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22 Companies Sued Over Wi-Fi Patents

Newer Guy writes "Wi-LAN, another patent holding company, has sued 22 companies that make or sell wireless routers. Defendants include Apple. Atheros, Belkin, Best Buy, Buffalo, Dell, HP, Intel, and Lenovo. Wi-LAN has a portfolio of more than 280 issued or pending patents." Of course the two patent suits were filed in Marshall, Texas.

31 of 219 comments (clear)

  1. And again by Opportunist · · Score: 3, Insightful

    Those who can, do.
    Those who can't, sue.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    1. Re:And again by griffjon · · Score: 4, Interesting

      That seems like a poor choice of defendants. Correct me if I'm wrong, but don't you first want to bully a small fry without deep pockets and get a judgment supporting your claim, *then* go after the big companies with lawyers on retainers and deep deep pockets?

      --
      Returned Peace Corps IT Volunteer
    2. Re:And again by PFI_Optix · · Score: 3, Interesting

      It's not Texas, it's Marshall. They don't sue in Dallas or Austin or Houston or Lubbock or Longview or Lufkin...they always sue in Marshall. I'm a native Texan who has lived 30 years within a reasonable distance from Marshall, and all that town has going for it is ETBU and a rather attractive holiday scene around their historic courthouse. I must assume that building houses a court very friendly to the patent trolls, probably someone ignorant of technology enough to not recognize obviousness and prior art in the tech sector. They found a court that consistently supports them, and keep coming back.

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    3. Re:And again by hullabalucination · · Score: 3, Informative

      I live in Texas now. From what I've read, the reason that patent trolls like to file in the Eastern Texas District Federal Court in Marshall is that juries have historically been very sympathetic to patent holding plaintiffs, for whatever reason. The first cases filed in Marshall IIRC involved Texas Instruments and of course TI was counting on the home court advantage (although why Marshall instead of a Federal court closer to Dallas is beyond me. Maybe it's the lure of the Annual Fire Ant Festival). Apparently after TI's win(s), Marshall became known as the place to file if you had a patent case.

      Having also lived in California, Indiana, Illinois, Michigan, Missouri and Alabama, I'm pretty sure I could find several other Federal district courts in which to file in those states and get pretty much the same sort of jury, but Marshall was there first and got the reputation. Plus, they have the Fire Ant Festival and those other states don't. Never underestimate the draw of the Fire Ant Festival.

      Interesting page here explaining the situation with Marshall:
      http://www.marshall-chamber.com/pages/inthenews.php

      _ _ _ _ _

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    4. Re:And again by Lawmeister · · Score: 3, Insightful

      Or, if you are very confident in your patents and ability to successfully sue, go after the market leader so that when you win, the rest of the market will fall into line without much sabre rattling.

      Cisco's payment and licencing sends a very strong message to those faced with this new series of suits.

    5. Re:And again by Denis+Lemire · · Score: 3, Informative

      Wi-LAN WAS a real company. I've used some of their backhauls in the past, they were great.

      They failed to maintain a significant market share and are now a gutted litigation machine with no products to speak of.

      They are in the same category as SCO, once a significant player, now a miserable failure of an organization that is resorting to patent trash to try and make a buck.

  2. Who's missing? by 644bd346996 · · Score: 3, Interesting

    Another story more notable for what's missing than for what's included.

    Cisco (who also owns Linksys) is missing from the list of companies, despite being one of the biggest players in the wi-fi market. If they have already licensed the patents in question, that is a very important detail that should be explored.

    On the other hand, if Cisco has also been ignoring those patents, and the patent troll in question is not attacking Cisco, there is probably a very interesting reason.

    1. Re:Who's missing? by 644bd346996 · · Score: 4, Insightful

      I see that another poster has pointed out that they sued Cisco 3 years ago. So, why don't Reuters and the other wire services ever dig up those details on their own? Shouldn't they try to answer some of the obvious questions, rather than just post a notice that the lawsuit exists?

      I wish we had journalists instead of just reporters.

    2. Re:Who's missing? by __NR_kill · · Score: 3, Informative
    3. Re:Who's missing? by Knara · · Score: 3, Insightful

      Because articles written by journalists are complex and potentially difficult to read! That could alienate a sizable part of your potential audience!

      Besides, its much easier to produce "to catch a predator" over and over again, then pass it off as journalism, than it is to convince people that real news stories can't be contained in simple, bite-sized nuggets.

    4. Re:Who's missing? by jrumney · · Score: 3, Interesting

      Actually, these guys seem to have genuinely invented the work they hold the patents for, though they were working for the University of Calgary at the time - does the University allow its employees to hold the IP for inventions made in the course of their University funded research through private holding companies? If I was a Canadian taxpayer, I'm not sure I'd be happy about that.

