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

"My Hands Are Shaking While Writing" About IBM's Mass Layoffs at Red Hat (Bluewashing)
Shame, shame, shame on the corporate media for not covering Red Hat's layoffs this year
Taking a Look at the Last Articles of Bob Cringely at Forbes, They Were All About IBM and Its Collapse
It's all about IBM
What is "Computer Science"? It is What Broligarchs Reject.
Nowadays some people call themselves informal terms or made-up titles (with terms like "AI" or "big data" or "data" tossed into the mix)
Brigading Against Women - Part XXVII - Americans and Public Executions
"People who work for Facebook / Xitter / Bytedance's Tiktok / Microsoft / Oracle / IBM / Apple / Uber / Lyft / Wolt / DoorDash / AirBnB / Bolt / and so on are doing some world-class projection when they have the audacity to call others Bad People(tm)"
Gemini Links 12/10/2026: Westminster Quarters, Civilization, Luddites, and More
Links for the day
 
Links 12/10/2026: Shopify (Slop Booster) Has Security Issues, "Russia’s Yandex Says Data Center in Vladimir Shut Down After Drone Attack"
Links for the day
Microsoft Windows Causes Problems (and Delays) to LibreOffice and The Document Foundation
Nothing would please Microsoft more than Windows curtailing the development of LibreOffice and adoption of ODF
So Far This Year Microsoft Windows Lost a Lot of Ground in China, GNU/Linux Gaining at Its Expense
GNU/Linux will soon exceed 10%
Lessons of Margaret Hamilton (Software Engineer)
Stop abetting men who attack women in the sciences
RIP, Bob Cringely
He was too young to leave us, his articles were still brilliant and his mind as lucid as ever
Linus Torvalds Has a Conflict of Interest Regarding Slop
Linus Torvalds is paid by the slop pushers
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, October 11, 2026
IRC logs for Sunday, October 11, 2026
Africa Sees GNU/Linux Exceeding 5% "Market Share"
It wasn't always like this. It used to be measured at 1 or 2 percent.
Slop-ware Is Not Newsworthy
LLMs are exceptionally loquacious and create large code bases
Links 11/10/2026: US Sides With Vladimir Putin, Convicted Felon Dubbed "Agent of a Foreign Power"
Links for the day
IRC Tracker Back in Order, Number of Known IRC Networks Continues to Increase
We don't know if our article helped trigger a resolution
Links 11/10/2026: "Execution TV" (Iran Aped by US) and ‘Digital Oblivion’ Caused by Slop Frenzy Online
Links for the day
Voice for the Impoverished
the country's leaders attack the country's own press
Gemini Links 11/10/2026: Adults Dressing Up as Animals, 44th Birthday, and More
Links for the day
Running a Country's Economy by Borrowing Over $400,000,000,000 Per Month
This is the hallmark of an economy in irreversible decline
Brigading Against Women - Part XXVI - Trying to Deplatform Critics of Microsoft's Restricted Boot
Like James Bottomley, Matthew Garrett served Microsoft's agenda while employed and salaried by other companies
Anderon Is Not a Real Company, It's an IBM Bailout Dressed Up or Wrapped Up In Buzzwords
It certainly does seem like they receive money from taxpayers for nothing, or for IBM to do mass layoffs/closure at Albany under the guise of "making a new spinoff"...
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, October 10, 2026
IRC logs for Saturday, October 10, 2026
Gemini Links 10/10/2026: Radio Romania International, Avoiding GAFAM, Open Camera, and Another Palm
Links for the day
The 2026 Slop Prediction (Slopfarms Perishing)
Morality in the "digital world" has deteriorated profoundly
netsplit.de (Survey of IRC Networks and History) Only Partly Functional This Month
Get well soon, netsplit.de
Microsoft Cuts
GAFAM enshittification
NVIDIA Acts Like It Cannot Pay Salaries (Too Many Obligations, Sales in Circular Financing, or Basically Accounting Fraud)
Masters of acting as clients of themselves
Paying for elections, Reform UK illegal confession in High Court
Reprinted with permission from Daniel Pocock
Contemptuous Law Firm Accusing Others of Contempt of Court
Keeping a running tally can help
Links 10/10/2026: Let's Encrypt Making Changes (Problem for Small Sites/Operations), Quartz is Officially a Slopfarm (Busted)
Links for the day
Microsoft Abuses PERM and Lays Off Workers in India
The US government has made it easier for Microsoft to hide the mass layoffs
The GAFAM Elections in the United States
If the election is run by platforms that have back doors "baked-in" and if the communications are overseen by GAFAM, you would not have to be a "nutty MAGAt" to dispute the outcome
More GAFAM Layoffs (Late on Friday Night)
They say they are worth trillions, but they don't even make money
Male-Dominated EPO Fails to Have "Concrete Measures to Support Female Staff"
Being a female at the EPO is exceptionally hard
Brigading Against Women - Part XXV - No Anonymity for People Who Did Illegal Things
"Empathy is the sunlight to the vampire of culture."
Production Freeze at the European Patent Office (Opposing Monarchy, Institutional Maladministration and Corruption)
Eight reasons to participate
Links 10/10/2026: Microsoft 'Open' 'AI' Silencing Critics, "Data Centres are the New Front Line in the Russia-Ukraine War"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, October 09, 2026
IRC logs for Friday, October 09, 2026
Gemini Links 10/10/2026: Optimism, Stargazing, "Life Without Smartphone", and Fairphone 4
Links for the day