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Firm Seeks To Ban Mobile Companies' Imports To US

Posted by Soulskill on Fri Jan 16, 2009 08:01 PM
from the even-silly-patent-claims-are-bigger-in-texas dept.
snydeq writes "Texas-based Saxon Innovations has filed a complaint with the US International Trade Commission to bar six companies — including Research in Motion, Palm, and Nokia — from importing handheld devices into the US. At issue are three patents that Saxon purchased in July 2007; a patent for keypad monitor with keypad activity-based activation; a patent for an apparatus and method for disabling interrupt marks in processors or the like; and a patent for a device and method for interprocessor communication by using mailboxes owned by processor devices. Saxon, with five employees, purchased about 180 US patents formerly owned by Advanced Micro Devices or Legerity in 2007, according to its ITC complaint."
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  • by Anonymous Coward on Friday January 16 2009, @08:03PM (#26491853)

    If you can't innovate, litigate!

  • Very nice! (Score:4, Interesting)

    by The Bungi (221687) <thebungi@gmail.com> on Friday January 16 2009, @08:05PM (#26491887) Homepage

    As if the frakin' telecommunications industry in this country wasn't crap enough compared to Europe and Asia.

    Way to go.

  • by Dachannien (617929) on Friday January 16 2009, @08:10PM (#26491955)

    ...but filing ITC complaints is cheap.

    The whole point here is that enforcing these patents against all of those companies is an expensive proposition with no guarantee of returns. However, they can get Free Money by extorting those companies to pay them royalties, backed up by the threat of an import ban from the ITC, and even if their complaint is rejected, they've spent practically nothing.

    • by StuartHankins (1020819) on Friday January 16 2009, @08:16PM (#26492003)
      It's way past time for patent reform, these patent trolls are way out of hand.

      Can we require businesses that patent the ideas to have real, actual products to retain the patent?

      They buy an idea, then sit on it. No one benefits from it (except lining their pockets with no efforts on their part). Bad for consumers, bad for other businesses. Boo!
      • Re: (Score:3, Interesting)

        Don't be too sure that nobody profits from these sorts of things.

        I'll bet that this is the real reason that the iPhone doesn't have a keyboard.
      • by Zordak (123132) on Friday January 16 2009, @08:29PM (#26492123) Homepage Journal

        Can we require businesses that patent the ideas to have real, actual products to retain the patent?

        Well, since one of the things the complainant has to prove in the ITC is that they have a domestic industry practicing the asserted claims, yes, we can.

          • Re: (Score:3, Informative)

            Still, somebody must be practicing the invention. You can't just pull the classic troll trick of having a thousand questionable patents and filing shotgun suits. It has to be more targeted because you (or somebody related) have to actually be doing it.
      • Re: (Score:3, Interesting)

        It's way past time for patent reform, these patent trolls are way out of hand.

        Why is this not happening? Seems like the companies who actually produce stuff have a major economic interest in this, that usually translates into lobbyists and shortly, political action. Seems like the only time big buisness doesn't get it's way on issues like this is when there's another big buisness interest opposing it.

        What exactly is keeping patent law open to trolling like this? Big powerful patent troll association I've never heard of? Or is it more that the buisnesses hurt by abuses don't have

      • by artor3 (1344997) on Friday January 16 2009, @09:16PM (#26492543)

        Can we require businesses that patent the ideas to have real, actual products to retain the patent?

        No, because some times sitting on an idea to get another company to pay for it is a legitimate practice.

        Let's say I create Startup Inc, and design a new type of lithography. I don't have the money to build a fab or anything, so I show the tech to Intel and offer to let them use it in exchange for royalties. Under your system they could say no, use it anyway, and I wouldn't be able to sue, because I don't have an actual product.

        Patent trolls suck, and there should be a way to stop them through litigation, but we have to be sure that we don't kill off real innovators in the process.

        • by turbidostato (878842) on Friday January 16 2009, @10:12PM (#26492887)

          "Let's say I create Startup Inc, and design a new type of lithography. I don't have the money to build a fab or anything, so I show the tech to Intel and offer to let them use it in exchange for royalties."

          In order for you to convince Intel you show them a prototype. *Then* you have a working example covering your patent. If you don't have even a prototype then all you have is an idea and ideas shouldn't be subjected to patents.

          "Patent trolls suck, and there should be a way to stop them through litigation, but we have to be sure that we don't kill off real innovators in the process."

          Two words: Trade Secrets.

      • Re: (Score:3, Insightful)

        They buy an idea, then sit on it. No one benefits from it (except lining their pockets with no efforts on their part). Bad for consumers, bad for other businesses. Boo!

        Let's step back a bit here though. "no efforts on their part" is not exactly true. They have capital in the matter. They are investing in those patents, presumably because they think the idea has merit -- but they are taking the risk that it does not. They do not "line their pockets" without the patent having some form of merit.

