Slashdot Mirror


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.'"

18 of 164 comments (clear)

  1. 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: 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
    2. 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...

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

    Comment removed based on user account deletion

  3. 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
  4. 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 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. 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.

  6. 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.

  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. 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
  9. 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.

  10. 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.
  11. 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.
  12. 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.
  13. 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.
  14. 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.

  15. 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