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Nest Labs Calls Honeywell Lawsuit 'Worse Than Patent Troll'

UnknowingFool writes "Over a year ago, Nest Labs launched the Learning Thermostat. The brainchild of Tony Fadell, former head of Apple's iPod and iPhone division, the Learning Thermostat promised a self-programming and wifi-enabled thermostat that would save energy costs. After some glowing reviews, Nest found itself in a patent infringement lawsuit against Honeywell. Nest responded with multiple claims calling Honeywell 'worse than a patent troll.' Among Nest's claims: Honeywell hid prior art (some on some previous patents that they owned) and inapplicable patents (patent on mechanical potentiometer when Nest's product does not include one). Nest's stance is that Honeywell filed the lawsuits not to extract money but to set back progress so that they can control the industry."

47 of 137 comments (clear)

  1. Worse than a patent Troll? by BagOBones · · Score: 5, Insightful

    I thought allowing your products to succeed and preventing others from entering the market is part of the idea of a patent? Unlike a troll that has no product, at least Honeywell has one... Even if their claims do not apply. ;)

    --
    EA David Gardner -"... but the consumers have proven that actually what they want is fun."
    1. Re:Worse than a patent Troll? by Anonymous Coward · · Score: 4, Insightful

      I think it depends your values, but I could see where this could be considered worse: Honeywell is trying to prevent progress (so that they might catch up and own the market, like they do for less advanced thermostats), whereas a patent troll is all for progress as long as they get a cut.

    2. Re:Worse than a patent Troll? by MozeeToby · · Score: 4, Insightful

      On the other hand, at least a patent troll (presumably) holds a real patent that the other company is infringing upon. Whereas Nest is saying Honeywell is just throwing litigation at them that Honeywell knows they can't win, in the hopes of either e generous settlement or keeping Nest out of the market long enough for Honeywell to reenforce their monopoly.

    3. Re:Worse than a patent Troll? by canajin56 · · Score: 4, Insightful

      Nope, it's a lot worse to have a patent on a device you make, and sue competitors who do not violate the patent in hopes of putting them out of business with legal fees. Patent trolls may have possibly invalid claims and may be extorting, but Honeywell knows it is filing groundless lawsuits in hopes of crushing competition without having to innovate or compete. Patent trolls just want some money, not to destroy you and bury your corpse.

      --
      ASCII stupid question, get a stupid ANSI
    4. Re:Worse than a patent Troll? by Anonymous Coward · · Score: 2, Interesting

      In context, I have always seen patent trolls portrayed as non-practicing entities- do nothing companies that sit on and exploit patents for monetary gain. While we can argue that Honeywell is cynically exploiting its patents for monetary gain, it's certainly not a non-practicing entity. They're a huge manufacturer, a leader in their field. They just happen to be using any means to help protect their market share.

    5. Re:Worse than a patent Troll? by hawguy · · Score: 5, Informative

      Nope, it's a lot worse to have a patent on a device you make, and sue competitors who do not violate the patent in hopes of putting them out of business with legal fees. Patent trolls may have possibly invalid claims and may be extorting, but Honeywell knows it is filing groundless lawsuits in hopes of crushing competition without having to innovate or compete. Patent trolls just want some money, not to destroy you and bury your corpse.

      But is that really what is happening in this case?

      For example, Nest claims that this patent:

      http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PALL&p=1&u=%2Fnetahtml%2FPTO%2Fsrchnum.htm&r=1&f=G&l=50&s1=5736795.PN.&OS=PN/5736795&RS=PN/5736795

      A solid state power switching circuit for alternating current loads, in which operating power for the circuit is diverted from the switched current during power stealing intervals self-synchronized with the alternating current waveform. During periods in which current to the load is commanded, a load current switch is maintained in a low impedance state except for the duration of a short power stealing interval each half-cycle of the supplied alternating current. Self-synchronization is achieved with a current detector which senses whether or not the magnitude of the current diverted during each power stealing interval exceeds a current threshold, and pulse generator logic which shifts the power stealing intervals in time relative to the alternating current waveform in response to the previously sensed current magnitude.

