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. identicon
    Digger, 8 Aug 2012 @ 7:58am

    Bankruptcy should mean IP goes public domain

    If a company goes bankrupt, it shouldn't be able to sell off patents, they should roll right into the public domain.

    Patents are there to give the *inventor* first rights at making a profit off of them. Then shortly after that, they are to roll into the public domain for the good of the general public. Not fall into the hands of non practicing entities for extortion.

    Courts allowing this sort of sale off of the public's property are in collusion with this extortion racket and should be brought to justice.

    Ban NPEs, ban sale of patents in bankruptcy. Watch the world become a better place.

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