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Apple getting sued again by patent profiteers

It must be hard to be as popular as Apple. You're always fighting the competition, who sometimes come late to the dance with a wannabee product, then deliver snarky punches into the kidneys with their TV ads. Even worse are the lawyers, who circle the company like a flock of vultures, picking away at whatever juicy bits of meat they can get.

But the true bottom feeders are the "patent trolls," a specific species of law firm that has picked up patents from companies that usually never brought a product to market. They watch for other companies to come out with products that use a piece of technology that may or may not be covered under the patents they hold, and then either sue the company for patent infringement or force them to pay license fees. This document from legal firm Morgan, Lewis & Bockius LLP details the strategy used by patent trolls and how targets can fight back.

Apple's latest attack, as reported in Macworld, is coming from St. Clair Intellectual Property Consultants Inc. (SCIPC), a firm made up of two lawyers who purchased patents for US$100,000 from a group of investors who failed to start up a digital camera company. The company says that its patents cover technology that allows digital cameras to save pictures in multiple formats. So far, SCIPC raked in over US$179 million from various other consumer electronics firms (Sony and Canon, to name just two), and now its leveled the sights at Apple.

SCIPC filed its lawsuit October 26th in Delaware, suing Apple for violating Patent 5,138,459, entitled "Electronic Still Video Camera with Direct Personal Computer (PC) Compatible Digital Formal Output." The suit is specifically targeting the iPhone and other devices made by Apple that include digital cameras in them. Judging from the legal precedent that has been set by previous SCIPC suits, Apple could easily be about to shell out some big bucks to a happy troll.

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It must be hard to be as popular as Apple. You're always fighting the competition, who sometimes come late to the dance with a wannabee...
 

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Pdiddy

Yep. Must be hard being as popular as Apple.

December 06 2009 at 4:59 PM Report abuse rate up rate down Reply
gking

Let us see.

Apple sues someone (e.g., power adapter) and that is hunky dory, because Apple is protecting its IP.

Apple gets sued for allegedly infringing on someone else's patent and the people suing are evil.

It does not matter if the company never produced a product. They have the patent.

Nor does it really matter if a law firm bought the patent, and did not produce the patent themselves. The law firm now owns the patent.

All the comments about patent trolls probably come from individuals who have never created something that has produced a copyright or a patent. Both are there for a purpose, and that is to protect someone's IP.

December 06 2009 at 4:30 PM Report abuse rate up rate down Reply
Rob

Patents are MONOPOLIES. The US Government (and other Governments) have granted Apple and many other high tech companies these Patent Monopolies. And do not kid yourself, Apple does use these Monopolies to put other companies (especially smaller ones) out of business.

Apple and other high tech companies DO NOT WANT COMPETITION. They do NOT want a FREE market. They want to be a MONOPOLY. Patents and copyrights are two the of the main ways they achieve this goal.

People do not like Patent Trolls since many trolls do NOT make anything. But there are some BIG MULTINATIONAL companies that do make a lot of stuff and also act as Patent Trolls. (I will not name names here but IP lawyers know them all too well).

If you do NOT like the system, then lobby the Government to change it. But I think you will find that the present system works well for BIG companies. Patents etc are a GREAT WAY for companies like Apple to kill up start companies.

December 06 2009 at 9:54 AM Report abuse rate up rate down Reply
Jon

"It must be hard to be as popular as Apple"

Not really... I'm sure the billions they make in annual revenue more than makes up for the downsides.

December 06 2009 at 5:45 AM Report abuse rate up rate down Reply
Charli

the difference is that Apple more often than not, uses the patented technology or did. the trolls just get the papers and do nothing. and sometimes it's an idea patent and not even actual tech.

in recent years companies that file and sit have lost such suits. so this may not be the slam dunk it seems like. even if prior cases went in favor of the trolls.

December 06 2009 at 12:13 AM Report abuse rate up rate down Reply
steve humann

yeah these guys are ugly but I'm not in favor of any legal changes that would make it harder for real individual inventors to sue the big corporations who can and do sometimes rip them off. the system is already overwhelmingly in favor of unscrupulous big companies with large permanent legal departments, let's not tip it further their way because they're being extorted here. My suspicion is that Flash of Genius stories happen more often (and without the little guy winning) than this patent troll thing.

Hmm, I think maybe I'm going to go patent some really cool spaceship ideas I have.

December 06 2009 at 12:12 AM Report abuse rate up rate down Reply
caleb roberts

It is not just Apple here. They are suing everyone. For the few people here that thinks that this sort of thing is ok, because Apple (or whomever) screws them because of their high prices - um why are their prices high? Because they have to pay all these stupid lawsuits.

People wonder why medical costs are so high, because doctors have to cover their butts ALL the time ordering unnecessary tests, performing too many unnecessary procedures, etc.

Their is a bigger issue in this story than just two lawyers or whatever suing apple. If we need more gov't in our lives (heaven help us...) then we need regulations on lawyers, tort reform, anything to get rid of these ridiculous lawsuits.

With that being said, there is a need for such practices in real situations, but some company that bought patents just to sue. C'mon on. This is now the America we live in, and the pride I have in my nation is quickly dwindling with stories and articles such as these.

December 06 2009 at 12:04 AM Report abuse rate up rate down Reply
1 reply to caleb roberts's comment
rosebudrb70

and in every other industrialised nation the the individual or company that brings lawsuit and then loses said lawsuit has to pay the legal fees of the one they sued. That is what we need to do. We have more lawyers than we have doctors in America.

Shakespeare was right "First We Kill All the Lawyers"

December 06 2009 at 7:36 PM Report abuse rate up rate down Reply
Cowfodder

Had you bothered to actually READ the article, you would have learned that these guys didn't come up with anything. They bought a bunch of patents for failed ideas from another company specifically for the purpose of suing any company that even came close to what the patent is for. Most larger companies settle out of court on crap like this because it is cheaper to do so than it is to actually go through the court process. It is basically blackmail. Stupid troll.

December 05 2009 at 11:18 PM Report abuse rate up rate down Reply
Jimbo

I have a hard time conjuring u any smpath for Apple. I've been paying their high prces for years. It's good to see them get screwed like their do their own customers.

Besides, does anyone recall the news story a few years ago about how Apple's lawyers sent a stop and decist letter to some old bitty who was selling knitted pot holders with Apple's trademarked lower case "i" in the product's name? Screw Apple.

December 05 2009 at 11:01 PM Report abuse rate up rate down Reply
2 replies to Jimbo's comment
Christine

Timm said:
"have a hard time conjuring u any smpath for Apple. I've been paying their high prces for years. It's good to see them get screwed like their do their own customers."

No offense Timm but Apple did not point a gun behind your skull and forced you to buy their Macbooks and iPhones. If you were so upset buying over priced Apple stuff then why didn't you just walk away? There are tons of cheaper and better alternatives out there. You can blame Apple for a lot of things but you can't blame Apple for your own negligence.

December 06 2009 at 12:15 AM Report abuse rate up rate down Reply
Jimbo

I am sure there was no offense intended, and none taken.

My business is locked in to Macs because of the graphics software and IT issues we deal with.

I'm still happy to see Apple get sued as often as they sue others.

December 06 2009 at 9:49 AM Report abuse rate up rate down Reply
mark

I would like to become a patent troll some day.... Is there a dummies guide yet?

December 05 2009 at 10:23 PM Report abuse rate up rate down Reply
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