Legal Archive

Lies, deceit, and hypocrisy

One single paragraph from one of the many court documents (via!) in the ongoing legal battle between Apple and Samsung. One single paragraph that not only perfectly highlights the hypocrisy of technology companies, but also the complete and utter disjoint between a technology company's legal, marketing, and engineering departments.

Contrary to the image it has cultivated in the popular press, Apple has admitted in internal documents that its strength is not in developing new technologies first, but in successfully commercializing them. When Apple was developing its campaign to promote the first iPhone, it considered - and rejected - advertisements that touted alleged Apple "firsts" with the iPhone. As one Apple employee explained to an overly exuberant Apple marketer, "I don't know how many things we can come up with that you can legitimately claim we did first. Certainly we have the first successful versions of many features, but that's different than launching something to market first." In this vein, the employee methodically explained that Palm, Nokia and others had first invented the iPhone's most prominent features.

The marketing department has no clue about the technology it needs to advertise. The legal department cleverly writes its patent application despite knowing full well that the technology it tries to patent is not new. Meanwhile, the engineer - the actual person implementing the technology - knows exactly what is going on, but is gagged from openly speaking his or her mind. The only thing I'm not sure about is which of these three is the biggest hypocrite.

Intellectual property - and patents in particular - has ruined the technology industry with lies, deceit, and hypocrisy. We just stood by and let it happen.

Apple v. Samsung jury: verdict not meant to send big message

When a federal jury two years ago clobbered Samsung with nearly $1 billion in damages for violating Apple's iPhone and iPad patent rights, the jury foreman emphasized that the verdict was meant to send a strong message about copying in the tech industry.

But there was no such deliberate message in the verdict in the latest patent showdown between Apple and Samsung that drew to an end on Monday, according to jurors who spoke outside the federal courthouse after finishing their role. In fact, the jury foreman said the mixed verdict in the trial sequel was not intended to send any broader message in the smartphone wars.

It's almost as if having a jury led by a technology patent holder has a huge stake in making sure patents are as valuable as possible. The foreman in the current case, Thomas Dunham, stated that this jury didn't intend to send a message - it just looked at the evidence and awarded fair damages. Either of the two company's initial claims - Apple's $2 billion and Samsung's $0.12 billion - were dismissed by the jury as unfair and unjust.

"Ultimately, the consumer is the loser in all this," Dunham said. "I'd like to see them find a way to settle. I hope this (verdict) in some way helps shape that future."

Clearly, one of these two foremen is the wise one.

The great smartphone war

For three years, Apple and Samsung have clashed on a scale almost unprecedented in business history, their legal war costing more than a billion dollars and spanning four continents. Beginning with the super-secret project that created the iPhone and the late Steve Jobs's fury when Samsung - an Apple supplier! - brought out a shockingly similar device, Kurt Eichenwald explores the Korean company's record of patent infringement, among other ruthless business tactics, and explains why Apple might win the battles but still lose the war.

Once you brush off the apple pie that spontaneously erupts from your monitor and get over the "Asian Samsung bad, American Apple good!"-mentality, this article has some very decent stuff in it. Worth the read.

Jury rules Apple, Samsung infringe each other’s patents

An eight-person jury on Friday handed back a mixed verdict in the Apple v. Samsung patent-infringement case.

The jury found Samsung's gadgets infringed Apple's '647 patent, but not the '959 patent or '414 patent. Results were mixed for the '721 patent, with some Samsung devices, such as the Galaxy Nexus, found to infringe, and others not.

The jury awarded Apple only $119.6 million for the infringement.

Apple wanted more than $2 billion. The verdict is still being read, and the jury has also ruled that Apple infringed on one of Samsung's patents, awarding Samsung $158000 for it.

So, pocket change both ways. A total waste of money, public resources, the jury members' time, and the court system. Well done you, patent system.

Google to cover some of Samsung’s costs in Apple patent case

A Google lawyer testified on Tuesday that the software maker, pursuant to its contractual obligations, agreed to take over defense of some of the claims in Apple’s current patent lawsuit as well as to indemnify Samsung should it lose on those claims.

Apple played deposition testimony from Google lawyer James Maccoun, who verified emails in which Google agreed to provide partial or full indemnity with regard to four patents as well as to take over defense of those claims.

If this case was really about "justice", as Apple claims it is, they should just get it over with and sue Google directly, instead of playing these proxy games. In any case, it's good to know Google is taking responsibility for its OEMs here - long overdue.

Judge confirms link between Apple and patent troll Rockstar

Rockstar, the massive patent troll in which Apple is a majority shareholder, sued Google for patent infringement. Of course, Rockstar filed suit in the Eastern District of Texas, the usual venue for patent trolls. Because of Apple's involvement, Google motioned to have the suit take place in California instead, where it stands a much greater chance of winning. Judge Claudia Wilken sides with Google. She states in the ruling:

Google and Apple's rivalry in the smartphone industry is well-documented. Apple's founder stated that he viewed Android as a "rip off" of iPhone features and intended to "destroy" Android by launching a "thermonuclear war." Defendants' litigation strategy of suing Google customers is consistent with Apple's particular business interest... This 'scare the customer and run' tactic advances Apple's interest in interfering with Google's Android business.

