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HP Pays Intergraph $141m to Settle Patent Dispute

foxed writes "HP has settled a patent dispute with Intergraph. Intergraph claim the caching in Intel's Pentium processors violates their patent. Intel, AMD, Dell and Gateway made similar settlements last year."

38 of 224 comments (clear)

  1. Which Patent? by moshez · · Score: 2, Insightful

    Does anyone know which patent it actually was, just so we can look at it and see how idiotic it is?

  2. Small OEMs by iamthemoog · · Score: 4, Interesting

    I'm a small OEM and have shipped a few intel processor based machines... Am I liable to pay a fine too?

    Not had the bill yet, if so....

    --
    No Norm, those are your safety glasses; I'll wear my own thanks...
    1. Re:Small OEMs by gowen · · Score: 2, Informative
      I'm a small OEM and have shipped a few intel processor based machines
      No. You should be protected by
      section 2-312 of the Uniform Commerical Code.
      Unless otherwise agreed a seller who is a merchant regularly dealing in goods of the kind warrants that the goods shall be delivered free of the rightful claim of any third person by way of infringement or the like...
      Thanks to an anonymous coward who pointed this out to me.
      --
      Athletic Scholarships to universities make as much sense as academic scholarships to sports teams.
  3. What is the legal basis for this? by nagora · · Score: 2, Interesting
    Did HP have anything to do with the design of the cache in the Pentium? If not, why are they paying anything? Surely it's up to Intel to pay royalties on patents they breached, not their customers. I particularly can't see any way Gateway could have been liable for this.

    TWW

    --
    "Encyclopedia" is to "Wikipedia" what "Library" is to "Some people at a bus stop"
    1. Re:What is the legal basis for this? by lars_stefan_axelsson · · Score: 4, Informative
      Did HP have anything to do with the design of the cache in the Pentium? If not, why are they paying anything? Surely it's up to Intel to pay royalties on patents they breached, not their customers. I particularly can't see any way Gateway could have been liable for this.

      That's not how patents work I'm afraid. In the words of the USPTO:

      The right conferred by the patent grant is, in the language of the statute and of the grant itself, "the right to exclude others from making, using, offering for sale, or selling" the invention in the United States or "importing" the invention into the United States. What is granted is not the right to make, use, offer for sale, sell or import, but the right to exclude others from making, using, offering for sale, selling or importing the invention. Once a patent is issued, the patentee must enforce the patent without aid of the USPTO.

      Note the word use in the text above.

      --
      Stefan Axelsson
    2. Re:What is the legal basis for this? by nagora · · Score: 3, Insightful
      Note the word use in the text above.

      But surely if the customer bought the product for resale in good faith the law can't be applied any more than I can be done for handling stolen goods which have somehow been sold through an legitimate retail outlet.

      Intent to break the patent must be part of the legal requirement in any sane system...oh, I see

      TWW

      --
      "Encyclopedia" is to "Wikipedia" what "Library" is to "Some people at a bus stop"
    3. Re:What is the legal basis for this? by LWATCDR · · Score: 2

      So if you ever sold a computer on ebay with a pentium you could bet hit?
      This is just dumb. Sorry but yes I can Intel needing to pay and maybe AMD but no one else.
      I wonder if they went after IBM?

      --
      See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
    4. Re:What is the legal basis for this? by lars_stefan_axelsson · · Score: 2, Insightful
      Another patent article that goes to show you that patents are weapons in the corporate portfolio in this day and age.

      Yes, I've written many posts here that drives home the point that patents today are there to exclude the small players from the market. The big guys have enough patents to achieve patent 'MAD - mutual assured destruction'. Obviously that didn't quite work here, which is a bit surprising. The problem is probably that intergraph doesn't actually do much, and hence cannot be scared away by a HP's patent portfolio.

      --
      Stefan Axelsson
  4. Intergraph's Patents by gowen · · Score: 5, Informative

    Intergraph's patents are numbers 4,899,275, 4,933,835 and 5,091,846.

