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SoftBank-owned Patent Troll, Using Monkey Selfie Law Firm, Sues To Block Covid-19 Testing, Using Theranos Patents (techdirt.com) 159

Mike Masnick, reporting for TechDirt: It's a story involving patents, patent trolling, Covid-19, Theranos, and even the company that brought us all WeWork: SoftBank. Oh, and also Irell & Manella, the same law firm that once claimed it could represent a monkey in a copyright infringement dispute. You see, Irell & Manella has now filed one of the most utterly bullshit patent infringement lawsuits you'll ever see. They are representing "Labrador Diagnostics LLC" a patent troll which does not seem to exist other than to file this lawsuit, and which claims to hold the rights to two patents (US Patents 8,283,155 and 10,533,994) which, you'll note, were originally granted to Elizabeth Holmes and Theranos -- the firm that shut down in scandal over medical testing equipment that appears to have been oversold and never actually worked. Holmes is still facing federal charges of wire fraud over the whole Theranos debacle. However, back in 2018, the remains of Theranos sold its patents to Fortress Investment Group. Fortress Investment Group is a SoftBank-funded massive patent troll. You may remember the name from the time last fall when Apple and Intel sued the firm, laying out how Fortress is a sort of uber-patent troll, gathering up a bunch of patents and then shaking down basically everyone. Lovely, right? So, this SoftBank-owned patent troll, Fortress, bought up Theranos patents, and then set up this shell company, "Labrador Diagnostics," which decided that right in the midst of the Covid-19 pandemic it was going to sue one of the companies making Covid-19 tests, saying that its test violates those Theranos patents, and literally demanding that the court bar the firm from making those Covid-19 tests.
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SoftBank-owned Patent Troll, Using Monkey Selfie Law Firm, Sues To Block Covid-19 Testing, Using Theranos Patents

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  • by sycodon ( 149926 ) on Tuesday March 17, 2020 @09:05AM (#59840226)

    This is the end of the world, isn't it?

  • Assuming flying monkeys, robotic corvidae and quite skillful trolls . . .

    . . . sounds about right.

  • by Registered Coward v2 ( 447531 ) on Tuesday March 17, 2020 @09:09AM (#59840246)
    IIRC, the US Government can invalidate or allow companies to use a patented process in times of national emergency. It seems a suit at his time would Not Be A Good Idea (TM)
    • by alvinrod ( 889928 ) on Tuesday March 17, 2020 @09:26AM (#59840312)
      I think the copyright office should start yanking more of these patents that aren't novel. The first one [google.com] is for a "point of care fluidic system" and the second [google.com] is for "systems and methods of sample processing and fluid control in a fluidic system" which seems to be related to the first.

      Both of these quite obviously build on a massive amount of existing work, and this is plain from the massive number of citations that each contains. I'm not an expert in the field so it's difficult to tell precisely how little innovation is involved in this, but at best this seems like a repackaging of old technology with an "but on the internet!" type of kicked added on. I'm not sure that the testing method being suggested in the patent is in any way novel.

      However, unless the company has access to any of the devices doing COVID-19 testing then how would they know it actually violates their patent. There are several dependent claims for each patent that would be trivially easy to get around which would make other implementations non-infringing for one or more reasons.
      • by Rhipf ( 525263 )

        I think the copyright office should start yanking more of these patents that aren't novel.

        I think it would be more effective if the patent office invalidated those patents. 8^)

      • I think the copyright office should start yanking more of these patents that aren't novel. The first one is for a "point of care fluidic system" and the second is for "systems and methods of sample processing and fluid control in a fluidic system" which seems to be related to the first.

        Those are actually good patents. The problem is that a patent is supposed to be on an implementation of an idea. You're not supposed to be able to patent an idea itself [legalzoom.com]. If someone else comes up with a device or system wh

  • by account_deleted ( 4530225 ) on Tuesday March 17, 2020 @09:13AM (#59840264)
    Comment removed based on user account deletion
  • by WolphFang ( 1077109 ) <(m.conrad.202) (at) (gmail.com)> on Tuesday March 17, 2020 @09:13AM (#59840268)

    Not the brightest bunch are they?

    If this gets into mainstream media, I can see some serious backlash happening.

    Wishfully wanting this to weaken patents over all and perhaps destroy a few patent trolls along the way.

    • by HiThere ( 15173 )

      To be fair, patent law is less bad than copyright law.

      • Two words: "One Click"
        • He didn't say it was good, just that it was less bad than copyright law. This should give you some idea as to just how bad copyright law is.

      • Very true.

      • Patent abuse slows technological development for everyone (and there are arguments to be made that so does proper use). When was the last time something actually valuable was stopped by copyright law?

        I mean we all like our music, books, and movies - but get rid of all of them and we'd just find other ways to amuse and distract ourselves.

