China

GE Engineer With Ties To China Accused of Stealing Power Plant Technology (thestreet.com) 136

An anonymous reader quotes a report from TheStreet: General Electric stock was little changed on Friday, August 3, as a GE engineer with ties to China who has been accused of stealing proprietary power-turbine technology has been released on bond. Xiaoqing Zheng, 56, has been in custody since Wednesday when the FBI raided his home in Niskayuna, New York, near Albany. A federal judge on Thursday set a $100,000 bond; Zheng offered his family's home as collateral and was released on Friday. He was ordered to wear an electronic monitoring device and limit his travel, according to multiple media reports.

Zheng, who is a U.S. citizen, was hired by GE in 2008 to work as a principal engineer for the company's power division, according to an affidavit by an FBI agent filed in federal court in Albany. Zheng is "suspected of taking/stealing, on multiple occasions via sophisticated means, data files from GE's laboratories that contain GE's trade secret information involving turbine technology," the FBI said in its affidavit. He also took "elaborate means" to conceal the removal of GE data files.
"The primary focus of this affidavit is Zheng's action in 2018 in which he encrypted GE data files containing trade secret information, and thereafter sent the trade secret information from his GE work computer to Zheng's personal e-mail address hidden in the binary code of a digital photograph via a process known as steganography," the FBI said. "Additionally, the secondary focus of this affidavit is Zheng's actions in 2014 in which he downloaded more than 19,000 files from GE's computer network onto an external storage device, believed by GE investigators to have been a personal thumb drive."

Zheng's attorney disputed the allegations, saying Zheng "transmitted information on his own patents to himself and to no one else."
IBM

IBM Wins $83 Million From Groupon In E-Commerce Patents Case (bloomberg.com) 33

An anonymous reader quotes a report from Bloomberg: A U.S. jury awarded International Business Machines Corp. $83.5 million after finding that Groupon Inc. infringed four of its e-commerce patents. Friday's verdict cements the prowess of IBM's portfolio of more than 45,000 patents and is a boon to its intellectual-property licensing revenue, which brought in $1.19 billion in 2017. The jury in Wilmington, Delaware, sided with the argument of IBM's lawyers, who had said Groupon was trying to portray IBM as claiming to have patented the Internet and had called that effort "a smoke screen." As they began the trial, IBM's lawyers said Groupon built its online coupon business on the back of IBM's e-commerce inventions without permission.

[T]he patents at issue don't protect IBM's products or services, said David Hadden, Groupon's lawyer. IBM never used the patents and instead relies on its huge portfolio to extract money from other companies, he said. Two of the patents, one of which expired in 2015, came out of the Prodigy online service, which started in the late 1980s and predated the web. Another, which expired in 2016, is related to preserving information in a continuing conversation between clients and servers. The fourth patent is related to authentication and expires in 2025, the latest among the case's patents. IBM stressed throughout the trial that a range of companies have paid for licenses to use its patents. Tech giants such as Amazon, Alphabet's Google, Facebook, Twitter, and LinkedIn have paid from $20 million to $50 million each in cross-licensing agreements, allowing them access to IBM's cadre of more than 45,000 patents.

Patents

Native American Tribe Can't Be a 'Sovereign' Shield During Patent Review, Says Court (arstechnica.com) 150

Cyrus Farivar writes via Ars Technica: In a unanimous decision, an appellate court has resoundingly rejected the legal claim that sovereign immunity, as argued by a Native American tribe, can act as a shield for a patent review process. On July 20, the United States Court of Appeals for the Federal Circuit found in a 3-0 decision that the inter partes review (IPR) process (a process that allows anyone to challenge a patent's validity at the United States Patent and Trademark Office) is closer to an "agency enforcement action" -- like a complaint brought by the FTC or the FCC -- than a regular lawsuit.

