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Rackspace Goes On Rampage Against Patent Trolls

girlmad writes "Rackspace has come out fighting against one of the U.S.'s most notorious patent trolls, Parallel Iron. The cloud services firm said it's totally fed up with trolls of all kinds, which have caused a 500 percent rise in its legal bills. Rackspace was last week named among 12 firms accused of infringing Parallel Iron's Hadoop Distributed File System patents. Rackspace is now counter-suing the troll, as the firm said it has a deal in place with Parallel Iron after signing a previous patent settlement with them."

18 of 132 comments (clear)

  1. The only ones who win are the lawyers. by Anonymous Coward · · Score: 5, Insightful

    The laws must be changed.

    1. Re:The only ones who win are the lawyers. by crashumbc · · Score: 5, Insightful

      "The only ones who win are the lawyers."

      -The laws must be changed.

      Which is exactly why the laws won't be changed.

    2. Re:The only ones who win are the lawyers. by fustakrakich · · Score: 5, Interesting

      Fines and jail time won't work. Asset forfeiture on the other hand could put a dent in this business. Just apply the RICO statutes. After all, it is racketeering.

      --
      “He’s not deformed, he’s just drunk!”
    3. Re:The only ones who win are the lawyers. by NoNonAlphaCharsHere · · Score: 4, Insightful

      Which is exactly how the laws got written in the first place.

    4. Re:The only ones who win are the lawyers. by jhoegl · · Score: 4, Insightful

      That used to be the case, but you guys are forgetting this is the 21st century.
      Now lobbyists make the laws, and lobbyists are paid for by the winning side.

    5. Re:The only ones who win are the lawyers. by Dunbal · · Score: 4, Interesting

      The winning side becomes the losing side in a flash. I'll tell you right now which side I want to be on when the torches and pitchforks get going, and it's not the "winning" side. Wealth too is transitory. It's often gone within two generations, and usually less.

      --
      Seven puppies were harmed during the making of this post.
    6. Re:The only ones who win are the lawyers. by anagama · · Score: 5, Insightful

      Exactly how many non-geeks are actually knowledgeable about patent trolls? Two? Three?

      Talk to most random people about patents, and they think: "lotto" -- invent something cool and retire. Try to explain what is wrong with the system and their eyes glaze over. The notion that patent reform will come from the masses and that they will demand change is .... wishful thinking? ludicrous? Crazy? Pick any word that's the antonym of "possible."

      --
      What changed under Obama? Nothing Good
    7. Re:The only ones who win are the lawyers. by Runaway1956 · · Score: 4, Insightful

      "who wouldnt be first to line up and patent something if they actually came up with something cool?"

      I presume that you're familiar with the name "Linus Torvalds"? Copyleft authors are legion and myriad. It's not unusual to see a license that says something to the effect, "Hey, enjoy my cool stuff, for free! If you really like it, visit my homepage to leave compliments or to make a donation!"

      --
      "Windows is like the faint smell of piss in a subway: it's there, and there's nothing you can do about it." - Charlie Br
  2. Getting "tough"? by Frosty+Piss · · Score: 4, Funny

    Rackspace is now counter-suing the troll, as the firm said it has a deal in place with Parallel Iron after signing a previous patent settlement with them.

    So what they are REALLY saying is...

    Honey, we left the cash on the dresser, and now you want more?

    --
    If you want news from today, you have to come back tomorrow.
    1. Re:Getting "tough"? by Dachannien · · Score: 5, Informative

      Actually, this is just a really really horrible summary.

      What really happened: IP Nav had approached Rackspace, claiming that Rackspace was infringing some patents of an unnamed client of theirs. IP Nav told Rackspace that they would disclose neither the identity of their client nor the patents in question unless Rackspace signed an agreement not to sue without giving 30 days written notice that their side was terminating licensing negotiations. As it turns out, the agreement went both ways, with IP Nav agreeing to the same 30 day written notice provision. (Peculiarities of patent law are such that if a patentee approaches you about your potential infringement, you can sue them for a declaratory judgment of noninfringement in a federal district court of your choosing; IP Nav was trying to avoid this so they could choose the venue.)

      Rackspace agreed to those terms, and found out the patents in question as well as the identity of the patent holder: Parallel Iron.

      After some time had passed, licensing talks weren't really going anywhere, so IP Nav/Parallel Iron filed suit against Rackspace and others in federal district court in Delaware.... without providing 30 days written notice to Rackspace. So Rackspace - indicating that since IP Nav/Parallel Iron breached the contract not to sue, Rackspace was no longer bound by the agreement - filed suit in Texas (where Rackspace is HQed) for a declaratory judgment of noninfringement as well as damages for the breach of contract.

      Ars has more details, including a link to Rackspace's complaint.

    2. Re:Getting "tough"? by Anonymous Coward · · Score: 4, Informative

      Bad summary. According to a post on the Rackspace blog, "we negotiated a mutual forbearance agreement that required either party to give 30 days’ notice before bringing suit." It isn't that they had agreed to pay the troll, it's that Rackspace was doing their best to get the details about the alleged infringement without waiving their right to bring a countersuit. Source: http://www.rackspace.com/blog/why-rackspace-sued-the-most-notorious-patent-troll-in-america/.