    • It's already on mainstream media. I saw a bit about it on CNN at work a couple times today.
    • From the follow-up articles I've seen, the patent troll is claiming that they didn't know this company was working on a COVID-19 test (despite the simplest of Google searches revealing this fact) and is "generously" offering the patent free for anyone working on COVID-19 tests.

      Also, the patent is essentially "taking a sample and putting it into a machine that reads the sample." So basically every test ever made. When I give blood, they test my iron levels with a device that essentially violates this patent.

  • ... will be assholes.

    Though, legally (IANAL), the summary builds a chain that they have a legitimate claim. If their legally acquired IP is being used without their consent, then yeah - they can be dicks and sue to stop the tests from being sold or distributed*. Barring some "national security" or "national emergency", they seem to be within their rights to do this.

  • Wasn't Theranos smoke and mirrors where they never had a real working product? In which case - is their patent valid?

    • by JcMorin ( 930466 )
      Yes, but the whole patent system a money system where they get paid to approved patents and get paid to defend them. Nobody really care about invention at all. I even wonder if someone actually read them, I think the process is more like you put money and we grant you the fact that you put a document at some point in time, then the court will decide.
      • Re:Is it valid? (Score:4, Insightful)

        by Theaetetus ( 590071 ) <theaetetus...slashdot@@@gmail...com> on Tuesday March 17, 2020 @10:24AM (#59840512) Homepage Journal

        Yes, but the whole patent system a money system where they get paid to approved patents and get paid to defend them. Nobody really care about invention at all. I even wonder if someone actually read them, I think the process is more like you put money and we grant you the fact that you put a document at some point in time, then the court will decide.

        If this were true, ~90% of patent applications wouldn't be initially rejected, and ~50% of applications wouldn't be abandoned. [patentrebel.com]

        • by HiThere ( 15173 )

          Your evidence is assuming that political influence isn't a consideration. Or whether the patent examiner likes their name.

          OTOH, past studies suggest that what the actually do is review previously accepted patents for something too similar. And if they don't find anything, perhaps because the words used to describe what's going on are different, then they accept the patent, and leave it up to the courts to decide. So until a patent is challenged in court it is presumed valid.

          I'm sure things are more nuanc

          • >> Your evidence is assuming that political influence isn't a consideration. Or whether the patent examiner likes their name.

            You'll need to cite modern day evidence for that.
            I can understand that up to the 60's and maybe the 70's but not in the 80's onwards.

  • Disbarment? (Score:5, Insightful)

    by Headw1nd ( 829599 ) on Tuesday March 17, 2020 @09:22AM (#59840304)
    Has a lawyer ever been disbarred due to moral turpitude solely on the basis of their own lawsuit?

    Because maybe it is time to set precedent..

    • Re:Disbarment? (Score:4, Insightful)

      by ISoldat53 ( 977164 ) on Tuesday March 17, 2020 @09:27AM (#59840314)
      Let's see what the judge does. We don't impeach nearly enough judges.
    • The only way for a lawyer to get disbarred it to steal money from his own client without having prior court approval. They are supposed to share with the other lawyers, so it feels like someone is jumping the queue.

    • Re: (Score:3, Interesting)

      by Dr.Wizard ( 5905580 )
      The rules for disbarment vary from state to state. Surprisingly, Florida's Bar is actually fairly good about disbarring their repeat offenders and inflicts significant fines and mandatory re-training on the first-timers. The Florida Bar's rules also have a big section regarding ethics although the rules are very subjective and this particular situation is not covered. I'm a former paralegal and have helped 4 different friends/family file complaints to the bar and won every time (to my own surprise since t
      • I think that is because of all the old people they use to have. it was a self preservation measure to increase
        trust and business. The more they could fire and get rid of bad lawyers, the more they could bill and prove that
        the ones working were the "good" lawyers.

    • Lawyers can be and have been disbarred for filing suits without intrinsic merit solely for the purpose of harrassment or extorting money; the technical term for this is "barratry." Unfortunately, getting a lawyer disbarred for barratry is usually quite difficult.

  • Every patent by this company should be revoked, and all patents owned by the parent company also revoked. Also for the rest of their lives any business should refuse service to the lawers named on the complaint.
    • Forget this company AND their parent go for THEIR parent, soft bank itself. But don't stop with their patents, jail the executives and top stock holders for attempted murder and fine them the costs to date for the virus.
  • In times of crisis, just continue on and ignore the patent.

    What are they going to do, arrest them?

  • by Atrox Canis ( 1266568 ) on Tuesday March 17, 2020 @09:56AM (#59840410)

    My father used to joke about what he would recommend for the worst of life's offenders. It's overly elaborate. Here goes.