      Is a an expired patent that provides prior art for this one:

      http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PALL&p=1&u=%2Fnetahtml%2FPTO%2Fsrchnum.htm&r=1&f=G&l=50&s1=7476988.PN.&OS=PN/7476988&RS=PN/7476988

      A power stealing system having a switch and a circuit that takes power from equipment to operate control electronics. The system may be such that power stealing occurs while the equipment is not powered to avoid disruption or false signals in the electronics or equipment. The circuit may convey taken power to a storage device. The electronics may be powered by the storage device. The storage device may have a capacitor, a rechargeable battery, a non-chargeable battery, a solar cell, fuel cell, line power, and/or the like.

      I'm no patent attorney, but they look completely different to me. One synchronizes with an AC signal to steal power only during part of the waveform, while the other steals power when the powered device isn't currently using it.

    6. Re:Worse than a patent Troll? by poetmatt · · Score: 3, Interesting

      I'm no patent attorney

      There's your answer. The rest is for the judge to decide. If you ask me about my personal opinion, it's very damning and pretty much in line with what Honeywell is known for. However, I'm not the one making the decision here.

    7. Re:Worse than a patent Troll? by JaredOfEuropa · · Score: 5, Insightful
      The original idea of patents was to foster innovation by encouraging inventors to make their inventions public, receiving a temporary monopoly in return. Historically, patents were considered to be an artificial construct to benefit society, not a natural right of inventors. The idea is that society benefits from the disclosure of non-obvious ideas, and from inventions that are perhaps expensive to implement.

      Now take a look at the patents claimed by Honeywell. It's all obvious crap and design gimmicks, simple intellectual land-grab. Society stands to benefit not one iota by the disclosure of these ideas, and would not have been worse off if Honeywell would have kept them secret. Someone else could have (and has) come up with these "ideas" in the course of designing their own product, without the benefit of knowledge of the details of these patents.

      The granting [of] patents 'inflames cupidity', excites fraud, stimulates men to run after schemes that may enable them to levy a tax on the public, begets disputes and quarrels betwixt inventors, provokes endless lawsuits...The principle of the law from which such consequences flow cannot be just."

      This is from an issue of The Economist... published in 1851.

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    8. Re:Worse than a patent Troll? by Anonymous Coward · · Score: 5, Interesting

      Right, but you're missing the point: A patent troll wouldn't try to stop this product, they'd just want a cut. Honeywell wants to eliminate this product even though they don't have a product as advanced. Therefore if you value progress, you'd be better of if these patents were owned by patent trolls. That Honeywell makes less advanced competing products may help people justify the validity of these patents more, but in the end the consumer will be worse off with the patents in the hands of Honeywell than in the hands of do-nothing trolls, because do-nothings trolls will let other people do-something and Honeywell will not.
       
      (I never thought I'd argue on the side of patent trolls, but this is mainly just an intellectual exercise anyway. I doubt any of these patents are justifiable as "promoting science and the useful arts", in that the technology would be created even if the patents were never expected or granted.)

    9. Re:Worse than a patent Troll? by Dishevel · · Score: 3, Informative

      They did not say Honeywell was a patent troll. They said they were worse than one.

      --
      Why is it so hard to only have politicians for a few years, then have them go away?
    10. Re:Worse than a patent Troll? by DemonGenius · · Score: 3, Insightful

      I'm no patent attorney

      There's your answer. The rest is for the judge to decide. If you ask me about my personal opinion, it's very damning and pretty much in line with what Honeywell is known for. However, I'm not the one making the decision here.

      Not being a patent attorney doesn't bar someone from an opinion nor does it make him/her oblivious to what is moral and what isn't. Judges have been known to drop the ball many times in history. In a way, the outcome of this is OUR decision in terms of who we vote into office if we vote in the very people who support the kind of tactics that Honeywell is playing.

      I certainly would never consider the word of a judge as absolute especially if he/she's not on the side of the common person. You should read this comment, pretty much reiterates my point.

    11. Re:Worse than a patent Troll? by CaptainLugnuts · · Score: 3, Insightful
      They both are the same thing.

      The first one listed is a specific way of powering a device fed by AC in such a way as not to trip the relay that old style furnaces use for 'call heat.'

