New Patent Buying Firm Swears It'll Never Litigate Over Its Patents

from the until-it-needs-money...? dept

When Intellectual Ventures first came about, Nathan Myhrvold convinced tech companies to back him, with a business plan that was all about pooling resources to buy patents for defensive purposes. The original pitch was that by joining with IV, you could make use of the patent portfolio to protect yourself against potential patent lawsuits. Except that once things got going, Myhrvold admitted that to make this work, the threat of also suing people for patent infringement had to be on the table (though, it hasn't reached that point yet). So, consider me quite skeptical of some former IV execs who have gone off to start a new firm that sounds suspiciously like IV's original plan.

It involves getting a bunch of tech companies to pay up, so that this new company, RPX Corp., can buy up a bunch of patents "for defensive purposes only." The company insists it won't sue anyone with these patents. But, of course, the whole thing makes you wonder. For the companies that buy into RPX's deal (or IV's for that matter), they end up spending a bunch of money for a rather weak form of insurance that protects them in the very rare case where they might be able to use a patent in either firm's portfolio to maybe, possibly protect itself against an infringement lawsuit. It won't stop others from suing, of course. And, if RPX is serious about not suing for infringement, then why won't other firms just free ride? They get the benefit of those patents not being in litigious hands, but without having to pay. The whole situation just shows how ridiculous the patent litigation world is these days, that a bunch of companies feel the need to fund other companies to buy up patents just so they're not sued. That's not quite "promoting the progress."

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