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
    Jon, 25 Oct 2006 @ 7:31am

    Because...

    "why don't we all just share the ideas, and who ever can actually do it the best gets the rewards?"

    Because R&D costs lots of money. Drug companies put millions of dollars in the R&D on new drugs. Drug companies must be able to hold a patent on those new drugs for a few years if they're going to make their money back on the R&D. Of course, they do other evils besides that.

    If there was no pot of gold at the end of development, a lot of development would never happen. Big or small.

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