    Just don't ask me what any of that means...

    --
    Athletic Scholarships to universities make as much sense as academic scholarships to sports teams.
    1. Re:Intergraph's Patents by gowen · · Score: 5, Interesting

      Having now read them, albeit briefly, I *think* that Intergraph's novel idea is a neat way of merging the onboard cache and the MMU.

      Hate to rush against the tide, but that's a really great idea, that no-one prior to Intergraph had managed to come up with. It's also an actual invention, rather than just an algorithm, or an algorithmic expression of well-known mathematics.

      I can't see any great problem with these patents, and welcome our new cache-management overlords.

      --
      Athletic Scholarships to universities make as much sense as academic scholarships to sports teams.
    2. Re:Intergraph's Patents by gowen · · Score: 4, Informative
      computer chip design isn't notable enough in their list of products to actually be included in such a short little blurb. So they patented an idea outside their main field... for what reason?
      Because they used to design chips, but stopped in the mid-1990s. These patents date from 1992, when Intergraph were a chip designing company.
      Problem is that Intel and company did not license and probably did not dig through the patent library to find this idea and benefit directly from Intergraph's research/think tank.
      Actually, they did (or at least it's likely that they did). Intel and Intergraph worked very closely in the 1990s, and both shared IP under NDAs. Shortly after they stopped co-operating (1997) Intergraph sued Intel, and although Intel dragged it out for 6 years, Intergraph absolutely creamed them in court.
      --
      Athletic Scholarships to universities make as much sense as academic scholarships to sports teams.
    3. Re:Intergraph's Patents by rfreynol · · Score: 3, Informative

      Actually, Intergraph has a long history of chip and hardware design. They started out as a contractor on the Apollo program and by the 1980's were producing their own VERY power Unix workstations and servers running on their CLIPPER chip.

      They did their own Chip design and even did some work on the SPARC for Sun.

      Unfortunately, they were also run by a bunch of geeks that didn't know squat about business. That, coupled with them giving up on the Unix market for Windows NT back in 1993 (about 2 years too early) caused them to take quite a fall.

      In the process of moving to a Wintel platform, they worked closely with Intel and that is where they got entangled. Intergraph needed Pentiums (and lots of them) to power their workstations and Intel tried to strong arm them into turning over some of their technology. I can assure you that the cache/MMU in the current Intel chip line did in fact come from Intergraph.

    4. Re:Intergraph's Patents by SenorChuck · · Score: 2, Insightful

      Parent: +1, Insightful.

      Although this may not be an example of a submarine patent, it certainly isn't acting for the public interest. I entirely agree with you regarding the approach taken to extracting money from violators.

      I'm fully expecting the trolls to come out and complain about all of the whiney bleeding-hearts and how life isn't fair, but think about it. Why isn't life fair? Because there's always someone out there wanting to screw over others for their own benefit. If our society were such that more for self was not the highest motivation, problems like these would be drastically reduced. Then again, maybe I'm being overly idealistic.

      --
      A wise person makes his own decisions, a weak one obeys public opinion. -- Chinese proverb
  5. Fire chimpzenpuss by ceeam · · Score: 3, Interesting

    Who the fuck cares? I'm sure there are better topics in submission queue. And BTW - it is daytime in Europe now. There's been no much stories since early morning here. Is /. only for Californians? Really - OSDN - implement a stories selection/voting public process like for comments and fire the "editors" like the one in subject. (Mod at will).

    1. Re:Fire chimpzenpuss by R.Caley · · Score: 2
      Who the fuck cares?

      People with jobs?

      I'm sure there are better topics in submission queue.

      Let's see, here is a story which has direct implications for the livelihoods of nerds everywhere. OTOH, there are such important stories as `intel launches what we knew they were going to launch and someone has some pictures of laptops which look just like every other laptop you ever saw'. Or there is the 2.5 year old science story which presumably exists because National Geographic has some space to fill, my god, that one made me glad I check /. in the morning.

