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BetaNet Sues Everyone For Remote SW Activation

eldavojohn writes "Not to be out patent trolled by Eolas, a mystery company named 'BetaNet, LLC' is suing: Adobe Systems, Inc, Apple, Inc., Arial Software, LLC, Autodesk, Inc.,, CARBONITE, INC., Corel Corp., Eastman Kodak Co., International Business Machines Corp., Intuit, Inc., Microsoft Corp., McAfee, Inc., Oracle Corp., Rockwell Automation, Inc., Rosetta Stone, Inc., SAP America, Inc., Siemens Corp. and Sony Creative Software, Inc. for infringement of their patent entitled Secure system for activating personal computer software at remote locations. And of course, this was filed in our favoritest of favorite places: Marshall, TX (Texas Eastern District Court)."

22 of 227 comments (clear)

  1. Marshall, TX by mikael_j · · Score: 4, Interesting

    Surely at some point the judge/judges in that small corner of Texas should, if they're not idiots or in league with these trolls, realize that the reason they're getting so many patent lawsuits filed in their jurisdiction is because they're considered to be overly in favor of the people who are suing?

    But maybe I'm just living in some sort of dreamworld where judges aren't incompetent or evil..

    /Mikael

    --
    Greylisting is to SMTP as NAT is to IPv4
    1. Re:Marshall, TX by grasshoppa · · Score: 5, Insightful

      Judges do not make the laws, they simply settle disputes with laws already made. It would be a gross violation of their judicial power were they to legislate from the bench ( which many attempt anyway ).

      Regardless, if you want to know why this particular area houses so many of these types of disputes, follow the money. They wouldn't do it if they weren't benefiting financially somehow.

      --
      Mod me down with all of your hatred and your journey towards the dark side will be complete!
    2. Re:Marshall, TX by Dystopian+Rebel · · Score: 4, Funny

      maybe I'm just living in some sort of dreamworld where judges aren't incompetent or evil

      You take the blue pill - the story ends, you wake up in your bed and believe whatever you want to believe.

      --
      Rich And Stupid is not so bad as Working For Rich And Stupid.
    3. Re:Marshall, TX by eldavojohn · · Score: 5, Insightful

      Surely at some point the judge/judges in that small corner of Texas should, if they're not idiots or in league with these trolls, realize that the reason they're getting so many patent lawsuits filed in their jurisdiction is because they're considered to be overly in favor of the people who are suing?

      If I may opine my nonprofessional perspective from the software field, patents (and really the copyrighting/property concept applied to ideas in general) are a fuzzy field of law. Meaning that in most of the cases, the common sense rule doesn't work. I mean that if you approached a large number of citizens, their response could vary depending on their political direction, their previous personal experiences with companies or even how you present the case. You'll notice that I came out in this summary screaming--in a very nonprofessional way--that BetaNet is a patent troll. Makes it obvious who to side with, right? But given the letter of the law, it's not that simple. Given United States legal code, there are cases when patent litigation is the answer (in my opinion rarely if ever in software but that's another topic altogether).

      Now, if you can establish that it's a hazy field and outcomes are tied to differences in regions of the United States, you can also establish that there will always be a local maximum for percentages of cases awarded one way or the other. That's why Marshall, TX is so popular for the trolls. And if Marshall, TX had a mission statement tomorrow to shut down patent trolls from the get go then the next statistic maximum would be your preferred place of patent trolling.

      What disappoints me most about Eastern Texas' Courts is that they don't say, "What the hell is this doing in my courtroom? Neither of you claim offices here or even do business here so go back to where one of you operate." Sometimes this happens but really I think this needs to be done more often. In my opinion, the solution isn't to stop Marshall, TX; it's to fix the patent system.

      --
      My work here is dung.
    4. Re:Marshall, TX by Anonymous Coward · · Score: 4, Insightful

      Judges do not make the laws, they simply settle disputes with laws already made. It would be a gross violation of their judicial power were they to legislate from the bench ( which many attempt anyway ).

      I agree, even though some (not saying you, but some) use the "legislating from the bench" argument when a judge rules contrary to their opinion even though the law can reasonably be interpreted that way. But that's a different thread...

      Still, it is awfully suspicious that patent trolls seem to be significantly more successful in East Texas compared to other District Courts. Patent issues are Constitutionally a Federal issue, so there's no legal reason for this one court to consistently rule contrary to the Federal standard for patent infringement. Perhaps a higher court should hear an appeal from one of this court's patent infringement cases and make precedent whether they are really following the law or simply "legislating from the bench."

    5. Re:Marshall, TX by ThrowAwaySociety · · Score: 5, Interesting

      Or is it a revenue stream for them?

      You can bet that Bumfuck, TX would have a lot fewer judges, clerks, and lawyers if there weren't so many patent lawsuits filed there. For that reason alone, they are unlikely to crack down.

      Much as some states (Delaware, for example) have a nice side business iin providing corporation-friendly incorporation laws, this district generates considerable (for them) local revenue in patent suits by providing friendly jurisdiction.

      I wonder how much it would cost for technology corporations to simply buy up all the land in the district and effectively evict the entire population.

