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Patent troll sued by cable companies but Huawei settles

Although Rockstar claim to “celebrate the value and power of innovation,” five cable companies are attempting to get it to stop bullying tech companies. They have filed a suit claiming Rockstar refused to discuss licensing terms and is unfairly demanding royalties for unspecified patents. The filing also says that Rockstar tried to force the cable companies into non-disclosure agreements to stop them discussing the details with other companies. The suit is asking the court to punish Rockstar for conspiracy and for misusing patents.
We celebrate the value and power of innovation: the ideas that fuel a better way of doing things.
In a motion filed this week both Huawei and Rockstar jointly requested dismissal of the lawsuit. Although the filing did not specify that a settlement had been reached, it is likely that a deal has been done. If a deal has been made and Huawei are comfortable with the terms (meaning they aren’t outrageous) then it could pave the way for other companies to settle. Since Rockstar paid $4.5 billion for the Nortel patents the company is probably looking for lots of money to cover its expenses. But it is unlikely that the consortium will be as accommodating with Google and Samsung. as it has been with Huawei.
Google is accused of infringing seven of Rockstar’s patents all of which are related to technology that helps match search terms to advertising. Since advertising is Google’s main source of income such a lawsuit could be potentially harmful. Google isn’t taking this beating laying down and has counter sued Rockstar saying that the company is unfairly targeting Google’s Android partners and customers.
One bit of good news is that Bloomberg reported in December that the consortium was in talks to sell some of its IP because it hasn’t been able to obtain that many licensing agreements.
What do you think? Should patent trolls be banned or are they an important way of protecting innovation?