How F**KED Over By Your Own Representatives Do you Need To Get Before You Get Upset?
Let’s count the ways (these are things that actually happened!)…
By Eric Shawn
“They stole all my stuff and used taxpayer money to do it,” John Hnatio, a Maryland small business owner, says of the U.S. government.
Hnatio claims the government has put his company, FoodquestTQ, nearly out of business by stealing his firm’s software that was designed to be licensed to the Food and Drug Administration to monitor food safety.
The FDA “took our ideas, plagiarized my doctoral dissertation on which a patent was based, and then they infringed on our patent. The result was that it decimated our business,” he adds.
Hnatio says his company has been left hanging by a thread. He has had to fire employees and says that the remaining three, including himself, are receiving no salary and have been forced to go on unemployment insurance.
“I have never seen anything like it,” says Hnatio, who is a retired federal government official.
He says the FDA “duplicated exactly what we were selling to industry and they were giving it away for free…instead of helping small business commercialize their product, what we are seeing is a dragon, in the name of the U.S. government that is eating their own young.”
FoodquestTQ is only one of numerous small businesses that accuse the government of stealing their intellectual property or trade secrets when they enter into contracts or research agreements with federal agencies.
“The government interceded, stole the technology and attempted to use this in classified programs,” says Jim O’Keefe, the president of the small New Jersey technology company Demodulation. He has filed a $50 million lawsuit against the U.S. government, accusing it of taking his firm’s research.
Demodulation developed an advanced technology involving fiber coated wire, called microwire, which is thinner than a human hair. The company says its microwire can be used for a variety of national security applications, such as tracking drones, keeping tabs on soldiers on battlefields, transmitting information without a power source, and that it even has the ability “to render objects invisible to radar.”
“It sounds incredible and impossible that the U.S. government is taking things from people,” says Demodulation lawyer Sean Callagy. “We believe this is the greatest country in the world with the greatest justice system in the world but the U.S. government is not an eagle or a flag, but human beings. And human beings make mistakes.”
The lawsuit accuses the Department of Energy and the National Nuclear Security Administration, among others, of illegally swiping the firm’s information by “using microwire and Demodulation’s trade secrets in its mission to gather intelligence.”
It also says that the U.S. has even built “a secure facility for the production of microwire” on its own.
“There are classified reports showing the technology,” declares Demodulation attorney Ben Light, who says that after the company “shared the secret sauce” about microwire with federal officials, they simply “took (the) wire.”
The Department of Energy referred Fox News’ requests for comment to the National Nuclear Security Administration, which did not respond to repeated requests for a comment about the company’s allegations.
The Department of Justice denies Demodulation’s charges in court filings.
Stuart Delery, an Acting Assistant Attorney General, wrote that while “the United States admits that it continues to conduct research regarding what is generally known as ‘microwire,” he says that the government did not act improperly.
The Department of Justice claims the government did not take any proprietary information or develop the microwire technology based on Demodulation’s work, and that “none of the asserted patents have been infringed on by the United States.”
Delery also pointed out that some of Demodulation’s patents had expired.
“The only reason the patents expired is because Demodulation was driven out of business,” responds the firm’s lawyer, Light. “It doesn’t affect the entire case because any infringement during the period when the patents were enforced is still compensable.”
O’Keefe says the government denials are “an impossibility based on the evidence I have.”
He is calling for “reform and legislation to protect us. I hope through our litigation we will be able to expose some of the problems.”
It turns out that the government is routinely accused of similar wrongdoing and sometimes has to pony up.
The U.S. Army settled a case in November by paying $50 million to a Texas company, Apptricity, which claimed the government took some of its software, which tracks military equipment from MRE’s to troops, without paying for it.
The company’s court papers said that the government “willfully infringed” on its copyrights, “failed to provide information” about what it did and was engaged in “actively concealing the Army’s misappropriation of Apptricity software.”
The complaint said the Army paid for using the software on five servers and 150 devices, but actually “copied and installed Apptricity software on at least 98 servers and at least 9,063 devices” without telling the company.
“I don’t think there was malicious intent,” Apptricity’s founder and president Tim Garcia tells Fox News in the aftermath of the settlement. He says his company pursued its case by the “standard process through the Court of Claims.”
There are numerous other companies that have filed similar actions at the Washington, D.C.-based court, which is the venue for legal claims against the federal government. Among them:
Liberty Ammunition, which is suing the government for allegedly infringing on its copyright for developing a lead-free “green bullet” after it worked on the invention with the Department of Defense.
Net Results, which claims that the Army infringed on its patent for a “mine detecting device” by giving out its design to six other government contractors.
In 2009, NASA was ordered to pay $28.3 million to Boeing after the court found that the government infringed on the company’s aluminum alloy patent.