      The second one is a generic way that covers all methods of powering a device without unwanted side-effects, like tripping the relay that old style furnaces use for 'call heat.'

      The second patent listed cover the specific AC case. Neither should have been granted a patent as the solution is obvious to an EE who needs to grab a little bit of power for recharging batteries/caps in a thermostat.

    12. Re:Worse than a patent Troll? by SuricouRaven · · Score: 2

      Ah, the old comparitor-and-switch device. I've seen that before, in applications that need a tiny bit of power from the mains without the size and expense of a full power supply. The power factor would be hell, if they ever drew enough current to worry about.

    13. Re:Worse than a patent Troll? by sjames · · Score: 2

      They just happen to be using any means to help protect their market share.

      Any means other than exercising what they claim to be their patent in order to produce an advanced product.

      Since they aren't exercising the patents they claim, they are within that scope a troll. They want to kill the advanced products so they can continue to dominate the industry with their current inferior products.

      Effectively, they want to halt the march of progress.

    14. Re:Worse than a patent Troll? by sjames · · Score: 2

      And it's a fairly common technique. The first one I personally dealt with was an Estes rocket launcher. It stole power from the ignition circuit to light a light bulb without allowing so much current that it triggered the launch. That was even more clever since that meant the bulb indicated not only the armed condition but that there was continuity with the igniter and the battery. Also, it was simple enough for a child to understand its theory of operation.

      That was in the '70s and was hardly the first case of leeching power from a control or signaling circuit.

  2. I guess.. by Anonymous Coward · · Score: 5, Funny

    Honeywell is turning up the heat on the competition...

    1. Re:I guess.. by Picass0 · · Score: 2

      (sunglasses)

  3. Didn't learn anything by synapse7 · · Score: 2

    Tony obviously didn't learn anything from Jobs. Tony should patent the shape of the honeywell thermostat and get injunctions against honeywell.

    1. Re:Didn't learn anything by St.Creed · · Score: 2

      It's actually a textbook case. In Austria one company pushed another, very old and established company, right out of the market using this tactic. It's viable, and companies use it. So yes, if Honeywell hasn't applied for branding rights on that, by all means bring out your own thermostat in that shape and do so. You can't do it before you actually establish market presence though. Which would bring the Honeywell patents down upon you. It's a sort of "who shoots first" situation where Honeywell commands the high ground and fully intends to keep it that way.

      --
      Therefore, by the (faulty) logic you're using, you're just a cow with a keyboard - osu-neko (2604)
  4. Honeywell is known for this by governorx · · Score: 2

    Honeywell is known for this type of practice. I remember the last sales rep that came to our office. His statement was along the lines of 'you should just buy from us because we own all the IP. Even if you buy from a distributor or competitor you are still buying from us.'

    They want their section of the market and will do anything to keep it.

    1. Re:Honeywell is known for this by hawguy · · Score: 2

      Honeywell is known for this type of practice. I remember the last sales rep that came to our office. His statement was along the lines of 'you should just buy from us because we own all the IP. Even if you buy from a distributor or competitor you are still buying from us.'

      They want their section of the market and will do anything to keep it.

      If they hold legitimate patents to the technology, what else would they be expected to do?

    2. Re:Honeywell is known for this by Reverand+Dave · · Score: 2

      It sounds to me like they have a monopoly and need to be broken up and have their patents redistributed.

      --
      I got here through a series of tubes
    3. Re:Honeywell is known for this by Anonymous Coward · · Score: 5, Interesting

      Well, the problem is that they don't really hold legitimate patents as much as they held legitimate patents. Those patents expired some time ago, and as Honeywell hasn't actually innovated in the thermostat space in the last 40 years or so, they didn't really have any new patents to file. So, it seems they just went out and filed essentially the same patents again, using sufficiently different language that nobody really noticed, giving them new "valid" patents. Unfortunately, this practice is of dubious legality to say the least.

