Patent troll asks judge to turn off FaceTime and iMessages
arstechnica.com
arstechnica.com
That's the usual dance. Normally, a non-practicing patent owner such as VirnetX would FAR prefer to have the infringement continue, and thus get a bigger payday, than to have the court order the defendant (Apple) to stop the infringement. So, the patent owner pushes hard for just such a shut-down order, to try to bulldoze the defendant into settling. Outside observers would be forgiven for thinking that there's a certain element of "playing chicken" involved. To a first approximation, this seems to be pretty much what happened in the NTP v. Blackberry case ten years ago. [0] [1]
I don't think they'd actually do it. It would probably be kinda stupid to do. But it's fun to imagine.
Probably not with any reasonable chance of success. At least in the U.S. legal system, if you can convince the jury that your allegation was in fact true, then that's an absolute defense to a defamation action. (There would also be other obstacles, which I won't address here.)
[0] http://www.rcfp.org/first-amendment-handbook/introduction-de... (scroll down to "Falsity")
A necessary element for a defamation claim is that the statement be false. As this statement is 100% provably true, it is not defamation. They'd be thrown out in an instant.
I think I would side with that. Do you get sent to jail because someone saw you, or because you were stealing stuff?
You're sent to jail because you were caught, tried, and convicted of stealing things. The act of stealing alone does not send you to jail. Same with patent infringement. The act of infringement alone does not force Apple to shut down iMessage. VirnetX is required to actually file the lawsuit, and then win, for Apple to be required to shut it down.
Most users would probably blame Apple for being so careless with how they implemented their feature set... and then they would install Google Duo[1]
[1]http://www.androidcentral.com/duo-googles-attempt-most-human...
Honestly, expecting humans to respond rationally. Whatever next?
sheesh
Suspicious of running water? Probably.
The patent attorney specifically MADE the patent broad. Thats the only way it gets any value anyway.
It's a balancing act between a patent that is worthwhile to own yet still novel+non-obvious. Overly broad means prior art exists that can be used to invalidate. If none could be found then it means patent is valid.
Apple's imessage was released October 2011.
Yet they're suing because Apple infringed on their vague communication encryption patents from the early 2000s.
There should be massive fines for patent trolls to deter this kind of behavior. Patenting abstract ideas with no viable product should not be allowed.
/sarcasm
Then start with fining large corporations who each hold numerous patents that do not ship a corresponding "viable product" for.
Patents are much like little pieces of law. And we can either believe in law in its entirety or ignore it whatsoever. I choose the former. If someone uses and abuses exceptions and loopholes in the law, the problem is with the law, not person using that to their advantage.
They list some companies that have licensed their software, but did they actually license software or just settle the IP claim?
>>> VirnetX has been saying for years that it has plans to market various products, but for the time being, its income comes from licensing patents. It has about a dozen employees and leases a small office in Zephyr Cove, Nevada for roughly $5,000 a month, according to a recent yearly financial statement. >>>
Finally, is _anyone_ using the suite they released in 2015? Also funny: their website forum is filled with employee-generated Q&A back in May 2015.
(It at least avoids "military grade encryption!")
Sure I trust secure comms to a company with CIA involvement. I bet, those apps are closed source...
Could Apple not find prior art and invalidate the patent? Apparently not.
I assume a software patent in particular does not give VirnetX an absolute right to shut down a product for which it is just a small component.
I do think patent awards for component functionality do not get adjusted downward enough based on the relatively small weight of the subject matter on the overall product. When one piece of software can be covered by thousands of parents, violating a single parent should, most of the time, cost less than a small fraction of the overall value of the product.
IMHO The patent laws should be amended to require entities to both "articulate a solution" and "add value" to make the patent valid.
For ARM (described in other posts as a NPE) their patent licenses are bundled with a low-power processor core design that provides a solution to licensees requirements. The core design adds value to the basic technology covered by the patent.
The VirnetX patents shouldn't be valid as they merely describe an element of a design, and not a particular means of implementation. This may fall under Sec. 112(f) "Means-plus-function" [0], but getting the patents invalidated is not easy.
The EFF have tried to bust "stupid patents" [1] somewhat successfully. Please donate to support this worthy cause.
There is conceiveably at least 1 other company with comprable shitty patents that is public, so a bidding war race to the bottom would incentize prices down instead of up if possible.
