Bundle of Sticks

December 14, 2005

Mecha-Know21 Project

Filed under: Copyright

There was a news about Mecha-Know 21 project in Gyung Sang Nam Do (GSND) province in Korea.  Source here.
 
Mecha-Know 21 (link here.  No english site is provided.  Too bad.) is said to be the project of converting the province’s mechanical engineering industry into a knowledge-based industry.  What it does isn’t quite clear from the article but it seems the province selected about 200 technology R&D projects, supported the projects financially or otherwise, and helped put the results into production.  GSND is reported to have spent about $420 million from 2000 to 2004 and have acquired 440 intellectual property rights, of which 103 are patents, 191 pending patent applications, and 146 utility models.  Source here.

The economic effect looks sizeable.  GSND will continue to spend as much resources.  

GSND has been the center of mechanical engineering of Korea for decades.  Changing its mechanical industry base into a knowledge industry base is a concept proposed by the former president Kim Dae Jung.  We will see how this project goes.  

Linking my previous post on patent trolls, one interesting point is that Mecha-Know 21, presumably a government project, isn’t involved with production per se.  What it does seems to look more like financial and administrative assistance and IP management.  Doesn’t it look a little like what patent trolls do?  

Seriously, it may look like patent trolls.  If we adopt a law that prohibits owning and utilizing patents without actually producing something, we may have to shut down Mecha-Know21.

The eyes of the law do not know the color. (I think I heard something like this before but I can’t really remember the exact sentence.) 

Patent Trolls wreaking havoc on Small or Medium Businesses in Korea

Filed under: Patent
troll
Pronunciation (trol)
n.
A supernatural creature of Scandinavian folklore, variously portrayed as a friendly or mischievous dwarf or as a giant, that lives in caves, in the hills, or under bridges.
Source here


Patent trolls, as the term is generally accepted, are testing small and medium sized businesses in Korea. (Source article in Korean)  The news article introduces several instances in which small or medium companies producing MP3 players were urged by patent trolls (mostly from the U.S. and the EU) to license their patents and pay license fee.  

According to Wikipedia,

Patent troll (also “patent pirate”) is a derogatory phrase coined by former Intel assistant general counsel Peter Detkin in 2001. Originally, it described an individual or company with a patent portfolio containing important, fundamental software patents, which it never intended to commercialize. Instead, a “patent troll” would actively pursue a strategy of looking for potential infringers and proposing license agreements to companies. Where the patent troll is unable to achieve a licensing agreement, it threatens, or enters, patent infringement litigation. To avoid litigation, companies often choose to settle by purchasing a license. Today, “patent troll” is used to describe a number of businesses using similar patent strategies.
Source here.

As I understand, the key element that differentiates a patent troll from a “patent child” (trolls are believed to eat children) is whether the individual or corporation does a production activity based on the patents.  Hence, the battle between two terms: “Non-Producing Entities” v. ”Patent Trolls.”  

Joe Beyers, IP-licensing chief, Hewlett-Packard, says in his CNet.com article:

Intellectual Property Owners Association (IPO)’s definition of patent troll is “a company or business function whose primary business activity is to acquire patents for the purpose of offensively asserting them against other companies.”


I couldn’t read the definition from IPO’s website because it is subscription based.  You may check it out at http://www.ipo.org/  Yearly membership fee is around $200 give and take.  Indeed, they think they have intellectual property within their password protected website that they own where the associate with each other.  Hence, the name Intellectual Property Owners Association website.  

Other website introduces several patent trolls like Acacia, Myhrvold, Pat-Rights, Inc., TechSearch.  It also introduces famous corporte patent trolls.

    * Fritz Teufel, patent troll of IBM and Bitkom
    * Tim Frain, patent troll of Nokia and EICTA
    * Thierry Sueur, patent troll of Air Liquide, MEDEF and UNICE
    * Christian Nguyen, patent troll of Thales, MEDEF and UNICE
    * Harald Hagedorn, patent troll of SAP
    * Wilhelm von Lieres, patent troll of Siemens
    * Marshall Phelps, patent troll of Microsoft, formerly IBM


So, Joe Beyers and those who think it’s apt to call them “patent trolls” think patent legal system shouldn’t be abused by those who use patents to extort money from innocent producers while they themselves don’t produce anything.  

