Re:Universities have turned over hundreds of patents to pate...
by ron0c on Friday October 14, 2016 @03:28PM
(#12710474)
You will notice that University of Wisconsin Madison is not on that list. This is because Dr. Harry Steenbock (https://en.wikipedia.org/wiki/Harry_Steenbock) with fantastic vision started the Wisconsin Alumni Research Foundation (WARF http://www.warf.org/about-us/about-us.cmsx) where discoveries made at UW get the help of the team of lawyers to guide through the patent process while the royalties paid then go back to the university. Starting with his discovery on fortifying food with Vitamin D by method of ultraviolet light in 1925.
WARF is an enormous success at UW and last year alone contributed over $100 million back to the university.
Re:Universities have turned over hundreds of patents to pate...
by jessaustin on Friday October 14, 2016 @04:38PM
(#12710922)
If one were a cynic, one might suspect that UW is just playing the troll itself. Assuming that it isn't, what controls are in place that help UW avoid registering and then seeking royalties on trivial patents? If administrators decided that WARF should instead contribute $200M yearly, wouldn't the resulting patent inflation carry the whole operation into troll territory?
The intention is more of "hey entrepreneurs, we've got this technology developed in academia - if you see a business model based on this, talk to us so you can use it."
Of note, if you follow the 'technologies - information technology - software' path, you'll note that none of these are actually patents. They're listed as "technologies" instead.
There do appear to be some patents listed... things like low profile, ultra wide band antenna and wideband transceiver for antenna array.
All that said, one of the distinctions between the patent troll and the warf is that of "the warf is seeking business partnerships for people to use technologies, inventions, and patents developed at the university of madison" and the troll is "buying patents from one party and suing another party for royalties." The business model for the two is completely different.
Re:Universities have turned over hundreds of patents to pate...
by Panino on Friday October 14, 2016 @03:36PM
(#12710526)
Related: publicly funded research that leads to privately held patents results in a form of double taxation. The consumer pays taxes to create the product, then turns around and pays patent-level pricing to buy/use it.
Re:Universities have turned over hundreds of patents to pate...
by yladiz on Friday October 14, 2016 @02:46PM
(#12710239)
It makes me sad that my alma mater is listed as one of the top 10. If you're like me and see that, forward this article to the provost of your school or the dean of your college and let them know you're not OK with this as an alumni. Of course there's no "take backsies" but at least we can try to do something to stop the spread of patents to patent trolls.
Re:Universities have turned over hundreds of patents to pate...
by URSpider94 on Friday October 14, 2016 @03:00PM
(#12710322)
I would like to know more. My experience with university license teams has been that they rarely sell patents to anyone -- for the most part, they provide a license. In the deals I've been involved with, the license specifically requires that the licensee be practicing the patent within some period, or the license is canceled.
I'm curious if these represent cases where the universities sold patents to practicing entities, and then they got shuffled over to trolls in liquidation sales or re-orgs?
Re:Universities have turned over hundreds of patents to pate...
by devilsavocado on Friday October 14, 2016 @03:25PM
(#12710467)
The fact that you can just sell patents always seemed a little bit off to me. Does that really further the purpose of a patent? I understand that we can't just ban the selling of patents, but there must be a better way to avoid situations like these where the patent is not used to reward the innovator.
Re:Universities have turned over hundreds of patents to pate...
by Grishnakh on Friday October 14, 2016 @05:32PM
(#12711249)
If I were dictator, I'd definitely ban the selling of patents.
I'd also ban the assigning of patents to corporations; they would only be owned by the original people who filed them. So corporations could only benefit from those patents as long as the patent-holders were employees (or at least one of the patent-holders if there's multiple), by being allowed to use the patent license-free.
>I understand that we can't just ban the selling of patents
Why not? We can ban anything we want as long as it's not unconstitutional. The question is if a ban of something has more negative effects than positive. I don't see how it would here.
Re:Universities have turned over hundreds of patents to pate...
by the_watcher on Friday October 14, 2016 @04:49PM
(#12710996)
The answer, to me, is to focus on eliminating patent trolls. I haven't thought this one through much, but something like requiring a minimum percentage of revenue to come from non-patent related activity might be a good start.
