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Inventor of Optical Storage Gets Little Reward

Thu Anon Coward writes "This poor guy invented optical storage (CDs, DVDs) and never made a dime. Another case of an idea before its time and cheating a man of his due. To quote the article, 'Consumers will spend billions this holiday season on CDs, DVDs and machines to record and play the ubiquitous silver discs. But the inventor of the underlying technology won't make a cent. Today, Russell does consulting from a lab in the basement of his Bellevue home to keep in the game and supplement a modest pension from Battelle.'"

39 of 362 comments (clear)

  1. a penny for your CD? by emptybody · · Score: 4, Insightful

    send him a penny for each CD you have.
    its more than the RIAA would give him.

    --
    comment directly in my journal
  2. Remember kids by Anonymous Coward · · Score: 5, Insightful

    Strong IP protections are necessary because if it weren't for monetary benfits ensured to corporate research labs, we wouldn't benefit from the inventions they create!

    Right? ....Right?

  3. Ripped off by rost0031 · · Score: 2, Insightful

    That really does suck especially when Amazon can patent 1-click stuff. This guy actually changed the face of entertainment, technology, and storage. Not a penny? That really does bite.

    1. Re:Ripped off by GGardner · · Score: 5, Insightful

      How much "royalties" does the coder who implemented 1-click get, do you think?

    2. Re:Ripped off by Krach42 · · Score: 4, Insightful

      There have been a number of people who patent really good ideas (for instance, self-contained cartridges for bullets), but the companies just wait for these patents to expire if the person isn't willing to be "exploited".

      The do this, because even if the person *could* extend the patent, they can't, because they're not making money from the invention, so it's usually just as good to throw the money into the toilet as to renew a non-income-generating patent.

      Patents protect people with money, and companies with money, don't think much of anything else. Otherwise, they'll usually just wait out a patent. It's in their interests. Spend tons of money now, or wait until the patent expires, then you can get it yourself, because the plans and ideas are then public domain.

      --

      I am unamerican, and proud of it!
    3. Re:Ripped off by RalphSlate · · Score: 2, Insightful

      Speaking only for myself, I much prefer my $45 / hr coding job to the $20 / hr I could have made had Goodyear not moved those prized tire manufacturing jobs from my hometown (Akron, Ohio).

      There are two problems with that. First, we didn't create enough "coding jobs" for all the people who were displaced from the other industries that we shipped overseas, and second, you make the presumption that every factory worker is capable of coding. They are not.

      The blacksmiths said the same thing... Guess what, we automated their jobs and later offshored them, do you honestly believe we would be better off with the old way?

      You're making a grave mistake. You're using the advantages of automation to justify offshoring. They are two very different things.

      Automation is pure innovation. Automation occurs gradually, as a series of small steps. People can react to it. And many people in an industry still have a chance of competing when their job gets automated, because their industry knowledge is useful in the new automated world. And innovation plainly occurs when automation takes place.

      Offshoring does not create anything new. It creates no innovation. I would say that offshoring inhibits innovation. There is no longer the pressure to lower costs to stimulate innovation. Simply simply moving the work to a cheaper workforce relieves that pressure.

      I also believe that the entire country would be better off if there was a range of jobs across all skill sets that paid well enough to live. My grandfather was able to earn a good enough living in a factory to build a house and to send his kids to college without a high school degree (which he couldn't get because his parents were farmers). No such jobs exist today. The leaders of this country need to realize that their economic system is designed to doom a large percentage of people to poverty and hopelessness. When that has happened other countries, revolutions occur.

      Comparative Advantage has shown itself to be true over and over for nearly 200 years

      Comparative advantage was theorized in an era where there was not instant mobility of capital. And comparative advantage has a caveat; the trade is supposed to be mutually beneficial. The trade that is being practiced is largely only beneficial to a small group of people controlling it. I'm still paying $80 for shoes that are now made in China, the same as I used to pay when they were made in Maine. But I'm now paying more taxes to support the laid-off shoemakers in Maine too. I don't see how I'm winning there.

      Comparative advantage has this nasty little habit of destroying people and places. One only has to look within the US to see the damage it has done - when manufacturing moved from the Northeast to the South, the Northeast was left with poverty that it has not yet helped to this day.

      Comparative advantage is more about cost avoidance than it is about lower costs. Comparative advantage lets companies escape the repercussions of their activities. They couldn't avoid them entirely when the escape was merely within the US - the federal government ensured that. But with no world government, corporations are free to do as they please, pitting groups of people against each other with no referee. No wonder companies are rushing to the global playing field.