    6. Re:Marshall, TX by MozeeToby · · Score: 4, Informative

      ...that BetaNet is a patent troll... But given the letter of the law, it's not that simple.

      Being a patent troll isn't about the letter of the law, it's about taking advantage of the law in such a way that stifles innovation in order to maximize your profit. Specifically, it is about getting patents and never exercising them and, even more so, not suing when infringement becomes obvious but rather waiting until you can get the biggest payday possible. Basically it is being a tech company that profits through the legal system rather than through technology. It is the antithesis of what patent law is suposed to do, patent law is suposed to be a shield, not a sword.

    7. Re:Marshall, TX by JWSmythe · · Score: 5, Funny

      Which "blue pill" would that be?

          There are approx 1,200 different "blue pills".

          Acetaminophen Hydrocodone 650/10mg - pain killer

          Acylcovir 200mg - herpes symptom reducer

          Addreal 5mg to 10mg - amphetamine stimulant/ADD treatment

          Alazopram 1mg to 2mg - anti-anxiety/sleep aid

          Viagra 25mg to 100mg - erectile dysfunction treatment

          I could go on ... and on ... and on. :) Watch popping unidentified pills, it may not have the intended result. You may find all of them (and more) in the same drug cabinet.

          If he's been popping the 5th too often, he may need the 2nd.

          He may take the 3rd to keep going with the 5th, but then need the 4th to sleep.

          The 1st may be necessary from the beating he's going to get from the husband from the use of the 5th.

      --
      Serious? Seriousness is well above my pay grade.
    8. Re:Marshall, TX by gad_zuki! · · Score: 4, Insightful

      >Judges do not make the laws, they simply settle disputes with laws already made.

      These are FEDERAL laws. They are the same everywhere in the US. There's no special federal law for Texas. In other words, the judges are legislating from the bench already by interpreting these laws as more favorable to the patent trolls under the guise of a pro-business conservative mentality. They are legislating from the bench with their local mentalities, local court rules, and quick and dirty fast trials.

    9. Re:Marshall, TX by TheLink · · Score: 4, Interesting

      So what happens if a company doesn't sell to Marshall, Texas? Sells to everywhere else in the USA, but not there :).

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    10. Re:Marshall, TX by Zordak · · Score: 4, Insightful

      Still, it is awfully suspicious that patent trolls seem to be significantly more successful in East Texas compared to other District Courts. Patent issues are Constitutionally a Federal issue, so there's no legal reason for this one court to consistently rule contrary to the Federal standard for patent infringement. Perhaps a higher court should hear an appeal from one of this court's patent infringement cases and make precedent whether they are really following the law or simply "legislating from the bench."

      This paragraph does not make a lick of sense. The court in question is the Federal District Court for the Eastern District of Texas. It is a federal court hearing matters of federal patent law. And like all federal courts, its decisions are appealable to a Federal Court of Appeals. And since federal patent law is such a specialized area, Congress even gave us a special Court of Appeals for the Federal Circuit, which hears all patent appeals and sets precedent. The CAFC has heard LOTS of cases from the Eastern District of Texas, and has reversed when they felt it was necessary.

      Seriously, reading a patent thread on Slashdot is like watching a couple of MBAs argue heatedly about whether it's better to write Linux drivers in AJAX or SCSI.

      --

      Today's Sesame Street was brought to you by the number e.
  2. Actually good. by WetCat · · Score: 4, Funny

    You know, free software doesn't need any "activations". So it'll hurt a bit some proprietary makers...

  3. countersuit by tverbeek · · Score: 5, Funny

    I think any software company that wasn't named in this suit should sue for defamation. Since this is a "Who's Who" of software developers, being left out implies that they aren't important.

    --
    http://alternatives.rzero.com/
  4. IBM has an excellant defense strategy . . . by PolygamousRanchKid+ · · Score: 4, Insightful

    . . . they have a mighty frighteningly patent portfolio. If someone crops up, and slaps a ten page patent on their desk, claiming infringement . . . IBM slams a stack of patents the size of 50 Manhattan telephone books on their heads, and says, "Well, let's take a look at YOUR infringements."

    It's all part of the patent game that corporations play today. Patent trolls can shake down small companies, but not the big ones.

    --
    Schroedinger's Brexit: The UK is both in and out of the EU at the same time!
    1. Re:IBM has an excellant defense strategy . . . by Overzeetop · · Score: 5, Insightful

      Ahhh, but these patent trolls don't actually produce anything. They can't be violating anyone else's patents, unless a business method patent for patent trolling has been granted by the USPTO. They have nothing to lose but the time of their (presumably on-staff) lawyers. It's a speculative cash generation business for lawyers, and nothing more. They buy a few patents (or as many as they can for the capitol they raise from their investors), then turn around and sue everyone they can find. The payouts are so large that they need only hit once every few years to make a profit. There is no down side, except to come up completely empty and lose the investor's money. That's fairly unlikely when you take a shotgun approach, especially if you can hit small companies first with enough to pay back your initial investment.