Every now and then, someone just gets it. Judge Wilken looked beyond the constructed sham companies and legal cobwebs - such as Rockstar setting up a sham company in Delaware with zero California contacts and transferring all patents-in-suit to that company a day before it sued Google.

The world needs more judges like this. In addition - it seems like Jobs' remarks about Android are catching up to the company. Delightful.

Apple, Microsoft join hands to stop software patent reform

Called the Partnership for American Innovation, the group warned that steps to stop the PAEs could also hurt truly innovative companies.

Companies signing on to the effort so far are Apple Inc., DuPont, Ford Motor Co., General Electric, IBM Corp, Microsoft Corp and Pfizer Inc.

In particular, the group would oppose efforts to make software or biotechnology unpatentable.

Google, Cisco and other supporters of efforts to curb frivolous patent litigation from PAEs, often termed "patent trolls," supported a bill that easily passed the U.S. House of Representatives in December.

Software patents are destructive and hinder innovation. Apple, Microsoft, and the other members are actively lobbying to limit innovation in the technology industry. This, in turn, will harm the American economy, and cost the American people tens of thousands of jobs.

It's easy to sound like a politician.

Round two: Apple, Samsung suit up for another patent war

The Verge, summarising the first US patent lawsuit between Apple and Samsung:

Apple was awarded just over $1 billion in damages, though that figure was later cut down to $939.8 million after the judge pointed out errors in the way the jury did its math. Those damages were retried, and came in lower than the original figure, though the entire amount has since been appealed, and Samsung hasn't paid a penny. Alongside that, Apple and Samsung failed to win bans against one another's products in the US, making the first trial seem like nothing more than a legal spectacle.

Or, just call it what it is: an abject failure on both company's sides, and a huge waste of money that could have gone to product development, higher salaries, or even shareholder returns. Two gigantic and hugely profitable companies using despicable weaponry - and all, for, nothing.

But in the midst of all that was a very real threat: another lawsuit, one that targeted more successful devices from both companies, and used easy-to-understand patents covering basic software features. Apple filed it against Samsung in February 2012, targeting 17 devices. Samsung responded in kind, and this week the pair go head to head once again; the outcome could be very different. Here's what to expect over the next weeks and months as these two titans clash again in California's courts.

So, prepare for another week of lawyers laughing all the way to the bank, while two companies with more money than they know what to do with waste precious time of the US justice system that could be spent elsewhere, and better.

Let the cheering contest continue. Which faceless corporation that cares none about you do you root for?

Steve Jobs’ brutal response after getting a Google employee fired

In early March, 2007, as Google was expanding fast and furiously, one of its recruiters from the "Google.com Engineering" group made a career-ending mistake: She cold-contacted an Apple engineer by email, violating the secret and illegal non-solicitation compact that her boss, Eric Schmidt, had agreed with Apple's Steve Jobs.

What happened next is just one of many specific examples of how people's lives were impacted by the Techtopus wage-theft cartel that was taken down by the Department of Justice antitrust division, and is currently being litigated in a landmark class action lawsuit.

This story sent shivers down my spine. What a bunch of horrible, unethical scumbags. Sadly, their criminal behaviour won't really have any meaningful consequences. These people reside above the law.

Tech giants knew of NSA data collection, NSA’s top lawyer insists

Asked during a Wednesday hearing of the US government's institutional privacy watchdog if collection under the law, known as Section 702 or the Fisa Amendments Act, occurred with the "full knowledge and assistance of any company from which information is obtained," De replied: "Yes."

When the Guardian and the Washington Post broke the Prism story in June, thanks to documents leaked by whistleblower Edward Snowden, nearly all the companies listed as participating in the program - Yahoo, Apple, Google, Microsoft, Facebook and AOL - claimed they did not know about a surveillance practice described as giving NSA vast access to their customers' data. Some, like Apple, said they had "never heard" the term Prism.

So, the companies most likely lied. What a surprise.

Dutch courts overturn Pirate Bay blockade

Today, the Court of Appeals of The Hague rendered its judgment in the appeal of internet service providers XS4ALL and Ziggo against anti-piracy organization BREIN. In first instance, the District Court allowed Brein's claims: an IP-block and DNS-block. Purpose of the block was to prevent the subscribers of the providers to access The Pirate Bay-website.

The Court of Appeals overturned the ruling, since the providers could show that the block had not been effective since the first ruling. In applying the case law from the European Court of Justice (ECJ), the Court of Appeal held that an access provider is not under an obligation to take measures that are disproportional and/or ineffective.

A win for us Dutch people, and hopefully, a ruling possible cases in other European countries can cite.

Samsung, Google sign 10-year patent sharing agreement

Ingrid Lunden explains the significance of the deal (I dislike her headline though, since it falsely implies Google and Samsung were at legal odds):

First, the deal will bolster both Samsung and Google's patent positions against patent infringement allegations and subsequent litigation from competitors, and specifically Apple, which has been involved in acrimonious, multinational patent battles worth billions of dollars against Samsung for years now, over Samsung's Android-powered range of Galaxy smartphones and tablets.

Second, it is a sign of how Google continues to put the patents it gained from its $12.5 billion Motorola acquisition to good use across the Android ecosystem. The ecosystem part is key here. I personally wouldn’t be surprised to see deals like this one appear with other OEMs.

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.