      This country has been declining ever since it has become easy to move goods across the world relatively easily. While this has made everyone's standard of living rise, it has also increased the gap between the poor and the rich. And as it becomes easier to move capital and goods to the lowest bidder, our way of life gets worse and worse, except for the small group of people controlling the flow.

      I haven't exactly seen the demand for US goods increase in countries that have been doing work for the US for dozens of years. Just how long should we sit back and wait for the "benefits" of unfettered trade to materialize? We have waited so long that this is

  4. and if he would have patented it by hsmith · · Score: 5, Insightful

    and sold the rights, /. would curse him

  5. Good, bad, ugly... by Saeed+al-Sahaf · · Score: 5, Insightful

    OK, so in THIS case patents are BAD because someone else is making bank on this guys IP, but could have been GOOD if this guy had protected his IP, but than he and his patent would be BAD because he would have been making bank on his IP...

    --
    "Who are in control, they are not in control of anything - they don't even control themselves!" - Glen Beck
    1. Re:Good, bad, ugly... by Znork · · Score: 4, Insightful

      That's the entire problem with patents. They could be good for inventors. In theory. But the theory is wrong and it doesnt work out that way.

      Had he had the patent himself he wouldnt have been able to afford to file a lawsuit anyway. He'd be squashed like a bug by some large corp. His only chance would be to sell the patents to a litigation company, in which case he'd get a miniscule amount again...

      Patents do not make money for inventors. They make money for lawyers and they protect monopolies and oligopolies against inventors.

  6. Justice?? by travisco_nabisco · · Score: 3, Insightful

    This poor man gave us portable mass storage, in a form previously undreampt of, and now, most people don't even know who he is. Where is the justice in this world?

  7. Simple fix by Turn-X+Alphonse · · Score: 4, Insightful

    Put a 5p (3c) tax on every CD and DVD sold from this date and all of it goes to him. He could live off that easily.

    Hell to the RIAA the grand total would be less then they're spend on lawyers to sue little girls each week.

    --
    I like muppets.
    1. Re:Simple fix by Elwood+P+Dowd · · Score: 4, Insightful

      And then we'd be paying twice: once for his patent, and twice for alms.

      Should we make special laws for everyone who makes business mistakes?

      --

      There are no trails. There are no trees out here.
  8. Self-Gratification by pegasustonans · · Score: 5, Insightful

    He does get the self-gratification of having created something revolutionary. Not that that pays the bills, of course. He should be rewarded more than he has been, but isn't it also good that optical storage development has moved quicker without some of the restrictions it might have faced had the patents been effective forever?
    I'm not saying that patents are bad, but I also think it's good that they have limits. And I still think this guy should get more recognition.

    --
    And all our yesterdays have lighted fools The way to dusty death. --Will
  9. Seat belt inventor the same by Anonymous Coward · · Score: 4, Insightful

    The story of the guy, who invented the seat belt is the same.

    NONE of the safety concerned car manufacturers were willing to pay a dime to use seat belt, as long as they would have to pay for it. The year after the patent expired, suddenly everybody buckled up.

    I am not sure which is worst, the patent system or corporate greed.

  10. Re:Moron by spac3manspiff · · Score: 2, Insightful

    Jim Russell was just stupid.

    It's apparent that he simply doesnt care for the business aspect of his work. Thats not a bad thing because it allowed him more time to focus on more productive things.

    It would be a hugle gamble in spending the time/money in battling Sony and Phillips in court.

  11. It goes to show... by jd · · Score: 5, Insightful
    Patents and IP don't protect inventors, who have neither money nor time to go messing around with patents. (The more time you spend with bits of paper, the less time you've got to spend with actually doing something.)


    What it proves is that patents protect the fist to patent, even if there's "prior art". (If "prior art" counted, then the patents should never have been awarded, as this guy had working systems prior to the "invention" by the corporations who held the patents.)


    The ones with time and money are generally not the ones working their asses off doing the inventing. They can either sponge off their R&D workforce, or they can sponge off other inventors. The latter is cheaper, as they don't even have to pay wages, then.


    The research for patents is expensive and time-consuming. If your next meal depends on coming up with another idea and selling it, you probably aren't going to have either time or money to spend.


    Let's face it. The system is broken. Seriously broken. I don't know how best it could be fixed, but something needs to be done before it destroys the entire inventing subculture altogether.

    --
    It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
    1. Re:It goes to show... by Anonymous Coward · · Score: 1, Insightful

      Sure, there are a lot of good lawyers out there. They defend innocent people, they prosecute criminals. They help draft contracts, they help decode the contracts their buddy wrote back into english.

