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World's Largest Patent Troll Fires First Salvo

ChiefMonkeyGrinder writes "Yesterday the biggest software patent troll of all finally woke from its slumbers: Intellectual Ventures filed patent infringement complaints in the US District Court of Delaware against companies in the software security, DRAM and Flash memory, and field-programmable gate array industries. Intellectual Ventures was co-founded by Microsoft's former CTO Nathan Myhrvold, with others from Intel and a Seattle-based law firm." We discussed IV's potential for patent trollery last spring.

26 of 189 comments (clear)

  1. Troll'd by diskofish · · Score: 3

    You've been troll'd!
    You've been troll'd!
    Have a nice day!


    Troll'd

  2. Re:My question about IV... by TheL0ser · · Score: 3, Insightful

    They'll "let" other people use them.... and then sue them. Without even looking at it, I'm sure some of the patents are so broad I'm violating one by breathing.

  3. Re:My question about IV... by gstoddart · · Score: 5, Informative

    Will IV allow licensing of their patent portfolio, or will they do like a lot of companies, just get patents so nobody else can use them?

    Well, the original Slashdot article linked in TFS indicates that "it doesn't actually use these patents – except to threaten people with. In other words, Intellectual Ventures is a patent troll". They only license their patent portfolio. Expect this to basically be a shakedown.

    Man, I hate that a company can exist just to own patents and sue people.

    --
    Lost at C:>. Found at C.
  4. Good. by h4rm0ny · · Score: 4, Insightful

    Well, it's not good directly, but if the big companies start getting hit by patent attacks, then we might soon see absurd patent laws and approvals get an overdue overhaul. Previously, they've seemed like an advantage to the big players because they form a barrier to entry that keeps out new competition. The big players have armouries of patents and, much like nuclear weapons are supposed to protect through a principle of MAD, they didn't use them on each other much. But it seems there is rampant proliferation and we're seeing patent fights between big players erupt despite this (e.g. Nokia and Apple). So maybe disillusionment with them will creep in. And unlike nuclear weapons, disarmament is simple - big companies can't advocate for a change in the laws of Physics, but changes in the laws of the land, they can do.

    Maybe it's optimistic. Maybe it will all settle down into a cartel and the patent threat to small players will remain. But if the patent trolls are greedy enough to really take a bite out of the hand that feeds them, perhaps not.

    --

    Aide-toi, le Ciel t'aidera - Jeanne D'Arc.
    1. Re:Good. by cptdondo · · Score: 4, Insightful

      To put in the perspective of world politics, the big companies are like Russia, China, or the US. Each has significant assets to protect, making MAD a viable way to protect themselves.

      The patent trolls are like North Korea or Iran; they have no real assets to protect and nothing of significant value that can be destroyed (assuming you don't give a damn about people or jobs, which they don't).

      So as long as the big companies have something to protect, the North Koreas and Irans of the business world will continue to harass them until the rules change.

  5. Yes, Per Patent by eldavojohn · · Score: 4, Informative

    Will IV allow licensing of their patent portfolio, or will they do like a lot of companies, just get patents so nobody else can use them?

    Well, from their their website they list all their "products" and services:

    • Purchasing a nonexclusive license to relevant IV portfolio(s) on a term or life-of-patent basis
    • Purchasing an exclusive license (subject to pre-existing licenses) to selected IV invention(s) on a term or life-of-patent basis
    • AccessingIntellectual Property to use as defense against the threat of corporate assertions
    • Leveraging IV’s sophisticated acquisition capabilities to gain access to inventions of particular interest to you
    • Using IV as a financing source for mergers & acquisitions (M&A) whereby IV agrees to purchase a target company’sIntellectual Property to “bridge” the acquirer’s effective offer
    • Creating new inventions in conjunction with IV’s inventors and invention process

    The first bullet appears to answer your question that yes, they do. But when you say "patent portfolio" I don't think you'll find anyone with enough cash to access to the whole portfolio, most likely it's one license to one patent at a time. I think their big "product" is providing a service to liquidate your patent very easily (like a pawn shop for patents) so far. This salvo may change that.

