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Apple, Amazon, Microsoft & More Settle Lawsuits With Boston University

curtwoodward writes "Boston University hadn't been very aggressive with intellectual property lawsuits in the past. But that changed in 2012, when the school began suing the biggest names in consumer tech, alleging infringement of a patent on blue LEDs — a patent that, no coincidence, is set to expire at the end of 2014. As of today, about 25 big tech names have now settled the lawsuits, using 'defensive' patent firm RPX. A dozen or so more defendants are probably headed that way. And BU is no longer a quiet patent holder."

31 of 129 comments (clear)

  1. FB... you're next by gwstuff · · Score: 5, Funny

    For messing with us in the opening scene of The Social Network.

  2. more is coming by wbr1 · · Score: 4, Insightful
    Our college system trolls students with unneeded but course required new book editions. It trolls students with massive debt. It trolls science with god knows how many crap papers just became there is an constant push to publish, publish, publish. Why shouldn't they troll patents too?

    The murican postsecondary education system, the troll under the bridge to your future.

    --
    Silence is a state of mime.
    1. Re:more is coming by Anonymous Coward · · Score: 2, Interesting

      What did you think would happen if you hit the American post-secondary education system with massive, across the board budget cuts?

      American colleges used to put out their research for (effectively) free to the public and corporations benefited HUGELY. Now its time to pay the piper and hes looking to collect interest.

    2. Re:more is coming by icebike · · Score: 2

      Depending on the state, within the past 3 years?

      I'm not sure how this is an abuse. Boston University did the research, patented it and finally got around to exercising their patent rights. Don't wanna get sued? Pay the patent holder.

      Well lets track it back to who funded the research shall we?

      Its not like universities wake up one day and say, oh, lets spend a few years and several hundred million and fart around with some of these cute LEDs.

      I bet you there's not only state money in it, and federal money in it, but also maybe some big-corp bucks too. But I'm betting 95% public funds of one sort or another.

      --
      Sig Battery depleted. Reverting to safe mode.
    3. Re:more is coming by ackthpt · · Score: 2

      What did you think would happen if you hit the American post-secondary education system with massive, across the board budget cuts?

      American colleges used to put out their research for (effectively) free to the public and corporations benefited HUGELY. Now its time to pay the piper and hes looking to collect interest.

      Boston U is Private.

      --

      A feeling of having made the same mistake before: Deja Foobar
    4. Re:more is coming by Uberbah · · Score: 2

      Boston U is Private.

      Distinction without much of a difference. Private schools get federal grant money, and it's not uncommon for public universities to cost more than private ones. Not because of the invisible hand, but because of the 30 year bipartisan war on the public sector.

    5. Re:more is coming by KingOfBLASH · · Score: 2

      If researchers discover a cool new technology, I see no issues with them licensing it out, and using the profits to do more research. In this case, you have a clear benefit to society, and it's not patent trolling.

      Not that the education system doesn't have issues, but I don't see the issue in this case.

    6. Re:more is coming by Anonymous Coward · · Score: 2, Informative

      Well lets track it back to who funded the research shall we?

      Yes, let's do that indeed.

      Its not like universities wake up one day and say, oh, lets spend a few years and several hundred million and fart around with some of these cute LEDs.

      That's actually pretty much exactly what happens. That's why university research is so valuable, because it doesn't have to prove itself successful before it's even done.

      I bet you there's not only state money in it, and federal money in it, but also maybe some big-corp bucks too. But I'm betting 95% public funds of one sort or another.

      Then you should pay up, because you lost that bet. There's no outstanding federal interest in this invention, and your WAG of 95% is way off. Private schools like BU aren't required to disclose their funding in great detail, but university research is typically around 80/20 sponsored/general. In 2009 they claimed to have a $356 million sponsored research program, and the federal expenditure report indicates they received $255M in federal funding. Federal funding was 71% of their sponsored research, or somewhere in the neighborhood of 50-55% of their total research program. Private schools don't typically get much state money.

      But if you look at a well-documented system, albeit much larger and with a more active licensing portfolio, the University of California in 2011 generated $182 million in licensing revenue. That funds quite a bit of research. But that's just 3.3% of UC's 2011 research expenditures of $5.4 billion, 61% of which was sponsored by public sources (50% federal, 11% California). 25% was industry-sponsored research, and the balance from student fees and gifts/endowments.

