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$400 Million IP Experiment Making Some Nervous

BrianWCarver writes "IP Law & Business shines the spotlight on Intellectual Ventures, the IP start-up founded in 2000 by former Microsoft chief technologist Nathan Myhrvold. According to some estimates, Intellectual Ventures has amassed 3,000-5,000 patents, with the help of a $400 million investment from some of the biggest technology companies, including Nokia, Intel, Apple, Sony, and Microsoft. As the patent stockpile grows, so does the speculation--and the fear. IP lawyers and tech executives worry that Intellectual Ventures is less interested in changing the world with big ideas, and more focused on becoming an über patent troll, wreaking litigation havoc across industries with its patents."

25 of 262 comments (clear)

  1. I knew I should have patented... by jjsaul · · Score: 4, Funny

    I knew I should have patented the idea of patent-trolling. Dang.

    1. Re:I knew I should have patented... by kimvette · · Score: 4, Funny

      I regret to inform you, PCeye, that you are in violation of patent 1,521,271 "Method for whining about the patent situation" which I filed on July 22, 1998. You have 30 minutes to cease and desist violating my intellectual property, or you may opt to negotiate a license for continuing using my method. You may contact me at frivilouspatents@fraudulent-ip-sharks.com

      --
      The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
    2. Re:I knew I should have patented... by Savantissimo · · Score: 4, Interesting

      The term "patent trolling" is just name-calling. Patents are supposed to be used by the people who invent things to get money from the people who use those inventions to make products. There is no reason to expect people only to invent things that they themselves are capable of bringing to market, and to impose that expectation would reduce the ideas being published in patents and give no incentive to invent or to disclose.

      Focus instead on the real problems with the current parent system:

      -companies and their engineers are discouraged from using or even looking at existing 3rd party patents due to a stupid interpretation of the willful infringement rule

      -it is too expensive to apply for patents, especially for individuals

      -it is far too expensive and time-consuming to get legitimate judgements against infringers

      -obvious or prior-art patents are routinely granted, and the examiners' incentives encourage this

      -patents are often issued that either do not work or do not fully and comprehensibly disclose how to implement the invention

      -there is no automatic licensing scheme (as for public playing of music) or overall royalty % cap to asuage the fears of companies that they'll get nibbled to death by various IP holders for acknowledging all the patented technology that goes into making a state-of-the-art product.

      --
      "Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery?" - Patrick Henry
  2. For the better, no doubt by Lead+Butthead · · Score: 4, Insightful
    IP lawyers and tech executives worry that Intellectual Ventures is less interested in changing the world with big ideas, and more focused on becoming an über patent troll, wreaking litigation havoc across industries with its patents.
    Perhaps now it will finally compell change to the (broken) patent system.
    --
    ELOI, ELOI, LAMA SABACHTHANI!?
    1. Re:For the better, no doubt by cp.tar · · Score: 4, Insightful

      Not that soon, I think... but eventually it might.

      Right now, too many too powerful have too much to lose should the status quo change.

      --
      Ignore this signature. By order.
  3. net here! by xlyz · · Score: 4, Informative

    not in the EU, as software patent are (still) not allowed :)

  4. Patent Bashing by visionsofmcskill · · Score: 4, Insightful

    A company of this size and portfolia could litaerally drag the entire economy to a standstill if allowed to patent everything. It's one thing to have a whole bunch of different companies pushing competing patents, but when several large (and supposedly competing?) firms get together and pool their patents into one collossus, then you can be certain noone else will be allowed to enter any market remotly connected. This is not a good thing.

    --
    --Idiots, Every single one of YOU, A flaming mass of conglomerated morons, hey wait a second, isnt that how RAID works?
  5. I want to be a scientist know... by TubeSteak · · Score: 4, Funny
    Last January a dozen of the world's most respected scientists gathered in a nondescript conference room at an office building outside of Seattle. They sat around a table cluttered with laptops and papers, snacked on bowls of beef jerky and Chex Mix
    Beef jerky and Chex Mix?
    Sign me up!
    --
    [Fuck Beta]
    o0t!
  6. International Impact by foundme · · Score: 5, Insightful

    How does patent work internationally?

