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SGI Sues ATI for Patent Infringement 283

Ynsats writes "The Register is reporting that SGI is filing suit against ATI for patent infringement. The suit alleges that ATI violated patent number 6,650,327, "Display system having floating point rasterization and floating point framebuffering", which was filed in 1998 and granted in 2003, in its Radeon graphics cards. This is coming fast on the heels of AMD's announcement of the intention to buy ATI for $4.2B and it doesn't seem to be swaying AMD's intentions. AMD hopes to finish the takeover by the end of this year. SGI has also issued an ominous statement stating that they have plenty of intellectual property left and there will be more litigation to come."
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SGI Sues ATI for Patent Infringement

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  • welcome back SGI (Score:4, Interesting)

    by hlimethe3rd ( 879459 ) on Wednesday October 25, 2006 @08:48AM (#16575988)
    So SGI has been reborn as a patent troll? Welcome to the party.
  • When I read about stuff like this, it makes me annoyed. Not because any sense of fairness or ethics (companies don't have morals), but because of the wasted resources. Litigation is money spent without any production at the end. You pay a bunch of bloodsuckers to fight another bunch of bloodsuckers and either you take money from the other guy or the other guy takes money from you, but the only people guaranteed to get paid are the bloodsuckers.

    Imagine if the money spent on spurious litigation went into actual R&D, capital investment for fabrication centers, engineer salaries, hell even advertising. Anything but litigation!

    But as long as there's an avenue to make money this way, you can't really expect companies like SGI to behave any differently. You're providing a way for companies that are no long profitable (either because they have no product, e.g. SGI, or because they have an antiquate business model e.g. **AA) to leech off of the market instead of exiting it. Of course they're going to try to survive and not just go quietly into that good night. So, while I'm annoyed at this behavior, you have to realize that it's intellectual property laws that are the problem. We need fewer and simpler IP laws. Of course, trying to get lawmakers to pass fewer laws is like asking a competitive eater to "take it slow", and that's not even mentioning that the bloodsuckers aren't going to be happy to see yet another cash cow disappear anytime soon.

    How long will it take for public outrage to really grow until real reform is made?

    -stormin
  • A sad day... (Score:5, Interesting)

    by FellowConspirator ( 882908 ) on Wednesday October 25, 2006 @09:22AM (#16576498)
    SGI is late to the table to become a patent troll. If there's any lesson to be learned in the past 5 years in the tech world it's that a business plan built around litigation is no plan at all (unless you are a law firm, then you're basically printing your own money).

    It's a shame too, SGI was a great company with some very good products too.

    However, I would point out that it's not unexpected. One of the reasons that vendors of video cards don't provide hardware programming specs or open source drivers for their products has been for fear of litigation. It's been a prevalent rumor for years that many vendors feel that their products potentially run afoul of a bunch of patents and that's why they are so cagey with letting people understand how to program for their products and to get the best performance out of them. If SGI wins in this suit, expect a horrible blood-letting in the graphics adapter business and prices for premium technology to go up across the board.
  • by nadanumber ( 992974 ) on Wednesday October 25, 2006 @09:26AM (#16576556)
    SGI always poured the lions share of its income into research, and to the best of my knowledge they, even now, continue to do so.

    SGI is the company that today has the very fastest Linux computer - the Altix shared memory multiprocessing family - available at any price, really a technological marvel because it runs a single OS kernel and has memory architecture which is truly phenomenal - it scales better than any other multiprocessing/clustering solution.

    So any defense of their patents, however 'unpopular' with the video gaming set, should be welcomed because it could help a company that we really owe a lot to in many ways get back into the game. Honestly.

    They would not be a 'patent troll'. Don't forget, SGI open sources a LOT of its technology. Much more than most other hardware vendors. Much more.

    I used to work at NASA and our division was largely an SGI shop, and yes, they were expensive, but at the time, there was nothing else out there that was comparable in ANY way. You won't ever find me saying anything bad about SGI except maybe that it would be great if they were cheaper.

    Why? Because they are the best.

  • by AndrewRUK ( 543993 ) on Wednesday October 25, 2006 @09:34AM (#16576718)
    And what, exactly, is creating something original, if not being "the first one to get there"?
  • Re:Oh boy.... (Score:1, Interesting)

    by Anonymous Coward on Wednesday October 25, 2006 @09:39AM (#16576792)
    They have much in common.
    They offered fast hardware with a robust OS.
    Now you can have an equally robust OS ranging from 0$ to less than 500$ (whether you choose Linux/*BSD or MacOS/X or Win); most of them have hardware accelerated OpenGL, etc etc. Linux, MacOS/X and BSDs are even unix-like and posix compliant (most of them at 0$). Intel and AMD offer multicore processors at a wonderfully low price (at least if you compare them to the system SGI was selling..); don't even mention graphic hardware from nVidia and ATI.

