth of the industrial revolution that goverments of the time instituted patent systems to encourage companies to divulge their inventions. The result was a huge improvement over not having a patent system.
It is UNBELIEVABLE how many people crtitcizing the patent system have no sense of history, or the reasons behind the institution of the patent system,
Actually, neither Edison nor Swan patented the lightbulb tho. Woodward and Evans did. They couldnt finance the research even with the patent, however, and Edison bought it from them. De La Rue made the first actual lightbulb almost 60 years before Edison bought his patent... however, it used platinum rather than tungsten which made it not quite as useful. Wether the patent helped or not or should have been granted is sortof dubious I guess.
Penicillin wasnt actually patented at all. It only got developed for popular use once the second world war broke out.
an injunction blocking sales of Itaniums and Itanium 2's
New and improved name! Unobtanium!
-
- - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
As an upside all those old cartoons showing people holding models in the waiting room at the patent office would make sense again ....
Seriously though I beleive that all patents should pass the "Edison test" - basicly is it such a revolutionary idea that you think Mr Edison would have been proud of it. You should be able to patent revolutions, not incremental improvements
Should have read:
"So at the end, it promotes innovation, but depromotes implementations/applications".
The thing are clear:
Patents promote innovations when:
- Other companies can catch up pretty quickly
- A lot of R&D is needed
- You can't use secrecy as a shield
Patents depromote implementation because:
- A % of them are not real innovation
- You need to spend hue resources to research not your product, but the Patentend stuff itself (the minefield)
- A % of them would be unneeded (even if we are talking about real innovations). That is, the innovations would STILL be produced even if there was no patent law.
So the net effect is quetionable. The idea is that if you focus on what it does well, or when it fails, you have a neverending argument. So it all boils down to: how much good it does vs. how much bad it does.
Bottom line: we should have a way to measure the net effect, and decide based on that. If you don't know the net effect, you will see it all boils down to how much lobby the interested parties can buy (people, vs companies vs countries).
I don't know if it makes sense to you anyway...
About the modding up, I don't try to understand it either. It works on AVERAGE. Not on individual posts. But i guess it has to do with the first part of the message. The simple part that explains why patents to MAKE sense (patent law basic argument).
Bye!
unfinished: (adj.)