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Microsoft's Patent Problem

pens writes "Microsoft suffered utter defeat at a crucial pretrial hearing in what appears to be the highest-stakes patent litigation ever--one in which a tiny company called InterTrust Technologies claims that 85% of Microsoft's entire product line infringes its digital security patents."

25 of 712 comments (clear)

  1. Pipe Dream by (54)T-Dub · · Score: 3, Interesting

    If settlement talks fail and InterTrust prevails in court, it would be entitled to a court order halting sales of all those products.

    It'll never happen ... but hey ... we can dream right?

    An investor group led by Sony Corp. of America and Royal Philips Electronics bought the company in January for $453 million, hoping to convince consumer electronics and tech companies--beginning with Microsoft--of the need to license its patents.

    This eliminates the buy-out option.

    --

    "I can not bring myself to believe that if knowledge presents danger, the solution is ignorance" - Isaac Asimov
  2. Lesser of two Evils? by sleepingsquirrel · · Score: 3, Interesting

    This presents quite a dilemma. Do I root for Microsoft and hope quell the tide of overly broad patents? Or do I root for InterTrust and hope this derails DRM for the time being? I guess I'm leaning toward the option where the trial drags out for two years, but MS eventually wins. That way at least the patent gets busted (because we know that MS would eventually license and implement DRM anyway).

    1. Re:Lesser of two Evils? by Yohahn · · Score: 4, Interesting

      Root for MicroSoft, if we get overly broad patents taken care of, MicroSoft will have one less weapon against Linux.

      At the same time, laugh at the irony

  3. Another Fine Mess by druske · · Score: 5, Interesting

    While it's tempting to get a laugh out of a little company handing it to Microsoft for its use of DRM technology, of all things, this is yet another B.S. piece of patent litigation. InterTrust, according to the article, is now nothing more than "a patent portfolio, 30 employees, and this lawsuit." Microsoft, like all other technology corporations, has its own bulky patent portfolio --- which is useless defense against a company that makes no use of its own patents, much less anyone else's.

    It'd be funny if Microsoft used its considerable political influence to fix this patent problem, and wound up killing SCO as a side-effect. Hey, it may be cheaper than licensing DRM from InterTrust...

  4. Attack on software by mhesseltine · · Score: 3, Interesting

    Ok, you have SCO attacking Linux over licensing code. You have this small company (but backed by larger companies SONY and Phillips) attacking Microsoft. Where does someone turn to get away from all the legal hassles?

    Ignoring the trolls, would a *BSD system be better off, because SCO doesn't seem to be claiming anything related to BSD.

    Also, could this be a nail in the coffin of DRM? Or, would MS just pay the license fee, and jack the consumers for it anyway?

    --
    Overrated / Underrated : Moderation :: Anonymous Coward : Posting
  5. .NET? I'd be worried... by alyandon · · Score: 4, Interesting

    If they are claiming that the .NET framework somehow infringes on their patents I'd be really worried about whether those claims could be extended to Java and J2EE.

  6. Re:2 Questions... by mjh · · Score: 4, Interesting
    Q1. What if Microsoft developed a way to carry out their authentication (using these trusts) either 1. On their own or 2. Without even hearing about InterTrust's patent?

    This guy is not claiming copyright infringement. Therefore he doesn't need to see the source code to determine whether or not infringement occurred. He simply needs to see a program which implements (via any source code) a technique that he's patented.

    Let's use an example of what I mean. Mailblocks claim that they have a patent on an antispam technique called "Challenge/Response". Then comes along Earthlink who implements a C/R antispam option for their customers. Mailblocks sues Earthlink. Now Mailblocks hasn't seen any of the source code to the software that Earthlink uses. But they know that they have a patent on what earthlink is doing, because they can interract with it and identify whether or not Earthlink's system implements all of the claims of Mailblocks' patent. Then they file suit.

    BTW, I don't particularly like the patent claim that Mailblocks is using. I think that there is a *LOT* of prior art that can be demonstrated for this particular patent. However it is useful to illustrate the point: that this guy does not need to see Microsoft's source code to claim patent infringement. He only needs to play with the software and see if it does something that he's patented.

    --
    Key to financial independence: Spend less than you earn. Save and invest the difference. Do it for a long time.
  7. Re:2 Questions... by Meridun · · Score: 4, Interesting

    This is not copyright infringement, this is patent infringement.