    When you are put in this situation (which is common between previous *nix vendors) you either 1) embrace a new business method (IBM/Sun/Novell) or 2) sue who trampled your market (SGI/SCO).
  • by jonwil ( 467024 ) on Wednesday October 25, 2006 @09:46AM (#16576944)
    I am sure that if NVIDIA and ATI were to open their drivers or specs, it would make it much easier for companies with patents to go after them.
  • by swthomas55 ( 904301 ) on Wednesday October 25, 2006 @09:57AM (#16577146)
    Alexander Graham Bell was 4 hours ahead of a rival inventor filing the patent on his telephone. Being first is all, in this race. (From Wikipedia: Bell then secured his own patent in 1876, just hours before Elisha Gray visited the patent office for his own work on the telephone.)

    The Wikipedia article also tells the story of Antonio Meucci, who apparently invented the telephone several years earlier but was too poor to take out a patent. Seems things really weren't all that different 130 years ago.
  • by Niddix ( 544323 ) on Wednesday October 25, 2006 @10:02AM (#16577228)
    The difference is this.

    Alexander Graham Bell didn't sit there and watch Elisha Gray build a sucessful business selling his 'rogue' telephones. Then wait till he was tired of being a broke inventor then sue him.
  • Edison's patent on the incandescent light bulb was ruled invalid.

    You are highly confused. The incandescent light bulb was one of the few patents of Edison's that was not overturned [ezinearticles.com]. In fact, Edison strengthed his case by buying off previous patents for similar work, making sure that there was an unbroken chain of Intellectual Property. So when Sawyer and Man attempted to challenge Edison's patent, they had to do so on addendums they added to their own patent application. The Supreme Court found that Sawyer and Man's claims were too broad, and that their addendum was an afterthought rather than core to their invention. Thus Edison's patent was upheld as valid.
  • by swthomas55 ( 904301 ) on Wednesday October 25, 2006 @10:23AM (#16577576)
    So you're saying that since SGI didn't sue ATI years ago, they should just roll over and let their patent rights evaporate? If my neighbor has been letting his dog dump on my front lawn for years, does that mean that I lose my right to ask him to pick it up or take the dog elsewhere? I don't think so.
  • by jmorris42 ( 1458 ) * <{jmorris} {at} {beau.org}> on Wednesday October 25, 2006 @10:55AM (#16578130)
    I think we can now see the first salvo of the Patent Wars we have all feared were coming. It seems every dying company decides that they need to 'monitize their patent portfolio.' as soon as the customers disappear. And SGI will be horrible in their death throes. Thankfully most of Xerox was bought instead of us all having to suffer through their death spasms because they had even more patents to abuse when they were dying, although by now many of the most dangerous ones are probably expired.

    But this is still unfocused thrashing. Wait until they, like SCO, sucumb to the temptations of the monopolist in Redmond to focus their attack.

    The patent system doesn't need reform, it needs to be scraped and rethought. I'd say cap em at 1000 per year. With a number that low only real inventions would make it through and the number in any particular industry would be small enough anyone in that industry could be expected to be aware of them.
  • by daeg ( 828071 ) on Wednesday October 25, 2006 @11:15AM (#16578448)
    By not enforcing the patents earlier, yes, SGI should forfeit their right to pursue violators in the legal system. You can't just sit back and wait for a company to turn profitable and be on the verge of a $4.2B takeover before suing them.

    "Hey! They have money now! GET THEM!"
  • by modecx ( 130548 ) on Wednesday October 25, 2006 @12:34PM (#16580014)
    Being a lawyer and working with patents all day let me just state that the title of a patent often doesn't spell out what the inventive step is. It's just a general topic and area, and in a crowded area sometimes the titles are pretty generic

    Point taken, the patent titles often don't accurately describe something, if indeed they actually try to describe anything at all. We should probably thank you lawyers for that.

    A floating point rasterization and frame buffer in a computer system graphics program. The rasterization, fog, lighting, texturing, blending, and antialiasing processes operate on floating point values. In one embodiment, a 16-bit floating point format consisting of one sign bit, ten mantissa bits, and five exponent bits (s10e5), is used to optimize the range and precision afforded by the 16 available bits of information. In other embodiments, the floating point format can be defined in the manner preferred in order to achieve a desired range and precision of the data stored in the frame buffer. The final floating point values corresponding to pixel attributes are stored in a frame buffer and eventually read and drawn for display. The graphics program can operate directly on the data in the frame buffer without losing any of the desired range and precision of the data.