Re:Universities have turned over hundreds of patents to pate...
by nickpsecurity on Friday October 14, 2016 @05:58PM
(#12711425)
I was thinking the patent owner must be building, maintaining, and/or selling a product it covers with at least the amount of labor and updates as average competing product or IT project. Originally the benchmark was vs fastest-developing competitor to incentivize Shenzhen-like innovation with some patent protection for incentives. I thought quality might tank further, though, so leaned toward average.
Re:Universities have turned over hundreds of patents to pate...
by compsciphd on Saturday October 15, 2016 @08:21PM
(#12716236)
The problem with this is, I can invent something, describe in detail how to build it, but have no ability to build it myself as a product. For example, imagine I invented a better type of flip-flop circuit. Its only useful to people building microprocessors, but under your logic I shouldn't get any benefit for creating a better way for them to build microprocessors because I don't build them myself.
Re:Universities have turned over hundreds of patents to pate...
by nickpsecurity on Saturday October 15, 2016 @09:25PM
(#12716385)
I don't any benefit for anything I do personally or commercially outside whatever people paid me initially. Why should you get a monopoly on an idea because you were lucky enough to think of it first? And in a country where monopolies are banned due to negative impact on society in about every other field? So I'm against the monopolies to begin with.
Even if we accept patents, then you can be required to partner with a manufacturer within a certain period of time. This kind of thing might already exist if we compare it to the record labels for turning copywritten songs into fortunes for labels and authors. Similar middle-men would show up plus DIY kits, consultants, and advice on doing it yourself. The risks you face wouldn't be much different from the current market where trolls like Intellectual Ventures convince broke patent holders to give it to them for pennies using pressure of their bargaining power then make millions off them in law suits.
Re:Universities have turned over hundreds of patents to pate...
by rpenm on Friday October 14, 2016 @07:33PM
(#12711830)
>The fact that you can just sell patents always seemed a little bit off to me.
It is a long way from a patentable idea to a marketable product. So what happens when the patent originator lacks the competencies or capital to produce at scale? If selling a patent was banned, both the innovator and society would be denied any benefit from the innovation.
Re:Universities have turned over hundreds of patents to pate...
by chrismcb on Sunday October 16, 2016 @01:26AM
(#12717123)
It absolutely furthers the purpose of the patent. As a small time inventor what us my incentive to invent, if I don't have the resources myself? One thing I could do is sell my patent and go invent something new.
Re:Universities have turned over hundreds of patents to pate...
by jxramos on Friday October 14, 2016 @04:23PM
(#12710811)
Ding dang UC's letting us down! I really enjoy reading articles that are data driven. I feel like the frequency of such things is on the increase and something just feels good about that showing up in journalism with data I assume can be openly verified with. Someone just posted some interesting data driven analysis of OkCupid data that was pretty intriguing.
Re:Universities have turned over hundreds of patents to pate...
by diogenescynic on Friday October 14, 2016 @04:47PM
(#12710987)
The UCs really aren't what they used to be. The Chancellor at UC Davis had her own students pepper sprayed for a peaceful protest and had a paid board seat at Devry. The UCs are run by crooks and they continue to rip off their students. I regret giving my money to the UC system and if I have kids, will guarantee to send them somewhere else.
Re:Universities have turned over hundreds of patents to pate...
by jxramos on Monday October 17, 2016 @01:55PM
(#12727395)
Apparently. I was really shocked to see UC Berkeley being discussed in City Journal for budgeting problems (http://www.city-journal.org/html/how-uc-berkeley-can-dig-out...). I never heard of such craziness before. To think tuition went up year after year, it's like the never drying well. I think when money flows it's not very hard to convince folks to go crazy during the heyday to ride the wave as long as it lasts. Cant' blame folks for losing to temptations during such windfalls I guess.
Re:Universities have turned over hundreds of patents to pate...
by abpavel on Friday October 14, 2016 @05:08PM
(#12711096)
The primary motivation of a student is to attain a systemic improvement in a body of knowledge, but also to open ones eyes to the realities of the world around us, including socializing and being pepper sprayed. UC is great at all of those. That's why there are so many Nobel prize winners there.
Re:Universities have turned over hundreds of patents to pate...
by andyh2 on Friday October 14, 2016 @10:02PM
(#12712399)
I'm a UC Davis student. Agreed, our previous chancellor was not a model public servant. We need a chancellor who can solicit tons of money and has a decent character.
