How Patent Trolls Stalled a New Transit App
SFGate has the story of Aaron Bannert, creator of a San Francisco transit app called Smart Ride. The app was developed to provide arrival times for the city's bus system. Smart Ride was supported by ads, and Bannert had not yet turned a profit on it when he received a legal threat from a company claiming patent infringement. "It was from a company with ties to Martin Kelly Jones, who holds a series of patents claiming ownership of technologies for tracking vehicles and providing users with electronic updates. A handful of affiliated companies, including ArrivalStar and Melvino Technologies, have threatened or sued hundreds of organizations in recent years, from small entrepreneurs like Bannert to large corporations like American Airlines. ... ArrivalStar filed more than half the patent lawsuits in South Florida federal courts last year, according to the South Florida Business Journal. ... ArrivalStar will demand as much as $200,000 for a license, according to reports in other publications." The cost to the patent troll for filing a lawsuit is around $500, but Bannert was forced to spend over $10,000 on a legal defense and delay the launch of a new version for months. He's unable to provide details on the outcome of the case. "As high as the legal expenses were for Bannert, he thinks the bigger toll from patent trolling is the indirect cost to society, the products and innovation that don't make it off the drawing board."
Seriously, if were considering setting up a new business model and didn't want to be dragged down by the hordes of patent-trolling parasites out there, NZ is starting to look good. Plus at 5 foot 10 inches I'm bound to be bigger than most of the Hobbits.
Can a patent troll go after you if you release such application, without any kind of profit mechanism whatsoever?
Lets say, I create such app, with a dev account made just to publish that app, without any real detail about myself, what can they do then?
In the patent infringement case used as an example, the article wasn't explicit about whether the patents were on software. Probably they were software patents, since the example was about a software app.
The patent troll problem can easily extend beyond software or business methods. Doesn't have to be software to have prior art or to be too obvious. The reform of abolishing software patents wouldn't fix all the problems. We would still have a patent system that grants too many bad patents because of the conflicts of interest. The patent office generates more revenue, and lawyers get more work. The article mentioned plans for 5 executive actions to curb the problem, but didn't say what they are.
Intellectual Property is a monopolistic, selfish, and defective concept. It is "tyranny over the mind of man"
If someone sues for patent infringement, can you just say "ok I withdrew the app" and that's it?
(and if minimal profit has occured, say, give the licence dues and move on)
Or once the lawsuit is filed you have to pay the exorbitant amount or fight it etc?
That crazy patent system is going to break the US's advantage in the future.
This is the millionth time we see a post on Slashdot about people falling victim to a patent troll. If this is not yet done somewhere, someone should really make a wiki to meticulously document all these small cases, so that the next time you talk to a politician, you can show them the real damage of the current patent system.
karma police: arrest this man, he talks in maths; he buzzes like a fridge, he's like a detuned radio. [radiohead]
with fire.
Mplayer, libavcodec and x264 are examples of successfull patent-violating software products that have laster for a long while, and not been killed off by patent lawsuits. So it is clearly possible. The key is probably to be distributed, open source and not predominantly based in the USA.
Besides the fact that it's useful to repackage this function as an app (you can check the arrival time from home / the bar / your office and wait for the bus there instead of at the stop), the guy hardly deserves to be sued into the ground for not being innovative enough, in what looks like to be a case without merit. And that's the crux of the issue: you can sue anyone for patent infringement, and even if your case has mo merit whatsoever, you can still extort the defendant over legal fees. Pay the $500, pcik your target, any target, and offer to settle for half of what the defendant would pay in legal fees. Profit!
What if the guy actually comes up with a truly innovative app instead? You can be sure that the same patent trolls will be all over him as soon as he makes a buck.
If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
Sorry, not feeling a lot of sympathy here.
'Provide arrival times for the city's buses'. Yes, like the LED displays in bus shelters or the operator's website. Or even the SF Muni's own app! With countdown to arrival feature...
Where's the innovation other than he makes a profit using ads?
Seriously, not everything that is repackaged as an app exhibits entrepreneurial innovation.
You have to add "On the Internet" to it.
So everybody is complaining about bad software patents, but are there any good software patents which are actually doing something tricky/interesting worth patenting?
bash$
This is great news for the rest of the world.
Please go on with this idiot law suits, and within a few years nothing can be developed in the USA without coming under fire. It will be extremely expensive to make even the tiniest application. As a result development will come to a grinding halt..
