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Hard Drive Imports to be Banned?

Posted by CowboyNeal on Fri Oct 12, 2007 06:35 AM
from the outlaw-drives dept.
Arathon writes "Apparently the International Trade Commission is beginning an investigation that could lead to the banning of hard drive imports from Western Digital, Seagate, and Toshiba, among others, on the grounds that they fundamentally violate patents held by Steven and Mary Reiber of California. The patent apparently has to do with "dissipative ceramic bonding tips", which are important components of the drives themselves. Obviously, a ban would be unthinkable, and yet the ITC has 45 days to settle on a fixed date for the end of the investigation. If the patents are found to be violated, and the Reibers do not allow those patents to be bought or otherwise dealt with, the importation of almost all hard drives would actually be ceased."
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  • useful arts (Score:5, Insightful)

    by Speare (84249) on Friday October 12 2007, @06:37AM (#20951325) Homepage

    And this is promoting the Progress of Science and useful Arts, how, again?

    • Re:useful arts (Score:5, Insightful)

      by Bert64 (520050) <bert&slashdot,firenzee,com> on Friday October 12 2007, @06:39AM (#20951339) Homepage
      Well, it could spur drive makers to create a replacement technology to get round the ban.
      But more likely they'd just revert to some older non infringing technology, resulting in inferior drives for any country which enforces the patent.
    • Re:useful arts (Score:5, Informative)

      by gravesb (967413) on Friday October 12 2007, @06:44AM (#20951383) Homepage
      Ideally, if these two people actually invented the technology, then they should get paid for it. If people get paid for inventions, then they are more likely to continue to invent, as are others. A patent allows them to shop the technology around and sell it. Without patents, large companies could steal the technology and there would be no monetary reward for small inventors. I'm not sure that's what happened in this case, and the patent system has swung too far in one direction. But that's why there were three SCOTUS cases on patents last term, a few this term, and a bill in the Senate to overhaul the system. Hopefully it will move the system back in the other direction.
      • Re:useful arts (Score:5, Insightful)

        by aurispector (530273) on Friday October 12 2007, @06:59AM (#20951493)
        This kind of smells like a patent mugging to me. If all these companies were using the patent, why did it take so long to file suit? Did all these companies ignore due diligence? Is there some sort of standards that were hashed out while the patent was kept underwater like in the Rambus case?

        I really think there needs to be some sort of limit on how and when patent holders can do this sort of thing, coupled with some way standards bodies can file public notice regarding intent to use a particular process or design. First to file is not a bad starting point, but prior art could come into play in the context of such a public notice process, e.g. standards board says we are making stuff like this...public period to comment...patents not claimed by 180 days invalid for this case...NO profit for patent holders!

        The muggings gotta stop
        • States that a plaintiff may not collect for damages compounded by the plaintiff's actions, or failure to act.

          Of course, IANAL. But this is /., so...

          For example, if a plaintiff knows his patent is being infringed, he cannot simply wait until after the infringer has produced the product for a number of years and then sue for an inordinate sum. In such a case, the court is not likely to grant royalties for past infringement because the plaintiff knew about it and did nothing to stop it. Future royalt

        • by Ihlosi (895663) on Friday October 12 2007, @07:10AM (#20951581)
          Does that promote the progress of science and useful arts?



          It promotes science when everyone suddenly has to find a way to work around the patent.

        • the inventors are subject to the same laws of supply and demand as everybody else. they can ask a zillion jillion dollars and they won't get it. they can ask for a large some, commensurate with the amount the market values the hard drives buillt using their technologies by companies. This isn't rocket science, people.
        • Re: (Score:3, Insightful)

          In a word? YES! They invented it they get to set the price. If it's a valid innovation that's so valuable that everyone copied it then obviously it should be well rewarded. If it was something obvious then it should never have received the patent.

