Myhrvold, Jung, Microsoft and the Patent Portfolio game of "Intellectual Ventures"
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Myhrvold's "Intellectual Ventures" is buying up thousands of patents with money from companies such as Microsoft, Intel, Sony, Nokia, Apple, Google and eBay, in an attempt to create a large patent portfolio. One of the reasons is to buy out small patent trolls, so the big companies do not have to fear lawsuits from them. Another is however obviously offensive usage (royalty extraction), given the fact that "they charge that Silicon Valley companies have stolen other people's inventions for too long".
News & Chronology
Outline
- article in 2004-11-22 issue of Newsweek
Nathan Myhrvold
- multimillionaire
- former chief technologist of Microsoft
- currently study for the patent bar exam
Edward Jung
- former chief software architect of Microsoft
Intellectual Ventures Inc
founded by Myhrvold & Jung in 2003
Funded by Microsoft, Nokia etc
"Sources familiar with Myhrvold's strategy say that he has raised $350 million from some of the largest companies in high tech: Microsoft, Intel, Sony, Nokia and Apple. Google and eBay also recently invested.
Buying up Software Patents for a Portfolio Strategy
An Intellectual Ventures e-mail sent to law and consulting firms last year, and obtained by NEWSWEEK, says the company is "interested in purchasing patents and applications in the areas of software, e-commerce, communications, semiconductors, consumer electronics and computer architecture--basically, just about anything that deals with bits."
Myhrvold .. charges that Silicon Valley companies have stolen other people's inventions for too long while slashing their own R&D budgets. Referring to Intellectual Ventures' portfolio of patents as his own, he says, "If giant corporations are making billions of dollars off my ideas, I want something for it, and I don't think there is anything wrong with that." ... He also cites as a model the electronics companies that pool their DVD patents.
Invention Sessions
Newsweek writes:
- "To generate patentable ideas, Intellectual Ventures hired a dozen top scientists as part-time consultants to participate in several all-day gabfests each month, which the company calls "invention sessions." Lawyers transcribe the discussions ... and follow up on the most promising ideas with patent applications."
Similar sessions have been regularly conducted by HP and other companies for many years under similar labels.