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[EMAIL PROTECTED]: [IP] Secrecy Power Sinks Patent Case]

2005-09-23 Thread Eugen Leitl
- Forwarded message from David Farber <[EMAIL PROTECTED]> -

From: David Farber <[EMAIL PROTECTED]>
Date: Fri, 23 Sep 2005 06:09:34 -0400
To: Ip Ip 
Subject: [IP] Secrecy Power Sinks Patent Case
X-Mailer: Apple Mail (2.734)
Reply-To: [EMAIL PROTECTED]



Begin forwarded message:

From: [EMAIL PROTECTED]
Date: September 22, 2005 9:27:32 PM EDT
To: [EMAIL PROTECTED]
Subject: Secrecy Power Sinks Patent Case



Secrecy Power Sinks Patent Case



By Kevin Poulsen

02:00 AM Sep. 20, 2005 PT

When New England inventor Philip French had his epiphany 15 years  
ago, he didn't dream it would lead to an invention that would be  
pressed into service in a top-secret government project, or spawn an  
epic court battle over the limits of executive power. He was just  
admiring a tennis ball.

The ball's seam, with its two symmetrical halves embracing each other  
in a graceful curve, intrigued him. "I thought, my god, I bet you can  
do something with that kind of shape," he recalls. He was right.  
French and two colleagues went on to design and patent a device now  
called the Crater Coupler, a simple, foolproof connector for linking  
one pipe or cable to another without nut threads or bolted flanges.

The device is interesting on its own, but the broader legal legacy of  
the invention may be more important. In a little-noticed opinion this  
month, a federal appeals court ruled against the Crater Coupler  
patent holders and upheld a sweeping interpretation of the  
controversial "state secrets privilege" -- an executive power handed  
down from the English throne under common law that lets the  
government effectively kill civil lawsuits deemed a threat to  
national security, even if the state is not a party to the suit.

The ruling is notable as a rare appellate interpretation of the state  
secrets privilege as it applies to patent holders. As such, it is a  
potentially worrying development for inventors -- particularly those  
developing weapons, surveillance and anti-terror technologies for  
government contractors -- who may find infringement claims dismissed  
without a hearing under the auspices of national security. It also  
offers a fascinating, if limited, view into the machinery of official  
secrecy at a time when the privilege is being exercised as never before.

"It's the most powerful privilege the government has," says William  
Weaver, senior adviser to the National Security Whistleblowers  
Coalition. "It's the nuclear option. It never fails."

French says he and his partners -- Charles Monty and Steven Van  
Keiren -- got the first inkling of a national security application  
for the Crater Coupler a decade ago. While shopping the new design  
around to "a whole mess of quick-disconnect companies," the trio  
received an intriguing inquiry from Lucent Technologies, the  
reincarnation of the legendary Bell Labs research center, and at that  
time still part of AT&T.

Lucent wanted to evaluate the Crater Coupler for use as a fiber-optic  
"wetmate" -- an airtight connector for two fiber-optic cables  
designed to operate underwater. It was part of a contract with a U.S.  
government agency that, the company said, would have to remain  
unnamed. "It was a secret black job, they couldn't divulge what it  
was for," says French. "Who it was for, the Navy or the CIA, or who  
knows, they never said."

A Lucent spokesman confirmed that the company had contact with French  
in 1995, but wouldn't discuss the details, citing government secrecy  
concerns.

But according to French, the inventors agreed to help Lucent try to  
adapt the Crater Coupler to the company's needs, with the expectation  
that Lucent would license the group's patent if it all worked out.  
The inventors sent over plans, sketches and a model, and French began  
consulting and advising a Lucent engineer in monthly phone calls.

After about a year of development and testing, Lucent had good news  
for the inventors: The device passed all the tests, shaming a  
competing, clunky design that French says resembled an old thermos.  
But when the inventors got on the phone with Lucent's lawyers to  
discuss license terms, the company dropped a bomb. "Almost the first  
thing they said was, 'Well, we don't have to do anything, because  
this is under some sort of provision for military secret stuff where  
we don't have to pay anything,'" says French.

French felt betrayed. "This was after a year of encouragement, with  
me helping them and them informing us of their progress," says  
French. "That was one hell of a shock."

Lucent eventually offered the inventors $100,000 for the right to  
produce 1,000 wetmate couplers. The offer caused a rift between  
French and his partners: They wanted to make a counteroffer of  
$500,000, but French -- in his 60s and recently retired -- wanted to  
take what was on the table. "I said, well, Lucent doesn't have to do  
a thing, so why don't we take $100,000 and be happy with that?"

Unabl