    If someone accuses you of infringing on their copyright by stealing sourcecode, you can disprove them if you show that your sourcecode bears no resemblance to theirs.

    If someone accuses you of violating their patent, you must prove that your invention falls outside the scope of their patent OR that their patent is invalid due to prior art.

    Therefore, your questions of how they got the code aren't terribly relevant. As for how InterTrust noticed that they were using patented techniques, well, I assume they probably keep up in the field and read some of Microsoft's whitepapers. Again, patents cover a scope of techniques, rather than an exact set of code instructions, so it's possible to gauge infringement without a sourcecode comparison in some cases.

  8. Re:Just because it's Microsoft doesn't make it rig by martissimo · · Score: 4, Interesting

    Let's face it, this may be a 'small' company putting the boot in, but it's a 'small' company owned (mostly) by Sony. Patents still only help those with very deep warchests.


    Lots of different ways to look at this case, and frankly i'm not sure exactly where my opinion on it stands just yet.

    But this idea you floated about the litle guy making nothing off patents is clearly wrong. These were little guys who came up with their patents a while ago, they later sold rights to them to Sony and Phillips for 453 million dollars who are now trying to make the "big score" on their investment. If you ask me, the 453 mill "sure thing" they got was far from a pittance to a company of their size (even if Sony does make billions off it, they took a gamble with that 453 that they could have possibly lost)

  9. Re:This actually sucks by Paul+d'Aoust · · Score: 5, Interesting

    If I had mod points I'd mod the parent as "insightful"... I agree strongly with the sentiment expressed therein. I would love to see Mickeysoft go down, but not at the hands of a bunch of guys with an IP portfolio. A situation like that would further engender this whole miserable environment of "intellectual property" enforcement.

    The ends don't justify the means, especially in this case!

    --
    Standing at the very edge of my imagination, I peered into the inky void and realised -- I couldn't think up a new sig.
  10. Not neccesarily a bad patent by Hamfist · · Score: 5, Interesting

    The Intertrust patents are pretty specific. They lost their business because Microsoft used their patents and essentially gave them away for free in their products, destroying the value for Intertrust in selling their technology. Though all that remains of Interust are patents and lawyers, at one point they had almost 400 employees. 400 employees worked for several years to produce technology that was co-opted by Microsoft. All of those employees lost their jobs because Microsoft used their patents.

    Though the majority here just say that 'software patents are bad' , there is some justification for patents. The main problem with software patents is the USPTO and it's inability to properly check patents; issuing overbroad patents that cover overly generic stuff.

    These aren't submarine patents or anything else as Intertrust sued Microsoft shortly after talks between the two companies broke down when Microsoft was first introducing DRM into Windows Media Player.

  11. Re:Oh great by spirality · · Score: 5, Interesting

    Actually in principal the whole patent/copyright system is a mess. This is just another symptom of it. What would be nice is if Microsoft woke up to that reality and began lobbying for some changes. Certainly they have some pull in Washington...

  12. InterNonsense... by hysterion · · Score: 4, Interesting
    InterTrust CEO Talal Shamoon asks rhetorically, "How much would that be worth to Microsoft?"
    Hey this rings a bell... it's the SDMI watermark company and guy! Kind of nice to see how that all ended:
    At its prebubble height, InterTrust (founded in 1990) employed 376 people and marketed its own software and hardware products; today it consists mainly of a patent portfolio, 30 employees, and this lawsuit.
  13. Re:This actually sucks by jafac · · Score: 4, Interesting

    It's like the end of Jurassic Park, when the kids and the scientists are all cornered by the Velociraptors, and suddenly, the T-Rex comes along, and tries to eat one of the Velociraptors, and then the other two attack the T-Rex, and the humans escape.

    It's great when two evils decide to attack eachother.

    This is why competition is good, and monopolies are bad.

    The US Govt - by the way, has a monopoly on awarding patents.

    --

    These are my friends, See how they glisten. See this one shine, how he smiles in the light.
  14. What's next ? David against Goliath ? by Atreide · · Score: 3, Interesting

    I am quite surprised.
    Lot's of "Urah" and "that's good"...

    But just remember :

    1/ if InterTrust succeeds who's coming next on their menu ? However I do not think the future will take this path.

