Paul Allen Sues Google, Yahoo, Facebook, Apple, EBay, AOL, YouTube, Netflix, Office Depot, OfficeMax and Staples

Billionaire Microsoft co-founder Paul Allen is suing internet companies Google, Yahoo, Facebook, Apple, eBay, AOL, YouTube, Netflix, Office Depot, OfficeMax and Staples.

Allen's case is that the web-based companies have all used internet technology developed by his company Interval Licensing, thus infringing his patents. Four patents are involved: 6,034,652, 6,788,314, 6,757,682 and 6,263,507. They relate to web browsers that search and retrieve text and audiovisual data and enable online commerce.

Interval Licensing was founded by Paul Allen and David Liddle in 1992.

Part of the case against the online companies argues:

"AOL, Apple, eBay, Google, Netflix, Office Depot, OfficeMax, Staples, Yahoo, and YouTube's acts of infringement have caused damage to Interval, and Interval is entitled to recover from Defendants the damages sustained by Interval as a result of Defendants' wrongful acts in an amount subject to proof at trial."

Naming Google founders Larry Page and Sergey Brin in particular, the case is also made that:

"Interval served as an outside collaborator to and provided research funding for Sergey Brin and Lawrence Page's research that resulted in Google. Indeed, a Google screenshot dated September 27, 1998 entitled "About Google!" identifies Interval Research in the "Credits" section as one of two "Outside Collaborators" and one of four sources of "Research Funding" for Google."

David Postman, a press spokesman for Paul Allen, said that the lawsuit was "necessary to protect our investment in innovation."

On the other side of the courtroom, the companies being sued are likely to reject the arguments of Paul Allen's highly paid lawyers. Facebook spokesman Andrew Noyes said immediately: "We believe this suit is completely without merit and we will fight it vigorously."

The court case will no doubt play out in an expensive, lengthy drama. As it begins though, one has to wonder What on earth is motivating Paul Allen?

Here is one of the wealthiest men in the world - in about 35th place - currently said to have 13.5 billion dollars, diagnosed with cancer for the second time at the end of 2009. As he surveys his vast wealth and undergoes treatment for Non-Hodgkin lymphoma wouldn't you think he might have other ways to spend his time rather than attacking internet companies in court?

What can he be hoping to achieve? Well, the legal argument is fairly clear that the goal is "recovering damages." In other words, a hugely wealthy, sick, aging man is chasing more money. In terms of the priorities one might imagine Allen would have right now it doesn't really make a lot of sense.

In July 2010 Allen responded positively to the highly-publicised request from former partner Bill Gates that billionaires should pledge at least half of their wealth to philanthropic causes. Allen is therefore prepared to give more than 6 billion dollars to charitable causes. Dispensing largesse is nothing new to him - he gives away tens of millions of dollars every year already to all sorts of causes from the arts to medical science.

He has plenty of interests outside managing his money too. Besides taking care of his private asset management corporation, Vulcan Inc., and his multi-billion dollar investments in real estate, technology and media and content companies, Allen owns the Seattle Seahawks (National Football League, NFL), the Portland Trail Blazers (National Basketball Association, NBA) and the Seattle Sounders (Major League Soccer.)

Although Allen's spokesman said the case was necessary to protect Allen's 'investment in innovation' it seems strange that a man who must be well aware of his mortality would choose to devote time and energy to such litigation. He certainly doesn't need the cash that 'recovering damages' may bring him. And if he substantially damages all those companies financially, there may be layoffs and families will lose their incomes.

What can the lawsuit possibly bring Paul Allen that's worth having at this point in his life? It would be interesting to know what was really going on in his head and his heart when he made the decision to instruct his lawyers.

Sources:
http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/electronics/7968981/Microsoft-co-founder-Paul-Allen-sues-Google-Apple-Facebook-eight-others-over-patents.html

http://www.zdnet.com/blog/btl/paul-allens-interval-licensing-patent-complaint-takes-aim-at-google-apple-others/38544