This case really began in September 2015. That was when Allergan, a pharma company, sued rival Mylan, claiming that Mylan's generics infringed on Allergan's dry eye treatment known as Restasis. Saint Regis Mohawk Tribe was initially filed in the Eastern District of Texas, known as a judicial region that is particularly friendly to entities that are often dubbed patent trolls. By 2016, Mylan initiated the IPR. But Allergan, in an attempt to stave it off, struck a strange deal, transferring ownership of the six Restasis-related patents to the Saint Regis Mohawk Tribe, based in Upstate New York, near the Canadian border. As part of that deal, Allergan paid $13.75 million to the tribe, with a promise of $15 million in annual payments -- if the patents were upheld, that is. The Mohawk Tribe attempted to end the IPR, citing sovereign immunity, which was denied. The tribe struck at least one other similar deal with a firm known as SRC Labs, which sued Amazon and Microsoft.

IBM

IBM Wants $167 Million From Groupon Over Alleged Patent Infringement (reuters.com) 64

On Monday, IBM asked a jury to award the company $167 million in a lawsuit against deals site Groupon for using patented technology without authorization. The patents involve e-commerce technology that had already been licensed to Amazon, Facebook, and Alphabet for between $20 million and $50 million per company. "Most big companies have taken licenses to these patents," IBM's lawyer, John Desmarais, said. "Groupon has not. The new kid on the block refuses to take responsibility for using these inventions." Reuters reports: Groupon lawyer J. David Hadden argued that IBM was overreading the scope of its patents and claiming ownership of building blocks of the internet. "A key question for you in this case is whether these patents cover the world wide web," Hadden told jurors. "They do not and that is because IBM did not invent the world wide web."

An IBM executive is expected to testify during the two-week trial about licensing deals with technology companies like Amazon and Google, providing a rare glimpse into IBM's efforts to derive revenue from its large patent portfolio. The Armonk, New York-based company invests heavily in research and development and has secured more U.S. patents than any other company for the past 25 years.

Medicine

China Negotiating For Cheaper Cancer Drugs (reuters.com) 86

hackingbear writes: "China's medical insurance regulator will begin negotiations with domestic and overseas pharmaceutical companies to lower prices of cancer drugs in a bid to cut the financial burden on patients," reports Reuters. "The State Medical Insurance Administration said it was preparing to include more cancer drugs on its list of medicines eligible for reimbursement, and said 10 foreign and eight domestic pharmaceutical companies had expressed a willingness to work with the authority."

Unlike India, or what we may have been told, China enforces pharmaceutical patents rigorously. Recently, the Chinese box office hit Dying to Survive, which told the real life story of a leukemia patient/businessman put on trial due to smuggling imitation drugs to help fellow patients who cannot pay the exorbitant cost of a drug produced by a Swiss pharmaceutical giant, has brought in huge revenues and rave reviews since the movie was released on July 5. Last year, China forced two rounds of NRDL negotiations after seven years of stasis. More than a dozen cancer drugs, including AstraZeneca's Iressa and Roche's Herceptin, are now covered by the country's insurance program, but only after the companies agreed to huge discounts -- a typical move trading lower prices for higher volume. Demand for Herceptin, for example, surged after the discount and triggered a national shortage.

Open Source

Interviews: Christine Peterson Answers Your Questions 79

You asked questions, we've got the answers!

Christine Peterson is a long-time futurist who co-founded the nanotech advocacy group the Foresight Institute in 1986. One of her favorite tasks has been contacting the winners of the institute's annual Feynman Prize in Nanotechnology, but she also coined the term "Open Source software" for that famous promotion strategy meeting in 1998.

