USPTO Declares Invalid Third of Three Critical Rambus Patents
slew writes "This is a followup to this earlier story about 2 of 3 of Rambus's 'critical' patents being invalidated. Apparently now it's a hat-trick."
There's something that seems unsavory and wasteful about a business environment in which a company's stock value "fluctuates sharply on its successes and failures in patent litigation and licensing." The linked article offers a brief but decent summary of the way Rambus has profited over the years from these now-invalidated patents.
Up with this we will not put!
rambus. EOT.
So do Nvidia, Hewlett-Packard , et al have any chance of recovering any money they paid to Rambus, or are they simply out the entire amount, or has no actual money traded hands yet?
Sig Battery depleted. Reverting to safe mode.
And it ain't over, yet, because they can still appeal - considering the loss of revenue, you can bet they will.
Can't really call this a victory, because Rambus received a cut of memory sales for years, which every PC buyer ultimately paid.
A feeling of having made the same mistake before: Deja Foobar
There's something that seems unsavory and wasteful about a business environment in which a company's stock value "fluctuates sharply on its successes and failures in patent litigation and licensing."
If ARM holdings licensing came into question it would probably destroy the company's stock. I am loving the way the ARM architecture is handled, a lot more competition than x86, and it seems to be advancing quickly now that it has becoming popular.
I was trying to imagine today if ARM holdings could survive in a world without IP laws. I think yes it could. It seems that getting a hold of ARM holdings processor plans, from something like bittorrent, would not be super useful even to Texas Instruments, Samsung, or Nvidia engineers. ARM works with them to implement the design, so the payment agreement would probably just be altered slightly and ARM would have to protect its disclosure of ARM architecture details a little more closely. Perhaps ARM would morph more into a standards body and not be as profitable though? I am curious what someone with more info on the topic can share please!
It's not that a company's price fluctuates with the state of its patent portfolio. The problem is that 3 patents, which should have never been issued in the first place, terrorized inventors and suppressed innovation for multiple years. This is squarely an indictment of the USPTO and of the Congress.
Patents are a property; changes to the scope of existence of a property right change the value of the property governed by that right.
The market should estimate the possibility of a company's winning or losing a patent case; once the decision is made, the actual value of the company has changed because of the new determination of whether the company has the right.
The only alternative would be to split the patent right King-solomon style. But that only happens if both parties are willing to settle.
Parties are sometimes not willing to settle. They may know or mistakenly believe that they are in the right, or they may expect they can force the other side to settle for more later.
In addition, mucking up their estimation as to whether they will win--and thus whether it makes sense to settle--is the fact that empirical research demonstrates that lawyers are more attractive to clients when they project a higher chance of winning. Thus it is in the interest of the lawyers to artificially inflate the chance of winning by at least some margin--whether done subconsciously or deliberately--and this means parties have biased information when they decide whether to settle.
Finally, occasionally a court will do something nobody expected, either legitimately for reasons people did not anticipate would motivate them or out of stupidity.
-- IANAL, this isn't legal advice, and definitely isn't legal advice for you. Also, Squee!
Must I continually remind everyone that Rambus technology was integrated in the 21464 Alpha processor design and it proved to be viable and fastest on the market, but for some reason Rambus is being run by patent trolls now.
It's kind of like how US has forced a Service industry onto Americans that all technology firms are looking at making more money on suing eachother for misusing their technology rather than actually using their technology.
All you need to do is look in US Code and you'll see the attitude of lawyers supporting this kind of behaviour.
There's something that seems unsavory and wasteful about a business environment in which a company's stock value "fluctuates sharply on its successes and failures in patent litigation and licensing."
No, there's not. Do you see the bulk of silicon made in the USA? Thought so. Buy any consumer-grade electronics, and it will say Made in China. Made in Taiwan is already higher-end. I've been given some Christmas candy that was friggin' made in China. The only thing left is R&D. Research should lead to inventions, which should lead to patents.
The problem is of course, overly broad patents, obvious patents (*), etc. But that there are companies doing the research, creating products, then license out the manufacturing and everything else, nothing strange about that. And their only assets are their people and their patent portfolios.
(*) in this case: patents for stuff that any engineer, put in a room and given a problem, would come up with before the day is over. I'm not talking about old patents for something, then more recently "the same thing, but on a computer" and nowadays "the same thing, but on a mobile device".
Parser error. Third of three is 1 patent, not 2. Editors, slashdot, etc.
I was given a very nice Compaq Deskpro series computer with about a 1.5G P4 (this was a while ago!) and it used their awful RAM. Apparently Compaq designed motherboards for a short time with their product, then rapidly moved away from them because I shortly thereafter got the same exact series computer with about a 2.0G processor and it used normal RAM. Thankfully, they got away from using it quickly.
I had to purchase a RAM upgrade to bring it from 512K to 1G RAM, and felt absolutely disgusted about HAVING to channel any money at all their way, but I really had no choice, I: wasn't about to throw away a perfectly good system just because it was low on RAM, but the memory cost me about 3x what the average DIMM of DDR cost at the time, absolutely obscene.
