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Patent Troll Attacks Cable, Digital TV Standards

DavidGarganta writes "A patent troll firm in suburban Philadelphia, Rembrandt IP Management, is trying to force large cable operators and major broadcasters to pay substantial license fees on the transmission of digital TV signals and Internet services. The firm is apparently trying to get 0.5% of all revenues from services that supposedly infringe on the patents. The targeted companies include ABC, CBS, Fox, NBC, Comcast, Time Warner, Cox, Charter and Cablevision. According to MultiChannel News, Rembrandt's assault is especially aggressive, even for a patent troll: 'It is attacking two key technology standards used by the cable and broadcast industries, CableLabs' DOCSIS and the Advanced Television Systems Committee's digital-TV spec. "If they're successful, this could affect everything from the cost of cable service to the price of TVs," said the attorney close to the litigation, who spoke only on condition of anonymity.'"

164 comments

  1. What the hell... by kaos07 · · Score: 4, Funny

    What the hell is a patent troll?

    When I first read it I assumed it had something to do with internet trolling but the articles describes it as some sort of legitimate enterprise.

    1. Re:What the hell... by betterunixthanunix · · Score: 5, Informative

      Not sure if you are joking, but for anyone who is wondering what a patent troll is, it is a company that makes money simply by suing other companies for patent infringement. This is different from a company like Microsoft, that creates and sells other products, and is therefore stuck in a mutually-assured-destruction situation that prevents them from suing others for key patents. The problem with patent trolls is that they add absolutely nothing to society; most don't even invent the patented idea, they just buy it from someone else.

      --
      Palm trees and 8
    2. Re:What the hell... by webmaster404 · · Score: 3, Informative

      A patent troll is a company that just comes up with patents and whenever another company "infringes" on their many patents they sue them. Usually these patent trolls have no other business other then suing companies to make a profit. Think of SCO, only with patents.

      --
      There is no "disagree" moderation, and troll, flamebait and overrated are not valid substitutes
    3. Re:What the hell... by Anonymous Coward · · Score: 0

      "If they're successful, this could affect everything from the cost of cable service to the price of TVs," said the attorney close to the litigation, who spoke only on condition of anonymity.'"

      Anonymity? I'm not surprised. Going up against the cable industry, CNN, etc.
      I'd want to stay anonymous too. There's enough money in that group to send every
      guy named Vito or Tony in New Jersey after my ass.

      Come to think of it, that's what it will probably take to end these patent trolls.

    4. Re:What the hell... by Z00L00K · · Score: 1

      What the hell is a patent troll?
      A patent troll is a company or person that holds on to patents but never uses them except to cause problems and attempt to extort money from thriving businesses after they have been in action for several years.

      The fabled Trolls were often just collecting gold and never really used it, modern patent trolls are collecting patents and use that collection to collect gold.

      Effectively they are parasites that abuses the system.

      --
      If builders built buildings the way programmers wrote programs, then the first woodpecker would destroy civilization.
    5. Re:What the hell... by Anonymous Coward · · Score: 5, Insightful

      While I think all this patent troll stuff is bullshit, it is worth pointing out that if I accept your last statement, patent trolls ARE providing a service. By purchasing patents, these patent trolls provide a market for patents which puts money in the hands of small time inventors, who don't have the resources to commercialize their inventions. Without a patent market, it would be more difficult for small inventors to get paid. (Inventors inside companies already have R&D resources to convert patents to products.)

      The fact that these companies didn't invent the idea does not negate their claim. As long as we treat ideas as property, then people should be free to buy and sell that property. You can own your TV despite having not created it. You exchanged money for it in a mutually agreeable transaction.

      The real problem is the patent itself, not the troll. The troll just highlights the underlying problem. If every patent were as efficiently enforced as the few that fall into the hands of patent trolls, commerce would grind to a halt, and we would have to do something about it.

    6. Re:What the hell... by KDR_11k · · Score: 1

      While they are legal they are complete parasites IMO and I wouldn't mind seeing them forcefully removed as they hinder progress for their own gains.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    7. Re:What the hell... by baboo_jackal · · Score: 4, Insightful

      By purchasing patents, these patent trolls provide a market for patents which puts money in the hands of small time inventors, who don't have the resources to commercialize their inventions.
      That's an interesting take on patent trolls. But it's kind of like a guitar player selling his guitar to pay for a kick-ass amp... Whoops.

      Without a patent market, it would be more difficult for small inventors to get paid.
      How about this instead? Just make and sell your damn invention. If it's that good, I should think you'd have no problem. Want to sell out, but just a little? OK, how about selling exclusive licensing rights to a bigger company for royalties? I don't know. It seems to me that there are a *lot* of other ways small inventors can profit from a good idea that *don't* include selling the exclusive rights to create their widget to a company who intends to not make the widget and just sue others who do.

      Maybe this is an oversimplification, but if you don't intend to make the damn thing you want to buy the patent to, you shouldn't be allowed to buy it in the first place.
    8. Re:What the hell... by KDR_11k · · Score: 3, Funny

      Why pay professionals? Just tell every redneck out there that this company wants to make their TV more expensive and the problem solves itself.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    9. Re:What the hell... by Anonymous Coward · · Score: 0

      There's rednecks in New Jersey?

    10. Re:What the hell... by StrangerAtRandom · · Score: 1

      A I was reading the replys to your question and it does not appear that anyone really knows what a patent troll is. A patent troll is someone who patents something that they did not invent. Back when digital came out, the creater did not think to patent it so it went unpatented. untill a patent troll realized this, and patented it. So now legally they own the rights to the digital patents. I hope this story is big enough to change the patent system that has worked for so long. This person is trying to extort money from companies, legally. and thats wrong.

    11. Re:What the hell... by LilBlackDemon · · Score: 1

      I almost choked with laughter because I'm eating a sandwich called the "Tony Soprano" from Vito's Deli (Hoboken, NJ).

    12. Re:What the hell... by xero314 · · Score: 1

      There's rednecks in New Jersey? North or South? (for those of us in the know, yes one of these two sections of Jersey is full of rednecks.)
    13. Re:What the hell... by Wolfbone · · Score: 2, Insightful

      This is different from a company like Microsoft, that creates and sells other products, and is therefore stuck in a mutually-assured-destruction situation that prevents them from suing others for key patents. The MAD stalemate may well be a fair description of the situation between large patent portfolio holders but it doesn't apply in the asymmetric case. Microsoft's VP of IP, Marshall "Father of the IBM Tax" Phelps, would probably consider it a failure if he had to drag some small company into Court* - and that is actually true of most patent trolls too - but Microsoft has just as aggressive a patent licensing strategy as IBM did when Phelps was there.

      * "I'm not running a litigation shop, I'm running a licensing shop." -- Marshall Phelps.
    14. Re:What the hell... by SL+Baur · · Score: 2, Insightful

      This is different from a company like Microsoft, that creates and sells other products A curious example. Microsoft is currently trying to get a "standard" adopted with submarine patents and they've never invented anything past a BASIC interpreter, prefering to buy the technology and adapt it. If their Windows monopoly ever (seems to) fails, they are prime candidates for becoming patent trolls.

      A better example is Ford, though they have fallen on hard times of late.
    15. Re:What the hell... by aim2future · · Score: 1

      The real problem is the patent itself, not the troll.

      I agree that the patent is a problem, but patent trolling should be declared a criminal act.

      The business idea of a patent troll is to purchase patents and sue others, which is an abusive and counter-productive way to deal with the privilege of a monopoly given to the inventor in exchange of disclosure.

      I would want to go that far to claim that patents should not be considered assets, and should only be possible to sell/transfer under very strict conditions, assuring that the final owner will continue to develop and do business within the context of the patent. If this can not be fulfilled the patent should be abolished.

    16. Re:What the hell... by harlows_monkeys · · Score: 1

      The problem with patent trolls is that they add absolutely nothing to society; most don't even invent the patented idea, they just buy it from someone else

      So let's say you invent something really cool. (You, personally). You put 10 years of effort into it, and sunk your life savings into the research and development. You get a patent, and approach a big company to license it. You hope to get rich, but would be happy to at least get back your life savings.

      The big company laughs in your face, and rips off your invention. What do you do? You can't afford to sue (patent suits are expensive).

      Answer: you sell an interest in your patent to someone who can afford to sue. They assume the risk that the patent may be found to be invalid, or the alleged infringers may not actually be practicing the patent, or that the courts will determine the damages are low. They put up the money to sue (if it gets to that--when they approach that big company and ask it to license the patent, the big company might not laugh, now that they know they are dealing with someone who has the resources to sue). Result: you might actually come out ahead after spending 10 years and all your money developing your invention.

      What you call a "patent troll" is basically a patent dealer. The add value to society the same way dealers in any other item do--by allowing an efficient market in that item to exist. Every bad thing that has been attributed to "patent trolls" is in fact due to flaws in the patent system itself, such as the PTO's propensity for granting patents that should not have been granted due to prior art or obviousness, and has nothing to do with patent dealership.

    17. Re:What the hell... by harlows_monkeys · · Score: 3, Informative

      Here's a paper on this, which goes into great detail on the role of patent dealers in the market from an economic and policy point of view.

    18. Re:What the hell... by OMNIpotusCOM · · Score: 1

      The problem... is that they add absolutely nothing to society Sorry, thought you were talking about people who comment on biased blurbs. Make this quote your signature, it kind of puts things into perspective. It's really funny to me that there is an article not an inch away from this one that discusses CNN and their use of user-generated articles to use as news, wherein everyone was knocking the user-generated stuff as biased and unreliable. I think all the crazies get a day pass on Sunday and use their time making inconsistent comments/stories on Slashdot.
    19. Re:What the hell... by Fyre2012 · · Score: 3, Interesting

      I think you touch on an interesting point...
      The underlying theme it seems would be greed. If a small inventor was concerned only with servicing a particular need, than they shouldn't have much issue. Thier motivation to be a basement company one night, and something the size of Google the next seems to cloud their judgement.

      Many people these days just want to 'get rich and quick'. This mentality is in direct conflict with the mindset of small business. Small business is all about community and the network of clientele and respect you build up by servicing your clients with respect and expectation. (do what you say, it goes farther than most people think!)

      When you hold the 'rights' to your idea too high, they inflate in proportion with one's ego and the rise / fall of the almighty ruler (the dollar).

      Didn't the dot com bust teach people about the devaluation of an idea?

      --
      This is not the greatest .sig in the world, no. This is just a tribute.
    20. Re:What the hell... by betterunixthanunix · · Score: 1
      That sounds more like a critique of large corporations than a defense of patent trolls, combined with a description of someone who went into a business market with insufficient resources. Perhaps a better plan would be to seek venture capital to help cover legal fees before directly approaching a large corporation, or to find a business partner to help you in seeking venture capital.

