Bonum Certa Men Certa

Eye on Patents: Broken System as Shown by New Evidence

Broken



Summary: Additional signs of a dysfunctional system which grants and manages patents too poorly

We lack the time to cover all the patent stories which seem to matter, so here is just a list of links.

Groupon vs. MobGob: Patent Battles Hit The Daily-Deal Business

Groupon filed a patent lawsuit against MobGob in Chicago yesterday. It’s a counter-attack against MobGob, which started the fight when it sued Groupon in California, together with a shell company called CY Technology. They accuse Groupon of infringing a patent they were issued in March called “Method of Community Purchasing Through the Internet.” This, according to the patent, is “a community purchase model where a product can be purchased a particular price only if enough buyers are willing to purchase at that price.” Or, put another way, Groupon’s entire business model.


Sham Reexamination Requests and Federal Preemption

This is an interesting case that is pending before the Federal Circuit. The focus of the appeal is whether a patentee has any cause of action for a third-party's baseless filing of a reexamination request. The patent laws themselves offer no remedy so Lockwood turned to California State Court – alleging that the Sheppard Mullin law firm should be held liable for Malicious Prosecution, Interference, and Fraud by filing their reexamination request. Lockwood argues that "[Sheppard Mullin lawyers] chose to violate the strict duty of candor required before the USPTO by making deceptive misrepresentations about the nature of purported 'prior art' in two Requests for Reexamination. Respondents filed the Requests to gain a tactical advantage during infringement litigation, in furtherance of their stated aim of putting Lockwood 'out of business,' and without any reasonable basis in patent law."


5 Questions With … Brightidea’s Matt Greeley (never noticed Inventors Digest before)

ID: What are some of the elements needed to grease the skids of innovation?

MG: If you want a fluid exchange of ideas, you need a stronger, more efficient intellectual property regime. It’s important to our competitiveness as a nation that we work through this. The state of software patents is a mess. It takes too long. There’s an asymmetry of getting and defending a patent. This could go the way of FedEx. I mean, the U.S. Postal Service wasn’t keeping up and the postal service was privatized. It could come to the point where there’s a privatization of the IP regime.

ID: Wow. Never heard that one before. Might make for an interesting article down the road. What’s your favorite invention?

MG: Paper or pen and paper. It’s a meta invention. It supports more inventions. How many inventions were first conceived on paper? I always look for meta inventions or ask myself, ‘What’s the more important thing I can work on?’


WHAM! — Target of False Patent Marking Suit to Argue Bounty Hunting Scheme Unconstitutional

The National Law Journal reported online yesterday that Wham-O, creator of such iconic toys as the Frisbee€® and the Hula-Hoop,€® has alerted the U.S. Court of Appeals for the Third Circuit that it will challenge the constitutionality of 35 U.S.C. €§ 292, the section of the federal patent law which empowers any person to sue any entity which marks their products with a false (i.e. expired) patent number. What is particularly interesting about the challenge is that Wham-O succeeded in getting the bounty hunter’s claim thrown out at the federal trial court on the grounds that the complaint alleged no concrete injury. In the aggressive and innovative spirit of Wham-O’s founders, rather than simply argue that the district court’s reasoning was correct, Wham-O’s lawyer is taking a “best defense is a good offense” approach. Whether the Third Circuit will rule on an argument not addressed by the lower court is uncertain.


China pushes home grown patents of questionable value



In an otherwise interesting article, the Economist ended a story on the Chinese government's campaign to produce more innovations and resulting patents with this, "If ideas are protected, Chinese people will produce more of them" link here.

Yet the rest of the article doesn't really support that conclusion. People are obtaining lots of patents, issued only since 1985, but whether they are innovations worthy of a patent remains open to question. It turns out there are two kinds of patent, a sort that requires a determination of novelty and is good for 20 years and the other, a finding of utility and good for only 10 years. The latter are far more numerous.


Patent Office: Part of the growth in the regulatory burden

Can you patent financial innovations? (Felix Salmon is always insightful)

It turns out that RHR is technically an invention of 2009, not 2010, if you look at its patent application. Loan Value Group hasn’t actually been awarded the patent yet—Gandel was a little bit ahead of himself there—but LVG’s Frank Pallotta told me that applying for a patent on the idea “was the first thing we did” after setting up the company, and that the patent application preceded substantially all of the time and effort that LVG put in to building RHR.

Pallotta is an expert in mortgages, not in intellectual property, but he did say that he hadn’t personally ever come across a finance company applying for a patent on its idea before.