    I'm not a professional engineer of 3D stuffs, or even more than a novice programmer, but it seems fairly obvious that floating point rasterization of fog, lighting, texturing, blending and antialiasing is no less than the obvious way to do it... Defining the size of your floating point operators to optimize the precision you need dosen't sound particularly non-obvious, either. I like SGI, but it really sounds like this is a bogus patent.

    The one part that might echo of some innovative thing is the last scentance: The graphics program can operate directly on the data in the frame buffer without losing any of the desired range and precision of the data. But I'd wager that people in the demo scene have been doing that for a long time.
  • by udippel ( 562132 ) on Wednesday October 25, 2006 @01:16PM (#16580880)
    Not even in the old system. There is an International Class for Patents on Perpetuum Mobile.
    Which surely would have never worked in front of the officer ... .

    The whole patent system has gone down the drain. Worldwide and not only the USPTO. WIPO is a bunch of industrial puppets these days, and the - then - great EPO has become a patent printing mill as well.

    And, yes, I have spent more than 6 years of my life as patent examiner, in case you thought I was just a troll.
  • by tjkslashdot ( 809901 ) on Wednesday October 25, 2006 @01:42PM (#16581336)
    Between 1998 and now, SGI has had to rent space out to Google to stay afloat [bizjournals.com], has been delisted [sgi.com], gone through at least three [com.com] separate [com.com] downsizings [com.com] (including several executive changes), and has filed for bankruptcy [sgi.com]. The point is, SGI has tried the "sue to keep afloat" pattern before, and it didn't work then. I doubt very much it'll work now. SGI produces fast Linux boxes, for sure, but it competes in a very hard market.
  • Probably inevitable (Score:4, Interesting)

    by JakiChan ( 141719 ) on Wednesday October 25, 2006 @01:54PM (#16581558)
    ATI and nVidia are chock full of ex-SGI employees. For example, a good chunk of my friends from the MIPS division are at ATI. There's also the story of how they got rid of the desktop graphics division. The story goes that the entire team was pulled into the cafe. As they walked in their badges were taken. They were then told that some would be going to nVidia and some would be going home. So there is probably a whole bunch of SGI guys at nVidia as well. I wouldn't be surprised if some SGI-patented ideas leaked in....
  • by jmorris42 ( 1458 ) * <{jmorris} {at} {beau.org}> on Wednesday October 25, 2006 @04:04PM (#16583688)
    > A cap won't work. They will simply file the extra patents using a shell company.

    You misunderstand. I didn't mean a 1000 limit per entity. I meant 1000 per year, total. As in patent numbers could be reworked as (SOMEPREFIX)YYYYNNN. Really, when you think of 'invention' you think of real inventions, the stuff that is clever enough to warrant a government monopoly, most people do not envision the crap that gets issued nowadays. I'm saying restrict em to the big ones that nobody would dispute. The light bulb, vulcanized rubber, major new drugs, etc. There isn't 1000 per year of those, so my solution would still allow hundreds of bogus patents to be issued, but would reduce the problem to managable proportions.

    If one wanted to REALLY cut em down require them to issue from Congress as individually passed bills with a stipulation that they always be by roll call vote. Would probably require an Amendment, but it would put some accountability into the system, slow the process to a crawl and generally gum up the works. Downside is that it would hopelessly politicize the process.

    So leave the patent office and their examiners in the loop, just force a cap on em. And here is another idea I just had. Change the submission fee schedule to prevent the flood of dodgy apps. Require a $100,000 (cash or bond) to submit an application. If the idea really is patent worthy return the money minus some small administrative fee, otherwise keep the whole wad as a disincentive to wasting the examiners time.
  • by flaming-opus ( 8186 ) on Wednesday October 25, 2006 @04:28PM (#16584046)
    You know, as much as we feel good bashing the patent troll, the patent process is really built to protect the little guy from the market Gorillas. Lets say I come up with a really clever design for a widget that is really clever and useful. Because I don't have a supply chain, or much manufacturing capacity, it costs me a thousand bucks a unit to manufacture. Then General Amalgamated Industries sees I'm selling them as fast as I can make them, copies the design, and can build them for a hundred bucks, undercutting me and putting me out of business. The idea of a patent, is that the little guy, if he comes up with something that really is a unique invention, has a short period of years to sell the product, without competing with unlicensed knock-offs. It's really a very progressive idea.

    The real challenge with patent law in the IT industry is that the patent laws were written when the pace of invention, and of the market were slower. 15 years without competition is a very, very long time in the computer world. Much moreso than competing designs of steam engine.

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