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@ -193,7 +193,8 @@ Apple is similarly active in patent litigation against makers of Android devices
</p>
<p>
Additional patent-based activity directed against Android includes an amendment to a lawsuit by Interval Licensing, owned by Microsoft co-founder Paul Allen. "The amended suit targets Google’s Android mobile operating system in a move that could spell trouble for phone manufacturers and app developers."<a class="fn" href="#fn4">4</a>
Additional patent-based activity directed against Android includes an amendment to a lawsuit by Interval Licensing, owned by Microsoft co-founder Paul Allen. "The amended suit targets Google’s Android mobile operating system in a move that could spell trouble for phone manufacturers and app developers." (See <a href="http://www.2tu.us/3hs1">PCWorld</a>.)
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<p>
@ -212,7 +213,7 @@ While this may be feasible for some makers of high-end smartphones, paying this
<h2><a name="10"/>Further patent-based attacks: Lodsys vs app developers</h2>
<p>
Another long-standing fear held by software developers recently turned out to be all too real when Lodsys, a non-practicing entity, threatened lawsuits against a raft of iOS application developers in May 2011.<a class="fn" href="#fn5">5</a>
Another long-standing fear held by software developers recently turned out to be all too real when Lodsys, a non-practicing entity, threatened lawsuits against a raft of iOS application developers in May 2011.<a class="fn" href="#fn4">4</a>
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@ -220,7 +221,7 @@ Apple, recognising a threat to its business model of generating revenue from app
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<p>
Around the same time, another US-based non-practicing entity called Macrosolve began a set of similar lawsuits against both iOS and Android developers, based on a single patent.<a class="fn" href="#fn6">6</a>
Around the same time, another US-based non-practicing entity called Macrosolve began a set of similar lawsuits against both iOS and Android developers, based on a single patent.<a class="fn" href="#fn5">5</a>
</p>
@ -238,7 +239,7 @@ Microsoft claims to 225 patents reading on the Linux kernel, and has built an on
</p>
<p>
"These [competition concerns by the DOJ and the German FCO] concerned in particular the markets for operational systems and virtualization software, in which Microsoft and EMC/VMware are, at least, powerful. On these markets, there is a general possibility to apply so-called FUD strategies ("Fear, Uncertainty, Doubt") against smaller competitors, which can be pursued by means of patent actions."<a class="fn" href="#fn7">7</a>
"These [competition concerns by the DOJ and the German FCO] concerned in particular the markets for operational systems and virtualization software, in which Microsoft and EMC/VMware are, at least, powerful. On these markets, there is a general possibility to apply so-called FUD strategies ("Fear, Uncertainty, Doubt") against smaller competitors, which can be pursued by means of patent actions."<a class="fn" href="#fn6">6</a>
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@ -260,8 +261,10 @@ The Rockstar consortium is an uncommon gathering of companies which have only on
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<p>
From the history of the transaction, it is apparent that the companies have not teamed up to acquire technology in which they are interested. A notable feature about Rockstar's acquisition of Nortel's patent portfolio is the price paid per patent. The headline figure works out at USD 750,000 per patent. A more detailed analysis, however, reveals a far higher price per patent: <q>"look [sic] at patents currently in force drops this number down to 2000, which is the number similarly reported by IAM. At 2000 assets, the price per patent skyrockets to $2.25 MM each. If you would assume that the 1000 or so patents with at least 10 years of term remaining were the primary drivers of the purchase, then double that amount to $4.5 MM each."<a class="fn" href="#fn8">8</a>
</q></p>
From the history of the transaction, it is apparent that the companies have not teamed up to acquire technology in which they are interested. A notable feature about Rockstar's acquisition of Nortel's patent portfolio is the price paid per patent. The headline figure works out at USD 750,000 per patent. A more detailed analysis, however, reveals a far higher price per patent:</p>
<blockquote><q>"look [sic] at patents currently in force drops this number down to 2000, which is the number similarly reported by IAM. At 2000 assets, the price per patent skyrockets to $2.25 MM each. If you would assume that the 1000 or so patents with at least 10 years of term remaining were the primary drivers of the purchase, then double that amount to $4.5 MM each." (See <a href="http://gametimeip.com/2011/07/05/how-do-the-nortel-patent-auction-numbers-measure-up-a-look-at-comparable-ip-monetization-efforts/">Gamatimeip</a>.)
</q></blockquote>
<p>
This contrasts noticeably with the (still impressive) ca. USD 500,000 per patent which the CPTN consortium paid for Novell's patents earlier this year.
