EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

09.17.11

Impact of America Invents Act on Patent Trolls

Posted in Law, Patents, Red Hat at 5:18 am by Dr. Roy Schestowitz

The Capitol

Summary: A Red Hat perspective on the recently-passed H.R. 1249

RED HAT was recently sued by MOSAID, a patent troll that Microsoft helped pass some patents to, by its very own admission. MOSAID is similar to Acacia, which also sued Red Hat.

According to Erick Robinson, whom we mentioned in March and in April, the lousy patent 'reform' we saw recently may in fact be helpful against patent trolls. To quote Red Hat’s OpenSource.com:

So it has finally happened: a patent reform bill has actually become law. Last Thursday, the U.S. Senate voted 89-9 to send H.R. 1249 to the White House, where it was signed into law today. While I have pointed out in the past that this bill misses out on several aspects of reform that previous bills attempted, it does include some useful aspects.

First, though, let’s discuss what the new law will NOT include. It will not include any provision tying damages in patent litigation to the specific contribution of the patent over prior technology nor will it provide any specific damages limitation. It will also not require bifurcated trials to separate liability and damages issues. It will not allow interlocutory (real-time, during the underlying case rather than post-verdict) appeal of claim constructions by courts. It will also not specifically include a provision restricting venue in patent litigation (but, as shown below, the joinder provision will have an effect on venue for some cases). Each of these provisions were included in prior versions of the legislation and would have helped fix the system.

[...]

The joinder provision included in the America Invents Act, as passed, which Red Hat actively supported, specifically states that there must be another basis for joinder beyond an allegation that the defendants have all infringed a patent. Thus, the new law should prevent the “file around the country, and add a few Texas mom and pops” tactic. In fact, the natural result of this new law should be that patent plaintiffs, especially non-practicing entities (NPEs), will generally have to file as many lawsuits as there are defendants. This will mean that each case will likely be filed either where each defendant is organized (often Delaware or Nevada) or where it has its principal place of business.

At least as important as this effective restriction on venue is the effect on NPEs of having to litigate one case per defendant. First, NPEs have been targeting multiple defendants in a single lawsuit to reduce their costs. More important, though, NPEs have been leveraging such lawsuits against defendants by forcing competitors and other unfriendly parties to either cooperate by sharing confidential documents, expenses, attorneys, and strategy or to spend even more money and resources in defending the case. The new “one defendant-one lawsuit” rule will require NPEs to try cases as many times as there are defendants. Not only is this prohibitively expensive, but it puts the validity of the patent(s) in suit in peril every time the case is tried.

Ultimately, however, patent trolls should not exist; neither should software patents.

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

What Else is New


  1. Links 19/4/2018: Mesa 17.3.9 and 18.0.1, Trisquel 8.0 LTS Flidas, Elections for openSUSE Board

    Links for the day



  2. The Patent Microcosm, Patent Trolls and Their Pressure Groups Incite a USPTO Director Against the Patent Trial and Appeal Board (PTAB) and Section 101/Alice

    As one might expect, the patent extremists continue their witch-hunt and constant manipulation of USPTO officials, whom they hope to compel to become patent extremists themselves (otherwise those officials are defamed, typically until they're fired or decide to resign)



  3. Microsoft's Lobbying for FRAND Pays Off as Microsoft-Connected Patent Troll Conversant (Formerly MOSAID) Goes After Android OEMs in Europe

    The FRAND (or SEP) lobby seems to have caused a lot of monopolistic patent lawsuits; this mostly affects Linux-powered platforms such as Android, Tizen and webOS and there are new legal actions from Microsoft-connected patent trolls



  4. To Understand Why People Say That Lawyers are Liars Look No Further Than Misleading Promotion of Software Patents

    Some of the latest misleading claims from the patent microcosm, which is only interested in lots and lots of patents (its bread and butter is monopolies after all) irrespective of their merit, quality, and desirability



  5. When News About the EPO is Dominated by Sponsored 'Reports' and Press Releases Because Publishers Are Afraid of (or Bribed by) the EPO

    The lack of curiosity and genuine journalism in Europe may mean that serious abuses (if not corruption) will go unreported



  6. The Boards of Appeal at the European Patent Organisation (EPO) Complain That They Are Understaffed, Not Just Lacking the Independence They Depend on

    The Boards of Appeal have released a report and once again they openly complain that they're unable to do their job properly, i.e. patent quality cannot be assured



  7. Links 18/4/2018: New Fedora 27 ISOs, Nextcloud Wins German Government Contract

    Links for the day



  8. Guest Post: Responding to Your Recent Posting “The European Patent Office Will Never Hold Its Destroyers Accountable”

    In France, where Battistelli does not enjoy diplomatic immunity, he can be held accountable like his "padrone" recently was



  9. The EPO in 2018: Partnering With Saudi Arabia and Cambodia (With Zero European Patents)

    The EPO's status in the world has declined to the point where former French colonies and countries with zero European Patents are hailed as "success stories" for Battistelli



  10. For Samsung and Apple the Biggest Threat Has Become Patent Trolls and Aggressors in China and the Eastern District of Texas, Not Each Other

    The latest stories about two of the world's largest phone OEMs, both of which find themselves subjected to a heavy barrage of patent lawsuits and even embargoes; Samsung has meanwhile obtained an antisuit injunction against Huawei



  11. The EPO Continues to Lie About Patent Quality Whilst Openly Promoting Software Patents, Even Outside Europe

    EPO patent quality continues to sink while EPO management lies about it and software patents are openly being promoted/advocatedEPO patent quality continues to sink while EPO management lies about it (the article above is new) and software patents are openly being promoted/advocated



  12. SCOTUS on WesternGeco v Ion Geophysical Almost Done; Will Oil States Decision Affirm the PTAB's Quality Assurance (IPRs) Soon?

