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stories filed under: "stockpiling"
Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
clustering phylogenetics, patents, stockpiling



Microsoft The Latest To Try To Patent An Entire Bio Industry

from the just-what-Jefferson-intended dept

Microsoft's Bill Gates once famously pointed out that if software patents had been used back in the early days of Microsoft, the personal computer revolution almost certainly never would have occurred. But, over the last few years, Microsoft has become quite aggressive in the patent space, not just working hard to acquire as many patents as possible, but also waving them around at times and threatening other companies with them. Now, some will point out that, in the software space at least, many feel the need to stockpile patents, just for the sake of having something to use to threaten those who threaten you with patent infringement (the nuclear stockpiling theory).

However, now it seems that Microsoft may be trying to stockpile outside of its core industries, and it has some folks up in arms. A bunch of folks sent in the story about how Microsoft is trying to patent clustering phylogenetics methods (here's the application) that supposedly are quite common in the evolutionary biology industry. Of course, it's just an application -- so one would hope that, if it's so widely used, that the examiner will knock it out with plenty of prior art. But, the Patent Office isn't always known for doing such a good job on these sorts of things. And just the fact that such a patent is being attempted should be troubling enough.

25 Comments | Leave a Comment..

 
Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
lawsuits, patents, stockpiling

Companies:
mformation, ntp, rim, wi-lan



RIM Sued Yet Again For Patent Infringement

from the maybe-you-shouldn't-have-kicked-up-all-that-dust dept

While most people think of just the NTP lawsuit when they hear about RIM and patent infringement troubles, what's often left out of the discussion is that prior to the NTP suit, RIM was one of the more aggressive companies in filing patent infringement lawsuits against everyone else. In fact, it was news articles about RIM's aggressive patent enforcement strategy that convinced the guys behind NTP to file their lawsuit in the first place. Since paying $612.5 million to NTP to settle that battle, other patent holders have been lining up to sue RIM as well.

Earlier this year, we wrote about another aggressive patent enforcer, Wi-LAN, which sued RIM for infringement. RIM, once again, settled -- indicating a bit of an open season. If you happen to have a patent that RIM might sorta possibly infringe on, why not sue?

The latest to step up to bat is Mformation, who has sued RIM for two separate patents which are both about remote management of a wireless device (Patent 1 and Patent 2). Whatever the merits of the case, all of this has to make you wonder if RIM regrets its decision to kick off the process of suing lots of companies for patent infringement. It seems that the blowback was a lot worse than any benefit.

21 Comments | Leave a Comment..

 
Predictions

Predictions

by Mike Masnick


Filed Under:
cost accounting, patent hoarding, patents, stockpiling



Is Cost Accounting To Blame For Patent Hoarding?

from the one-possibility dept

Michael F. Martin is a lawyer/investor who is always good for some interesting debates in the comments here on the question of patents. He's a supporter of the patent system, with some fixes. Suffice it to say that he and I disagree on an awful lot, though I appreciate his willingness to try to really dig into the questions being discussed and to dig through all sorts of ideas and research. It's just that we usually come to almost the exactly opposite conclusions.

I'm not sure where I come down on his latest thought piece, suggesting that part of the reason why companies have been hoarding so many patents is because of cost accounting. His assertion is that cost accounting treats patents as an asset, rather than as equity. That causes companies to overvalue the patent itself, rather than the investment and effort that need to go into making a useful, marketable product. His feeling is that as companies move away from static cost accounting, the problems related to patent hoarding will hopefully decrease.

It's an interesting theory that I have not heard of before. I agree that cost accounting creates all sorts of problems with accurately valuing company assets. I also agree that companies overvalue patents compared to the effort of actually bringing a product to market. However, it's not clear that it's cost accounting that's leading to the problem. He presents no evidence to show that the two things are connected. It seems that there's a much more straightforward explanation: numerous high publicity patent lawsuits with extreme awards combined with loosening of the restrictions on what can be patented has created a mad rush for patents. And, to make matters worse, companies feel they need to build up a stockpile of their own patents to fend off others with their own patent portfolios. The cost accounting angle is an interesting one, but it seems like a stretch to think the impact is that big compared to those other factors.

15 Comments | Leave a Comment..

 
Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
content delivery network, patents, stockpiling

Companies:
akamai, ibm, level 3, limelight



Limelight Level 3 Gears Up For Patent Nuclear War

from the wasted-money dept

Update: Made some updates to this post as I misread the original article, suggesting that it was Limelight, not Level 3, that bought the patents. Earlier this month, we wrote about Akamai's patent lawsuit against competitor Limelight. Akamai had dominated the content delivery network space for many years, but Limelight and others have made serious inroads lately, putting a ton of competitive pressure on Akamai. Akamai's response to sue for patent infringement is exactly the sort of societal negative that shows how the patent system harms society. To reinforce that, it appears that, rather than just further innovating, others are now spending money that could have (and should have) gone to research and development on buying up its own patent portfolio to act as a nuclear stockpile to fight off Akamai. In this case, Level 3 (not Limelight, as originally stated in this post), is buying up patents from IBM. End result? Lots of money wasted on patents and patent infringement lawsuits, less innovation in the space and less competition. How can that possibly be a result that promotes the progress?

42 Comments | Leave a Comment..

 
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