Does Twitter Have a Patent Problem?

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Oct. 18 (Bloomberg) –- Bloomberg Contributing Editor Paul Kedrosky discusses Twitter's patent strategy with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Could this make twitter a big target for litigation and so- called tact and -- so-called patent trolls?

We bring in paul kedrosky.

Is this smart or ignorant of twitter?

[laughter] do i have another option?

[laughter] you have to pick one of those two, paul.

I will get back to you.

It is smart in the sense that this is the way the industries go.

Having these hold ups coming in and writing on their horses and saying to do this and this or i will attack you and bring the house down, we have this whole patent troll business, but that does not mean it is over yet.

The problem for twitter is that the short run is probably what matters to investors.

There are going to be people who have deep pockets and it will show up and say you guys have raised a significant amount of money.

The donato patents to swap or straddle.

Let's go after cash.

-- let's go after patents to swap or straddle.

Let's go after cash.

How did they defend themselves?

They do not have anything to fight back on.

No, they don't. i was arguing earlier today that it is a lovely sentiment, this idea that these -- there are are very important and let's just drop our weapons and look, i have dropped my weapons.

Bill punch them in the eye to see what happens.

It will not drop their weapons to be nice.

They will get punched in the eye.

The result would be lawsuits.

Twitter wants to avoid the nuisance of a jury trial.

You'll see a bunch of this stuff start showing up.

Over time, they will a choir more patents.

-- acquire more patents.

Some are loosely attached to twitter from prior acquisitions.

No, it will be messy.

You know, there are you -- the argument is that patents interferes with innovation.

But if facebook has 700+ patents -- how can they not lose?

It is hard to.

The way that the patent game gets played is two different levels.

They just want cash.

They do not want to swap that is our licenses.

There you're going to have to fight or pay.

When you deal let people like google and facebook, google has something like a thousand patents, what will have to happen is normally you would swap and -- you can swap.

It is like you are in the playground and swapping hockey cards.

I have got to hockey cards and you have hundreds and you want to swap for those two, you have to offer something else.

It makes it a costly proposition.

Rather than smart or ignorant, what about naiàve?

Is this naiàve?

Yeah.

It is fairly naiàve.

That is closer to the position i would take.

It is lovely and probably represents where the markets are going and they probably had other things to do than to get patents, but as a result, they will face litigation.

What are the chances that they actually get sued?

Would you say this is 100%? [laughter] it is whoever has the deepest pockets.

How can you not?

Unfortunately, that is the way the market works right now, especially when it comes to non- practicing entities and patent trolls.

They will look at that money and

This text has been automatically generated. It may not be 100% accurate.

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