It could also be possible (in a much more gray possibly worse) way, actively drum up interest for a patent trolls IPO from the alliance funds, and then not invest in the fund, but release open source patents sourced from a different provier inavlidating there ability to sue in the market, with the alliance fund promising anyone using [ rediculously standard tech ] would have their full support in leveraging the open source patents and fighting legal fees associated with someone trying to invalidate the open source patents. this could disincentize bad behaviour.
It is pretty rediculous a company that is less than 2 years old can win a settlement for fucking twice it's market cap. I don';t think the market/law could limit age/market cap as startups would get killed if bigger people poach there stuff, but maybe some requirement to file suit of needing a working product or service using the technology and maybe some combo of years in the market / market cap, plus (which I think is critical) the public company must be owned by some reasonably large but not insane number. e.g. if you quietly ipo your shell and then you and your horrible 10-20 stakeholders foot the legal bill, then you shouldn't be allowed to sue, but if hundreds/thousands ++ are buying it, then it is likely actually a real or semi legit company.
A patent troll typical incorporates a vehicle and often they are public. This limits their risk as they are not opened to lawsuites (as many companies) but in cases of partnerships it is sometimes possible to target the partners themselves. When they take what is essentially a SPAC[1] public, it is likely only insiders invest. They must disclose their assets and thus, the "portfolio" is what is taken public. Even outside investors are likley either people contributing patents, banks/fin inst. with knowledge of space/lawyers/esecutives executing strategy. This extremely high level of consolidation would make it much easier to manipulate their share price. This is some of what I suggested above. Either during the IPO, in the media, or during trading trying to negatively impact patent trolls to disuade them from existing. What I suggested orignally may not be the correct strategy, but the thought was that it could be possible and very situationally, cooperate in a market as consolidated as this to make the cost of trolling so high that it would be unprofitable or very risky, ideally legislation/patent reform would fix these problems but this would be the patch.
This would be a combination of hostile takeovers of companies, buying and open sourcing patents, and actively trying to make the risk and cost of capital so high, or an executives failure so humiliating there would be less people trying to raise, and the difficuly would go up substantially.
Obviously, massive market coordination would be very difficult, but it is considerably easier to do this if a company is neccessarily consolidated as (I suspect) trolls might be, given they aren't real companies and are quite niche.
Another possible benefit is that if a patent troll tried to dump a portfolio into another shell after a loss, or otherwise do something negative, a minority stake could bring lawsuits against the individual person. For example, a group of 10 troll execs would not think twice about started an identical company and moving assets packages there. If you were a shareholder of a real company, you wouldn't give away a lot of "IP" for free but they can, as they pass it to themselves or partners.
A minority, but legal sharholder, could sue the individual executives for breach of fiduciary responsibiltiy and other than raising the risk financially, personal individuals could face risk if not operating 100% above board.
[1] Special Purpose Acquision Vehicle
edit; Also, being inside would allow information to be accessed about internals. Outside investors could be found and outed (if actual entities) and tried in the media. E.G. if a hedge fund or firm had money in, they would be outed and scandalized for hampering innovation and PE & VC funds would refuse(if possible) their investments in future funds if they continued to fund such poor investments. A logical argument could be made to such hedgefunds as well, that it is possible for a risky mediocre return from a patent troll, they may actually cause damage to their own portfolio if one company is in the ecosystem or directly affected by a PT>
Apple could buy the troll suing it hundreds of times over(although assuredly it isn't for sale now) so patent trolling could be limited if they were stopped within the mareket. It is already a risky investment as they must litigate smaller companies to prove the patents as they gain the crediblity to go after larger ones.
Small companies are fighting them in court, big companies are fighting them in court, it makes sense that we take the fight to the market, and hurt them financially as well.
Once the trolls got enough publicity where this anti-troll group was going to try to take over the company then the trolls just sell their stock in the company (making $$$$$) and let the anti-troll group shut it down.
I recommend big companies buy out the firms with foundational patents like this from back in the day. They already do in big-company acquisitions with patent portfolio being a big reason. Just an extension of that. Any other patent trolls they should squash. Plus these wherever they can. Buying is last resort.
Would that be Nortel / Rockster Consortium approach? Sadly, big companies will be tempted to 'monetize' the patents and/or use them as a competitive advantage: and both are enforced via litigation. I supposed being sued by a big tech company rather than a patent troll is better?
The worst case is when a tech company buys patents, sells them to an NPE and then sics it on competitors, it's a good thing that'll never happen.
