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Vringo (VRNG -2.8%), VirnetX (VHC -4.5%), Acacia (ACTG -7.7%), Wi-Lan (WILN -2.2%), and RPX...

Vringo (VRNG -2.8%), VirnetX (VHC -4.5%), Acacia (ACTG -7.7%), Wi-Lan (WILN -2.2%), and RPX (RPXC -1.8%) slide after the WSJ reports Pres. Obama is expected to announce 5 executive actions and 7 legislative proposals taking aim at perceived patent trolls, including legislation enabling sanctions against litigants filing lawsuits deemed abusive, and orders to the USPTO to "train examiners to scrutinize applications for overly broad patent claims." The report follow harsh Feb. remarks from Obama about patent trolls, as well as recent DOJ/FTC hearings regarding their activity.
Comments (7)
  • Deja Vu
    , contributor
    Comments (1153) | Send Message
     
    Why is the biggest troll of all time, Apple, up today?
    4 Jun 2013, 10:09 AM Reply Like
  • Patent Plays
    , contributor
    Comments (847) | Send Message
     
    Totally absurd conclusion. Vringo (VRNG) has been trading in the same range for the last few days.
    4 Jun 2013, 10:27 AM Reply Like
  • Viagra2800
    , contributor
    Comments (50) | Send Message
     
    Pay back to Obama's biggest supporters last election His next move will bean IRS audit on anyone trying to protect and collect against anyone stealing their patented work.
    4 Jun 2013, 10:31 AM Reply Like
  • eldongeb
    , contributor
    Comments (7) | Send Message
     
    I don't want the system abused either but I hope and pray this doesn't turn into another IRS type scandal where we use our political power to cherry pick which companies can and cannot abuse patents.
    4 Jun 2013, 10:33 AM Reply Like
  • imac007
    , contributor
    Comments (441) | Send Message
     
    This is a barn door and horse scenario. The horses are loose and the owners running around rounding them up are being labeled the nuisance.
    To make matters worse nobody is tending to the door.

     

    Problems I see.
    1. Natural products are not patentable. A secondary system is not in place to allow for licensing to protect innovation using natural based products. For example, drug companies are getting out of the antibiotic field. Resistance happens too fast, making their new drugs expensive, lengthy research with no real return. Bacteria have natural enemies called bacteriophage. Bacteriophage remain effective against the bacteria. If the bacteria mutate, then they are a new strain and bacteriophage also can mutate or be developed in the lab in about 2 weeks, to attack the new species. They are natural and so can't be patented. The FDA would not approve them without expensive clinical trials, so without some kind of exclusivity protection, innovation is quashed. The former Soviet Union, allowed licensing, so they have and use this technology. Result is, if you get infected here, with a resistant form of flesh eating disease, the treatment is to kiss your ass, goodbye, because there is no profit in keeping you alive.

     

    2. Technology companies pay taxes just like drug companies, but, when it comes time to protect their patents they are not given the same timely, expert protection. They are forced to go through the court system where the expertise they meet there is patent law expertise, not technological. The result is that the adjudicators are not equipped to judge. Expert witnesses and lengthy discovery is the result, in an attempt to equip the judges with the needed expertise, it is an epic FAIL. By the time a decision is made, the offending product is often obsolete already, and the damage done. A non-expert system is slow, expensive and ineffective.

     

    3. Slap on the wrist penalties.

     

    4. Reluctance to issue injunctions halting sales of violating products, combines with the slap on the wrist penalties, to make violating patents a business tactic. When taking out the star player only nets a minor penalty, the referee has lost control of the game.

     

    5. The idea that the inventor of an idea should not benefit from it unless he actually produces the product is ludicrous. Companies buying backyard inventors patented ideas would be considered patent trolls by these definitions. Companies like Arm Holdings are innovators whose ideas are licensed and found in most computer devices today. Innovative ideas deserve a marketplace just like any other product.

     

    The biggest complainers, like Google, are some of the largest holders of patents and receive licensing revenues from those patents. It's funny that only smaller companies get labeled and never drug companies. As to the "too broad" problem of patent application, it can backfire. Just recently, Viagra lost its Canadian patent protection for too vague and wide an application for protection. With the loss they lost their monopoly.

     

    On one hand, the FDA is protecting the drug companies against competition from natural remedies, to the detriment of innovation and public safety. On the other we are stifling innovation in technology by making it more lucrative to reverse engineer and pay litigation. These newer regulations seem to lean even more toward encouraging abuse.
    4 Jun 2013, 12:55 PM Reply Like
  • caddy311
    , contributor
    Comments (153) | Send Message
     
    "against litigants filing lawsuits deemed abusive, and orders to the USPTO to "train examiners to scrutinize applications for overly broad patent claims" - not sure how/why any of this pertains to VRNG. It can be claimed they are a troll, sure, but they've also won a jury verdict in a federal court. No law passed by our dysfunctional congress will affect that. I can't see how it is not "abusive" if a jury finds in your favor.

     

    It might make sense to have some sort of penalties built in for bringing an unsuccessful patent litigation suit against a company, to discourage trolls. Regardless, I don't see this being an issue for $VRNG in the near term, and really detracts from the issue at hand - i.e. the judges ruling on Google.
    4 Jun 2013, 11:37 AM Reply Like
  • SoCalNative
    , contributor
    Comments (429) | Send Message
     
    Saw an interview on Bloomies this AM with the WH special IP appointee and he made it clear that patents that have a buyer and seller could and should be monetized. http://bloom.bg/11fIpkX
    4 Jun 2013, 12:44 PM Reply Like
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