If you're a California resident, UC is a deal compared to private and out-of-state public options. UC guarantees free tuition (grant, not loan) for in-state students with family income under $80,000.
On the other hand, out of state and international students pay full ticket and subsidize the rest of the students.
The real rip-off for UC students is in the large class sizes and inexperienced lecturers and grad students at the podium. Large research institutions are having a lot of trouble ensuring quality of education as enrollments increase and student bodies diversify.
Re:Universities have turned over hundreds of patents to pate...
by tzs on Friday October 14, 2016 @11:23PM
(#12712575)
The author seems to be implicitly assuming that Intellectual Ventures is just a patent troll.
IV's business is much more than that. Besides buying outside commercially developed patents (similar to what a troll does), they also employ scientists and engineers directly to develop new things that IV can patent, and they fund outside researchers in exchange for patent rights.
At least some of the university patents IV has acquired were through such deals, where IV provides funding for the academic research that leads to the patent, and then IV gets commercialization rights to the patent, with the university getting a cut of any licensing fees IV gets from those patents.
Re:Universities have turned over hundreds of patents to pate...
by agjacobson on Friday October 14, 2016 @05:05PM
(#12711085)
It's really outrageous.
University research publications behind paywalls, but paid for by us. Now patents, the development paid for by us, in the hands of trolls. And public universities involved.
This privatization is outrageous.
Re:Universities have turned over hundreds of patents to pate...
by rayiner on Friday October 14, 2016 @05:10PM
(#12711101)
Just because university research is paid for by the public does not mean that all the results should be in the public domain. It would be absurd, for example, for a VC to demand 100% of a company's equity in return for providing the funding necessary to keep the lights on while a product is developed.
There is a long history of innovation happening from universities spinning-off patented technology into private companies. E.g. what John Hennessy did with MIPS. It's a great model. If you get rid of it, you'd turn universities into ivory-tower ghettos where researchers would only go if they had no desire to make money.
Re:Universities have turned over hundreds of patents to pate...
by agjacobson on Friday October 14, 2016 @05:32PM
(#12711247)
You have a good point.
What I don't see is:
(1) Some control over professors running outright businesses, and once tenured, putting much of their effort into those businesses, while still drawing senior-level pay. I don't claim this is common. But it is a major moral hazard.
(2) Little compensation for graduate students whose contributions range from scutwork to the critical innovation involved. They have to execute the technology in the lab -- in industry, this is most prized, not "the idea." What mechanism is their for fairness here? Oh, right, they're getting a free education. OK. But what if the university earns $10's of millions of dollars off their labor?
(3) When professors innovate in active commercial markets, rather than in really bleeding edge areas, there is an intrinsic unfairness. In essence, the government, through its funding, is picking winners.
It is a defense if the overall society is improved. If professors get rich, that's also fine.
Re:Universities have turned over hundreds of patents to pate...
by Grishnakh on Friday October 14, 2016 @05:27PM
(#12711215)
VCs aren't spending my money. Universities are, because they're subsidized by taxes. If they want to make money which says in private hands, they can do it with their own money, not taxpayer funds. Universities were never meant to be profit-generating entities, but institutions of learning. The people in universities should be happy to have a cushy, tenured academic job; people who have a serious "desire to make money" (beyond that of a professor's salary, which is both good and very stable) don't belong at universities at all, they should be working in the private sector.
Re:Universities have turned over hundreds of patents to pate...
by rayiner on Friday October 14, 2016 @05:33PM
(#12711252)
> VCs aren't spending my money.
Money is money. From the perspective of the incentives of the hypothetical researcher, it's irrelevant where the money comes from. If the government demands 100% equity in return for investment, it just becomes the least competitive VC on the market, doomed to fund the least compelling projects.
> The people in universities should be happy to have a cushy, tenured academic job; people who have a serious "desire to make money" (beyond that of a professor's salary, which is both good and very stable) don't belong at universities at all, they should be working in the private sector.
Strongly disagree. One of the reasons the U.S. has hands-down the best engineering universities in the world is because of the fluid boundary between academia and the private sector. Filling universities with people who just want a cushy academic job is a great way to make academic research completely irrelevant.