      Patent trolls are a problem; being a consequence of a larger problem does not make patent trolls any less problematic, much in the same way that a stomach infection causing one to vomit does not make the vomiting itself less problematic. An economy based on deciding who came up with an idea first is completely ludicrous, and companies that thrive in such an economy are emblematic of the problem.

      --
      Palm trees and 8
    21. Re:What the hell... by sumdumass · · Score: 1

      I don't think there would be as much of a problem is there was a working prototype at the time of the patent application and no application could be filed until one was made and demonstrated. Also, it would be less of a problem if these people would be forced to label their products as patent pending instead of waiting for something to become the industry norm and then claiming patent rights to it. You could then sell the patent to other people who could follow these rules too and most of the problems/issues would disappear.

      I say this because industry in itself could valuate the license costs, potential licenses cost and everything else and decide whether going that direction is a good thing or not. I mean an industry wouldn't bank their existance on something they couldn't secure the rights to use in the future. And if these people where honestly innovative and novel, there would be a place for them regardless of who owns the patent.

    22. Re:What the hell... by slater86 · · Score: 1

      I first read it as Patient troll. I figured that he was prepared to be left waiting a while.

      --
      When people ask if I'm an optimist, I say "I hope so". --Bill Bailey
    23. Re:What the hell... by HiThere · · Score: 1

      A heart wringing tale of the wronged inventor. I'm sure it's happened. I'm also sure that much more often someone puts his heart and soul into building a small business, and then a patent troll steals it.

      Yes, steals. That's the only appropriate word. Perhaps it's because he doesn't have enough cash to defend himself. (Borland nearly went broke defending itself against invalid patent claims. And Borland was both relatively large and hugely popular.)

      Also, a "I made a vague description of the invention and filed it first" doesn't imply that anyone else even KNEW about the patent. Or understood that it applied to what they were doing. So you can't say that the second party didn't really invent it. In fact, given the kind of vague garbage that patents generally consist of, I deny that the first party actually invented it unless they can produce a working model created before they encountered the second party's work.

      --

      I think we've pushed this "anyone can grow up to be president" thing too far.
    24. Re:What the hell... by Lost+Engineer · · Score: 1

      An economy based on deciding who came up with an idea first is completely ludicrous Can I steal that for my sig?
    25. Re:What the hell... by Lost+Engineer · · Score: 1

      By that definition, which I'm not sure is definitive (is there a definitive definition?), this company is not a patent troll (at least this time). The article indicates they bought the patent indirectly from AT&T. Presumably someone working for AT&T invented the technology.

    26. Re:What the hell... by tftp · · Score: 1
      How about this instead? Just make and sell your damn invention.

      A sci-fi writer invents a viable ion syringe (where, say, the drug is delivered as a stream of ions that are accelerated by an electric field and penetrate the unbroken skin.) Should he abandon his writing career and become a pharmacologist, an MD, and a genius businessman to "make and sell his damn invention"?

      It does seem far more practical to just sell the patent to someone who is better equipped to deal with manufacturing and selling. It offers less money but less pain too, and many people value their time. So next time I invent a Multi-tool don't expect me to round up VCs and Angels for financing. It's too hard. I've done my job already (inventing) and have no interest in business.

      IMO, the patent trolls are most awful not because they hold valid patents for truly novel devices. If a patent exists for a replicator (ST) then it will be licensed by many manufacturers, gladly and for any fee (they will duly replicate more money :-) The trolls are the worst when they come up with an obscure, unrelated or outright submarine patent on some modern technology that developed on its own without ever seeing the patent. And that follows from the concept that inventor's rights begin when the patent office sees the patent. The rights should start when the public sees the invention.

    27. Re:What the hell... by Detritus · · Score: 1

      The problem is that some big companies will steal your invention, and laugh at you if you threaten them with legal action. This happened to one of my relatives. He couldn't afford the legal fees to fight them in court.

      --
      Mea navis aericumbens anguillis abundat
    28. Re:What the hell... by Anonymous Coward · · Score: 0

      The world isn't that simple.

      What you're advocating would mean that only big corporations should be allowed to get patents because they can afford to build things. A small guy would either have to bootstrap or get lucky as hell and get some sort of external capital (angel, VC). Having gone through the process, I can attest to that. Getting the patent alone cost me in excess of $6k, out of my own pocket. A prototype product cost another 6 months labor + $30k. Going from prototype to production cost another $500k. At this point, I still haven't been able to optimize for cost. Oh, and UL safety & FCC testing cost another $35k. I happened to get lucky and sign on a big customer.

      At any point, that could have fallen apart. In fact, if I lose that one customer even now, I'm hosed. When put into that position, you try to get any money you can as quickly as you can. If most of the value is in the IP, then you're going to try to get top dollar for that patent.

      Licensing the IP only works if you have a basic commodity. If it's unproven, the licensee is basically investing in your company. At that stage, it's probably cheaper for them to just buy you out. In any event, you're not in a power position to broker much of anything. Your attorney fees are going to be quite high as well. And since licensing requires the licensee to sell something, your compensation is based on a revenue stream that you have no control over. You could actually walk away with nothing.

      I can understand your apprehension with the whole process. I felt the same way. I'd encourage you to try to start your own venture though, and you'll get a much richer appreciation for how it actually works.

    29. Re:What the hell... by betterunixthanunix · · Score: 1

      Sure.

      --
      Palm trees and 8
    30. Re:What the hell... by baboo_jackal · · Score: 1

      OK, I see your point. I guess it depends on *what* it is that you've invented and are trying to sell. My experience has been a little different - a family member and I started manufacturing a part used in steel refining based on an innovative, patentable concept that, on paper, would be absolutely superior to the standard version. At the time, we weren't worried about the IP - we were something like $500K deep in startup costs, and we were just trying to sell the damn thing.

      Ultimately, it worked out - but not quite how we thought. We weren't able to make the "innovative" concept work in trials, and we switched to manufacturing a product just like what everybody else was making, but a bunch cheaper - the companies we were competing with are *big*, but also not accustomed to actual competition. We were able to undercut them on price at a bunch of mills and eventually end up with enough sales to stay afloat.

      I've since moved on to other things, and my family member is happily making these things, and in the black. Someday, he may go back and try the other design... (which *still* isn't patented)

      Anyway, I guess my concept of patents was probably colored by my own experience, and also by one other thing: We rented space in a machine shop to make our product, and there was this other guy who rented some space next to ours. He was manufacturing some sort of prosthetic joint piece, and he had a patent, and the capacity to manufacture a buttload of them - in fact, he already *had* made a whole bunch of them. They worked great - I mean, the guy used it himself (he had lost a limb and I guess was sick of the problems with the standard prosthetics out there, and decided to make a better one). But instead of just selling the damn thing, he kept holding out for "the Big Contract," that would make him insanely rich overnight. He was always flying out to demo his product to all these huge companies, hoping they'd buy him out. One day, my partner asked him, "Why don't you just start selling them? I mean, they're clearly superior. Just put the damn things up for sale on eBay, or whatever!"

      Anyways, this guy is now selling off his machines to pay his rent and pay off his debt while we're in the black. He still hasn't sold *one* of his product. I guess my feelings on patents are this - Patents are not lottery tickets. Anyone hoping to get-rich-quick off their idea through selling their patent is misusing the system. Good Ideas are free, and gee, everybody sure has them. But you've got to be willing to actually do the work to make your Good Idea a reality. Using patents as a shortcut to the payoff is lazy and reprehensible.

    31. Re:What the hell... by vuffi_raa · · Score: 1

      What the hell is a patent troll? a creature that lives under a copyright bridge and eats goats.
  2. That's *Dr.* Patent Troll by RealGrouchy · · Score: 2, Funny

    "I didn't go to Patent Troll medical school to be called 'Mister'."

    - RG>

    --
    Hey pal, this isn't a pleasantforest, so don't waste my time with pleasantries!
    1. Re:That's *Dr.* Patent Troll by TheVelvetFlamebait · · Score: 1

      Patent Troll medical school? That gives me an idea for a patent!

      Have your bank details ready when I get back.

      --
      You know, there is a difference between trolling and pointing out the flaws in your reasoning. Just saying.
  3. Old news now? by moezaly · · Score: 2, Interesting

    Havent they learnt anything from SCO and other Patent Trolls. It never works... but the again they have nothing else to do.

    1. Re:Old news now? by betterunixthanunix · · Score: 5, Insightful

      SCO isn't a patent troll. SCO does have a business that is not based on suing others for patent infringement, and that's why they are in so much trouble now: countersuits. A patent troll is immune to being sued because it does not distribute anything, it just makes money through royalties and lawsuits, and so can't really be sued for anything. It is actually a very dangerous entity, because it has nothing to lose.

      --
      Palm trees and 8
    2. Re:Old news now? by Anonymous Coward · · Score: 0

      Havent they learnt anything from SCO and other Patent Trolls. It never works...

      1) SCO is not a patent troll, their business is (was) selling Unix.

      2) Eolas is a patent troll, the only business they've ever done was suing Microsoft for patent infringment. I'd say that it worked pretty well for them.

      Just as a reminder: a patent troll is someone who sits on a patent until someone else has made a lot of money from the idea it covers -- or one that's close enough -- and then sues.

      Getting or buying a patent is relatively cheap, compared to what it costs to build something and market it. Also, just sitting on it until someone else is successful shifts all risk to your future victims. You won't hear of a patent lawsuit about a failed idea. Eolas didn't even bother to sue anyone else, IIRC.
    3. Re:Old news now? by Doctor_Jest · · Score: 1

      Indeed, SCO may not be a patent troll... but they certainly are of the garden variety troll, using litigation to prop up a failing business model, extort money, and generally chill the air surrounding a competing (or not, depending upon your point of view) technology/product.

      The fact that they failed in every endeavor is not because the system works, but that when you get knowledgeable participants, sometimes it is difficult (impossible) to fool them as one would fool the great unwashed.

      --
      It's the Stay-Puft Marshmallow Man.
    4. Re:Old news now? by Anonymous Coward · · Score: 0

      stfu, SCO owns UNIX. ... now, this is trolling :)

    5. Re:Old news now? by hullabalucination · · Score: 3, Insightful

      Eolas is a patent troll, the only business they've ever done was suing Microsoft for patent infringment.

      Not quite. http://www.eolas.com/research.html

      Dr. Michael Doyle of Eolas is actually a well-respected researcher in bioinformatics, is partnered with the University of California and demonstrated a working plug-in enabled browser at Xerox PARC in 1993. He is, incidentally, the son of a noted inventor, so the urge to create seems to run in the family. The company's other projects include SAGA, Fios, Zmap and ODIN.

