Wi-Fi patent has turned CSIRO money mad

Renai LeMay
03 June 2010, 9:55 AM


opinion | There's a good case to be made that Australia's peak science body is turning into a patent troll.


When that grand old hoarder of intellectual property, IBM, promised in 2005 that it would make 500 patents in its 40,000-strong database freely available to anyone working on open source projects, it was applauded.

“This is exciting,” said famed Stanford Law School professor Lawrence Lessig, who is known for his strong opinions on the need to reduce copyright and intellectual property restrictions. “It is IBM making good on its commitment to encourage a different kind of software development and recognizing the burden that patents can impose.”

In a statement made several weeks later, Linux founder Linus Torvalds echoed Lessig’s praise for Big Blue.

“Software patents are clearly a problem, and I think it’s a problem that the open source community has been pretty aware of for the last five years,” he said. “The good news is that a lot of proprietary vendors are starting to see it as a problem as well.”

I can’t recall any specific instances of public comments, but I have no doubt that Australia’s open source community was also in favour of Big Blue’s move.

You can easily imagine Linux and *BSD fans crowded around tables at lunch during the nation’s Linux.conf.au conference held around that time every year. “Great that IBM is finally opening its patent library,” one bearded Apache coder would have likely stated. “Indeed,” would say another be-spectacled Solaris kernel engineer. “It’s about time.”

As a capitalist society, it is a truism that we need to reward such positive and open behaviour on the part of corporations so that we do not let money become the sole currency in which we trade. This is why I find the lack of reasoned discussion around the Commonwealth Scientific and Industrial Research Organisation’s insane pursuit of those who it claims are infringing on its Wi-Fi patent disturbing.

We should be applying the same standards to the CSIRO when it comes to patents as we did back in 2005 to IBM. To do any less will demean us and sully us in the eyes of our descendants.

To illustrate my point I encourage you to read an article published in the Sydney Morning Herald yesterday which details the CSIRO’s actions in attempting to enforce what it claims is its patent on the Wi-Fi technology which is used everywhere in modern society – from laptops to mobile phones to the Nintendo Wii.

The patent apparently had its genesis in a 1977 paper which one of the CSIRO’s scientists wrote about how a set of mathematical equations could be used to sharpen images from optical telescopes … developed while the search went on for exploding black holes. How Star Trek.

By the late 1980’s, so the story goes, the research agency was looking at computer networking, and the Wi-Fi patent landed in 1992.

But, as an extensive article in the Economist in the subject demonstrates (PDF), the history of Wi-Fi is far from simple, and a common sense definition of where the standard came from would seem to make the CSIRO’s claims rather laughable.

Maybe the CSIRO’s equations did have their role to play, but the truth is that the Wi-Fi standard arose only after a number of proprietary standards had already existed, and it took more than half a decade and a similar amount of expensive effort by the largest networking vendors of the day (some of the names are still around today, like Nokia and Lucent) to get the technology off the ground.

But let’s set all this aside and assume that the CSIRO’s argument that its technology is at the heart of the Wi-Fi standard that we enjoy today.

Isn’t there an argument to be made that it has already reaped a substantial benefit from its patent, and that it should release the intellectual property to the industry (as IBM did, in a limited form), so that the globe can benefit from its use and continued development?

The SMH article documents the fact that the CSIRO has already made about $250 million from its lawsuits against those who it claims have stolen its ideas.

And yet the same article also quotes CSIRO’s commercial executive director, Nigel Poole, as saying that the practical task in front of the research agency is trying to extract licences for use of its patent – which it holds in some 19 countries – from the entirety of the technology industry.

You can imagine the outrage if a commercial organisation was trying to pursue the path the CSIRO is on right now.

Say, for example, that Microsoft, Apple, or even a lower-profile company such as Avaya filed lawsuits against every single company in the technology sector with the intent of enforcing its patent on the Ethernet networking standard.

Technology workers across the globe would damn such a company for its outrageous action and then laugh themselves sick as the CEOs of every technology company in existence lined up a battery of law firms to eat the CSIRO’s lunch … with pleasure.

It is perhaps only the non-commercial nature of the CSIRO as a government entity which is protecting it from such censure in the eyes of the technology community.

It is also perhaps instructive to examine the CSIRO’s motives for pursuing, as one IP lawyer put it, returns from its Wi-Fi patent which could add up to a billion smackeroos. As a number of news articles have recently made clear, the research agency is losing staff and cutting budgets … not the least affected is its IT department, with union action already starting to raise its ugly head.