Christine took some time to answer questions from Slashdot readers.
Patents

Walmart's Newly Patented Technology For Eavesdropping On Workers Presents Privacy Concerns (buzzfeed.com) 133

Walmart has patented an audio surveillance system which can be used to listen to conversations between employees and customers at checkout. From a report: The "listening to the frontend" technology, as its called, is one of many futuristic ideas Walmart has sought to patent in recent years as it competes with Amazon for domination of the retail industry. While there's no guarantee that Walmart will ever build this technology, the patent shows the company is thinking about using tech not just to facilitate deliveries or make its warehouses more efficient, but also to manage its workforce, which is the largest in the United States. Walmart declined to comment on whether it plans to use audio sensors to measure the productivity of its staff in the near future, but said in a statement, "We're always thinking about new concepts and ways that will help us further enhance how we serve customers, but we don't have any further details to share on these patents at this time."
China

Micron Chip Sales Banned In China On Patent Case (bloomberg.com) 74

A Chinese court temporarily banned Micron Technology chip sales, cutting the U.S. company off from the world's largest semiconductor market. The news comes from Taiwanese rival United Microelectronics Corporation (UMC). Bloomberg reports: In a patent ruling in favor of UMC, the Fuzhou Intermediate Peopleâ(TM)s Court of the Peopleâ(TM)s Republic of China issued a preliminary injunction stopping Micron from selling 26 products, including dynamic random access memory and Nand flash memory-related products, UMC said in a statement Tuesday. Micron said it hasnâ(TM)t been served with the injunction and wonâ(TM)t comment until it does.

The case is part of a broader dispute between the two companies centering on accusations that UMC acted as a conduit for the theft of Micronâ(TM)s designs in an attempt to help China grow its domestic chip industry and replace imports that rival oil in total value. A Chinese antitrust regulator is already investigating Micron and its Korean rivals, the companies have said. Local media has reported that authorities are looking into increases in chip prices.

Privacy

Facebook Patent Imagines Triggering Your Phone's Mic When a Hidden Signal Plays on TV (gizmodo.com) 169

Based on a recently published patent application, Facebook could one day use ads on television to further violate a user's privacy. From a report: The patent is titled "broadcast content view analysis based on ambient audio recording." It describes a system in which an "ambient audio fingerprint or signature" that's inaudible to the human ear could be embedded in broadcast content like a TV ad. When a hypothetical user is watching this ad, the audio fingerprint could trigger their smartphone or another device to turn on its microphone, begin recording audio and transmit data about it to Facebook.
Businesses

Apple, Samsung Settle After Fighting Seven Years in Court (bloomberg.com) 61

Apple and Samsung reached a settlement in their U.S. patent battle, putting an end to a seven-year fight over smartphone designs. From a report: The string of lawsuits started in 2011 when Apple sued Samsung for allegedly copying the design of the iPhone in the creation of its own line of smartphones. Terms of the accord weren't immediately disclosed. The settlement follows a damages retrial in which Apple won a $539 million jury award in May.
The Courts

Supreme Court Backs Award of Overseas Patent Damages (reuters.com) 54

schwit1 quotes a report from Reuters: The U.S. Supreme Court ruled on Friday that companies can recover profits lost because of the unauthorized use of their patented technology abroad in a victory for Schlumberger NV, the world's largest oilfield services provider. The decision expands the ability of patent owners to recover foreign-based damages, increasing the threat posed by certain infringement lawsuits in the United States.

Internet-based companies and others had expressed concern that extending patent damages beyond national borders would expose U.S. high-technology firms to greater patent-related risks abroad. U.S. patent law generally applies only domestically, but Schlumberger said that since the law protects against infringement that occurs when components of a patented invention are supplied from the U.S. for assembly abroad, it should be fully compensated for the infringement, including any lost foreign sales. The high court agreed.

Businesses

Nearly Half the Patents on Marine Genes Belong To Just One Company (smithsonianmag.com) 157

A creature as majestic as a whale, you might think, should have no owner. Yet it turns out that certain snippets of the DNA that makes a sperm whale a sperm whale are actually the subjects of patents -- meaning that private entities have exclusive rights to their use for research and development. From a report: The same goes for countless other marine species. And new research shows that a single German chemical company owns 47 percent of patented marine gene sequences. A just-published paper in Science Advances finds that 862 separate species of marine life have genetic patents associated with them. "It's everything from microorganisms to fish species," says lead author Robert Blasiak, a conservation researcher at the University of Stockholm who was shocked to find out how many genetic sequences in the ocean were patented. "Even iconic species" -- like plankton, manta rays, and yes, sperm whales. Of some 13,000 genetic sequences targeted by patents, nearly half are the intellectual property of a company called Baden Aniline and Soda Factory (BASF).
Beer

