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Eminent Domain Applied to IP Due To State Secrets

NormalVisual writes "Wired recently ran a story about a group of inventors that found themselves unable to sue Lucent Technologies for infringement of a patent they held on a novel design for a pipe/cable connector. They had been working with Lucent on an underwater application for this connector, but unfortunately for the inventors, Lucent's application was being developed for an as-yet-unnamed branch of the U.S. government. The government is now claiming a state-secret privilege, and is refusing to let the inventors sue Lucent for patent infringement, citing national security concerns. In the meantime, Lucent continues to directly profit from their invention without paying any royalties or other compensation. The patent in question can be found online. It's doubly a shame because, unlike so many other patents that we've seen here, this one is actually creative and non-obvious." We've touched on this topic before.

16 of 312 comments (clear)

  1. Sweeeeet! by denissmith · · Score: 4, Insightful

    So we want Chinese peasants to pay to watch "Steamboat Willie", but real, live inventors are SOL. God, what a country!

    --
    I have nothing to hide. So, why are you spying on me?
  2. It's not eminent domain without fair compensation by Anonymous Coward · · Score: 5, Insightful

    Sounds more like theft than eminent domain. With eminent domain, the government takes your stuff but has to give you market value for it. Here, they're just taking patents away from the inventor. OK, maybe not taking away, but denying the holders of that patent the right to use it in this specific case, which is just as good as taking it away.

  3. Ridiculous. by reality-bytes · · Score: 5, Insightful

    If its a foregone conclusion that the 'Government Agency' are using this tech as provided by Lucent then I don't see how 'state secret' can be a problem (or excuse).

    If the 'Government Agency' is allowed this holier-than-thou stance then the plaintiff should just be able to ask: Are you using our tech as provided by Lucent? The agency can then just say yay or nay.

    I'm pretty sure the value of the defence contract for Lucent isn't any kind of secret so the courts should award a *fair* share of that ammount to the plaintiff if it is found that Lucent infringed their IP.

    --
    Ripping an new rectum in the fabric of spacetime.
  4. state sanctioned theft.. by MrLint · · Score: 5, Insightful

    So can someone tell me which criteria of fascism we haven't had happen yet.

    1. Re:state sanctioned theft.. by The+Angry+Mick · · Score: 5, Insightful
      From the Wikipedia:
      The term fascism has come to mean any system of government resembling Mussolini's, that in various combinations:
      • exalts the nation and party above the individual, with the state apparatus being supreme.
      • stresses loyalty to a single leader, and submission to a single culture.
      • engages in economic totalitarianism through the creation of a Corporatist State, where the divergent economic and social interests of different races and classes are combined with the interests of the State.

      Um...pretty much all of them?

      --

      I'm not tense. I'm just terribly, terribly, alert.

    2. Re:state sanctioned theft.. by Keybounce · · Score: 5, Insightful

      This really isn't trolling. It may be off topic, but it isn't trolling.

      1. exalts the nation and party above the individual, with the state apparatus being supreme.

      Nation above the individual: Patriot act, Bush's "You're either with us or with the enemy" speeches, etc.

      Party above the individual: Republican's "No abortion" policy.

      State supreme: Pushing judges that want to expand the interstate commerce clause to regulate EVERYTHING, including california only medical marijuana.

      2. stresses loyalty to a single leader, and submission to a single culture.

      More of "You're with us or against us". The whole "We have 55%, so we'll push our agenda into law for everyone".

      (Remember: Democracy is two wolves and a sheep voting what to have for lunch. Freedom is a well armed sheep contesting that vote.)

      3. engages in economic totalitarianism through the creation of a Corporatist State, where the divergent economic and social interests of different races and classes are combined with the interests of the State.

      Hmm... well, this will probably get me modded down for something, but:

      a. Corporations get large tax breaks, incentives, etc., and
      b. More and more corporations get control over individuals, by a society that requires you to do business with them, and those corporations requiring that you sign contracts giving up rights. Said "You give up your rights in order to do business with us" upheld by courts.

      See: Any music/software "shrinkwrap" license. Any credit card company. Any software system/Windows OS/modern computer (excluding Linux). Probably more. See: General need for insurance, and the general impossibility of self insurance. See: More and more people being able to use your credit score to decide any/every thing of their business with you.

      "Combined with the interest of the state". Well, we're looking at high unemployment, lots of foreigners being imported to work, more and more people getting into financial binds, new bankrupcy laws that basically make your finances all government business for 3-5 years, etc.

      I won't go as far as to say "Everyone is a criminal, we can arrest anyone at any time", but some states are making criminals work for the state, right?

