Bonum Certa Men Certa

Patents Roundup: What Bilski Means to IBM, Microsoft; Patent Trolls Still Win

Bill ski



Summary: The latest news about software patents which pose a threat to the freedom of software

AS WE POINTED out a couple of days ago, In Re Bilski goes all the way to the top, potentially to invalidate software patents in the United States. Groklaw has some very extensive text and the software patents-hostile wiki has a new page asking, "should the whole patent system be axed?"



There is clearly a lot of unrest because this bubble is waiting to explode. Reuters published a report about the Microsoft/Lucent dispute a few days ago:

Microsoft, Lucent battle in huge patent case



Microsoft Corp (MSFT.O) argued before an appeals court on Tuesday that its Outlook calendar date-picker tool did not infringe an Alcatel-Lucent (ALUA.PA) patent and asked for a $358 million jury verdict to be overturned.

The lawsuit is the last remaining after Alcatel-Lucent and Microsoft settled other patent fights in December. The case was appealed from a district court in San Diego, where a jury ruled that Microsoft did infringe and ordered it to pay $358 million, or $511 million including interest.


Microsoft too is suffering from software patents, so this is hardly sustainable even for monopolists. As stated over at BusinessWeek the other day, "Businesses come down on both sides of the issue. IBM (IBM), which has obtained a slew of business-method patents, filed an amicus brief in what is known as the Bilski case, stating that the company is now opposed to them. IBM maintains that the patents are not needed to promote innovation; businesses would come up with the products even without patent protection. "You're creating a new 20-year monopoly for no good reason," IBM's top in-house patent attorney, David Kappos, told BusinessWeek last year."

As someone points out privately, "What is curious is that IBM in Europe filed [PDF] recently an Amicus Curiae Brief to the EPO EBoA defending the approval of software patents.

"Who holds the real IBM position on the matter: IBM US or IBM Europe?"

IBM's position on software patents is definitely very troublesome [1, 2]. However, "IBM was talking about business method patents here," points out a person with knowledge in this area. "I read somewhere on the net that IBM was behind the Bilski "machine transformation" test."

Looking at BNA.com, there is mere speculation about what In Re Bilski might do to software patenting.

Bilski was up for discussion yesterday at the Supreme Court's private cert-consideration conference, so we could know as early as Monday if Judge Sotomayor will have that one facing her in the fall. I have no idea what Judge Sotomayor's views are on the patentability of software-implemented business method patents, and I don't think anyone else does either.


The pro-Microsoft Richard Waters weighs in on the subject and The Prior Art blog quotes some judges of relevance.

CHIEF JUSTICE ROBERTS: I may not be a software developer, but as I read the invention, it's displaying pictures of your wares on a computer network and, you know, picking which ones you want and buying them. I -- I might have been able to do that.

[....]

In the patent bar and at the Federal Circuit, software patents are the law of the land. But during oral arguments in the 2007 AT&T v. Microsoft case, which regarded damages for infringing copies of software distributed overseas, it became clear that the at least a few Supreme Court justices haven't made up their minds about whether software should be patentable.

During oral arguments in that case, Justice Breyer went out of his way to make it clear that despite the fact that software patents were issued widely following the Federal Circuit's 1998 State Street Bank decision, he had never gotten the opportunity to weigh in, and as far as he was concerned, it's not a settled issue:

JUSTICE BREYER: “I take it that we are operating on an assumption that software is patentable? We have never held that in this Court, have we?”

Later, Justice Stevens also asked a government lawyer point-blank whether software is patentable. The answer: "Standing alone in and of itself, no."

He likely said that because as it stands, software has to be tied to a machine to get a patent—not hard to do. But it shows that for Stevens, like Breyer, software patents are up for debate.


The nature of software patents is very troubling because to avoid an infringement (willful or not willful) is virtually impossible. Software is written very quickly, without a rigorous manufacturing process. As are result, the patent trolls and aggressors are still having a field day.

Store Payment Info In Your Online Store? Watch Out For Patent Infringement Lawsuits



[...]

As for the patents in question, they're all a variation on a "method and apparatus for conducting electronic commerce transactions using electronic tokens." The specific patents are 7,376,621, 7,249,099, 7,328,189 and 7,177,838. Reading through the claims, this seems like an incredibly typical online system for storing payment info and seeing if the person can actually pay. Since the patent system defenders among our readers get quite upset whenever I say something seems "obvious" to me, let's flip this around. Can anyone explain how these concepts were not obvious at the time of filing?


More patent trolls in the news:

Patent trolls live under the bridge



Dell, HP, Fujitsu and IBM have been hit by a lawsuit in the Eastern District of Texas Marshall Division - famously known for its ability to expedite patent (chapter 830) disputes. The article linked to points out that it is unfair to describe anyone bringing patent suits to court as "patent trolls" - they have to have a sound case and deserve their time in court. So who exactly are the trolls?


Here is another mighty innovator in the news:

Actus goes patent lawsuit crazy



[...]

The outfit clams that more than 15 companies, including Apple, Amazonmdocs, American Express, Apple, Barnes & Noble, Best Buy, Cabela's, Citigroup, Ebay, Firstview, Marketing Technology Concepts, Netspend, Officemax, US Bancorp, and Vivotech have nicked its technology.


