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De-escalating the Android Patent War
In 2011, a consortium formed from Microsoft, Apple, Sony, BlackBerry, and others spent $4.5 billion acquiring Nortel's patent portfolio, which contained a great deal of ammunition that could be used against Android. That threat has now been reduced. Today, 4,000 of the patents were purchased by a corporation called RPX, which has licensing agreements from Google, Cisco, and dozens more companies.
[RPX is] a company that collects a bunch of patents with the goal of using those patents for member companies for defensive purposes. Even though RPX has generally been "good," the business model basically lives because of patent trolling. Its very existence is because of all the patent trolling and abuse out there. In this case, though, it's making sure that basically anyone can license these patents under FRAND (fair and reasonable, non-discriminatory) rates. The price being paid is approximately $900 million. While that article points out that this is considerably less than the $4.5 billion Microsoft and Apple paid originally, again, this is only 4,000 of the 6,000 patents, and you have to assume the 2,000 the other companies kept were the really valuable patents. In short, this is basically Google and Cisco (with some help from a few others) licensing these patents to stop the majority of the lawsuits -- while also making sure that others can pay in as well should they feel threatened. Of course, Microsoft, Apple and the others still have control over the really good patents they kept for themselves, rather than give to Rockstar. And the whole thing does nothing for innovation other than shift around some money.
What it does is create a barrier to entry to a market and lock in the existing players. Instead of one patent covering an invention expiring after 20 years, an amorphous blob of non-patents is created to which the existing players join a pool.
This is really no better than having one patent troll like Microsoft trying to block competitors with BS patents so weak it won't reveal them without an NDA. It's trying to hide weak patents in a fog of paperwork.
The companies that bought into the patents are: 1) Confirming the validity of these junk patents ensuring troll MS continues to milk money for something it didn't invent, and 2) Ensures they will have the same trick to use against any new entrant.
Patents should be granted to an individual or their assigned company - and then NOT allowed to be transferred. If it's really intellectual property, require that it be used by the intellectual who came up with it, not randomly sold to some giant team of lawyers who try to "monetize" it 10 years after the fact.
That would allow any person - or company that person worked for at the time - to take full advantage of the patent for its original purpose (since almost all patent trolls are not the original inventors) while preventing the soul-sucking leeches on innovation who just want to buy up a bunch of "intellectual property" and speculatively sue anyone who might be doing something remotely similar.