Re:Universities have turned over hundreds of patents to pate...
by AnthonyMouse on Friday October 14, 2016 @06:18PM
(#12711538)
> If the government demands 100% equity in return for investment, it just becomes the least competitive VC on the market, doomed to fund the least compelling projects.
If the government demands 100% equity then research that can support itself will be funded by the private sector and the government will be left funding research the private sector won't because the benefits are diffuse and the transaction costs of licensing would be prohibitive, and foundational research that won't bear fruit for several years, and high-cost high-risk high-reward research that the private sector won't fund because individual private sector entities don't have the requisite scale to survive the failure of a high-cost high-risk investment.
Which is as it should be. Why does the government need to be wasting tax dollars on research the private sector would do on its own?
Even for research the private sector might fund anyway, all it means is that the government to be competitive would have to pay the researchers more up front rather than after the fact with a patent, which could still bring about an efficiency improvement by eliminating the patent prosecution and licensing overhead.
> One of the reasons the U.S. has hands-down the best engineering universities in the world is because of the fluid boundary between academia and the private sector.
There is a difference between not patenting something and preventing the original researchers from benefiting from it. Not having a patent doesn't prevent them from commercializing the research, it just doesn't give them a monopoly -- they still have the knowhow and first to market advantage if they want it.
They could even patent the commercialization itself if that wasn't funded by the government, provided it's enough of an improvement over the now-prior-art government-funded research to be awarded a patent. And if it isn't then why should they have one?
Re:Universities have turned over hundreds of patents to pate...
by nickpsecurity on Friday October 14, 2016 @05:54PM
(#12711385)
I disagree on least compelling. Lots of the best stuff coming out of DARPA and NSF research is either not commercialized or could allow for competing implementations while giving innovater first-mover advantage. Smart people interested in impacting the world will do so regardless of whether they can start a business. Many of the great ones actually just continue as researchers since that's their passion.
Re:Universities have turned over hundreds of patents to pate...
by rayiner on Friday October 14, 2016 @06:11PM
(#12711510)
First mover advantage has little value in the industries DARPA and NSF find. And both DARPA and NSF (by design) allow companies receiving grants to patent the results of their research.
That is not to say that all DARPA and NSF-funded research should be patented. To the extent the research is more fundamental and less applied it shouldn't be. But DARPA and NSF fund both theoretical and applied research and so do universities.
Re:Universities have turned over hundreds of patents to pate...
by nickpsecurity on Friday October 14, 2016 @06:37PM
(#12711626)
I know they fund the companies. I was just saying the people getting that funding often work for universities that wouldve built it any way whether a patent or not. Lots of top-tier results come from that. So, I dont think switching to that model exclusively would make less compelling results. It might reduce the number or change university/private ratio of where innovations come from.
Re:Universities have turned over hundreds of patents to pate...
by harryh on Friday October 14, 2016 @05:56PM
(#12711394)
Universities (especially top tier ones) aren't just institutions of learning(1) but also knowledge generation organizations. Not allowing the people who actually generate new knowledge to share in the financial benefits would run counter to this goal.
1. I would even go so far as to argue that for top tier institutions that teaching isn't even their primary function.
Re:Universities have turned over hundreds of patents to pate...
by Grishnakh on Wednesday October 19, 2016 @10:34AM
(#12744122)
No problem: then just cut off all public funding for these institutions and make them entirely private (they need to pay back the State for the money they've received though).
If you want to privatize profits, you need to privatize the costs too. Don't ask me to fund something and not be able to share in the profits.
Re:Universities have turned over hundreds of patents to pate...
by harryh on Wednesday October 19, 2016 @10:57AM
(#12744350)
You don't have rights to the salaries that public university graduates are able to earn based upon their degrees. Why would you expect to have rights to the profits earned based upon the knowledge generated by these institutions?
The plan you describe would lead to far less fruitful basic research and a poorer world as a result.
Re:Universities have turned over hundreds of patents to pate...
by Grishnakh on Friday October 21, 2016 @10:35AM
(#12760771)
Holy shit. Maybe because I'm a part-owner in this institutions? Would you think it fair for a private company to take my money as investment money, and give me nothing in return, and keep all the profits for themselves?