Uber Seeks Patent For AI That Determines Whether Passengers Are Drunk (cnet.com) 103

In an effort to "reduce undesired consequences," Uber is seeking a patent that would use artificial intelligence to separate sober passengers from drunk ones. The pending application details a technology that would be used to spot "uncharacteristic user activity," including passenger location, number of typos entered into the mobile app, and even the angle the smartphone is being held. CNET reports: Uber said it had no immediate plans to implement the technology described in the proposed patent, pointing out the application was filed in 2016. "We are always exploring ways that our technology can help improve the Uber experience for riders and drivers," a spokesperson said. "We file patent applications on many ideas, but not all of them actually become products or features."
Patents

Inventor Says Google Is Patenting His Public Domain Work (arstechnica.com) 164

Rob Riggs writes: Jarek Duda, the inventor of a compression technique called asymmetric numeral systems (ANS), dedicated the invention to the public domain. Since 2014, Facebook, Apple, and Google have all created software based on his breakthrough. Google is now trying to patent a video encoding scheme using the compression technique. The inventor is fighting Google in the European courts and has won a preliminary ruling. The fight's not over and Google is also seeking a patent with the USPTO. A Google spokesperson says Duda came up with a theoretical concept that isn't directly patentable, "while Google's lawyers are seeking to patent a specific application of that theory that reflects additional work by Google's engineers," reports Ars Technica. "But Duda says he suggested the exact technique Google is trying to patent in a 2014 email exchange with Google engineers."
Businesses

Linux Foundation Celebrates Microsoft's GitHub Acquisition (theverge.com) 162

The Linux Foundation has endorsed Microsoft's acquisition of GitHub. In a blog post, Jim Zemlin, the executive director at the Linux Foundation, said: "This is pretty good news for the world of Open Source and we should celebrate Microsoft's smart move." The Verge reports: 10 years ago, Zemlin was calling for Microsoft to stop secretly attacking Linux by selling patents that targeted the operating system, and he also poked fun at Microsoft multiple times over the years. "I will own responsibility for some of that as I spent a good part of my career at the Linux Foundation poking fun at Microsoft (which, at times, prior management made way too easy)," explains Zemlin. "But times have changed and it's time to recognize that we have all grown up -- the industry, the open source community, even me." Nat Friedman, the future CEO of GitHub (once the deal closes), took to Reddit to answer questions on the company's plans. "We are not buying GitHub to turn it into Microsoft; we are buying GitHub because we believe in the importance of developers, and in GitHub's unique role in the developer community," explains Friedman. "Our goal is to help GitHub be better at being GitHub, and if anything, to help Microsoft be a little more like GitHub."
Software

Should Apple Let Competitors Use FaceTime? (cnet.com) 211

In 2010, Steve Jobs first introduced FaceTime and promised it would become an open industry standard that could be used by Apple's competitors -- not just Apple. Well, eight years later and that still hasn't happened. CNET's Sean Hollister provides a theory as to why that is: There's also an ongoing lawsuit to consider -- as Ars Technica documented in 2013, Apple was forced to majorly change how FaceTime works to avoid infringing on the patents of a company called VirnetX. Instead of letting phones communicate directly with each other, Apple added "relay servers" to help the phones connect. Presumably, someone would have to pay for those servers, and/or figure out a way for them to talk to Google or Microsoft or other third-party servers if FaceTime were going to be truly open. But that doesn't make a broken promise less frustrating. Particularly now that Apple could potentially fix annoying business video calls as well. A Skype-killing video chat service that worked on Mac, iOS *and* Windows, Android and the open web? That's something I bet companies would be happy to pay for, too.
Businesses

No More 'Miracles From Molecules': Monsanto's Name Is Being Retired (reuters.com) 236

Flexagon writes: Germany's Bayer announced today that in its link-up with Monsanto, it's retiring the "Monsanto" name, and with it the name of the company that originally sponsored Disneyland's "Adventure Thru Inner Space" attraction. The $63 billion takeover will wrap up on Thursday. "Bayer will remain the company name. Monsanto will no longer be a company name. The acquired products will retain their brand names and become part of the Bayer portfolio," it said.

