Inventors look for cash, recognition at patent auction

SAN FRANCISCO--Mike Voticky is here because of a bad voice mail experience.

Years ago, Voticky was finishing up a trip from Europe when he decided to check his voice mail.

"I had 24 messages," he said. "I was pissed. I had to go through all of them to get to the last one from my wife."

During the plane ride home, he sketched out a patent for prioritizing messages through a database. He got the patent and is auctioning it off at Ocean Tomo's Spring 2008 IP Auction taking place here today. He thought about forming a company around the patent but hasn't had time.

When the average person hears the words "patent auction" they almost invariably think "patent troll." The common perception is that buyers are here to scoop up these patents and then file a raft of lawsuits against innocent, well-meaning corporations.

Not so, says Ocean Tomo CEO Jim Malackowski. The company has held several large live patent auctions starting in 2006 and so far only one--"maybe two"--lawsuits have emerged from patents sold at one of these auctions, he said. In most cases, the buyers incorporate the ideas inside the patent into their own IP portfolios or insulate themselves from possible claims. Still, he conceded that some buyers are "patent enforcement firms," which is the politically correct term for patent trolls. The auctions typically result in $8 million to $15 million in sales.

The bidding in the auctions is open--people hold paddles to bid and an auctioneer sounds out the tally--but everyone remains anonymous. This is one of the few corporate events where people do not have name tags. The buyers in most instances do not want to be identified, said Malackowski. Neither do those who come in second or third place. If they got identified, it might make it easier for the buyer to contact potential licensees.

Although the public seems to take a dim view of patents and the patent system these days, independent inventors say auctions represent an opportunity to finally make some money off their creations. Edward Hyman, for instance, is trying to auction off a patent for a silicon chip where functions are performed in individual computational cells--sort of like how an FPGA (field-programmable gate array) functions. The chip could be used in spacecraft and other rugged environments as a microcontroller. If one of the cells dies out, the task can be picked up by another cell.

The patent was issued in 1997, but Hyman hasn't had a ton of luck licensing it. One company was close to licensing it, but then they underwent a change in management and the deal fell through the cracks. Hyman is also a lone inventor, he added, so he doesn't have a permanent legal or marketing team to help.

Yongyong Xu, meanwhile, wants recognition. He has devised a communication patent that he believes is incorporated, without a proper license, in Ajax and peer-to-peer programming. He doesn't want to form a company around the patent because, he says, he's a technician at heart. (He filed the so-called Ajax patent in 1999, by the way.)

"To do IP is to be lonely. Patents are a way to get recognition," he said. Without patents, he added, "big companies will have everything."

[gary sayre]

patents

Patents are very expensive to get and remain out of reach for every day people like myself. I have a great Idea for a new internal combustion engine, with only two moving parts, yet allows over ninety percent of the power to transfer to the shaft or, Power Take Off. My last Idea I shared with a supposed reputable orgainazition was stolen from me because I did not have the 10,000.00 for a patent search. It is very tuff
to get a patent!!!!

[sanenazok]

$10K for a patent search??

Go to the patent office website and look through patents yourself. It's free, but boring I know. They have search tools and good help. I've done this myself with some of my own ideas to see what's out there patented and was very surprised.

When it comes to getting the patent itself, it's not the end of the world. Just read some of the registered patents - it's no brain surgery just sit in one place for a week or so to write up your invention. The patent office is even obligated to help inventors who file their own patents AND there are a couple paperbacks (available at your public library) about getting a patent by yourself. It's a matter of doing the work yourself or paying someone else to do it for you for $10k. Very few individuals, like myself, have that kind of money, but at least you should be passionate about your invention to actually want to do the leg work.

If someone stole your invention write a letter to the patent office, hopefully identifying the patent you're talking about and what you think they stole. At least your letter has a chance of coming up should the patent holders try and sue someone (which is unlikely since the vast majority of patents are useless).

[kwhittingham]

Patents don't protect the poor

After working in a reasearch lab for several years I am now very sceptic vis-a-vis patents. 1) Sure the idea is good - protect the small guys from the big guys but it works the other way around. Just look who owns all the patents. 2) Most inventions pushed through are not 'not-obvious', see the idea quoted in the article - *of course* its a good idea to jump to message 10! 3) Patents last too long. 5 years is just fine. 4) Most invented products rely 99% on public domain (open source) IP and 1% on the inventor's ideas. How ethical is that?

[daftkey]

The poor inventors work for the patent holders.

Or in other words "after working in a research lab for several years, I realize that the lab, and not the people working there, own the patent - and as a person working there and putting in the long hours, *I* should get the patent."

Of course, the reason that mostly universities, governments, and corporations own the patents is because they take the risks and front the money for research and development. Funny thing, when you're paid a salary or an hourly wage, guaranteed, on someone else's dime, that you wouldn't get the recognition - the risk-taker does.

Of course, it DID keep you, the little guy, employed for a while, didn't it?

[laptopburka]

Ideas and patents go hand in hand . If one has a marketable idea that is makeable and hasnt been done before then by all means file for a patent . More often than not you hear the story about the person who did not file or properly file for a patent and it was stolen. Do you have an idea ? Beleave in yourself first . Most people out there are followers not leaders of ideas . Stop being like the rest and follow your dream. If your not sure about how to do it contact the patent office they will help. If you really beleave in your idea pay for help it pays off.