      So the question is, how many patentable inventions get licensed instead of freely distributed? The answer is about 1 in 5. 80% made available for free as a service to the public and the research community is a pretty good return for only ponying up 61% of the costs, so you really don't have anything to complain about.

      That 1 in 5 number is based on their report: in 2011, UC licensed around 300 patents, but filed over 1000, two-thirds of its 1500 disclosed patentable inventions. This makes it a typical year--UC's overall portfolio reported approximately 10,000 active inventions with just 2,100 under exclusive license. Further, any invention that involved any federal money has to be reviewed by the federal sponsor before it can be patented, and a patent is only filed if there is a private sector licensee willing to cover the costs of the patent application and the commercialization work. That's where most of them die, never making any money because they end up not being commercially viable anyway. Only a fraction of that 20% actually ends up being an invention of interest to society.

      If UC were to stop licensing patents altogether, it would need another $190M per year in public funding to maintain the same research program. Nationwide, university licensing has offset public budget cuts to the tune of $2 billion per year. If you're ready to write a check, I'm sure virtually every university would happily give up having to chase money through licensing, since the overhead on a patent filing and license is a lot higher than federal research funding and the amount of money coming in wouldn't depend on successful commercialization.

    7. Re:more is coming by Hal_Porter · · Score: 2

      Isn't it better if the Evil Big Corporations who use the results of research pay for the research via patent licenses than the tax payer pays?

      Suppose I'm a government bureaucrat. I need to decide who gets grants and who does not. Now with most academic fields it's actually non trivial to decide if a particular piece of research is actually worth anything. So I end up doing things like handing out cash to my alma mater, my favourite area, or who pays me off. This system doesn't really work very well because it depends on the government bureaucrat being some sort of philosopher king. Or you can hand out equal amounts of money to all the universities. In which case the good ones have no incentive to stay good - they get the same money as the bad ones regardless.

      Now under the patent system academics invent things - and this particular invention is pretty damn non obvious. They patent them. The ones that are doing something useful get cash in terms of patent licenses. The ones that don't, don't. There's no discretion on the part of bureaucrats. In fact inside the university there's no discretion needed to decide which research is useful and which is not - the revenues from patents tell all.

      It reminds me of a wonderful story I read about a very early laptop design. It run off NiCd rechargeable AA cells and trickle charged them when plugged in. In the UK where it was invented it sold with a warning label saying "Rechargeable batteries only, laptop will overheat if non rechargeable batteries are used". Trying to trickle charge a non rechargeable battery will make it overheat and potentially burn the user. When they decided to market in the US they were advised that if you burn your users they will sue you, regardless of warning label. So they added a thermistor and turned off the trickle charge if the batteries overheated. Now one way of looking at this is that the scumbag personal injury lawyers are actually carrying information. Even the threat of scumbag personal injury lawyers carries information. And so it is with the patent system. Most people will settle out of court if they're infringing a patent. Thus people can use whatever technology they want. The legal system takes care of making sure the inventor gets paid - either he keeps the patent himself and gets royalties, or he signs it over to his employer and they get them. Or, potentially he or his employer could sell the patents to a patent troll company - i.e. you can choose cash up front or a stream of royalties.

      People complain about lawyers, patents and patent trolls but all of them are playing a useful role in a system which automagically channels money to research which is useful without needing any sort of central authority making the decisions.

      --
      echo -e 'global _start\n _start:\n mov eax, 2\n int 80h\n jmp _start' > a.asm; nasm a.asm -f elf; ld a.o -o a;
  3. Re:Patent on blue LEDs? by bunratty · · Score: 5, Informative

    The patent isn't on the mere idea of blue LEDs, but on how precisely to make a particlar blue LED, which was not obvious. Mere ideas cannot be patented, contrary to what many Slashdot posters would like you to believe.

    --
    What a fool believes, he sees, no wise man has the power to reason away.
  4. I have zero problems with BU's patents by Yi+Ding · · Score: 5, Insightful

    This is the way the patent system is supposed to work. The university creates a useful product based on a real technology advance, patents the idea, and then when it becomes ubiquitous the university is able to calculate the worth of the technology and gets large firms to license appropriately. This is completely different from software patents where it's mostly "I did it first, haha."

    1. Re:I have zero problems with BU's patents by penix1 · · Score: 4, Insightful

      Fine then... If this is the way it is supposed to work then there is no further reason to subsidize the university with tax dollars since they have the ability to develop these valuable patent portfolios. The knife should work both ways. Either they fund research using their patent portfolio or tax dollars but not both.

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    2. Re:I have zero problems with BU's patents by sjames · · Score: 5, Interesting

      In this case, I have no problem with the patent being issued. The problem I have is with who gets sued.

      I'll bet Apple, Amazon, and Microsoft did NOT order Blue LEDs using BU's patent. They ordered blue LEDs and had no idea what tech was used to manufacture them. The manufacturer that actually used BU's tech to make the LEDs is the legitimate target of a suit.

    3. Re:I have zero problems with BU's patents by purpledinoz · · Score: 2

      Nor should they care how it's made. Can you imagine, for every single resister, capacitor, LED, chip, you have to check how it's made and ensure they have the proper licenses or patents? That would be ridiculous.

    4. Re:I have zero problems with BU's patents by tlhIngan · · Score: 2

      This is the way the patent system is supposed to work. The university creates a useful product based on a real technology advance, patents the idea, and then when it becomes ubiquitous the university is able to calculate the worth of the technology and gets large firms to license appropriately. This is completely different from software patents where it's mostly "I did it first, haha."

      Except well, Apple, Microsoft, etc., aren't using the patented technology in question. They bought parts that did, under the understanding that all necessary licenses have been paid for.

      In other words, what happened is BU is pursuing people who bought the product with the patented invention rather than going after the manufacturer that used it.

      So if you're fine with that, if you have any blue or white LEDs in any equipment you have, BU can go after YOU to pay up the licensing fees for the patents. (That you thought were paid when you bought the item, that the manufacturer of the equipment thought they paid when they bought the part in question, ...).

      This would be like Microsoft going after Linux uses for the FAT patents, after Android phone users who own Android products from companies that didn't pay the licensing fees, etc. Or Apple going after Samsung phone users because Samsung didn't pay up.

      It's the same argument Apple makes w.r.t. the Nokia patents - Apple bought chips from Infineon expecting all license fees to be incorporated in the purchase price of those chips because the patented bits are all inside the chips. So it would be if Apple failed to pay up, Nokia could go after iPhone users for the missing money.

      Imagine the chaos caused if patent holders, upon failing to obtain licensing agreements, went after customers of the product in question. Where buying that PC may subject you to lawsuits and demands to pay up. Or installing that piece of software, open-source or not.

  5. Re:Patent on blue LEDs? by Yi+Ding · · Score: 5, Informative

    More info: http://en.wikipedia.org/wiki/Light-emitting_diode#The_blue_and_white_LED

    The guy who made the first blue LED won a 1.3 million dollar prize. I'm assuming the reason BU is able to collect royalties is that their method is the one that's being used commercially. Look at the description in wikipedia: Does p-doping Indium Galium Nitride seem like a trivial process?

  6. Re:Patent on blue LEDs? by Adriax · · Score: 4, Informative

    Oh I know, crazy huh? How could they let this patent get by with the clearly obvious prior art of all those blue LEDs that helped light up gadgets in the 80s.

    Not like every consumer product featuring LEDs prior to 1994 or so was using red, green, yellow, and amber because depositing the gallium mix required for the blue spectrum bandgap could only be done on a ruby substrate at the time due to the normal process destroying a silicon substrate, thereby making blue LEDs insanely expensive.

    --
    I don't suffer from insanity, I enjoy every minute of it!
  7. Re:Patent on blue LEDs? by tomhath · · Score: 4, Funny

    Mere ideas cannot be patented, contrary to what many Slashdot posters would like you to believe

    You mean someone couldn't patent an idea like buying something by clicking on a button? Oh wait...

  8. Universities and the patent game by Anonymous Coward · · Score: 4, Interesting

    I guess I'm a bit old fashioned, but I always had concieved of universities as being places where the pursuit of learning and new knowledge were ends unto themselves. Patents and "monitizing" of the university system seem to me to corrupt the purity of knowledge and education for their own sakes, replacing those abstract goals with concerns like "how much money will that research be worth" and "will teaching those classes result in higher wages for our graduates (and hence more and larger donations)". Research with intent to commercialize is more properly conducted by commercial research labs. Instead we seem to have decided to shut down the big ones and offload that work to the university system, with a complete lack of concern or interest in the cultural consequences for higher education.

    I think we need to add another four years on to our high school education programs, or make some other arrangements so that universities can return to their role of being pure research and learning institutions whose deliberate and specific intent is to foster research and learning without concern for whether it can be monitized. We should be adjusting our "standard" or "high school degree" education standards so that the majority of employment opportunities available in the work force can be successfully handled by those graduates. "Higher" education should not, by definition, be a general requirement for virtually all worthwhile employment in this country.

    Undoubtely this view is somewhat impractical, and it is a fair point that universities cost money to run and maintain, but the support of the altruistic pursuit of knowledge is one goal for which I will cheerfully, even eagerly, pay more taxes. I have a deeply held conviction that some things are more important than money, and one of the measures of merit by which civilizations shoudl be judged is how they support those pursuits - if we can't look at anything as fundamental as learning about the world around us without wondering how we can "monitize" what we learn, we are diminished as a civilization.

    Boston University is most likely on fairly solid grounds with this patent (unlike, say, most software patents) and within their legal rights to act in this fashion, but I view it as a sad commentary on our society that things have reached the point where a university either needs to or wants to take advantage of a mechanism like patents, which fundamentally restrict the application of knowledge in the first place.

  9. Re:I think I'm missing something... by russotto · · Score: 2

    It appears this might be all about a Samsung lawsuit they've been involved in for some time. The other companies don't make the allegedly infringing devices, but they do import them, so BU decided to put some pressure on Samsung by suing the customers.

  10. Re:Patent on blue LEDs? by ozmanjusri · · Score: 2

    Big pharma. They're the ones with the most money and lawyers.

    --
    "I've got more toys than Teruhisa Kitahara."
  11. How can they sue companies who don't make LEDs? by saccade.com · · Score: 3, Insightful

    I'm puzzled. The patent (at least the one cited in the article) details a very specific method for creating the crystals in LEDs. I can see BU going after various LED manufacturers (Cree, Philips, Panasonic, etc.). But Apple? Microsoft? Those companies re-sell those components, they don't manufacture them.

    1. Re:How can they sue companies who don't make LEDs? by Anonymous Coward · · Score: 3, Insightful

      I'm puzzled. The patent (at least the one cited in the article) details a very specific method for creating the crystals in LEDs. I can see BU going after various LED manufacturers (Cree, Philips, Panasonic, etc.). But Apple? Microsoft? Those companies re-sell those components, they don't manufacture them.

      The LEDs were most likely manufactured in China by a company that did not license the technology. They were then incorporated into other products in China. Those products were then imported to the US.

      Under that particular set of circumstances, the company that imports the product is responsible for the patent infringement.

    2. Re:How can they sue companies who don't make LEDs? by Stewie241 · · Score: 2

      IIUC, yes.

  12. Re:Patent on blue LEDs? by GumphMaster · · Score: 4, Informative

    In the United States you do not have to be the manufacturer to be sued for patent violation. Users are also at risk, especially if they have deeper pockets. Daft, but true.

    35 U.S.C. 271 Infringement of patent. (a) Except as otherwise provided in this title, whoever without authority makes, uses, offers to sell, or sells any patented invention, within the United States, or imports into the United States any patented invention during the term of the patent therefor, infringes the patent.

    (Emphasis mine) I am sure there will be a long discussion about whether someone using a device made with the patented process is themselves "using" the patented process.

    --
    Patent litigation: A doctrine of Mutually Assured Destruction... in which everyone seems willing to push the button
  13. Publicly funded research should be public domain by jessetaylor84 · · Score: 3

    Completely ridiculous to see taxpayer-funded research being patented. If public funds are being spent on research (as they are at BU, even though it's a "private" school), then the results of this research should be released into the public domain.

  14. Re:Patent on blue LEDs? by viperidaenz · · Score: 2

    There's a difference between design patents and utility patents.

  15. Re:Patent on blue LEDs? by dacut · · Score: 5, Insightful

    Does p-doping Indium Gallium Nitride seem like a trivial process?

    It's trivial with the right equipment and materials. Figuring out that you need to p-dope IGN to make an LED, on the other hand...

    Reminds me of the story about the fancy car which, no matter what the shop mechanics tried, wouldn't start. So they call in an old mechanic buddy who had retired a few years ago to come take a look. He studies the engine carefully, making a note of the various fluid levels and temperatures as well as the sounds made by the engine. After going at it for a few minutes, he takes a bit of chalk, marks a spot on the engine, and then hits it with his hammer. With that, the engine roared to life.

    He then handed the customer a bill for $100. Aghast, the customer replies, "I'm not paying you $100 for hitting the engine with a hammer!"

    The old mechanic replies, "Hitting the engine was free. Knowing where to hit it is $100."

  16. Bullsh*t by Anonymous Coward · · Score: 5, Informative

    1. I have a PhD in GaN LEDs, and work at an LED company
    2. I've worked with "the guy" who won that $1.3M prize for inventing the GaN LED
    3. I've worked on large, multi institutions government funded GaN-based projects that Moustakas was also involved on, I am very framiliar with the last 2.5 decades of his research in particular
    4. I am very familiar with both the devices and the IP of the field in genearl since I have a few of these kinds of patents

    This lawsuit makes no sense. First of all many if not most of the companies don't manufacture any GaN based LEDs. Second of all, that patent covers a technique that no one uses in commercial GaN LEDs. Literally no one. That patent very specifically covers GaN crystal growth by MBE (molecular beam epitaxy). Every single GaN LED company (Nichia, Cree, Soraa, etc.) uses MOCVD (Metal organic chemical vapor deposition) techniques. The claims are of course quite cryptic and difficult to determine their entire implication, but from what I can one of the mains things he is claiming to patent is any GaN structure grown on a foreign substrate with a low temperature poly-crystalline layer. Nearly all commercial LEDs are grown on sapphire of SiC with the use of some kind of low temperature poly-crystalline buffer layer. However there is lots of prior art on this (notice the dates!)

    http://jjap.jsap.jp/link?JJAP/30/L1705/

    http://scitation.aip.org/content/aip/journal/apl/48/5/10.1063/1.96549

    He also tries to discuss the potential dopant atoms, none of the ones that are mentioned are currently used. Of course I'm not sure exactly which claim their lawsuits are hinging on, but all of the meaningful claims in there are covered by prior art (journal publications) and/or better, old, stronger patents.

    tl;dr this patent is bullshit, it covers things that have prior art, or aren't useful

  17. Re:Patent on blue LEDs? by ChrisMaple · · Score: 3, Informative

    The guy who made the first blue LED won a 1.3 million dollar prize.

    Long before modern efficient blue LEDs were invented there were blue LEDs made by various firms, including silicon carbide LEDs commercialized by Cree in 1989 and tinkered with by others, and even a silicon-based blue LED from Sony. They were inefficient and many of them were expensive, so they weren't popular. The first observation of blue LED action was made in 1923, before anyone understood what was happening. In the late 1960s some blue silicon carbide LEDs were deliberately developed. In the early 1970s, RCA made (but never commercialized) blue and violet GaN LEDs. http://www.sslighting.net/news/features/maruska_blue_led_history.pdf

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  18. Re:Patent on blue LEDs? by Bacon+Bits · · Score: 2

    This actually makes some sense because it would be very easy to abuse.

    A large corporation could spin off an independent (ha!) subsidiary, which has full ownership (HA!) of the production facilities. Worse, you could fracture your production facilities into numerous independent subsidiaries, thus forcing patent holders to file a dozen lawsuits, and fighting the "oh, we just do X, you have to prove that it infringes" in every one, or just shutting down a tenth of the whole production. You'd be pricing patent holders out of lawsuits, and in many cases they already are under our current system.

    --
    The road to tyranny has always been paved with claims of necessity.