  5. Misleading topic by davidwr · · Score: 4, Insightful

    1) the company didn't get any cash, like they would in an eminent domain case

    2) the company still has patent rights for other uses. Lucent can't license the patent to others for any non-secret projects.

    It's more like Lucent is engaging in software or music piracy and thanks to "Kings-X" getting away with it.

    Now, if the patent holders refused to license the patent at all, or put onerous restrictions on it, and the government siezed the patent in toto so industry could license it, and paid off the patent owner, that would be eminent domain.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
  6. Re:I'm SO confused! by 99BottlesOfBeerInMyF · · Score: 5, Insightful

    Are patents evil, or are they good?

    ...because you know everything has to be one or the other. It's not like some things could be beneficial when applied in certain ways (like traditional patents on non-obvious inventions) and yet be detrimental when used in other ways (patenting business ideas, existing inventions, existing common practices or ideas with "on the internet" appended, software patents, etc.). Can't someone please come up with simple absolute rules for everything so we don't have to think?

    It's hard to let Slashdot tell me what to think when they post stories on _both_ sides of an argument!

    Yeah we all hate it when a discussion site posts both good and bad things done by a person, organization, or process. That might foster, well discussion.

    Man I hope you're trying to be funny, because some days I really can't tell on Slashdot anymore.

  7. Let me explain this... by benjamindees · · Score: 5, Informative

    No power gives the government the ability to take property from you and give it to someone else without compensation. Yet, in this case, that is the result. Why? It's a loophole, and Lucent has exploited it marvelously.

    Consider: The executive priviledge in question (and the court case cited) gives the government the ability to restrict the release of information deemed important to national security. That's all.

    How did Lucent exploit this to their advantage? They promised to pay for the technology, signed contracts and everything. Then they simply didn't pay. Now, it's up to the screwed party in this case, the plaintiff, to sue for recompense. The plaintiff brings suit. And, in the course of the trial, the plaintiff requests discovery from Lucent to verify it's claims and help make it's case.

    Uh-oh. Here's where Big Brother steps in. The government says "you can't talk about that" to the courts, and to both parties. Now what is the plaintiff supposed to do? What evidence can he use? There's probably a contract that details specific technology that they now can't disclose. If they blot out the parts that are sensitive, Lucent can use that to claim reasonable doubt. They can't investigate Lucent to find out that they actually took and used said technology, because Lucent can't reveal that information to the court. The plaintiff is completely screwed, against all logic and reason.

    I especially love the quote from the Lucent representative: "You can't try this case in your publication". They understand the issues well enough to know how to screw people; and they did it intentionally.

    This is becoming more and more common. I have high voltage power lines, 100 ft tall, in my back yard. Yet, I never gave permission to the power company to put them there. I rejected their low offer when they called to try to purchase an easement, and they said "fine". They never filed condemnation proceedings to take the land. They simply built the power lines illegally, over my objections. They can do this because, in Oklahoma, the constitution provides that the maximum damages for them doing so are the same as the cost of the easement. The most it will cost them is what a judge decides the easement is worth. But, now, it's up to me to file suit to get those damages, which means I'll probably just end up with their low offer minus attorney fees.

    And they do this as a matter of course, to everyone. It's fascism by definition.

    --
    "I assumed blithely that there were no elves out there in the darkness"
  8. Emminent domain would be a FAIRER solution by abb3w · · Score: 4, Interesting
    Goverment declares that the patent has state secrecy implications. Government exercises emminent domain over the patent, and pays them a "fair" (well, laughable) sum. Patent spends the rest of its natural(?) life on a shelf, military applications aside. Lucent and the Government are happy, and the inventor at least is resigned to a clear foundation for the decision in the letter of the constitution (5th amendment).

    Of course, doing this would make major patent holders a little more nervous, but it's still a more equitable resultion under the rule of law than "no, you can't sue him, even though you're getting screwed." In the meanwhile, all these guys can do under the current mess is fall back on "peacable petition for redress of grievances"... which is not likely to be effective in this political climate.

    --
    //Information does not want to be free; it wants to breed.
  9. "Takings" require compensation by billstewart · · Score: 4, Informative

    The Constitution forbids taking private property for public use without just compensation. If the Feds want to take the "intellectual property" for "National Security" or whatever reasons, they are required to compensate them - assuming the patent owner files a lawsuit in the right form asking the right questions. Doesn't sound like they've done that yet.