      --
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  6. Does this extend to other fields? by esapersona · · Score: 2, Interesting

    The article says that Intergraph is suing HP et al. for selling products that contain a product that infringed upon the patent (Pentium Processors).

    How about in other fields, such as food.

    A farmer accidently grows patented/copywrited (GM?) corn in his field. Sells it to a cereal company that turns it into corn flakes. Can the corn seed patent owners sue the cereal company? How about the baker that is making stuff using the cereal company's product?

    1. Re:Does this extend to other fields? by JCMay · · Score: 4, Interesting

      The answer is of course, yes, they can be sued. Patents, as others have said, protect not only the PRODUCTION of the patented idea, but the sale and use of it as well.

      There's been lots of concern over patented crop varieties for just such issues. Farmers normally save seeds from one year to plant the next. Farmers that use patented varieties have to abide by the licenses, which always stipulate that saving seeds is not allowed. The next door neighbor farm does not buy the patented seed, but due to the prevailing winds his fields cross-pollinate with the plants that are of the patented variety. He saves his seeds for next year and then becomes liable when his cross-pollinated crops contain the patented genes.

      I never said I agree, but that's the way it works in the United States.

  7. Patents and monopolies are evil by antivoid · · Score: 3, Interesting

    Im not trolling... But seriously, patents need to be banned. It's crippling the IT world.

    In my country, there is a phone company called telkom. They make BILLIONS in profit every year. The reason for this is that our government has granted monopoly rights to the phone company. It sucks!

    The reason they grant them monopolism is because 80% of the government has shares in the damn company, causing the rest of the country to be screwed as a result.

    Patents are the same - the hurt local and global economies by enabling monopolism.

    1. Re:Patents and monopolies are evil by Znork · · Score: 2, Interesting

      "Without patents there would be LESS innovation."

      Can you cite research validating that claim?

      Can you cite research validating that claim for specific fields? For specific lengths of protection periods? For average product cycles? For average patent development cost in a field?

      Take a look at the Intergraph patents here. They've had those patents for more than 10 years without enforcing them. In fact, they didnt start enforcing them until their hardware buisness had already failed. Had they tried enforcing them while they still had a hardware buisness they'd have been litigated into the ground by other companies holding patents.

      Can you come up with a credible explanation how the patents motivated those 'innovations'? Were they thinking 'Oh, I know, lets develop this cache stuff for our new processors, then not produce them, change focus and litigate!'?

      Or were they in fact already going to spend the money for the research in the hope of making their products competetive, and the litigation is just an economic drain by vampiric lawyers on companies actually producing new technology.

      I'd posit your theory is _wrong_. Patents have become a burden on actual innovators, slowing innovation, and a benefit for noone but lawyers.

    2. Re:Patents and monopolies are evil by gowen · · Score: 2, Informative
      They've had those patents for more than 10 years without enforcing them
      Untrue. They sued Intel in 1997.
      Oh, I know, lets develop this cache stuff for our new processors, then not produce them
      They tried to produce them in association with Intel, but Intel screwed them over. So Intergraph sued, and Intel then tied them up with lawyers for 6 years.
      --
      Athletic Scholarships to universities make as much sense as academic scholarships to sports teams.
  8. Re:How is HP reliable? by Arimus · · Score: 2, Insightful

    HP is very reliable... look at their reputation for scientific instruments etc.

    As for how HP is LIABLE :> that's another matter. I would guess (INAL) that the arguement goes HP used Intel Pentiums. Intel Pentiums violated the patent. HP should have checked before using the Pentiums if any such violations etc existed - any if they did and intel said no then liability would pass to intel - if they didn't then they're liable for not carrying out due diligence.

    --
    --- Users are like bacteria -> Each one causing a thousand tiny crises until the host finally gives up and dies.
  9. More than just a settlement by QMO · · Score: 3, Interesting

    FTA: "Under the deal, HP has a license for all Intergraph patents for any use, while Intergraph has access to HP patents in specific fields in which it has products."

    It seems that HP paid for more than just a dropped lawsuit. They also paid for the use of a lot of patents.

