Friday, October 1, 2010

The Business of Invention

Paul Allen, co-founder of Microsoft, is suing as many top tech companies as he can think of. Paul Allen's firm Interval Licensing is “trolling” (if you don't mind the pun”) through deep waters, ironically including Microsoft. Interval Licensing claims that four patents about improving user's online experience are allegedly being violated. Facebook's response is that Interval Licensing is “trying to compete in the courtroom instead of the marketplace.” Though his view is likely correct from a business perspective, Facebook wants to have its cake and eat it too. By which I mean utilize protections for itself but deny it to others. If Facebook is an infringer, then we can infer that competing in the marketplace means undercutting law and no different then committing fraud or anti-trust violations. It is more likely the case that Interval Licensing is betting that the accused companies will rather settle then pay the cost of litigation. So, in regards to Facebook's response, I would say Interval Licensing IS competing in the marketplace and not the courtroom, or in the least we can see that avoiding the courtroom is a "market" where we can find a lot of money transferring hands.

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