Legal Archive

Legalised corruption soars in the US; Google, AT&T lead the pack

Google led in lobbying spending by ten tech firms who pumped a combined $61.15 million into efforts to influence federal regulators and lawmakers in 2013, up 15.9 percent from a combined total of $52.78 million, according to records filed with the Clerk of the House this week.

Apparently AT&T is not considered to be a technology company, because they spent more than Google. All in all, virtually all companies heavily increased their spending on legalised corruption in the US.

Documents reveal top NSA hacking unit

The German newspaper Der Spiegel has unveiled a whole bunch of stuff about the NSA and its tools that defy belief. Their tools and actions go way beyond what we already knew; we're not just talking passive information gathering through cables and such, but way, way more.

For instance, the NSA can divert shipments of purchased computers and equipment to their own secret workshops, where malware and spying hardware is added to these products before they are then shipped onward to the buyers. They also intercept Windows crash reports as they are sent from users' computers to Microsoft's servers. Worse yet, they can reportedly add special hardware to drones that can wirelessly infect computers from up to 8 kilometres away.

We've only seen the tip of the iceberg here. The fact that no heads are rolling in Washington over this illustrates just how corrupt and undemocratic the US government has become.

Google sues Apple, Microsoft-backed patent troll Rockstar

Google has decided to fight back against the Apple and Microsoft-backed patent troll Rockstar. It has filed a lawsuit, asking the court to state that the Android platform does not infringe any of the patents the patent troll is asserting against Android, Google, and Android OEMs. Google describes Rockstar's trolling in no uncertain terms.

Rockstar produces no products and practices no patents. Instead, Rockstar employs a staff of engineers in Ontario, Canada, who examine other companies' successful products to find anything that Rockstar might use to demand and extract licenses to its patents under threat of litigation.

A very interesting tidbit is found further down in the legal documents - Google claims that Rockstar actually contacted companies that use Android, asking them to... Stop using Android.

On information and belief, Rockstar contacted and met with these California-based companies in order to discourage them from continuing to use Google's Android platform in their devices, and to interfere with Google's business relationships.

This Apple and Microsoft shell company is way, way dirtier than we already knew.

Judge: NSA phone surveillance program likely unconstitutional

A federal judge in Washington ruled on Monday that the bulk collection of Americans' telephone records by the National Security Agency is likely to violate the US constitution, in the most significant legal setback for the agency since the first disclosures prompted by the whistleblower Edward Snowden.

Judge Richard Leon declared that the mass collection of metadata probably violates the fourth amendment, which prohibits unreasonable searches and seizures, and was "almost Orwellian" in its scope. In a judgment replete with literary swipes against the NSA, he said James Madison, the architect of the US constitution, would be "aghast" at the scope of the agency’s collection of Americans' communications data.

It's just a preliminary ruling, and while the judge stated that he would most likely uphold the preliminary ruling after the merits of the case have been handled, there's probably thousands of appeals and stuff like that where this could crumble into dust.

Once a government has obtained a power, it rarely releases it. That's the nature of government - it can only grow.

EU warns Nokia not to become a “patent troll”

Joaquin Almunia's strongest language was reserved for Nokia, which is in the process of selling its devices business to Microsoft, giving rise to fears that the remaining part of Nokia will make more aggressive use of its patents portfolio.

Almunia said that the commission had dismissed the possibility that "Nokia would be tempted to behave like a patent troll" when it cleared the way for Microsoft to acquire Nokia's devices division - but warned that "if Nokia were to take illegal advantage of its patents in the future, we will open an antitrust case."

This is a real threat. The gutted Nokia still holds a considerable amount of patents, and they've already shown remarkable willingness to sue Android device makers over them. Good to know the EU is on top of it.

Tech giants unite against NSA

The giants of the tech industry are uniting to wage a campaign for sweeping reforms to the National Security Agency.

Google, Facebook, Twitter, Yahoo, Microsoft, Apple, LinkedIn and AOL are setting aside their business rivalries to demand that Congress and President Obama scale back the government's voracious surveillance.

These companies had little to no qualms about teaming up with the US government back when it was all done in relative secrecy, but now that it's out in the open, they're acting like heroes. This campaign would never have been launched if Snowden hadn't blown the whistle, which means the motive behind this new campaign is money - not morality.

Microsoft, IBM kill software patent reform in the House

On Wednesday, the House Judiciary Committee is scheduled to consider legislation aimed at reining in abusive patent litigation. But one of the bill's most important provisions, designed to make it easier to nix low-quality software patents, will be left on the cutting room floor. That provision was the victim of an aggressive lobbying campaign by patent-rich software companies such as IBM and Microsoft.

These companies also happen to have the largest lobbying corruption budgets. This is never going to change.

