Perpetual Innovation

Category: Patent Troll

  • Apple Loses Patent Infringement Suit, Ordered to Pay $533 Million | Rolling Stone

    Apple Loses Patent Infringement Suit, Ordered to Pay $533 Million | Rolling Stone:

    It seems apropos that Rolling Stone would have a great report on the iTunes (Apple) law suit loss to the tune of 1/2 billion dollar$. The loss rules that Apple did infringe on the 6 patents related to the storing and accessing of songs, videos and games.

    In the suit that might well be called the the Apple vs. the Troll, the ruling was that Apple not only infringed, but willingly did so and consequently results in the terrible treble-damages penalty that makes patents such a powerful weapon.

    The other company is Smartflash. This is a non-practicing entity (NPE), that might unkindly be called a patent troll.

    Apple plans to appeal. Smartflash is aiming for the iPhone and iPad sales/profits because those devices actually play iTunes music that is subject to the infringing patents.

    Imagine how many billion paid downloads from iTunes it takes to make up a $0.5B to pay the fine.? WoW.

    This could get uglier and uglier.

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  • The Toll of the Patent Troll by any other name: Intellectual Property – Bloomberg

    Symantec, Microsoft, Blue Cross: Intellectual Property – Bloomberg:

    A patent troll, by any other name, may not be called a “patent troll” in court.

    This would be funny, if it weren’t true. The often called “patent troll” company Intellectual Ventures LLC, can not be disparages by such names as “patent troll” in court the presiding judge says. IV — a play on the vampire concept of draining all the blood from the body of otherwise living and productive entities — does not produce anything and has a monster war chest of patents which it brings out only during the stealth of night.

    In the case of an entity that buys up patents but doesn’t invent and doesn’t produce anything, the company is often referred to unkindly as a “patent troll”. In the real world, like cell phone makers, someone producing a product is exposed to other producer’s patents, and vise verse. The players are forced to work together, license and cross-license in order for anyone to produce anything.

    But the troll has a wonderful vantage point. Any product produced is fare game, and the real players in the game don’t have much recourse if they want to produce anything and run a productive business.

    Non-Practicing Entity (NPE) is another name for the troll, but it is not nearly so accurate.

    IV was rated #1 troll in 2012 in the kingdom of patent trolls: here.

    And, of course, the targets of the NPEs are larger and more innovative companies like AT&T and Google. In 2013 the “troll” toll in terms of law suites were up 19% from the prior year. (Fortune article on this topic.) It will be interesting to see what the stats for 2014 are since there has been a big drop in several types of law suits based on benchmark legal rulings.

    For now, a patent troll, by any other name, will have to be by a nicer name, at least in court. I wonder if Patent Vampire, or intellectual property parasite is acceptable?

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  • Business method patent issuance has plummeted since Alice | Managing Intellectual Property

    Business method patent issuance has plummeted since Alice | Managing Intellectual Property:

    Trends in Business method patents has seriously dropped since the Supreme Court ruled on the Alice v CLS Bank case in June. The court ruled that an abstract idea is not necessarily a business method and saying that it will be done on computers (network/cloud) doesn’t assure it to be a valid claim either.

    This ruling knocks back business method (and software patents).

    So the major drop in business method patents could well be attributed to this case. The charts are rather telling but looking at a few more moths in 2015 should really crystallize the picture.

    This should also setback those questionable entities that camp out under the economic freeway, with a bundle of patents, and charge everyone coming and going a toll.

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  • Intellectual Ventures: Patent Troll plans to Start actually making things, not breaking things.

    Intellectual Ventures: Patent Troll Funds Startups, New Products – Businessweek:

    The worlds largest patent troll, apparently, has decided to go legit. Kinda.

    This company, aptly abbreviated IV as in a vampire draining blood, is the largest holder of patents with some 70,000. More than IBM with more than 20 years as the world’s largest patenting company, by far.

    With such a war chest of patents, it is hard for anyone to make anything that doesn’t violate their patents. This is especially the case if you don’t actually make anything, as a perfect troll would do.

    So IV has been drawing blood for the economy on a rather endless basis. But, if you pay the blood money for a few of their patents, you get “protection” where nobody else can mess with you without having to fight the entire war chest of IV.

    It seems like the perfect business model based on pirates and Somalian entrepreneurs.

    So why break such a tried and proven business model?

    I think on the tax returns, where you put our line of business, entering “Patent Troll” is likely no problem for the IRS. They will take the taxes on those profits just the same as for the companies that actually produced a product.

    We have a few ideas why the patent troll would change his stripes, but we would like to hear what others have to offer?

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  • The belief that our patent system is broken is patently false | freep.com … Broken as designed?

    The belief that our patent system is broken is patently false (guest column) | Detroit Free Press | freep.com:

    This is a very interesting article by David Kappos (IP attorney and director of the USPTO). Intellectual Property, especially patents, is a critical foundation of the US economy and of our entrepreneurial proficiency.

    But we shouldn’t take it for granted.

    That’s why some of the IP, Hi-Tech companies have joined together into an American alliance of innovation: Partnership for American Innovation  http://partnershipforamericaninnovation.org/.

    Companies need to take advantage of IP and use it aggressively both domestically and abroad. Especially if we are in the US where we do have strong rule of (IP) law. We must avoid allowing countries with lax IP laws to overrun us on our own strengths, our strengths to innovate.

    We need to aim for Perpetual Innovation(tm). Hall & Hinkelman talk about Perpetual Innovation(tm) in their 2013 book on Patent Commercialization argue that many companies are broken-as-designed. They are not designed around managing their intellectual assets; they still operate as if most of their assets and most of their value comes from physical assets.

    The US Patent system may not be broken, but many companies are. And IP is a critical part of all innovation and the pipeline of new products.

    Hall, E. B. & Hinkelman, R. M. (2013). Perpetual Innovation™: A guide to strategic planning,
    patent commercialization and enduring competitive advantage, Version 2.0    .
    Morrisville, NC: LuLu Press. Retrieved from: http://www.lulu.com/spotlight/SBPlan
    Hall, E. B. & Hinkelman, R. M. (2013). Perpetual Innovation™: Patent primer 2.0:
    Patents, the great equalizer of our time! An overview of intellectual property
    with patenting cost estimates for inventors and entrepreneurs.      Morrisville, NC: LuLu Press. Retrieved from: http://www.lulu.com/spotlight/SBPlan
    (or Kindle at http://tinyURL.com/IPPrimer2) 

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