    2 / remember, InterTrust is backed up by Sony & Philips. That is not David against Goliath as some are thinking. That is Mamoths against Mamoth.

    They will probably settle an arrangement. It is not good for Sony & Philips to test the validity of the copyright up to its end. It is far much better to let the shadow of it, in order to scare others. That is much better in order to force others into complying with their own agenda. Remember who are Sony & Philips ? They are not FSF advocates but music & multimedia devices suppliers... Remember who are their friends ?

    Their agenda (InterTrust agenda) is probably to give Sony & Philips leverage on MS in order to implement THEIR technology into Windows. That will make money (licence + standard devices & albums disks) for them and cost nothing (no market to penetrate, MS does it & no trial for years). After that their technology will be all over the rest of the world.

    The best thing (the worst ?) of all 3 is that it can even be good for MS who might end with 2 allies in order to propagate its technology (CE in Philips & Sony devices ? MS DRM in Sony albums ?).

    Indeed that is very very bad for all of us.

    We are living is a very sad world guys. Depressing to read /.

    --
    The world belongs to those who get up early. - I'm far from being the king of Earth then :-(
  15. Why Patents Are A Good Thing by SilentMajority · · Score: 5, Interesting

    Couple reasons:

    1. Without patents, the little guy who invents something new won't be able to compete against the big corporations who copy his idea.

    2. Patents are REQUIRED to describe sufficient details so that any reasonably skilled person in the "art" (computer science, electrical engineer, etc.) can actually use the patent to build the invention. This means rather than keeping useful inventions secret, the inventor benefits for about 17 years after which the general public can benefit too by having details available.

    In other words, patents CAN help the lone inventor protect his invention and it helps foster an environment where inventors are incented to SHARE details about their invention with the public.

    Like anything else, there are abuses and extreme cases but it doesn't mean there are no benefits.

  16. The reareason MS is indemnifying their customers? by univgeek · · Score: 3, Interesting

    While we all thought that MS was indemnifying their customers in order to present Linux in a bad-light, might that have been to assuage customers against this ruling? This news seems to be put MS WindowsXX in a much worse position than Linux/IBM is now. There is already a ruling against MS, as opposed to only 'legal vaporware' against Linux. Convince your company to stay away from MS based on this!!

    --
    All bow to his Noodliness!! His Noodle Appendage has touched me!
  17. This threatens us all, not just MS. by borgheron · · Score: 3, Interesting

    Software patents are wrong in general. It seems as though this company has become a litigation engine for finding infringements of it's patent anywhere it can, even if it's a stretch.

    I'm no Microsoft lover, but I don't like seeing software patents abused in this way.

    GJC

    --
    Gregory Casamento
    ## Chief Maintainer for GNUstep
  18. Re:This actually sucks by orcrist · · Score: 3, Interesting

    You can't have it both ways.

    Though I agree the parent comment was very insightful, I think I could have it both ways. One of the reasons I dislike Microsoft (Or at least its business practices) is because of the degree they have egendered/exacerbated the very IP problem mentioned in the parent comment. I don't think it's the tip of the iceberg per se, since MS itself was the tip, middle, and a good portion of the bottom of the iceberg. It would be a pleasure to see them suffer the literal consequences of their actions and it would be (at least) poetic justice, with the added bonus of knowing they would be forced to at least partly aid the fight against such patents and similar ip claims.

    Though I must admit I'm not too optimistic that it will necessarily turn out that rosy :-( Still, I don't see any moral ambiguity or double standard in my hopes.

    -Chris

    --
    San Francisco values: compassion, tolerance, respect, intelligence
  19. Consumer electronics kings vs. Microsoft by SysKoll · · Score: 4, Interesting

    I agree that software patents are a pain and are unethical.

    But it's interesting to note who is attacking MS here and in what context. Philips and Sony are two of the greatest consumer electronics companies on the planet. Sony is an archfoe of Microsoft since Redmond released the XBox. Several large Japanese companies recently made a lot of noise about standardizing on Linux for consumer electronics, which is pretty bad for WindowsCE. Some observers wondered if the goal of that publicity wasn't just to score a marketing point against WinCE.

    So this is the next episode in this war. This patent lawsuit is a single battle in a larger fight.

    Watch for more blows exchanged between MS and consumer electronics companies.

