Rackspace is being sued over its Rackspace Cloud Notes app for iOS, in a lawsuit that also includes claims again several other Texas companies, including Petroleum Geo-Services, PlainsCapital Bank, Texas Instruments, Schlumberger Technologies, and energy giant TXU. All of those companies have iOS apps which, apparently, rotate their screens.
via Rackspace goes on offense against second patent troll in two weeks | Ars Technica.
Rackspace’s dispute is with an IP Nav unit called Parallel Iron, which says it has three patents that cover the open source Hadoop Distributed File System (HDFS). But remarkably, Rackspace didn’t even know that at first; IP Nav contacted Rackspace and told the company it infringed some patents while refusing to even reveal the numbers or the owners of the patents, unless Rackspace signed a “forbearance agreement” to not sue first. (Sometimes companies threatened by patent trolls can file a “declaratory judgment” lawsuit, which can help them win a more favorable venue.)
via Rackspace sues “most notorious patent troll in America” | Ars Technica.
Uniloc USA, Inc. filed the complaint against Rackspace in June 2012 in federal court in the Eastern District of Texas. The complaint alleged that the processing of floating point numbers by the Linux operating system violated U.S. Patent 5,892,697. Rackspace and Red Hat immediately moved to dismiss the case prior to filing an answer. In dismissing the case, Chief Judge Leonard Davis found that Uniloc’s claim was unpatentable under Supreme Court case law that prohibits the patenting of mathematical algorithms. This is the first reported instance in which the Eastern District of Texas has granted an early motion to dismiss finding a patent invalid because it claimed unpatentable subject matter. In the ruling released today, Judge Davis wrote that the asserted claim “is a mathematical formula that is unpatentable under Section 101.”
via Rackspace, Red Hat Win Decisive Patent Victory (NYSE:RHT).
VirnetX sued Cisco, Apple, NEC and others back in 2010, and it won over $368 million from Apple earlier this year. It also has separate litigation pending against Apple and Mitel Networks.
via Cisco beats patent holder VirnetX, which sought $258 million over VPN patent | Ars Technica.
Few, if any, of the defendants make their own mapping software. Move.com, for instance, uses maps provided by Microsoft’s Bing. But patent laws allow a patent-holder to sue anyone who makes, sells, or uses a patented item. In this case, it’s the real estate companies, together with their users, who are alleged to be “jointly infringing” the patent.
via Gone house hunting online? Revived patent lawsuit says you’re a “joint infringer” | Ars Technica.
Innovatio deliberately avoided targeting the actual manufacturers of Wi-Fi equipment, preferring to sue end-users. But in October, Cisco, Netgear, and Motorola teamed up to file an 81-page lawsuit [PDF] seeking to shut down Innovatio’s patent-trolling project once and for all. Not only were the patents invalid, but the suit alleged Innovatio’s whole campaign was a violation of the RICO anti-racketeering law. That law is more commonly used against crime families than patent holders.
via Wi-Fi patent troll hit with racketeering suit emerges unscathed | Ars Technica.
Soverain isn’t in the e-commerce business; it’s in the higher-margin business of filing patent lawsuits against e-commerce companies. And it has been quite successful until now. The company’s plan to extract a patent tax of about one percent of revenue from a huge swath of online retailers was snuffed out last week by Newegg and its lawyers, who won an appeal ruling [PDF] that invalidates the three patents Soverain used to spark a vast patent war.
via How Newegg crushed the “shopping cart” patent and saved online retail | Ars Technica.
The first patent troll story of the new year. I like Newegg. If I didn’t live so close to a brick and mortar Microcenter I’d probably use them a lot.
Vicinanza soon got in touch with the attorney representing Project Paperless: Steven Hill, a partner at Hill, Kertscher & Wharton, an Atlanta law firm.
“[Hill] was very cordial and very nice,” he told Ars. “He said, if you hook up a scanner and e-mail a PDF document—we have a patent that covers that as a process.”
via Patent trolls want $1,000—for using scanners | Ars Technica.
Smaller and smaller companies are being targeted. In a paper on “Startups and Patent Trolls,” Prof. Colleen Chien of Santa Clara University found that 55 percent of defendants to patent troll suits are small, with less than $10 million in annual revenue. Even in the tech sector, a full 40 percent of the time, respondents to patent threats are being sued over technology that they use (like scanners or Wi-Fi) rather than their own technology.
From: http://stop-project-paperless.com/
Drew Curtis, CEO of Fark.com was sued for infringing on a patent that claimed to cover sending press releases out via email. He made a short five minute video describing how he beat them. You can find here: http://on.ted.com/Bxwq
If anything illustrates the absurdity of the current state of affairs in the patent system, it is that the smartphone handset market — although booming — accounts for less than 1% of the U.S. annual GDP (by U.S. sales) but encompasses 16% of all active U.S. patents.***
via One in Six Active U.S. Patents Pertain to the Smartphone.
To put the absurdity of the current system into perspective, scholars Christina Mulligan and Timothy B. Lee estimated that it would take roughly 2,000,000 patent attorneys working full-time to compare every software-producing firm’s products with every software patent issued in a given year.
A new study helps to fill the gap by providing systematic data on the growth of patent troll litigation. Robin Feldman, a professor at UC Hastings College of Law, teamed up with Lex Machina, a Stanford Law spinoff that collects data on patent litigation, to compile a systematic survey of patent litigation. Their results are striking: the fraction of lawsuits filed by troll-like entities grew from 22 percent in 2007 to 40 percent in 2011.
via Trolls filed 40% of patent infringement lawsuits in 2011 | Ars Technica.