Patents

by Mike Masnick


Filed Under:
auction, incentives, patent trolls, patents

Companies:
kodak



Execs From Bankrupt Kodak To Make Millions For Giving The Company's Patents To Trolls

from the this-is-not-innovation dept

We've written about the ridiculousness of the ongoing auction over Kodak's patents -- the final sad legacy for the once giant company. However, it's getting even more ridiculous. On Monday, a bankruptcy court judge approved about $6 million in "performance" bonuses for execs, including some that are based on how much the company gets from these auctions. Think about the ridiculous incentive structure here. You have executives who are running a bankrupt company, who are set to make millions (in a court approved manner), for handing off the company's patents to trolls, so they can go out and sue the actual innovators.

The execs make out like bandits. The buyers likely make out like bandits after shaking down some companies. The lawyers (of course) make out like bandits. And... who gets screwed? Oh yeah, the companies who are actually innovating successfully in the market and the public (who we thought the patent system was supposed to benefit).

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  1. icon
    Ninja (profile), 8 Aug 2012 @ 3:29am

    Hopefully the trolls will bring the world to a halt so our politicians will actually stop and think "seems we have a problem". Sponsored by the tech companies that can't keep moving obviously.

    It's much like the MAFIAA.

    MAFIAA: Here's your pay check Senator.
    Senator: How much is it?
    MAFIAA: 50.000 neurons. I mean, dollars.

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