      Then there are the bad ones, that go out and chase ambulances, inflate damages into the millions so they can draw a % cut of award instead of an hourly rate or salary. The bad appples turn the whole bunch rotten. Since your fellow attorneys resist disbarring the bad bunch, you have about as much legitimacy as the "pro"lifers who refuse to "out" the various people who shoot up or bomb clinics, or mainstream Islam who refuses to condemn the fatwas issued by bin Laden. Or the doctors who kill person after person, get slapped with tiny fines, but even after being sued for malpractice dozens of times a year, somehow never manage to get their license stripped from them.

      If you want to be "not bad people", then your "people" need to shape up and act like it.

  12. Slashdot swings both ways by Control+Group · · Score: 5, Insightful
    You know, we complain when a company exerts market influence via patents...then we complain when a patent isn't enforced...I sense a logical inconsistency, here.

    Let me put on my "surprised" face.

    --

    Reality has a conservative bias: it conserves mass, energy, momentum...
    1. Re:Slashdot swings both ways by admiralh · · Score: 4, Insightful

      There's nothing logically inconsistent about the stances given the circumstances.

      Case 1: Company buys up many questionable patents for next to nothing, then hires a squadron of patent attorneys to try to extract royalties from whomever doesn't have the time/energy/money to fight them.

      Opinion: Questionable patents bad - companies greedy/stupid.

      Case 2: Inventor creates well-deserved patent which leads to multi-billion dollars of business for many companies and does not receive a cent of royalties, due to bad/greedy decisions by corporate management.

      Opinion: Well-deserved patents good - companies greedy/stupid.

      Where is this logical inconsistency again?

      --
      Hopelessly pedantic since 1963.
    2. Re:Slashdot swings both ways by AlXtreme · · Score: 2, Insightful
      Logical inconsistency? This article shows that patents don't work when it comes to protecting a 'real-world' invention. They sure as hell don't work when it comes to protecting virtual ones.

      If this article underlines anything, it's that patents are flawed. Do you want to make money from an invention? Make sure you have the business know-how to make money by exploiting that invention.

      Patents didn't work for this lad or the Wright brothers, patents work for IBM, Microsoft, Sony, Philips and the like.

      --
      This sig is intentionally left blank
    3. Re:Slashdot swings both ways by werfele · · Score: 1, Insightful
      The article talks about him reading bits back of an etched piece of glass - which is pretty far away from a modern CD or DVD.
      . . .
      The article talks about him reading bits back of an etched piece of glass - which is pretty far away from a modern CD or DVD.
      The technical merits of his invention are irrelevant to his legal claim. The intellectual property of his works-for-hire would belong to his employer, unless he had a contract specifying otherwise, which would be extremely unlikely, and which the article suggest was not the case. The article establishes that his employer sold those rights, so neither he nor his employee had any rights to the invention at the time things got interesting.

      I don't think he could have found a pro bono attorney to help him, given that he sold his rights to the invention when he accepted his paycheck.

  13. Sad, understandable by Bronz · · Score: 5, Insightful


    First -- yes, these stories are sad. But what about the flip-side? Here's a creative soul who was gainfully employed to pursue his own imagination. He was paid to be creative. The problem was his creativity wasn't bound by the context of viability ... by what is currently applicable. The patents were sold cheaply because there was no immediate use for them.

    This sounds harsh, but the way I see it he got paid to dream. Monetary compensation is only one way of keeping score and from my perspective this man is richer than most.

    Which begs the question -- did he lose salary for every failed invention? He probably had a lot of hair-brained flops in his tenure ... and I don't see mention on how those things that didn't develop should be compensated by himself just as any success is immediately rewarded.

  14. Double standard by Have+Blue · · Score: 2, Insightful

    We're expected to feel sorry for this person who failed to retain full control of his intellectual property? We see the opposite situation all the time- people and companies go to great lengths to control their intellectual property. And we laugh in their face and actively thwart their efforts. What would you think of this man if he had cemented his position as the owner of optical digital storage and charged royalties from everyone for its use? If the Sorenson codec algorithm had slipped out onto the open market through a similar process?

  15. Re:Moron by 99BottlesOfBeerInMyF · · Score: 5, Insightful

    Just fucking patent everything you invent and only after that decide what you're going to do with it.

    I agree. In fact everyone should just pay and go to law school for a years so that they can easily patent things themselves, and defend their rights. Also, everyone should inherit millions so they can afford to pay a team of high priced lawyers to fight on their behalf all the time. This idiot did not only not go to law school, but he did not inherit any money. I mean what was this idiot doing trying to invent something new? That is just stupid. Everyone knows it is easier to just patent something obvious then use your lawyers to intimidate people who can't afford to pay legal fees to fight you.