    Build a barn out of wood. Put a pedestal in the middle of the barn. On the pedestal, mount a vice. Insert important appendages from the offender in the vice and weld it shut. Give the offender a rusty butter knife.

    Set the barn on fire.

    I think everyone involved in this sordid attempt to extort money from potential death should be lined up in front of their own, individually reserved barns.

    • And burn a perfectly good barn?

      Scaphism [wikipedia.org]. That's where it's at. And make sure to make it available on video.

      • by HiThere ( 15173 )

        It doesn't need to be that good a barn. But a privy would be too small to give them enough time to worry about their decision.

        That said, I don't approve of inflicting pain and suffering even on those who inflict that on others. Put them in a closed room and slowly fill the room with pure nitrogen.

        • There are cases where I approve. People trying to make a buck with the suffering of others is one of those.

  • Comment removed based on user account deletion
  • In a crisis you really see what people are about. There are some pretty shitty people out there.

  • by Anonymous Coward on Tuesday March 17, 2020 @10:16AM (#59840486)

    https://www.telegraph.co.uk/te... [telegraph.co.uk]

    SoftBank-owned patent firm backtracks on lawsuit targeting coronavirus-test technology

    A US biotech firm sued by a patents business revealed it was using its technology to develop tests for coronavirus

    By Hasan Chowdhury and Laurence Dodds, US Technology Reporter, San Francisco 17 March 2020 12:28pm

    A SoftBank-owned patent firm has back-pedalled on a lawsuit over medical testing licenses after it emerged the company it was suing was developing tests to detect coronavirus.

    Labrador Diagnostics, a subsidiary of SoftBank-owned Fortress Investment Group, which was bought by the Japanese technology conglomerate for $3.3bn in 2017, attempted to sue a US biotech firm over the alleged infringement of patents.

    BioFire, a Utah-based company, was accused of violating the rights to diagnostics technology held by Labrador, which is being represented by the law firm Irell and Manella.

    The Fortress-subsidiary bought the rights to the patents from Theranos, the disgraced health-tech firm that shut its doors after its claims to revolutionise blood testing were found to be false.

    Last week, BioFire launched three different tests for use on the frontline of the battle on coronavirus, which could help doctors speed up the diagnosis of respiratory conditions.

    On Tuesday, Labrador said it would grant “royalty-free licenses to third parties” using its patented technology to tackle Covid-19, the novel strain of coronavirus.

    It rejected claims that the lawsuit was attempting to stifle efforts to tackle coronavirus, and that its case was focused on “activities over the past six years that are not in any way related to Covid-19 testing”.

    “Labrador fully supports efforts to assess and ultimately end this pandemic and hopes that more tests will be created, disseminated and used to quickly and effectively protect our communities through its offer of a royalty-free license during the current crisis,” the company said in a statement.

    The lawsuit against BioFire came at a critical time, as scientists around the world race to develop a vaccine for Covid-19, which has infected almost 200,000 people globally.

    Labrador claims it didn’t know BioFire was working on a Covid-19 treatment as the Utah firm revealed it was attempting to develop a treatment two days after the lawsuit was filed on March 11.

    • Royalty-free licensing?

      Nice move... get people to accept you have something to license then after the crisis turn the screws.

      Note they didn't say indefinite access royalty free.

      Sneaky and amoral snakes.

    • They only did that because otherwise they know their own life expectancy would be measured in hours (at best), their doors would be stormed, they'd be dragged out into the street, and in mere minutes their heads would be on pikes as a warning to anyone else seeking to profit so egregiously from this global health crisis.
      Even so they'd better change their names and go into hiding if they expect to continue breathing. Motherfuckers.
  • Post the name and addresses of the trolls online.

    Then wait a few hours or at most, days.

  • Federal police power should be used to make sure that no judge issues any injunction affecting any current research, FDA filings, testing, or deployment of products relevant to this pandemic. After it's all over, we can then put together legislation to eliminate patent trolling altogether.

    At a minimum, such legislation would automatically invalidate any patent that is not exploited in a reasonable amount of time by its owner. An exploitation requirement is right there in Art. I Sec. 8 of the Constitution: "

  • Even though you may hate a patent troll, you are getting outraged by the mote in the eye while ignoring the beam. Biden: Free testing for all regardless of insurance, for the duration of the emergency, then back to normal. Sanders: How is the most expensive health care system in the world unprepared for this epidemic? A system where 60,000 people die in a year due to lacking health insurance.
  • by UnknownSoldier ( 67820 ) on Tuesday March 17, 2020 @10:37AM (#59840564)

    I'm shocked, shocked I say, that a company puts profits before death. /s

    Can we get a judge with a 'bout of common sense to throw these bullshit cases out -- because profiting off death is a dick move.

