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U.S. Firms Take on Australia's CSIRO Over Patents

dingram17 writes "ABC News is reporting that six U.S. computer companies (Apple, Dell, Hewlett Packard, Intel, Microsoft and Netgear) are taking legal action to try to break a U.S. patent that the CSIRO holds on wireless networking. The CSIRO has patents on OFDM technology, as used in 802.11a and 802.11g. It has been alleged that the CSIRO demands $4 per chipset for the use of this technology. It appears that the patent in question is U.S. Patent 5,487,069 'Wireless LAN.' From a quick look, this appears to be a wide ranging patent."

24 of 426 comments (clear)

  1. Wow.... by the_macman · · Score: 5, Insightful

    Simply stunning. So a company actually holds a legal patent to a technology they invented and since the big boys (Dell, Apple, etc) don't want to pay the royalties they try to legally "break" the patent. Does anyone else see something wrong with this? I hardly see these companies as the victim.

    1. Re:Wow.... by natmsincome.com · · Score: 3, Insightful

      The interesting thing in this case is that it wasn't paid for by "THE PEOPLE" it was paid for by another country.

      If by patenting it they can allocate more grant money in "THEIR" own country instead of the country were the patent was registered it will be better for "THEIR PEOPLE".

      I guest it all depend of weither you talk about poeple in the global state (in which case this is bad but people in america lose jobs to people in India is good because it raises the average standard of living globaly) or in the regional state (then losing jobs to another country is bad but this is good)

      Also how about another scenario, by patenting technology governments can increase the amount of money they can give out from Grants without increasing taxes. This would result in more technology (Grants generally focus on long term research whereas companys generally forcus on ROI - short term) with less of a burden on the general population and would only affect people who used the new technology.

    2. Re:Wow.... by kavau · · Score: 4, Insightful
      A government entity should never be allowed to patent its own tech, that tech was paid for by the people and should be available freely to all in every scenario I can possibly think of.

      In this case, the research was paid for by Australian taxpayers. So why should American companies be able to freeload on the technology?

    3. Re:Wow.... by CrackedButter · · Score: 5, Insightful

      Americans didn't invent rocket propulsion, the English did. Americans didn't invent the jet engine, the Germans did. Americans didn't invent the computer, the English did. Americans didn't invent the war, the Germans did. Americans didn't invent the freedom, the French did.
      So what was this major thing they invented? (btw, I am sure you meant last century)

    4. Re:Wow.... by shitdrummer · · Score: 5, Insightful

      I feel obligated to point out that if the government didn't get involved at all it would save even more money in taxes

      Then all the IP would be owned by large multi-national corporations that would take the profits out of Australia and their R&D dollars as well.

      How many multi-nationals do you think would give a shit about Australia's unique problems, such as the Cane Toad? http://www.csiro.au/index.asp?type=faq&id=CaneToad Control

      Shitdrummer

    5. Re:Wow.... by mjsottile77 · · Score: 5, Insightful

      I (as an American) don't see the problem with this. If I pay taxes, and they get invested in research, I'd be quite happy if the proceeds of that research get reinvested BACK into research to either augment the amount I pay, or reduce the amount of burden on me as a taxpayer. I don't care if it's not America that is the one profiting -- why should we always feel we should be top dog? If Australia paid for and has the patent rights to it, then good for them - and if they reinvest it into research, then maybe we'll see something else good pop out of the labs down under.

  2. Go aussie go.. by Anonymous Coward · · Score: 5, Insightful

    I hope the CSIRO wins considereing the way we get stuffed over by US companies out here.

  3. Patents by Anonymous Coward · · Score: 4, Insightful

    Remember, people: Patents are only good when they put money in YOUR pocket.

  4. Turnabout is fair play... by Sensible+Clod · · Score: 5, Insightful

    After all the patents U.S. companies have been taking out for this exact purpose, I say, let the Aussies bash 'em once!

    At any rate, I've given up hope that the patent system will actually be fixed...

    --

    The difference between spam and poop is that you don't have to dig through septic tanks looking for real food. -- Me
  5. You don't like patents now? by AdamTheBastard · · Score: 4, Insightful

    Why won't these companies make up their minds? Do they like protecting IP with patents or not? It looks as though the only important IP is their IP.

    Microsoft has been using patents for years to squash oposition, now they are sick and tired of $4 per chip? That must be breaking their bank!

