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  • Apple Accused of Feeding Digitude Innovations - a Company Known for Patent-Trolling


    According to a new report, Apple has moved some of its patents to the patent-licensing firm Digitude Innovations, which is prompting accusations of the Cupertino giant aiding a so-called “patent troll.” Digitude Innovations filed a suit against a number of tech giants this week including RIM, HTC, LG, Motorola, Samsung, Sony, Amazon, and Nokia. Apple was one of the few companies notably absent from this list.

    Further investigation from the folks over at TechCrunch revealed that two of the patents wielded in the lawsuit had belonged to Apple earlier this year. The report noted that documents had been uncovered confirming a license agreement between Apple and Digitude, though the details of the agreement were not made available to the public. Apple apparently transferred a number of patents to a shell company named Cliff Island LLC earlier this year. Though there was little information provided on the topic, Jason Kincaid was able to ascertain that the company’s address is the same as Digitude investor Altitude Capital. Furthermore, it was later revealed that Cliff Island subsequently transferred the patents to Digitude.

    A report from Forbes from June also noted that Digitude Innovations was created by Altitude founder Robert Kramer. Altitude proceeded to invest $50 million for the purpose of purchasing consumer electronics patents that would be used to sue big tech companies. At the time, Kramer mentioned he had “reached out to many of our prospective customers to encourage them to become early strategic licensees” while a formal licensing program was amidst a fourth quarter launch. It was also noted that Digitude is utilizing a new invest strategy of allowing investors to contribute patents instead of money. The companies that participated would then receive a license for all of the firm’s patents. Since Digitude is primarily in the business of acquiring patents only to use them to sue others, the company has been labeled a “patent troll.” However, Kramer asserts that he is a financial investor with legitimate claims.

    It isn’t completely clear whether Apple entered a more formal agreement with Digitude beyond a licensing agreement. Kincaid does offer several plausible scenarios for its relationship with the company though. According to him, Apple could be using Digitude as a “hired gun” in its patent battles. It was pointed out that Apple didn’t hesitate to sue its competitors outright when the company felt its intellectual property was being infringed upon. There is a possibility that Apple may have traded its patents to Digitude as part of a settlement and to be fair, Kincaid did note that this scenario “seems more likely,” while noting that it is hard to see Apple in a “positive light” if that were to be true.

    "The idea that the company didn’t have any options other than handing over valuable patents to a patent troll — knowing full well that it would then use those patents to sue other tech companies — seems ludicrous," he wrote. He also mentioned that Apple is by no means strapped for cash with $81 billion in the bank. It is a bit disturbing to think of a company doing so well possibly using dirty tactics such as providing aid to a “patent troll” to benefit.

    The topic has been one of much controversy, so naturally we want to hear how you feel about it. Let us know below!

    Source: Forbes, TechCrunch
    This article was originally published in forum thread: Apple Accused of Feeding Digitude Innovations - a Company Known for Patent-Trolling started by Akshay Masand View original post
    Comments 12 Comments
    1. Cellular's Avatar
      Cellular -
      A company is a company no matter what. It's more of give me your money and fk the people. :/
    1. nicrfe's Avatar
      nicrfe -
      You do realize apple has a legal obligation to attempt to maximize profit in all legal ways. If they didn't they would not be living up to the fiduciary obligation to their investors. If its legal and profitable to sue or support a troll they must do it. It's the law.
    1. jOnGarrett's Avatar
      jOnGarrett -
      Add this to the long list of reasons why Ive been boycotting apple since 06.2011 and I'll continue to do so until all this madness stops. hopefully one of these companies will go to far and the FCC will get involved.
    1. SnowLeo's Avatar
      SnowLeo -
      Quote Originally Posted by nicrfe View Post
      You do realize apple has a legal obligation to attempt to maximize profit in all legal ways. If they didn't they would not be living up to the fiduciary obligation to their investors. If its legal and profitable to sue or support a troll they must do it. It's the law.
      Its only the law because of the corrupt politicians that support this crap because they benefit personally from it too. American capitalism is not actual about the consumer, its about putting money into the pockets of those in power and giving the appearance of helping the consumer while screwing them over behind their back.
    1. xLastWishx's Avatar
      xLastWishx -
      Quote Originally Posted by jOnGarrett View Post
      Add this to the long list of reasons why Ive been boycotting apple since 06.2011 and I'll continue to do so until all this madness stops. hopefully one of these companies will go to far and the FCC will get involved.
      And yet, you're still here. LET'S ALL BOYCOTT APPLE! BEST PLACE TO DO IS ON MODMYI!!!!1!11!1

