Monthly Archives: March 2015

March 3, 2015 · 20:48

The dangers of freedom

I am all for freedom, I reckon that anyone growing up in Western Europe, USA or the Commonwealth has that same feeling. We love our freedom. There is however a dangerous downside. As I see it, freedom comes with the granted option to become an idiot, a moron or any other type of person that we usually find revolting to some extent. There is another group. There is nothing wrong with hem. They seem to be nice, they seem to be honest, and usually are portrayed as fair and they believe in fair dinkum. This is all good, no negative word on that part, they also exercise their right to free speech and they do just that. They believe in certain change, which is all good, but now these people are pushing us all into a dangerous area, where the consequences could be dire. This is not so good, yet they believe that they are doing the right thing. Some might state that the road to hell is paved on good intention. I think that this is too strong a statement, I believe that those people are getting on a bandwagon that goes into a foul direction, because they do not foresee the dangers that lie ahead. This is the issue!

We see this side in the Guardian (at http://www.theguardian.com/commentisfree/2015/mar/03/australian-republicans-we-can-no-longer-afford-to-wait-for-the-monarchs-passing). The title ‘Australian republicans: we can no longer afford to wait for the monarch’s passing‘ gives a hint of what some might regard as treason, but I am still willing to see it as people, devoted to Australia, but not seeing the dangerous currents of that journey. That excuse is not valid, when we consider the article with Bill Shorten (at http://www.theguardian.com/australia-news/2015/jan/25/move-to-a-republic-would-show-australia-is-modern-and-inclusive-bill-shorten-says), ‘Bill Shorten: move to a republic would reflect a modern and inclusive Australia‘. Here we go on dangerous grounds.

You see, the politicians are all about self-preservation! No matter who gets hurt in the process!

My reasoning? I had highlighted them on earlier events, the list is long. One link is found with the ABC (at http://www.abc.net.au/news/2014-02-10/shorten-says-car-manufacturing-shutdown-was-not-inevitable/5250834), Where Bill Shorten stated: ““All of a sudden, all the car component makers (in Australia) for Holden don’t have enough work,” he said. Mr Shorten says “government subsidies for car makers are essential for keeping manufacturing alive”“. Well, we have seen the use of subsidies, in that same article we see the statement: “”Australia subsidises its car manufacturing in the order of about $17 (per car), whereas the Germans do it at about somewhere between $65 and $90 and the Americans, $250″”, yet, when we see the Australian (at http://www.theaustralian.com.au/opinion/columnists/lies-damn-lies-and-car-subsidy-statistics/story-fnbkvnk7-1226824091831), we get: “Reworking the figures, it turns out that Australia has subsidised the manufacturing of vehicles to an extraordinary extent — $US1885 per vehicle, compared with Sweden ($US297), Germany ($US206) and the US ($US166). In other words, Australia has the highest rate of budgetary assistance of the seven first-world countries listed“. We could argue that this amounts to slave labour, as the subsidies is so large that the factories end up with prepaid labour. How is this not regarded as slave labour? Because people are allowed to go home and the money comes from somewhere else? Why should car be subsidised to SUCH extent? In addition, we get the quote “We now know that Toyota Australia has received nearly $500 million in the past four years. Given that there are some 2500 Toyota employees, this works out at $50,000 a worker a year“, so we have car manufacturing plants which seem to come with prepaid labour. How can a nation survive when these factories bend over backwards to avoid taxation and in addition, they received well over $100 million a year?

The next part comes from the Courier mail (at http://www.couriermail.com.au/news/opinion/opinion-the-nations-budget-is-broken-but-bill-shorten-and-labor-wants-to-stop-us-fixing-it/story-fnihsr9v-1227143768045), “The Budget deficit blew out to an astonishing $48 billion last financial year, largely because the previous Labour governments went on a massive spending binge and left nothing but IOUs in the kitty come the next global financial crisis“, by the way, the Labour party has NEVER given any clear explanation on how that money was spend, on what it was spend, and who signed for it. I reckon that is why the Labor party decided on the three party stooges approach (I wonder who plays Curly), namely Kevin Rudd, Julia Gillard, and now Bill Shorten. There was additional bad news, there is NO WAY that the drop in Iron was to be predicted. Neither Labor nor Liberals saw that coming. It cut export with an additional amount surpassing 30 billion, when the coffers are empty, that is not a good thing.

