Apple accused of feeding intellectual property to patent troll
According to a new report, Apple has transferred some of its patents to patent-licensing firm Digitude Innovations, prompting accusations that the company is aiding a so-called "patent troll."
Digitude Innovations filed suit against a slew of tech giants this week, including Research in Motion, HTC, LG, Motorola, Samsung, Sony, Amazon and Nokia. Apple was noticeably absent from the list.
Further investigation by TechCrunch revealed that two of the patents wielded in the lawsuit had belonged to Apple earlier this year. The report noted that documents had been uncovered confirming a license agreement between Apple and Digitude, though the actual details of the agreement were not available to the public.
Apple apparently transferred a dozen patents to a shell company, called Cliff Island LLC, earlier this year. Though little information was available on Cliff Island, report author Jason Kincaid was able to ascertain that the company's address is the same as Digitude investor Altitude Capital. Cliff Island subsequently transferred the patents to Digitude.
A Forbes report from June noted that Digitude Innovations was "put together" by Altitude founder Robert Kramer. Altitude then went on to invest $50 million for the purpose of purchasing consumer electronics patents that would be used to sue big tech companies.
At the time, Kramer said he had "reached out to many of our prospective customers to encourage them to become early strategic licensees," while a formal licensing program was set to launch in the fourth quarter. Kramer also noted that Digitude is utilizing a new investment strategy of allowing investors to contribute patents instead of money. Participating companies would then receive a license for all of the firm's patents.
Given that Digitude is in the business of acquiring patents to sue others, the company has been labeled a "patent troll." However, Kramer asserts that he is a financial investor with legitimate claims.
Though it's not completely clear whether Apple has entered into a more formal agreement with Digitude beyond a licensing agreement, Kincaid offered several plausible scenarios for its relationship with the company. According to him, Apple could be using Digitude as a "hired gun" in its patent battles. However, he did point out that Apple not hesitated to sue its competitors outright when it felt its intellectual property was being infringed on.
Alternatively, Apple may have traded its patents to Digitude as part of a settlement. Kincaid noted that this scenario "seems more likely," while noting that it was hard to see Apple in a "positive light" if that was the case.
"The idea that the company didn?t have any options other than handing over valuable patents to a patent troll ? knowing full well that it would then use those patents to sue other tech companies ? seems ludicrous," he wrote.
Also worth noting is the fact that Apple, with $81 billion in the bank, is by no means strapped for cash.
The patent troll issue became a hot topic for debate earlier this year when non-practicing entity Lodsys went after a number of independent iOS and Android developers over an patent related to in-app purchasing. Apple has asked the court to allow it to intervene on behalf of the developers in the suit. The iPhone maker has asserted that iOS developers are covered under its pre-existing license with Lodsys.
Apple rival Google has been vociferous in its complaints about the current patent system. In August, David Drummond, the company's chief legal officer accused Apple and Microsoft of "banding together" to use patents to attack its Android operating system.
"Patents were meant to encourage innovation, but lately they are being used as a weapon to stop it," Drummond wrote.
Google has also said that "anticompetitive" patent lawsuits from Apple and Microsoft against Android vendors had forced the company into purchasing Motorola Mobility for $12.5 billion. The handset maker has nearly 17,000 issued patents and more than 7,000 filed patent applications.
Digitude Innovations filed suit against a slew of tech giants this week, including Research in Motion, HTC, LG, Motorola, Samsung, Sony, Amazon and Nokia. Apple was noticeably absent from the list.
Further investigation by TechCrunch revealed that two of the patents wielded in the lawsuit had belonged to Apple earlier this year. The report noted that documents had been uncovered confirming a license agreement between Apple and Digitude, though the actual details of the agreement were not available to the public.
Apple apparently transferred a dozen patents to a shell company, called Cliff Island LLC, earlier this year. Though little information was available on Cliff Island, report author Jason Kincaid was able to ascertain that the company's address is the same as Digitude investor Altitude Capital. Cliff Island subsequently transferred the patents to Digitude.
A Forbes report from June noted that Digitude Innovations was "put together" by Altitude founder Robert Kramer. Altitude then went on to invest $50 million for the purpose of purchasing consumer electronics patents that would be used to sue big tech companies.