    --
    Exam 4/C again. Maybe I'll do better this time.
  10. Re:How is HP reliable? by gowen · · Score: 2, Funny
    HP is very reliable... look at their reputation for scientific instruments
    ... not to mention their excellent brown sauce.
    --
    Athletic Scholarships to universities make as much sense as academic scholarships to sports teams.
  11. Short answer: YES by FreeUser · · Score: 4, Insightful

    The short answer is yes (IANAL but I read groklaw :-))

    My understanding, from everything I've read, is that patent holders can sue ANYONE making unauthorized use of their patent, from the manufacturer down to the end user. Mostly they go after manufacturers and resellers (note that some of those who settled with the holder of this particularly noxious patent were Intel RESELLERS, not chip manufacturers).

    This is one of the things that makes software patents even worse than most other patents (which are themselve a bad idea ... inventors don't need monopolies to exploit their ideas, monopolies are terrible for markets, and monopolies on ideas and invention any progress built upon those ideas or inventions) ... software users exist in almost every home, hence, like the new copyright extentions of the late 20th and early 21st century, patent lawsuits can be extended all the way down to a 12-year old using a program on her PC or Mac that violates some speculator's patent on [insert obvious idea here].

    Pro-patent lobbiest and apologists will argue that you can always go to court to overturn the patent with prior art if it is truly illegitamate (thereby neatly avoiding the entire point of how terrible patents are for anyone who cares about technological and human progress), and that's true as far as it goes ... until you look closer and realize that, on average, it costs $1 million dollars to overturn a single patent, an amount of money few mere mortals have, and most small businesses can ill afford. This cost makes even invalid patents effectively valid, as so few people and companies can afford the expense of correcting the patent offices negligence, and will be forced to pay the shakedown money (or cease using/making the software/device that allegedly infringes, or both) instead.

    --
    The Future of Human Evolution: Autonomy
    1. Re:Short answer: YES by freemacmini · · Score: 2, Insightful

      One of the greatest harms 9/11 did was to add "friction" to the economy. Companies now have to pay more to hire people (background checking), take less risks, buy more insurance etc. Of course companies in other parts of the world are already doing all that so this kind of leveled the playing field a bit.

      Patents add another layer of friction to the US economy. What this means is that in countries where patent lawsuits are discouraged and where patent litigation is less profitable will enjoy a competitive advantage.

      Now intel has 141 million less to spend on R&D, marketing, or manufacturing (or buying one of their board members an airplane). This might help AMD, this might help some manufacturer in another part of the world even more.

  12. From TFA by ceeam · · Score: 2, Funny

    "Intergraph said in a release that it expects to pay $11 million in legal expenses."..."The company created an intellectual property division in 2002 to protect its intellectual capital. Intergraph said that, since then, its IP protection and enforcement efforts have generated about $860 million in pre-tax income."

    I'm sure that "classic-style" racketeer division would've cost them quite a bit less.

  13. Re:Demand Tort Reform... by sangreal66 · · Score: 3, Insightful

    How is it frivolous? Are we supposed to be against mechanical patents now too?

  14. Re:Demand Tort Reform... by Anonymous Coward · · Score: 5, Insightful

    "We"??? speak for yourself. This is a discussion forum. Anyway.

    For what it's worth, as a trained mechanical engineer, yes, I for one AM against ALL patents. NO-ONE should have the right to stop you altering your own physical property, and selling it on in altered form, if you want to. If you want to "reward invention", then give inventors grants, don't restrict everyone else with patent monopolies just to please the few!

  15. Intergraph IP if anyone is interested by billwie · · Score: 5, Interesting

    Intergraph Patents all relate from their own custom unix architecture that they abandoned in the early 90s (suckered into windows/intel). Their first cases involved their claim that Intel was trying to strong arm them to get their IP... and I thought their claim was very valid. Unfortunately now they seem to have made a business unit that's sole purpose is to chase suspected patent violators. Some of their other products are quite useful (mapping and GIS) though, if overpriced and underhyped.

    check out http://www.intergraph.com/ip/cases.aspfor more info on the cases

    and

    http://www.intergraph.com/ip/tech.asp for info on how a software company ended up with all these hardware patents in the first place.