          What did these companies do prior to this technology? Did these companies get the technology from these people or discover it separately on their own? It's not cut and dry but if these folks discovered this on their own, patent it, and then have the technology co-o
        • Re: (Score:3, Insightful)

          At least this is the theory behind patents existing in the US. AFAIK this has never actually been tested.

          How exactly would you test it? The only thing we can go on is anecdotal testimony by inventors, which generally supports the view that the system is working as it was intended. Wilson Greatbatch, inventor of the implantable cardiac pacemaker and over a hundred other inventions, openly states that his goal is to get patents and make money from licensing them, otherwise he wouldn't have invented anythin

    • Re:useful arts (Score:5, Insightful)

      by Daniel Wood (531906) on Friday October 12 2007, @06:47AM (#20951407) Homepage Journal
      I don't know the validity of the patent nor do I know if it was a submarine patent, so I can't comment on that aspect. While the ban would have severe financial impact on most of the magnetic storage industry, if not the entire economy, this could be the real kick in the pants that SSD's need. This has the potential massively increase density and lower costs of SSD's in a very short timeframe. If they can cram 16GB on a SDHC card(Due January 08), imagine how much storage they could put in a 3.5" or even a 1.8" SSD. That said, this ban will not be enacted. The federal government will not allow a ban on imports of magnetic HDDs. Not only because of the financial devastation it has the potential to cause, but because it would severely inconvenience the government as well. Remember the whole BlackBerry patent suit?
    • by ubrgeek (679399) on Friday October 12 2007, @07:05AM (#20951537)
      Not to worry. The platters are round and hold digital media. The RIAA is bound to get involved somehow ...
      • Re:useful arts (Score:5, Interesting)

        by bstone (145356) on Friday October 12 2007, @07:40AM (#20951827)
        The patents here appear to be for the tools used to build the drives. IANAL, but I thought that patents covered only the end product. In this case, the patented tool can be claimed, but not everything ever built with the patented tool. This claim would need to be filed in the country where the tool was used, assuming that country has issued a patent on the invention.

        • by jbeaupre (752124) on Friday October 12 2007, @09:28AM (#20953485)
          You risk extreme ridicule for:
          a) having read the article
          b) having read the patents
          c) having a rational post concerning patents

          This is Slashdot, where Chicken Little is an optimist.
          • Re: (Score:3, Interesting)

            Corporations pay for most of the research that generates patents (and products). The individual inventor, tinkering in his garage to produce a patent that he'll use to get rich, is mostly a myth and has been for years. For every one person like that, there are probably ten thousand patents ground out by IBM Research or Intel or Microsoft, purely as weapons in an ever-escalating war.
        • Re:useful arts (Score:5, Insightful)

          by BLKMGK (34057) <morejunk4me@hot m a i l.com> on Friday October 12 2007, @08:14AM (#20952289) Homepage
          Yes because it's so much better to sink piles of money into R&D only to have some other company copy the technology and sell it for less due to their not having to recoup the R&D costs.

          Get a clue.

          This is how China is taking many American companies (and others) to the cleaners. Why bother to innovate or invent something when you can simply copy what someone else has done at little to no cost? Done often enough and the folks who do the innovative things are going to find themselves bankrupt - then what? I'm all for patent reform and I think software patents need to be rethought but you make it sound as if ALL patents are somehow "bad" and that's just naive. Yes, a limited monopoly can be had with the right patent and this is why they need to eventually expire - and do! The drug industry, abusive as it is, is a good example of this. If you've EVER bought a generic drug than you've seen this process at work. Sadly the drug companies have combated this not by striving for better research but my making minor changes to existing drugs and re-patenting and by spending more on advertisement than they do R&d. Why do we allow them to advertise prescription only drugs to the public exactly?
          • Re:useful arts (Score:4, Insightful)

            by Anonymous Coward on Friday October 12 2007, @08:30AM (#20952511)
            You get a clue. You're deeply naive, having bought the "patents reward innovation" Big Lie hook, line and sinker.

            sell it for less due to their not having to recoup the R&D costs.
            That's the risk of R&D. the innovator still has first-mover advantage. Patents allow the risk-averse to compete unfairly with risk takers. You're committing something akin to the broken window fallacy. In reality, EVERYONE is better off if innovations can be freely built upon, even other innovators. No innovator stands aloof. Frankly, I'm disgusted by the american infofascistic "dream", it flies in the face of millenia of human progress dependent on open sharing of information.

