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
    John Fenderson (profile), 8 Aug 2012 @ 9:44am

    Re:

    "Yellow journalism" is apparently the new phrase that the paid trolls are being required to use. It's a particularly odd choice and a stingless insult, as TD isn't journalism at all, and specifically claims to not be journalism, so it can't be "yellow" or any other color.

    I say let them run with it. it's a harmless barb.

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