      In 1994, he offered to license the plug-in technology to Microsoft and was rebuffed. So, he went after them. Incidentally, Eolas' license page specifically states that Dr. Doyle is a supporter of open source and non-commercial uses covered by this so-called "906 patent" are allowed via the issuance of a royalty-free license. http://www.eolas.com/licensing.html

      As much as I hate patents, Eolas isn't the patent troll that some folks make then out to be; Doyle's idea was to build a browser-centric platform for the biomedical industry, and the company actively does software research and creates actual technologies. Microsoft's violation of the "906" patent made Eolas' platform project commercially nonviable, at least in Eolas' eyes and Doyle has stated his case that there were no legal alternatives after Microsoft refused to license the technology from them in '94.

      And lest anyone weep for Microsoft, this is just an example of "what goes around, comes around," as VirtualDub developer Avery Lee http://en.wikipedia.org/wiki/VirtualDub#Advanced_Systems_Format_support can tell you.

      SCO, on the other hand, bought what they thought at the time was exclusive ownership of somebody else's (Bell Labs/AT&T, University of Ca.) technology, whole cloth, made little if any improvement to it, and attempted to use it as a patent/copyright hammer to flatten other software projects that demonstrably violated none of SCO's IP/licenses/patents. At least, none that SCO could ever prove in court. I would consider SCO much closer to a patent troll that Eolas, as they didn't invent the hammer they were attempting to wield. Eolas, at least, did design and build their own hammer.

    6. Re:Old news now? by HiThere · · Score: 1

      Not so. The old management bought the product. On the way out they tried to tell the incoming management that this didn't include the kind of enforcement rights the new management wanted. The new management refused to believe them ... or at least that's what they claim.

      --

      I think we've pushed this "anyone can grow up to be president" thing too far.
    7. Re:Old news now? by hullabalucination · · Score: 1

      The old management bought the product.

      Not possible, as the University of California had significant IP in System V (going back to the 70's) and they've never transferred/assigned their rights to any entity other than BSDi. You can read here how AT&T/USL's attempted lawsuit against BSDi/UC over BSD Networking Release 2 made this pretty clear:
      http://www.oreilly.com/catalog/opensources/book/kirkmck.html

      So, SCO's argument changed mid-trial from "Linux violates UNIX System V IP" to "IBM violated license terms," and even that was shot down by Judge Kimball.

      By the way, you can see a copy of UC's license to AT&T over contributed code/IP and documentation here:
      http://cm.bell-labs.com/cm/cs/who/dmr/bsdi/bsdisuit.html

    8. Re:Old news now? by HiThere · · Score: 1

      That's why I was kind of vague about exactly what they bought. It at least included the right to reprint some documentation and a sales network.

      --

      I think we've pushed this "anyone can grow up to be president" thing too far.
    9. Re:Old news now? by Doctor_Jest · · Score: 1

      *applause* textbook... textbook...

      --
      It's the Stay-Puft Marshmallow Man.
  4. Ahhh by cloakable · · Score: 5, Insightful

    Aren't patents wonderful? Spreading innovation everywhere!

    --
    No tyrant thrives when every subject says no.
    1. Re:Ahhh by betterunixthanunix · · Score: 4, Interesting

      I've said for a while that patents should be non-transferable and automatically revoked if the patent holder does not market the idea. Lawsuits are, of course, not a form of marketing. Patent trolls add nothing to society, and therefore defeat the point of the patent system. Why do we still tolerate them? Virtually every company that produces something is threatened by patent trolling, and patent royalties significantly increase the price of consumer goods. We can have a patent system, we just need to completely reform it.

      --
      Palm trees and 8
    2. Re:Ahhh by earthforce_1 · · Score: 1

      I can see one useful purpose of so called "Patent trolls."

      Lets say you are a brilliant engineer/inventor, but a lousy businessman. You like to tinker away in your workshop, but have no ability or interest in marketing, managing employees, or filling out business tax forms. So you come up with ideas, and let somebody else handle the patent licensing so you can get back to doing what you love - inventing new stuff.

      The real problem is that there are a lot of bogus patents granted that shouldn't be, and there needs to be better control over "submarine" patents. You shouldn't be able to pop up years later and raise patent claims against well established industry standards - Once the draft specification has been published, the onus should be on patent holders to come forward with any claims within a reasonable amount of time, say six months. You snooze, you lose.

      --
      My rights don't need management.
    3. Re:Ahhh by betterunixthanunix · · Score: 2, Insightful
      It is one thing if the invention is actually being marketed by the patent holder or his representative. That is not what patent trolls do. Patent trolls are parasites, in that they produce nothing at all but still turn a profit, by legally manipulating companies that actually produce and market their products into paying royalties. It does not encourage invention, because the "inventor" who gets royalties never actually shared his invention with the companies that are paying him, not even under a loose definition of "share" that involves selling the product and having the other companies copy it.

      This is dangerous behavior. There is no incentive for a patent troll to enter into a cross-licensing scheme, because they have no need for a license from someone else. There is no incentive for a patent troll to ever collaborate with anyone, because the patent troll just bought its patents rather than develop the ideas. The threat to actual inventors and companies that produce actual products is enormous, especially for small companies in obscure markets.

      --
      Palm trees and 8
    4. Re:Ahhh by Beriaru · · Score: 1

      In Europe (or at least in Spain) you have to present a WORKING PROTOTYPE of the thing you want to patent to have it granted.

      Voila: no more patent trolls!

    5. Re:Ahhh by The+Empiricist · · Score: 1

      I've said for a while that patents should be non-transferable and automatically revoked if the patent holder does not market the idea. Lawsuits are, of course, not a form of marketing. Patent trolls add nothing to society, and therefore defeat the point of the patent system. Why do we still tolerate them? Virtually every company that produces something is threatened by patent trolling, and patent royalties significantly increase the price of consumer goods. We can have a patent system, we just need to completely reform it.

      There is an argument that patent trolls make a contribution to innovation the same way that stock markets contribute to the economy. When purchasing stock in a company on the open stock market, you buy a piece of the company but you aren't directly contributing to its future. Your investment goes to the former owner of the stock, not the company you are investing in. However, if you go trace that stock from previous owner to previous owner, eventually you get to the underwriter who did provide funding to the company. It would have been harder for the company to find those original investors if the issued stocks were non-transferable.

      In a similar manner, patent trolls may provide an incentive for investment in technologies, and public disclosure through the patent system, because they provide a market for the patent rights. Why should a technology producer bother getting caught up in the ugly and expensive process of trying to enforce a patent when it is easier to sell the patent to a troll, keep a non-exclusive license to the technology, and continue focusing on the technology producer's core business?

      Without the possibility of transferring the patent rights to a troll, and thus quickly capitalizing on the enforcement rights, the company may be less willing to invest in technologies, especially if competition is already strong and the likelihood of success is small. Or, the company may focus more on keeping the technologies secret, limiting the ability of others to learn from those technologies if the company goes belly-up or is just really good at maintaining secrecy.

    6. Re:Ahhh by Z34107 · · Score: 1

      In Europe (or at least in Spain) you have to present a WORKING PROTOTYPE of the thing you want to patent to have it granted.

      We do that here in America, also - but generally, only if the feasibility of the invention is in question.

      Say somebody tries to patent a warp drive. (Evidently this happens a lot.) The Patent Office will ask for a working prototype to discourage certain types of magical thinking.

      But, this wouldn't solve our problem: You can have a working prototype of something completely obvious that has been done before and shouldn't be patented.

      --
      DATABASE WOW WOW
    7. Re:Ahhh by HughsOnFirst · · Score: 2, Insightful

      Working prototype oh yeah?

      Patent number: 4666425

      This invention involves a device, referred to herein as a "cabinet," which provides physical and biochemical support for an animal's head which has been "discorporated" (i.e., severed from its body). This device can be used to supply a discorped head with oxygenated blood and nutrients, by means of tubes connected to arteries which pass through the neck. After circulating through the head, the deoxygenated blood returns to the cabinet by means of cannulae which are connected to veins that emerge from the neck. A series of processing components removes carbon dioxide and add oxygen to the blood. If desired, waste products and other metabolites may be removed from the blood, and nutrients, therapeutic or experimental drugs, anti-coagulants, and other substances may be added to the blood. The replenished blood is returned to the discorped head via cannulae attached to arteries. The cabinet provides physical support for the head, by means of a collar around the neck, pins attached...

    8. Re:Ahhh by Chaos+Incarnate · · Score: 1

      Non-transferable is one thing. But why should someone have their patent revoked because they don't have the resources to market it? Then companies, etc. have no incentive to work out a deal with the patent holder; they simply have to wait for the patent to expire due to lack of use, and then can produce the product regardless.

      --
      Benford's Corollary to Clarke's Law: "Any technology distinguishable from magic is insufficiently advanced."
    9. Re:Ahhh by JohnnyBGod · · Score: 1

      There's a video you might want to see.

      I've looked, briefly, for something that debunks it, but I haven't found anything. Though I haven't tried really hard, to be honest.

    10. Re:Ahhh by russotto · · Score: 1

      I can see one useful purpose of so called "Patent trolls."

      Lets say you are a brilliant engineer/inventor, but a lousy businessman. You like to tinker away in your workshop, but have no ability or interest in marketing, managing employees, or filling out business tax forms. So you come up with ideas, and let somebody else handle the patent licensing so you can get back to doing what you love - inventing new stuff.


      Unfortunately, it doesn't work. They're out looking for people to fleece, and you (being a lousy businessman) look ripe for the fleecing. Yes, they'll handle the patent licensing for you. But they'll also take the lion's share of any money involved. If they're especially evil, you'll actually end up paying them to take it all.

      In any successful partnership between businesspeople and technical people, the businesspeople always end up on top. How much the technical people get is simply a matter of the benevolence of the businesspeople.
    11. Re:Ahhh by SEAL · · Score: 1

      In addition to being non-transferrable, patents should be assigned only to the person(s) who create them. Corporations should not be allowed to amass patent portfolios. In other words, when one of those PhD researchers decides to leave Microsoft, he takes his patents with him.

      I think in a free market it is certainly acceptable for Microsoft to highly compensate that person so he would stay with the company. But that's much different from the company owning the patent itself.

  5. Comment removed by account_deleted · · Score: 4, Insightful

    Comment removed based on user account deletion

  6. Innovation by vtcodger · · Score: 4, Insightful
    Isn't it remarkable how patents stimulate innovative litigation? Think of the tragedy if we just junked the whole nutty system. Imagine the packs of feral, unemployed lawyers roaming the streets attacking innocents.

    Sooner or later, we'll save ourselves untold trouble if we vastly scale back the notion of Intellectual (imaginary) property to something relatively sensible.

