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0 pointsdamoncali14y ago0 comments

No, patents are sold encumbered by their previous licenses.

Do you really believe that will happen? When investors are asking why some pinhead inventor is holding up their profits? You can't force everyone involved in a company to think this is a good idea, and therefore, it isn't.

Edit: (For some added color, imagine Kevin O'leary of Shark Tank fame sitting on the board of a company with some of these patents).

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8 comments · 3 top-level

brlewis14y ago· 4 in thread

Why do you expect investors to be stupid?

The article we're commenting on is an investor excited that software patents will stop holding up profits.

harryh14y ago

Investors lose more money to patent trolls than they make from licensing patents or suing people. If they can do things to fix the system overall they'll win in the long run.

damoncaliOP14y ago

A very specific kind of investor - a career-long early stage VC. But even there, there is much room for disagreement without labeling people as "stupid".

I expect investors to be rational - and to seek profits where they are available given the information that is currently on the table. In some cases, that means they will say, "you know what? Screw that doc - we're selling these puppies."

brlewis14y ago

Your earlier comment sounded like you were saying that a company adopting this patent hack would be hard to sell to other investors. Isn't selling companies to other investors what an early stage VC does?

1 more reply

fredwilson14y ago

rational investors care about their reputation because that is what gets them into the good deals. maximizing profits over a career may require different actions than you think

VanL14y ago· 1 in thread

Umm, yes I do. Shark Tank notwithstanding, I am a patent lawyer, and I see these deals all the time.

damoncaliOP14y ago

But this agreement, that essentially makes the patent worthless for licensing? If you say so, I'll believe it, but I'm shocked that anyone would buy such a thing.

john-n14y ago

If its part of the license agreement, they would have no choice (clearly, IANAL).

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