Lawsuits as business strategy?


If you have kids who are preparing to go to college, make sure you are able to convince them that being a lawyer is a very profitable profession. Especially if specialize in intellectual property and all that stuff that logical humans don’t understand and the lawyers do. The MGM-vs-Grokster decision has ensured that legal beagles in Hollywood will be gainfully employed. But if that is not enough, we have a cat-fight of sorts erupting between Broadcom and Qualcomm.

Today, Qualcomm has decided that it will countersue Broadcom describing Broadcom’s suit as meritless. Broadcom blamed Qualcomm for stifling competition for the 3G chipsets. What? I thought Ericsson and others were doing well – so Broadcom is blaming its incompetence on a rival, whose sole purpose is to make money and make its shareholders rich. How dare Qualcomm practice good capitalism! (Broadcom executives collectively stomping their feet!) Broadcom incidentally has a history of suing rivals. And so does Qualcomm. Lawyers in San Diego … happy lot. We covered LA and San Diego – so why leave San Francisco out. AMD is suing Intel.

I just wonder when and how did we go from being those who created technology to a lawsuit nation? Have lawsuits become part of business strategy?


Paul Jardine

Lawsuits have always been part of the America Business model. What other country makes you sign all kinds of legal disclaimers before taking part in some organised sporting event?!
It is also an American sickness and needs to be stamped out before it starts to really damage the economy and social fabric of the USA (and it is already far too similar in the UK!).
How much is spent on legal fees and protection from legal action in the US? What is the net benefit of all this litigious activity. The lawyers are getting rich, but is anyone else really benefitting.
It is like a lottery or gambling, people are tempted in by the big money headlines, and once they are in they keep going until the blood-sucking lawyers have taken every drop from them. If someone is awarded a million bucks, how much do they get?


that is what software patents are for: a defensive against preemiptive infringment lawsuits.

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