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. identicon
    angry dude, 26 Oct 2006 @ 9:11am

    Capitalism is bad

    So, maybe Mike you prefer to live under communist rule?

    Communism is certainly more attractive (at least on paper) for idealistic people like you.

    Capitalism is wasteful and ugly indeed...

    But, sticking to the subject of patent system, the USSR (without any stinking patents - just the way you would like it here in US) was able to launch rockets in space and build an H-bomb before US could do it. On the other hand, USSR couldn't make a good mass-produced tape recorder or VCR or even a toilet paper of acceptable quality, in large part due to the absence of greedy capitalists and working patent system...
    Keep bashing US patent system every time you drive a nice car or use a high-quality Gillet razor or type your stupid notes on the latest generation of Pentium-powered PC...

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