Facebook Has To Waste Money On 750 IBM Patents Just To Ward Off Other Patent Lawsuits

from the play-the-game,-waste-money dept

It's been a pretty open secret for quite some time that Facebook is actively in the market to buy a bunch of patents, and now it's done its first big deal, scoring 750 patents from IBM to add to the 56 patents it currently has (some of which it purchased, and some of which it applied for). There's been plenty of talk about people who don't really know much about patents about how Facebook "needs" more patents, and the ridiculous Yahoo lawsuit only increased the attention the issue is getting. Plus, there are some investors who still -- for whatever reason -- think that the number of patents in a portfolio are a reasonable proxy for innovation or the ability to control a market. Of course, none of these patents will help Facebook against its most common legal foe: the patent troll. They're really only useful either against other operating companies (to ward off patent nuclear war cross-suits) or if Facebook decides to become obnoxious like Yahoo and start suing others offensively.

What this really shows is just how broken the patent system is. Facebook basically just had to waste a large chunk of money on a bunch of patents that have nothing to do with innovation, which won't help Facebook provide a better product for its users and which will only serve to create more money for lawyers somewhere down the road. That's not a healthy system. That's not an efficient system, and it's not one that's good for innovation or economic growth.

Filed Under: defense, inefficiency, patents, waste
Companies: facebook, ibm, yahoo

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  1. This comment has been flagged by the community. Click here to show it
    Anonymous Coward, 22 Mar 2012 @ 11:53pm

    think that the number of patents in a portfolio are a reasonable proxy for innovation they need to come here, no patents + no innovation = Techdirt.

    you cant even be bothed to write your own articles, it's "cut n paste" yep that'll do.. 'now where's my money'..

    is it every going to happen that you are going to do something original Masnick ? and I dont mean just making shit up, I mean actual researched, confirmed and reasoned content ?

    or do we need to go elsewhere for that, you would be lost without cut n paste !!! sorry COPY n Paste..

    "Copy - Paste - troll" job done..

    people dont want quality, they want quantity, people do not want informed debate, they want to see Masnicks copy/paste skills..

    why did you 'forget' to mention the 503 patents Facebook has filed for ?

    I guess that does not fit in with your warping of the truth!
    (if you have a different reason, we would like to know it)

    otherwise, we just have to assume your stupid and biased, and lazy/greedy/sleezy..

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