What’s more, it’s generally accepted that financial innovations can’t be patented: it’s an argument that Sebastian Mallaby regularly rolls out, for example, to defend and explain the secrecy of hedge funds. If you can’t apply for a patent, then the only way to stop people copying you is to operate in utmost secrecy.


When the government confers monopoly rights to drug companies (Christian Zimmermann links to the story below)

Drug firms accused of exploiting loophole for profit

The BBC reports about a drug that was available cheaply, got tweaked in a minor way and now available only in a much more expensive format. While the story is not about patenting, it is very similar to it as it is about licensing a drug, in this case for use in the UK, and excluding the old, yet still perfectly effective, drug from use. This is exactly what a patent does, and there are countless examples of pharmaceutical companies doing exactly these very marginal improvements to extract major rents from sick people.


Politicians pledge to change gene patenting laws (we covered gene patents before [1, 2])

Politicians from all sides of politics say they want changes to Australia's gene patenting laws, but it is unclear which major party will act first.

At a Cancer Council breakfast, members of the Government, the Opposition and independents spoke about the need to change the law so gene sequences cannot be patented.

Oncology Professor Ian Olver says currently one company can stop others from conducting tests on a gene that they discover, slowing down cancer research.


There's also the story about Amazon and business method patents, not just software patents or patents on nature.

Patent trolls do not always get their way as Jagex helps show after a long a tiring lawsuit. Gamasutra was the main source of this story, cited by many others. [via]

A U.S. District Court judge has dismissed a patent infringement lawsuit brought against RuneScape developer Jagex, but not before the UK studio spent a purported seven figures defending itself.

Judge David Folsom last week dismissed online chat company Paltalk's claims that Jagex infringed on Paltalk patents relating to online network communications, according to court documents obtained by Gamasutra.

"After reviewing source code for the RuneScape video game made available by Jagex, Paltalk and Jagex agree that the RuneScape video game does not infringe the patents-in-suit," wrote the judge. "Accordingly, judgment of non-infringement is entered in this case."


"If the US doesn't fix its patent system," wrote Groklaw's Pamela Jones about it, "I can foresee a time when companies will choose to avoid a US presence. And companies that choose to settle bogus suits should think about what they are doing to others." Cory Doctorow wrote about this too:

RuneScape devs refuse to cave in to patent trolls



[...]

Jagex, the UK game dev behind RuneScape, refused to be intimidated by patent trolls Paltalk, who claim a broad patent on what amounts to all online multiplayer gaming. Microsoft settled a similar bogus claim last year, giving Paltalk a war-chest and a precedent with which to continue with nuisance suits against other MMO companies, including Sony, Blizzard, Activision, and others.


This is an excellent example of how broken the system is. Spending millions of dollars to prove one's innocence is simply unacceptable. It's favourable to patent trolls and rich companies with deep pockets.

Recent Techrights' Posts

IBM Behaves Like a Company Looking for Loose Change Between Sofa Cushions
Chasing laid-off workers for dollars and even pennies, making excuses and devising loopholes (such as PIPs) to flout severance obligations
EPO Union Leaders in Rijswijk Explain Where EPO Strikes Stand and How to Prepare for Next Week's
We have some revelations to share in a few days
Microsoft's "AI CEO" (Slop Propagandist) is Projecting, Many Microsoft "Jobs to be Replaced With All-Indian Low-Paid Staff in 12 Months"
Windows is perishing
 