    --
    My work here is dung.
  6. swine... by spidercoz · · Score: 3, Insightful

    Corporate leeches like this are why American capitalism is in the toilet.

    --
    "I disapprove of what you say, but I will defend to the death your right to say it." - Evelyn Beatrice Hall, re Voltaire
    1. Re:swine... by noidentity · · Score: 5, Insightful

      No, the corruption of capitalism with imaginary property is why these things are in the toilet. It's an artificial monopoly over everyone's (non-imaginary) property.

  7. Actually the Article Notes RPX Corp. by eldavojohn · · Score: 5, Interesting

    Good, I think. Hopefully this will finally cause big companies to fight to get rid of software patents and patent troll companies as a whole.

    Actually, the response has not been to rid the world of software patents as you so hoped and the threat of Intellectual Ventures has long been affecting companies. From the article:

    The threat posed by Intellectual Ventures helped prompt the rise of firms like RPX Corp. It is paid by companies to buy up potentially threatening patents; the companies receive licenses to those patents, and RPX pledges never to sue over them.

    Think about that for a second. The system for software patents is so screwed up and backwards that it's cheaper to pay someone to buy up a patent and promise to never sue over it than it is for you to build a patent war chest and wait for the big one to hit. It's like patent insurance. Easily the most interesting thing in the article to me. Unfortunately this shows tolerance and a way to move forward.

    --
    My work here is dung.
  8. Legal Blackmail by Infiniti2000 · · Score: 4, Interesting

    My biggest gripe about patents is that they're kind of like legal blackmail. "Pay me money or I'll ruin your company in a large number of frivolous lawsuits." Patents were originally intended to protect inventors, but companies like IV have provided an evil twist.

  9. Intel vs. McAfee via IV by bark · · Score: 5, Interesting

    The article states that Intel is one of the investors of Intellectual Ventures. The article also says that one of the lawsuits was filed against McAfee, which Intel recently bought. So in this case, Intel is hiring someone else to sue itself - it would be much easier to hold an employee venting day if that's all they wanted to do.

  10. Neal Stephenson has a hand in this by jefurii · · Score: 5, Interesting
    From the Intellectual Ventures page on his personal site:

    I work part-time at Intellectual Ventures Labs, which enables me to get out of the house and exercise the nerdy predilections that I used to exercise at Blue Origin. This is a sort of all-purpose science lab and thing-making facility where new inventions are developed.

    1. Re:Neal Stephenson has a hand in this by theodicey · · Score: 5, Insightful

      I once knew someone who was naive enough to confuse a patent troll operation with a real Menlo Park skunkworks/invention lab.

      She was 22 years old and looking for a job; what's Stephenson's excuse?

    2. Re:Neal Stephenson has a hand in this by noidentity · · Score: 3, Insightful

      I work part-time at Intellectual Ventures Labs, which enables me to get out of the house and exercise the nerdy predilections that I used to exercise at Blue Origin. This is a sort of all-purpose science lab and thing-making facility where new inventions are developed and then locked away for 20 years.

      There, fixed that for you Mr. Stephenson.

  11. Oh No, They Do Much More Than That! by eldavojohn · · Score: 4, Informative

    They only license their patent portfolio.

    Oh, how I wish that was all that they did. As you can see from their site:

    Intellectual Ventures has been actively inventing since August 2003. The company has filed thousands of patent applications in more than 50 technology areas and has thousands of ideas under consideration.

    Since 2003 they have been gumming up the USPTO as well. Note that they've filed thousands of patent applications. No mention of how many were issued. It's entirely possible that they were issued to the actual people working at IV and not to IV but a search shows nine patents issued to IV on the USPTO.

    So remember the TED Laser Mosquito/Malaria technology? That's just a patent waiting to be issued then licensed but until then I wouldn't recommend building any.