    Does anyone care to point out any times the patent system has helped to foster innovation or protected the little guy in the last 10 years? If you did not read the article maybe you missed the part of the article where they state the patent was owned by the lab where he worked, and then transferred to a startup after the lab could not afford to fight the big companies in court. The startup eventually won in court and did make money, but not before they laid-off the inventor of the tech they were making money on. Here's an idea that might be useful, lets make patents only available to people, not companies. That way they can protect inventors, and not be used to suck money out of people who actually innovate and make things. Then we could finally get those flying cars they have been showing in movies about the future for the last hundred years.

  16. Give me a break! by theREALMcCoy · · Score: 2, Insightful

    what, now the govt's in the business of fund raising for poor saps?

  17. Re:Moron by ePhil_One · · Score: 2, Insightful
    So are we pro-IP or anti-IP this week on Slashdot?

    This is determined on an article by article basis here on Slashdot.

    Entertainment industry IP - BAD
    Software Industry - Two categories
    Open Source IP - GOOD
    Closed Source IP - BAD

    Confused? Don't be. Just apply this simple formula:

    My IP - GOOD
    Your IP - BAD

    Above all, remain blind to to conflicts created by your positions.

    --
    You are in a maze of twisted little posts, all alike.
  18. Edison? He didnt invent the lightbulb. by rufusdufus · · Score: 5, Insightful

    Thomas Edison is analgous to the head of the sony division that used Russel's patent at Sony; he did not invent the lightbulb.

    When you look close at the history of technology, as an American you might find out how much hyperbole there is in the idea that "Amercans invented almost everything." The truth is more like we claimed credit for everything.

    1. Re:Edison? He didnt invent the lightbulb. by ploppy · · Score: 3, Insightful
      When people say "Edison invented the light bulb", they mean "invented the oxygen-free sealed glass globe with an incandescent filament inside".

      Even on that definition Edison didn't invent the light bulb. Joseph Swan did.

      So now we finally have a light bulb. Invented by Edison. In the US.

      Nope. So we finally have a light bulb. Invented by Swan. In Britain.

  19. Re:Pussy geek by 99BottlesOfBeerInMyF · · Score: 2, Insightful

    This Russell guy is just a fucking pussy geek

    An anonymous coward calls someone a pussy? Look in the mirror coward. He never had the rights, just a share in a company that did. Legally, he had little or no recourse, and at the time no lawyer would have thought it was going to make any money. Nakamura may have won his case, but not before he was making good money at another job. He also won in the Japanese court system, not the U.S. Get a clue.

  20. ... never made a dime ... by Greg@RageNet · · Score: 3, Insightful

    never made a dime

    Yes, as an employee of Battelle I am sure he was compensated for his time working in their lab. He made whatever he negotiated as a salary.

    Oh, nevermind, I fell off the corp-bashing bandwagon again. corp bad, tree good, unless the tree is a bush, then it's bad. Somebody get this guy some socialized healthcare or something!

    -- greg

    --
    Slashdot, would a spell-checker for posting be too much to ask? It's not rocket science!
  21. RTFA by Anonymous Coward · · Score: 2, Insightful

    He states he didn't get a penny, but in the article it states that he was hired to develop this "far out idea."

    I might be mistaken, but when you are hired by someone - they usually pay you a salery.

    Anything you create while on the clock is property of the company you work for. If I program a nifty spam cathing program while at work, even though that isn't one of my projects, that program is property of the company. But this guy was hired to research this specific idea, as well as others.

    What would be the point in a company hiring researchers and developers if the employees themself held the patents? What reason would Pfizer have to research any new drugs if the people they were paying to do the research could patent the IP and take it with them to their own startup company?

    Sorry, the guy did get paid. It is obvious that if the companys involved didn't spend a significant amount of capital investing in his ideas, he could not have done this on his own.

    Again, RTFA.

    1. Re:RTFA by Qzukk · · Score: 2, Insightful

      Sorry, the guy did get paid

      Did he? Sounds more like the guy got had.

      What if I came by and spotted your family heirloom dinner table, told you I recognized it as a very fancy piece of furniture and that I'd pay you $40,000? (Lets assume that you have no job, and therefore need the money more than you need the table.) Then it turns out it was actually the table George Washington ate from, and that I knew it at the time, and that its actually worth several million dollars?

      You'd think you had been had too.

      How is that different from a company looking for a person with particular ideas and offering that person a pittance (remember, this was pre-dot-com days, he probably drew $45-$60k/yr, and his pension would be a fraction of that) for ideas they clearly knew would be worth millions?

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
    2. Re:RTFA by ChickenAintDone · · Score: 2, Insightful

      Well I'd say it's one part knowledge, and three parts cutthroat business ethics.

