Looks like it may be time to update our patent thicket graphic. Another company that's not actually doing anything in the space is suing everyone who is. A company named H-W Technology apparently holds a patent (7,525,955) on an "Internet protocol (IP) phone with search and advertising capability" and has sued Apple, RIM, Google, Amazon, eBay, HTC, LG, Smasung, Microsoft, Nokia, Verizon and others for violating it. Because, you know, I'm sure no one possibly could have figured out how to put search and ads on a phone without this patent.

NTP, a patent holding firm that is really just a bunch of lawyers with incredibly broad and questionable patents, is at it again. As you probably know, NTP was locked in a long and contentious patent fight with RIM over NTP's claimed patents covering the concept of mobile email. Even as the US Patent Office was telling the world that NTP's patents almost certainly weren't valid, pressure from investors (and the judge in the case who refused to wait for the Patent Office's final rejection of the patents) resulted in RIM settling the case for $612.5 million. For RIM, it became something of a no brainer. Even though its legal position was strong, its investors were killing the company over the uncertainty (there were threats that the judge could issue an injunction shutting down the entire Blackberry network). Settling the case helped RIM's stock price jump up (increasing its market cap more than the cost of the settlement).

But, from a legal perspective, the lawsuit and the end result became the centerpiece of attention for efforts at patent reform. While I still think that the patent reform process in Congress has been misguided and the end result probably a lot more damaging than helpful, many of the politicians involved will point to the RIM-NTP case as evidence of the problems with the patent system. You might think, then, that NTP's investors might sit back and enjoy the spoils of the RIM settlement, but the company quickly went back out and sued all the major mobile operators in the US for violating its patents. However, judges in those other suits said (unlike the judge in the RIM case) that those trials should wait until the Patent Office has made a final decision on the validity of NTP's ridiculously overbroad patents.

However, NTP is not waiting around. It's now suing again. This time, rather than the mobile operators, it's going after device makers and platform vendors, suing Apple, Google, Microsoft, HTC, LG and Motorola. Basically, it appears that NTP has decided that if anyone does email on a phone, they have to pay NTP.

There might not be a better example of how incredibly screwed up the patent system is than this. NTP was involved in an attempt to do mobile email ages ago (and it wasn't the first actually... but NTP paid off some folks who had prior art). The idea itself wasn't new or all that innovative, and the timing was off, so NTP failed. In a functioning free market, that's a good thing. If a company can't execute, it should fail. Unfortunately, thanks to a ridiculously overbroad patent award, NTP has been able to live on as a bunch of lawyers suing any company that does figure out how to execute.

Perhaps the only good thing coming out of this is that it may help draw more attention to just how broken the patent system is.

We've seen it all too often over the years. After a technology company has failed to get anywhere in the market with its products, it decides to sue everyone possible for patent infringement. As has been said: Those who can, innovate. Those who can't, litigate. The latest to join the bunch is a failed multimedia device company, e.Digital, who is suing a ton of companies, claiming to hold a patent on using removable flash drives in portable devices. Seriously. It's already sued Casio, LG Electronics, Olympus, Samsung, Sanyo, Vivitar, Avid and Nikon (all in Texas, of course) and says that's just the beginning.

The patents in question are as follows:

• US5491774: Handheld record and playback device with flash memory
• US5742737: Method for recording voice messages on flash memory in a hand held recorder
• US5787445: Operating system including improved file management for use in devices utilizing flash memory as main memory
• US5839108: Flash memory file system in a handheld record and playback device
• US5842170: Method for editing in hand held recorder

To think that others weren't thinking about removable solid state storage on devices seems rather ludicrous. The real innovation in the space may have been the creation of flash memory, but to claim that using removable flash memory is an innovation worth limiting with patents just doesn't make any sense. But, once again, this shows how the patent system is being used for the exact opposite of what it's supposed to do. The company that failed in the marketplace gets to hold up those who are succeeding because they made a better product.

For additional irony, by the way, it should be remember that one of e.Digital's failed media devices looked almost identical to the iPod, and was named the "Treo 10" -- quite similar to the Treo mobile phone device. I would think that charges of "copying" would apply a lot more to that device than anyone using the fairly obvious idea of using removable flash storage in a mobile device.

While we're often quite critical of frivolous trademark lawsuits that are clearly designed to to shut someone up or to try to squeeze money out of someone, there are times when trademark lawsuits are quite well justified. As we've said repeatedly, the real purpose of trademark law isn't about "intellectual property" at all -- but rather, it should be viewed as a consumer protection law. That is, it's really designed to keep Bob's Cola from packaging its bottles up so that people are tricked into thinking they're buying Coca Cola. So, with that in mind, it would seem that RIM has a pretty strong trademark case against handset maker LG, who has been trying to sell new phones with names like Black Label, Strawberry and Black Cherry. The "Black Label" one is more borderline -- as it's hard to see that RIM should be able to control the use of the word "Black" as it relates to any mobile device. However, it's not hard to see people hearing names like Strawberry and Black Cherry on a mobile device and simply assuming that they're somehow related to RIM's BlackBerry. Even worse, LG had apparently wanted to call one of its new devices the BlackPearl -- which is really sketchy, seeing as RIM is offering a device called the BlackBerry Pearl. On this one, we'd say that even the moron in a hurry test suggests that people would be confused into thinking that some of these LG phones were from RIM.