        The patents came from somewhere, their original creators presumably got compensated and therefore had more incentive to patent in the first case (instead of keeping their ideas a tra

        • by Sparr0 (451780) <sparr0NO@SPAMgmail.com> on Friday January 16 2009, @08:41PM (#26492235) Homepage Journal

          Sorry, you haven't been keeping up. The popular M.O. is to sit on the idea until it has already become popular, THEN offer licenses. If you come out with the patent to begin with, potential licensees will just work around it. Waiting until they have built their business on it is far more profitable in the long run.

            • How does a company that has developed, manufactured, marketed and sold an actual product benefit when years later comes around and says "Nope, you can't keep selling that until you license your idea from us."

              Patents have their uses. An invention a person or company spends time and money researching should be protected to a degree. IFF it is original and non obvious - especially if there is an actual product you're selling incorporating this patent.

              However, filing a patent for every damn thing you can think

            • Re: (Score:3, Insightful)

              Yes, of course they offer licenses, AFTER they sit.

              If they offered licenses up-front it wouldn't be a scam. They'd have to have a useful tech and people would see that and pay to use it, new products would be made, everyone WOULD benefit.

              But in the patent-troll scenario they obtain a patent on a useless piece of tech, not something nobody wants, but something so simple everyone independently invents it, and they wait until everyone does when they suddenly "offer" licenses. If, by offer, you mean threaten to

        • Re: (Score:3, Insightful)

          If I managed to invent a process for producing hydrogen at 1/1000'th of the cost but it required a massive amount of money to actually produce the plant, for example...

          If you didn't build a prototype then you didn't know whether your process would actually work. If you didn't know whether it would work then you didn't really invent anything. And if you didn't really invent anything then you didn't deserve a patent anyway!

        • Re: (Score:3, Interesting)

          Loser pays won't work unless you adjust for the financial load.

          The RIAA can sue a college student and spend a million dollars, let's say 1000 times more than the student has, and easily afford to pay this if they lose. The student can only afford maybe $100 to actually pursue justice and could never hope the pay the RIAA legal team's lunch bill if he lost.

          But we all know the court system is worthless anyways because the party with the most money wins - even if they don't "win" you die a pauper, likely with

    • The other benefit of ITC proceedings is they are very, very fast. I don't see that a trial date is set yet, but I would expect to see this go to trial around August or September.

      But don't make the mistake of thinking ITC proceedings are cheap. Basically, you're paying much of the cost of a district court proceeding, but all in a compressed time period. So don't expect this to be something like the NTP case. You should expect to see something (most likely a settlement---that's what always happens anym

  • Saxon, with five employees

    All IP lawyers, no doubt. Well, okay, maybe four and a secretary.

  • patents (Score:3, Insightful)

    by p51d007 (656414) on Friday January 16 2009, @08:14PM (#26491987)
    This is exactly what is wrong with the patent process. You have a "company" of only FIVE people, who could potentially stop any technology that might "infringe" on these obscure patents.
    • This is exactly what is wrong with the patent process. You have a "company" of only FIVE people, who could potentially stop any technology that might "infringe" on these obscure patents.

      Necessity is the mother of invention. -- Aesop
      Patents are the motherfucker of necessity. -- Me

    • Just until they threaten a company with large revenues run as a mob front and their office is suddenly visited by Luca Brasi and Furio....

  • Change the law so that they cant go to the ITC and ask for an import ban, they instead need to go to the courts and ask for an injunction. If they have to go to the courts, they presumably have to at least demonstrate something vaguely resembling evidence to back up their patent claims.

  • by timmarhy (659436) on Friday January 16 2009, @08:36PM (#26492193)
    my god the US patent office needs to start applying this thing called the obviousness test.
    • Re: (Score:3, Interesting)

      Moreover, the obviousness test should be much more stringent: if I can easily recreate the thing by just looking at it, then it isn't patentable. Only stuff that can exist as trade secrets (that is, can't be easily figured out by studying the item) should be patentable. Which is far closer to the original intent of the patent system.

  • by KokorHekkus (986906) on Friday January 16 2009, @08:46PM (#26492279)
    If the US patent system diverges far enough from the global average rights of patents then the US market will become too expensive to both develop for and enter into. Of course the US market is a major one but if the worldwide market share is bigger it means that the risks in the US (submarine patents etc) are not worth spending your money on primarily. So it will protect the US companies on their home turf. But multinational companpanies, even US based, will be looking at the US as a secondary market because of the risks.
    • by bigsteve@dstc (140392) on Friday January 16 2009, @09:13PM (#26492515)
      Another possible outcome is that companies cave in to the trolls and enter into licensing arrangements for products sold in the US. Multiply by a factor of 100 or so for each of the patents for so-called "inventions" that might be infringed by any given product.

      The costs will then be passed on to the US consumer. The end result is a private taxation system where every consumer and every business effectively pays a "high tech" tax on every high tech device purchased and every service used. And the money just disappears into the pockets of the patent speculators ... with no net return to businesses, consumers, or even to the people who created the inventions in the first place.