Now we get to the Bill Shorten Republican view. Here we see the following: ““Let us breathe new life into the dream of an Australian head of state,” he said. “114 years ago Australians found the courage and goodwill to transform this continent into a commonwealth. In the 21st century let us live up to their example. Let us declare that our head of state should be one of us.”“, you see, the article reads nicely unrealistic. There are parts that are not mentioned at all. I will get to them soon.

In the same light that Labour overspend us into massive debt, as Labour wrongly ‘illustrated’ the car industry, he also sees his option to get a little ahead as a possible first head of state (odd, do we not have a prime minister?), as he fantasises himself to become. You see, becoming a republic comes with a massive amounts of additional debts we cannot even fathom. As part of this Commonwealth, we are not alone, our army is a joke compared to Russia or China (65000 soldiers do not add up to much against the other large players), even against Indonesia, which might not have state of the art equipment, but they outnumber us 4 to 1, not the best odds to have. Together as one Commonwealth, the United Kingdom, Canada and Australia, we do wield a massive bat, we are part of a whole. So if China wants to play rough (or Russia for that matter), we have a few big brothers in our corner. Now, we could rely on New Zealand to give aid as soon as needed (they would never back down from helping a neighbour), but as Air Vice-Marshal Gavin Turnbull might confirm, the Sopwith Camel really does not have the range to make it to Australia, meaning we need to rely on our own planes alone.

This is only one element and not the most important one when we need to rely on our freedom. You see, I believe that Labor is squarely in the pocket of the US Democratic Party (the one who nearly bankrupted the US), the US is playing too many dangerous games, enabling big business, not holding big business accountable and overall not having the ability to manage its budget. Labor is on the same footing, and how long until the Labor party dances to the song of the White House, making us lose our choices, our freedoms and our value of fair dinkum. Is that what we desire?

What is so bad on being part of what we used to regard the British Empire? I believe that the core values that this Empire had, which were moved into this Commonwealth of ours is still good, it is still strong and it is every bit as Australian as it is British. When the lower classes here lose it all as business no longer deems these people to be of marketed value, who will they cry for? Labour? No, that lot just gave their rights away. In this the Liberal party is not without faults either, but they are not on the republican horse, giving us heaps more options.

This economy is in a bad state, no one denies that. I myself am hurting as much as many others, but like the harsh methods of Germany in 2009, their Austerity saved them and got them on top, I feel that the same will work here, Labor overspending by spending each annual budget twice is too dangerous for us. This is at the heart of the issue.

It is all directly linked to us remaining part of the Commonwealth, the one part that Labor SHOULD have been doing, they are not (or so it seems)! I voiced more than once that our future is on finding strong interactions with other Commonwealth members and offer what we have in surplus, whilst getting what they have in surplus. With Nurses here looking for jobs and the UK having such a massive shortage, why are we not seeking solutions together? Not just the medical industry, we need to put our commonwealth heads together, solving them together, not playing politics on who looks better in a pissing contest, which leaves us with a smelly floor and no actual solution. In this we should also look at what we could mean to Scotland and vice versa. Scotland will at some point be more independent, would it not be great if our message of fair dinkum and our workforce could help this stability, because a stable and prosperous Scotland helps all members of the Commonwealth, including the UK.

So as the Honourable BS talks about some republic, he should realise that unless the deficits and the bad economy are solved, we have no future ahead, other than one as someone’s vassal, a path we evolved from long ago, so whatever story he spins on how the republic gets a better business profile would soon be dead, as soon as people realise that it only opted for one goal, to give large corporations a place to get by on 1-3% taxation, how would that ever be fair dinkum?

Trolls are real

No, this is not an episode of Grimm, where we see the Hässlich as they collect their fee. This is not the case of David Giuntoli, beheading reapers and taking care of the trolls. This is today, the trolls are real and the fee goes up by hundreds of millions. This is the case of SMARTFLASH LLC, et al. v. APPLE, INC., et al. The article was from Cnet, but I got wind of it through EpicTimes. All this got to blows not because of the amount, but because this issue has been allowed to fester for well over two decades. The issue takes a legal leap into the unknown, which is still unmanaged at present. The questions that we have to pose is in two parts.