            Why bother to innovate or invent something when you can simply copy what someone else has done at little to no cost

            First mover advantage. COMPETITION. The essence of free market capitalist economic theory - the only way to stay in business would be to innovate continuously. Patent monopolies exist to slow innovation to levels manageable by the establishment of bankers and lawyers and such social parasites.

            and re-patenting
            This is only possible because the patent system exists. Destroy the patent system, and they won't be able to do that.

            (The drug industry specifically also has other problems - overzealous FDA regulation for instance.)
              • Re:useful arts (Score:5, Interesting)

                Who will step up to continue to innovate, knowing that all of their R&D is only good for a few months at best before somebody else can get a duplicate to market?

                Someone who will have saves millions of dollars on the R&D of previous companies. In fact, the previous company you're talking about got to save millions of dollars on R&D, too, because they didn't have to spend 3 years coming up with a new way to get to where the original patent holder is already without infringing.

                The fundamental difference between you and GP is that you think that people should have some sort of entitlement because they have an idea, and GP doesn't, necessarily. There's a lot that goes into being valuable to society. For example:

                I have Idea, and want to get it to market. However, I am terrible at implementing Idea. Idea is a great great idea, but my product is not. OtherCo comes by and sees my shitty product on the market, and thinks they can do better. So they take Idea and use their own ideas to create GoodIdea. GoodIdea is a good product, whereas my product is crap. I start seeing losses in sales, because GoodIdea just makes more sense then Idea. So I take GoodIdea, and add a couple things that I learned while supporting Idea, and come up with VeryGoodIdea.

                In the above model creates 2 good products, starting from one good idea that turned out to be a bad product. If my original idea had been really good, I could have coasted on it for a long long time, but it wasn't, so I couldn't.

                Where's the crime?
          • Re:useful arts (Score:4, Informative)

            by bleh-of-the-huns (17740) on Friday October 12 2007, @08:43AM (#20952725)
            Actually, in many cases they do not make any changes to the drug at all, but rather find a new purpose that allows them to refile (ie initially a cold medicine, then repurposed to include allergy medication).

            I would not be surprised if they know exactly what a medication can cover, but choose to only advertise it for one purpose till the patent is about to expire, then miraculously find a new problem to solve and get the patent extended...
  • by gravesb (967413) on Friday October 12 2007, @06:40AM (#20951347) Homepage
    After the eBay v. Mercexchange case, injunctions are not automatic. The ITC could just award damages if it finds infringement, and not stop the flow of harddrives.
    • by mcelrath (8027) on Friday October 12 2007, @06:46AM (#20951401) Homepage
      Better yet, injunctions should be disallowed.

      It certainly harms the progress of useful arts to stop sales and/or development. Instead, patent violation should be assessed only in the amount of money owed from one party to another, calculated as a reasonable fraction of the profit earned from goods in violation of the patent.

      If the inventor has a great idea, but an incompetent marketing and/or development, the patent should allow others to compete on the basis of marketing and development, using the same idea, but the patentor should get his due in any case.

      In other words, I think all licensing of patents should be compulsory. I can't see any argument why any party should disallow any other party from implementing their patents. It seems this is only ever used for anticompetitive purposes, which harms the market and harms consumers, and is illegal when done in other ways.