At the time, Kramer said he had "reached out to many of our prospective customers to encourage them to become early strategic licensees," while a formal licensing program was set to launch in the fourth quarter. Kramer also noted that Digitude is utilizing a new investment strategy of allowing investors to contribute patents instead of money. Participating companies would then receive a license for all of the firm's patents.
Given that Digitude is in the business of acquiring patents to sue others, the company has been labeled a "patent troll." However, Kramer asserts that he is a financial investor with legitimate claims.
Though it's not completely clear whether Apple has entered into a more formal agreement with Digitude beyond a licensing agreement, Kincaid offered several plausible scenarios for its relationship with the company. According to him, Apple could be using Digitude as a "hired gun" in its patent battles. However, he did point out that Apple not hesitated to sue its competitors outright when it felt its intellectual property was being infringed on.
Alternatively, Apple may have traded its patents to Digitude as part of a settlement. Kincaid noted that this scenario "seems more likely," while noting that it was hard to see Apple in a "positive light" if that was the case.
"The idea that the company didn?t have any options other than handing over valuable patents to a patent troll ? knowing full well that it would then use those patents to sue other tech companies ? seems ludicrous," he wrote.
Also worth noting is the fact that Apple, with $81 billion in the bank, is by no means strapped for cash.
The patent troll issue became a hot topic for debate earlier this year when non-practicing entity Lodsys went after a number of independent iOS and Android developers over an patent related to in-app purchasing. Apple has asked the court to allow it to intervene on behalf of the developers in the suit. The iPhone maker has asserted that iOS developers are covered under its pre-existing license with Lodsys.
Apple rival Google has been vociferous in its complaints about the current patent system. In August, David Drummond, the company's chief legal officer accused Apple and Microsoft of "banding together" to use patents to attack its Android operating system.
"Patents were meant to encourage innovation, but lately they are being used as a weapon to stop it," Drummond wrote.
Google has also said that "anticompetitive" patent lawsuits from Apple and Microsoft against Android vendors had forced the company into purchasing Motorola Mobility for $12.5 billion. The handset maker has nearly 17,000 issued patents and more than 7,000 filed patent applications.
Comments
Very disappointing that Apple have chosen to engage in such acts.
Did they really transfer the patents to the troll and ripping off others patents which is a norm with google is legal?
Did patent related suits really kill off innovations or ripping off others invention really killing off innovation.
I guess this justifies what Intellectual Ventures/Lodsys have been up to.
Very disappointing that Apple have chosen to engage in such acts.
Very disappointing to have people judging something without all the facts.
Very disappointing to have people judging something without all the facts.
Ironic statement of the century
Very disappointing to have people judging something without all the facts.
If you can refute anything reported by all means do so and change my judgement (judgement isn't finite and peoples opinions can change).
Are you wishing for me to wait for "all the facts" before passing judgement because it's regarding Apple or because it's the right thing to do?
I wonder where the people were who cry for "all the facts" were when the carrierIQ story recently blew up lately?
This "all the facts" policy could also be applied to: Antennagate, Smaung vs Apple patent cases, PSN Network hack e.t.c
How can anybody whine about this? Why do these people insist that Apple brings a knife to a gun fight?
How is this any different than Google buying Motorola and then giving some patents to HTC, which they then use to sue Apple with?
Google gives HTC patents so it can sue Apple
http://www.telegraph.co.uk/finance/n...sue-Apple.html
As long as it's legal, then I say good for Apple! Apple should use every method that they can to crush it's enemies. Apple should make friends with every patent troll in the world and then band together to sue the hell out of everybody, while Apple is protected.
If true, then this is great news!
How can anybody whine about this? Why do these people insist that Apple brings a knife to a gun fight?
How is this any different than Google buying Motorola and then giving some patents to HTC, which they then use to sue Apple with?
Google gives HTC patents so it can sue Apple
http://www.telegraph.co.uk/finance/n...sue-Apple.html
As long as it's legal, then I say good for Apple! Apple should use every method that they can to crush it's enemies. Apple should make friends with every patent troll in the world and then band together to sue the hell out of everybody, while Apple is protected.
What's the difference?