    Ahead of WesternGeco and Oil States, following oral proceedings, it's expected that the highest court in the United States will deliver more blows to patent maximalism



  13. Links 17/4/2018: Linux 5.x Plans and Microsoft's 'Embrace'

    Links for the day



  14. The European Patent Office (EPO) Grants Patents in Error, Insiders Are Complaining That It's the Management's Fault

    The EPO has languished to the point where patents are granted in error, examiners aren't happy, and the resultant chaos benefits no-one but lawyers and patent trolls



  15. The European Patent Office Will Never Hold Its Destroyers Accountable

    With only one in seven EPO stakeholders believing that Battistelli's pick (António Campinos) will turn things around for the better, it certainly does not seem like people are happy and there's no real hope that Battistelli will ever be held accountable for his abuses after his immunity expires



  16. With Liars Like These...

    The European Patent Office continues to lie about the Unified Patent Court (UPC) amongst other things, still revealing its reluctance to say anything which is truthful or work to repair the damage caused by Benoît Battistelli



  17. Links 16/4/2018: Linux 4.17 RC 1, Mesa 18.0.1 RC, GNOME 3.28.1

    Links for the day



  18. IAM, Patently-O and Watchtroll (the Patent Trolls' Lobby) Try to Stop Patent Oppositions/Petitions (PTAB)

    In spite of fee hikes, introduced by Iancu's interim predecessor, petitions (IPRs) at the PTAB continue to grow in number and the patent maximalists are losing their minds over it



  19. The Patent Trial and Appeal Board (PTAB) is Ending Software Patents One Patent at a Time

    At an accelerating pace and with growing determination, PTAB (part of AIA) crushes patent trolls and software patents; the statistics and latest stories speak for themselves



  20. Academics and Think Tanks for Patent Maximalism

    Right-wing think tanks and impressionable academics continue to lobby for patent maximalism, rarely revealing the funding sources and motivations; in reality, however, such maximalism mainly helps large (already-wealthy) corporations, monopolists, and law firms



  21. Killing Patent Quality and Encouraging 'Covert' Software Patents Using the Buzzwords Du Jour

    The epidemic of buzzwords and/or hype waves that are being exploited to dodge or bypass patent scope/limitations, as seen in Europe and the US these days



  22. Crisis of Quality at the EPO Extends to Staff (Notably Examiners) and Management as Institutional Integrity is Severely Compromised

    A rather pessimistic but likely realistic outlook for the European Patent Office (EPO), which seems unable to attract the sort of staff it attracted for a number of decades



  23. The 'Blockchaining' of Software Patents (to Dodge the Rules/Guidelines) Now Coming to Europe

    A lot of software patents are being declared invalid (or not granted in the first place); having said that, using all sorts of hype waves (like calling databases “blockchains”) firms and individuals manage to still be granted software patents and sometimes patent trolls hoard these



  24. Links 14/4/2018: Wine 3.6, KDE Elisa 0.1

    Links for the day



  25. East Asia Should Have Adopted the Patent Strategy of South Asia, Notably India

    China seems to be so interested in patent maximalism that it has lost sight of the effect on foreign investment, e.g. US/European/Taiwanese/Japanese/Korean firms operating/manufacturing in mainland China



  26. Samsung is the 'New IBM', Sans the Trolling With Patents

    The 'relic' company, IBM, loses its patent leadership (as measured using some yardstick) to Samsung, a company which is relatively calm when it comes to patent activity (unless/only when sued, as happens a lot nowadays)



  27. David Barcelou May or May Not be a Patent Troll, But He is Certainly a SLAPPing Bully and Watchtroll is Fine With It

    Like a thin-skinned person/entity (which many in the patent microcosm are), David Barcelou and Automated Transactions (“ATL”) SLAPP their critics and surprisingly enough it's Watchtroll, who has been threatened by WIPO, coming to the bully's rescue (double standards)



  28. Links 12/4/2018: Stable New Kernels, Neptune 5.1

    Links for the day



  29. The USPTO Has a Nepotism and Lobbying Problem That Jeopardises the Rationality of US Patent Law

    The influence games of Washington are spilling over to the US patent office and poisoning/harming its ability to conduct professional operations without corporate influence (from either side, both corporations and law firms)



  30. Patent Trolls in the United States Show the Importance of Stopping Software Patents (Trolls' Favourite) Worldwide

    The abundance of entities that exist for no purpose other than to initiate lawsuits is a contagious threat to real innovation (or science and technology being practiced); a new jury verdict (record-breaking $500,000,000) is a reminder of this


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts