Thursday 3 March 2016

What is the least ethical and most immoral way to earn money that is still legal?

In the high tech world:
  1. Patent Troll.  Buy up patents from failed companies for almost nothing.  Find successful companies that have technology faintly resembling what's in your patents.  Rent a broom-closet sized office near the Federal District Court for the Eastern District of Texas.  Send infringement demand letters to dozens of companies, claiming they infringe your very valuable patent (use the same tone of righteous indignation as if you were the actual inventor or developer).  Don't include any actual claims analysis.  Sue in the Eastern District of Texas where the community benefits from having large IP judgements adjudicated locally.  Get nuisance settlements from REAL companies that have to make the morally reprehensible but practically unavoidable decision to pay a settlement that is less than the cost of litigation -- and to avoid the risk of having your patent found infringed by a jury of 12 people too dumb to get off jury duty.
  2. Domain Squatter.  Form an offshore company.  Get affiliate registrar status under the ICANN rules.  Reserve a hundred thousand names without ever having to pay any fees at all.  Hold domain names ransom to legitimate businesses and trademark owners.
I have dealt regularly with both types of predators.  The logic seems to be that "I know how to do something you don't" so I get your money.  Actually, everyone knows how to register a domain name.  Only the squatters are sufficiently amoral to think that this is a legitimate "business."  And it is fraud under ICANN rules in almost every case.  Every domain reservation and registration legally requires a bona fide intent to use the name.  Thank goodness, almost nobody pays Danegeld for URLs anymore.  Nobody types in a URL, they just click.

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