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Archive for July, 2008

…Companies Band Together as the Allied Security Trust to Buy IP Before Any Trolls Can Take Them To Court
By: Maureen O’Gara
Jul. 9, 2008 02:45 AM

Source: http://wireless.sys-con.com/node/605480

“Verizon, Google, Cisco, HP, Motorola, Sun, Telefon AB and Ericsson have banded together as the Allied Security Trust to buy IP before any trolls can take them to court.

They’ve paid $250k to join and are each kicking it about $5 million in funding. They will then get non-exclusive licenses to the acquired technology and afterwards sell it on. The non-profit calls the concept “catch and release.” It currently has 11 members and is expecting 30-40.

It swears it won’t assert any of the acquired patents.

According to the new non-profit, It costs operating companies an average of $3.2 million through the end of discovery and $5.2 million through trial to defend infringement cases when there is more than $25 million at stake. It says “even a small claim is highly disruptive and requires significant time and legal costs to defend.”

It says companies often settle for a smaller amount than whatever is sought, even when the company knows that it would eventually win. “These lawsuits are not only a huge distraction for management, but they also draw R&D and other resources away from other projects.”

The place is being run by former IBM VP of IP and licensing Brian Hinman.”

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