Report: Apple's Strange Relationship with Patent Troll That Targets its Competition

December 13, 2011 -

According to this Ars Technica report, Apple has allied itself with a known patent troll to take out its enemies. The company has had some covert dealings with Digitude Innovations, a company that enjoys being paid in patents so it can beat the hell out of companies in court.

Digitude launched one of its first legal attacks earlier this month against some of the biggest mobile hardware players in the world including Nokia, RIM, Motorola, HTC, LG, Samsung, Sony, and even Amazon. The company filed a patent infringement claim with the International Trade Commission. Apple was not on that list, of course. Apple owned two of the patents that are being used in the legal action as recently as November.

The iOS device maker recently transferred ownership of a dozen patents to a shell company called Cliff Island LLC, which shares a New York office with the investment firm Altitude Capital Partners. That company was founded by Altitude investor Robert Kramer, who also owns a big chunk of Digitude.

Altitude has funded efforts in the past to win settlements from Microsoft, RIM, and eBay over patent disputes. Earlier this year, Kramer put up a whopping $50 million of Altitude's funds to found Digitude. The money helped the company get over 500 "consumer electronics patents" for licensing and litigation.

"Our goal is to generate great returns for our investors," Kramer told Forbes in June. "We have reached out to many of our prospective customers to encourage them to become early strategic licensees."

According to Ars, Digitude makes deals with licensees for blanket access to its patent portfolio. Digitude prefers payment in patents instead of money so that it can either garner new licensees or sue them in court.

In April Digitude said that it had signed its first strategic deal with "one of the world's leading consumer electronics companies." It did not mention Apple specifically, but the dozen patents Apple turned over to Cliff Island were acquired in April of this year from Mitsubishi. These patents relate to "mobile communications devices" or "mobile terminals."

Those patents were transferred to Cliff Island in late November, with the two patents involved in an ITC dispute being transferred to Digitude the following day. Days after the transfer Digitude filed a complaint with the ITC. Further proof of a relationship between Apple and Digitude is a confidential license agreement involving both companies that was filed as evidence in the ITC case.

While its unknown just how deep of a relationship the two companies have at this point, Electronic Frontier Foundation staff attorney Julie Samuels told TechCrunch that "it would be horrifying" if this story is true. Samuels also doubts that there was any coercion aimed at Apple either because the company is quite comfortable suing when it needs to. When you are as big as Apple you always have options.

Source: Ars Technica


Comments

Re: Report: Apple's Strange Relationship with Patent Troll ...

Come on, Apple.  You can do quite well for yourself simply by continuing to exploit your inexplicably fanatical legion of iTools.  No need to try to trash your competition with this kind of shady bullshit.

Re: Report: Apple's Strange Relationship with Patent Troll ...

Disgusting, yet not surprising in the least.

Re: Report: Apple's Strange Relationship with Patent Troll ...

I told everyone that Apple would become "big brother".

Re: Report: Apple's Strange Relationship with Patent Troll ...

I wonder if tech companies will ever get enough of their lobbying act together to finally kill software patents....

Re: Report: Apple's Strange Relationship with Patent Troll ...

Who do you think uses software patents?

Re: Report: Apple's Strange Relationship with Patent Troll ...

Patent trolls mostly. Most really software developers are against software patents.

Re: Report: Apple's Strange Relationship with Patent Troll ...

Though they are generally against them, a lot of them still own them in huge numbers to protect themselves from patent trolls. IBM started soaking up all the Unix related patents it could during the SCO mess to keep them from finding their way into SCO's hands and spawning more expensive litigation.

The legitimate big boys aren't above patent trolling themselves. They've been on the victim's end lately, but in the 90's most of them loved them some software patent lawsuits. Apple and Microsoft kept going back and forth with software patents over CD drive features they both used - autoplay, music play, insert detection, software eject, auto eject, boot-from-CD... I don't even remember who sued who on most of them anymore.

Re: Report: Apple's Strange Relationship with Patent Troll ...

SO basically Apple is being anti-competitive again, much to the surprise of no one I suppose. They do seem pretty determined to make sure you can't take your money elsewhere.

 
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james_fudgewell I hope he called the police so they can let us all know.09/21/2014 - 9:07am
quiknkoldIt's pretty gnarly. Depending on what it is, it could be worse than white powder or a fake bomb.09/21/2014 - 9:06am
james_fudgeI just looked it up on UPS.com09/21/2014 - 8:56am
james_fudgeand expensive for an American to ship to London.09/21/2014 - 8:55am
E. Zachary KnightThat is pretty scary. Would have been worse if it were a fake bomb or white powder.09/21/2014 - 8:49am
quiknkoldThere's some more tweets regarding it with more pictures09/21/2014 - 8:09am
quiknkoldMilo Yiannopoulos was mailed a syringe filled with clear liquid. He claims it's anti gamergate harassment. Mentioned on his twitter twitter.com/Nero/status/51366668391625523209/21/2014 - 8:07am
Andrew EisenNow, having said that, what sites are you reading that are claiming that if "you self-identify as a Gamer, you're immediately the problem" or that gamers are "obligated to stop harassment"? Or was that hyperbole too?09/21/2014 - 1:03am
Andrew EisenFirst of all, ONE person in the Shout box suggested an obligation to call harassers out on their harassing but only after YOU brought it up. Plus, Techno said "when you see it happening." If you don't see it, you're not under any obligation.09/21/2014 - 1:02am
Sleaker@Craig R. - at this point I don't even know what the hashtags are suppsed to be in support of. what does GamerGate actually signify.09/21/2014 - 12:21am
Sleaker@AE - Hyperbole for the first 2, but it seems like some of the comments in the shout are attempting to place blame on fellow gamers because they aren't actively telling people to stop harassing even though they don't necessarily know anyone that has.09/21/2014 - 12:16am
Andrew EisenSleaker - Who the heck are you reading that is claiming "all gamers are bad," we "need to pass laws or judgement on all gamers," that if "you self-identify as a Gamer, you're immediately the problem," or that gamers are "obligated to stop harassment"?09/20/2014 - 9:44pm
erthwjimhe swatted more than just krebs, I think he swatted 30 people http://krebsonsecurity.com/2014/05/teen-arrested-for-30-swattings-bomb-threats/09/20/2014 - 9:31pm
Craig R.Btw, the guy who swatted security expert Brian Krebs? He got picked up recently. It can be done.09/20/2014 - 8:55pm
Craig R.Such things are not done in a vacuum... hence why the 4chan and other logs show what fools you've all been, tricked into doing the trolls' work09/20/2014 - 8:49pm
Sleaker@Technogeek - How do you call someone out that anonymously calls in a SWAT team, or sends threats to people?09/20/2014 - 7:04pm
Technogeek"It also doesn't mean you're obligated to stop harassment from all gamers that are doing so." I'd say you're certainly obligated to call them out when you see it happening.09/20/2014 - 5:17pm
SleakerNow if you disagree with anything in my last 2 posts then we obviously have a difference in world view, and wont come to any sort of agreement. I'm fine with that, maybe some people aren't?09/20/2014 - 5:09pm
SleakerIt also doesn't mean that just because a news outlet says that Gamers are the problem and you self-identify as a Gamer, you're immediately the problem. It also doesn't mean you're obligated to stop harassment from all gamers that are doing so.09/20/2014 - 4:59pm
SleakerJust to re-iterate: People getting harassed is wrong. Just because someone is harassed by so called 'gamers' doesn't mean that all gamers are bad. nor does it mean that you need to pass laws or judgement on all gamers.09/20/2014 - 4:56pm
 

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