I've never met anyone who actually believed in "privatize the profits, socialize the losses", but here you are.
And your claims about basic research and a poorer world have no evidence whatsoever to back them up. Universities have not always been this way.
Re:Universities have turned over hundreds of patents to pate...
by CamperBob2 on Friday October 14, 2016 @05:25PM
(#12711202)
It would be absurd, for example, for a VC to demand 100% of a company's equity
It's a school, not a business. The idea that there's supposed to be any equity is novel, to put it mildly.
Your analogy would make more sense if it described a hypothetical VC who puts in 100% of the money in exchange for no equity at all, because the company is holding a gun to his head.
Re:Universities have turned over hundreds of patents to pate...
by bogomipz on Friday October 14, 2016 @07:50PM
(#12711895)
I have a question, aren't some of these public universities in some part subsidized by tax payer money at the state level?
If this is true, should these patents be exclusive domain of these school's to profit from exclusively? It seems to me that selling patents to these litigious entities impedes progress that might otherwise benefit the same tax paying public that helped underwrite at least some of the research.
Am I looking at this wrong?
Maybe there are lots of other nuances that my oversimplification doesn't account for. I would be curious to hear what those are if so.
Re:Universities have turned over hundreds of patents to pate...
by Amorymeltzer on Friday October 14, 2016 @07:31PM
(#12711826)
It's the whole system. The UC schools are under direct administration of the UC Office of the President, whereas my understanding of Texas is that the University of Texas System schools are independently-run.
WARF is an enormous success at UW and last year alone contributed over $100 million back to the university.
The intention is more of "hey entrepreneurs, we've got this technology developed in academia - if you see a business model based on this, talk to us so you can use it."
Of note, if you follow the 'technologies - information technology - software' path, you'll note that none of these are actually patents. They're listed as "technologies" instead.
There do appear to be some patents listed... things like low profile, ultra wide band antenna and wideband transceiver for antenna array.
All that said, one of the distinctions between the patent troll and the warf is that of "the warf is seeking business partnerships for people to use technologies, inventions, and patents developed at the university of madison" and the troll is "buying patents from one party and suing another party for royalties." The business model for the two is completely different.
It's at least Triple taxation.
Quadruple taxation for the underpaid grad students working on the research to get their degree?
I'm curious if these represent cases where the universities sold patents to practicing entities, and then they got shuffled over to trolls in liquidation sales or re-orgs?
I'd also ban the assigning of patents to corporations; they would only be owned by the original people who filed them. So corporations could only benefit from those patents as long as the patent-holders were employees (or at least one of the patent-holders if there's multiple), by being allowed to use the patent license-free.
>I understand that we can't just ban the selling of patents
Why not? We can ban anything we want as long as it's not unconstitutional. The question is if a ban of something has more negative effects than positive. I don't see how it would here.
Even if we accept patents, then you can be required to partner with a manufacturer within a certain period of time. This kind of thing might already exist if we compare it to the record labels for turning copywritten songs into fortunes for labels and authors. Similar middle-men would show up plus DIY kits, consultants, and advice on doing it yourself. The risks you face wouldn't be much different from the current market where trolls like Intellectual Ventures convince broke patent holders to give it to them for pennies using pressure of their bargaining power then make millions off them in law suits.
It is a long way from a patentable idea to a marketable product. So what happens when the patent originator lacks the competencies or capital to produce at scale? If selling a patent was banned, both the innovator and society would be denied any benefit from the innovation.
If you're a California resident, UC is a deal compared to private and out-of-state public options. UC guarantees free tuition (grant, not loan) for in-state students with family income under $80,000.
On the other hand, out of state and international students pay full ticket and subsidize the rest of the students.
The real rip-off for UC students is in the large class sizes and inexperienced lecturers and grad students at the podium. Large research institutions are having a lot of trouble ensuring quality of education as enrollments increase and student bodies diversify.
IV's business is much more than that. Besides buying outside commercially developed patents (similar to what a troll does), they also employ scientists and engineers directly to develop new things that IV can patent, and they fund outside researchers in exchange for patent rights.
At least some of the university patents IV has acquired were through such deals, where IV provides funding for the academic research that leads to the patent, and then IV gets commercialization rights to the patent, with the university getting a cut of any licensing fees IV gets from those patents.