  3. WTF is the link to? by pspahn · · Score: 5, Informative

    It might as well be spam in my inbox.

    Why not just link the damn blog post by Rackspace itself? link

    --
    Someone flopped a steamer in the gene pool.
    1. Re:WTF is the link to? by Myopic · · Score: 4, Funny

      You clicked the link? That's weird.

  4. Re:Would this work? by femtobyte · · Score: 4, Interesting

    The problem is, when you've established that you're a profitable to trolls, they're much more likely to gang up to backstab you. I suspect the following wouldn't be entirely atypical:

    Troll 1) We have patent! Give us meellion dollar, or we sue!
    You) O.K.; here's $1M, but you've got to protect us against the next troll.
    Troll 2) We have patent! Give us meelion dollars, or we sue!
    Troll 1) Our board of directors take meellion dollar bonus for hard work! Now we bankrupt! Our directors find new job with Troll 2!
    Troll 1+2) Give us two meellion dollar! Or double sue!
    You) ... aww, shit.

    Since the troll companies are generally just empty shell corporations for investor psychopaths, they have no reason to stick around to fight each other (knowing that, by the time they ever won a case, the payout cash would have long ago vanished into some other Cayman Islands fund). A company with a solid revenue stream from actually making and selling products, that's proven itself a juicy target for Troll 1, is just asking to be bilked twice (by the same leeches under a different corporate name).

  5. Still not good enough by NoNonAlphaCharsHere · · Score: 4, Funny

    I'm not going to be happy until we get a Slashdot headline that reads something like: "Rabid Ninja Mosad Assassin Zombie Horde Goes On Rampage Against Patent Trolls".

  6. Are the courts the enemy of the people? by CuteSteveJobs · · Score: 5, Insightful

    The problem is with overinflated lawyers fees, court procedures which encourage paperwork which makes even more fees for lawyers and and court fees that the courts are so expensive you are looking at handing lawyers and courts two million up just to defend yourself from a patent troll. If cases were streamlined and it only cost $10K to defend a patent troll it would be far fairer, but lawyers and judges would be out of work. Have you ever heard of judges being laid off for lack of work? Judges whose communities depend on patent trolls for a steady stream of cases have a conflict of interest. If they came down hard on patent trolls and threw out meritless cases there would be boarded up lawyers offices all over town. Instead the judges say well geez better have a trial anyway just to be sure. It might get an answer but it wastes a fuckload of cash to get there. If the USPTO issued firm rulings we wouldn't need the courts. Instead the USPTO scratch their balls and say well I will just approve this shit because I can't understand it anyway and let the courts sort it out. The problem is as much the court system as it is the USPTO. They should streamline these but do you really think lawyers and judges will be putting themselves out of work?

    Patents are written in bullshit confusing language so courts argue what they mean. A software engineering looking at one of these wouldn't even recognize their own system in one of these documents. Lawyers write them to be broad and confusing so they can make money arguing it. The USPTO shouldn't be approving patents that are unreadable. And if a IT graduate can't read one of these and work out what they mean, they shouldn't be granted.

    http://en.wikipedia.org/wiki/Patent_troll
    http://news.cnet.com/8301-32973_3-57409792-296/how-much-is-that-patent-lawsuit-going-to-cost-you/
    http://www.patentlyo.com/patent/2013/03/guest-editorial-throwing-trolls-off-the-bridge.html

  7. Concerted lawsuits against linux? Who's behind it? by girlinatrainingbra · · Score: 5, Interesting

    Another war against Linux? Do I detect a whiff of Microsoft's scent in the air surrounding this?
    :>(
    Thanks for the link, and that page has even more informative links. It looks like Rackspace won a dismissal against Uniloc for a patent troll argument asserting patents on simple mathematical operations: rounding a floating point number up or down before performing a mathematical operation on it, rather than performing the math operation and then performing the rounding afterwards. The judge's dismissed Uniloc's suit stating that "simple mathematical operations are not patentable".
    .
    That patent was PTO#5,892,697 and only the first claim was asserted for that lawsuit.
    .
    Interestingly, the way the lawsuit was filed shows that Rackspace was being sued for deploying Linux servers, and the servers were claimed to be infringing # 5,892,697 because they ran Linux. Doesn't this look like another wave of concerted lawsuits and patent trolling against Linux? I wonder who the concert-master is in this case, waving the baton and funding this crazy patent assertion of rounding numbers before an op being performed rather than after the op is performed? Is there a whiff of Microsoft in the air?

  8. Game theory by 91degrees · · Score: 4, Insightful

    It surprises me that this hasn't become a policy before. Patent trolls exist because they know that the company will roll over if it's cheaper to comply than to fight.

    Problem is, that only works for a single stage game. What we have is a repeated stage game. The optimal strategy for the troll victim is to fight, and to do as much damage to the troll as possible. This increases the cost of operation for the troll, and makes the victim a lot less lucrative a target for future lawsuits.