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RIM Chairman Wants Changes to U.S. Patent Law
florescent_beige writes "The Globe and Mail is reporting that James Balsillie '... called on U.S. lawmakers yesterday to fix a system that he says boxed the company into one of the largest legal settlements in U.S. history.' Although this will do nothing to change the $612.5M(US) settlement RIM was forced to sign with NTP, Mr. Balsille says he wants to help 'assure that no other company experiences what we endured over the past five years.' Mr Balsillie's rhetoric was direct: he said RIM's treatment at trial was like '... a judge in a murder case pondering execution while ignoring DNA evidence that exonerates the accused ... RIM was virtually held up for ransom by NTP...'"
NTP is a purported patent troll, existing on fluffed up patents (many created using the continuation loophole of the patent office, allowing them to add news discoveries in other people's products into a long idling patent application). All of NTPs patents are likely to be discarded by the USPTO on review, however the disconnect between the justice system and the USPTO allowed NTP to extort $600+ million dollars out of RIM by threatening them with an injunction.
The civil justice treats granted patents as valid, yet the USPTO operates under the workflow model of basically granting everything, and then dealing with problem patents upon petitions -- but the review is far too slow, allowing malicious patent trolls to siphon off of legitimately innovative organizations.
e.g. I sneak a patent in that patents vacuums. The USPTO grants it, and I can then cajole a judge into granting an injunction against every vacuum maker unless they pay my extortion fee. The USPTO will of course pull the patent out and start reviewing it, but the vacuum cleaners will have long been forced to pay up.
Yes, you certainly are missing something.
1) RIM developed a communication system.
2) Years later, NTP sent RIM a letter saying "we think you are infringing on one of our 5000 patents."
3) RIM replied, asking "what patent are we infringing?", but got no reply.
4) NTP sued.
5) During the court case, RIM demonstrated prior art. However, on the same computer, there was another program, irrelevant to the demonstration, which was dated later than the patent date, so the demonstration was called "fraud", and RIM was not allowed to repeat the demonstration with that program removed from the computer. Yes, this appears to have been incompetence on the part of someone at RIM setting up the demonstration.
6) RIM and NTP reached a settlement, but for some reason, NTP decided that they could do better. My guess is that the original settlement may have included a requirement to repay some of the money if the patents were eventually invalidated.
7) Under threat of an injunction to shut down US operations, RIM settled again, as the injunction would have taken effect before the patent office was finished with its process.
So, no, it's not just a case of someone getting caught doing something wrong.
Instead of crying over the stolen $612.5M, RIM should have pro-actively spent a small fraction of that sum to make the patent system fair in the US. Instead, they allowed the Patent Cartel to fund this monster of a legal system, which of course rewards its creators.
Software Idea Patents are a form of legalized extortion encouraged by the US government. It was put in place in order to protect monopolies like Microsoft, who has recently threatened to sue users and developers of open-source software, including Linux. No wonder the US government intervened on behalf of Microsoft in its European anti-trust case -- Microsoft and the Patent Mafia has Uncle Sam in their pocket. Too bad Europe is heading there too.
NTP is no patent troll, the owner seriously tried to fund development of his project, until the megacorps repeatedly left him hanging. His investments in demos and prototypes ended up ruining him.
NTP repeatedly sought good faith settlements from RIM, who knew he had tried to develop this design in the past.
Then RIM tried to prove its case by lying in court directly to the jury and judge.
But it's okay, it's hard to find this angle buried in the story.
Unless you read slashdot.
NTP is no patent troll, the owner seriously tried to fund development of his project, until the megacorps repeatedly left him hanging. His investments in demos and prototypes ended up ruining him.
Using dubious patents (all of the patents in question have been rejected) to coerce money out of organizations that independently created something similar (e.g. Does anyone think that RIM learned about NTP's projects and then covertly copied them? I've never, ever heard that accusation) is pretty much the definition of a patent troll. Further vilifying them, NTP held out for a non-reversable judgement because they know that odds are great that their patents will fail the appeals: They wanted their $600 million or they'd force an injunction, and they wanted it quick before the USPTO rips out the entire foundation of their case.
There is absolutely no positive angle for NTP.