For the past several months, we’ve exposed the flaws in the patent system and how they’re being exploited by opportunistic patent trolls looking to extort a quick buck – or hundreds of thousands of bucks, if you will – from businesses large and small. It’s a drain on innovation, a plague to all of technology and a drag on the economy.
I spoke several times recently mostly promoting Google Glass (so much so that a few people are wondering if Google is paying me, I assure you I bought my own Google Glass for $1,500 and Google isn’t paying me).
What really drives tech entrepreneurs? What makes them tick? What drew the great disruptors to technology? Rackspace On Startups is a video series that explores insights from tech evangelists and founders – from Woz to Graham Weston.
For years Senator Charles Schumer of New York has been a driving force in the battle to abolish low quality business method patents, the type that patent trolls regularly use to attack businesses with vexatious lawsuits. He authored Section 18 of the America Invents Act, which is known as the transitional program for covered business method patents.  The purpose of the program is to create an effective and fair post grant review for business method patents used in the “practice, administration, or management” of a financial product or service.
We’ve been vocal in our opposition of patent trolls and their attempts to extort settlements from businesses that actually create value. And we’ve done more than talk—in the past month, we fought a troll in court, and won, and we turned the tables on another, suing them in Federal Court.
Today we drove a stake into the ground in our dogged fight against patent trolls – we sued one of the most notorious patent trolls in America.
Jonathan Siegel is a repeat entrepreneur, angel investor, father of six and leader of Exceptional Cloud Services – Rackspace’s most recent acquisition.
Score one for the good guys. Rackspace and Red Hat just defeated Uniloc, a notorious patent troll. This case never should have been filed. The patent never should have been issued. The ruling is historic because, apparently, it was the first time that a patent suit in the Eastern District of Texas has been dismissed prior to filing an answer in the case, on the grounds that the subject matter of the patent was found to be unpatentable. And was it ever unpatentable.
On Thursday March 14, 2013 the House Subcommittee on Courts, Intellectual Property and the Internet held an important hearing entitled “Abusive Patent Litigation: The Impact on American Innovation & Jobs, and Potential Solutions.” Judiciary Committee Chairman Bob Goodlatte of Virginia summed up the patent troll problem perfectly in his prepared remarks:
Is cloud computing another arcane term from the technology industry? You bet. But it’s also the most revolutionary set of capabilities the industry has offered in a generation. Much like the Internet and eCommerce technologies that transformed the relationship between businesses and customers, cloud computing is poised to have a similar impact. In this case, though, that impact is on the relationship between businesses and their information technology (IT) departments.
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