Nov 04 2007

Wi-LAN the Evil!

Published by Sean at 9:29 am under opinion,technology

I have noticed over the last couple of days, stories cropping up over the technology news sites about Wi-LAN launching lawsuits against a number of companies selling consumer wireless networking products. Why is this something worth blogging about? It’s the subtle ways the stories are being written, then the way the typical respondents post their comments. It is… well… typical. It reinforces my belief that the masses of individuals, especially those who troll the technology web sites are utterly predictable and easily manipulated.
Manipulated you say?
Indeed. These stories talk about Wi-LAN as a technology Intellectual Property, or IP company. IP may be all that is left of Wi-LAN, I don’t know what their R&D efforts are these days, but it really doesn’t matter. At one time they used to be a player in the R&D of wireless networking equipment, then supplier of internet service provider (ISP) grade wireless access gear. Rural broadband comes to mind. They survived the dot com crash but are a skeleton of what they once were, now they are self described as a technology licensing company.
How is describing Wi-LAN as an IP firm manipulating? Simple. Let’s start with the Rambus case study.
Anybody familiar with Rambus knows that they ultimately failed in their quest to essentially own the IP surrounding the random access memory (RAM) market, and the masses of internet posters, myself included, rejoice. Rambus, used to be a member of a standards organization called JEDEC (Joint Electron Device Engineering Council). Defendants allege that while Rambus was a member of JEDEC, they participated in the definition of future memory standards and technology, for which they either owned patents for, or were writing patents for. Several years later they demanded license fees from memory manufacturers. It was a long and bitter battle, eventually their quest ended in defeat by hand of the courts. For years Rambus was the height of evil in the eyes of community posting their comments to technology forums and web sites. That is the executive overview of how Rambus became a symbol of evil to an easily identified community, their other practices and strategies are not the topic of this article but also leave a bad taste.
Next let’s consider another company described in the technology news as an IP company. This company is named NTP. NTP claimed to own patents being used by a company called Research In Motion(RIM), the makers of Blackberry. I believe NTP really was an IP company by definition. Their only business ventures were conducted by legal staff. They owned five patents that were all ultimately rejected by the US patent office after they were contested, but they stood long enough to extract over 600 million USD from RIM. If you want to research a craziness of patent law, this is a great place to start. While this story was hot in the technology news market, just mention the word NTP in the same sentence as anything else, and you could manipulate the masses of comments and opinions to follow.
The last example I will identify is the case of SCO Unix. SCO was once a reputable flavor of Unix, but their popularity instantly disappeared when they launched a series of lawsuits against other companies who had their own version of Unix, as well as the open source community. Their argument, was that these other Unixes violated their rightful copyright and ownership of Unix. In the end, it is unknown whether or not there is any copyright violation, but what SCO claimed to own, the courts found that the real owner was Novell, and Novell has stated that they have no interest in pursuing this claim. Simply suing other Unixes for copyright infringement is no big deal in my opinion, but targeting the open source community and the masses of Linux users was what ultimately brought them into the company of Rambus and NTP. Grim smiles are now exposed by those who follow these stories in the technology news sites today, as SCOs failure has led them to bankruptcy.
Back to Wi-LAN, I have no idea whether Wi-LAN is making a legitimate claim for patent infringement, and it really doesn’t matter. Simply stating in the technology news stories that an IP company named Wi-LAN is suing companies for patent infringement puts them in the company of Rambus, NTP, and SCO. People who have never heard the name Wi-LAN instantly think of them as evil without knowing anything about them or their claim. Wi-LAN is guilty, their name is forever smeared in the opinion of those who follow technology new.  If they do not win this case, they are utterly doomed, no-one would dare do business with a company who has had their name and reputation destroyed.

3 responses so far

3 Responses to “Wi-LAN the Evil!”

  1. Rambus - An Alternate Realityon 04 Nov 2007 at 1:35 pm

    Sean,

    “Anybody familiar with Rambus knows that they ultimately failed in their quest to essentially own the IP surrounding the random access memory (RAM) market”

    How about doing some extra research on your rmbs story? Try the rmbs forum at

    http://www.investorvillage.com or here at Business Week:

    http://www.businessweek.com/technology/content/jun2006/tc20060601_714385.htm

    PS – I am long rmbs.

  2. seanon 04 Nov 2007 at 3:14 pm

    Interesting link to business week. The big beef by Rambus is what turns out to be an industry cartel fixing prices. The collusion by the RAM industry, if it happened, is a despicable act, but that is ultimately a different issue.

    Rambus sued the memory manufacturers for royalties on DDR technology, that has nothing to do with memory manufacturer’s price fixing. Their participation in JEDEC, and the perception that they used that membership to unethically gain patents was the reference behaviour of my article. Had they been successful, they would be collecting royalties from every memory manufacturer on the planet. That is what the technology news sites focused on and therefore drew the ire of their readership. And their failure at the time to gain control of these broad patent rights did cause many to breath a sigh of relief.

    Rambus has some excellent technology, but it was poorly matched with the P4 netburst architecture. It performed much better on platforms that were more bandwidth sensitive vs latency sensitive. If Rambus were able to market there memory technology to work with processors that have integrated memory controllers, it’s advantages would have shown. The negative performance reviews on consumer platforms only sealed it’s fate given it’s higher price at the time, regardless of whether or not the reasons for that higher price was ethical.

    Time will make a lot of people forget Rambus’s previous failure to establish RDRAM in the consumer PC market and all the bad press that circled from that. However it is performing well for the Sony PS3, and making it’s product a commodity item could serve it well in consumer market.

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