    -- SysKoll
    --

    --
    Mad science! Robots! Underwear! Cute girls! Full comic online! http://www.girlgeniusonline.com/

  20. One good thing about this result ... by rollingcalf · · Score: 4, Interesting

    Microsoft may now decide to harness some of its billions to lobby for laws *against* software patents.

    On the other hand, they may decide that they'll need to accumulate the most massive patent portfolio in order to have ammunition if faced with something similar again.

    --
    ---------
    There is inferior bacteria on the interior of your posterior.
  21. On the other hand.. by jav1231 · · Score: 3, Interesting

    Look, baseless claims are often made in IP cases. But who's to say that InterTrust didn't come to M$, layout it's proposals and say "This would be a good integration into your software" M$ says "We'll get back to you on that" and simply takes the idea and runs!? If that's the case, and it certainly is viable, then that puts a whole other angle on this. It certainly would be typical M$ fashion, no? JAV

  22. Re:Anyone remember STAC? by Peter+H.S. · · Score: 3, Interesting

    They had a bogus data compression patent that they successfully sued Microsoft over. The result was that Microsoft bought out Stac for something like $120 million and incorporated the Stac algorithm into Disk Doubler.

    Quarterdeck STAC wasn't bogus at all. It actually worked, while Disk Doubler was nothing but trouble. AFAIK, the lawsuit wasn't about patents, but that MS had verbatim copied code from STAC into DD.
    Se eg. http://www.newsfactor.com/perl/story/12684.html

    MS never bought Quarterdeck (of QEMM and Desqview fame). MS hated Quarterdeck with a passion, probably because of Desqview.

  23. They had that option. Burn M$, burn! by twitter · · Score: 3, Interesting
    Microsoft will simply license the patent. There is no way that they would allow themselves to be prevented from shipping product

    They could have done this from the start, but it's obvious that the company with a patent on a "secure operating system" has no respect for other people's "intelectual property". How absurd it was for them to argue that Intertrusts patents were, too vague to be enforceable, and that others required such narrow interpretation that they would have been hard for Microsoft to infringe.

    One thing's for sure, neither Microsoft nor patent law can win. Without strong patent law, Microsoft will fall to superior free software. If Microsoft wins, patent law suffers. If they lose, they can be ruined and that would be shocking. It would be better for Microsoft to lose.

    The absurdity of patent law must be demonstrated and this is a great way to do it. Patent law has worked to the disadvantage of others and should work to Microsoft's disadvantage too. Microsoft's defeat and ruin by forgein firms might just shock the US population into examining and overturning the laws that idiots like Bill Gates pushed for. Sony and Philips have invested more than half a billion dollar in this 30 person firm and patent portfolio. It is right and fitting that Microsoft be destroyed by the laws they helped create and then used to abuse others. It will be sweeter still if their destruction leads to the end of software patents.

    Who am I kidding? Microsoft is going to win, patent law will continue to be available to the hightest bidder and US courts will still be the finest money can buy. It will be interesting but I'm not going to hold my breath.

    --

    Friends don't help friends install M$ junk.

  24. Re:No, and you're assuming facts not in evidence by angio · · Score: 4, Interesting
    > Almost all software patents are for stuff that's obvious

    As one of the named inventors on a pending software patent application, I call BS on this. The patents you usually hear about, particularly on Slashdot, are bad. But that doesn't mean that "almost all" software patents are for stuff that was obvious when they were filed. In 1999, was the use of stego to encode digital watermarking information really obvious? The first academic conference on stego-related issues wasn't even created until 1996. I know some of the people who worked at Intertrust during its heyday - and they're damn smart crypto and security researchers. Look at some of the research papers from Intertrust. If you know anything about security, you'll recognize some very good computer scientists in there. Martin Abadi invented the logic used to analyze security protocols. Robert Tarjan quite literally wrote the book on advanced algorithms and data structures.

    Now, contrast that with something like "a patent on the use of a web server to sell things" -- well, duh. But a patent that describes the method by which you use the high frequency components of an audio signal to digitally watermark an audio sample? It sounds kind of obvious in 2003 because that's how everyone's doing it, but the technology was quite new five years ago, and Intertrust was doing some of the preeminent research on it.

    Don't blast all software patents because some are stupid. The system has a problem - a big one - but the fundamental concept of software patents isn't as silly as you might believe.