Tim Cook supports Employment Nondiscrimination Act

Tim Cook, in a letter published in The Wall Street Journal:

Apple's antidiscrimination policy goes beyond the legal protections U.S. workers currently enjoy under federal law, most notably because we prohibit discrimination against Apple's gay, lesbian, bisexual and transgender employees. A bill now before the U.S. Senate would update those employment laws, at long last, to protect workers against discrimination based on sexual orientation and gender identity.

We urge senators to support the Employment Nondiscrimination Act, and we challenge the House of Representatives to bring it to the floor for a vote.

It's hard to imagine for someone like me, from The Netherlands, but in the US, gay, lesbian, bisexual and transgender people have, in most states, far fewer rights than straight, non-transgender people. The LGBT community in the US still has a long fight ahead of itself, and large companies like Apple publicly urging Congress to address the archaic position of the LGBT community can only be seen as a good thing.

Most technology companies support the LGBT community's fight for equality, and considering the importance of this industry, that's a blessing.

Apple, Microsoft lie to the EU about opposing patent trolling

Apple, Microsoft, and others, a little over a month ago in a letter to the EU, warning that the EU's new proposed unified patent law could lead to more patent trolling:

To mitigate the potential for abuses of such power, courts should be guided by principles set forth in the rules of procedure to assess proportionality prior to granting injunctions. And PAEs should not be allowed to use injunctions for the sole purpose of extracting excessive royalties from operating companies that fear business disruption.

Yesterday:

A new front opened today in the patent wars between large technology companies, as a consortium that owns thousands of patents from the Nortel bankruptcy auction filed suit against Google and other manufacturers alleging infringement. Rockstar, which is owned jointly by Apple, Blackberry, Ericsson, Microsoft, and Sony, filed suit in US District Court in Texas. In addition to Google, the consortium has alleged infringement by Asus, HTC, Huawei, LG, Pantech, Samsung, and ZTE.

They're not just scumbags - they are lying scumbags.

Apple, Microsoft launch large patent troll attack on Android

A new front opened today in the patent wars between large technology companies, as a consortium that owns thousands of patents from the Nortel bankruptcy auction filed suit against Google and other manufacturers alleging infringement. Rockstar, which is owned jointly by Apple, Blackberry, Ericsson, Microsoft, and Sony, filed suit in US District Court in Texas. In addition to Google, the consortium has alleged infringement by Asus, HTC, Huawei, LG, Pantech, Samsung, and ZTE.

Since then, as recounted by Wired, Rockstar has been devoted to reverse-engineering the patents and looking for evidence of infringement. "Pretty much anybody out there is infringing," John Veschi, the CEO of Rockstar, told the magazine. "It would be hard for me to envision that there are high-tech companies out there that don't use some of the patents in our portfolio."

I told you Apple and Microsoft were patent trolls. They specifically set up a satellite company that owns nothing but patents, with the sole goal of attacking the competition in the courtroom instead of the market. What a bunch of low-life scum.

I'm surprised by Sony there, though. They use Android themselves.

A bill to end patent trolling? Dream on

So, there's a new patent reform bill in the US that is supposed to put an end to "patent trolls".

The chairman of the House Judiciary Committee, Rep. Bob Goodlatte (R-VA), has introduced a bill that directly attacks the business model of "patent trolls." The bill has a real chance at passing, with wide backing from leadership in both parties.

Don't believe all the cheers online - this bill is a disaster. What it essentially does is make it very hard for smaller companies to file patent lawsuits. While this does, indeed, make it harder for small patent trolls to operate, it has the side effect of shifting the balance of power even more in favour of the larger companies. Additional costs and legal legwork are a huge hindrance for small companies, but entirely inconsequential for large companies which employ the same patent trolling tactics as actual patent trolls, such as Apple's software and design patent abuse or Microsoft's mafia practices regarding Android.

With this bill, it will become a lot harder for a small, innovative startup with a great idea to protect itself against the big players. I would call that an unintended side effect, were it not that I am a huge cynic and know perfectly fine that this is anything but 'unintended'.

Nokia confirms: its patent attacks may continue

Microsoft paid billions for a license to Nokia's patents, but the company has made explicit that Nokia still owns the patents. The genius of this move is that it allows Microsoft to double down on its patent war with Android. Microsoft boasts that the majority of Android phones sold worldwide have already paid for a license to Microsoft patents. By 2011, patent licensing revenue exceeded Microsoft's revenue from Windows Phone.

Now, Nokia can go after Android phone makers for royalties - even ones that have already paid Microsoft.

When pressed on the issue today, a Nokia spokesman confirmed that more patent licensing is indeed part of the plan.

So, without products, Nokia will become a true patent troll. Good to know.

Ranking of companies by number of NPE lawsuits

As of August 2013, PatentFreedom has identified and profiled over 710 distinct NPEs (a number which continues to increase). Since 1985, these NPEs have been involved in litigation with over 10,000 different operating companies in nearly 11,000 actions, for a total of over 30,000 events. There are clear indications that NPEs in recent years increasingly seek to enforce their patents against companies of all sizes and in many industries. Despite this trend, as the table below shows, NPEs continue to target many large and high-profile companies quite relentlessly.