    --
    You can't see ANYTHING from a car, You've got to get out of the goddamned contraption and walk...Edward Abbey
    1. Re:Innovation by Firethorn · · Score: 4, Funny

      Imagine the packs of feral, unemployed lawyers roaming the streets attacking innocents.
      Step 1: Open a limited hunting season
      Step 2: Open a general hunting season
      Step 3: General bounty
      Step 4: Hire professional hunters for extreme or dangerous areas.

      Personally, given the urban nature of feral lawyers I'd propose at least an initial hunting season be limited to experienced bow hunters.

      --
      I don't read AC A human right
    2. Re:Innovation by vtcodger · · Score: 1
      ***Personally, given the urban nature of feral lawyers I'd propose at least an initial hunting season be limited to experienced bow hunters.***

      Well, yeah ... But if the arrows don't work, the hunters get nukes. OK?

      --
      You can't see ANYTHING from a car, You've got to get out of the goddamned contraption and walk...Edward Abbey
    3. Re:Innovation by Nerdfest · · Score: 3, Funny

      Funny, I've had the same idea for the past 10 years or so. I guess I should've patented it ... oh well. Oh well, I could still have the joy of showing my future grandchildren the Mercedes and BMW emblems mounted over my fireplace and saying "Yep, that one was from an IP lawyer ... got him from almost 300 yards".

    4. Re:Innovation by grumling · · Score: 2, Insightful

      It would help if the Patent office was properly funded and maintained the spirit of the law (innovation should be rewarded), instead of what we have.

      --
      "Well, good luck finding a judge that doesn't run a bestiality site."
    5. Re:Innovation by FearForWings · · Score: 1

      Only if the nukes get dropped from space...its the only way to be sure.

      --
      I don't know about angles, but it's fear that gives men wings. -Max Payne
    6. Re:Innovation by aproposofwhat · · Score: 1

      Personally, given the shark-like nature of lawyers, I'd propose spear guns ;o)

      --
      One swallow does not a fellatrix make
  7. This is a Bad Thing ? by psycho+sparky · · Score: 2, Informative

    The targeted companies include ABC, CBS, Fox, NBC, Comcast, Time Warner, Cox, Charter and Cablevision.

    1. Re:This is a Bad Thing ? by ohtani · · Score: 1

      "this could affect everything from the cost of cable service to the price of TVs". So yes, yes it IS a bad thing.

      --
      Pancakes. Oh I blew it.
    2. Re:This is a Bad Thing ? by jrothwell97 · · Score: 1

      So we're going back to the age of 'an eye for an eye' then? The objection here is that patent trolling is wrong, whoever is the aggressor and whoever is the victim.

      --
      Those using pirated Tinysoft signatures(TM) are a real threat to society and should all be thrown in jail.
    3. Re:This is a Bad Thing ? by Vectronic · · Score: 1

      In the long run? possibly not...

      In the short-term? most deffinetly if they manage to do it successfully, almost everyone deals with at least 3 of those companies on a day-to-day basis... even if they arent under that name (WinAmp = AOL = TimeWarner) depending on the final terms, this could mean signifigant increases in expenses to those companies, and thereby trickling down to subsidiaries, eventually eating out of your pocket...

      Theoretically if the expenses were high enough it may run some of them into bankruptcy... eventually the people will bitch enough, or other technologies and services will cheapen to balance it out... so in that aspect it may be "good"... but is it really?

    4. Re:This is a Bad Thing ? by MrMr · · Score: 1

      Again, how is that bad? The patent system is deliberately designed to transfer more money from consumer to patent owner. I'd say the patent troll is just an extremely environmentally friendly way of doing so: by not producing anything at all in return.

    5. Re:This is a Bad Thing ? by arivanov · · Score: 5, Informative

      I do not know what their patent is, but the ideas from the DOCSIS MAC layer are also used in all 802.11 standards as well as satellite modem standards. The MAP metod to mix CSMA-CD and mandatory transmit opportunities is the de-facto method for managing Layer2 QoS in all subscriber oriented tech that has hit the market for the last 10 years. There are other places where other network standards have heavily borrowed from DOCSIS.

      So if their patents are anywhere close this it will get extremely entertaining...

      --
      Baker's Law: Misery no longer loves company. Nowadays it insists on it
      http://www.sigsegv.cx/
    6. Re:This is a Bad Thing ? by Opportunist · · Score: 2, Funny

      Can't get any more carbon neutral. But then again, they're wasting precious oxygen, by breathing.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    7. Re:This is a Bad Thing ? by macdaddy357 · · Score: 1

      These mega-corporations could easily hare mafia hit men, and have the patent trolls killed. That would have quite a chilling effect on patent trolling. Make 'em sleep with the fishes, and the problem will go away, Capiche?

      --
      How ya like dat?
    8. Re:This is a Bad Thing ? by grumling · · Score: 1

      Google Patent search:

      http://www.google.com/patents?id=YI2ZAAAAEBAJ&dq=Rembrandt+IP+Management

      A very specific patent for adaptive equalizers. Important parts to digital receivers, but not essential. Basically, an adaptive EQ allows a transmitter or receiver to eliminate standing waves from transmission lines (like 75Ohm coax). If proper installation techniques are used, the adaptive EQ won't even be switched in. It is only if the SWR increases enough to cause problems. We're not talking about radio transmitters, so the reflections won't damage anything, but it will cause a lot of problems with distorted signals that can't be copied.

      And 1% of all revenue for an obscure DSP? Good luck with that. I hope they have a few more that Google isn't finding.

      --
      "Well, good luck finding a judge that doesn't run a bestiality site."
    9. Re:This is a Bad Thing ? by TechyImmigrant · · Score: 1

      >There are other places where other network standards have heavily borrowed from DOCSIS.

      Yes, 802.16 borrowed PKM (Privacy and Key Management) from DOCSIS. It was such a pile of poo that we had to throw it out and write PKMv2 to make it secure.

      --
      Evil people are out to get you.
    10. Re:This is a Bad Thing ? by Dunbal · · Score: 1

      I'd say the patent troll is just an extremely environmentally friendly way of doing so: by not producing anything at all in return.

            It produces lawyers. And the more money changes hands, the more lawyers will appear. I would rather breathe 3% CO2, have to run my air conditioner at full crank in the middle of a Canadian winter and eat Soylent Green than live in a world where every other person is a lawyer!

      --
      Seven puppies were harmed during the making of this post.
    11. Re:This is a Bad Thing ? by UnderCoverPenguin · · Score: 1

      Digital content over cable TV was done at least 23 years ago, probably longer. 12 years, I was working in a manufacturing plant wired like this. They had standard, off the self cable TV cabling and equipment. The only part not of cable TV origin were the "modems", which worked at either 4 or 8 Mbs depending on whether one or two channels were used (kind of like single vs dual channel ISDN). They called this system MAP - "Manufactruing Automation Protocol". It was a 7 layer stack based on the ISO "Open System Interconnection" family of standards. Friends of mine were working on it back in 1984 through 1988 (I forget when the first real installations were made).

      --
      Don't try to out wierd me, three-eyes. I get stranger things than you, free with my breakfast cereal. --Zaphod Beeblebr
    12. Re:This is a Bad Thing ? by Anonymous Coward · · Score: 0

      So how is that a bad thing? It will get the sheeple away from the bran-drining, fat inducing idiot box commonly known as the Television.

    13. Re:This is a Bad Thing ? by N7DR · · Score: 1
      I do not know what their patent is, but the ideas from the DOCSIS MAC layer are also used in all 802.11 standards as well as satellite modem standards.

      And WiMAX. To a rather good approximation, WiMAX is DOCSIS-over-radio.

      It would be nice to get some detailed information about what exactly these Rembrandt people are claiming, but TFA seems to be devoid of any technical details.

      TFA does also talk about another lawsuit, filed jointly last November by the big data-over-cable equipment manufacturers against Rembrandt, basically seeking a declaratory ruling that they aren't infringing any Rembrandt IP.

  8. opened a can by phrostie · · Score: 4, Insightful

    just look at the list of companies.
    they may not get along with each other, but the last thing you want to do is force them to unite against a common enemy.

    i think they just opened a can of woop-ass.

    1. Re:opened a can by ausoleil · · Score: 1

      As we speak, their combined lobbyists are no doubt preparing a line of battle in the halls of Congress.

      This may actually work out to be the catalyst to getting Congress to solve the patent trolls problem once and for all.

  9. Look at their "Careers" by SerpentMage · · Score: 5, Informative

    In their careers section they have the following description.

    http://www.rembrandtip.com/careers.html
    "
    Analyze markets and companies to assess IP commercialization opportunities

    Develop and model business cases and royalty analysis for specific licensing opportunities or industries

    Perform competitive analysis breakdown and strategic direction of leading industry companies

    Supporting analysis for new business opportunities around targeted patent acquisitions
    "

    Give me a freaken break! This company goes out looks at what are up and coming industries. Then it "creates" ideas and patents the heck out of them so that they can license and throttle an up and coming industry.

    This is not even funny. Imagine coming up with some really cool idea, but to have it patented away from you. This is how industries are broken. Part of the problem with this is that lawyers can sue without restrictions. Lawyers can go fishing in the industry. They can patent, sue and see what sticks.

    To make that go away, you can do the following:

    1) Make lawyers work pro-bono (as they do in many countries). That is they can only charge so much.
    2) Make lawyers pay if the lawsuit fails. For example, if say somebody brought up a lawsuit where they wanted 50 billion say, "if you loose you need to come up with say 1%". That way you can still sue, but you better have a good case. Otherwise it is going to cost you quite a bit.

    --

    "You can't make a race horse of a pig"
    "No," said Samuel, "but you can make very fast pig"
    1. Re:Look at their "Careers" by DustyShadow · · Score: 4, Interesting
      This company seems interesting to me. After viewing their biographies and the "Working With Rembrandt" page, it sound like a law firm that is willing to work on a contingency basis:

      If your patent or portfolio of patents is being infringed, Rembrandts stands ready to pursue the infringement and allow you to see the real value of your invention. Our process is comprehensive. There is no fee to patent holders. Simply:
      1. Click here to notify one of our market analysts of the nature of the infringement, info@RembrandtIP.com or call us at 888-736-4947.
      2. Once you notify us, we will immediately issue you a non-disclosure so that we can begin to collaborate with regard to the nature of the infringement.
      3. After review, we will notify you of our opinion regarding your patent and the implications of the infringement. All patents are reviewed by Rembrandt's executive staff, headed by the company's Chief Executive Officer Paul B. Schneck, Ph.D.
      4. If your patent is accepted, we will work with you to acquire the patent and structure the terms of the deal.
      5. Once acquired, Rembrandt's in-house staff and outside consultants go to work building, strengthening, articulating and focusing the claim.
      6. Throughout the procedure, Rembrandt collaborates closely with inventors to keep them apprised of the process.
      7. Rembrandt invests its own capital to retain non-contingency legal support in order to pursue patent pirates and deliver the value of an invention to an inventor.
      8. Rembrandt attorneys bring litigation against patent pirates and support the claim through litigation including possible appeals.
      9. Awards and settlements are shared with the inventor, Rembrandts investors and the Rembrandt charity. This is interesting to me as a law student because I once worked on a case where the other side's attorney took payment by obtaining partial rights in the patent. I was told by the lawyers in my firm that that is a very sketchy thing to do and it borders on being against ethics rules that lawyers have to follow. It almost looks to me like these guys are trying to hide their attorney status so they can slide by the ethics rules.
    2. Re:Look at their "Careers" by RareButSeriousSideEf · · Score: 3, Insightful

      To make that go away, you can do the following:

      1) Make lawyers work pro-bono (as they do in many countries). That is they can only charge so much.
      2) Make lawyers pay if the lawsuit fails. For example, if say somebody brought up a lawsuit where they wanted 50 billion say, "if you loose you need to come up with say 1%". That way you can still sue, but you better have a good case. Otherwise it is going to cost you quite a bit. Problem is, laws are written by lawyers, and they generally don't like to skewer their own cash cows. Patent reform, you might see. Tort reform, and/or the kind of thing you're talking about... not likely, unfortunately.
    3. Re:Look at their "Careers" by Anne+Thwacks · · Score: 3, Insightful
      You can do what we do in the UK- "loser pays the bill". You had better be sure you know what you are doing, or it really costs you. It may not be perfect (it isnt) but its better than your way.

      Why cant people sue the USPTO when they screw up? What makes them exempt from having to exercise due care and responsibility to the public?

      --
      Sent from my ASR33 using ASCII
    4. Re:Look at their "Careers" by TubeSteak · · Score: 2, Informative

      1) Make lawyers work pro-bono (as they do in many countries). That is they can only charge so much. Pro bono publico means "for the public good"
      Pro-bono = free != "they can only charge so much"
      If the pro-bono lawyer wins his case, the Judge can decide to order the loser to pay the pro-bono lawyer, but there is no guarantee.

      2) Make lawyers pay if the lawsuit fails. For example, if say somebody brought up a lawsuit where they wanted 50 billion say, "if you loose you need to come up with say 1%". That way you can still sue, but you better have a good case. Otherwise it is going to cost you quite a bit. That's antithetical to the way the US justice system works.
      Lawyers would stop taking on BS cases, but they'd also stop taking on important, but uncertain or marginal issues. The evolution of case law would slow greatly (this is not a good thing).
      --
      [Fuck Beta]
      o0t!
    5. Re:Look at their "Careers" by Clay+Pigeon+-TPF-VS- · · Score: 2, Informative

      IIRC according to ABA model rules you are allowed to take a stake in the property as part of a contingency fee (because that would not make your interest conflict with your client's interest), but you are not allowed to go out on your own and purchase an interest in the property (which would put your interests in conflict with those of the client). No I am not a lawyer (yet).

      --
      Viral software licensing is not freedom, it is in fact GNU/Socialism.
    6. Re:Look at their "Careers" by Simple-Simmian · · Score: 2, Interesting

      We have so much "law" and lawyering that no one can get justice . We are living in a world where it is increasingly for the lawyers and by the lawyers and anyone else is screwed. I always ask these simple question how many living wage jobs have lawyers created? How many technological and scientific breakthroughs have lawyers contributed to the world? A world with few lawyers and their self serving laws would be a much better world.

      --
      If you don't like what I write don't be a CS and mod it down. Refute it.
      Yea I can't spell. So what is your point?
    7. Re:Look at their "Careers" by Lost+Engineer · · Score: 1

      First thing we do. Let's kill all the lawyers!

      (Shakespeare in case anyone tries to think I'm taking credit.)
      (Facetious in case anyone wants to sue me!)

    8. Re:Look at their "Careers" by RespekMyAthorati · · Score: 1

      I can't say it bothers me when patent trolls go after big businesses like the networks. These companies can afford to defend themselves, and if the patents are invalid, Rembrandt will get a royal smackdown.

    9. Re:Look at their "Careers" by Anonymous Coward · · Score: 0

      Why cant people sue the USPTO when they screw up? What makes them exempt from having to exercise due care and responsibility to the public?

      It's called sovereign immunity.

      YIIAL,BIANYL. GYOGDL. YMNO.

    10. Re:Look at their "Careers" by vuffi_raa · · Score: 1

      You can do what we do in the UK- "loser pays the bill". that is a terrible idea- "loser pays the bill" means that corporations can sue the little guy all they want and corporations can never be sued since the average person would not be able to afford to cover corporate litigation costs, but a corporation can easily eat the losses on a suit and even write it off come tax time.
  10. perhaps property law could provide a solution... by voss · · Score: 5, Interesting

    The concept is called adverse possession. In real property someone can aquire possesion of abandoned property
    by open and continous use. Now you wouldnt want someone becoming the new patent/copyright holder but the negative part
    "extinguishing the rights of the prior holder" would make perfect sense and help deal with both the problems
    of patent trolls and abandoned copyrights as well as legalizing abandonware.

    If a reasonable person knows or should have known their patent or copyright was being infringed on and takes
    no action within say 3 years, their patent or copyright becomes null and void. Also a system could be set up
    to allow "notices of intended infringement" to be filed with the copyright office, if the copyright or patent
    holder does not respond within the required time then the copyright or patent would lapse and the work
    would go into the public domain.

  11. How Rembrandt Works by Anonymous Coward · · Score: 5, Interesting

    I knew this girl from my college that worked at Rembrandt.

    She explained that the way that these operations work is they hire students with slightly above rudimentary technical skills from the local universities in technical courses of study. Their "discovery" process simply entails these students trying to reverse engineer the mechanisms that they hold patents for. However, since they're not trying to actually build the device, they usually stop when they have a guess that suits their needs.

    To put it bluntly, they do not really know; it is a wild guess, and hope that they can litigate it successfully.

    1. Re:How Rembrandt Works by poopdeville · · Score: 1

      Wow that sounds really fun!

      --
      After all, I am strangely colored.
  12. Re:New system by xigxag · · Score: 5, Interesting

    I agree. What makes this troll particularly disgusting (for the benefit of the non-RTFA'ers) is that it is based upon patents originally owned by AT&T which had agreed to license the patents to all for Fair, Reasonable And Non-Discriminatory (FRAND) terms. The patents got bought up by this troll company which is now refusing to honor those terms. If this is allowed to stand, then no company can ever rely on FRAND as a business assurance. Any patented process could get sold to an IP management company and be fair game for extortion.

    I propose two short-term fixes.

    First, FRAND terms should be able to be added to the patent itself, either originally or through some amendment process. That way, if it gets bought or sold, the IP holding compnay has to adhere to the original terms.

    Second, companies that are developing open standards should be allowed some kind of superpatent, where (presumably for higher fees) there is a public hearing at which the final standard is vetted, and challengers are given sufficient time to come forward with their own patents which may encumber upon the proposed open standard, and they can negotiate whatever terms are in their best interest, without restriction. Afterwards, though, if the superpatent is granted, no more challenges will be entertained. Anyone who finds a prior patent in their closet or falling out of their portfolio five or ten years hence will be out of luck.

    --
    There are two kinds of people: 1) those who start arrays with one and 1) those who start them with zero.
  13. Re:What the hell...Obligatory by Anonymous Coward · · Score: 0

    In Soviet Russia trolls patent you!

  14. bring it on by nguy · · Score: 1

    This sort of thing is good. Cable and media companies have a lot of muscle, and sooner or later, they are going to tire of this and demand that the patent system be changed so that there is some clarity.

    A simple "enforce it or lose it" requirement, just like for trademarks, would eliminate a lot of this patent trolling.

    1. Re:bring it on by Anonymous Coward · · Score: 0

      If they lose that is what will happen. But none of those companies are going to just roll over and just take it. I'd like to see them all work together to get the patents changed but then you have the question of how will it effect any patents that those companys hold.

    2. Re:bring it on by nguy · · Score: 1

      Trouble is: they are competing against services that aren't subject to these kinds of patent trolls and they can't just increase prices arbitrarily. If they could, they already would have.

  15. Re:New system by nguy · · Score: 1

    Hey, what's not "Fair, Reasonable And Non-Discriminatory (FRAND)" about 0.5% of all cable revenues?

  16. Re:perhaps property law could provide a solution.. by tomhath · · Score: 1

    I like both ideas, with the addition of some kind of compensation for the target of a baseless suit.

    Unfortunately, it seems all of the candidates in the upcoming presidential election want to "fix" the problem by hiring more patent examiners. I know the argument is that with more examiners they can do a better job of researching the applications, but that's not where the system is broken.

  17. Comment removed by account_deleted · · Score: 1

    Comment removed based on user account deletion

  18. Aw the patent system by Vexorian · · Score: 1

    Always so friendly towards unnovation , I am proud of the patent system!

    --

    Copyright infringement is "piracy" in the same way DRM is "consumer rape"
  19. Interesting motto... by Anonymous Coward · · Score: 0

    "Drawn to Invention"

    There's got to be a joke somewhere in there...

    1. Re:Interesting motto... by Anonymous Coward · · Score: 0

      Let us know when you find it.

  20. Good, hope the troll succeeds. by Anonymous Coward · · Score: 0

    And I hope the costs go up.

    All the more reason for my to continue my non-TV watching, non-TV buying ways.

    Let these monsters eat each other. I'm happy to be the rat watching the elephants dance from far away.

  21. Why does slashdat hate patent trolls? by catmistake · · Score: 1

    Work smarter, not harder, right? I'm just putting the finishing touches on my patent for respiration....

  22. This is perfect. No, really... by ehrichweiss · · Score: 4, Interesting

    This is exactly what we need at this moment. This might be the straw that broke the camel's back because with so many potentially affected, and with HDTV the new "standard", we are going to see a backlash not from a single company but an entire industry that is now being forced to pay ransom to stay in business thanks to that standard. The way I see it is that the FCC(and any other FCC-like organizations in other countries) will take a decent portion of the heat for forcing the industry to use a non-open standard, that will then put pressure on the USPTO to make some real reform. Where it goes from there is a bit cloudy but I suspect this will be enough to force the Supreme Court to rule on this type of behavior; after all, patents are supposed to promote innovation, not stifle it.

