Why did I pick this one?
- There was a Reddit Thread
- Racz had dropped out of school in 8th grade, but I had misread it and thought an 8th grader won against apple
- It focuses greatly on the digital world that we’re a part of
Background Info:
- Patrick Racz, founder of Smartflash LLC, invented three patents related to downloading digital content, all three focusing on data storage and access systems
- Initially, Smartflash LLC produced products, but in 2002, the business died
- An interesting note: the product was actually promoted by Britney Spears
- Her commercial is still on Youtube
What does Racz believe?
- The patent claims focus on “devices, such as handheld multimedia devices, that include certain functionality to enable users to easily pay for and download protected content” (as argued by Caldwell, the Smartflash attorney, who doesn’t disclose specific details that could be used against the company while talking to Apples attorneys)
If this sounds strangely familiar…
- They are owed money for basically the entire world of digital content
- Suing big players including Apple, Samsung, Google, Amazon
Apple’s Argument:
- Smartflash makes no products, has no employees, creates no jobs, has no US presence, and is exploiting our patent system to seek royalties for technology Apple invented
The Verdict:
- Smartflash LLC won $533M
- As we’ve focused on in class, patents are given to those who file for the idea FIRST
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