Virtually all large technology companies are increasingly being targeted by patent trolls. I shed no tears for any of them, though. Offensive abuse of (software/design) patents is always wrong, whether you produce products or not.

You reap what you sow. These companies actively lobby to keep the patent system as it is, and as such, they deserve exactly what they're getting.

New Zealand definitively bans software patents

New Zealand has finally passed a new Patents Bill that will effectively outlaw software patents after five years of debate, delay and intense lobbying from multinational software vendors.

Aptly-named Commerce Minister Craig Foss welcomed the modernisation of patents law, saying it marked a "significant step towards driving innovation in New Zealand".

"By clarifying the definition of what can be patented, we are giving New Zealand businesses more flexibility to adapt and improve existing inventions, while continuing to protect genuine innovations," Foss said.

It's too bad that - no matter how awesome New Zealand is - they're a very small player, much like my own country. Still, change has to start somewhere, and this is at least something.

Software patents cause of rise in patent suits, says US gov

Ars Technica looks at a government report on the rise in patent lawsuits, and concludes that most of it is caused by software patents.

As is clearly visible in the graph above, the data shows that many more companies are getting sued than were a few years ago. That's true even though the number of lawsuits has held relatively steady over the last 5 years. The increase in defendants, the next graph shows, is driven by software patents.

It's right there in the data. The problem is, of course, that software patents are the bread and butter of Microsoft's and Apple's campaign against their competitors, and as such, there is zero chance of the US government stepping in to finally ban these ridiculous patents. As long as the two largest technology companies rely on software patents, nothing will be done about them.

Groklaw shutting down

So. There we are. The foundation of Groklaw is over. I can't do Groklaw without your input. I was never exaggerating about that when we won awards. It really was a collaborative effort, and there is now no private way, evidently, to collaborate.

I'm really sorry that it's so. I loved doing Groklaw, and I believe we really made a significant contribution. But even that turns out to be less than we thought, or less than I hoped for, anyway. My hope was always to show you that there is beauty and safety in the rule of law, that civilization actually depends on it. How quaint.

Quaint indeed.

Groklaw is shutting down. A huge loss, as the site's contributions to various ridiculous lawsuits, like the SCO one about Linux, or the even crazier one from Oracle about Java, were invaluable. The reasons are sound, though - without secure, private communications, the collaborative effort that is Groklaw cannot function.

A sad day.

UK abuses terrorism law to intimidate journalist’s partner

The partner of the Guardian journalist who has written a series of stories revealing mass surveillance programmes by the US National Security Agency was held for almost nine hours on Sunday by UK authorities as he passed through London's Heathrow airport on his way home to Rio de Janeiro.

David Miranda, who lives with Glenn Greenwald, was returning from a trip to Berlin when he was stopped by officers at 8.05am and informed that he was to be questioned under schedule 7 of the Terrorism Act 2000. The controversial law, which applies only at airports, ports and border areas, allows officers to stop, search, question and detain individuals.

Miranda also had all his equipment confiscated. He has done nothing wrong - there's no charges, no criminal suspicion, nothing at all. His only crime is being the partner of a famous journalist who, among other things, is one of the driving forces behind shining a light on the NSA's mass surveillance.

There is no war on terror, because the terrorists have already won.

Apple patent wins could mean US import ban for Samsung

Some older Samsung Electronics Co. mobile devices face a sales and import ban in the United States after a U.S. trade panel ruled for Apple Inc. in a high-profile patent infringement case.

The U.S. International Trade Commission on Friday ruled that South Korea's Samsung infringes on portions of two Apple Inc patents on digital mobile devices, covering the detection of headphone jacks and operation of touchscreens.

If Obama does not step in, two tiny patents like this can get devices banned, but refusal to accept FRAND terms, refusal to negotiate, all the while using the patent in question anyway does not.

Sure, this is not about protectionism. How cute.

CCIA response to veto of ITC ban on Apple products

Ed Black, President & CEO of the Computer & Communications Industry Association:

The Administration’s unprecedented decision to veto an ITC "Section 337" import ban against Apple for infringing Samsung's intellectual property is a disruptive and potentially dangerous development that calls into question the fairness of our trading regime and could undermine the way US companies are treated globally.

Adjudication by USTR fiat, however, is unacceptable and invites other countries to do the same. While Ambassador Froman's letter cites policy issues, it offers little helpful analysis or guidance. And it ignores the ITC's determination that Apple failed to prove either that Samsung's patent was a standard-essential patent or that Samsung breached its obligation to a standards-setting organization.

Well said.

This is the core of the problem with Obama's veto. Not only did he completely and utterly contradict the findings of an expert panel of judges who investigated all the materials in great detail, he also sent out a very strong message: if you're a foreign company doing business in the US, you will be treated as a second class citizen. Combined with the endless stream of negative press concerning surveillance and which hunts for whistleblowers, the US just got a whole lot less enticing for technology companies.