Is this a festering scene?

You see, it is nice for Apple to cry wolf, but is it a valid scene of the crying? The fact is that Smartflash LLC has 7 patents, the first one filed Oct 25, 2000, with a Foreign Application Priority date (UK) of Nov 25th 1999, and this makes it a patent that was filed before the initial release of Apple’s iTunes, which was January 9th, 2001.

The Apple response we see (at http://www.cnet.com/news/apple-ordered-to-pay-533-million-over-alleged-itunes-patent-infringement/)

“Smartflash makes no products, has no employees, creates no jobs, has no U.S. presence, and is exploiting our patent system to seek royalties for technology Apple invented. We refused to pay off this company for the ideas our employees spent years innovating and unfortunately we have been left with no choice but to take this fight up through the court system”, so let’s take a look at the slightly empty response as I see it:

‘Makes no products‘, is not a prerequisite for a patent;

‘Has no employees‘, is also not an issue, someone filed for this case and someone filed for a patent. Whether this is an employee is not an issue;

‘Exploiting our patent system to seek royalties for technology Apple invented‘, is slightly moot. The patent was filed before iTunes existed, hence, we could argue that Apple did not invent what they did, the latter statement is an incorrect one, but I will return to this.

Now let me rephrase the Apple statement in a very unflattering way: “Smartflash had an original idea, the idea was not novel because this is the direction the world was moving to”. This notion was a clear given ever since day two that Napster got active. The people understanding these technologies would innovate and come up with ideas. Unlike me, who was a Patent Virgin in 1999 (and unaware of the power they hold) would see that the future is all about IP, so some of these people would file the ideas and they would stick. Now we see that Apple might have reinvented the wheel, but reinvention is no invention at all. It becomes a license and Smartflash LLC only had to wait for their chooks to grow and grow. Now pay day has arrived.

So as we go back to the initial part, questions come to mind. Questions many (including Apple) might not want an answer to, because the answer might be a lot scarier than we all imagine. You see, in previous blogs I discussed the dangers of a faltering and collapsing economy, because those in charge remained too flaccid to actually act on issues. The consequence is that if a monetary system collapses, what will replace it? In my view, the new currency for any corporation and government is Intellectual Property. If that is true, than those who own the property will become the new true wealth.

This makes Patrick Racz a visionary of massive fortune, if we see the first fee that Apple will end up paying, what will happen to the next step? What will the Samsung invoice become? Beyond that, Apple now has a choice to make, the entire DRM future is now no longer in the hands of the large industrials, so that coin will be making massive waves soon enough.

So where is the festering part? Well, Patent Trolls are not a new group. This ‘valid’ group has existed since the early 90’s. So over the last two decades, this groups had not been dealt with. The valid question becomes, should Patent Trolls be dealt with? You see, patents get bought all the time, someone goes bankrupt, the patent is bought, perhaps sold by a bank trying to limit its losses. This market evolved, because the issue as is, is that corporate ‘losses’ due to patent trolling has been exceeding 20 billion a year from 2010 onwards. So, why not act against trolling?

The question becomes is it wrong to be a troll? The Hässlich might disagree if we say yes. The fact is that those with the novel idea, might not have the means to pursue the real deal. So they might want to file their original idea. To give you an example, which you might not believe, is that I came up with the idea around 1994. Now, it could be seen as a DPod (Data Pod), my idea was not in that direction, you see. In my past I was confronted with the ‘joke’, that was known as a tape streamer. It was a backup solution that never properly worked in households. So I had the idea to make the Minidisc a backup device. To connect it to computers, so that we could copy files, the Minidisc looked like a 3.5″ floppy, but could hold hundreds of megabytes. It could have evolved the need for diskettes and it would have propelled data halve a decade earlier. I would have been decently wealthy. So, I should have patented the idea (although, in those days I did not realise I could). So as such, Patrick Racz was the clever one. Yet, in view of all this, did Apple lag? That becomes the cornerstone in all this. Does it matter? Is a more apt question. A patent was filed, Apple did not do its homework as I see it a cost comes into play.