No it's not. Regardless of what you think of them if they own IP that was used by another company to sell a product that generated hundreds of billions of dollars then they should be entitled to fair compensation regardless of their market cap.
* company does not have a product using the technology.
* company has not existed longer than the product infringing on their technology, and is not a whollly owned (or largely owned) subsidiary of another company.
* company is suiing for a sum larger than its own market cap.
* company wants an injunction placed on the "infringing" technology & ops.
* company awarded a sum 3x its market cap and is asking for a sum close to its market cap on top of that.
So, yes, I get it and noted it in a different comment, age and marekt cap alone would be bad for startups and imperfect metrics. I believe that if you consider the above points, there is a way to create scale/filter for trolls that would allow "real" companies to actually operate.
If a company has no product, and its primary source of revenue is from direct litigation and settlements, is new/has recently restructured itself, is a public company with highly consolidated holdings, and is a patent troll, it should be considered a patent troll.
edit: I was incorrect, they IPOd in 2015. They started suing apple(or the article I read referenced the suit) as early as 2013 so they are in fact older.
There is almost certainly prior art, but it can be very hard to challenge a patent if the troll has already notched a few victories.
If that patent really is this broad then its very very dangerous to the Internet. It could in theory shut down dozens and dozens of things, including some very fundamental ones that are core parts of Internet infrastructure.
I thought I've seen some of the patents mentioned in the lawsuit rendered invalid by the patent office later.
Is that normal?
There are numerous publicly traded stocks of companies that are mainly patent holding entities: Acacia (ACTG), Finjan (FNJN), Inventergy (INVT), MARA, Wi-lan (WILN), Hopto (HPTO), etc...
But where does the whole troll definition end - many mid-large corporations have patents that they do not practice or not embodied in any product - so aren't they trolls too? even if they haven't explicitly threatened legal action with those patents - competitors view those patents as implicit threats. So why not label them as trolls too? At the end of the day, every patent holder can be considered a troll in some way - so the definition of a troll really comes down to: patent troll = patent holder.
For example is my patent: https://patents.google.com/patent/US5341429A/en?q=transforma... which has about 500+ citations. After the dot bomb, the company went out of business. That patent was not picked up by a troll. Why? Not sure, but perhaps the PTMS made it less useful for litigation.
Problem is, coming up with a definition of "patent troll" that's 100% objective and can reliably differentiate between a benevolent NPE like ARM and a group of snakes like VirnetX is tricky. Too strict and you'll have some awful false positives. Too vague and you're reduced to arguing it in court, something prohibitively expensive.
IMHO The patent laws should be amended to require entities to both "articulate a solution" and "add value" to make the patent valid.
For ARM (as a NPE) their patent licenses are bundled with a low-power processor core design that provides a solution to licensees requirements. The core design adds value to the basic technology covered by the patent.
The VirnetX patents shouldn't be valid as they merely describe an element of a design, and not a particular means of implementation. This may fall under Sec. 112(f) "Means-plus-function" [0], but getting the patents invalidated is not easy.
The EFF have tried to bust "stupid patents" [1] somewhat successfully. Please donate to support this worthy cause.
From what I can tell, ARM started 30+ years ago and sold physical chips. I am missing when they morphed into mainly selling chip designs - and how were they able to make such a transition without the publicity of lawsuits.
https://en.wikipedia.org/wiki/Ex_post_facto_law#United_State...
Given that patent trolls usually retroactively sue for stuff they didn't have anything to do with, I'd say it would be very satisfying.
This is unconstitutional. And not the fuzzy kind of constitutionality that pundits like to fight over. This is explicitly called out as forbidden in the U.S. constitution.
> No Bill of Attainder or ex post facto Law shall be passed.
Punitive damages are also not awarded as part of criminal cases. These would just be fines.
Lots of stuff the government does that pundits love to fight over is also called out as forbidden in the Constitution. Doesn't stop the government.
The patent system was designed to foster innovation. If you invent something, you get protection for your intellectual property. It's not a requirement that you produce a product. You could realize that you don't have the resources right out of the gate and choose to license your invention to someone that does. The days of submarine patents are over.
There are some entities that actually are patent trolls - companies that collect patents for litigation purposes - but just because a lawsuit happens doesn't mean that the plaintiff is a patent troll.
Hilarious joke man!
Would you spend millions in developing something novel just to have some random with a capriciously granted "X, but on a computer" drag you through court?
