While the League says that big companies will use patents
against small ones, it cites no example. Two came to my
attention. (I was contacted because I had arguably relevant prior
art on the first patent.) In both, IBM sued former employees to
get ownership of patents on technology developed on their own
time, unrelated to their work and only after the technology
proved to have value in the market. IBM v. Goldwasser Civil 5:91 00021 D. Conn.: IBM
encouraged employees to develop software products on their own
time and seek patent protection for them so IBM could evaluate
them for marketing. Goldwasser developed such a software product,
but IBM rejected it; he left IBM stating he intended to pursue
his technology, as he did. Six years later, another company
introduced a product that seemed to be infringing his patents and
he sued them. That company claimed it was covered under its
cross-license with IBM; IBM sued Goldwasser to get ownership of
the patent. IBM v. Zachariades C-91 20419: Zachariades before
and while working for IBM developed on his own time a plastic
valuable to the medical industry. He kept IBM informed about what
he was doing, applied for patents, started his own company, and
licensed the technology to a medical prosthesis company. When he
was not paid, he sued and a jury awarded him $99 million IBM
"suddenly" found out what was happening and fired, and
sued, him for the the patents-telling him they did it in part to
"terrorize" other IBM employees. Companies like to hire litigators who know what it is like
from the other side. In both cases IBM is represented by the same
firm that represented Edwin Armstrong, the great inventor of
modern radio when David Sarnoff and RCA were refusing to respect
Armstrong's rights. Ken Burns tells the story in his PBS
documentary, Empire of the Air: On January 31, 1954 Edwin
Armstrong under the strain of RCA's tactics-well dressed as
always, in a suit, overcoat, scarf and gloves- jumped from his
13th floor apartment onto the third story roof of the River Club
below[29]. His widow won all the
patent suits. Having hired a firm that experienced first-hand the tactics
that caused a great inventor to kill himself, IBM should be able
to, by suing Goldwasser and Zachariades, "terrorize"
its employees. Postscript: October 30, 1995: Goldwasser lost his case in a
2-1 decision at the CAFC. Zachariades appears to have won, but it
may be being appealed. (Last updated on 10/06/98) Intellectual Property Creators
Big Companies Do Sue Small Ones
Intellectual
Property Creators
www.ipcreators.org
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© Paul Heckel 1995-7