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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.
Without knowing anything about these patents it is impossible to put that value into perspective; Did MS just taking a tremendous loss or did they score big time? They paid 4.5 billion, now a few years latter how does that price look taking this sale into consideration? Did Microsoft end up losing their shirt, taking only like 20% of the cost for 66% of the patents? Or is and was 80+% of the value of the hoard in the remaining 33%?
Troll is not a replacement for I disagree.
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.
Disclaimer: I am a patent holder
I entered the field back in the 1970's and guess what? Patents were already there !
While it is true that patent trolling were not considered to be trendy back then, but the existence of patents in itself had already stiffen innovation somewhat
While we geeks and nerds kept on trying out new ideas, the institutions (universities and research labs) we worked for were sweating bricks and had to check with their attorneys to make sure that we were doing did not trespass on somebody else' patents
The idea of patents were good, when it was invented, however, that idea does not suit the present days environment anymore. Due to the abuse and trolling, patents have become a big hindrance to the society to move forward
Muchas Gracias, Señor Edward Snowden !
Software patents are utter bullshit from word one. They should just go away and stay away.
Hardware patents are something else, but it's pretty clear they are being *very* poorly managed. I don't even like saying it, but I'm afraid I agree with you: they do more harm than good now.
We need an entirely new model of encouraging invention. Trade secret is useful in providing a reasonable profit window and establishment of precedence in the marketplace (the only way to go with software, as far as I'm concerned) as the window you get correlates well with the complexity of what you've done, but has its limits when we're talking hardware.
Perhaps a way for society to pay for an invention, and once that's been done, it goes right into the "available to everyone" pool. Panels of experts setting perceived value and an immediate payment being made, followed by a revisit ten years later to determine how it all went, with extra reward possible if the invention's impact was underestimated?
Look at me, suggesting government committees. Oy. I should go bang my head on a table.
But damn, we *really* need to clean out the drains. Patents are the disgusting glop that are making the system run slower and slower, while getting legal sewage all over everyone involved. The only consistent winners here are the plumbers (lawyers.)
I've fallen off your lawn, and I can't get up.
Nov 2008: "RPX is funded by Kleiner Perkins Caufield & Byers and Charles Rivers Ventures. Its two chief executives, John Amster and Geoffrey Barker, previously served as vice presidents of Intellectual Ventures, another company in the business of purchasing patents."