The decision to retire the name is a smart business move. "These days Monsanto is shorthand for, as NPR's Dan Charles has put it, 'lots of things that some people love to hate': Genetically modified crops, which Monsanto invented," reports NPR. "Seed patents, which Monsanto has fought to defend. Herbicides such as Monsanto's Roundup, which protesters have sharply criticized for its possible health risks. Big agriculture in general, of which Monsanto was the reviled figurehead."
The Courts

Samsung Must Pay Apple $539 Million For Infringing iPhone Design Patents, Jury Finds (cnet.com) 143

Samsung must pay Apple $539 million for infringing five patents with Android phones it sold in 2010 and 2011, a jury has found in a legal fight that dates back seven years. "The unanimous decision, in the U.S. District Court in San Jose in the heart of Silicon Valley, is just about halfway between what the two largest mobile phone makers had sought in a high-profile case that reaches back to 2011," reports CNET. From the report: The bulk of the damages payment, $533,316,606, was for infringing three Apple design patents. The remaining $5,325,050 was for infringing two utility patents. Samsung already had been found to infringe the patents, but this trial determined some of the damages. The jury's rationale isn't clear, but the figure is high enough to help cement the importance of design patents in the tech industry. Even though they only describe cosmetic elements of a product, they clearly can have a lot of value.

Samsung showed its displeasure and indicated the fight isn't over. "Today's decision flies in the face of a unanimous Supreme Court ruling in favor of Samsung on the scope of design patent damages. We will consider all options to obtain an outcome that does not hinder creativity and fair competition for all companies and consumers," Samsung said.

Government

Congress Is Looking To Extend Copyright Protection Term To 144 Years (wired.com) 293

"Because it apparently isn't bad enough already, Congress is looking to extend the copyright term to 144 years," writes Slashdot reader llamalad. "Please write to your representatives and consider donating to the EFF." American attorney Lawrence Lessig writes via Wired: Almost exactly 20 years ago, Congress passed the Sonny Bono Copyright Term Extension Act, which extended the term of existing copyrights by 20 years. The Act was the 11th extension in the prior 40 years, timed perfectly to assure that certain famous works, including Mickey Mouse, would not pass into the public domain. Immediately after the law came into force, a digital publisher of public domain works, Eric Eldred, filed a lawsuit challenging the act [which the Supreme Court later rejected].

Twenty years later, the fight for term extension has begun anew. Buried in an otherwise harmless act, passed by the House and now being considered in the Senate, this new bill purports to create a new digital performance right -- basically the right to control copies of recordings on any digital platform (ever hear of the internet?) -- for musical recordings made before 1972. These recordings would now have a new right, protected until 2067, which, for some, means a total term of protection of 144 years. The beneficiaries of this monopoly need do nothing to get the benefit of this gift. They don't have to make the work available. Nor do they have to register their claims in advance.

Businesses

Xiaomi Sued For Alleged Patent Infringement Ahead of Blockbuster IPO (reuters.com) 23

An anonymous reader shares a report: Chinese smartphone maker Coolpad said its unit has sued three group firms of Xiaomi, which last week filed for a Hong Kong IPO that could be worth up to $10 billion, for patent infringement. Coolpad said in a statement late on Thursday its subsidiary, Yulong Computer Telecommunication Scientific (Shenzhen) filed a lawsuit against Xiaomi Telecom Technology, Xiaomi Technology and Xiaomi Factory in a court in Jiangsu province for using its patent without authorization. Yulong demanded that the Xiaomi companies should immediately stop production and sale of some smartphone models, including the Mi MIX2, Coolpad said.

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