I hope they can go away and die now, I'm just sorry they were able to collude and extort the industry for as long as they did.
-- You are in a maze of little, twisty passages, all different... --
He right know what infinitive is, don't this need prove for criticizing grammar prescriptivist.
How sense this criticism make, another matter is.
Yet no proof there is of malapropism.
-- IANAL, this isn't legal advice, and definitely isn't legal advice for you. Also, Squee!
Was RAMBUTTS, as that is what they did with their bogus patents. However the Board of Directors though the name might be to telling so they dropped the T's.
Many PC builders and customers are still sore today.
Silence is a state of mime.
USPTO: "Yeah, we approved these totally bogus patents that resulted in billions of dollars of litigation and now we're affirming our own malfeasance. What's your problem?" The USPTO needs to be sued into the stone age for this fraud.
I don't think it's an unsavory or wasteful business environment when a company stock price "fluctuates sharply on its successes and failures in patent litigation and licensing."
Think of a university research group which discovers a new drug candidate, and forms a company to pursue its further clinical trials and licensing. The financial health of this company will be wholly determined by its ability to patent and license.
Think of a pharma company which spends $200mil research on each drug candidate, and every four years it gets one $10bil success for 50 failures. The financial health of this company will rest solely on its ability to protect (through patent litigation and licensing) the $10bil revenue that makes up for the $10bil expenses.
These both seem like cases where the market is operating as intended.
Hey MM. I like your writing style.
Rambus piped it's labors in a patented style to secure those improvements it did independently for 21464 Alpha under HP's incorporation of it. Just because someone else has a patent on it doesn't mean that other works in parallel owe any kind of royalties when none of the COMPETITORS have evidence of unpayed consultation. Rambus is a competitor not an infringer.
This is my RAM. There are many like it, but this one is mine. I'm selling it to someone else and if anyone follows after my likeness of this sale then I will sue the similarities if I can ever prove that they were consulted instead of vested in parallel as a competing solution.
A sudden outbreak of commonsense at the USPTO?
Whatever it is, it couldn't have happened to a more deserving company.
It's a shame that the terms of the past settlements probably have clauses keeping the paying party from getting anything back.
The way Rambus has profited over the years from these now-invalidated patents ...
In other words, Rambus is nothing but a scam
And the amazing part is that the America knowingly allows such a scam to exist for such a looooooooooonnng time !!
Muchas Gracias, Señor Edward Snowden !
3 down, many thousands to go.
Calling in Seal Team 6 on the board of directors would have been a preferable solution.
Comment removed based on user account deletion
They implemented a COMMON IDEA into a proprietary optimized specialized form-factor.
Rambus used in 21464 Alpha was faster than conventional RAM because of it's bandwidth regardless of latency.
Sun Microsystems was holding onto that Rambus flame for a while too.
I bet you get angry when you see an aisle of Organic non-GMO'd apples sold next to more-expensive Hybrid animals. But this was not the case in Rambus but they were actually the cheaper hardware sale in terms of Performance they offered to more expensive competitors.
Corporations work by Murphy's Law, not moral law overlaid by charter law.
All that needs to be done is prove whether their use depends on another's IP and that they both didn't just borrow from a natural law not proprietary to either before they both privatized their own implementations.
It's people like you that would say that AIDS is a moral issue as well, but in-fact AIDS rents the planet to mankind not the other way around (atm). Though I guess I'm the only one that thinks it's pointless for making a law that says all criminaqls must write their names on their bullets so we know who did it.
Well does this mean that if a company takes out a bogus patent it runs the risk in the future of damages?
This might be a fair mechanism to slow down patent trolls because the act of taking out as patent is also a potential risk as well as a reward.
RMBS 52wk Range: 4.00 - 22.20 Currently around 7.8 I hope they drop like thermite tapping a lake for ice fishing. /Micron Technologies stockholder
True--a compulsory licensing scheme is one option that could make more sense. IIRC, courts have sometimes awarded compulsory licenses in the past in patent cases, but it is relatively rare. It may have to do with those cases where there is a strong public interest in allowing the infringing party to continue to infringe, but don't quote me on that--I'd have to look it up.
One problem with it is that it leaves courts to figure out after-the-fact what "fair" royalty would have been negotiated between the parties. One thing that would be a problem with it as applied to software patents is how to deal with free software when a company would not have been willing to license its patent for free.
-- IANAL, this isn't legal advice, and definitely isn't legal advice for you. Also, Squee!
Now that the patent has been overturned, all companies that paid royalties to Rambus should be fully refunded. Otherwise, there is no punishment for making invalid patent claims and profiting from them.
The corporate entity should not protect the individual owners and their lawyers from financial remuneration. This would chill the patent war immeasurably.
I'm not saying this particular business was of value, but what in particular is wrong when a company's stock value reflects real changes in the company's business. If your product is protected by a patent, and that patent is invalidated, you are suddenly opened up to competition that you weren't before and intelligent investors will realize that this will affect profits down the road.