    Imagine in 10-20 years, China becomes the biggest economy in the world, it ignores all the US patents, and just use those patents to roll out their own products.

    For example, a patented medicine sold by an US company to Africa at $10 per bill, and the same "Made-In-China" pill cost $0.01, what is to stop Africa from buying from China instead?

    Right now US is still powerful enough so that other countries must agree to certain rules/laws made in USA, in exchange for free trade deals, but when that strength faded, so will the leverage.

    I draw this opinion from the recent, possible change of international whaling law, where Japan is about to gather enough votes to start commercial whaling again. So what is deemed illegal in the last few decades will soon become acceptable when the power shifted.

    --
    Please stop entering code 2,2,7,6,6,4
    1. Re:International Impact by TheRaven64 · · Score: 4, Insightful
      You need to respect US patents if you intend to sell in the US. I suspect that this is going to start really hurting the US in the next few years. What do you think will happen when, for example, an EU or Asian software company gets hit with a software patent suit? If the US is not their principle market, then they will just pull out - sell their products everywhere except the US. Other companies might decide that selling in the US is too risky, and also ignore the US market.

      Since software is often not a real product (it's a tool that is used to make other products), this could have a serious effect on the US economy. In the worst case, this would start happening to Free Software - it would be free-beer for any non-US company to use, but cost money for the patent license in the USA.

      --
      I am TheRaven on Soylent News
  7. Political Leverage by tgrigsby · · Score: 4, Interesting

    With the sheer volume of patents they hold, the smart move would be to avoid garnering too much attention from Congress and instead sell advantage to competing companies. In other words, their primary source of income wouldn't come from pure patent protection litigation, it would come from companies paying them to tie up their competitors' product lines with injunctions and patent violation suits. The 800 lbs. gorilla would get richer as a hitman than as a tyrant.

    --
    *** *** You're just jealous 'cause the voices talk to me... ***
  8. It should be easy to figure out. by killjoe · · Score: 4, Insightful

    Nathan Myhrvold is not a nobody. He has a rich history all saved on google. A little bit of research should show you whether is a nice guy who is trying to make the world a better place or an evil son of a bitch or somewhere in between.

    Anybody who has been throught the early years of Microsoft's war on the IT industry knows what kind of a person he is. Suffice it to say he is not a nice guy trying to make the world a better place.

    --
    evil is as evil does
  9. Here's how it works by overshoot · · Score: 5, Interesting
    Right now, large companies amass huge throw weights of patents. In general, the outcome of a patent war is Mutually Assured Destruction, so they also enter into mutual cross-licensing agreements that in effect create a patent-free zone for the Fortune 500.

    What Intellectual Ventures could do is create a patent pool for the present members of the club.

    It works like this: Microsoft transfers its patent portfolio to IV in return for a license to IV's patent portfolio. This is no loss to MS because they've already cross-licensed everything with Philips, Cisco, etc. -- all of whom do the same. From the POV of club members, nothing changes, except perhaps that they spend much less money negotiating cross-licensing agreements and pay a bit to IV for the convenience.

    On the other hand, now IV has practically all of that throw weight. Anyone not an "Executive Member" of the club will have to pay (dearly!) to use any of the IV portfolio. What's more, Mutually Assured Destruction doesn't work because IV doesn't actually do anything -- they can't be sued for infringing patents when they don't make anything.

    The upside to the club (aside from convenience noted above) is that any of the "little people" who get uppity are now facing the combined throw weight of all of the patents in the world -- and the club members don't have to accept the public-relations liabilities.

    It's a total win-win situation. For instance, if done right Microsoft could keep Linux tied up in court forever without ever themselves taking a PR hit. Sort of like the BSA except for suppressing potential competition instead of keeping customers in line.