  • by russotto (537200) on Friday January 16 2009, @09:03PM (#26492417) Journal

    ...because they're crap. I looked at the first patent and the first few claims looked suspiciously like the (certainly not novel) idea of connecting up a keyboard matrix in such a way that pressing a key triggers an interrupt on the row lines, which triggers a wake-up event and a keyboard scan. I couldn't tell about the later claims. Then I looked at the interrupt mask patent

    1. An interrupt mask disable circuit comprising:

    first logic circuitry operably coupled to receive an interrupt request and a mask signal and to provide an interrupt signal when the interrupt request is active and the mask signal is disabled, and to provide a non-interrupt signal when the mask signal is enabled regardless of whether the interrupt request is active or inactive; and
    second logic circuitry operably coupled to receive a mask activation signal and a mask override signal and to produce the mask signal, wherein the mask signal is enabled when the mask activation signal is active and the mask override signal is not enabled and wherein the mask signal is disabled when the mask override signal is active regardless of whether the mask activation signal is enabled or disabled.

    You've got to be kidding me. AMD patented a common interrupt mask circuit... in 1994? Apparently it isn't only with respect to software that the patent office is out of touch.

  • by SuperCharlie (1068072) on Friday January 16 2009, @09:21PM (#26492583)
    So Im reading yet another article on how some troll is ransoming out some more patents.. great.. meanwhile, a day or two ago I read the who's got the most patents for 2008 and numbers like.. IBM said it earned 4,186 U.S. patents in 2008, Microsoft Corp earned 2,030 patents, while Intel Corp had 1,776 and Hewlett-Packard 1,424. (from a Slashdot article)

    Im thinkin the real weight of the patent system isnt even touched by major corps. Individual and small group/investment firm patent companys like Eolas looking for that ONE patent to go home on, by sheer numbers, probably dwarf the IBM and MS's of the world.. regardless..

    By sheer brute force attack on common technology methods, conduits, hardware and the like they create a "monkeys typing Shakespear" effect, not with letters, but with common terms and principles.

    At the rate the monkeys are being added, soon no one should be able to do anything without everyones approval.



    Tada...
    • by turbidostato (878842) on Friday January 16 2009, @10:25PM (#26492977)

      "Im thinkin the real weight of the patent system isnt even touched by major corps. Individual and small group/investment firm patent companys like Eolas looking for that ONE patent to go home on, by sheer numbers, probably dwarf the IBM and MS's of the world.. regardless.."

      I really don't know, but it doesn't matter. The core of the bussines here is not having "that ONE patent" but having that one patent WITHOUT an industry backing it up. Big corps have used patents as deterrent weapons against their rivals for decades now but the problem here is not a little tech company with the "ONE patent": as long as they produce something, they are probably in violation of dozens of patents belonging to the very ones they want to license to, so they will be forced into a mutual agreement; if the case is between two big corps they have such a big patent arsenal that they again are forced to cooperate or face an assured mutual destruction scenario. But lawyer-based firms don't produce anything so they are immune to the usual patent counterattack which has made the patent system flaws more obvious.

  • Domestic Industry? (Score:3, Informative)

    by UnrealisticWhample (972663) on Friday January 16 2009, @09:27PM (#26492615)
    They don't even have an actual website. If you go to , all you'll find is an under construction message. Pretty much all you can find about them online is related to suing people. I miss the good ole days of the 1790's when Thomas Jefferson would deny a patent if the inventor couldn't demonstrate a working product.
    • I think the lesson here is that the system was designed with some basic assumptions about the "anybody" who would be running it, but the Founding Fathers were not aware that The Enlightenment would be just a temporary aberration.

  • by Hangtime (19526) on Friday January 16 2009, @10:34PM (#26493047) Homepage

    U.S. District Court for the Eastern District of Texas, ding ding ding

    I'm from Texas and I think every judge in that district should be removed.

      • Re: (Score:3, Interesting)

        I would really dearly love to see a lot of tech companies start refusing to ship products to east Texas, and start refusing to do distribution deals to stores there. Take every single useful gadget off their market with an industry boycott, and tell 'em that they can have their shiny gizmos back when they stop producing ludicrous patent decisions.

  • by toby (759) * on Friday January 16 2009, @10:41PM (#26493125) Homepage Journal

    You worked out yet why your economy is in the crapper?

    Imports. And outsourcing all your manufacturing to China.

  • Quickest solution (Score:3, Interesting)

    by yabba-dabba-do (948536) on Saturday January 17 2009, @01:07AM (#26494217)
    Is for RIM to disable Obama's phone. "Sorry, when the patent mess is cleaned up, we'll turn it back on."
  • by josepha48 (13953) on Saturday January 17 2009, @02:07PM (#26498983) Journal
    pretty simple, companies should not sell and buy patents!

    Either that or they should be treated as real property and taxed, like real estate is taxed in most states. Then annual taxes would be assessed to patent holder.

    • Re: (Score:3, Insightful)

      I can do much better than that. Honeywell Level 66 mainframes had mailboxes in their CPUs to talk to the I/O processors. This dates back to at least 1975, when I first encountered them. Probably true for Multics mainframes from the '60s too.