  6. Intellectual property by uq1 · · Score: 4, Insightful

    From a previous slashdot article, http://yro.slashdot.org/article.pl?sid=05/05/14/07 2201&tid=109&tid=141&tid=155&tid=1

    How hypocritical are Microsoft appearing?

    On one hand they're trying to teach kids flawed views on intellectual property to ensure that future generations won't pirate as much, and on the other hand they're doing exactly what they're trying to prevent, the theft of intellectual property.

    Such sad, sad, little people.

  7. "Free Trade" my arse by Kris_J · · Score: 5, Insightful
    The Australian government, my government, needs to get a clue about the behaviour of the US and US corporations. This is exactly the sort of crap it signed on for when it forced through the "Free Trade" agreement. Frankly, I think we should cut off all formal ties and agreements with the US and have a real free trade environment. At the very least, Australia needs to recognise that the US patent system is irretreavably corrupt and should not be honoured in Australia.

    If the US would then similarly like to not honour Australian patents, they're welcome -- given that's what they appear to want anyway.

  8. Re:hypocrisy by Anonymous Coward · · Score: 3, Insightful

    He who lives by the patent.....

  9. Live by the sword, die by the sword by kcbrown · · Score: 5, Insightful
    ...although the companies in question certainly won't die if they have to pay royalties here.

    If the companies in question want to reap the benefits of the patent system, they have to pay the price of the patent system. But since most three-year-old children show greater maturity than most of these corporations, it's no surprise that these corporations want to reap the benefits without paying the price.

    They're just lucky that the organization in question (the Commonwealth Scientific and Industrial Research Organization, a research arm of the Australian government) isn't a competitor. Although I suppose in this case it could use this patent to give Australian companies an advantage over their American competition.

    It's about damned time the U.S. corporations got a black eye from the bullshit patent situation over here. After all, they're the ones who have been abusing it. I just wish it happened far more often.

    --
    Use 'slashdot stuff' in the subject line in any email you send me if you want to get past the spam filter.
  10. no relevance but cool by Slotty · · Score: 3, Insightful
    The CSIRO has their research labs in the side of a mountain. You have to cross a gaping chasm by a bridge to get to it.
    Any government funded organization that is built in to a mountain protected by a gaping chasm is not going to worry to much about anything.

    Our scientists thought it up we should keep the $4 per chip not like they can't charge an extra $4 for a notebook computer

  11. They're actually screwing with the AU government by anti-NAT · · Score: 4, Insightful

    CSIRO is a not-for-profit Australian Government organisation. Do all these companies really want to screw around with what is likely to be their biggest customer in Australia ?

    Invalidate the patent by all means if it shouldn't have been granted. However, if it is legitimate, then just pay the licensing fees.

    Remember, a patent is a government granted monopoly for a time period to allow the patent holder to both recoup their costs and to make a profit out of inventing the idea that has been patented. If these companies don't like that, then they should have all their patents revoked immediately, or they should sue the US government for incopetence because the US government granted the patent in the first place.

    --
    The Internet's nature is peer to peer - 20050301_cs_profs.pdf
  12. Re:hypocrisy by MasterOfUniverse · · Score: 3, Insightful
    What you call hypocritical, I call totally expected behavior.

    Right. And both are not mutually exclusive.

    --
    "There is no flag large enough to cover the shame of killing innocent people."--Howard Zinn
  13. Interesting thing here for me by Chuck+Chunder · · Score: 3, Insightful

    Is that to some extent CSIRO seem to be using the patent system for what it was designed for. They have 'invented' something and are now trying to licence it to make money directly from that invention.

    To me this seems purer than a company patenting something and then using that patent as a means to create an artificial monopoly and lock out competitors.

    $4 does sound like quite a lot per unit but I wonder if they can do that because they are only on one end of the patent equation.

    I'm sure MS, IBM etc would like to charge obscene amounts for a patent they own too but as they are on both the selling and buying end of such deals they maybe cautious about inflating the accepted price of patent licencing?

    --
    Boffoonery - downloadable Comedy Benefit for Bletchley Park
  14. Using patents offensively is JUST WRONG by r6144 · · Score: 3, Insightful
    I don't know why so many people here, quite a lot of which seem to be anti-patent in general, became pro-patent in this case (unless they are Australians, in which case I can understand). In my opinion, no single entity should be able to monopolize on an idea, whether it is a country or a company (the net effect is the same to us outsiders). Besides, I have read the patent in question, and the ideas there such as OFDM and FEC, etc. are actually not all that ingenious. Have a deep understand of real-world channel characteristics and you can also have similar ideas --- the problem is that there is hardly anyone in this field who has not heard about OFDM any more, so no one can demonstrate that to the patent office, even though I'm pretty sure that many of them are perfectly capable of coming up with that idea when it becomes useful.