    --
    Lacking <sarcasm> tags, /. substitutes moderation as "Troll."
    1. Re:Here's how it works by moochfish · · Score: 5, Interesting

      You make an interesting argument, but I don't know if I fully agree. Let's say Microsoft wants to keep Linux buried in litigation through this organization. Well, the problem is that it has other members with very likely competing interests. For example, Nokia might not like seeing its patent troll baby being used to quash one of its own business partners. So what happens when this sort of conflict of interest arises? And it will.

      I find it hard to believe this troll group will be used for the evil people seem to be claiming. More likely, it will be used as a massive reserve for defensive patents. Much like a defensive alliance between nations, you won't see members picking fights and suing people actively, but instead the group exists to allow for a collective means to *defend* from REAL patent trolls.

  10. Hold that thought by HotBBQ · · Score: 5, Funny
    From TFA

    'They can't be screwing around with a bunch of ideas for that long,'

    Why not? I've been screwing around with the idea of screwing around with multiple hot chicks since I can remember. Wish I could get a patent on that.

    1. Re:Hold that thought by Eccles · · Score: 4, Funny

      Why not? I've been screwing around with the idea of screwing around with multiple hot chicks since I can remember. Wish I could get a patent on that.

      Now that's one case where I really wish I had prior art...

      --
      Ooh, a sarcasm detector. Oh, that's a real useful invention.
  11. been here before by theCat · · Score: 4, Insightful

    Gould & Fisk tried the same thing with the gold market. At which point, fundamental flaws in the gold standard and the Greenback became rather obvious.

    Maybe we'll have the same corrections this time but without the economic collapse. Did I just suggest we've learned anything from the past? Very sorry, I'll stop now.

    --
    =^..^= all your rodent are belong to us
  12. DDOS on USPTO by calcutta001 · · Score: 4, Interesting

    Here is an idea to protest against software patents.

    Create an open source patent organization and start applying for software patents on behalf of open source coders for every little piece of innovation. The idea is to keep the threshold of what qualifies as innovation low to generate a huge list of patent applications.

    Anything useless from "emphasizing email addresses containing a numbers in a word processing document" to "a real fancy way of optimizing inner loops in interpreted languages" to "a memory management code for NUMA architecture"

    The important goal is not to get a software patent but to demonstrate the weakness of the system.

    This will overwhelm the patent office. at best cause a change in thinking of policy makers. at least it will cause a headache for the patent mongers.

  13. My understanding of IV by Anonymous Coward · · Score: 5, Interesting

    Alright patent bashing aside ...
    As I understand IV from some people working with them (with the caveat that my understanding is not based on a direct relationship with them, but lunch conversations/rumor):

    1) The $400M is NOT an investment. It is blackmail, like protection money. Company X pays IV for the costs of a patent portfolio with the understanding that IV will not sue Company X based on those patents (i.e. they get a license). So, Company X pays protection money to IV and IV gets new patents paid for to go sue others on.

    2) There is no "speculation" that IV is a troll. As I understand it, that is their purpose.

    3) IV doesn't invent anything. They buy blocks of patents on the cheap (especially if they get other firms to pay) from some other company's firesale. Usually these patents are an unusable mess and require massive clean-up. But, if you buy thousands of patents you'll hit gold eventually.

    4) As a troll, if you don't have deep pockets, IV doesn't care about you (unless you have something to sell). This is cincontrast with real companies that often use their patents to prevent a second company from making a product. IV just wants money.

  14. It's just not one big player by grahamsz · · Score: 5, Insightful

    Imagine that Intel, AMD and IBM not only patented everything imaginable in the uProcessor space, but that they got together and cross-licensed all that tech.

    On the face of it, this sounds advantageous. It allows more cool features in processors and alleviates those three companies from having to worry about getting involved in frivolous lawsuits with their main competitors.

    Now perhaps Intel patented the XOR operation. Sure the patent is blatantly unfair, but since IBM and AMD can already use it then they have no need to fight intel's patent. THe only person who would want to fight it would be some new player in that space, but who'd have the resources?

    If large corporations start broadly cross-licensing technologies then it'll effectively kill the little guy and sew up the market.

