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PatentShield helps startups fight patent litigation in return for equity

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Re: PatentShield helps startups fight patent litigation in return for equity

#61

Post by brudgers »

jezclaremurugan wrote: post #8
jacquesm wrote: post #5

Google is taking a leaf out of the Mafia playbook here. Classy. Nice start-up you have there. Would be a shame if one of these pesky trolls sued you. But if you join our organization as a partner you will be protected.

I think there is a distinction here - the Mafia protects people from itself - but Google doesn't itself sue startups.

Google has the patent portfolio to do so. Currently it is monetizing that portfolio by offering protection for vigorish. There is no law that prevents Google from providing an object lesson that demonstrates the wisdom of startups paying proper respect.

This is a new line of B2B rent seeking. It is not a not for profit foundation endowed with the patent portfolio and funds sufficient to operate off investment returns. It's a tax on the startup ecosystem.

Re: PatentShield helps startups fight patent litigation in return for equity

#62

Post by pmontra »

caf wrote: post #11
jacquesm wrote: post #9

Earlier quoted context omitted.

But the upside is similar: If nobody sues Google still has the equity and Google needs the trolls to stay around to make sure people will buy into this program.

Sure, but that's exactly the case with commercial fire insurance versus actual protection rackets too.

Google could lobby to end software patents. Insurance companies can do little to end fire.

Re: PatentShield helps startups fight patent litigation in return for equity

#63

Post by brudgers »

jacquesm wrote: post #12
caf wrote: post #11

Earlier quoted context omitted.

Sure, but that's exactly the case with commercial fire insurance versus actual protection rackets too.

Commercial fire insurance does not typically take equity in the places they insure.

Fire insurance companies are not in a position to legally set fire to the buildings of those who refuse their services either. Here Google's scheme is monitizing its patent portfolio. Currently, the calculation is that this racket provides a better ROI than hiring lawyers and suing. There's still money on the monitize patents table.

Re: PatentShield helps startups fight patent litigation in return for equity

#64

Post by esquivalience »

nl wrote: post #56
parhurs wrote: post #48

Earlier quoted context omitted.

Ars Technica reported last year that in 2015 over two thirds of patent lawsuits were filed by trolls and that of all patent lawsuits, 44% were filed in the Eastern District of Texas (where few others than trolls would be filing suits). The report says that although the numbers are up, the trolls' business might be down. Ars: https://arstechnica.com/tech-policy/2016/01/despite-law-chan... Original statistic: https://w…

This is strange. The total number of cases seems to line up between the two reports (5700 in 2015, not including PTAB). But only 2281 cases involving NPEs were decided between 1996 and 2015[1]. If 66% are filed by NPEs, then this should be much more. Unless the vast majority are dropped I guess? [1] https://www.pwc.com/us/en/forensic-services/publications/ass... , page 16

Yes. Cases issued will not correspond to cases decided, since many cases settle. And there is a long time-lag from starting a case to ending it with a judgment.

Re: PatentShield helps startups fight patent litigation in return for equity

#65

Post by EGreg »

bdowling wrote: post #45
EGreg wrote: post #30

Why don't we have something like the open source movement in drugs? Using PATENTLEFT. All those possible inventions for the long tail if people were allowed to build on top of existing discoveries.

It's unnecessary. If you want to prevent something from being patented, just disclose it in a publication. That publication will bar anyone else from patenting your invention. As long as you don't patent it yourself, it will become dedicated to the public.

Patentleft is more like Free Software than Open Source.

It says if you use our patents, you must open up your own patents to be used in the same way.

Re: PatentShield helps startups fight patent litigation in return for equity

#66

Post by cakeface »

This sounds totally like a squeeze. Google is telling startups "Cut us in if you want to play in this game." I like that they're cutting the lawyers out of the picture though. Instead of waiting till the company gets big, suing, and then getting their take they can now just collect up front and save time and lawyer fees.

Re: PatentShield helps startups fight patent litigation in return for equity

#67

Post by ocdtrekkie »

joelthelion wrote: post #37

When you need this I think we can safely say the patent system is broken beyond repair. This is basically extortion (note that I'm not blaming Google!).

Why are you not blaming Google? If Google was not trying to extort patents for profit, they could permit everyone free access to their patents. They have chosen not to do so. (Their patent pledge includes a tiny portion of their patents which are not substantial in any common patent litigation. Now we know why.)

Google has purchased an incredible number of patents, and is now leveraging them for profit. They are not in a morally higher ground than Intellectual Ventures if they continue with this service.

Re: PatentShield helps startups fight patent litigation in return for equity

#69

Post by ohyeshedid »

caf wrote: post #27
jacquesm wrote: post #26

Earlier quoted context omitted.

Yes, because obviously if that equity turns out to be worth a very large amount of money and the company is never sued Google is not going to turn around and say 'oh, sorry for this vastly disproportionate payment, here is your repayment'. In fact, the best outcome for Google would be if nobody ever got sued. (That's also the best outcome for the companies but there is no way of knowing if they would have gotten sued…

How is that different to "You paid an awful lot of fire insurance premiums over the years but never had a fire" ? The insurance company certainly isn't giving you a refund either. It seems to me that if the equity turns out to be worth a lot, then the value of the protection is greater as well - the potential losses are likely to pretty closely track the company's value.

>How is that different to "You paid an awful lot of fire >insurance premiums over the years but never had a fire"?

The difference is that you aren't paying your fire insurance premiums with partial ownership of your house.

Re: PatentShield helps startups fight patent litigation in return for equity

#70

Post by Nomentatus »

bdowling wrote: post #45
EGreg wrote: post #30

Why don't we have something like the open source movement in drugs? Using PATENTLEFT. All those possible inventions for the long tail if people were allowed to build on top of existing discoveries.

It's unnecessary. If you want to prevent something from being patented, just disclose it in a publication. That publication will bar anyone else from patenting your invention. As long as you don't patent it yourself, it will become dedicated to the public.

Not true anymore, unless that publication reaches the vast majority of practioners so that it has clearly become part of the normal state of the art (recent court decision) - something very difficult for a private citizen to accomplish. Mere publication to establish priority doesn't matter because priority doesn't matter, being first to the patent office matters; so big companies can legally steal your ideas now. Even if you've published them, in most cases. They make large donations to Congresspeople - you don't.
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