Patent Troll Says Anyone Using WiFi Infringes; Won't Sue Individuals 'At This Stage'
from the a-well-thought-out-shakedown dept
Just as some in the copyright trolling business are lowering their settlement fees, but making it up in volume, it appears there's a similar effort under way on the patent trolling side of the world. The Patent Examiner blog has the incredible story of Innovatio IP, a patent troll that recently acquired a portfolio of patents that its lawyers (what, you think there are any employees?) appear to believe cover pretty much any WiFi implementation. They've been suing coffee shops, grocery stores, restaurants and hotels first -- including Caribou Coffee, Cosi, Panera Bread Co, certain Marriotts, Best Westerns, Comfort Inns and more.There are various interesting things in the article worth commenting on. First is the smaller settlements/making it up in volume technique. While its initial lawsuits against coffee shops and restaurants did focus on the central corporations, with the hotels, Innovatio appears to be focusing on individual franchisees. Yes, the small businesses who own individual hotels and probably have no idea how to deal with a patent infringement lawsuit -- all because they dared to offer WiFi somewhere in their hotels. To make it "easy" of course, Innovatio's lawyers will let them settle for between $2,300 and $5,000. In almost every case, that's going to be cheaper than hiring a lawyer to just get started dealing with this -- which I'm sure is exactly what Innovatio intends.
The company is represented by the infamous law firm of Niro, Haller & Niro, which is the firm that originally inspired the term "patent troll." The lawyer representing the company, Matthew McAndrews, seems to imply that the company believes the patents cover everyone who has a home WiFi setup, but they don't plan to go after such folks right now, for "strategic" reasons:
"Innovatio has made a strategic and business judgment at this stage that it doesn’t intend to pursue [lawsuits on the basis of] residential use of WiFi," McAndrews said during a phone conversation last week.And while that certainly could change, you may be relieved (or probably not) to learn that McAndrews does not "perceive" such a "strategic" decision will change. However, later in the article, he seems to indicate otherwise:
Ultimately, he said, Innovatio’s "plan is to license this portfolio to the fullest extent possible. That would include anyone who's wireless networking."And then there's this:
"We want you to continue to use this technology, we just want our client to get his due share,” McAndrews said. “This is not a seat-of-the-pants, fly-by-night shakedown."I guess he means this is a well-planned, well-financed shakedown that's going to stick around for a while. Lovely.
At least there is some firepower arguing against Innovatio. After its first round of lawsuits, Motorola and Cisco went to court, asking for a declaratory judgment that its WiFi products do not infringe... and that Innovatio's patents are invalid. Hopefully that comes to pass or WiFi may get a hell of a lot more expensive.
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one reason only.
the trailing n along with the rest of the reasons are of no regard.
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There, fixed that for you.
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The WiFi Alliance
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crazy system
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Re:
http://www.techdirt.com/articles/20081107/0118162765.shtml
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Suing wrong people
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Re: Re:
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Re: Suing wrong people
Given the situation...them holding that patent too wouldn't surprise me.
Some things in the world apparently get a little more ridiculous every day.
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I don't understand
As bad as patent law is... it would be 1000x worse if end users were somehow liable... imagine there's a patent dispute over a car and then everyone who has that car is now liable? That can't be right
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Hold on...
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Re: Re: Suing wrong people
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Re: crazy system
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Re: I don't understand
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Re: Re: Re:
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Thoughts....
A legal system that permits this type of predatory/parasitic behavior is way overdue for a make-over!
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What about the courts?
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That's it. Time to switch back to token ring.
IP laws in this country suck.
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Wouldn't Hold...
Not just that, but this may also be the wake-up call that senators need to get some actual patent reform through. But only after they're dragged through this crappy process.
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Might be the perfect wakeup call
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Paying off patent trolls
Send them a blank check. Tell them to make it out to themselves and I'll sign it.
Won't tell them the account's been closed for 10 years.
That'll teach 'em!
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Misread
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Re: Paying off patent trolls
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Re: Misread
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Like that fable about a rich man staying at the hotel in the village, he pays the clerk. The clerk goes and pays the maid, the maid goes and pays the grocer, the grocer pays the delivery boy, the delivery boy pays the repairman, the repairman pays the clerk. The rich man then decides he won't be staying and takes his money back. Everyone was paid back, but the net change was nothing.
And some people still wonder why some of us keep calling it Imaginary Property.
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Re:
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Re:
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They should sue the courthouses
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POLL: Should this patent owner be rewarded?
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Re: Re: crazy system
But, not all scenarios are well suited for the UCC, which deals mostly with goods. IN most cases, software and services are out the window.
More importantly, though, users often agree to waive an indemnification obligation. This is usually part of the sales contract or license agreement. When pressed, many vendors will agree to accept indemnification obligations.
However, the real reason most end users are not sued for patent infringement is because their individual infringement is incredibly small so the damages are very limited. That does always stop a patent holder who might be seeking some leverage over a deeper pocket.
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Re: I don't understand
So if the company that sold you the WiFi box paid for a license on your behalf, you're in the clear. If they didn't, you're not. In principle, the patent holder can sue both you and the company who sold you the WiFi router.
Given that these patents hadn't been enforced in the past, it's unlikely that your WiFi vendor purchased a license for you. So yes, you are probably liable, if the patents are upheld.
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Tomorrows headlines
....innovatio ip sues apple and amazon for wifi enabled devices.
....Small African village sued for for having wifi
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Dog gone it!
