patent

New bill approaches patent reform 'part and parcel'

There are many opposing viewpoints on the issue of patent reform, but at least one thing can be agreed upon: patent law is complicated.

Comprehensive patent reform will likely have to take a multifaceted approach, including reform of patent office procedures and the litigation process. A bill introduced this week, however, takes a focused approach to patent reform by aiming to make the subject less confusing for judges.

Rep. Adam Schiff (D-Calif.) and Rep. Darrell Issa (R-Calif.) reintroduced legislation this week that would start a 10-year pilot program to educate district judges on patent issues. Judges from courts that meet … Read more

Microsoft's struggle to compete with 'free'

Back in 2002, as Roy Schestowitz calls out, Microsoft was desperately trying to figure out a response to Linux. The problem wasn't Linux as a product-level competitor. The problem, as its Windows chief, Jim Allchin, told a small gathering of Microsoft partners (PDF), is that Linux changes the nature of software competition with odd things like "community" and "GPL licensing," the latter of which Microsoft didn't like one bit :

We feel a huge threat from Linux. Maybe we shouldn't, which is a question you could answer from your perspective...There's Linux the community. We're going to learn from Linux the community. Incredible what they did...We're going to practice and practice and practice (to learn how to respond to Linux)...

GPL is the licensing model. We thlnk it's very bad...We don't think it's the same as public domain. Somebody wants to put in a free DSB(?), we don't have a problem with that, at least on licensing. But GPL, we think it's very bad basically for the world, but especially for the United States.

This is not surprising, given that Allchin had earlier deprecated Linux as "an intellectual-property destroyer" in 2001.

But name-calling was proving not to be enough, and for a reason that Allchin and Microsoft struggled to grasp, but one that its partners, which distribute the bulk of Microsoft's software, felt first-hand on the front lines. When Allchin later asked the participants what the biggest driver of Linux is, they didn't mention its modularity, high performance, or other characteristics. Back in 2002 (and, indeed, today, in many instances), one thing mattered:

Linux was free.

Sure, there was the cost of deployment, training, etc., and Allchin called out the work Microsoft was going to do to "educate" the market through IDC and other analysts about the "true" costs of Linux, but price was why these Microsoft partners were starting to defect, in some instances, to Linux.

Allchin's response?

We'll never meet free."

And that is why Microsoft has struggled against open source, and why it will continue to do so. Ubuntu's Mark Shuttleworth called it out well over a year ago, arguing that the difference between $0.00 and $0.01 is huge and game changing. Microsoft can halve its price, and Allchin talks in the transcript about doing just that. But free? That's not its business model.

Given Microsoft's difficulty in competing with open source's price, it's perhaps not surprising that Allchin hinted at another way of competing with Linux and open source: patents. Imposing a patent tax on open source is a viable way of raising its price tag beyond $0.00.

There's going to be a patent lawsuit on Linux. It's bound to happen...and the patent lawsuit won't really be about the license. It will be simply, "Hey, these guys took intellectual property." And whether the lawsuit comes from Wind River or in X, Y, Z, there's going to be one. Guaranteed. As I sit here today, I will guarantee you at some point there's going to be a challenge about the patents...… Read more

AMD's $1.4 billion loss bigger than expected

Updated at 6:15 p.m. PST with AMD statement about a letter it received from Intel on January 20.

Advanced Micro Devices on Thursday reported a bigger-than-expected net loss of $1.4 billion for the fourth quarter of 2008. This is the chipmaker's ninth consecutive quarterly loss.

AMD also disclosed that it received a letter from Intel regarding the two companies' patent cross-licensing agreement.

The $1.42 billion loss, or $2.34 per share, was below the $1.77 billion loss, or $3.06 per share, reported a year ago but worse than Wall Street analysts had expected… Read more

Patent office rejects subdomain patent claims

Technology firms are often hampered by patent disputes, but the U.S. Patent and Trademark Office called into question last week a patent that had the potential to disrupt the habits of millions of Internet users.

The PTO rejected all 20 patent claims over Internet subdomains held by a company called Hoshiko, which were used to bully sites like LiveJournal and Freehomepage.com and pursue litigation against larger companies like Google. The idea behind how to manage subdomains--domains hosted within larger domains, such as news.cnet.com--is too obvious to patent, the PTO ruled after the nonprofit Electronic Frontier Foundation … Read more

HP focuses on patent quality, IBM on quantity

Microsoft may get a lot of grief for its patent strategy, but IBM carries the biggest patent portfolio by far. In fact, Big Blue has acquired more patents than any other company on the planet for the last 16 years running.

This is particularly interesting when you discover, as The Wall Street Journal recently did, that Hewlett-Packard, one of IBM's fiercest competitors, is actually slowing its patent applications. In HP's words, its emphasis now is on patent quality, not quantity:

HP was once trying to compete with IBM as the most prolific patent producer...But after Chief Executive … Read more

Patent wars: RealNetworks wins; Global Crossing pays up

This was originally posted at ZDNet's Between the Lines.

RealNetworks defeated a patent infringement suit that was trying to come back from the dead. Meanwhile, Global Crossing licensed a portfolio of call center patents from Ronald A. Katz Technology Licensing, an outfit that collects dough from a who's who of corporate America.

First, RealNetworks said Tuesday that it defeated an attempt by Friskit to revive a patent infringement suit that sought damages of $70 million. In a statement, RealNetworks outlined:

The Federal Circuit in Washington D.C. upheld a 2007 ruling in which Judge William W. Schwarzer of … Read more

Microsoft outlines pay-per-use PC vision

Microsoft has applied for a patent on metered, pay-as-you-go computing.

U.S. patent application number 20080319910, published on Christmas Day, details Microsoft's vision of a situation where a "standard model" of PC is given away or heavily subsidized by someone in the supply chain. The end user then pays to use the computer, with charges based on both the length of usage time and the performance levels utilized, along with a "one-time charge."

Microsoft notes in the application that the end user could end up paying more for the computer, compared with the one-off cost … Read more

Google, Microsoft, Apple sued over preview icons

This post was updated on January 5 and January 7 with corrected and updated information about the plaintiff company, an updated link to an amended filing, and a comment from Google. See bottom of post for correction.

An Arizona-based networking company on Wednesday filed a lawsuit against Google, Microsoft, and Apple, alleging that all three tech giants violated a patent it owns on the use of document-preview icons--or thumbnails--in operating systems.

In the suit, Cygnus Systems targets Google's Chrome, Microsoft's Vista and Internet Explorer 8, and Apple's iPhone, Safari, and Mac OS X as patent infringers. Apple … Read more

Apple files 'swipe-gesture' patent application

While children were nestled all snug in their beds, Apple apparently had visions of improved touch-screens in its innovative head.

The U.S. Patent and Trademark Office revealed a patent application from Apple, dated Christmas Day, for a swipe-gesture system to be used on touch-screen keyboards. It would allow a person to "perform certain functions using swipes across the key area rather than tapping particular keys," according to the patent application, authored by Wayne Westerman.

For example, the application explains that leftward, rightward, upward, and downward swipes might be assigned to inserting a space, backspacing, shifting, or inserting … Read more