    If patents have some uses it should be used to prevent wholesale copying of complete designs, which is as impossible to accidentally reinvent as it is to write a novel only to find that someone has already written essentially the same thing. The broad patents are better struck down, and I oppose anyone who wants to use them offensively, whether it is big-company-to-small-company, small-company-to-big-company, or government-entity-to-big-company.

    1. Re:Using patents offensively is JUST WRONG by rat_herder · · Score: 4, Insightful

      The current patent system seems to be falling apart, and needs urgent changes... but to say 'no single entity should be able to monopolize an idea' is silly. If there is no incentive to invest in a new ideas, those that need capital to develop may never come into existence. This is perfectly illustrated in the case of CSIRO. They have not bought the IP in order to sue people, they actually invested the money into the research. Now they have a right to profit from the idea.

    2. Re:Using patents offensively is JUST WRONG by iamplasma · · Score: 3, Insightful
      I suspect the reason everyone is now as you say "pro-patent" is that the patent itself is a reasonable one, more or less exemplifying a "proper" patent. What most Slashdotters (myself included) tend to hate are patents for software or idiotically simple things, or both. When someone patents hyperlinking, or some general idea like that, that's stupid, but when someone goes and invents a novel technology which is capable of making wireless connections run five times as fast, damn right they can patent that, and damn right they can have their $4. Also, to be fair it's an advantage that it's the CSIRO, so you know they're a genuine inventor, not out to bludgeon a profit and sue people to make a buck, like so many companies which go and buy patents in the hope of shaking down companies.

      Quite simply, it's that here is a textbook case of a well-meaning organisation developing a genuine technology, and simply asking for their fair and reasonable compensation for it. That's why I, and presumably most others here, support it.

  15. Re:As an Aussie by cranos · · Score: 4, Insightful

    Sorry, we didn't grow up in a culture that says everyone has the right to bear heavy calibre machine guns.

    On the snide remark regarding australias armed forces, lets just remember that in the latest american adventure, it was australian special forces doing a lot of the ground work before the invasion even started. You guys couldn't even stop the looters from robbing the local banks

  16. Poetic justice by TapeCutter · · Score: 4, Insightful

    I think the reason why people became "pro-patent in this case" is that the CSIRO actually use patents the way they were intended to be used. They invent something, then re-invest the money back into current research. They have been quietly doing this under various names since 1916 and have a very impressive record of practical innovation and basic research.

    "...the ideas there such as OFDM and FEC, etc. are actually not all that ingenious." - CSIRO developed and patented the idea a decade ago, hindsight is always 20/20. As you say, anyone with a "deep understanding" could have thought of the idea but the fact remains that nobody did.

    "I oppose anyone who wants to use them offensively" - The corporations that are now whinning about paying $4 per chip are the same ones that pushed hard for US IP laws to be adopted under the recently signed free trade agreement. To me, (an Aussie), it is poetic justice when a "non-profit" can screw a cartel of the largest "for-profits" with thier own rules. Before the 1980's corporations used to buy CSIRO patents for a pitance and the Australian public would watch as Agri-corps and Drug-pushing-corps turned govt funded research into a private cash cow. The use of licenses to make "for-profits" pay for basic research is one of CSIRO's greatest innovations.

    Some examples of IP idiocy in Australia, patent for the wheel, Ugg boots.

    --
    And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
  17. 70% of chipset cost by wdmr · · Score: 3, Insightful

    Did anyone read the second article? "One former executive of a top-ranked computer maker alleges the organization is asking a $4 licensing fee for each chipset using OFDM technology, amounting to up to 70 percent of a chipset's price" Personally, I think CSIRO's patents should be observed. But I found very little except this tidbit to explain the actions of the companies brining the action. Big groups of competing companies don't band together to bring an expensive legal action unless they have a very clear incentive. (speculating here) It may very well be that this step is being taken because while $4 doesn't sound like very much it is inhibiting putting wireless technology in very simple low priced devices or devices with a very low margin? Does anyone know if CSIRO was approached about altering the price structure and refused? A $4 skim off the top of a $1500 centrino-equipped laptop isn't much. But a $4 skim off a $12 USB Wireless fob is pretty harsh.