In a noted case in 1999, the U.S. government paid then Hughes Electronics $154 million in damages after a 30- year long legal battle found that the government illegally appropriated the company’s satellite technology.
The U.S. Court of Federal Claims calls itself “the people’s court,” and says it is considered “the keeper of the nation’s conscience.” It is situated right across Lafayette Park from the White House.
“There is no reason to think it can’t happen,” observes New York University law Professor Jeanne Fromer, an intellectual property and copyright law specialist.
“The government can take patent rights, as long as they compensate for it. It is not dissimilar, in that sense, to notions of eminent domain.”
“The government is a big sprawling place and there are lots of people acting in it. I think some of them act very nobly…but it’s hard to say that everyone always does.”
“We are hearing more frequently from companies about intellectual property theft by the government,” notes John Palatiello, head of the Washington, D.C.- area lobbying group, the Business Coalition for Fair Competition, which is studying the issue.
“Companies are becoming more vocal about it.”
Hnatio believes there is a troubling explanation for alleged government flinching.
“What we are seeing is a direct competition between the private sector and the U.S. government. The problem for small businesses is that they are simply being destroyed by their own government in spite of the fact that we hear politicians say all the time, that small business is important…it’s extremely disturbing because it means we lose jobs, and it means we lose our competitive edge in the world. It creates a very dangerous situation for our national security.”
Fox News repeatedly requested comment from the FDA regarding Hnatio’s allegations about FoodquestTQ, but the agency did not issue a statement.
While the Demodulation case is expected to go to trial next year, Hnatio says he has been left without any money to hire a lawyer to go to court.
“From the time I was a little kid I dreamed of starting a business. But I do have to tell you that there is a grave danger to the American dream,” he says.
Follow Eric Shawn on Twitter: @EricShawnonFox
Becky Diamond contributed to this report.
Then there’s this>>>
- Fisker’s. Massive number of lawsuits. Much more…
- Fisker Files For Bankruptcy. Owes $1 Billion.
- Tesla SAFETY REPORT (HOT!)
- “Lithium Ion VC’s“: Say “Howdy” to the ACTUAL Illuminati!
- SENATE ETHICS COMMITTEE CALLS: “Cover-up!”
- How the Government Grant Process Can Stifle Innovation and How To Fix It!
- Jofi Joseph alias exposes Gawker Media as front for White House communications Director hits
- New study links Paul Walker crash to Tesla fires
- Model S hacked to broadcast occupants conversations to all nearby cars
- The Dianne Feinstein Investigation – Tesla’s Girlfriend
- Did White House order “no more DOE Loans to be funded” in order to protect campaign financiers other investments?
Bankrupt solar panel firm took DOE stimulus money, left a toxic mess, says report. No Not Solyndra, another one
- U.S. reports $9.7 billion loss on General Motors car bailout
- Spying Controversy Blowback, The Rebekah Brooks Trial and Dianne Feinstein
- Does the President’s Staff Just Sit Around and Lie To Him All Day Long?
- Prostitutes!!! Lot’s of them! Washington DC has more hookers/mile than anywhere.
- Omerta’: The policy of secrets
- How the White House shut down NASA to payback Musk & his VC’s
- Bundlers have Sad, Sad Realization: Secrets are not secrets anymore
- White House staff order DOE protection “at all costs” to protect image
- TESLA cars bursting into flames as batteries turn them into potential “DEATHCAR” of lithium explosive & deadly vapors, as predicted: COVER UP.
- LITHIUM ION industrial website sounds call over hidden dangers of lithium ion
- Exclusive: Obama Department of Energy Loan Application [Biff Spackle]
- Newly discovered documents show Tesla failed all reviews and was only funded because White House staff ordered DOE to fund in order to compensate Tesla investors for campaign contributions.
- DOE misdeeds screw up new DOE staff beyond belief.
- The Deloitte/Tesla Connection:
- App Authentication Flaw Creates Tesla Motors Hack Concern. Your Tesla can spy on you and drive you off the road on command.
- No attempt by new Secretary Moniz to correct the evils of the past
- CONNECTING THE DOTS AND “INCENTIVES”: FOLLOW THE MONEY
- DOE staff offer to respond to you, in writing, regarding each item on this news site
- For Sale: Deadbeat Fisker electric-car loan; Taxpayer Loss to date $139M+
- BREAKING NEWS: GOOGLE and DOE Follow-up SHOCKERS:
- Google Kickbacks
- Corruption Mapping –
- U.S. Senator: money came from “one of the most disastrously mismanaged and corrupt programs in U.S. history,”
- Energy Department Staff find that the tracks they thought they covered up were actually NOT covered up… Oops!
- Understanding Life Threatening Battery Decisions
- The Drop! HUGE NEWS BREAKING EVERY MONTH ON THIS- KEEP WATCHING
- Shallow Analysis Deems DOE Electric Vehicle Loans a Success
- Senator Charles Schumer, Consumers Union and other groups call for investigation of exploding lithium ion batteries. Same batteries as used in Tesla and Fisker.
- “Battery Swap” a smoke-screen to get rid of exploding battery pack
- GLUT OF DOE Corruption sites and reports yet no arrests: COVERUP
- BOMBSHELL NEWS: Treasury and OMB letters and documents reveal Tesla VC’s got “UNJUST REWARDS”
- Sudden new funding raise but there are lies about what it is for:
- Auto industry revenge strikes reduces value of each car by $30,000.00
- Financial advisors: Deloitte charged in Money Laundering Scheme
- Vaginal Orifice used to trick abusive rich guys into buying cars!
- Tesla “Battery” doesn’t work..
- Tesla snoops on you worse than the spy guys. Tesla cars watch and listen to you.
- EXPOSE!: Massive # of failed due diligence metrics discovered in investigations
- Forbes Rips Musk’s smoke-screen
- 9 questions for Elon Musk; Reporters embrace the “jump Musk” tactic to expose him
- Friend of staffer killed in plane crash releases insider notes
- “It’s the Real Estate, Stupid”: Are corrupt real estate deals behind Solyndra and Fisker?
- BARRON’S OUTS TESLA IN SCATHING TRUTH EXPOSE: “driving over a cliff..”
- Did California and Michigan state officials give favors only to favored campaign funding companies
- bit.ly/NXeOLG Mention this link to this newspaper and win stuff2013/06/10
- Steven Chu Reaches for the ‘Master Switch’2013/06/10
- SUCKING TOO MUCH ENERGY. The VAMPIRE Crisis!
- Chu: Expect more green energy bankruptcies2013/06/10
- Steven Chu lives in Fantasy World. Publicly states the kickback scheme that got him his Stanford job as part of his payoff was not failed2013/06/10
- ‘PLUG-IN AMERICA” is a shill organization funded by Silicon Valley VC’s and their battery companies2013/06/10
- Cornell University Says these Batteries Are Failed in Technology and Plans2013/06/10
- Taxpayers’ loss on GM bailout looks to be about $10 billion2013/06/07
- Credits fueled book-cooking?2013/06/07
- Additional criminal evidence found to be posted at: http://atvmdoe.wordpress.com/2013/06/06
- Nissan Whistleblower facing constant intimidation and attacks.2013/06/05
- Solyndra, Fisker, Tesla and Abound were criminal operations. You are not supporting “Clean Energy” by buying their products. You are supporting corruption.2013/06/05
- The problem with Elon Musk’s Women2013/06/04
- The Dark Side Of The Masterful Short Squeeze2013/06/04
- CHALLENGED TO EXPLAIN FRAUD:2013/05/30
- Beware! bubble just waiting to burst2013/05/30
- Stock Analysts See Exploding Battery Problem as Fatal2013/05/27
- Even FORBES admits Tesla is a Scam!2013/05/27
- Tesla Owner Buyers List being sold to third parties. No privacy for Tesla Owners!2013/05/23
- Did Tesla really pay back their loan? NOT ACTUALLY.. Taxpayers are STILL paying for it2013/05/23
- WE WON!! Tesla rushes to pay back U.S. Loan to Try to Halt Investigations caused by this paper and others!2013/05/21
- WHO ARE THE TESLA MEDIA SHILLS?: BUSTED!!! Opposition News Hype-mongers Reveal Themselves.2013/05/21
- How big a failure was Steven Chu’s DOE car Program?2013/05/19
- The non-special-ness 2013/05/19
- Tom’s theory..More evidence emerging…2013/05/18
- Google charged with “steering” Tesla articles to favored searches2013/05/16
- Adding up the Lies:2013/05/16
- Breaks Automotive History Record for Wasted Money, It’s Official2013/05/16
- They Lied About Profits: Business Insider2013/05/16
- You are supporting, and involved in, ORGANIZED CRIME.2013/05/10
- How to Buy a Fake Consumer Reports Positive Rating2013/05/09
- The Chart2013/05/09
- CFO refuses to disclose information in its May reporting, cracks appear…CHALLENGE2013/05/09
- Another day, another corruption failure… VPG2013/05/08
- Running the Scam2013/05/08
- How DOE staff and Public Policy Staff in Washington Were Bribed:2013/05/08
- Investigations deepen on payoffs, influence buying, favors and exchanges2013/05/07