IBM, Red Hat and Fedora: Don't Say "Master", It Offends People. Also IBM, Red Hat and Fedora: "Master Podman".
The hypocrisy at Red Hat and Fedora shows no boundaries
IBM Layoffs Aren't Just in IBM 'Proper'
Who is still using Lotus after the HCL move?
The Register MS Gets Paid by Gartner to Promote a Ponzi Scheme for Gartner, Microsoft, and Others
The credibility of that site will suffer because it tries to sell a major scam to its audience
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, February 19, 2026
IRC logs for Thursday, February 19, 2026
Gemini Links 19/02/2026: "Towards a Gemini Famicom Resource" and Dumping Microsoft
Links for the day
Microsoft Found Another Bailout Opportunity: Killing People
Good thing that Nadella is not racist!
No "Smart Mobs" (Social Control Media) in BRIC?
It looks like the "Social" "Media" sites tracked by statCounter see little from (or of) BRIC, and moreover it is declining fast
The Few Slopfarms We Saw Today
The sentiment has changed a lot
Links 19/02/2026: Protecting Framework Laptop 13, Hardware Drive Shortages
Links for the day
In Africa's Second-Largest Nation, Democratic Republic of the Congo (DRC), Opera 10 Times Bigger Than Firefox (and GNU/Linux Now at 5%)
This will become an accessibility problem
Links 19/02/2026: "A.I.pocalypse" Inevitable and "Butlers to LLMs"
Links for the day
An Inherently Royal (Monarchs') Legal System Where Size Matters (Big Capital Eats the Small)
This reinforces the notion that justice is only for those who can afford it
These Statistics Should Keep Microsoft Shareholders Awake at Night
Windows is, in general (all versions collectively), declining over time
Economic Failure and Other Harsh Realities Have Nothing to Do With Slop 'Innovation'
Advanced propaganda, not advanced 'AI' [...] They attack workers while insulting their intelligence
Spaniards Shutting Down MElon's Digital Weapon of "Smart Mobs"
Are the Spanish people already acting based on gut feeling and shunning/shutting out the provocation vector?
Bitcoin: government engagement contradictions
Reprinted with permission from Daniel Pocock
Richard Stallman in the United States - Part II - "Haters Gonna Hate"
we shall carry on with this series at the right pace
Typical! Solicitors Regulation Authority (SRA) Tells Victims of Fraud to Wait 10 Weeks
justice delayed is justice denied
statCounter: Only One in 350 Iranians Would Use Microsoft for Web Search
Microsoft is trying to fake "demand"
Slides Shown a Week Ago by the EPO's Staff Committee Ahead of the Second Very Large Strike
This coming weekend we'll drop a 'bombshell' of sorts
EPO "Cocaine Communication Manager" - Part II - Illegal Drug Addicts Mobbing the Wrong People, This Will Definitely Backfire
This year may well be the last year of Team Campinos. Nobody will hire them after that.
Mass Layoffs (But Silent Layoffs) Still Happening in IBM, You Need Only Look Closely (There Are NDAs, PIPs, 'Early Retirement' Sweeteners and IBM - Like Microsoft - Skirts the WARN Act)
the layoffs are definitely happening
Very Little Slop
We are not finding much slop anymore
Links 19/02/2026: Illegal Kangaroo Court for Patents Attracts Aggressive Firms, Public Domain Review Grows
Links for the day
Gemini Links 19/02/2026: Taxing the Rich, Raspberry Pi 4 Tinkering
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, February 18, 2026
IRC logs for Wednesday, February 18, 2026
Links 18/02/2026: DMCA Weakened, Anna’s Archive Still Thriving
Links for the day
Links 18/02/2026: Gig 'Economy' Condemned, Microsoft Insulting/Stressing People With False Slop Predictions
Links for the day
Twitter Falling to 1% in Africa's Largest Nation (Algeria)
About 15 years ago the regime in Egypt got toppled (and others had been too) partly because of social control media such as Twitter
"How Many Friends Do You Have?"
"Do bots count?" "Friends in Facebook?" "Does a girlfriend chatbot count as a friend?"
Solicitors Regulation Authority (SRA) Responds to Crises Only After It's Way Too Late
The SRA does not do its job. The new chief's job is face-saving PR in the media.
The Techrights Team Makes the Platform Faster
The infrastructure is already fast
Mozilla Firefox Died in Afghanistan
Mozilla has been a complete disaster
Gemini Links 18/02/2026: Astronomy and Texinfo
Links for the day
Are IBM CEO and IBM CFO Ready for Financial Audit That Topples the Shares by 50% in One Day?
The same "chefs" that cooked up Kyndryl Holdings Inc are still in charge of the IBM kitchen
France Does Not Need Digital Weapons Disguised as Social and as Media
French people lost interest in Social Control 'Media' (or Networks)
"Senior AI Reporter" at Slop Technica/Ars Sloppica Has Written Nothing in Nearly a Week, Did Conde Nast Suspend Him for Fake Articles With Fake Quotes?
Slop Technica/Ars Sloppica is having a serious credibility issue right now
Linux Foundation Puts Slop Images, Not Just Slop Text, in Linux.com
More of the same then
The Register MS Paid-for 'Articles' (Ads) Seem to be LLM Slop Again
If it's true that The Register MS is resorting to these marketing tactics, will they later delete the evidence (as they did months ago)?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, February 17, 2026
IRC logs for Tuesday, February 17, 2026