    5. Re:Who's missing? by king-manic · · Score: 3, Informative

      Actually, these guys seem to have genuinely invented the work they hold the patents for, though they were working for the University of Calgary at the time - does the University allow its employees to hold the IP for inventions made in the course of their University funded research through private holding companies? If I was a Canadian taxpayer, I'm not sure I'd be happy about that. Universities normally have some sort of arcane policy about it. You invent X with grant money university skims Y and Z goes back to the inventors. It's fairly standard. Your tax dollars may fund it, but it's the inventors blood; sweat; tears; time; effort; intellect; experience; grad students; and ingenuity that makes it work. The university does get a cut. There have been times where the policy has screwed people out of great deals of money (University of Alberta: DNA sequencer) by botching the deals and only grabbing a small piece of an immense pie due to bureaucratic wrangling.
      --
      "There are more things in heaven and earth, Horatio, than are dreamt of in your philosophy."
    6. Re:Who's missing? by BenVis · · Score: 4, Interesting

      articles written by journalists are complex and potentially difficult to read! Seriously. Pick up a copy of the New Yorker magazine. Maybe you don't like their slant, or you think people from New York are snooty. Whatever. Grab a copy and read one of the full-length articles. Well, make sure you've got a good hour, those things are long. After regularly reading those for a few years, your typical AP article feels like a summary of what a journalist would write, minus most of the due diligence.
      --
      "Preceded by itself yields falsehood" preceded by itself yields falsehood.
    7. Re:Who's missing? by Rudisaurus · · Score: 4, Interesting

      I can confirm the PP -- I was around when Wi-LAN floated their IPO in the mid-90's. A fairly prescient friend of mine urged me and my co-workers to invest in the company because they had both patented and demonstrated their technology by that point and the IEEE was evaluating their protocol for use as a standard. I didn't invest in the IPO, although a few of my colleagues did, so I missed out on the 40-times share price increase as Wi-LAN rode the dot-com bubble to an absolutely dizzying height before collapsing back to their original value along with everyone else when the bubble burst.

      The University of Calgary has a wholly-owned company called University Technologies International (UTI) which exists to assist academics in obtaining patents, licensing new technologies, and attracting the attention of investors for seed money for start-ups -- something I would imagine pretty much any university does, these days.

      --
      licet differant, aequabitur
  3. Good! by Reality+Master+201 · · Score: 4, Insightful

    Maybe if enough scumbag IP holding companies extort enough money out of big corporations, those corporations will lobby congress to get the patent laws changed.

    Cause it sure looks like neither the best interests of the country and its citizens, nor general sanity are enough to get them to do anything. Here's hoping there's enough pressure from this to get some corruption going in our favor.

    And, yes, I know that's naive.

    1. Re:Good! by kebes · · Score: 4, Insightful

      Maybe if enough scumbag IP holding companies extort enough money out of big corporations, those corporations will lobby congress to get the patent laws changed. Only if those big corporations are losing more money to patent trolls than they are gaining through their own patent litigation (or via the market exclusion that their patents afford them). The problem is that the big companies generally benefit from the current patent system overall, even if sometimes they have to pay some small troll.

      Consider the Vonage situation. This company is being sued by all the large incumbents. The established companies have a stake in keeping patents strong, since they are able to use this legal system to shut down competition. Having to occasionally pay some other company for a patent they neglected to get first is just "the cost of doing business."

      I, too, wish that companies would lobby for a sane patent system. But, the problem is that even if big companies lose some money to frivolous patents, they are still sufficiently in control of the system that they win even more money from their own frivolous patents. Waiting for big business to save us from this mess is a mistake.
  4. Re:interesting here that -- by wizzard2k · · Score: 5, Informative

    They sued Cisco 3 years ago.

  5. You have to love it... by Lumpy · · Score: 3, Insightful

    Patents.... Legalized Extortion for the 21's century.

    How much more of this do we haveto have before everyone in big business realizes that it's all a bad idea?

    --
    Do not look at laser with remaining good eye.
  6. Actually by Anonymous Coward · · Score: 4, Informative

    Wi-LAN was an early innovator in the field of wireless stuff. They weren't formed as a patent holding company. Unfortunately, they couldn't compete in the post 802.11 market, and slowly withered away. They were part of the team that developed the WiMAX standard, and did a lot of pioneering work with OFDM. A year or so ago, they finally gave up and sold the various pieces of the company off to various other companies... *cough* fujitsu *cough*. Blame them.

  7. Missing the point of patents by mcrbids · · Score: 5, Insightful

    The basic idea behind a patent is to allow the patent holder "shelter time" to develop, market, sell, and profit from their new inventions.

    How can a company claim damages if they haven't done the above? Patents are what they are, but it strikes me as just silly - you might be in violation of the patent, but how can you, as the patent holder, claim damages without any proof that loss has occurred?

    --
    I have no problem with your religion until you decide it's reason to deprive others of the truth.
    1. Re:Missing the point of patents by Anonymous Coward · · Score: 3, Insightful

      The basic idea behind a patent is to allow the patent holder "shelter time" to develop, market, sell, and profit from their new inventions. The problem, of course, is that the current patent system doesn't make clear that the intention of granting a patent is to allow the technology to be developed.

      Nowadays, getting a patent solely to prevent your competition from developing it is considered a valid reason (even though it is the exact opposite of what was intended with the system). In fact, companies get patents for all kinds of reasons (to stifle competition, as part of a defensive war chest, to cover every contingency for future products, etc.) and very few of them actually have to do with the original intent of patents: to encourage innovation (and publication of the details of new inventions).