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Re: Re: I don't understand
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"Patent Troll Says Anyone Using WiFi Infringes"
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Re: "Patent Troll Says Anyone Using WiFi Infringes"
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Re: Re:
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More attorneys need to flat fee this
Some attorneys (including myself) will represent folks in cases like this pro bono, and maybe that is what needs to happen. The problem is the attorney needs to be able to take the time to do it right. That can be hard to do.
The thing is, if an attorney can get in and play some defense and stall it until the big players, Cisco et cetera, get the patents invalidated (or at least narrowed) then it could save a lot of folks the settlement fees.
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This is awesome news!
The more patents inconvenience the average Joe, the closer we move to reform (or even better, abolition) of the patent system.
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CSIRO
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Re: Re: "Patent Troll Says Anyone Using WiFi Infringes"
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lol
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Re: Re: Re: crazy system
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Re: Re: crazy system
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Re: I don't understand
The theory is that if processes are patentable, and you patent the process of sending wireless IP packets, an end user is using that process in the course of their business, hence they need a license. I disagree but I can see how one could come to that conclusion. I disagree because in this scenario, each use of the patented process gets paid for multiple times. What if a businessman stays at the hotel. Is he liable for his usage of that wifi device because he used it to generate revenue? I still don't see how non-commercial users could possible be liable.
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Re: They should sue the courthouses
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Response to: Rex Mitchell on Oct 3rd, 2011 @ 11:49am
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Re: Patenting Patent trolling
See US Patent application 20070244837, October 18, 2007 (filed April 3, 2007)
SYSTEM AND METHOD FOR EXTRACTING VALUE FROM A PORTFOLIO OF ASSETS
http://j.mp/mRmPQg [uspto.gov]
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Re: IP laws suck
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Re: Re: Re: Re: crazy system
More seriously, that's not really case in most jurisdictions that don't see the sale of a software license as the sale of a "good." This issue is all but alleviated when you realize that most software licenses negate any protective features of the UCC even in those jurisdictions that would offer UCC protection.
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Sounds like a job for...
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A fortune in tiny settlements...
[According to Uncle John's Bathroom Reader, The World's Gone Crazy:] "To demonstrate flaws in the patent system, in 2001 an Australian lawyer patented the wheel." There's a *lot* of folks using the wheel. There'd be a lot of tiny settlements flowing from that, enough to make a troll incredibly wealthy.
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Trolls give Lawyers a Bad Name
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Re: Suing wrong people
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Thank you Sir Issac Newton
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loophole?
-99.9% of lawyers give the profession a bad name.
-How do you know if it's cold watching a lawyer? It's the only time when they keep their hands in their own pockets.
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Thank you Sir Issac Newton
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HAHAHA
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Re: Re: Re:
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Re: Might be the perfect wakeup call
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Pay Me All Your Money Now
I have a patent on breathing. If you do not have a license from me you must cease and desist from breathing. I have a court injunction.
I have a patent on intestinal absorbtion of water. You must stop drinking liquids immediately, unless you have a license.
I am God.
You should drag me from my house and kill me and all my heirs. Immediately. Problem solved.
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Re: Re: I don't understand
The reason it has never happened is because it's easy to make the case that the IP owner forfeited their right by failing to license the technology or sell it themselves, or file a case of IP infringement, for so many years.
Also, I Am Not A Lawyer.
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Random Act of Stupidity
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Re: Re: I don't understand
I think the doctrine of patent exhaustion says otherwise. Unless you have corrections (with references of course) to the Wikipedia article.
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Can't even find words
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Re: Wouldn't Hold...
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Sounds similar to.....
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RE: Wifi Troll
Maybe they should go after Innovatio IP, give them a taste of their own medicine.
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Sounds like someone's trying to control how someone can use something
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another biased article
Call it what you will...patent hoarder, patent troll, non-practicing entity, etc. It all means one thing: “we’re using your invention and we’re not going to pay”. This is just dissembling by large infringers to kill any inventor support system. It is purely about legalizing theft.
Prior to eBay v Mercexchange, small entities had a viable chance at commercializing their inventions. If the defendant was found guilty, an injunction was most always issued. Then the inventor small entity could enjoy the exclusive use of his invention in commercializing it. Unfortunately, injunctions are often no longer available to small entity inventors because of the Supreme Court decision so we have no fair chance to compete with much larger entities who are now free to use our inventions. Essentially, large infringers now have your gun and all the bullets. Worse yet, inability to commercialize means those same small entities will not be hiring new employees to roll out their products and services. And now some of those same parties who killed injunctions for small entities and thus blocked their chance at commercializing now complain that small entity inventors are not commercializing. They created the problem and now they want to blame small entities for it. What dissembling! If you don’t like this state of affairs (your unemployment is running out), tell your Congress member. Then maybe we can get some sense back in the patent system with injunctions fully enforceable on all infringers by all inventors, large and small.
For the truth about trolls, please see http://truereform.piausa.org/default.html#pt.
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Get rid of this guy Masnick
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Re: Get rid of this guy Masnick
A patent troll is someone who holds a patent and uses it to sue people, but doesn't have any product based on that patent. If you're trying to sell something based on the patent, you're not a troll.
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The Amish life is looking appealing. Although I'm pretty sure someone has a patent on the horse and cart.
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Re:
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Re: Re: Might be the perfect wakeup call
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kirana sop bahlaki
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Ok that's funny
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pos patent trolls
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Cloud Based POS Requires Wifi
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