- Hanging By A Thread2013/05/04
- How VC backers killed the new American auto industry on purpose.2013/05/02
- Detroit Electric 2013/05/01
- BRIBERY and CORRUPTION revealed to have launched and maintained some car companies.2013/05/01
- ADDITIONAL criminal evidence emerges 2013/04/30
- BREAKING NEWS: Federal Criminal Prosecutors charge Tesla, Subpeonas received by Tesla2013/04/30
- Elon Musk shamed by Audi Commercial2013/04/29
- Internal evidence shows they admit their batteries could “fry your family”!2013/04/29
- Overwhelming disdain of market corruption by billionaires follows Fisker hearing.2013/04/29
- Fun with “Wild Conjecture”!2013/04/27
- Obama Subsidized Electric Car Company Tesla Investigated for Fires
- Is Elon Musk a SOCIOPATH? Pundits weigh in
- Stock Analysts foretell Doom.2013/04/27
- Outing SHILL REPORTERS who are compensated for rigged stories 2013/04/26
- How the Cover-Ups Work:2013/04/25
- Deja Vu- WATCH2013/04/24
- FISKER SCREWS THE POOCH- …2013/04/24
- Senate Hearing Implies Organized Crime Tactics Used By DOE “Loan” “Winners”.2013/04/24
- U.S. Senate Nails Them2013/04/24
- Tesla Workers Frustrated With Tesla poor Ethics & Unsafe Factory 2013/04/23
- Selling cars? “No Way”, says Industry Expert2013/04/23
- Massive WHO-PAID-WHO tracking investigation underway2013/04/23
- Immigration Cover-up?2013/04/23
- Justine Musk On DIVORCE WARS reveals the Dirty On Elon Musk2013/04/23
- Immigration ISSUES: Still looking for Non-American Workers After TAKING U.S. Taxpayer money for a billionaire!2013/04/23
- Reddit Roasts 2013/04/23
- Faking Orders2013/04/23
- Iron Man Terminated2013/04/23
- http://lithium-ion.weebly.com exposes Fisker & Tesla Danger2013/04/23
- TESLA BUMPER STICKER2013/04/23
- TRUTH TICKET GREEN STREETERS CAMPAIGN2013/04/23
- BIG TROUBLE 2013/04/23
- Panasonic engineers GUARANTEE that battery packs will explode when wet!!!!!2012/11/01
- Caught in LIES2012/10/31
- Half of Tesla Roadsters Recalled For Rear Chassis Problems2012/10/31
- Tesla Needs Mo’ Money, Has Mo’ Problems – Automotive News2012/10/31
- Tesla hurts the environment. Tesla not telling truth about battery.
- Did Elon Musk Mislead Fox About Problems At Tesla?2012/10/31
- What Do the Financial Problems of CEO Mean For the Company2012/10/31
- The understatement: Five Problems For Tesla Motors2012/10/31
- Roadster facing ‘brick’ battery problems from bad engineering?2012/10/31
- Devastating Design Problem2012/10/31
- Tesla sued AGAIN. Fast approaching lawsuit record2012/10/31
- BLOG featured in http://atvmdoe.wordpress.com WIKI2012/10/31
- Cars could explode in flames if they get wet.2012/10/31
- Detroit Free Press busts BIG LIE!2012/09/26
- More issues are reported 2012/09/26
- “But we are just a startup car company, don’t expect us to sell anything”…except it is not what he said in his DOE application 2012/09/22
- Elon- not so nice?2012/09/21
- How many cities are claiming Tesla defrauded them?2012/07/31
- VC Kleiner Perkins being sued for sex allegations, more coming…2012/07/29
- Russian Mobsters?2012/07/29
- How did the investors bribe Congress and Federal Agencies2012/07/29
- Original Tesla Founders blog about the conspiracy that stole their company in order to turn it into a tax dollar scam2012/07/29
- Silicon Valley Expose on Elon Musk2012/07/29
- How to FACT CHECK and VALIDATE EVERY data point on this site yourself2012/07/27
- One of the worst investments in the tech market2012/07/27
- One of many ads to help hire foreigners with YOUR tax money :2012/07/18
- What are the things the media has said that this company screwed up?
- Topic 2: Lobbying
- Topic 3: Term Limits
- Topic 4: Campaign Funding
- Topic 5: Education
- Topic 6: Revolving Doors
- Topic 7: Do-It-Yourself Sunshine Research
- Topic 8: Corporate Control of Policy Law
- Topic 9: Veterans
- Topic 10: Banking
- Topic 11: KickBack Process
- Topic 12: Dark Money
- Topic 13: Industry Shills – Pundits or Secret Salesmen?
- Topic 14: Targeting Activists
- Topic 15: Who Hacks You? Personal Information Security
What is a more palatable term for “They BLANKED us in the BLANK?”
They “improperly penetrated our nether regions”?