There is a long history of innovation happening from universities spinning-off patented technology into private companies. E.g. what John Hennessy did with MIPS. It's a great model. If you get rid of it, you'd turn universities into ivory-tower ghettos where researchers would only go if they had no desire to make money.
What I don't see is:
(1) Some control over professors running outright businesses, and once tenured, putting much of their effort into those businesses, while still drawing senior-level pay. I don't claim this is common. But it is a major moral hazard. (2) Little compensation for graduate students whose contributions range from scutwork to the critical innovation involved. They have to execute the technology in the lab -- in industry, this is most prized, not "the idea." What mechanism is their for fairness here? Oh, right, they're getting a free education. OK. But what if the university earns $10's of millions of dollars off their labor? (3) When professors innovate in active commercial markets, rather than in really bleeding edge areas, there is an intrinsic unfairness. In essence, the government, through its funding, is picking winners.
It is a defense if the overall society is improved. If professors get rich, that's also fine.
Money is money. From the perspective of the incentives of the hypothetical researcher, it's irrelevant where the money comes from. If the government demands 100% equity in return for investment, it just becomes the least competitive VC on the market, doomed to fund the least compelling projects.
> The people in universities should be happy to have a cushy, tenured academic job; people who have a serious "desire to make money" (beyond that of a professor's salary, which is both good and very stable) don't belong at universities at all, they should be working in the private sector.
Strongly disagree. One of the reasons the U.S. has hands-down the best engineering universities in the world is because of the fluid boundary between academia and the private sector. Filling universities with people who just want a cushy academic job is a great way to make academic research completely irrelevant.
If the government demands 100% equity then research that can support itself will be funded by the private sector and the government will be left funding research the private sector won't because the benefits are diffuse and the transaction costs of licensing would be prohibitive, and foundational research that won't bear fruit for several years, and high-cost high-risk high-reward research that the private sector won't fund because individual private sector entities don't have the requisite scale to survive the failure of a high-cost high-risk investment.
Which is as it should be. Why does the government need to be wasting tax dollars on research the private sector would do on its own?
Even for research the private sector might fund anyway, all it means is that the government to be competitive would have to pay the researchers more up front rather than after the fact with a patent, which could still bring about an efficiency improvement by eliminating the patent prosecution and licensing overhead.
> One of the reasons the U.S. has hands-down the best engineering universities in the world is because of the fluid boundary between academia and the private sector.
There is a difference between not patenting something and preventing the original researchers from benefiting from it. Not having a patent doesn't prevent them from commercializing the research, it just doesn't give them a monopoly -- they still have the knowhow and first to market advantage if they want it.
They could even patent the commercialization itself if that wasn't funded by the government, provided it's enough of an improvement over the now-prior-art government-funded research to be awarded a patent. And if it isn't then why should they have one?
That is not to say that all DARPA and NSF-funded research should be patented. To the extent the research is more fundamental and less applied it shouldn't be. But DARPA and NSF fund both theoretical and applied research and so do universities.
1. I would even go so far as to argue that for top tier institutions that teaching isn't even their primary function.
If you want to privatize profits, you need to privatize the costs too. Don't ask me to fund something and not be able to share in the profits.
The plan you describe would lead to far less fruitful basic research and a poorer world as a result.
I've never met anyone who actually believed in "privatize the profits, socialize the losses", but here you are.
And your claims about basic research and a poorer world have no evidence whatsoever to back them up. Universities have not always been this way.
I think that tenure is itself pretty much the most awesome benefit possible: guaranteed employment for life. Do they really need more?
It's a school, not a business. The idea that there's supposed to be any equity is novel, to put it mildly.
Your analogy would make more sense if it described a hypothetical VC who puts in 100% of the money in exchange for no equity at all, because the company is holding a gun to his head.
If this is true, should these patents be exclusive domain of these school's to profit from exclusively? It seems to me that selling patents to these litigious entities impedes progress that might otherwise benefit the same tax paying public that helped underwrite at least some of the research.
Am I looking at this wrong?
Maybe there are lots of other nuances that my oversimplification doesn't account for. I would be curious to hear what those are if so.
What if the school first sold it to a non-patent-troll 3rd party, and then that 3rd party transferred it to IV?
Is there a way to follow the history of a particular patent?