One can only imagine the pressure that the CSIRO’s commercialisation department is under at the moment. With such tough times going on at Australia’s research flagship, who can blame it for trying to milk its the cream-filled udders of its lucrative Wi-Fi patent for all that they’re worth?

Well, I can.

In its heartless pursuit of the world’s technology giants for their claimed violation of its virgin patent, the CSIRO has lost what veneer of scientific respect I had previously accorded it and has taken on the appearance of a giant shambolic gorilla trying to wring all the benefit it can from a technology that it only partially invented and that benefits everyone by remaining an open and free standard.

The agency is not only ruining its own reputation with the technology sector – which, no doubt, will be loathe to work with it ever again — but also Australia’s reputation in the global technology community.

Surely a $250 million pricetag for one puny mathematical patent is enough. The CSIRO should give up its pointless chase of global technology giants and telcos, and let sleeping laptops lie.

Delimiter


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Tin (User):

I used to think CSIRO was cool - but now they're becoming just like any other money hungry commercial entity. What happened to government funded research?

03 June 2010, 11:09 AM (2 years ago)report abuse Send to a friend reply

tl8 (New user):

The government doesn't want to pay for it any more.

Tech research doesn't get as many votes as health research...

03 June 2010, 11:34 AM (2 years ago)report abuse Send to a friend reply

ulicar (New user):

R U kidding me? What do you think, anyone can make let's say USB device without paying a license? How about a FireWire device? How about H.264 player/editor/converter? R U insane, or missinformed?

03 June 2010, 3:34 PM (2 years ago)report abuse Send to a friend reply

Tin (User):

Well I think the point is more that it's a troll style patent (or in this case, sheer luck). CSIRO didn't set out to design a consumer level wireless network system, but happened to discover they had a patent that effected it.

03 June 2010, 3:56 PM (2 years ago)report abuse Send to a friend reply

ulicar (New user):

Patent troll owns patents and does not do any research. CSIRO is “research and that is it” organization. CSIRO is not a troll by any measure, and who says they are is either misinformed, or purposely and deliberately spreads misinformation, or is insane. Patent system was set up to protect CSIRO type of organizations. It is now abused by trolls, but that does not make a research organisation a troll by any means.

03 June 2010, 4:09 PM (2 years ago)report abuse Send to a friend reply

MainlyMe (New user):

What unmitigated pap!! The Aussie tax payer should rejoice in the fact that revenue from past technology development can now be applied to current funding so saving your precious tax dollars for other valid purposes (be that education, health cre or whatever). This is WHY you invested in CSIRO all those years ago, for heaven's sake. If you guys don't want the revenue send it acros the ditch to us in Kiwi-land. e'll find a use for it!

03 June 2010, 3:36 PM (2 years ago)report abuse Send to a friend reply

apckay (New user):

You must be kidding? CSIRO comes up with something genuinely novel and useful after real research work and you want to deny them the benefit of that? Quite the opposite should be true. This case IMHO is exactly how the patent system should be working.

A patent troll would have sat on this patent and then sprung it out only when other companies had already entrenched it into their products and made a success of it. If you know the history of CSIRO's patent you would understand that they haven't and aren't using that blackmail approach. They have been asking the tech companies to pay the licensing fee for over 10 years. Those companies initially agreed to do so but when the time came to pay up they gave CSIRO the bird.


03 June 2010, 5:23 PM (2 years ago)report abuse Send to a friend reply

Marak (New user):

grr double post

03 June 2010, 10:26 PM (2 years ago)report abuse Send to a friend reply

Marak (New user):

As Tin said, CSIRO useto be something that we as (at the time) Australian Students would look upto and say "Hey we to are in the big league with technology", we would dream one day of working with science and technology as they had shown us was possible. Now were growing up and seeing how they act now. How will my children react to this news - they wont see a CSIRO that i saw as a child, they will see another corporation, who succeeds by stiffling innovation and using any excuse for more money.

On another note, do the developers wonder what the world would be like without that technology? Do the judges and lawyers really think someone would not have invented a similar technology? Is this such a big thing, that anyone who uses the research should be paying for it so far into the future?

If the government does not pay for the research, does that mean that any government industry is allowed to demand money off others to be able to function correctly? I always believed funding came from the government, and if there is not enough funding, shouldnt the public be enlightened to that fact so that we - as the tax payers(who are ultimately funding these projects) make those decisions and pass them on to our elected representatives?

I believe that any reference to funding by the CSIRO is a cop out - this is not the way to go about funding. Any government research is ultimately in the hands of the Australian public - and imho the Australian public is not one to stiffle innovation - which sending lawsuits such as these do by saying, if you want to use this technology, you must pay us - adding to the base line.

