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House example is flawed, flaw | 128 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
House example is flawed, flaw
Authored by: Anonymous on Monday, March 18 2013 @ 12:47 PM EDT
Perhaps the flaw in your response is that there are not an infinite number of
cell phone buyers.

Each time Apple sells a phone this precludes Motorola, or an other licensed
maker, from that sale. There IS an opportunity cost. The playing field is not
infinite.

[ Reply to This | Parent | # ]

House example is flawed
Authored by: kuroshima on Monday, March 18 2013 @ 01:07 PM EDT
While I partly agree with you, in that "intellectual
property" is an oximoron (it's not property, and most of it
- see most patents used by trolls - isn't even terribly
intelectal), there must be a way to distinguish between "Oh,
I didn't realize there was a patent on that, let's negotiate
a reasonable fee" and "No, I'm not paying, go to the courts
if you want to see a penny, and that will happen in many
years and after you bankrupt yourself in legal fees".

I would rather have all patents declared null and void, or
at least all software and math patents (video compression,
encryption,...) but until that happens, the Fair, Reasonable
and Non-Discriminatory is to have the same rules apply to
everyone.

[ Reply to This | Parent | # ]

House example is flawed
Authored by: tknarr on Monday, March 18 2013 @ 02:15 PM EDT

The thing is, if this is about the FRAND commitment itself then there's another factor: Apple's breach of the terms. Motorola committed to negotiating FRAND licenses, true, but if Apple wants to take advantage of that then Apple commits to negotiating a license. Apple failed to even start to negotiate one. So if Apple isn't willing to work under the terms of the FRAND commitment, why should Motorola be forced to abide by it anymore? In my book, when Apple refused to even enter into negotiations that ended the whole question of the FRAND commitment right there, Apple rejected it, and now it's back to the standard ways of enforcing a patent-holder's rights. And since Apple rejected the FRAND commitment, they can't turn around and now demand to be covered by it.

[ Reply to This | Parent | # ]

House does exist
Authored by: Anonymous on Monday, March 18 2013 @ 04:17 PM EDT
The house doesn't exist until Apple moves into it.

It may be better to consider the house here as really an apartment block, condo building or even a hotel/motel than a standard alone house. The critical flaw in your argument is that the house already existed prior to Apple moving in. That is exactly why these are called standard essential patents otherwise you would not be able to fully enter into the house/apartment block without access to all SEPs involved.

What would prevent companies holding standards essential patents from refusing to license (even if they're nominally FRAND) if they have the right to exclude? What would prevent them from manufacturing business disputes with potential competetors and using that are grounds to exercise such a right (if such pretext were even necessary?)
Nothing and that is whole point about patents. Patents are a limited time monopoly granted by your Government! So, yes, companies exclude and block competitors as those are the monopoly rights given to them by the Government. It also results in FRAND terms for those SEPs so that the companies can get access to each other patent portfolios or money in exchange. That is, access rights to that house and maybe other houses as well.

[ Reply to This | Parent | # ]

House example is flawed
Authored by: PJ on Monday, March 18 2013 @ 04:18 PM EDT
You can't refuse to license a FRAND patent, so
you are worrying about something that can't happen.

In this case, Motorola ended up for sale while
Apple was refusing to pay. If enough potential
licensees do what Apple did, companies can go
out of business. That's the problem, that
delay can make a significant difference. It's
a fiction that there's no harm done since a
company can still license to others.

But the real issue, under the waves, is that lots
of times, companies only pay if there is the threat of
an injunction. Otherwise, they just don't or they
pay a lot less than true value. So if
you take away injunctive relief, you've in effect
devalued the patent below its actual worth, and
so Motorola does lose money if it enters into a
license rather than endure the pain of litigation,
which is what would mostly happen if the value is
now so low, it's not worth litigating. And that
changes the battlefield of the smartphone wars,
because Apple and Microsoft have few if any
FRAND patents, but they are patenting anything
that moves (or buying up patents, like from
Novell, etc.) and firms selling Android, who
have a lot of FRAND patents but not as many
utility patents that are not FRAND, end up
without the ability to cross license or do
real defense against this incredible patent
assault from those two companies sincerely
trying to destroy Android.

Destroy, not pay less. That is the goal. Jobs
said so. So devaluing FRAND patents is to
make Android defenseless.

[ Reply to This | Parent | # ]

House example is flawed
Authored by: Anonymous on Tuesday, March 19 2013 @ 08:01 AM EDT
A patent holder is entitled to a legal monopoly over her
invention, and “the heart of the patentee’s legal monopoly is
the right to invoke the State’s power to prevent others from
utilizing [her] discovery without consent.” Zenith Radio
Corp. v. Hazeltine Research, Inc., 395 U.S. 100, 135 (1969)

[ Reply to This | Parent | # ]

some of your fallacies
Authored by: ukjaybrat on Wednesday, March 20 2013 @ 09:47 AM EDT
without getting too detailed... let's approach some of your fallacies one point at a time shall we:
House example is flawed
That's why it's called an analogy and not a metaphor... you are nitpicking the analogy in an attempt to argue the point. the point is valid. Apple is freeloading on Motorola technology and is refusing to pay. The Judge is trying to say Moto can not get an injunction (which is the ONLY RELIEF Moto can get for someone refusing to pay for their patents... this is not hard to understand)
Money will completely make Motorola whole in this case.
then pay up and quit wasting everyone's time... that's the point.
And (as argued in Samsung v. Apple) you generally don't grant injunctions in cases where money will make the harmed party whole."
Yes, but in order for money to make them whole, Apple has to Pay and they aren't paying... it's been SIX YEARS !!!!! they aren't paying. The threat of an injunction is the only incentive Apple has to agreeing to any license terms other than free.
What would prevent companies holding standards essential patents from refusing to license (even if they're nominally FRAND) if they have the right to exclude? What would prevent them from manufacturing business disputes with potential competetors and using that are grounds to exercise such a right (if such pretext were even necessary?)
... the FRAND contract, Moto can't just say, "no i don't like you im not licensing to you" ... you are imagining this hypothetical world where Moto has all the muscle and can get away with murder. Right now we are in a world where Apple can use Moto tech for SIX years and haven't paid a penny. How is the hypothetical possibility that you suggest any better than the factual reality? In your hypothetical possibliity, you ignore the fact that Moto is still bound by the FRAND agreement that says they must negotiate licensing terms with anyone that wishes to use the patents. They can't just selectively exclude whoever they want.

---
IANAL

[ Reply to This | Parent | # ]

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