    3. Re:RTFA by the+angry+liberal · · Score: 4, Insightful


      What if I came by and spotted your family heirloom dinner table, told you I recognized it as a very fancy piece of furniture and that I'd pay you $40,000? (Lets assume that you have no job, and therefore need the money more than you need the table.) Then it turns out it was actually the table George Washington ate from, and that I knew it at the time, and that its actually worth several million dollars?


      WTF does this have to do with: "Here's $40k/year, now come up with something that will make me millions?" -- If he had invented it in his spare time, off company property, not using company resources at all, then I could see the debate. Rigth now, this just sounds like more /. self-victimization where the little guy is always right and the big company is always wrong.

      He was contracted to do what he did and got paid for that. Perhaps once you guys get jobs and move out of your parents basements, you will understand the business world a bit better.

      This is kind of like if one of the doctors involved with research of a cancer drug came out nearing the end of the patent life of said drug saying "I made this all by myself!", when it was, in reality, a collective of many doctors.

    4. Re:RTFA by nwbvt · · Score: 2, Insightful
      "What if I came by and spotted your family heirloom dinner table, told you I recognized it as a very fancy piece of furniture and that I'd pay you $40,000? (Lets assume that you have no job, and therefore need the money more than you need the table.) Then it turns out it was actually the table George Washington ate from, and that I knew it at the time, and that its actually worth several million dollars?"

      Well for starters, that is a horrible analogy as according to the article, it sounds like he was doing pretty well. Assuming your 45-60k estimate is accurate, that was a lot of money back in the 60's. And there is no way you can argue the company they origionally sold the patent to (which then went bankrupt) knew that CDs and DVDs would become a major success story.

      Plus in that case you would be paid, so the gp was correct.

      --
      Mathematics is made of 50 percent formulas, 50 percent proofs, and 50 percent imagination.
    5. Re:RTFA by LaCosaNostradamus · · Score: 2, Insightful

      What would be the point in a company hiring researchers and developers if the employees themself held the patents?

      Er ... that crazy, nutty idea that you should pay for what the idea is worth.

      The concept that a person owns an idea is as artificial as the concept that you own anything said person produces just because you pay him ... so the moral concept devolves into "who really came up with the innovation?". The answer is "the researcher AND the company" who did the work ... hence both should own the idea and profit thereby.

      Any Republican will follow this argument ... however, it does lead to that nasty, logical result of actually paying non-elite individuals on the level of what the elite get now (i.e. paying researchers some of the millions that a patent allegedly gathers from market action). And that's where you trip over yourself in your posting.

      If people were paid even ONE PERCENT of the net profits from the use of their morally-patented work (i.e. the work they essentially innovated), then the system would be much more fair, and would undermine any argument that liberal-leaners like myself might make. But corporations don't even want to pay that 1%. They want it all. And even when getting it all, they connive to change the law to continue getting it all, even more than all. 100% wasn't good enough. They want 110%. And that's just immoral, antisocial greed, Sir. Very immoral indeed.

      --
      [You have a stable society when some nut guns down a schoolyard and the law doesn't change.]
  22. company owned or inventor owned? by Anonymous Coward · · Score: 1, Insightful

    I guess the company he worked for owned this technology since he invented this as part of his job and using his company's money/equipment.

    If you sell of the rights to something or do a work for hire, you have been paid in full for it.

  23. Inventor was the company, not the person by AHumbleOpinion · · Score: 3, Insightful

    Case 2: Inventor creates well-deserved patent which leads to multi-billion dollars of business for many companies and does not receive a cent of royalties, due to bad/greedy decisions by corporate management. Opinion: Well-deserved patents good - companies greedy/stupid. Where is this logical inconsistency again?

    Well we could begin with the fact that you completely misrepresent the starting conditions. Did you read the article? He did not develop the technology on his own, this was not a garage inventor. He was an employee doing research on company time on company equipment. The company, Battelle, owned his work and they got just as "screwed" as he did. Your "bad/greedy" characterization is naive. Good ideas are not enough, you need the resources to turn the ideas into products, and some good luck. A more realistic characterization was that the idea was too far ahead of its time.

  24. Never made a dime? by siljeal · · Score: 2, Insightful

    never made a dime

    Is that so? Was he working for free? I would assume that he was being paid for his work, and so I don't really see the problem. That he could have milked the system is really just an assumption that's built on the silly notion that every producer (especially foreign producers) will honor your patent, use the technology covered in the patent and pay fees. And we know that this is not always the case. The companies could avoid the patented technology or decide to use the technology and take the legal risks of not paying up.