      Until patent law distinguishes between all these different cases, companies will continue to abuse it.
    2. Re:Missing the point of patents by Deag · · Score: 3, Insightful

      Does this not validate them somewhat though? If they invented it, and then produced it, but were undercut by others using their inventions, don't they have a point?

    3. Re:Missing the point of patents by zippthorne · · Score: 3, Interesting

      "allow the technology to be developed."

      Incorrect. The purpose of patents is to encourage inventors to publish their ideas. That can help spur additional development, but it also ensures that technology is not lost if the inventor goes out of business or buys a farm.

      --
      Can you be Even More Awesome?!
  8. Why now? by popo · · Score: 5, Interesting

    If I were the judge I would throw this case out.

    The onus of protecting rights should be on the holder of the rights.

    The strategy of patent holders must not be to "lay dormant" allowing numerous companies to infringe for a decade, and then when the market reaches critical mass, appear from the shadows with lawsuits.

    We've all seen this happen before of course, but in other areas of intellectual property, (Trademarks for example) it is the responsibility to prevent the mark from becoming 'commonly used'. Once it does, a trademark holder can lose the rights to the mark. There are many famous examples of this.

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    ------ The best brain training is now totally free : )
  9. easy first step to reform, ban "Forum Shopping" by plasmacutter · · Score: 4, Insightful

    Specifically, require all patent related cases to route through a centralized system in washington D.C.

    Multiple courthouses/justices are fine, even keep the status quo with their method of appointment, but the cases (primary and appeals) filed should be randomly assigned to a given judge's court.

    Removing the ability of troll companies to shop for particularly corrupt or incompetent forums should help reign in part of the problem and bring some regularity or balance to the overall system.

    --
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  10. Re:interesting here that -- by wizzard2k · · Score: 5, Informative
    They settled.

    As part of the agreement, Cisco also received a license to Wi-LAN's patent portfolio. Other terms and conditions of the agreement are confidential.
  11. I wonder.... by gravis777 · · Score: 3, Insightful

    What the patents actually are of, and when they were filed. Some friends and I setup and brainstormed in late 97 and early 98 about the possibility of wireless networking using the 900 MHz and the 2.4 GHz range. I saw the first consumer devices come out around 2000 or so. If I have documentation of this, and the patent was filed later, I wonder if I can file a prior art thing?

  12. Best Buy?!? by eyrieowl · · Score: 4, Interesting

    I must confess to being confused by that one. I understand (and abhor patent trolls) suing the manufacturers for not licensing the technology, but the storefront? Just going after someone with deep-pockets, or what? It's not actually a tenant of US law that you, as a seller, have to verify that all your wares are correctly licensed with clear patents/copyrights is it? How could a store ever be sure that all the electronic components in, say, the computers it sells are dispute-free?

  13. List of Patents by Anti_Climax · · Score: 4, Informative

    For those that are curious, a list of the patents Wi-LAN holds is here:

    http://www.wi-lan.com/patents/patents-issued.aspx

    --
    Even people that believe in pre-destiny look both ways before crossing the street.
  14. License holders are a good thing ... by AHumbleOpinion · · Score: 3, Insightful

    The license holders have nothing to add to the marketplace and so their not interested in cross licenses. They just want the money now, which stifles invention and progress.

    There is nothing inherently wrong with license holders. They provide one valid method for an investor to cash out on the invention. The fact that the system is currently abused does not mean we should throw it out. Should we get rid of email because there is spam? A firm that specializes in license holding for a particular technology or industry can be a useful "marketplace" for companies seeking to license innovations. Here is one example of a good license holder, the University of California. The University holds numerous patents with no intention to do anything more than license the invention. The licensing fees vary depending on the organization, small local firms are treated more favorably than international conglomerates, firms that employ or support faculty or students are treated more favorably, venture capitalists find the University's published list of available licenses a good source of ideas for new firms. University representatives that I have spoken with have mentioned that they know numerous serial entrepreneurs who come to them to find an interesting patent, develop a company, sell it, and return to repeat the cycle. Also, IIRC, the University gets 50% of the licensing fees, the faculty/student inventor gets around 30%, and his/her department gets the remainder.

  15. Local rules + pro-plaintiff bias by Infonaut · · Score: 3, Informative

    I must assume that building houses a court very friendly to the patent trolls, probably someone ignorant of technology enough to not recognize obviousness and prior art in the tech sector.

    The primary reason is that a few years ago the ED Texas set itself up specifically to be a venue for these kinds of cases. In 2002 there were 32 patent cases in ED Texas. In 2006 there were over 10x that number. They've developed a set of local rules that favor rapid resolution of cases. If you're a smaller patent troll going up against a larger patent holder, you want a speedy resolution. Otherwise, the big patent holder can bleed you dry with motion after motion, and extended discovery. The judges in ED Texas aren't idiots, and from what I've heard, the jurors aren't either.

    Still, the combination of local rules and a pro-plaintiff bias add up to a very favorable venue for trolls.

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