  15. Let's see this for what it is, shall we? by viewtouch · · Score: 5, Insightful

    The US Constitution recognized only individuals with respect to copyrights, patents, etc.. At the point where corporations were given equal status with individuals then all of the rights that had been held by individuals then became rights that corporations could also hold. Corporations can, with this accession, do things that no individual could possibly do. Therein lies many a disaster, many of which lie immediately ahead in the future. Every time a corporation petitions a legislator for a law that gives it more power, the rights of the individuals are the currency paid in this transaction. The eventual outcome of this, it should be clear to all by now, is that a few corporations will hold all the power and no individuals will have any rights except those that the corporations see fit to allow them to have to the extent that it fulfils the plan of the corporations to manipulate the people. As Ralph Nader has often explained, unless and until we people put an end to this individuals will find themselves with fewer and fewer rights, and corporations will grab more and more power over individuals. This is a war, folks. If you don't think so you are condemning your progeny to virtual slavery.

  16. Open Source comanies are doing basically the same by Vitriolix · · Score: 4, Informative

    http://lwn.net/Articles/179597/

    Back in January, Red Hat reversed a longstanding policy and allowed the Mono .NET implementation into the Fedora distribution. A set of Mono applications (Tomboy, Banshee, F-spot) also went in at that time. The move was generally welcomed, but a number of observers wondered what had changed to make the addition of Mono possible. The sticking point had been a set of patents on .NET held by Microsoft; presumably those patents were no longer seen as a threat. But no information on why that might be was released at that time.

    We missed it at the time, but Fedora hacker Greg DeKoenigsberg posted an explanation in late March. The answer, as it turns out, may offer some clues of how the software patent battle might play out.

    Back in November, the Open Invention Network (OIN) announced its existence. OIN is a corporation which has been set up for one express purpose: to acquire patents and use them to promote and defend free software. The OIN patent policy is this:

    Patents owned by Open Invention Network will be available on a royalty-free basis to any company, institution or individual that agrees not to assert its patents against the Linux operating system or certain Linux-related applications.

    The list of "certain Linux-related applications" is said to exist, though it has not, yet, been posted publicly. But Mono is apparently on that list. So anybody who files patent infringement suits against Mono users, and who is, in turn, making use of technology covered by OIN's patents is setting himself up for a countersuit. Depending on the value of the patents held by OIN, that threat could raise the risk of attacking Mono considerably.

  17. IP is the oil of the information age by servognome · · Score: 4, Insightful

    On the contrary; maybe having the economy dragged to a standstill is the only way to let the politicians realize the folly of the 'everything's patentable' world. If it would lead to change, the temporary stagnation might be worth it.

    Just like skyrocketting oil prices have convinced politicians on the need for alternative energy sources. Sure an economic standstill works, but it's horribly painful for everybody (except for those who are profiting short-term).
    What is really needed is an education effort on IP reform. Not just for the politicians, but for the public at large, so they can elect forward thinking leaders.

    --
    D6 63 0D 70 89 81 BB 8E 7B 7C 5F 5D 54 EA AB 73
  18. That is incorrect. by reality-bytes · · Score: 5, Informative

    The UKPTO is one of EU member offices known to actively *reject* attempted software and business method patents even if it has to go all the way to the high court.

    In fact, they were recently held as a 'good example' by the FFII.

    --
    Ripping an new rectum in the fabric of spacetime.
  19. Decent points, but by Mateo_LeFou · · Score: 4, Insightful
    Let's not forget the other thing patents are supposed to do: disclose to the public an invention, in exchange for exclusive control of that invention.

    NB:
    -If the invention is, e.g. "one-click shopping" the public will reply "who gives a fuck?! duh!" Hence the non-obviousness requirement.

    This is why patent-trolling is not just name-calling. Many companies (and here it seems we have the epitome) have, as their business model, making-it-impossible-for-others-to-do-their-work-w ithout-paying-us-a-fee.

    Patents are supposed to be about collecting-a-fee-for-helping-others-do-their-work- better. In particular: helping them do it better in a way they might never have imagined.

    --
    My turnips listen for the soft cry of your love