@ -300,7 +303,7 @@ Microsoft in particular already holds dominant positions in a number of markets,
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<p>
Given the recent steps taken by Microsoft and Apple to pressure manufacturers and distributors of Android-based devices into licensing agreements (covering software and devices which neither Microsoft or Apple had any hand in creating), it is likely that the attacks on Free Software will intensify -- first on Android (which from a Free Software perspective leaves much to be desired in terms of the freedom it offers to its users as a system<a class="fn" href="#fn9">9</a>, then on any number of other Free Software programs.
Given the recent steps taken by Microsoft and Apple to pressure manufacturers and distributors of Android-based devices into licensing agreements (covering software and devices which neither Microsoft or Apple had any hand in creating), it is likely that the attacks on Free Software will intensify -- first on Android (which from a Free Software perspective <a href="http://www.guardian.co.uk/technology/2011/sep/19/android-free-software-stallman">leaves much to be desired </a> in terms of the freedom it offers to its users as a system), then on any number of other Free Software programs.
</p>
<h2><a name="15"/>Conclusions</h2>
@ -353,12 +356,9 @@ It is our opinion that such a measure is both less effective and more prone to f
<li id="fn1"><a href="http://www.blackducksoftware.com/oss/licenses">One statistic shows</a> 42.77% of Free Software projects using the GPL. The next license in terms of frequency is the MIT license, used by 11.30% of projects.</li>
<li id="fn2">The current market share of this configuration is approximately 70%, <a href="http://news.netcraft.com/archives/2011/08/05/august-2011-web-server-survey-3.html">as surveyed by Netcraft</a>.</li>
<li id="fn3">LAMP stands for a combination of the GNU/Linux operating system, Apache (web server), MySQL (database), PHP (scripting language).</li>
<li id="fn4">Quoted from <a href="http://www.2tu.us/3hs1">PCWorld</a>: Paul Allen Amends Lawsuit Against Facebook, Apple and Others. Dec 29, 2010.</li>
<li id="fn5"><a href="http://www.guardian.co.uk/technology/2011/may/13/apple-iphone-developers-app">Lodsys claims</a> its patents cover the use of in-app payments technology, which allows users to carry out transactions within the context of an app itself. Countless app developers use in-app payments technology in their applications. Lodsys based its lawsuit on just two US patents: 7,222,078 "Methods and systems for gathering information from units of a commodity across a network", and 7,620,565 "Customer-based product design module".</li>
<li id="fn6"> <a href="http://www.tulsaworld.com/business/article.aspx?subjectid=52&amp;articleid=20110316_52_E2_MacroS667689">Macrosolve claimed</a> the four companies <a href="http://www.guardian.co.uk/technology/2011/may/18/app-developers-sued-over-patent-claims">have violated</a> U.S. Patent No. 7,822,816 "system and method for data management" which MacroSolve obtained in October 2010.</li>
<li id="fn7">German Federal Competition Office (Bundeskartellamt), April 20, 2011. <a href="http://www.bundeskartellamt.de/wEnglisch/News/press/2011\_04\_20.php">http://www.bundeskartellamt.de</a>.</li>
<li id="fn8">Quoted from <a href="http://gametimeip.com/2011/07/05/how-do-the-nortel-patent-auction-numbers-measure-up-a-look-at-comparable-ip-monetization-efforts/">http://gametimeip.com/</a></li>
<li id="fn9"> See Stallman, Richard: Is Android Really Free Software?,<a href="http://www.guardian.co.uk/technology/2011/sep/19/android-free-software-stallman">Guardian, Sept. 19, 2011</a>.</li>
<li id="fn4"><a href="http://www.guardian.co.uk/technology/2011/may/13/apple-iphone-developers-app">Lodsys claims</a> its patents cover the use of in-app payments technology, which allows users to carry out transactions within the context of an app itself. Countless app developers use in-app payments technology in their applications. Lodsys based its lawsuit on just two US patents: 7,222,078 "Methods and systems for gathering information from units of a commodity across a network", and 7,620,565 "Customer-based product design module".</li>
<li id="fn5"> <a href="http://www.tulsaworld.com/business/article.aspx?subjectid=52&amp;articleid=20110316_52_E2_MacroS667689">Macrosolve claimed</a> the four companies <a href="http://www.guardian.co.uk/technology/2011/may/18/app-developers-sued-over-patent-claims">have violated</a> U.S. Patent No. 7,822,816 "system and method for data management" which MacroSolve obtained in October 2010.</li>
<li id="fn6">German Federal Competition Office (Bundeskartellamt), April 20, 2011. <a href="http://www.bundeskartellamt.de/wEnglisch/News/press/2011\_04\_20.php">http://www.bundeskartellamt.de</a>.</li>
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