  16. HP sells PC's with Intel chips by HangingChad · · Score: 2, Interesting
    And HP has to pay a patent infringment settlement? That is seriously f'ed up.

    Our patent system is broken. Extortion by litigation has to stop. This is stifling innovation and crippling our economy. Absolutely, un-f'ing-believable.

    --
    That's our life, the big wheel of shit. - The Fat Man, Blue Tango Salvage
  17. Re:Demand Tort Reform... by R.Caley · · Score: 3, Interesting
    I can see one case where patents are perhaps justified in the 21st century, that is where we, through our agent the state, substantially increases the costs and risks of work in some area, and patents can offset that.

    The obvious candidate is pharmaceuticals, where (quite reasonably) we impose a massive regulatory load and delay development for years, and so make it much harder for someone to exploit a discovery or invention before it just becomes common currency.

    Obviously IT has no such problem.

    At the very least I think that the protection against independent reinvention should be reduced to some small, standard licencing fee. That would remove the more or less unbounded risk we are all taking every day now from the fact that some obscure and possibly insane patent might, properly interpreted, give someone else ownership of our work. That would seem to be a small, bounded change to the law which could be done quickly and nail 90% of the acute problem.

    --
    _O_
    .|<
    The named which can be named is not the true named
  18. Re:Demand Tort Reform... by Rakishi · · Score: 2, Insightful

    Research costs money, in some cases lot's of money. Patents guarantee that this money can be regained over time as part of the product cost. This prevents a competitor from directly copying your idea and selling it for less (they didn't have R&D costs).

    In other words, without patents companies have a lot less incentive to do any sort of expensive specific research since they have little chance of making money on it.

    Individual inventors would also be screwed since they also have little chance of making money of their inventions: a larger company with more money will simply copy it and sell it for less. Or maybe one of the inventor's investors or prospective investors will do it before the product is even in production.

  19. Re:Demand Tort Reform... by Ogman · · Score: 2, Insightful

    All I know is everytime you look around some company is suing some other company for some violation of ip or patent. Most of these suits seem to be aimed at stiffling innovation by competing companies and controlling progress until the original company is convinced it has milked the patent or ip for every single dollar the marketing department can acquire. Then, of course we see the company that has produced NOTHING during it's entire existence, save one thought scrawled on a napkin, and it thinks it should get millions (or billions) from companies that actually DID something with the same thought.

    Meanwhile, who do you think is paying for all of these lawyers? Do you think the CEO takes a pay cut to pay for the lawsuits? I think the cost gets passed on to the consumer. So, why is it that I should be in favor of stopping frivolous personal lawsuits and not equally frivolous and costly corporate suits?

    --
    But Officer, I DID read the f**king article!
  20. Re:Demand Tort Reform... by Steeltoe · · Score: 2

    "oh lets change the color of this widget." after color change "Great, now that we spent $5 changing the color, we can sell this product at half the cost of the company that spent millions researching it....oh goody"

    And if you don't think that could/would happen without patents, then you are sadly mistaken.


    It's called competition.

    What often happens is this:
    Company A patents all their ideas and inventions, down to the most absurd.

    Company B develops some similar technology with their own independent research (who can understand the text on patent-claims, or have the time to read the millions of bogus and unuseful claims? The directory of patents is only useful to lawyers.)

    Company B becomes successful for having a superior product.

    Company A sues company B for patent-infringement some years later. Company A is usually in a downturn at this point, with no good and proven products.

    How are patents productive to society? Company A would develop the technology some time or later, it's usually incremental changes in existing technology which are mostly patent-free and public domain.

    Software patents and litigations will kill an industry based on building and sharing on ideas. Where would programming languages be, or anything in this society, if everything was to be patented. Progress would slow down.

