Saturday, April 19, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Google wins $1 victory against patent owner harassing customers

By
January 28, 2014 | Leave Comment

WASHINGTON — A $1 victory for Google could mean a whole lot more in savings for some of its customers.

A federal jury in Marshall, Texas, said Jan. 23 that patent-licensing company Beneficial Innovations breached a settlement agreement with Google by suing its customers. The jury awarded nominal damages of $1, which was all Google sought because its main goal was to make clear that its customers were covered by the license.

The case illustrates how technology companies are fighting patent-licensing firms that sue their customers. Companies such as Google and Adobe are increasingly challenging patents in courts and before the U.S. Patent and Trademark Office, and are asking Congress to pass legislation to discourage lawsuits against the users of technology.

“We have the resources, we understand the technology, we know how our product is supposed to be used, and we’re in the best position to defend our customers,” said Dana Rao, associate general counsel at Adobe, which has sued patent- licensing companies on behalf of its customers.

Closely held Beneficial, incorporated in Nevada, filed patent-infringement suits against Google in 2007 and 2009, and the two sides reached an agreement in which Google paid for a license to the patents. That 2010 accord also covered customers using Google’s DoubleClick advertising product including Autotrader.com and Demand Media, Mountain View-based Google said.

“Beneficial went back on the terms of its own license agreement, pursuing our customers for simply using our licensed services,” Matt Kallman, a Google spokesman, said in a statement. “This is a great outcome that the jury worked hard to get right.”

The patents relate to playing games on a network and a networking system for advertising. Beneficial argued that the customers were only licensed under certain circumstances, which didn’t apply in this case, according to court records. Beneficial lawyer Elizabeth DeRieux of Capshaw DeRieux in Gladewater, Texas, didn’t provide a comment.

The tactic by technology companies of claiming customers are covered by a patent license has its limits. Apple sought to invalidate patents asserted against developers of applications for its iPhone and iPad tablet computer. The patent owner, Lodsys LLC, settled with all of Apple’s customers, thus pushing Apple out of the case, and then proceeded against other developers.

Federal law says suits can be filed against anyone who makes, uses, sells or offers to sell a product that infringes a U.S. patent. Sometimes the product manufacturer can’t be identified, isn’t subject to the jurisdiction of U.S. courts because it only operates overseas, or the product is modified by the customer.

In those instances, users or sellers have to be sued, said Robert Stoll of Drinker Biddle in Washington, who formerly ran patent operations at the patent office.

It’s only been since 2011 or so that firms who buy up patents to seek royalties, known by the pejorative “troll,” have been going after the users of products made by well-known companies like Google and Adobe, Rao said.

The technology companies can be made to cover any lawsuit costs incurred by their customers, so resolving a single suit avoids multiple payouts. It also just makes good business sense.

“People want to make sure they’ve got their reputation maintained with their user community,” Stoll said. “I wouldn’t be buying their products if they didn’t step in to protect me.”

If a company proves its product doesn’t infringe a patent, then all of its customers are off the hook. Should the company invalidate the patent, then anyone sued by the patent owner would be in the clear. Adobe has several trials scheduled for this year, Rao said.

“We’ll use all of the tactics to try to take down the patent trolls,” Rao said. “The problem is that, while we’re able to step in and defend our customers in many district courts, the pace of these litigations is just growing.”

Congress is considering legislation that would put suits against end users on hold until litigation is resolved between the manufacturer and patent owner.

In the meantime, more suits like those filed by Google and Adobe, could be in the offing.

“It makes good company sense,” Stoll said.

Bloomberg News

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

Transplant recipients talk about their best gifts

By Amy Maginnis-Honey | From Page: A1 | Gallery

 
Solano unemployment inches downward

By Barry Eberling | From Page: A1

 
Spering, Bertani spar over fighting crime

By Ryan McCarthy | From Page: A3, 5 Comments | Gallery

 
Fairfield council candidates weigh in on crime

By Ryan McCarthy | From Page: A3 | Gallery

 
Police release name of woman found dead in Fairfield canal

By Ryan McCarthy | From Page: A3 | Gallery

 
Five homes featured on Symphony Home Tour

By Amy Maginnis-Honey | From Page: A4

Congregation invites public to Easter music, message

By Amy Maginnis-Honey | From Page: A4

 
Jury acquits substitute teacher in child abuse case

By Jess Sullivan | From Page: A4

Weather for April 19, 2014

By Daily Republic | From Page: B13

 
.