      --Bob

      • Re: (Score:3, Interesting)

        That's a really good point. The problem comes up with who sets the price for the patented part. The court? The bad-faith infringer who has an incentive to discount its worth? The inventor set a price higher than the infringer, or else there would some agreement. Taking away someone's ability to sell, or not sell, their property has some issues, at least in the US. Same issues that come up under the Takings Clause.
    • by Zeinfeld (263942) on Friday October 12 2007, @07:05AM (#20951539) Homepage
      After the eBay v. Mercexchange case, injunctions are not automatic. The ITC could just award damages if it finds infringement, and not stop the flow of harddrives.

      This is an ITC action, not a patent infringement suit. The rules are very different and pretty corrupt.

      Back in the 1980s when the US feared it was losing its edge a series of bills was passed to create non-tariff barriers to high tech trade. At the time the US HI-tech companies were complaining that their ideas were being stolen. So they created a kangeroo-court process to allow US companies to block competing imports.

      Of course this started long before the effects of Reagans gutting of the USPTO review process were beginning to be realized. At the time a patent actually meant something.

      Regardless the drive manufacturers will settle. Just think of it as a private tax.

  • Smuggling (Score:4, Funny)

    by Dynamoo (527749) * on Friday October 12 2007, @06:41AM (#20951353) Homepage
    Well, at least it will give the drug smugglers something to diversify into as they try to ship contraband hard drives across the US border. Although I'm not certain how well the "body cavity" approach would work... ouch.
  • using this tech? If they started prior to 2001, the Reiber's should be taken out and flogged.

    Dissipative ceramic bonding tool tip
    Inventors: Reiber; Steven Frederick (Rocklin, CA), Reiber; Mary Louise (Linclon, CA)
    Appl. No.: 10/036,579
    Filed: December 31, 2001

    Dissipative ceramic bonding tool tip
    Inventors: Reiber; Steven-Frederick (Rocklin, CA), Reiber; Mary Louise (Lincoln, CA)
    Appl. No.: 10/650,169
    Filed: August 27, 2003
  • by loftwyr (36717) on Friday October 12 2007, @06:52AM (#20951443)
    I'll set up an illegal hard drive smuggling ring! I'll be rich!

    It's perfect except for them Untouchables that will break open my liquor barrels looking for bootleg hard drives.
  • by Linker3000 (626634) on Friday October 12 2007, @06:53AM (#20951449)
    I am an IT Manager:

    Oh shit, Maxtor wasn't on the list - PLEASE GOD: please don't make system builders install Maxtor drives, I have enough to worry about without the possibility of random drive failures within the next 6 months - 2 years.

    I am an independent computer support engineer:

    YES! I look forward to a massive jump in hard disk replacement business within the next 6 months - 2 years.
  • by scsirob (246572) on Friday October 12 2007, @06:56AM (#20951475)
    Maybe, by allowing these kinds of bans based on claims of litiguous bastards will finally get real patent reform going. It's just plain stupid that patents are allowed to cause damage like this.
  • This case is a clearcut proof that the patent system doesn't protect the little guy and the little guy hitting it big with a patent is a total myth.

    By all rights, the law that the article refers to is designed to ensure that the little guy has another means of recorse to protect his or her patent. But instead, these companies are going to find a judge that kinda agrees with them, and they will be allowed to import these drives despite the patent violation.

    Of course, the right thing to do would be to change patent law so that this sort of infringement is something everyone is allowed to do. But oh no, we still want to leave the patent laws on the books, to protect the big guy, from guess who, the small guy.
  • by iknownuttin (1099999) on Friday October 12 2007, @07:52AM (#20952003)
    I'm seeing a lot of posts here about the evils of patents and how they stifle innovation. They don't. And unfortunately, folks forget the story about the inventors of the MRI machine.

    These guys spent decades and millions of dollars of their own and investors' money creating this machine. When they get it to market, General Electric and Hitachi just steals the idea and markets it. Pretty much destroying the company that was started by the inventors. They then sued over another decade or so finally getting a settlement. IF they just sat back, others would have profited off of their work. That's an injustice if I've ever seen one!