Very Disappointed and saddened by this once beacon of hope for our technology industry, which is now acting like some money hungry corporation who has to resort to litigation.

- Marak

03 June 2010, 10:28 PM (2 years ago)report abuse Send to a friend reply

ulicar (New user):

First, CSIRO is not stiffing innovation, WiFi would not exist without their research. If you followed this like I did, you would know they flagged the patent early and the industry agreed to pay licence. Then they decided not to and to fight in courts. They lost and that is it. It is not the first time the big players do that. Microsoft stole i4i technology few months back and have to pay $400 million for that. They are big because they do not play like you think they do. They are in this for the money and the only thing one can do is ask them to pay for the research they want to use.

Today you can do nothing without paying licence. You cannot purchase a PC without paying licence for USB, FireWire, Ethernet… anything in there is licensed and the license fee is in the price. CSIRO wants nothing else but to get a piece of the pie. They are going after the biggest players in the world, and $1 billion might sound a lot to you, but Bill Gates’ fortune is estimated to $50 billion. Not the Microsoft, which is at about $250 billion, but Bill Gates. Apple is worth about $300 billion, Sony $100 billion … They are all there for the money, not for the good of the people and they should all pay for using the technology they did not invent. Apple is making a fortune on WiFi. They make more WiFi devices than any other maker, and they should pay. The bottom line Apple will not cross, the least margin they accept is 45%. 45 percents! They can make all of their products almost half the price and still make a profit, so why don’t they? They are here for the money!

Google just opensourced their video codec, and there is already a patent pool to fight all adopters of that codec. What do you think whose patents are in the pool? Yes, the companies CSIRO wants to pay for their WiFi patent. Patents were invented for this purpose, to protect the people who invest in the research from companies who want to rip of their research and use it. It is not stiffing the competition, it is promoting information sharing for a reasonable fee.

04 June 2010, 9:57 AM (2 years ago)report abuse Send to a friend reply

todd_h86 (New user):

Trolling as apposed to Apple suing HTC for the movement of unlocking a phone? That to me trolling!! If the CSIRO did the work to create something, they deserve regonition/compensation for it. On the other hand, Apple suing HTC because they both use fingers sliding across a screen to unlock a phone is just perposterous!
The whole patent scene is laughable, and really needs to be re-done.

Wasn't the whole patent idea so that the people who do the hard work to develop an idea can make some money off it before it becomes generally used everywhere? In which case the CSIRO shouldn't be compensated, but we don't abide by that rule anymore..

04 June 2010, 2:42 PM (2 years ago)report abuse Send to a friend reply

petert (Advanced Forumologist):

I am stunned by some of the comments! Australians pay royalties to other countries for just about every piece of hardware and software that we use, if not every piece! For many items, we pay multiple royalties. Now we have a chance to re-claim some of that money through brilliant research and people complain? Some of you really need to check your moral compass!

04 June 2010, 6:13 PM (2 years ago)report abuse Send to a friend reply

Ausman (New user):

It's not the 1970s anymore and last time I checked IBM wasn't owned/funded by taxpayers - it's a profit making company so comparisions are rather limited. It's fine to be generous when you are rolling in cash (ask Bill Gates) but CSIRO is not. It's funded by us and it makes sense to recoup money fairly when others are making profits from their developments. I don't see anything wrong with this at all - as long as the money gets reinvested in future research - rather than Labour party stimulus schemes ;-)

$270m is not much when my local primary school new hall (next to the existing one) is costing taxpayers $5m! Maybe if we invested the stimulus money in research rather than guaranteeing jobs for life for labourers in the the building industry we might actually be a clever country.

07 June 2010, 12:31 AM (2 years ago)report abuse Send to a friend reply

JackJack (New user):

Check your facts about IBM - they had major issues managing 40,000 patents.
They didnt do it because of "Good Will" they did it to make their most valuable patents easier to manage.

14 June 2010, 9:53 AM (2 years ago)report abuse Send to a friend reply

zeus (New user):

I note that nobody (other than me)seems to have a problem with large American pharmaceutical companies and research labs. patenting human and plant genes, even Australian ones!

01 April 2012, 11:28 PM (1 year ago)report abuse Send to a friend reply

f3lix (New user):

The real story is not that CSIRO deserves to be paid for patented ideas. It is that they neglected to patent WiFi in China, India, Russia and Latin America because at the time they couldn't foresee the need for it. Why are clever people so dumb?

02 April 2012, 10:33 AM (1 year ago)report abuse Send to a friend reply

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