      Apple is just scared. That's all. Let them be scared because they're just mad that they're starting to lose. Though, frankly, I don't understand the point of being scared when the simple solution is LISTEN TO YOUR CONSUMERS. Either way, I'm happy with my iProducts but I won't be "boycotting" them any time soon (Or at all in general). Does that make me a fanboy? No, because I'm also Pro-WP7 as well as Pro-iOS. Android can SMD.
    1. iPod's Avatar
      iPod -
      Quote Originally Posted by jOnGarrett View Post
      Add this to the long list of reasons why Ive been boycotting apple since 06.2011 and I'll continue to do so until all this madness stops. hopefully one of these companies will go to far and the FCC will get involved.
      You and LivesForJihad together can go boycott apple and put them out of
      business. Good luck with that.
    1. KraXik's Avatar
      KraXik -
      Quote Originally Posted by jOnGarrett View Post
      Add this to the long list of reasons why Ive been boycotting apple since 06.2011 and I'll continue to do so until all this madness stops. hopefully one of these companies will go to far and the FCC will get involved.
      Maybe you should do us all a favour and boycott MMi.
    1. MYPHONEI's Avatar
      MYPHONEI -
      Quote Originally Posted by Akshay Masand View Post


      According to a new report, Apple has moved some of its patents to the patent-licensing firm Digitude Innovations, which is prompting accusations of the Cupertino giant aiding a so-called “patent troll.” Digitude Innovations filed a suit against a number of tech giants this week including RIM, HTC, LG, Motorola, Samsung, Sony, Amazon, and Nokia. Apple was one of the few companies notably absent from this list.

      Further investigation from the folks over at TechCrunch revealed that two of the patents wielded in the lawsuit had belonged to Apple earlier this year. The report noted that documents had been uncovered confirming a license agreement between Apple and Digitude, though the details of the agreement were not made available to the public. Apple apparently transferred a number of patents to a shell company named Cliff Island LLC earlier this year. Though there was little information provided on the topic, Jason Kincaid was able to ascertain that the company’s address is the same as Digitude investor Altitude Capital. Furthermore, it was later revealed that Cliff Island subsequently transferred the patents to Digitude.

      A report from Forbes from June also noted that Digitude Innovations was created by Altitude founder Robert Kramer. Altitude proceeded to invest $50 million for the purpose of purchasing consumer electronics patents that would be used to sue big tech companies. At the time, Kramer mentioned he had “reached out to many of our prospective customers to encourage them to become early strategic licensees” while a formal licensing program was amidst a fourth quarter launch. It was also noted that Digitude is utilizing a new invest strategy of allowing investors to contribute patents instead of money. The companies that participated would then receive a license for all of the firm’s patents. Since Digitude is primarily in the business of acquiring patents only to use them to sue others, the company has been labeled a “patent troll.” However, Kramer asserts that he is a financial investor with legitimate claims.

      It isn’t completely clear whether Apple entered a more formal agreement with Digitude beyond a licensing agreement. Kincaid does offer several plausible scenarios for its relationship with the company though. According to him, Apple could be using Digitude as a “hired gun” in its patent battles. It was pointed out that Apple didn’t hesitate to sue its competitors outright when the company felt its intellectual property was being infringed upon. There is a possibility that Apple may have traded its patents to Digitude as part of a settlement and to be fair, Kincaid did note that this scenario “seems more likely,” while noting that it is hard to see Apple in a “positive light” if that were to be true.

      "The idea that the company didn’t have any options other than handing over valuable patents to a patent troll — knowing full well that it would then use those patents to sue other tech companies — seems ludicrous," he wrote. He also mentioned that Apple is by no means strapped for cash with $81 billion in the bank. It is a bit disturbing to think of a company doing so well possibly using dirty tactics such as providing aid to a “patent troll” to benefit.

      The topic has been one of much controversy, so naturally we want to hear how you feel about it. Let us know below!

      Source: Forbes, TechCrunch
      Why does Apple need shell companies if its legal?
      Those needing to hide and lie are shady
    1. pyroemaniac's Avatar
      pyroemaniac -
      Quote Originally Posted by xLastWishx View Post
      And yet, you're still here. LET'S ALL BOYCOTT APPLE! BEST PLACE TO DO IS ON MODMYI!!!!1!11!1

      Apple is just scared. That's all. Let them be scared because they're just mad that they're starting to lose. Though, frankly, I don't understand the point of being scared when the simple solution is LISTEN TO YOUR CONSUMERS. Either way, I'm happy with my iProducts but I won't be "boycotting" them any time soon (Or at all in general). Does that make me a fanboy? No, because I'm also Pro-WP7 as well as Pro-iOS. Android can SMD.
      Speaking of Trolls...
    1. zrevai's Avatar
      zrevai -
      Quote Originally Posted by nicrfe View Post
      You do realize apple has a legal obligation to attempt to maximize profit in all legal ways. If they didn't they would not be living up to the fiduciary obligation to their investors. If its legal and profitable to sue or support a troll they must do it. It's the law.
      There is a limit on that responsibility to make a profit. There is such a thing as ethics in business and ultimately it's up to Apple's Board of Directors where to draw that line. Many a CEO has been tossed out on their @ss for shady/unethical business practices.
      If they do go to far there is always the bureaucratic nightmare of the SEC and the ITC to jump in and try to stop the practice in question if Apple's Board can't control/handle or won't stop the activity.
    1. SwatPac's Avatar
      SwatPac -
      Duh. Everybody knows that trolls feed on Apples.
    1. xLastWishx's Avatar
      xLastWishx -
      Oh okay, yet when Google gives HTC patents to use against Apple it's okay. I mean COME ON Google is SO innocent.

      @pyroemaniac - Yes, what about them? Are they bugging you so much it interrupted your thought?