On the other hand, Nathan Myhrvold who can be said the leading figure in patent trolling (as in “troll”-ing and “trolling”) said that

There isn’t any hard data to support … .  This is a great example of people having a bunch of anecdotes…I don’t see that it’s wrong to invent without making products.
Source here.

It isn’t easy to refute Myhrvold’s argument.  The beauty of the current legal system is that a loophole, if there is any, is always exploited by some smarties and such exploitation always rises to such level as to invite modification to the law.  As of now, there clearly are problems of patent system in some technical industries.  

As Professor Peter D. Junger wrote on his blog:

Of late, however, the Supreme Court has evidenced an increased willingness to review decisions of the Federal Circuit in patent cases. When one couples that with the fact that there is more and more evidence these days that software patents impede rather than support the progress of science and the useful arts, I am almost willing to predict that within the next few years the Supreme Court will once again declare that claims in patent applications describing computer programs are not patentable and that therefore so-called software patents are not valid.

, it is very suspicious that the patent system is working properly in the computer software industry.  

One of the examples that illustrates the problem is the most recent Eolas v. Microsoft case. Read the overview of the case at Wikipedia entry of Eolas

The inventor of the World Wide Web and the Director of the W3 Consortium Sir Tim Berners-Lee wrote to Under Secretary of Commerce, asking to invalidate this patent, in order to “eliminate this major impediment to the operation of the Web”. In a remarkable turn of events, the leaders of Open Source Community sided with Microsoft in fighting the patent due to its threat to the free nature of the Web and to the basic established HTML standards. The specific concerns of having one company (Eolas) controlling a critical piece of the Web framework were cited.
Source here

It tells us something that the leaders of Open Source Community sided with Microsoft.  And think about how many electronic goods are made without a software pre-installed on them? Therefore, this is not an issue confined in the software industry   It expands all over to industries that utilize computer software.  

But again, how are we gonna stop patent trolls?  Do we want a law that prohibits using a patent for garnering  license fees without actually using the patent?  We should be reminded that there are a number of inventors, individual or corporate, who invent without intending to produce products themselves.  Are we gonna ban them altogether? nbsp;Or do we have somethng else?  

Email from IPLeft encouraging signature drive against Copyright Law Amendment

Filed under: Copyright

어제 IPLeft에서 보내온 이메일입니다.

“저작권법 개악반대! 네티즌 선언!” 캠페인을 시작합니다.

http://www.ipleft.or.kr/antilaw

http://www.ipleft.or.kr/antilaw

지난 12월 6일 오전 열린우리당 이광철 의원과 우상호 의원이 각각 대표 발의 한 저작권법 개정안이 문화관광위원회 상임위를 통과했습니다. 하지만 이 저 작권법 개정안에는 인터넷에서의 소통을 심각하게 제약하고, 합법적인 정보이 용행위조차 불가능하게 할 수 있는 위험한 조항들이 포함되어 있습니다. 특히 우상호의원이 발의한 저작권법 개정안에는 P2P서비스뿐만 아니라, 정보통신기 술의 발전에 부정적인 영향을 미치고, 또한 프라이버시와 표현의 자유 등 정 보인권을 심각히 침해할 수 있는 독소조항들이 포함되어 있습니다. 이 법안이 국회 본회의를 통과한다면, 정부에 의해 인터넷 검열되고, 합법적인 소통조차 철저히 제한될 수도 있습니다.

이 법안이 국회 본회의에서 통과되지 않도록 “저작권법 개악반대! 네티즌 선 언” 캠페인에 동참하여, 네티즌의 자유로운 인터넷 세상을 지켜냅시다.

자세한 사항은 http://www.ipleft.or.kr/antilaw 페이지를 참고해 주시길 바 랍니다.

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