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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...'"
I was holding out for a longer court battle, in the hopes that more and more crackberry addicted suits would be forced into looking at patent reform. I'll take what I can get but it would be nice to have more than one chairman on board.
The patent system certainly needs some fixing, but outlawing stupid CEOs at the same time would also be a big help. I'm not going to get my hopes up though.
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.
No, that's not quite it...
1) RIM established it's BlackBerry service
2) NTP filed a patent on how it works. (And did not subsequently do ANYTHING with it)
3) NTP contacts RIM to "negotiate" a licensing agreement for NTP's patent (RIM walked away)
4) Lawsuits are filed
5) Patent office invalidates NTP's relevant patents
6) RIM ordered to pay, due to the courts not allowing the testimony of the patent office.
The patent system needs to be reformed. Patents are supposed to protect companies against theft. Patents are not supposed to be a form of revenue.
The way it should work (in my opinion) is that if you want to patent something, you had better have something tangible to present with your filing. In this case, NTP only held a piece of paper saying they invented something. They did not write any code or develop any product (or component of a product). Essentially, there were only three possible sources of revenue for NTP: Investments, Licensing, and Lawsuits.
As a point of references, some history is useful.
/ 2100-1040_3-257801.html?tag=st.ref.goo
RIM made lots and lots of noise about their own IP, and have gone after lots of people before finding themselves on the other side of the ball.
"RIM is alleging that Good is infringing on its patents, according to the suit. The first is "for a method and apparatus to remotely control gateway functions in a wireless data communications network." The second "relates to a method and system for loading an application program on a device." The third "relates to a method and system for transmitting data files between computers in a wireless data communications environment."
or this one
"Ontario, Canada-based RIM charges in a suit filed Wednesday in U.S. District Court in Delaware that Glenayre Technologies violates a patent granted last month to RIM protecting the way the BlackBerry redirects e-mail from a computer or server to a handheld using a single e-mail address." - http://news.com.com/RIM+wins+patent%2C+sues+rival
Anyways, my point is that RIM really loved patents when they could shut out their competition with them, but disliked them when someone heard them making lots of noise about their IP and said, wait a minute, we have patents in the same area. Despite extrodinarily preferential treatment by the USPTO (ie, no one else will get patents they context reviewed that fast ever), they still were unable to prevail.
Something def needs to be fixed on the patent side, but there is something interesting also about RIM getting some of its own medicine. I wonder if someone has a more complete history on their annoucements on monetizing their IP portfolio.
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.