SGI, Back From Dead, Decides To Use Patent Litigation As New Business Strategy

from the losers-litigate dept

What were we just saying about the trend of companies who failed in the marketplace to resort to patent infringement lawsuits as a last gasp effort to stay alive? When SGI filed for Chapter 11 bankruptcy back in May, many didn't give the company much of a chance of amounting to much if it could even reorganize and come out of bankruptcy. Well, last week, the company triumphantly emerged from bankruptcy, claiming that it was "lean and mean." The company claimed it had new management, new business models and a new strategy. Of course, what they didn't mention was part of that strategy was to sue others for patent infringement. It certainly didn't take the "new" SGI long to send its lawyers after ATI for apparently infringing on a patent. Perhaps SGI has a real business strategy to become relevant again -- but to kick things off with a patent infringement lawsuit suggests that they're not convinced that actually competing with their products in the market place is going to take them very far.

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  1. icon
    Mike (profile), 25 Oct 2006 @ 6:13pm

    Re: losers-litigate dept ?

    Litigation is becoming a standard part of all business negotiations nowadays.

    And this is a good thing? Think of all the money this wastes that could go towards actual innovation.

    If you can't afford litigation or you have nothing to litigate about then you are a LOSER in modern high-tech.

    And this is a good thing?

    Every good idea gets stolen almost immediately by multiple parties.
    This is a dog-eat-dog world out there...


    And this is a good thing?

    I certainly understand that this is how things work, but the whole damn point is that it's wasteful. It's bad for the economy. It's bad for business. It's bad for innovation. Whether or not it's "how things work" doesn't matter. It's bad.

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