    --
    0x09F911029D74E35BD84156C5635688C0
    1. Re:This is perfect. No, really... by dakameleon · · Score: 1

      0.5% of revenue won't make these companies struggle to stay in business by any means. It's small enough (50c per $100, or $5000 per million) that it'll be distributed through the customer base or suppliers (where applicable) will be pushed to cut costs if price rises aren't palatable. The greater fear should be that they pay up to avoid the hassle of court and costs of lawyers and encourage more of these trolls.

      --
      Man who leaps off cliff jumps to conclusion.
    2. Re:This is perfect. No, really... by jmnormand · · Score: 1

      nah the telco/cable companies will just add a 1% "licensing fee" to your bill turn around and give this commpany 0.25% and claim the rest is "admisitrative costs".

  23. Lossage by belg4mit · · Score: 1

    I suspect that this is something they'd be likely to lose in court. Afterall, the court took Xerox's patent on
    photocopying away, even though there was more effort in development and no trolling nor as obvious wide-ranging
    impacts, just the monopolization intended by the system.

    --
    Were that I say, pancakes?
  24. Re:New system by Znork · · Score: 1

    patents that are deemed harmful to competition

    I think you can strike the words 'that' and 'deemed' from that sentance. The entire mechanism of patents is to prevent competition.

    The only way to allow a competetive free market and still reward innovation beyond what the free market does is to have the patent office be the ones actually paying the patent holders (according to level of use, maximum payout, etc). Then we could have an actual useful debate about levels of financing, patent trolls would no longer be a problem for anyone and we'd have a whole lot of other issues automatically solved (such as having a system that actually promoted adoption of new and (theoretically) better products as they would no longer carry a patent-price penalty, increased dissemination rate, more rapid building on other technology, more readable patents, no more 'small inventor' troubles, etc, etc, etc).

  25. And equip them with... by Anonymous Coward · · Score: 0

    ...Bastard Sword of Troll Slaying +10

  26. Re:New system by Anonymous Coward · · Score: 1, Interesting

    Third, the attorneys who pressed this action should be disbarred at the state and Federal
    level immediately and permanently and be required to reimburse the victims from their
    own personal funds.

  27. huh? by Ugot2BkidNme · · Score: 1

    Why didn't one of these companies buy the patent to begin with? It is not like they can't afford it.

  28. Re:New system by Anonymous Coward · · Score: 0

    Wouldn't that effectively remove the patent system? I mean
    Inventer invents product
    Corporation steals patent, and creates product
    Inventor sues to protect patent
    Patent is invalidated due to it being harmfull to competition....

    The whole idea of patents is to forcefully remove competition for a limited time, to protect the inventors invested resources.

    Besides this case isn't a problem, as far as I can see there are two outcomes:
    A. They win the case, in which case their patent was violated and they rightfully deserve to win.
    B. They loss, in which case the system works and we are all happy.

    Something going to court isn't a problem, since that's where thinks should rightfully be desided. At least I much more trust a competant judge who's dedicated his life to desiding such matter, then alot of random slashdot posters who've just read an article and now think they know everything there is to know about the case.

  29. An IP tax with no value by HangingChad · · Score: 3, Insightful

    It's time to kill software patents once and for all. This is not what the patent system was intended to do. There's no investment by the litigant, other than monetary. It's not like the company involved is offering any value to the TV broadcast industry. It's nothing but a tax, worse than a tax because at least your tax money has some return. What Rembrandt is doing is a legal extortion racket. In any other setting this would be a crime.

    Gotcha capitalism at its finest. Sickening. Enough is enough already.

    --
    That's our life, the big wheel of shit. - The Fat Man, Blue Tango Salvage
  30. The patent doesn't generate Ad revenue... by foniksonik · · Score: 3, Interesting

    Why should someone who holds the patent get a percentage of revenue not generated by the patent? Even if they win the suit on the point of ownership, etc. There is no legal reason for broadcasters to pay a percentage of revenue they generate from the combination of all the technologies and content they use.

    At most they should get a percentage of sales of the devices that use the patent directly.... not Ad revenue or other licensing revenue for syndicated shows, DVDs, etc.

    What actual devices implement this patented technology?

    --
    A fool throws a stone into a well and a thousand sages can not remove it.
    1. Re:The patent doesn't generate Ad revenue... by Bigglare · · Score: 4, Insightful

      Everyone keeps talking about redesigning patent laws to stop this. The federal government has the right to take patents away for the public good. For example if there was a patent on say Flu vaccinations, and the company wasnt producing enough or charging too much. The government can take that away and have other people manufacture the vaccine. Just write your senator and representatives and have them void these patents on the grounds they infringe and hamper on a standard mandated by congress for broadcasting. Congress requires that broadcasters use this standard, it was one of several options they considered. They chose the ATSC format and therefore should convert the patents to Public Domain or take the patent away as emminent domain.

    2. Re:The patent doesn't generate Ad revenue... by foniksonik · · Score: 1

      Hmmm that may be going too far. Emminent domain is a slippery slope... Public Domain could work out but still could be used as punishment or as a threat to companies or individuals who are disliked by the current administration (at any time, not just *this* current administration).

      It would need to be an Act of Congress followed up with Presidential Veto option and finally a Supreme Court decision that would ratify or overturn.

      --
      A fool throws a stone into a well and a thousand sages can not remove it.
  31. Re:New system by Anonymous Coward · · Score: 0

    invalidates patents that are deemed harmful to competition

    All patents are harmful to competition, some more than others.

  32. Re:New system by TekPolitik · · Score: 1

    it is based upon patents originally owned by AT&T which had agreed to license the patents to all for Fair, Reasonable And Non-Discriminatory (FRAND) terms

    If so then it is likely the troll will be held to those terms in a court - provided they had notice of the license prior to purchasing from AT&T.

  33. Vague; and, you would do this through a contract. by Shandalar · · Score: 1

    There is no reason to have to lard up patent agreements with contractual terms and worsen the problem at the USPTO with the already-overworked patent examiners (the reason that bad patents get through in the first place). You would just do this with a clause in the license or contract, where the licensee or the purchaser would agree to whatever the terms are that you say, and then also agree to include that exact clause in any downstream licensing or sale, the same as the GPL works. Anyway, the article is vague but seems to say that AT&T licensed the patent prior to its purchase by Rembrandt. That license is presumably still valid. If the license was revokable, then the licensee is stupid for relying on a revokable license for their whole business.

  34. Oh perhaps this is a good thing, considering.... by 3seas · · Score: 4, Interesting

    Analog TV is set to be turned off, rendering many TVs useless next year, unless a convert is purchased.

    So instead of turning off Analog and going all digital, leave analog on until the patent expires.

    I'm sure a lot or Analog TV owners will be happy.

  35. Re:perhaps property law could provide a solution.. by DustyShadow · · Score: 1

    If a reasonable person knows or should have known their patent or copyright was being infringed on and takes no action within say 3 years, their patent or copyright becomes null and void. This already exists. The two doctrines are called laches and estoppel. Without going into the details, they both encompass the general idea that you are talking about. They can be negated by failing license negotiations or lack of knowledge of infringement.
  36. Re:New system by Pharmboy · · Score: 1

    Third, the attorneys who pressed this action should be disbarred

    What about attorneys that represent people who committed crimes? That is even worse, should we disbar them as well? Perhaps we just pass a new law that applies to all lawsuits and criminal cases that says"

    "Winning attorney gets to stay an attorney. Losing attorney must be disbarred"

    That will teach the sorry bastids. After all, almost every attorney should be assumed evil and that only the "good guys" deserve an attorney. If we just get rid of all the attorney's that represent the bad guys, the world will be a better place. Right? Doesn't that sound fair?

    --
    Tequila: It's not just for breakfast anymore!
  37. The patents at issue by The+Empiricist · · Score: 1

    The article didn't give details regarding what patents are at issue. I went to PACER and searched for patent cases involving Rembrandt filed since January 1, 2007. Most of the cases were filed by Rembrandt Technologies, although one of them was filed by Motorola seeking declaratory judgment that it was not infringing on any valid claims owned by Rembrandt Technologies.

    The complaints were not all the same, but here is the list of patents cited in the complaints:

    An important question is whether it really matters whether Rembrandt Technologies hired the original inventors or not, or whether Rembrandt Technologies practices the inventions or not. Rembrandt Technologies purchased the patents and is trying to license, not practice the inventions, thus it is considered to be a patent troll. But, would it have been better had the original patent holder had been the one to file these suits?

    The rights involved would not be any different, just the entity able to enforce those rights. If the original patent holder was a competitor of the defendants, then there would be more incentive to file these suits to stop competitors from practicing the invention altogether, rather than trying to obtain licensing fees. At least with a third-party patent holder, there is an incentive for the patent holder to license the patents broadly.

    One way of looking at suits and transactions is that the original patent holder capitalized on the potential value of enforcing the patents by transferring those enforcement rights to a buyer willing to take on the enforcement risks. There are plenty of risks involved in enforcing patents (e.g., the cost of attorneys fees or the possibility that an adverse construction of the patent rights will destroy their enforcement value). Whether the original patent holder or a third-party takes on those risks changes who takes on those risks, but doesn't change the scope of the patents themselves.

  38. Re:New system by deblau · · Score: 2, Interesting
    Parent misses the point. There are two ways to make money from patents:
    1. Manufacture a product, and use the patent to keep others out of the market. I call this the 'passive' method, since the patent is not directly used to make money, the manufacturing is.
    2. License a patent to someone else, earning royalties. I call this the 'active' method, since the patent 'property' itself is the source of the money (rental fees).
    The first proposed short-term fix ignores the passive method, which is the traditional way patentees use patents. It penalizes the 'good guys', who are just trying to recoup R&D costs, etc. And since R&D costs are involved, cue the pharmaceutical companies. They would never go for mandatory licensing, so this 'fix' will never happen.

    Second, if someone is developing an open standard, it's for the benefit of the public, right? So just take open standards out of the allowable subject matter -- no patents at all on open standards, and everyone can use them right away. Otherwise they're not really 'open', are they? Or is that too radical a proposal?

    --
    This post expresses my opinion, not that of my employer. And yes, IAAL.
  39. The Horror by tooyoung · · Score: 1

    The firm is apparently trying to get 0.5% of all revenues from services that supposedly infringe on the patents. The targeted companies include ABC, CBS, Fox, NBC, Comcast, Time Warner, Cox, Charter and Cablevision. According to MultiChannel News, Rembrandt's assault is especially aggressive, even for a patent troll: 'It is attacking two key technology standards used by the cable and broadcast industries, CableLabs' DOCSIS and the Advanced Television Systems Committee's digital-TV spec. "If they're successful, this could affect everything from the cost of cable service to the price of TVs."
    Yeah, by raising the cost by 0.5%...
  40. not haha by sohp · · Score: 4, Interesting

    A number of people are saying that this patent troll company will get its ass whooped because of the companies they are trying extort. Perhaps. But here's a rather more cynical view that I consider at least as likely. It has to do with the other end of the incentives -- profit and loss.

