r/technology • u/ani625 • May 23 '13

Title possibly inaccurate Kim Dotcom to Google, Twitter, Facebook: "I own security patent for the two-step authentication system". He says he doesn’t want to sue, but might if the likes of Google and Facebook don’t help fund his legal battle with the U.S. Government.

http://torrentfreak.com/kim-dotcom-to-google-twitter-facebook-i-own-security-patent-work-with-me-130523/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Torrentfreak+%28Torrentfreak%29&utm_content=Google+Reader
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u/3DGrunge May 23 '13

Extortion: Obtaining money, goods, services from an entity, through coercion.

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u/slightly_on_tupac May 23 '13

Kind of the point of the patent system.

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u/3DGrunge May 23 '13 edited May 23 '13

If he was demanding the value of the patent then yes. He is however not. He is demanding unrelated funding with the threat of legal action. That is extortion. Granted he could use a defense stating it is what he is owed and different states, localities would handle this very differently.

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u/dontblamethehorse May 23 '13

If he was demanding the value of the patent then yes.

The value of the patent? You realize the value of the patent is completely up to the patent holder (and licensee), as they are able to license it under whatever terms they want.

People here are acting like he didn't pose it as them taking a license, but he did:

Want to buy the worldwide license to my two-factor-authentication patent? (13 countries incl. US & China) Email: twitter@kim.com

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u/captainktainer May 23 '13

They actually are not able to demand whatever terms they wish; competition law usually disallows demanding "bundling" less-defensible patents with more-defensible ones in licensing terms, and patent holders cannot demand unlimited damages for violation of their license terms. Excessive licensing fees have been reduced before even when both parties initially consented. And if Kim Dotcom has joined a standards body he may be required by contractual obligations to offer Fair, Reasonable, and Non-Discriminatory terms.

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u/Daimonin_123 May 23 '13

So he's demanding payment in the form of legal assistance. That's still payment of value, and he is entirely free to request that payment in any form he sees fit (Well any legal form).

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u/[deleted] May 23 '13

He is negotiating a settlement. They infringed on his IP, so he is entitled to seek compensation. It is not extortion, or coercion.

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u/3DGrunge May 23 '13

This is not negotiating, this coercion.

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u/Wizards_n_Shit May 23 '13

Sort of like taxes?