    Without the inventor with the hopes of making it big and getting a return to their investors, they WILL BE NO INCENTIVE TO INNOVATE. Some of the MRI Story [about.com]. (Wikipedia has some of the business stuff wrong)

    more history [columbia.edu]

    I don't care about the very few patent trolls or whatever, I know there's abuse, but we shouldn't throw the baby out with the bath water.

    • Prove it (Score:3, Interesting)

      Without the inventor with the hopes of making it big and getting a return to their investors, they WILL BE NO INCENTIVE TO INNOVATE.

      One anecdote about patents and MRI invention does not prove this point. The truth is, there are *plenty* of incentives to "innovate" (whatever that means anymore), not the least of which is just for the sheer joy of discovery.

      But even with the MRI: their invention did not spring whole cloth from their foreheads. They too stood on the shoulders of giants, and other pithy phrases
  • by gmarsh (839707) on Friday October 12 2007, @09:05AM (#20953109)
    I read the patents. There is absolutely nothing in this patent which is related to hard drives in any specific way. And there's nothing that hard drive makers themselves have uniquely done to violate this patent themselves. This patent applies to *ANY* semiconductor chip. What they've patented here is part of the chip packaging process. When chips are packaged, the silicon die is placed in the center of the IC package, and wires are run between the individual leads on the outside of the package to bond areas on the silicon. These wires are welded at each end by ultrasonic welding using a tiny vibrating probe. Now if you've got a probe flying around doing all this welding work, there's a slight chance it might accumulate some static electricity - and since the probe is touching the silicon die directly it might fry the chip you're trying to pacakge. This isn't a good thing so you ground the probe. But that's not a good thing either; if the chip itself becomes static charged, touching it with a grounded probe might fry it too. So you insert a bit of resistance to limit the discharge current - this is why static wrist straps and static mats, the ESD soldering iron on my desk and so forth have a certain amount of resistance. Their patent is "make that resistance in the chip bonding probe out of ceramic". Which I suppose has some advantages. *shrug* So the actual patent violation works like this: - A semiconductor company (eg. ST, TSMC) fabricates semiconductor chips for hard drives. - A packaging company (eg. Amkor) takes these chips, cuts them off wafers and packages them. Perhaps they use a ceramic bond probe to do this, violating the patent. - The semiconductor company gets the chips back and sells them to the hard drive maker. - The hard drive manufacturer then builds hard drives out of these chips. And somehow the hard drive manufacturer is at fault here, and hard drive imports suddenly have to stop. They don't even directly use the patent - I'm sure they don't give two shits about how the wires are bonded in the chips they use and until know they probably knew nothing about it. If the chip reads stuff off the heads and sends it out the (S)ATA interface, what else do they care about? (But of course, I'm sure by some perverted interpretation of the law, hard drive makers are using the patent and they're liable...) Of course, I'm next in line to get sued. I've sold electronics kits on the internet, and the last one used an ATMega48 microcontroller. If that chip was wirebonded in violation of this patent then I'm obviously the one at fault (not Atmel or whoever) and I gotta pay up! And after that, my friend who drives a cab part time will get sued for patent violation - his car's engine computer could contain a chip that was was wirebonded the same way, and he's making money driving the car and "using" the patent, right? fuck...
    • Re: (Score:3, Interesting)

      I think he was trying to insinuate that, due to the fact that there is lead in hard drives, that their importation should already be under scrutiny, before the issue of a patent is even explored, and also playing a little bit with the current mess of products China is already in hot water over for lead complaints.

      I'll paste a little bit from Wikipedia's entry on the matter. [wikipedia.org]

      "According to the European Union Waste Electrical and Electronic Equipment Directive (WEEE) and Restriction of Hazardous Substance
    • Re: (Score:3, Insightful)

      What's "In Soviet Russia" about it? Afaik, the joke is that ISR it's exactly reverse than it is here.

      Ya know, those ISR jokes get quite stale when you can't see the difference between Soviet Russia and our beloved Free World anymore.