So now we get a new issue, will Apple et al ‘force’ a change in patenting? Will capping be imposed? All decent questions that are for tomorrow. For today, Apple gets to admire its own armour, which is not as shiny as it was yesterday. I must however state, that I personally do not think that Apple did anything wrong. Now I return to the initial exploiting part I promised to revisit. They came up with an idea and they designed it. In 1370, a Dutchman named Laurens Janszoon Coster came up with an idea, it was the printing press. He came up with the idea around the same time Johannes Gensfleisch zur Laden zum Gutenberg came up with the same idea. They both had similar (not identical) ideas in a time when the need for a cheaper solution was needed. The Dutch and the Germans all state that their citizen discovered the idea, which is fair enough. I think that this is a similar situation. In all fairness it seems to me that the patent system did not allow for such a situation, it does not make it right or wrong, the situation just is. In a land (US) where it is all about number one, it must now bite that this patent is in hands of a non-American. So as we realise that any system is flawed, is it flawed enough? If patents are about innovation, are the little people the solution? I have always believed that true innovation will survive, big companies will need to consider the age old situation, having the person with the ‘nice’ PowerPoint, does not mean that they have the innovation.

Is it unmanaged?

Like any legal system, the Patent system is good, but is it good enough? This one case is calling for visibility, but one case does not a change make. If we go back to 2013 we see the following in Forbes (at http://www.forbes.com/sites/toddhixon/2013/10/04/for-most-small-companies-patents-are-just-about-worthless/). “But, TechCo will need to use a lot of other technology to build and deliver a complete product, e.g., the product design might be protected by a patent, but the manufacturing process might be subject to another company’s “blocking” patent“. Here is the kicker, there has been a lot of noise on how large corporations have the ability to block others. If we accept Business Insider (at http://www.businessinsider.com.au/chart-of-the-day-the-totally-useless-patent-wars-2014-10) “In other words, based on patent cases brought to court by Apple, Samsung, Microsoft, Nokia, Motorola, and a host of others, litigation is, more often than not, a serious waste of time and money for all parties involved“. The question is, should the system change? Because these big boys are in disagreement, does not mean that the system should just fall away. Are these patent cases valid to begin with? If we look at the quote “As it turns out, only 20 or the 222 patent assertions (9%) were able to establish liability, but even in that small sample, only 10 of those 20 cases resulted in “lasting injunctive relief.” Mueller says that number would be even smaller if “the patents underlying Nokia’s German injunctions against HTC had come to judgment in the Federal Patent Court.”“. My question is that if the numbers are this skewed, why take it to court in the first place? What was the tactic behind it? Delay? A mere pissing contest or was this about satisfying the need for additional costs? I have no idea, but the result data speaks for itself. Is the score so impressive that pursuing a 10% chance is essential, worth the effort or it is something else?

I do not proclaim to have the answer, but the questions are not getting asked, moreover, the press at large have all quoted Apple on their ‘indignation’, but answer me this, how many papers gave any view, brought any decent quotes from Brad Caldwell apart from the one liner victory? In addition, when we see Reuters (at http://www.reuters.com/article/2015/02/25/us-ip-apple-verdict-idUSKBN0LT0E720150225), the quote “Apple, which said it would appeal, said the outcome was another reason reform was needed in the patent system to curb litigation by companies that don’t make products themselves“, that sounds nice in theory, but that leaves only the large companies in charge of it all, it takes out the small innovators whilst large corporations are left choking those small innovators for a mere tuppence to get complete control. Patents were never designed to give power to the manufacturers, they were an exclusive rights granted by a sovereign state to an inventor or assignee for a limited period of time in exchange for detailed public disclosure of an invention. However, as the world became all about shore term goals and iterative exploitation, in that regard patents are a massive impropriety to the need of large corporations.

Time will tell what direction the legal industry makes, for now, as Apple and Google are so about non tax accountability, the danger of actual change remains not too large (only for now).

Monthly Archives: March 2015

The dangers of freedom

Trolls are real

Recent Posts

Archives