    --
    My work here is dung.
    1. Re:Oh No, They Do Much More Than That! by eldavojohn · · Score: 4, Funny

      ddos the patent office, everyone file hundreds of patents.

      *chuckles*

      Oh Anonymous Coward, not all of life's problems can be solved with a DDOS. Like when my girlfriend left me last week and blocked my phone number -- calling her until her voice mail was full from work and friend's phones did no good.

      --
      My work here is dung.
    2. Re:Oh No, They Do Much More Than That! by Nethemas+the+Great · · Score: 3, Interesting

      Unfortunately people have been doing this ceaselessly for the last decade+. The only thing that has accomplished is cause the USPTO to get significantly sloppier in their work. The result of which is simply an ever growing body of patents with overly broad terms, little regard for prior art, etc. In short, it has only made the trolls stronger and more abundant.

      With respect to goods/service producing companies, patents are no longer about protecting R&D investments. Rather it's about ensuring a defense using the M.A.D. doctrine is in place to safeguard their future ability to conduct business. Unfortunately, M.A.D. cannot be established against a patent holding corporation such as I.V. since no one has yet figured out how to patent aspects of the patenting process. These trolls, and I would assert patents in general, are one of the biggest hindrances to the U.S. economy. This is putting us at a significant competitive disadvantage to the rest of the world and it's only going to get worse.

      --
      Two of my imaginary friends reproduced once ... with negative results.
  12. Re:I own a patent. by h4rm0ny · · Score: 3, Insightful

    You make two mistakes in asking what /. thinks are the correct answers. One is assuming that Slashdot has a group mind, the second is that the most vocal are the most representative. But with those caveats:

    Sure, you could sell your patent if that's the best way of capitalising on it. But whether that's good or bad depends on other factors - mainly the validity of your patent. If you just patented an idea that would likely occur to other people and sat on it until someone else did think of it and then sued over it... That would be bad. You've contributed nothing and caused a destructive effect. If you were an independent research chemist who came up with an innovative new process after much testing and it's far from obvious, then by all means approach another company and sell or licence your patent. But you see the difference between the two examples is not whether or not the patent has been sold. It's whether the patent has been originally awarded to someone or some group that actually added to society with their original contribution. What companies like this do, is file as many stupid obvious or natural ideas as they can and then look for someone else to independently stumble into the same area before pouncing.

    The answer to the question of whether you have the right to sell the patent, is actually more, do you have the right to a patent. I.e. did you come up with something genuinely original, either through your unique genius or more likely careful testing and research, that has added to society's capability, or did you write down "a website could have a 'one-click' button that lets you buy things" and wait for someone to implement it.

    --

    Aide-toi, le Ciel t'aidera - Jeanne D'Arc.
  13. Re:But they got TAX BREAKS by microbox · · Score: 3, Insightful

    These people are actually killing the economy and making people poor by creating a money-sink in the economy where no value is added. They are not only hurting these big companies with their greed, they are helping to force a divide in wealth distribution and indirectly making real people go hungry.

    Your logic is impecable; however, it will bounch straight off of market fundamentalists. The economy of imaginary things is precisely what the new world order stands for, and an expression of the correctness of laisezz-faire capitalism. Railing against it is totalitarian, and will just interfer with wealth creation and freedom. Interesting that wealth is created out of imaginary things that are meaningless, trivial, and detrimental to getting real work done. But, in the words of one venture capitalist: IP is the new gold. The economy has to grow somehow -- and that is the ultimate rationalisation for this madness.

    --

    Like all pain, suffering is a signal that something isn't right
  14. Just Like Copyright by bky1701 · · Score: 5, Insightful

    Imaginary property like patents and copyright always consolidates power over information into the hands of the few. They do not protect the creators, they make ideas a commodity to be traded.