HTC = not patent troll.
Digitude = patent troll.
The fact that Apple is trying to get back at Lodsys for exactly the same behavior is quite telling.
I guess you're in support of Lodsys attacking developers that bolster iOS and Apple's platform?
Ironic statement of the century
Amen to that.
What's the difference?
HTC = not patent troll.
Digitude = patent troll.
The fact that Apple is trying to get back at Lodsys for exactly the same behavior is quite telling.
I guess you're in support of Lodsys attacking developers that bolster iOS and Apple's platform?
I'm not taking a side on this issue because I'm unclear on what's actually going on, but with regards to the Lodsys issue, their efforts to attack the iOS and Android developers was not inappropriate because they were a patent troll but because their claim to require licensing fees from those developers is disputed - Apple & Google maintain that their 3rd Party Developers are covered by the licensing agreements already in place between Lodsys and Apple & Google
If true, then this is great news!
How can anybody whine about this? Why do these people insist that Apple brings a knife to a gun fight?
How is this any different than Google buying Motorola and then giving some patents to HTC, which they then use to sue Apple with?
Google gives HTC patents so it can sue Apple
http://www.telegraph.co.uk/finance/n...sue-Apple.html
As long as it's legal, then I say good for Apple! Apple should use every method that they can to crush it's enemies. Apple should make friends with every patent troll in the world and then band together to sue the hell out of everybody, while Apple is protected.
Google, Motorola, and HTC all manufacture product, Digitude does not. They are a patent troll in every sense of the term, and Apple set them in motion.
Google, Motorola, and HTC all manufacture product, Digitude does not. They are a patent troll in every sense of the term, and Apple set them in motion.
Is it illegal to be a patent troll? I don't think so. I wouldn't mind being a patent troll if I held many patents. The legality of some of the products that certain companies make is also in question, as they infringe upon other people's intellectual rights, so I don't think that makes them any better than a so-called patent troll.
Is it illegal to be a patent troll? I don't think so. I wouldn't mind being a patent troll if I held many patents. The legality of some of the products that certain companies make is also in question, as they infringe upon other people's intellectual rights, so I don't think that makes them any better than a so-called patent troll.
I totally agreed! Who says Apple has to play nice when everyone else plays dirty. Who says Apple has to be "politically correct" all the time. It's time for Apple to behave like a Microsoft or a Google. Yeah, I say bring it on!
If true, then this is great news!
How can anybody whine about this? Why do these people insist that Apple brings a knife to a gun fight?
How is this any different than Google buying Motorola and then giving some patents to HTC, which they then use to sue Apple with?
Google gives HTC patents so it can sue Apple
http://www.telegraph.co.uk/finance/n...sue-Apple.html
As long as it's legal, then I say good for Apple! Apple should use every method that they can to crush it's enemies. Apple should make friends with every patent troll in the world and then band together to sue the hell out of everybody, while Apple is protected.
I agree. I found the article amusing. It's good to see Apple playing as dirty as the leeches.
I totally agreed! Who says Apple has to play nice when everyone else plays dirty. Who says Apple has to be "politically correct" all the time. It's time for Apple to behave like a Microsoft or a Google. Yeah, I say bring it on!
'Cry "Havoc!" and let slip the dogs of war, That this foul deed shall smell above the earth.'
- "Julius Caesar," William Shakespeare, Act 3, Scene 1
Apple is just using someone else's dogs.
Google has also said that "anticompetitive" patent lawsuits from Apple and Microsoft against Android vendors had forced the company into purchasing Motorola Mobility for $12.5 billion. The handset maker has nearly 17,000 issued patents and more than 7,000 filed patent applications.
[ View this article at AppleInsider.com ]
Didn't Google purchased Motorola Mobility (for $12.5 billion) to prevent "anticompetitive" patent lawsuits from Motorola Mobility against the other Android venders? MM was bleeding a lot of cash while the other Android venders were making a ton on money selling Android phones that was using patents from MM. It was MM that was going to become a "patent troll" if Google didn't step up and purchased them for way, way more than what they're worth.
HTC = not patent troll.
So how are the S3 Graphics cards that HTC is presumably going to use in their phones working out?
HTC = patent troll