It's clearly time to change this system or abolish parts of it. This is not working. It does not increase capacity to innovate, it just makes a welfare system for lawyers.

Comments

Recent Techrights' Posts

Televisions Have Become Billboards
Bottom line: you get what you pay for
 
Links 13/09/2026: Scam Altman Admits Issues (Financial), Rival Says Stop Slop (Plagiarism)
Links for the day
Windows Down to New Lows as Switzerland's Federal Government Abandons Microsoft (Where Feasible for Now)
That's how it starts...
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, September 12, 2026
IRC logs for Saturday, September 12, 2026
Mass Layoffs at Microsoft as "Voluntary Separation Agreement" (or PIP)
the man who kept lying about the layoffs has just left the company
The Cyber Show on Media Clickbait About Slop as 'Existential Threat' and Derek Thompson's Response to That
Ignore the hype, focus on real news
Links 12/09/2026: "Revolt Is Here" Against Slop and "Top Chinese Court" Cracks Down on Slop That's Fake/Misleading
Links for the day
Gemini Links 12/09/2026: Rants About Slop, Switching From QWERTY, and Why TVs Are 'Cheap'
Links for the day
SLAPP Censorship - Part 180 Out of 200: A Third Act, (Mis)Using Your Client's Application to the Court for Your Own Purposes as a Law Firm (Reputation Management and Censorship)
How much can a lawfare firm get away with?
Canonical Has Withdrawn Ubuntu 24.04.5 Installer Due to a Critical Bug Connected to Microsoft-Controlled Restricted Boot and TPM
already breaking systems running GNU/Linux [...] Who asked for TPM in Linux?
SLAPP Censorship - Part 179 Out of 200: Using One's Clients to Save Face at Their Expense
Who's being served really?
Switzerland's Software Freedom/Digital Sovereignty is Improving as People Move to GNU/Linux
Well done to them
Links 12/09/2026: "U.S. Debt Surpasses $40 Trillion" and "Trump Wants to [Illegally] Bribe Voters."
Links for the day
Gemini Links 12/09/2026: Readjusting, Fighting Sleep, and FreeBSD bhyve
Links for the day
Matt Mullenweg Got the 'Linus Treatment' or 'RMS Treatment'
"back, but not in charge any more..."
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, September 11, 2026
IRC logs for Friday, September 11, 2026
Earlier This Year Microsoft's Chief Liar Frank Shaw Lied About the Layoffs. Now He's Leaving.
he's nowhere near retirement age
Gemini Links 11/09/2026: Small Things and "Hitching Your Wagon"
Links for the day
Links 11/09/2026: Tristan Buckmaster Ripped Off by Slop, Social Control Media Spreads Hatred for Profit
Links for the day
Animals Smarter Than Chatbots
Quack quack goes the chatbot
Why Cyber Resilience Act (CRA) Won't Work
American companies don't follow laws, they work around them
IBM Isn't Reporting Layoffs, But It Removes Tens of Thousands of People From Its Workforce
Red Hat and IBM already mark people for removal
"A Tale of Two Antónios" Will Resume Soon
In November the site turns 20
Links 11/09/2026: Cyberattack in Berlin (Windows/Microsoft TCO) and Hype About Slop as 'Existential' Something; Scam Altman et al Caught Stealing/Plagiarising "Mathematical Breakthrough"
Links for the day
Microsoft/GNOME 9/11
Garrett and Graveley (Microsoft/GNOME) will have a lot to explain
Net Gain of 50 Gemini Capsules in Just One Month
a big jump in just one month
Keeping Linux Reliable
If Linux becomes a lot more reliable in the future, it'll be an "hey hi" miracle. If Linux becomes a lot less reliable in the future, we'll know why and who is responsible for it.
9/11 Was a National Event, Not an International Event
They insist that back doors will "save lives"
Very Sloppy PR From a Dying IBM, Company in Disarray and in Need of Distractions
IBM could really use distractions right now
Cyber Show on the Fallacy of Salary/Ego as a Function of Wisdom in the Era of Pyramid Schemes (Cheating People Using Buzzwords and Complicit Media)
"the remuneration fallacy and the role of reluctance as a negative feedback force."
What a Price-Fixing Cartel Can Look Like
If your prices increase five-fold or ten-fold and so do your revenues/income, what does that tell us?
SLAPP Censorship - Part 178 Out of 200: Explaining to Your American Clients That Spending 130,000+ United States Dollars on a Single Hearing in Another Continent Means the UK's National Archives Will Retain in Perpetuity What Your Spouse or Girlfriend Said
Balabhadra (Alex) Graveley should ask Garrett how much money he has lost so far
EPO's Local Staff Committee Munich Organises General Assembly Next Week, the Goal is to Oust the Corrupt President and Derail His Unlawful Agenda
They're aiming to show Campinos the door
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, September 10, 2026
IRC logs for Thursday, September 10, 2026
Latest IBM Gossip is, Over 25,000 People to be PIPed (by Year's End)
That figure, 10%, is different from 15% (what we saw a lot). 10% is over 25,000 staff.
Solidarity at EPO
"Many colleagues have made personal and professional sacrifices by participating in the ongoing strike and work-to-rule action"
Gemini Links 11/09/2026: Culture Stuck, Robot Symphony, and Back to Geminispace
Links for the day