    Most if not all the cable and media companies have a virtual monopoly on providing you service. Consider, how many of us have any choice in which cable provider to bring service to the home? So, what happens in this situation is that because the company can pretty much raise your rates or reduce your service by say, shifting channels currently on the cheap "Basic" bundle over to the pricier premium bundles. They can pretty much write their own profits. So now patent troll company comes and wants $X piece of the pie. As a cable provider, they'd look at the cost and risk of legal action vs. shelling out the money for a new agreement. Result: they just jack up rates for the consumer and pay off the extortionist, safely keeping the patent system alive for their own future interests.

    We the consumers would see another jump in cable rates or some such service change, but there's not going to be a straw to break the patent camel's back on this one.

    1. Re:not haha by easyemail · · Score: 1

      hey, have you heard of unionizing the customers. lol. all cable customers create union to demand lower rates otherwise we will switch the network. either 1 business gets it all or the other cable companies get none but then the company that gets all will be in a nasty anti monolopy case so we end up with a broken company, and no cable tv. everyone screwed, or better rates like the break up of at and t. With the internet, surely something like bringing alot of people together is easier than ever. China did it.

  41. Re:New system by BorgDrone · · Score: 1

    Congress needs to provide funding to give the USPO a new division that watches for things like this, and invalidates patents that are deemed harmful to competition or that go against the spirit of the patent system.

    If patents are meant to make sure an inventor benefits from his original work, then why is it possible to change ownership of the patent to some other entity, say a corporation.

    I propose to limit the ownership of a patent to the neural network that originally came up with the idea with no possibility to transfer to any other entity. Also the patent should immediately expire once the neural network that owns the patent has reached halting state.
  42. late to the party by poetmatt · · Score: 1

    I know I'm late here, but can someone check the ties of this company that is the patent troll? I'd be really curious to find out who is playing puppet behind them getting them to litigate in this case.

    1. Re:late to the party by Anonymous Coward · · Score: 0

      Microsoft, of course. Duh. It always is.

  43. Re:perhaps property law could provide a solution.. by deblau · · Score: 1

    Are you familiar with the fact that patent litigation takes YEARS, and millions of dollars? Sometimes a legitimate company may only be able to afford a single lawsuit at one time. The patent office can already reject your application on the ground of prosecution laches, and the court can rule an issued patent unenforceable due to laches for unreasonable delay. Actively suing someone else isn't unreasonable delay, so it can take many years before a patent holder gets around to suing you. I don't have a cite for that exact proposition, but I recall reading it while doing legitimate legal research. Also, read Symbol II and Symbol IV.

    --
    This post expresses my opinion, not that of my employer. And yes, IAAL.
  44. Think again by KwKSilver · · Score: 1

    The companies who collect it from the customer (YOU & me)will need to collect more for the overhead. think 100% to 200%, so the acyual increase will be more like 1% to 2%. Adds up fast over 10s or 100s of millions of customers. Troll's investment in the research, marketing, and development? 0%, %0.00. Why is being a parasite encouraged?

    --
    If you want your life to be different, live it differently.
    1. Re:Think again by aim2future · · Score: 1

      Why is being a parasite encouraged?

      All systems have abusive parasites, the question is how to find the right pesticide!

      Patent trolls are not only a problem in US, also here in Sweden we have been contaminated with this kind of scoundrel!

      Here I've recently found one legal way to attack these vermins, which I will try this spring, but the big problem is the patent system, patent laws and asset laws which need to be reshaped as they are outdated.

      A good suggestion I've seen in several postings here, as well as in one of my own, is that a patent should in principle not be transferable from the inventor. Especially not to a company which is not doing real R&D within the business. And, a patent holder should not be a patent holder only, they would need to do real productive development and business within the area to keep their patents.

      • Any good ideas how to change this?
      • What is the democratic procedure in US?
  45. Easy to stop. by hlavac · · Score: 1

    It should be enough to stop patent trolls from being able to "buy" patents. Original inventor should be allowed to sell the patent just once, then the patent should become invalid if the new owner sold it again to someone else. Just fix the friggin patent system.

  46. Immunity Corrupts by KwKSilver · · Score: 2, Insightful

    The real problem, aside from patents themselves, is that patent trolls are immune to retaliation. Think about it. They have complete immunity. John W. Campbell, the editor of Analog magazine in the 1960s and 1970s had an interesting take on immunity and corruption. The old saw has it that "power corrupts and absolute power corrupts absolutely." Campbell suggested that was wrong, that it is not power that corrupts, but immunity: "immunity corrupts and absolute immunity corrupts absolutely." If I can do anything whatsoever that comes into my head, without there being any any chance of retribution, what is there to stop me? ... Nothing. Nothing at all.

    Unless some way is found to make patent trolls seriously liable to massive (and probably personal) financial retribution, they will continue to sink further into parasitism and corruption ... absolute corruption.

    --
    If you want your life to be different, live it differently.
  47. Re:Vague; and, you would do this through a contrac by TheRaven64 · · Score: 1

    From your post, it appears you don't understand what a patent is. A patent simply allows you to prevent anyone else exploiting your idea. There is nothing analogous to the idea of a derived work in a patent. If you file a patent on a machine, I can file a patent on an accessory for your machine with no problems. Manufacturing the accessory may require licensing both patents, but you have no control over who I license my patent to. If you allow everyone to use your patent, they may still need to license mine for some things. You can not license your patent in such a way that prevents me from charging whatever I want from my patent unless I am manufacturing something that infringes your patent (in which case I need to license your patent, and you can make licensing my patent a requirement on that).

    --
    I am TheRaven on Soylent News
  48. Get ready by kilodelta · · Score: 1

    Because that .5% will be passed along to we subscribers as a 5% bump. An excuse is an excuse but I'm a little interested that they're now attacking DOCSIS since my cable modem has been using it for almost a decade now.

  49. Re:New system by xigxag · · Score: 1

    They would never go for mandatory licensing, so this 'fix' will never happen.

    True, but I wasn't talking about mandatory licensing. Simply the *ability* for companies to codify "FRAND" into the patent app if they wish, so that someone can't come along later on and attempt to weasel their way out of the contract, leaving an entire industry on the hook, as we see happening here. I'm not saying "FRAND" should be required in those cases where the patent developer has no intention of offering it. Except possibly for "open standards" (see below).

    no patents at all on open standards

    I think we're basically in agreement here, but just to clarify: Say Alice invents a technology which, as things turn out, winds up being of importance to an entire industry. Now Bob and a bunch of other investors decide they want to use Alice's technology. Does Bob's consortium then get to make up an "open standard" which conveniently tramples on Alice's patent, leaving her uncompensated? I would be against that. I think at the very least, there still needs to be a hearing at which time Alice can attempt to contravene the "open standard" designation. That's really all I'm saying. There should be a reasonable window for the original patent holder(s) to exercise an absolute right to disallow an infringing open standard, but if he, she or they fail to act during that window, the patent should thenceforth be unenforceable with respect to that standard. I agree that the best course at that point would be for the open standard to be entirely without encumbrances, but if that is too much, then at least FRAND should be built into it, as a matter of public policy and not merely contract law (as another poster suggested).

    --
    There are two kinds of people: 1) those who start arrays with one and 1) those who start them with zero.
  50. To Be Allowed To Sue For Patent Infringment by Nom+du+Keyboard · · Score: 1

    To be allowed to sue for patent infringement, you should be required to be using the patent yourself, or have valid licensees of it from the time it was granted, if not filed. If you're not using it, you have no rights to stop anyone else from using it.

    --
    "It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
  51. Capitalist tactics..... by CherniyVolk · · Score: 3, Interesting

    "If they're successful, this could affect everything from the cost of cable service to the price of TVs," said the attorney close to the litigation, who spoke only on condition of anonymity."

    I would like to point out, that in America when cable was first offered to the public, the ONLY purpose of buying it was so that you can watch TV WITHOUT commercial interruption. Else, it was the typical bunny ears with tinfoil wrapped around them, watching General Hospital on ABC or was it CBS, and have to watch a commercial every five minutes or so.

    I think it happened in or around this order....

    MTV proved to attract quite the audience, but most importantly, impressionable young soon-to-be Consumers. Marketing types, shall focus in on this, "untapped" market... or rather, the bucket for which they might shoot the fish; made of gold, with complimentary .50 BMG rounds for all fortune 500 companies.

    MTV used to play music videos, as might be suggested by the name. Then came the trends focusing on teen appeal; the first commercials on MTV were Noxima commercials and they even used one of the female VJs.

    As MTV was being raped by Capitalism, not to mention the Musicians and Artists--as by this time, it's been established that if a band can get a video to be played on MTV, they are as good as gold--other major networks soon followed suit.

    HBO trying so hard to maintain the original concept, of a Home Box Office (hence the HBO), first resorted to in-house production, heavily laden with product placement or other dung such as plots or lines conforming tightly with social trends; like anti-racist tears, or commie-bastard themes...

    Then with the marketers pouring so much money into Cable Television, a market they would have loved to defeat for many reasons, let alone the fact that it was a product that freed the Consumer from Advertisements to begin with, Cable television exploded.

    Advertisers were SO ADAMANT in penetrating cable television, they did everything from attempt to bankrupt the networks (by means of connections, such as getting buddy buddy with the utilities companies--gas, electricity, phone--and all sorts of other avenues) to outright attempting to sue them for not allowing them slots for their commercials. Forcing the cable television networks to start airing commercials in disregard of the fact that the Consumers were paying for the service, and had expectations of what their product received would be.

    Now, this might shed pity upon the cable television networks. And maybe it should. However, for those who still might wonder how this "hurts" the consumer...

    Cost of Cable Television, and considering inflation, has only gotten more expensive; it never got cheaper, and that's likely by demand of the Advertisers who insist that if a Consumer has to pay for something, they'll take it more seriously.

    So there is something amuck with the whole OP, as when I hear Attorneys blabber stuff like what I quoted... what garbage to fool the Consumer into a reason to jack up the price of Cable Television. When, the fact is, they make so much money from the Advertisers, they can afford to revamp their entire infrastructure twenty times and still come out heads over toes all the while giving it out for free to all those who might have a coaxial jack in their house, outhouse, doghouse or whateverhouse.

    And where would the extra money go to; if they do raise prices under this false pretense? Who the fuck knows; but what I do know, who it will go to you probably didn't vote for.

