The legal system at its worst honestly.
I wasn't even aware Phillips still existed or made useful products. I guess they have just been sitting on their patents waiting to sue anybody who comes up with similar ideas to their own.
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Pretty much. Patents are crap these days, because they tend to hinder the progression of technology more than they help the inventors sell their products.
That's why Tesla Motors
recently released their electric car patents to the public, which was an awesome move that's going to help dozens of companies and perhaps even whole countries in the long run.