  15. Trolls aren't the biggest problem by ciaran_o_riordan · · Score: 4, Informative

    Below are links to background info, but keep in mind that trolls create a tax, but they're not the big problem. They're generally not the patent holders that break standards or exclude free software projects. They're just after money, so they are parasites to the rich. The MPEG-LA patents, for example, are much more harmful (they blocked HTML5 from including a standard video format) and are held by "real" software companies.

    swpat.org is a publicly editable wiki, help welcome.

  16. You Misunderstand Me by eldavojohn · · Score: 4, Insightful

    I have no problem with what IBM does. They are a practicing entity which is directly opposite of what IV does. The difference is that a high rate of IBM's patents are granted. This is proper use of the patent system because IBM then makes those products.

    I suspect Intellectual Ventures spends a nice chunk of it's money on forcing patents through the system. Thousands of patents that evidently have little business being patents. But their legion of lawyers persists pushing these patents and revisioning them. Yes, they pay thousands of dollars on each patent to do this but this is an abuse of the patent system if they do this just because they have money.

    Imagine if this first salvo results in hundreds of millions of dollars going to IV. Then what? Then that money goes into putting more strain on the USPTO and more lawyers are hired to push unwarranted patents through the system. Then those win more suits and more lawyers are hired in a classic breeder model of lawyer propagation. If my calculations are correct, by the year 2054 the Earth will be a mass of patent lawyers expanding outward at the speed of light only to eventually collapse back in on itself causing a "Big Crunch" and ending the universe until the next big bang. Intellectual Ventures must be stopped (with apologies to Stanislaw Lem).

    But seriously, the two are totally different in that one produces and one sues.

    --
    My work here is dung.
  17. Hate to One Up Ya But ... by eldavojohn · · Score: 4, Funny

    She's already been reported to Anonymous as the lead prosecutor in the Assange case. She will feel my love yet.

    --
    My work here is dung.
  18. Re:My question about IV... by chrb · · Score: 4, Interesting

    Man, I hate that a company can exist just to own patents and sue people.

    Under the current patent system, this company type is likely to be the most profitable. By not actually utilising any patents, they are free from any claims of patent infringement. This means that all of those companies which have built up huge patent war chests with the aim of a "mutually assured destruction" if they are ever sued suddenly become vulnerable. There is no "patent war" defense against a company that doesn't make anything. If you don't make anything, you can't be countersued. From a business perspective it's an awesome idea. If Nokia were to set up an independent legal entity and assign ownership of their patents to that entity, that legal entity could then sue Apple without any fear of being countersued. Apple could do the same. I'm surprised we haven't seen any large companies doing this earlier, but if IV is successful, I bet we'll see a lot more of this company type in the future.

  19. Re:But they got TAX BREAKS by mcgrew · · Score: 3, Insightful

    I thought the justification for continuing tax breaks for the wealthiest Americans was that it would help the economy, because investment would trickle down through innovation / job creation.

    "Trickle down economics" is rank bullshit. Wealth doesn't trickle down, it flows up. Wealth is created on the factory floor, the programmer's cube, the fry cook's stove. The wealthy do not create wealth, they control wealth.

    Giving a rich man money doesn't give him any incentive to put it into the economy at all, let alone create jobs. If business is bad and he can't sell many of his wares, no tax break will induce him to hire. The only way he's going to hire is if demand for his product outstrips his capacity to supply it.

    If you want to stimulate job creation, you give tax breaks to the middle clas and poor. Especially the poor, who have to spend that money out of necessity. They spend that extra money on goods that the rich man's employees creates, and if they buy enough, the rich man will have to hire to meet the demand.

    Don't give a tax break to the rich for hiring the poor, give it to the poor themselves.

    Note that most poor in the US are, in fact, workers.

  20. Re:My question about IV... by Opportunist · · Score: 3, Insightful

    Even if there is, do you go to the patent office every time you do something obvious just to check whether the idiots granted a patent on it without having a clue just that they just patented the equivalent of the wheel?

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.