  • by pele ( 151312 )

    Wonder what the reaction would have been had it been a CHINESE company stealing those patents?

    • by HiThere ( 15173 )

      It is perfectly legal for a foreign country to have laws that cover patents differently...including not recognizing them. The US used to do it all the time.

  • Inject the lawyers with covid-19 and then make sure they are in the control group for the vaccine.

  • You want these scum bags to stop this silly shit?
    Publish the story, ALONG WITH HOME, 2nd HOME ADDRESSES.
    Pictures of the scum bags would help in the eradication effort.
    Disbarment, pressure on bar association to act like humans, if that is possible.
    What, exactly, should they expect? For society to give them money?

  • by grep -v '.*' * ( 780312 ) on Tuesday March 17, 2020 @11:20AM (#59840712)

    who decided it was going to sue one of the companies making Covid-19 tests

    Super! They've got a working patent. Specifically give those owners and lawyers the Covid-19 virus and let's see if their working procedures and system work successfully. If it does, THEY can start producing the kits and stop the other company. If not, well .... soon there won't be a problem to worry about.

    NOTE: Covid-19 is NOT that bad -- it is NOT a death sentence just because you get it. But IF you've got a weak immune system there's a much higher chance or problems. If you draw the "short straw" here, without medical intervention (hospital, ICU, breathing machines) you'll really have problems and could possibly die. There are only SO many ICU bed and breathing machines at any one time; THAT'S why this is such a big deal. (Unless you like watching people die.)

    Last I checked it was hard to share an blood re-oxygenator: "OK, Sally, you've had your turn breathing for an hour, now it's your brothers turn."

    • by rastos1 ( 601318 )

      Covid-19 is NOT that bad

      This is short summary from a today's article about Italy: The daily L'Eco di Bergamo used to have 2 pages of obituaries in past. Last Friday it had ten. In last 3 days there were additional 3000 people diagnosed with covid-19. Italy's death toll climbed to 2200. The funeral service sent a portable cooling box to a son of deceased father to keep the corpse in because the morgue is full. Doctors refused the perform the autopsy. Crematory service - running 24h/day - is overloaded and

  • If this is the same Fortress Investment Group, which I believe it is, then patent trolling is a comparatively benign line of business for them.

    They are also the ones trying to buy the claims, at a huge discount to market*, of people who had bitcoin in Mt. Gox when it collapsed.

    Anyone betting on that dumpster fire coming back to life is either insane or operating on assumptions that depend on corruption to succeed.

    *a term with a remarkably flexible interpretation in kleptocurrency land

  • As punishment, all the lawyers even remotely connected with this claim should be deliberately infected with COVID-19 and made to suffer it without any hospital treatment.

    • If you're really going to infect people with a virus as punishment, why not hanta virus? For most non smokers who are younger than 50 and healthy, COVID-19 hardly generates symptoms, which is why it spreads so much.
  • the article misinforms: it's not that they wanted to block the development of the test, they were just demanding their share from it in legal speak:

    That Defendants be enjoined from infringing the Asserted Patents, or if their infringement is not enjoined, that Defendants be ordered to pay ongoing royalties to Labrador for any post-judgment infringement of the Asserted Patents;

    this is how our beloved capitalism routinely works. the dramatic touch about the pandemic doesn't really change anything. i don't like it either, but there's nothing to see here. if you guys want to shut someone in a barn and set it on fire, at least make sure you get all the right guys and it makes a difference. :D

    • In another article, that I read, the patent was described as basically "take a sample, stick it in a machine, have the machine read the sample." No details as to what kind of sample or what the machine did. You might as well patent modes of transportation as "take people, put inside or on object, object takes them to destination." So it's not even "they had a valid claim and wanted their cut of any profits", but "they had an overly broad patent that would apply to any medical test and want to own a piece of

  • That's the proper treatment fuckstain excuses for humanity like these deserve.
  • Singularity, Pepper decides. well debatable on the singularity stage. Imagine the discussion among Masa And his Execs. Who thought this was a good decision? Answer AI algorithm. Back to drawing board Wile E.
  • The Telegraph is reporting Softbank has announced they have backed offf... (Paywall)
    https://www.telegraph.co.uk/te... [telegraph.co.uk]

  • If these patents are valid I think they should be forfeit to the public domain if the company is liable for criminal activity. A facet of corporate incarceration if you will.
  • Is a patent on technology that never worked still valid? From the article "Theranos -- the firm that shut down in scandal over medical testing equipment that appears to have been oversold and never actually worked" I would think the Judge's response would be "Theranos never worked; therefore they lied in their patent application about their technology working. All of their patents are invalid."

    Someone patents a square tire. Square tires don't work. Lies to Patent Office that it does work, gets patent. Som

Someday somebody has got to decide whether the typewriter is the machine, or the person who operates it.

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