    And the small guy who wants to produce products are squeezed out, because lawyers are expensive.

    Compare this with that people will get ideas all the time, usually at different parts of the world at the same time. Patents will not make these ideas pop up any faster, only raise the barrier to implement these ideas.

    Big companies never produce any ideas by themselves..

  21. Re:Demand Tort Reform... by lars_stefan_axelsson · · Score: 3, Interesting
    Under your model, of no patents, what are you going to do to protect a company that spends millions of dollars and other resources (time) from the company that just waits to copy the idea?

    My first engineering job was at the research laboratory of SKF, so I know a thing or two about patents as they apply to mechanical engineering. Even then (this was in 1993) SKF was largely doing away with their patent section, on the grounds that you didn't actually patent what you were researching any longer, as that would just tell your competition what you were up to. This enables said competiton to lay a 'patent minefield' i.e. to get a few quick patents in to block your progress, while they gear up their own research to be able to follow (or even beat) you to market.

    Hence the battle cry was: "Short time to market". Not patents. With a short time to market you'll make your investement back before your competition is out of the starting blocks. And whey they get going, you've already run ahead, refining your offer, and (more importantly) got a grip (not to say lock) on the market. It's much more difficult to switch supplier once you've got going, than it is to go with the competition in the first place.

    I saw this happening before my very eyes as I was there. That was the period where SKF just made their CARB rolling bearing public after much secrecy. The CARB idea was not encumbered with any patents, in that case as the idea was from the thirties and the patents had already expired before the means of producing them were available. But the pundits said that it was still doubtful if they would have spent much effort in that area even if it hadn't.

    --
    Stefan Axelsson
  22. Re:Intergraph/Intel mirrors SCO/IBM by stilwebm · · Score: 2, Informative

    In Intergraph's case, Intel engineers were up against a wall circa the late 486/early 586 timeframe, and came to Intergraph for help. Intergraph opened their IP portfolio to Intel, taught the Intel engineers how to design a modern CPU, and Intel proceeded to steal the entirety of that IP portfolio - hook, line, and sinker.

    Intergraph knew very little about making CPUs. They used MIPS CPUs before moving to Intel. What they were good at, was making fast buses between memory, the CPU and peripherals. They made workstations that rendered 3D in real time, way before AGP came around. Intergraph partnered with Intel because they needed cheaper processors in their platform to compete. Intel needed better memory-cpu-peripheral buses. Intergaph was to help Intel if Intel would provided details about their processors so Intergraph could make high speed buses, primarily for 3D devices. Intel never provided access to their specifications, leaving Intergraph hanging, so they sued. Then Intel used technologies that Intergraph shared with them, so they sued on patent infringement as well.

  23. = $4 million USD in litigation to kill a patent by SgtChaireBourne · · Score: 4, Insightful
    Pro-patent lobbiest and apologists will argue that you can always go to court to overturn the patent with prior art if it is truly illegitamate (thereby neatly avoiding the entire point of how terrible patents are for anyone who cares about technological and human progress), and that's true as far as it goes ... until you look closer and realize that, on average, it costs $1 million dollars to overturn a single patent, an amount of money few mere mortals have, and most small businesses can ill afford.
    The figures mentioned at the FFII Software Patent Conference, Brussels 9-10 Nov 2004 were more in the ballpark of 4 million USD to shoot down an illegitimate patent. I'm not sure what the real figures are, but 1 million USD sounds cheap. However, whatever the cost, it will be neither cheap nor affordable for small or medium sized businesses. Unfortunately, in Europe, the large majority of revenue is generated from small and medium businesses.

    One thing that most articles miss is that software patents really screw anyone who even uses a computer, not just developers.

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  24. Re:How is HP reliable? by geoffspear · · Score: 2, Informative
    No, you're punished for knowingly violating a patent you knew about.

    They should have checked in advance, and then either not used the patented device, or demanded that their supplier indemnify them. Yes, it would be stupid to check for patents on a technology if you're just going to use it anyway.

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