    --

    Bill Stewart
    New Fast-Compression-only CPR http://preview.tinyurl.com/dy575ks
  10. It's not eminent domain at all by jfengel · · Score: 4, Informative

    They're not claiming eminent domain, and the original article doesn't mention it; that's from the summary written by the submitter.

    They're claiming instead something called the state secrets privilege, which has nothing to do with property (intellectual or otherwise) but rather with quashing the lawsuit. Eminent domain has to do with real, not intellectual, property, since it is a "taking", and as is incessantly pointed out on Slashdot you can't "take" intellectual property.

    What that big state secret is, of course, I can't say, since most of the filings in the case are (duh) secret.

    In other words, the government isn't claiming that it has any rights to the patent; it's just claiming that the guy isn't allowed to sue, because that would violate some big state secret.

    So they get to use the patent, with no legal right to it, but what kind of right is it that you can't enforce under the law? No right at all. Sound like a totalitarian regime to you? Gold star!

  11. Re:It's not eminent domain without fair compensati by john82 · · Score: 4, Informative

    The difference here is that Lucent is PROFITING from IP they stole from the inventors. There's nothing they can do while Lucent will continue to commit theft in (likely) an ongoing sole-source contract to provide connectors.

    Perhaps the inventors should talk to someone from the Global Intellectual Property Rights Academy?

  12. Crap submission by hey! · · Score: 4, Informative
    Ye gads, aren't people confused enough about intellectual property? Put down your ideological axe long enough to get it right.

    This has absolutely nothing to do with eminent domain. It would be better for the inventor if it was eminent domain, becuase under that doctrine he'd have to be paid a fair market value for his property. Under this, a more favored vendor is allowed to steal is property, and the government is taking away his right to defend his property in the name of national security. It has nothign to do with the government taking the property itself.

    This is the state secrecy doctrine. It says to right in the friggen linked article, with a highly informative blurb in the third paraqraph:


    In a little-noticed opinion this month, a federal appeals court ruled against the Crater Coupler patent holders and upheld a sweeping interpretation of the controversial "state secrets privilege" -- an executive power handed down from the English throne under common law that lets the government effectively kill civil lawsuits deemed a threat to national security, even if the state is not a party to the suit.


    I refer you to http://en.wikipedia.org/wiki/Eminent_Domain for more information on Emininent Domain and http://en.wikipedia.org/wiki/State_Secrets_Privile ge for the states secret privilege.

    The linked article would have been more informative if they had mentioned "US vs. Reynolds", the 1953 case in which the US Supreme Court which actually established the privilege in the US . In that case, the widows of three crew members of a B-29 sued the US government for information relating to a crash that killed their husbands. The US government claimed that since they were working on a classified project, divulging the accident report would undermine national security.

    As it turned out, they lied. There was nothing sensitive at all in the accident report. There was embarassing information about incompetence and negligence in the maintenance of the aircraft. Which goes to show what Ben Franklin said, "They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety." There is nothing more dangerous to liberty than allowing the government to act without accountability, purely on its say so.

    --
    Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
  13. /. Rules by servognome · · Score: 4, Funny

    Can't someone please come up with simple absolute rules for everything so we don't have to think?

    1 - Microsoft, SCO, MPAA, RIAA, & all corporations unless noted in rule 2 = Bad
    2 - Linux, Google, Apple, AMD = Good
    3 - DRM, outsourcing = Bad
    4 - Open source, P2P = Good
    5 - Patents, Copyright = Bad, unless being used against a big corp
    6 - Goverment = Bad unless they are installing WiFi in your town
    7 - NASA = Good, unless they say they will not keep Hubble in space
    8 - USA = Arrogant
    9 - Religion = only post flames, any intelligent conversation for or against religion will be ignored
    10 - In Soviet Russia, Does it run Linux, Beowulf Cluster, I for one welcome, etc = overused, but still must be modded +5 funny

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    D6 63 0D 70 89 81 BB 8E 7B 7C 5F 5D 54 EA AB 73
  14. Re:With drugs, we've already paid for the research by falconwolf · · Score: 4, Informative

    with the pharmaceutical industry getting a lot of their basic research performed in public institutions with government grants, and then getting to patent the drug, we're the one's getting screwed. Twice!!

    Yeap! BMS, Bristol-Myers Squibb, using Taxol is an excellent example. The NCI, National Cancer Institute, part of the fed's National Health Institute spent $183 million doing the research into developing Taxol from the Pacific Yew tree. Yet they practically gave away to BMS, who makes more than a billion dollars a year on the sale of Taxol, the "rights" to use all of the data from the clinical trials. The US tax payer got ripped off!!! And cancer patients who need Taxol are getting ripped off as well.

    Falcon