    4. Re:Honeywell is known for this by gnick · · Score: 2

      Monopoly? How can that be when the novel invention of a thermostat is so recent? How can you be so quick to yank it away from them?

      --
      He's getting rather old, but he's a good mouse.
  5. Not a patent troll by girlintraining · · Score: 4, Informative

    Nest's stance is that Honeywell filed the lawsuits not to extract money but to set back progress so that they can control the industry."

    That would make this a Frivolous lawsuit , not a patent troll, and as such the defendant would be subject to compensation.

    --
    #fuckbeta #iamslashdot #dicemustdie
    1. Re:Not a patent troll by Anonymous Coward · · Score: 3, Informative

      And thus the claim, "*worse* than a patent troll," not the claim, "a patent troll."

  6. Re:byoo, hyoo by Jeng · · Score: 4, Interesting

    So how do you feel about companies re-applying for a patent that they already received after the original patent has expired as a way of restricting competition?

    --
    Don't know something? Look it up. Still don't know? Then ask.
  7. How did they hide prior patents? by hawguy · · Score: 4, Insightful

    TFA says:

    and the patents in question should all be invalidated by prior art — even, in some cases, by previous Honeywell patents Nest claims the company hid from the Patent Office.

    How did Honeywell hide previous patents that are, by the very nature of patents, publicly available? If they are expired patents that are relevant in proving prior art, Nest themselves should have found the patents in their own prior-art search. It's clear from the many patents that have been issued despite clear prior art that the patent office themselves does not do a sufficient job of searching for prior art.

    While I do think that Honeywell is trying to shut out the competition, if they have a patent covering the technology that Nest is using, that's well within their rights. And since Honeywell does sell programmable thermostats, I think what they are doing is far less insidious than patent trolls that gather patent portfolios and using them to extract money from companies even though the troll has no intention of ever producing a product that uses the patent.

    1. Re:How did they hide prior patents? by Zerth · · Score: 2, Informative

      They hid them simply by not mentioning them to the patent examiner.

      Patent examiners do not do any research towards finding prior art. None. They expect the applicant to have done their research and include any relevant prior patents, since, as you said, patents are publicly available.

    2. Re:How did they hide prior patents? by nameer · · Score: 5, Informative

      Duty of disclosure means that if you are aware of relevant prior art when applying for a patent in the US, you are obligated to inform the USPTO about it. Nest is saying that Honeywell should have at least known about its own prior patents, and that not disclosing them violated the duty of disclosure. This is grounds for the patent being found invalid.

      --
      "Uh... yeah, Brain, but where are we going to find rubber pants our size?" --Pinky
    3. Re:How did they hide prior patents? by the+eric+conspiracy · · Score: 2

      Most of these claims by Nest are poppycock. For example in US 7,634,504 is cited 5,065,813 which NEST claims was not shown to the PTO by Honeywell.

      Another example is 7,634,504,

      1. A method comprising the steps of: operating a programmable controller to cause an HVAC system to change an environmental condition of an inside space from a first initial set point to a second desired set point, the HVAC system achieving the change in the environmental condition to the second desired set point in an amount of time; and providing a message during the amount of time indicating when the desired second set point is anticipated to be achieved in the inside space.

      is preceded by

      1. A method for preheating an oven having a control system to operate the oven, input means for setting cooking parameters, and means for displaying a time remaining until a preheat cycle is complete, the method comprising the steps of:

      selecting a preheat temperature using the input means for setting cooking parameters;

      providing a preheat time by using the control system of the oven;

      determining if the oven cavity is pre-conditioned, wherein the oven cavity is pre-conditioned when a temperature in the oven is greater than a predetermined temperature and the predetermined temperature is greater than a room temperature and less than the preheat temperature;

      executing a preheat cycle when the oven cavity is not pre-conditioned;

      displaying the preheat time in a decrementing fashion using the display means of the oven;

      ending the preheat cycle when the decrementing preheat time equals zero; and accessing a look-up table to provide a preheat time.

      Clearly his patent attorneys didn't get the meaning of the word comprising across in their discussion, or the guy just wants to make a grandstand show here.

