We have
to tip our caps to Zusha Elinson, who has done more than anyone to
expose the
inner workings of Nathan Myhrvold’s secretive enterprise, Intellectual
Ventures. Elinson previously broke the story of IV
handing
off patents to an NPE, Picture Frame Innovations. Sure enough,
Picture
Frame used the patent to bring Kodak to court for patent infringement.
This may reflect
IV’s new “catch and release” strategy, where a patent holder acquires a
patent,
grants itself a license, and then resells the patent – in this case,
apparently
to a lawsuit-happy NPE. This can
all be done while maintaining a record of not getting directly involved
in
litigation. Meanwhile, according to Elinson, IV gets a stake of whatever
proceeds the NPE makes as a result of the licensed patent, including via
litigation.
Now comes
word that Kodak
is
calling IV on its bluff. Elinson reports that Kodak is demanding
that IV
attend a settlement conference along with Picture Frame.
“The sides are also
fighting over weather Picture Frame’s
relationship with IV should be kept under seal. The briefing outlines
some of
the deal terms, all of which essentially say that IV has no control over
what [famed
NPE
lawyer Ray] Niro does with the patent it sold him. But it doesn’t
answer
the big question: what kind of cut does IV get from the lawsuit?”
Originally,
the Illinois judge presiding over the case agreed with Kodak’s request,
only to
change his mind and merely “encourage” IV to be present.
IV claims
it has not yet made a decision. We will have to wait and see if Myhrvold
and
company are ready to acknowledge their role in these lawsuits or if they
simply
choose to delay the inevitable.