    1. Re:Capitalist tactics..... by The+Empiricist · · Score: 1

      I would like to point out, that in America when cable was first offered to the public, the ONLY purpose of buying it was so that you can watch TV WITHOUT commercial interruption. Else, it was the typical bunny ears with tinfoil wrapped around them, watching General Hospital on ABC or was it CBS, and have to watch a commercial every five minutes or so.

      Cable was originally created so that television signals could be re-transmitted to people who could not receive the signals because of blocking mountains. The continued right of cable providers to retransmit television signals, with appropriate compulsory licenses, is protected under 17 U.S.C. Sec. 111.

    2. Re:Capitalist tactics..... by CherniyVolk · · Score: 1

      Cable was originally created so that television signals could be re-transmitted to people who could not receive the signals because of blocking mountains. The continued right of cable providers to retransmit television signals, with appropriate compulsory licenses, is protected under 17 U.S.C. Sec. 111.

      It's seems you are correct and I have been unintentionally misleading. "Paid Television" was for the purpose of commercial free broadcasts.

    3. Re:Capitalist tactics..... by /dev/trash · · Score: 1

      NE PA for the win

  52. Get Out The Nuclear Bombs by Nom+du+Keyboard · · Score: 1

    One other thought, Marshall Texas needs to be completely wiped off the map.

    --
    "It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
  53. Re:New system by Jesus_666 · · Score: 1

    Long-term, though, I believe that "any patent that covers part of a formal industry standard cannot be used to sue people for adhering to that standard" is the best option for this particular problem.

    --
    USE HOT GRITS WITH STATUE OF NATALIE PORTMAN (NAKED AND PETRIFIED)
  54. Are patent trolls our friends? by jmv · · Score: 1

    Just a thought that occurred to me. In *some* (probably not all) way, patent trolls might be helping open source software. The reasoning is this. Patents are currently used in two main ways: 1) by big corporations trying to shut out competition from smaller companies (or OSS projects) 2) by trolls trying to make money off the big corporations. Considering that the laws in most countries are mainly bought for by the big corporations, we'll be stuck with patents for as long as 1) is worth more to the big players than 2) costs them. So I'd say the more trolls, the likelier it is we'll get rid of software patents. Example: see how the whole mess around the Blackberries has helped convince people that giving out injunctions right away is bad?

  55. Re:Oh perhaps this is a good thing, considering... by ColaMan · · Score: 1

    Ha!

    The US should have gone with DVB-T(and S/C variants), with its international and widely-supported set of associated standards (and yes, well known and recognised patents in various countries).

    But no, they had to be Different and Special. Cooking up their own, home grown standard to use, incompatible with just about all of the rest of the world, leaving themselves wide open to crap like this.

    --

    You are in a twisty maze of processor lines, all alike.
    There is a lot of hype here.
  56. Analog switchover doesn't affect subscribers by Anonymous Coward · · Score: 0

    The analog to digital switchover only affects over the air transmission. TVs connected to cable systems or coming through satellite services will keep getting their programming.

  57. All this has started me wondering.. by Hillview · · Score: 1

    What if I were to patent "patent trolling"? Could I sue Rembrandt?

    --
    -Troll, Flamebait, and Offtopic are NOT equivalent to disagreement.
  58. Re:New system by ciscoguy01 · · Score: 1

    What makes this troll particularly disgusting (for the benefit of the non-RTFA'ers) is that it is based upon patents originally owned by AT&T which had agreed to license the patents to all for Fair, Reasonable And Non-Discriminatory (FRAND) terms. The patents got bought up by this troll company which is now refusing to honor those terms. If this is allowed to stand, then no company can ever rely on FRAND as a business assurance. Any patented process could get sold to an IP management company and be fair game for extortion.

    What's happened now is this: One company, AT&T, apparently offered certain favorable terms essentially gratis to anyone who wanted to use their technology.
    This encumbered the patents to the extent others relied on that.
    All these other companies RELIED on that to run their businesses.
    These other companies made their entire businesses based on that offer.

    The litigation will consider whether you can "take it back" or not.
    I would say no, you can't "take it back".

    It's not really fair for Rembrandtip to come back and want to change the terms of the offer, saying "I own the patent now, and I want more".
    This after millions had been spent developing the technology by perhaps dozens of companies. Hundreds of millions of dollars of equipment made and sold in reliance on AT&T's offer.
    In the case of the ATSC broadcast technology the federal government has now forced *everyone* to go to that technology.
    They wouldn't have done that if the technology somehow was unavailable.

    And Rembrandtip would not have bought and paid for those patents if they were essentially encumbered by AT&T offering those favorable terms to all comers, years ago. That's Rembrandtip's argument. That they are not bound by AT&T's offer. I would guess they are bound by it.
    I am hoping Rembrandtip got screwed on those patents, and they are not worth much at all since AT&T essentially gave them all away and others relied on that fact.

    That is what will be litigated.
    --
    .
  59. Re:Oh perhaps this is a good thing, considering... by ZachPruckowski · · Score: 1

    They can't. The analog bands were partially sold in the most recent FCC auction. Someone else owns them as of like 2010 or something.

  60. I don't normally suppport the death penalty by crovira · · Score: 1

    but for patent trolls, who have created NOTHING and who bring NOTHING to the table, I'd make an exception.

    Fuck 'em where they breathe...

    These carrion feeders, these disgusting example of oozing, sporing fecal matter need to be utterly and absolutely stamped the fuck out.

    I think that they deserve the same fate as Derle.

    I can't think of a term low enough for them.

    --
    MSBPodcast.com The opinions expressed here are my own. If you don't like 'em... Think up your own stuff.
  61. What other business SHOULD they have? by WaltFrench · · Score: 1

    What's wrong with a firm specializing in buying patents from inventors, and then enforcing them?

    There's a widespread belief that the USPO gives out patents too easily for "obvious" patents, hence gratuitous comments that "patent trolls" can make it impossible for enthusiastic entrepreneurs to do business in a growing area. But pish: the complaint is against bogus patents, not whether a private inventor brought the case or whether a hired gun took on the risk (and the healthy reward) of doing it for him.

    These discussions seem ignorant of real inventors whose work was stolen, and for whom high-powered attorneys would've been a godsend.

    One such is the inventor (Robt Kearns) who was unable to interest Ford Motor in his interval windshield wiper design, then found them using the technology a few years later. Seventeen years in the courts, more than most of us could hold up without substantial financial backing. Indeed, his victory was hollow; news accounts show him as having gotten divorced and otherwise overwhelmed by Ford's (and Chrysler's) theft of his work. Alzheimer's eventually forced him to stop his efforts to be paid for his ideas.

    Another famous example is Edwin Armstrong vs. RCA over Armstrong's invention of FM; he committed suicide in despair of gaining his fair recognition and it took his wife several years to finally prevail in the courts. Armstrong's other cases went to the Supreme Court, where his case for the super-regen circuitry is generally perceived as having been misunderstood by the Court. (A fabulously talented engineer, he also invented the Superhetrodyne receiver that is the basis for ALL AM, FM and TV circuits. Still.)

    These men clearly and importantly advanced the state of engineering in their days (and ours!) yet had a Hell of a time getting compensated for their prodigious efforts, and in some cases, huge engineering expenses. Those who would throw out all patents, or individuals' rights to assign their patents to others, should explain why we don't need to encourage people like Kearns and Armstrong.

    Should we just have all the developments be done by big corporations, or contract our entire country to China & India?

    Another would be

    --
    "Inquiring Minds Want to Know!"
  62. Correct by Anonymous Coward · · Score: 0

    Sure; all correct; I was responding to the parent post's idea that there should be licenses and contracts somehow attached to patents. No need to claim I don't know what a patent is.

  63. WRONG by lpq · · Score: 2, Informative

    patent trolls ARE providing a service. By purchasing patents, these patent trolls provide a market for patents which puts money in the hands of small time inventors, who don't have the resources to commercialize their inventions

    You are outright "WRONG".

    Patent TROLLS do not provide the service of "commercializing" patents. Patent trolls put no more money in the hands of inventors because they buy up patents that have, already proven technological worth because they are already included in technology. That's the TROLL's leverage. If the patent didn't already have proven or provable worth, the TROLL wouldn't have ever have been interested in the patent. Your fantasy that TROLLS help inventors commercialize anything is just that: a *fantasy*. Get over it.

    The problem is *both* the patent system, AND those who abuse the system (TROLLS and those who use patents to put other companies out-of-business).

    It's one thing to award a patent as a reward for inventing something and to give the inventor a reasonable time to obtain compensation for their ingenuity. It's patent abuse to use them for most other purposes.

    Stop claiming patent and copyright bogosity protects or rewards "the little guy", the garage inventor or a garage band. It's the corporations and trolls who benefit -- and they benefit WAY too much.

    Sorry if my tone is harsh, but abusive corporations need to be STOPPED. At the very least, they need to have their "personhood" status revoked. Inventors & creators should be rewarded to encourage them to continue in order to benefit society -- that's was the entire point of exclusive licenses (patents and copyrights). They've gone way beyond that intent, to the point that entire artificial markets have been created solely to manage these non-physical, "Intellectual Properties". It is a drain on society, benefiting society very little, but hurting society forever into the future by limiting, draining and destroying resources that could have been used to benefit society in NEW ways, rather than by researching new ways to extract money from older patents and copyrights.

    No one of this generation really cares because they'll all be dead, but all the resources we waste in pointless legal wrangling and warring will end up costing humanity dearly in future decades and centuries. It's all so much a waste!

  64. Unnovation by aproposofwhat · · Score: 1
    I know it was probably a typo, but what a marvellous neologism that is - perfectly encapsulating the notion that patent trolls do anything but innovate, and pervert the whole system for their shysterish ends.

    I salute you, sir!

    --
    One swallow does not a fellatrix make
  65. Shell company by tinkerghost · · Score: 1

    A patent troll is immune to being sued because it does not distribute anything, it just makes money through royalties and lawsuits, and so can't really be sued for anything. It is actually a very dangerous entity, because it has nothing to lose. Actually it's worse than that. A large number of patent trolls are shell companies that own nothing but the single patent being sued over. So Patent Holdings Inc has 200 patents. If they sue Acme with one of them & get slapped down big, they could end up having to sell off some of the other 199 to pay for a settlement. If however they set up Patent 563821 inc. and give it just patent #563821, the the only assets available for judgement is the patent that was just invalidated anyway.
  66. Re:Oh perhaps this is a good thing, considering... by russotto · · Score: 1

    Since the Australian National Patent Troll recently won a patent battle on OFDM (which DVB-T uses), going with DVB-T wouldn't have worked. Not to mention that the switch to 8Mhz channels vice the 6Mhz channels US analog broadcasting uses would have been much more disruptive.

    (never mind that OFDM was invented in the 1960s and that CSIROs patent claims were limited to "above 10Ghz", the courts didn't care)