    4. Re:How did they hide prior patents? by the+eric+conspiracy · · Score: 4, Informative

      That's absolutely wrong. Patent examiners generally have a set of patents and some literature in the field they review that they feel covers the key points in the art that they refer to in examining patents. They will also add to that the patents in the field held by the filing company because those patents are important in establishing the expertise of the inventor in field.

      Now what is true is that the examiner won't have a complete view of the literature, but these days there is so much crap published that it is impossible for any individual to possess that knowledge. That's one of the reasons trials are so expensive. Generally that's when the most complete prior art reviews are done.

    5. Re:How did they hide prior patents? by the+eric+conspiracy · · Score: 3, Interesting

      Honeywell can easily take the position that the patents in question are not prior art (different subject matter) and thus don't need to be disclosed.

      If you look at the claims it is not at all convincing that they are prior art. In some cases some the of patents Nest is claiming were hidden from the USPTO are actually cited in the patents that Honeywell is claiming are infringed on (OOPS).

  8. Backfire by JamesA · · Score: 5, Interesting

    I've been thinking about replacing my home Honeywell thermostats (2) with Nests so that I can link, control, and monitor them more effectively. The news of this lawsuit has pretty much sold the deal.

    I don't think Honeywell thought about the Streisand effect.

    1. Re:Backfire by JamesA · · Score: 3, Insightful

      Niche locations like Slashdot consist of the type of early adopters Nest needs to build momentum in the marketplace.

  9. Re:byoo, hyoo by Andrio · · Score: 2

    A patent troll will use IP laws to make money. Honeywell is using IP law to kill a startup that's brought new life into an industry that hasn't budged since its inception, and thus prevent progress in that industry.

    --
    The Internet King? I wonder if he could provide faster nudity.
  10. Not cool if you are in Europe by martijnd · · Score: 5, Informative

    Since I am looking for a new thermostat this sounded like a cool thing. But this review by a fellow European warned me off trying this :

    http://www.bjornsblog.nl/post/20583667249/using-the-nest-smart-thermostat-in-europe-not

    1. Re:Not cool if you are in Europe by Anonymous Coward · · Score: 2, Insightful

      lol @ this guy

      He bought a product intended use and distribution solely in the US and then bitched that it didn't work in Europe. My favourite part:

      Not even when I emailed support with my .nl mail address with a question about displaying degrees Celsius, as is common outside the US. Since support found out I live outside the US they stopped answering my mail.

      He A) assumed they would research the domain in his email address and B) became offended when they notified them that they could not support him, but he insisted, so they ignored him.

      Nice.

  11. LAW IS MADE BY THE POWERFUL by Jeremiah+Cornelius · · Score: 4, Insightful

    To maintain their position and dominance.

    This includes everything from managing the progress of technologies, to profits from the trade in drugs and armaments.

    Law is your enemy. It was made without your representation, and adopted by managing your consent under a false pretense. Always treat it with suspicion.

    --
    "Flyin' in just a sweet place,
    Never been known to fail..."
  12. Re:byoo, hyoo by Tharsman · · Score: 3, Informative

    One of the claims in the case is that Honeywell patented things that were so obvious that they were simultaneously re-invented within Honeywell itself, by entirely separate and independent teams. These re-inventions that nearly prove the "invention" is too obvious to be patented where hidden and lied to during the patent process to make sure they would be granted.

    At least that's Nest's claim. I do am curious how they got their hands on such internal Honeywell information, but if true this is indeed worse than patent trolling. For lack of a better legal term, I’d say this is fraud against the patent office.

  13. Tangent about Nest by Colonel+Korn · · Score: 3, Interesting

    Some friends installed a Nest recently and had issues. They spent an evening repeating the installation steps trying to understand what they did wrong and another evening on the phone with support, being told to repeat those steps again. Eventually they were told that their furnace didn't output enough power for the Nest thermostat and that they'd have to return the unit (to Amazon, I think) for a refund and pick some other thermostat brand.