Of course the rest of the world will go on without that nonsense, and the USA will become a 3th-world development country.
Come on USA developers! Don't stay in the USA. You will be out of work in the coming years. Leave that depressing lawsuit-sick country and go where the real action and innovation will be .... Outside the USA!
You are all welcome...
Do you think e=mc^2 should be patentable? It certainly was valuable. We wouldn't understand nuclear power without it.
There may not be any such thing as a good software patent. Software shouldn't be patentable.
Well, to build the nuclear bomb, you'll have to license "E=mc^2" for ONE HUNDRED BILLION DOLLARS!"
I can live with that.
prohibitive?
How do you legislate fairly on this? It's a question I've been pondering.
I can't see software patents or any other type being abolished due to the loss of perceived wealth that would cause within an economy.
Instead I think a solution has to be found in the handling of patent cases.
A fast track legal process which takes a "Tax" on all claims to fund itself.
Removing the lawyers and courts fees thus removing the fear factor.
Patent owners should be limited to a percentage of all profits made by the product the patent has a valid claim on.
If multiple patents apply then they must share this percentage among them.
So lets say I'm an Apple developer and Apple takes 30%, leaving me 70%.
How much is fair for (using Lodsys as an example) the use of in-app purchase technology?
That 70% isn't all profit. (marketing, further development, business & admin costs etc)
10%? 20%? 30%?
I'd feel a lot keener to -innovate- and create new stuff if I felt that it wasn't going to be ripped from my hands by legal thieves.
If I knew there was a ceiling on what I'd have to pay out when the trolls came knocking on my door I could get on with doing what I do.
What the patent trolls forget is that we all stand on the shoulders of others.
Their "intellectual property" couldn't exist without the publicly domain intellectual property that existed before it.
>The app was developed to provide arrival times for the city's bus system.
Zero innovation. Such apps have been around in the dumb phone era already. Ten years ago+.
Do you think it's finally starting to sink into the public's brains that corporate america is what drives their laws? If the companies don't want it, then it isn't put into law.
Welcome to your FREE country. Have a nice day.
I just wanted to reiterate this statement
The cost to the patent troll for filing a lawsuit is around $500, but Bannert was forced to spend over $10,000 on a legal defense
It cost my stalker nothing to convince the local government to issue me an unconstitutional citation for holding a St. Patrick's Day party without a permit, and it cost me over $6,000 to get the citation dismissed.
Is there an app that tracks where all these patent troll offices are located? I'd happily spend a night going around town throwing eggs at them.
Dear Mr. Jones:
I hear IBM is violating your patent left and right. They are tracking all their field service vehicles using a system just like the one in your patent. Go get 'em.
Best Regards,
Darl McBride
Smart Ride is actually a lot more than that. It takes advantage of the phone's capabilities to show nearby stops, maps, alerts, and other realtime info. I love those LED displays and use them all the time, but they aren't available at every stop. And we happen to support 45 or so transit agencies these days, all within one app.
We aren't trying to innovate in the vehicle tracking area. We are innovating around data aggregation (we have a huge and growing database of transit data, most of which is realtime) and around clever ways to present that data to our users. Smart Ride is one of those apps where it has to be on 24/7, be very fast, and very simple (so my mom can understand it). The whole point is to make transit easy for everyone.
But as another poster pointed out, the merits of my entrepreneurial pursuits (or lack thereof, your mind) shouldn't justify me being sued for patent infringement.
PS, that app you linked to is *not* an official SF MTA app. It is another 3rd party developer like me, who apparently is benefitting from the name confusion. As far as I know, SF MTA doesn't have an official app of their own.
If someone holds a patent, then he has incurred an expense and in a capitalistic society, he deserves to be compensated for his intellectual property. That is why it was patented. Just pay the original holder of the patent his due and get his consent and go on about your business. Why is that such a problem?
Seriously
It looks like the US is getting so hostile to business, perhaps its best to incorporate in a foreign country that either doesn't tolerate silly patent trolls in its legal system, takes years or decades to pursue a case.
If you sue, and you lose, then you pay reasonable defense fees for the defendent who won.
Patent trolls would then pay more to the denfendants than they would ever earn. This would stop much of the trolling.
Maybe it's the idea of living from what we create that is flawed...
Didn't EFF just recently won a court victory explicitly saying that about the Exhaustion Doctrine ? Might want to take a look on their website.