Assuming this goes through with no successful appeal Google will have to pay 1.36% of their revenue related to a particular infringing product to Vringo for a period for which they were well aware of this patent until it expires in 2016. This example gives nothing to indicate that any business you start will be crippled by patent issues.
Now legal costs and/or Lodsys like trolls might be a real threat to a fledgling business but they seem to have gone quite quiet for the moment.
It's no indication, but it would generate fear and doubt when I code. What if the code I'm writing right now is patented by some company taking advantage of a system, with resources searching everywhere just to sue? I probably wouldn't, but I could become paranoiac because of this, looking on the internet to find if I am infringing patents, instead of being productive.
It's true 1.36% seems like nothing, but for a small company, it could mean a lot. Plus, it would be heart-breaking (or even outraging) to know that a program I made on my own, with no knowledge about some software patent, nor ill intention, gives money to someone that has nothing to do with it.
And, as you mention, legal costs, time wasted and stress could easily be real threats to a startup.
I really wouldn't let it worry you, there are many more things likely to make you fail than patents unless you are going into an especially patent heavy field (such as video codecs).
Patent holders generally need to target big players to get worthwhile payoffs so unless you are big (in which case you have already won) then it is only the Lodsys type scum you need to worry about trying to extort you (in which case your paranoia and research won't have helped because the accusation doesn't have to be valid to cause you problems). Lodsys and their ilk seem to have gone quiet (I don't know why) but I suspect that if you don't look like an easy target they may ignore you.
You also fear your emotions, try to look logically at the situation. Making $1M and having to pay out $13K to someone you feel is unworthy is annoying not heartbreaking. Making much less and you are hardly worth targeting.
I'm not saying that you have to like the current situation but that it isn't bad enough that it should be a major driver of your life. There are many reasons not to do a startup but I wouldn't let this be one if I were you.
> Patent holders generally need to target big players to get worthwhile payoffs so unless you are big (in which case you have already won) then it is only the Lodsys type scum you need to worry about trying to extort you
Uh, yeah, exactly. I don't know what you think Lodsys is that's not a "patent holder", but that's exactly what they are, and they're a great example of patent trolls going after small businesses. This happens all the time.
In this whole thread you've also ignored the fact that this is 1.36% of revenue for one small aspect of a product. Now consider the fact that your product is also highlighting certain parts of data returned from a database, or you have a a certain type of UI interaction when you scroll past the bottom of a widget, etc etc etc and you have a whole lot of companies ready to claim their 1.36%.
I don't know if it's enough that it should stop people from wanting to start at all, but it is a very real problem that is very much affecting real people. For instance:
Fair points although I didn't say Lodsys wasn't a patent holder ('generally' meant 'mostly' not 'universally') I think you overstate the density of patents in general software (at least of valid ones without prior art).
I agree expense of the US legal system that makes settling vexatious (Lodsys etc.) suits financially attractive is a real problem.
The 1.36% of revenue is for an aspect of the product that Google were not happy to remove or change sufficiently following a loss in court and includes an increase for willfulness. If I understand correctly it includes the key revenue maximisation process. It is not just for a minor UI feature and that is presumably why Google didn't just work round it. Yes the stacking of percentage royalties could be a real problem but that would mostly happen on standards if FRAND wasn't enforced and everyone stayed outside patent pools and claimed 2.4% of final retail price (Motorola/Google).
Regarding your article that does sound troubling although a large part of the problem seems to have been a dependence on winning some big deals. I do suspect that speech recognition is one of the patent heavy areas along with codecs as I mentioned, probably autonomous cars, audio and video tagging, watermarking and recognition. In these areas I would definitely want to be careful and perhaps apply for patents before proceeding too far (this would both mean patent searches were conducted and give something to defend attacks with). Alternatively I would be studying the literature and material that was 20 years old and documenting the process of obvious steps when combing approaches. Most software is not in these patent thick areas.
A proper list of dangerous areas for patents would be really quite useful...maybe an Ask HN topic?
Now legal costs and/or Lodsys like trolls might be a real threat to a fledgling business but they seem to have gone quite quiet for the moment.