2) This patent troll is an NPE, which is usually (along with, you know, suing) the defining trait of patent trolldom. Why are you reciting grade-school nostrums about the Noble Idea of IP protection in general when responding to news about a particular entity in a particular case, who is quite clearly a troll? If I'm missing something, do clue me in.
3) If I'm misreading you, please do clarify. Being specific about harm, to whom, exactly, you're referring when bashing "the media", and perhaps why an extremely simplistic defense of patents seemed needed here would all be edifying.
Well here's a study showing that the user of the term "troll" had become widely used by media without any evidence to support their negative views. This has led to judges forbidding the use of that term at trials as it is unfairly prejudicial.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2768939
If it is improper in the court of law, one can reasonably assume it is improper in the court of public opinion as well. The effects of this bias can be seen in the usual comments on patent-related threads here and other forums, where the USPTO is regularly derided by people who don't know the first thing about patents. These people know only what the media tells them, and as the paper shows, media is highly biased. This bias is being spread to a large audience and is also being used to push for reform that may not necessarily be balanced. I'd say, yes, such rhetoric is hurting the patent system.
Look at Goodyear. He was an NPE. He invented vulcanized rubber. Never saw a dime. They even stole his name and built a company around it. He didn't have the resources to sue.
Look at Robert Kearns. He was an NPE. He sued. It destroyed his life.
There's no special qualification to come up with an idea. Patenting is a painful process. But it's a way to protect yourself. Just because people are involved in a lawsuit doesn't say or mean anything.
Regardless, this company is not an NPE. They have a working implementation of their secure messaging patent that is available on the app store.
> In what way is it "doing harm" to the patent system?
It's doing harm by framing inventors as villains rather than innovators. You've judged this company based on no other information than that they are referred to as patent trolls in an online article. If it's that easy for a large company to quell innovators, then the purpose of patents in the first place - to foster innovation - is gone.
--- Regardless the verbiage is frequently inappropriate and certainly in this instance.
No, the patent system was dedigned to elevate Queen's friends above their competition.
> By the 16th century, the English Crown would habitually grant letters patent for monopolies to favoured persons (or people who were prepared to pay for them).[14] [...]
> This power was used to raise money for the Crown, and was widely abused, as the Crown granted patents in respect of all sorts of common goods (salt, for example).
citation needed. another interpretation of the law is that it was designed to reward companies commensurate to the size of their legal department.
"To promote progress" is the core rationale for this power; I would argue that if the current implemention no longer does that, or in fact inhibits progress, then Congress needs to redefine how this works in law.
The other problem is that the protections offered by patents were designed at to give a "temporary monopoly" on the invention at hand. For software patents, though, this "temporary monopoly" ends up being (sometimes) five times the lifetime of that given technology. This is partly because the barriers for "inventing" something in the software space are minimal. Cloud hosting for services makes it possible for a small inventor to provide a large service inexpensively (or, at least without large upfront expenses). Traditional software requires only time and a place to download. What happens with software patents is the "inventor" is effectively given a monopoly over more than the effective lifetime of the product and for reasons that don't fit with the original design of the patent system.
Then there's the relative "quality" of those patents. Patents are supposed to be a way to make an invention public so that a person skilled in the field is able to reproduce the invention from the patent, alone. That's laughable if you've read any of the kinds of patents that end up in this kind of litigation. The patent is written in an artform designed to make the description of the invention as vague as possible (to cover as much infringement as possible) and is accepted by an overworked patent office that doesn't have people skilled in the field enough to actually evaluate whether a patent application should be accepted and granted this temporary-turned-lifetime monopoly protection.
These facts are what are doing harm to the patent system and it's no surprise, to me. I am not anti-patent[1]. I believe the protections as they were intended are a good idea. They're being abused, horribly, these days and the system around it needs to be brought back to its roots. Inventions with large barriers to production (drugs, where it can cost an incredible amount of money to get through regulatory approvals, for instance) should be allowed reasonable lengths of time for monopoly protections to encourage their development[2], but things that are novel, and have little-to-no barriers to production should have extremely limited or no protection from the patent system and trolling in this manner should come with penalties (plaintiff pays).
[1] OK, I'm vehemently against software patents and I have a serious problem with gene patents (I can't patent a rock, or the definition of the characteristics of a rock, I shouldn't be able to patent the characteristics of a molecule,... it's an over-simplification, but that's my opinion on the subject).
[2] There's plenty wrong here, too, but it's the best example I could come up with.