US / World

California farmers to get more water

By The Associated Press | From Page: A1

 
Teen sentenced in Oakland toddler’s killing

By The Associated Press | From Page: A4

More Latino than white students admitted to UC

By The Associated Press | From Page: A4

 
3 alleged gang members convicted of murder

By The Associated Press | From Page: A5

Health care site flagged in Heartbleed review

By The Associated Press | From Page: A5

 
From Clinton to Obama, many parallels

By The Associated Press | From Page: A5

Study: Half of jailed NYC youths have brain injury

By The Associated Press | From Page: A5

 
PG&E to be arraigned in fatal pipeline blast

By The Associated Press | From Page: A5

Mom and son who died in San Francisco fire ID’d

By The Associated Press | From Page: A5

 
Easter on 4/20, pot holy day; pastors reach out

By The Associated Press | From Page: A8

Colorado deaths stoke worries about pot edibles

By The Associated Press | From Page: A8

 
NASA’s moon-orbiting robot crashes down as planned

By The Associated Press | From Page: A8

Atheist national conference aims at Mormon church

By The Associated Press | From Page: A8

 
Some countries get Obama, but want his wife, too

By The Associated Press | From Page: A9

Man who avoided prison is overwhelmed by support

By The Associated Press | From Page: A9

 
Teen suspended for asking Miss America to prom

By The Associated Press | From Page: A9

White House updating online privacy policy

By The Associated Press | From Page: A9

 
SpaceX making Easter delivery of station supplies

By The Associated Press | From Page: A9

Sudden movement raises alarm in Wyoming slide area

By The Associated Press | From Page: A9

 
In Egypt, a corruption watchdog hit by backlash

By The Associated Press | From Page: A12

Military scales down, modifies Guam buildup plan

By The Associated Press | From Page: A13

 
Captain of sunken SKorean ferry arrested

By The Associated Press | From Page: A13

Avalanche sweeps down Everest, killing at least 12

By The Associated Press | From Page: A13

 
57-nation OSCE plays key Ukraine monitoring role

By The Associated Press | From Page: A14

Ukraine crisis: The turning points

By The Associated Press | From Page: A14

 
Diplomacy doesn’t move insurgents in Ukraine

By The Associated Press | From Page: A14

Magnitude-7.2 earthquake shakes Mexican capital

By The Associated Press | From Page: A14

 
.

Opinion

Here we go again in Sacramento

By Letter to the Editor | From Page: A11

 
.

Living

.

Entertainment

Prince reaches agreement with music label

By The Associated Press | From Page: B14

 
‘The Boondocks’ back for final ‘offensive’ season

By The Associated Press | From Page: B14

A nutty finale for ‘Scandal,’ TV’s craziest show

By The Associated Press | From Page: B14

 
Stratocaster still a favorite at 60

By The Associated Press | From Page: B14

.

Sports

Big innings lift Mustangs over Indians

By Paul Farmer | From Page: B1 | Gallery

 
Hertl has impressive playoff debut for Sharks

By The Associated Press | From Page: B1

Warriors and Clippers take dislike to playoffs

By The Associated Press | From Page: B1

 
Ross, Padres beat Cain and Giants 2-1

By The Associated Press | From Page: B1 | Gallery

A’s come out swinging to beat Astros 11-3

By The Associated Press | From Page: B1

 
Warriors to start O’Neal for Bogut vs. Clippers

By The Associated Press | From Page: B1

Nadal ousted by Ferrer in Monte Carlo quarters

By The Associated Press | From Page: B2 | Gallery

 
A’s lefty reliever Doolittle gets 5-year deal

By The Associated Press | From Page: B2 | Gallery

’40-and-up club’: Ageless Hopkins after more belts

By The Associated Press | From Page: B2

 
Jimenez shoots 65 to lead Greater Gwinnett field

By The Associated Press | From Page: B2

Solano scores in ninth for 2-1 BVC baseball win over Yuba

By Daily Republic staff | From Page: B2

 
Choi leads rain-delayed RBC Heritage

By The Associated Press | From Page: B2 | Gallery

NBA’s Silver wants age limit change, no rush on others

By The Associated Press | From Page: B2

 
NBA playoffs looking more wide-open than expected

By The Associated Press | From Page: B2

Source: Grizzlies’ G Calathes suspended for 20 games

By The Associated Press | From Page: B2

 
Avalanche sweeps down Everest, killing at least 12

By The Associated Press | From Page: B2

Mets trade 1B Ike Davis to Pirates

By The Associated Press | From Page: B2

 
TNT’s Sager to miss NBA playoffs due to leukemia

By The Associated Press | From Page: B2

.

Business

Judge says American can’t end retiree benefits yet

By The Associated Press | From Page: B10

 
Mazda recalls 109,000 older SUVs for rust problem

By The Associated Press | From Page: B10

5 features an Amazon phone might offer

By The Associated Press | From Page: B10

 
.

Obituaries

Sealwyn Shirley Brucefield Shepherd Malkiewicz

By Nancy Green | From Page: A4

 
.

Comics

Sally Forth

By Daily Republic Syndicated Content | From Page: B6

 
.

Home Seller 04/19/14

Summerwood features 8 new homes in Suisun

By Daily Republic | From Page: HSR2

Real estate transactions for April 19, 2014

By Daily Republic | From Page: HSR3

Average US 30-year mortgage rate falls to 4.27 percent

By The Associated Press | From Page: HSR3