    They called up my dad the EE, who has no real thermostat or HVAC expertise but did install a new thermostat himself 20 years back. They described the error shown by the thermostat and their conversation with Nest support and he pointed out that "enough power" isn't a really relevant concept. He went over and tested the voltages on the well documented furnace connections and then on the relatively poorly documented Nest thermostat and found that the fault was with Nest. He called Nest support again and was told for half an hour that he was mistaken, then asked for a manager and convinced him that the problem was with their product, not the furnace. Once a warranty replacement arrived the problem was immediately solved.

    It's just an anecdote, but it was impressive how much Nest support resisted and that the first unit arrived with a hardware problem. It made me wary of the company. Furthermore, the "learning" capabilities have been an utter failure for said friends. I think the current Nest thermostat is only meant to work for much more predictable people.

    --
    "I zero-index my hamsters" - Willtor (147206)
  14. Honeywell has a repeat history of this. by Zoson · · Score: 2

    Honeywell is notorious for running competitors out of business, or buying up competitors and then simply discontinuing all their products. Specifically to control the market.

    A good example of this is the window fan market, which Honeywell has almost a complete monopoly.

    Several years ago there was a company called Lakewood Engineering that made, by far, the most effective and silent 'economic' household window fan. Honeywell bought them, and discontinued the model irregardless of the fact that their entire fan line was significantly inferior.

  15. Re:byoo, hyoo by Jeng · · Score: 3, Insightful

    I would imagine they looked at all of Honeywell's patents and the patent applications.

    It is publicly available information, no need for internal documents.

    There is no claim that Honeywell didn't realize they were re-patenting their own inventions, per the link it is thought it was done specifically to fuck over competition.

    --
    Don't know something? Look it up. Still don't know? Then ask.
  16. Magic-Stat by jtara · · Score: 4, Interesting

    This one is also covered by a previous patent that Honeywell owns. It's the patent for the Magic-Stat. It was developed by an inventor in Ann Arbor, Michigan back in the 70's or 80's. Honeywell bought that patent years ago. I knew someone who knew the inventor, and had one myself. That was it's big claim to fame - the thermostat "learns" your space's thermal inertia so as to achieve the desired temperature at the desired time. It also had the same schedule learning concept i.e. just jump up and adjust the thermostat when you feel uncomfortable, and the thermostat will eventually figure it out.

    When I saw the Nest thermostat I yawned, since I had these features 20 years ago, albiet without Internet connectivity.

  17. Honeywell extremely anticompetetive by Anonymous Coward · · Score: 4, Informative

    I'm in the aerospace industry where Honeywell is a major player, mainly in avionics. The last several years they have stopped to issue new repair/overhaul manuals for their units, prohibiting 3rd party shops performing maintenance on units. Honeywell obviously charges about an extra zero tacked to the end vs. anybody else to perform the same work. Just last week we recieved a copy of a 'repair manual' we requested that spent 50 pages talking about fault checking (we know the unit doesnt work....) and then a few pages with nice illustrations of how to package and ship the unit to Honeywell for repair.

    A few years ago we were selling overhauled 'items' to the government for drones. These items were originally made by honeywell, when they found out they pulled the repair manuals and gave us a call, explaining their size vs our size in the industry and what they could do to us if they so choose.

    Horrible company.

  18. Re:They copied Honeywell's iconic shape by Osgeld · · Score: 2

    oddly enough I dont remember our round thermostat with a backlight, lcd or colors, it was that pukey fake bronze, with the majority of it on cheap plastic made up to look like crystal, that controlled a dial. it also has switches sticking out the top and bottom.

    making something EXACTLY is not the same as similar, in your argument every rectangular music player should be sued out of existence by apple, and anyone else making a muscle car should be nuked by ford, but sorry, it doesnt work that way, honeywell does not own round.

  19. the first patent by Anonymous Coward · · Score: 2, Informative

    Not quite the original idea.. that whole "keep exclusive so we have an incentive" came along later.

    Brunelleschi (of Duomo Dome fame) got what was generally considered the first patent in 1421. And it was because it was for a way to move very large blocks of stone on the river, something that could not possibly be hidden as a trade secret. Therefore, he got the local duke (or whatever) to issue a document that said, Ol' Filippo came up with this cool idea, you're all going to see it, but you can't use it.