Thursday, April 20, 2006

Definition of "patent troll"...

In the wake of yet another "patent troll" case, Microsoft, Autodesk lose patent case, I decided to take up Matthew Buchanan's challenge to define a patent troll. (I've submitted the following as a comment as well).

I'll take a stab at a definition of a "patent troll":

A company, individual or other entity whose current sole business objective is the exploitation of a patent or patent portfolio acquired after (but patented before) the adoption of a technology to extract royalties or settlement agreements at values calculated to be near the cost of patent litigation.
Under this definition, companies can move from "legitimate" inventive businesses into the realm of "trolls" and vice-versa. I think that I've incorporated several important distinctions:
  1. Simply seeking out licensors and/or infringers cannot be enough to be a troll;
  2. Simply seeking reasonable royalties cannot be enough;
  3. Simply defending one's actual business by using a patent or patent portfolio cannot be enough (purpose of; and
  4. Being a invention farm cannot be enough.

I think that this captures companies that are essentially patent holding companies, with no real business objective except the acquisition of patents (usually not of their own creation), to enforce against wealthier, productive entities.

The Slashdot crowd may not like this def'n since they use the term to include lots of entities--or even one commenter using the term against universities.

Frankly, I'm not sure that there is such a thing as a patent troll, or even if they're necessarily a bad thing. I think largely the idea of a patent troll is really about perception. The small patent owner is always a troll when you're the infringer.

Additional material: I might also add to the definition that the patent or patent portfolio often contain weak or seemingly invalid patents. By quickly glancing at the software patent at issue in the Microsoft/Autodesk case, I'd have to say that Microsoft/Autodesk are correct that these patents, 6,044,471 (filed 6/4/1998) and 6,785,825 (filed 5/31/2002), seem invalid. For one thing, the first patent seems to cover methods of "product activation" long used by shareware software.

Wednesday, April 19, 2006

Offshoring I.P.

I'll write more about this later, but in a somewhat stunning announcement, the IRS is seeking $1 billion dollars from Symantec for undervaluing it's intellectual property in Ireland.

This is several months after a Washington Post (it's a pay article, reposted here discussed here) article talked about Irish subsidiaries.

It so happens that I'm researching the risks and advantages of offshore IP operations. So I should have a lengthier post shortly.

Friday, April 07, 2006

Pending rule change comment deadlines...

The USPTO has three significant rules change proposals with impending comment deadlines:

  1. Changes to Practice for the Examination of Claims in Patent Applications - 5/3/2006 - AB94comments@uspto.gov
  2. Changes To Practice for Continuing Applications, Requests for Continued Examination Practice, and Applications Containing Patentably Indistinct Claims - 5/3/2006 - AB93Comments@uspto.gov
  3. Revisions and Technical Corrections Affecting Requirements for Ex Parte and Inter Partes Reexamination - 5/30/2006 - AB77.comments@uspto.gov