      --
      Is it just my observation, or are there way too many stupid people in the world?
  5. Filed in Nov., 1990 by kimvette · · Score: 4, Insightful

    Filed in Nov., 1990, and they're just noticing these alleged "infringements" now, 19 years later? So, they waited until just before 20 years were up in order to submarine this and collect big. This is the kind of douchebag move is exactly why the laches defense exists. The execs of BetaNet deserve to have their collective asses handed to them.

    --
    The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
  6. Re:Good by MillenneumMan · · Score: 5, Insightful

    They are NOT stupid. They are corrupt. The voting positions of politicians are based almost entirely on campaign contributions, not on any moral or logical consideration. That is why I feel that modifying campaign finance laws so that you can only give money to a candidate for whom you can cast a vote would go a long ways toward cleaning up this mess. This would mean that corporations and unions and foreign individuals could no longer contribute to any candidate because those entities cannot cast a vote.

  7. RTFP by Tom · · Score: 4, Interesting

    (read the fucking patent)

    Actually, it's not that straightforward, and I'm not certain there will be much prior art. The patent doesn't just say "call here to verify your registration number".
    First, it's from 1991. Remember that year? That's 4 years before win95 came to the market without a TCP/IP stack. A network-based software activation was certainly a couple years ahead.
    Two, it isn't your "set a flag in config.ini" type of activation, either. The patent speaks about the construction of a tamperproof overlay program containing core parts of the actual application. In other words, you actually bought a car without a steering wheel and activation not only gives you a wheel, but also in a way that you can't mess around with it and they can take it away again after, say, your subscription period ends.

    That's pretty advanced for 1991, "software as a service" didn't become a buzzword until 10 years later.

    Disclaimer: Doesn't mean I like software patents. I don't. But some are more obviously trivial nonsense than others.

    --
    Assorted stuff I do sometimes: Lemuria.org
  8. Re:lulz by JWSmythe · · Score: 4, Funny

        Be careful. The method for utilizing the first position in a message exchange system for the purpose of stating unrelated exclamations including but not limited to the phrase "First Post", is patented.

        "Second Post" though, is fair game. :)

    --
    Serious? Seriousness is well above my pay grade.
  9. Re:Good by lorenlal · · Score: 4, Insightful

    This would mean that corporations and unions and foreign individuals could no longer contribute to any candidate because those entities cannot cast a vote.

    It's already illegal. Corporations are barred from donating to any specific candidate... BUT they can donate all they want to a party fund.

    That doesn't prevent it from happening....Members of those organizations can donate, so corporations tent to find a way to make sure their members "volunteer" to donate all that money. It's been done before, it'll be done again.

    Example.

  10. Re:Good by MozeeToby · · Score: 4, Interesting

    Just to be difficult, I'd like to point out that you'd see the same correlation of voting records to contributions if the system were working exactly as intended. That is, companies are more likely to support politicians whose views are in line with their business interests. People often assume that the correlation automatically implies causation the other way, that contributions buy votes, but that isn't *necessarily* the case. I'm not saying that it never is the case, just that the correlation can lead to more than one conclusion which are both equally valid. The exception to this argument is when a new issue comes up and companies dump money into campaign funds and the congress-critters suddenly see the other side of the issue. It's that kind of behavior that we should be watching for and it;s shocking to me that it isn't pointed out during the campaigns (probably because 'everyone' does it, so don't rock the boat).

    As for your plan of getting rid of corporate and union contributions, they are already significantly limited. These limitations are worked around by setting up Political Action Committees, which employees/members are 'encouraged' to donate money to. And in theory it makes sense, a person often wants to support politicians that will help the company they work for succeed, but in reality it ends up being the same old system that was in place before they had limitations on corporate contributions.

  11. Case law & a weak judiciary by sjbe · · Score: 4, Informative

    Judges do not make the laws, they simply settle disputes with laws already made.

    Judges don't make statutory laws but they do make case law which is just as important. Even the best statutory laws need interpretation. Our judicial system provides that interpretation. Occasionally judges (usually the State & Federal Supreme Courts) strike down laws that are incompatible with the existing legal system or interpret them in ways that change the legal system - hopefully for the better. With apologies to Martha Stewart, this is a Good Thing (tm).

    It would be a gross violation of their judicial power were they to legislate from the bench ( which many attempt anyway ).

    So you would prefer that Jim Crow laws had remained constitutional? Without judicial interpretation they would have remained the law of the land for much longer than they actually did. Laws are not always fair and the interpretation of them matters. Judges having the ability to interpret laws and occasionally striking them down is something you should be grateful to have - at least in the long run. Saying that judges shouldn't interpret laws belies an immense ignorance of how our legal system actually works. What you are really arguing for is a weak judiciary and a strong legislature. I prefer they be relatively balanced in power.

    Regardless, if you want to know why this particular area houses so many of these types of disputes, follow the money. They wouldn't do it if they weren't benefiting financially somehow.

    The cases are housed there because the US District Court in that location have the judicial experience and infrastructure to handle these cases better than almost anywhere else except maybe Central California and the Texas court has a reputation for plaintiff friendly juries and rules for fast trial proceedings.