Patent Hoarder Says Only Bad Guys Are Those Who Don't Pay Up

from the well,-of-course-he'd-say-that dept

Acacia Technologies is a name that folks in the patent business know well — as they were one of the earliest firms to get publicity for hoarding patents, and then threatening to sue anyone who didn’t license those patents (sometimes referred to as a “patent troll” though that name is problematic). Acacia became well known for trying to get just about everyone to license an incredibly broad patent they hold on any kind of streaming media. The patent is so famous that it’s at the top of the EFF’s list of patents that should be busted for holding back innovation. is now running an interview with Acacia’s CEO who trots out the typical story line about how they’re just in the licensing business, and anyone who dislikes them is probably just stealing ideas and doesn’t want to pay for them. He tries to twist things around, by claiming it’s just a few random companies who would prefer to steal rather than innovate — not noting that many of those companies have been pushing the innovation envelope for decades, constantly bringing new and innovative technologies to market that have helped drive large parts of the economy. He also pulls a nice little trick by claiming that because some big companies have licensed Acacia’s patents, they obviously have no problem with the company. What he leaves out is the process Acacia took to get those companies to license the patent. They started out by going after online porn companies, knowing that not many would want to defend them. Then, once they got a few of those to give in, they went after larger and larger companies and used the success against smaller ones as leverage to get the bigger companies to pay up. For many of those companies, they simply decided it was cheaper to pay up to keep Acacia from going to court. Just because you pay up the local mob boss for “protection” money, it doesn’t mean that he represents a legitimate insurance company.

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Comments on “Patent Hoarder Says Only Bad Guys Are Those Who Don't Pay Up”

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Anonymous Coward says:

Reform! Reform! Again I say reform!!

I think a major step in the right direction would be for the law to be changed to say that only the companies who actually innovate a technology should be allowed to sue to extract value from a patent. Simply being an ‘intellectual property holder’ should not entitle you to sue for damages. Sure, buy and trade patents all you want, but extracting the value should at the very least be restricted to those companies actually doing the innovation. It would not solve the current f***ed-up mess of a patent system, but at least it would be a step in the right direction?? F*** you Nathan Myhrvold and your kind…

angry dude says:

You, techdirt folks, are MORONS

What a bunch of loosers…

First try to invent something novel and useful, then patent it and attempt to commercialize it being a small garage inventor…

You will be singing a totally different tune pretty soon.

But none of you can invent anything, you just keep bitching about other people trying to make some buck on their own inventions (yes, with some help from those patent trolls like Acacia)

Ask Carlso Armando Amado what he thinks about Acacia and Microshit: I am sure he has a higher regard for Acacia than for MicroShit, just like the rest of us, small garage inventors.

Shut the f*** up morons – you have nothing to do with inventions and patents.

Mike (profile) says:

Re: You, techdirt folks, are MORONS

Funny, angry dude, you keep repeating this same claim, and we keep responding to you. Yet, you simply ignore our response. If that’s what you consider innovation… then, okay.

The point is you’ve set the wrong conditions. We HAVE innovated. We’ve come up with some great products, but rather than patent them, we SELL THEM to customers who want them. So, yes, we have invented and we have commercialized… successfully! And we did it all without patents.

So, no, we’re not going to be singing a different tune.

As for Carlo Amado, as has been discussed in detail elsewhere, his patent never should have been granted in the first place. His ideas weren’t new and they weren’t innovative. And, of course, he’d like Acacia. That doesn’t help support your position at all.

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