Bonum Certa Men Certa

Software Patents and the FTC's Red Herring

Red herring



Summary: The core problem with the USPTO remains unchallenged because the wrong problem -- or a symptom rather -- is being described and slowly addressed

The USPTO has been harbouring a culture of patenting, motivated for the most part by large corporations' desire to have mechanisms of protectionism in place, barring or weighing down emerging competition (sometimes domestic but especially foreign). The illusion of a 'free market' should be warped to speak of unregulated markets where large corporations are free to do as they please, always assured that the government that they pay will protect them when the need arises, be it by patent monopolies or even espionage overseas (see Cablegate on Boeing for examples). In this culture where offices like the patent office are run by people who came from large corporations (revolving doors) it is not surprising that even so-called 'reforms' are structured to benefit large corporations.

According to this report from the corporate media, the US government (a branch of it) "said it created a pilot program in which its six administrative judges will in some cases determine within 100 days if companies that sue for infringement have adequate U.S. production, research or licensing to use the court."



"In this culture where offices like the patent office are run by people who came from large corporations (revolving doors) it is not surprising that even so-called ‘reforms’ are structured to benefit large corporations."This is not the right thing to do [1, 2, 3, 4]. What they need to do is assess the quality and especially the scope of the patents, irrespective of the plaintiff. They are doing a sort of ad hominem disservice by looking at a real issue which is nevertheless not the core issue.

Well, citing the pro-software patents blog that lobbies on scope and defends trolls, Groklaw names David Kappos, former head of the USPTO and an IBM faithful. Pamela Jones writes: "This is why Kappos failed. He misunderstood what the criticism of the patent system is about. It has *nothing* to do with a reluctance to pay. It's about protecting innovation in a system that has allowed such broad functional claiming, blocking off entire areas of software development, that no one can innovate safely any more. That damages the patent system and the economy and it brings innovation to a halt. The rest is ideology and daydreams."

The FTC is not going to resolve the overall problem even if it tackles patent trolls. The problem is not correctly identified, just a symptom of this problem. As some wise person noted the other day, there is no good understanding of these issues, so the commission will fail. To quote:

First, it notes that the chairwoman of the FTC is expected to recommend an investigation of patent trolls (or "frivolous patent lawsuits" as specified in the headline). The promised further action has not been confirmed, so we will have to wait and see.

The Times then slid around the "patent troll" name and henceforth called them by the less pejorative "patent-assertion entity" or PAE. Still, adding some weight to the promise of action was the "several executive orders" from President Obama "directing executive agencies to take steps to take steps to 'protect innovators from frivolous litigation.'"

The article goes on to describe patent trolls as typically having no operations other than collecting royalties on patents and says that they accounted for more than 60 percent of the roughly 4,000 patent lawsuits filed last year, up from 29 percent two years earlier.

But then the article notes one company that calls itself a "patent-licensing company," raising the question of "what's in a name".

In any case, the Times expects the full commission (two Democrats and two Republicans, with one seat empty), to approve a study.


What they fail to see is that a large company like Microsoft is also engaged in patent assertion. Some say Microsoft makes billions of dollars this way, at the expense of those who actually sell products that customers want. It makes Microsoft not all that different from patent trolls. Sometimes Microsoft uses a proxy like Vringo, which Troll Tracker describes as follows today:
But is that really what Vringo is doing? Are they taking someone’s IP and making something useful out of it, because that person/company cannot? Or are they taking patents that were sold to them by, oh, I dunno, Microsoft just for instance, and using them as a bully stick with which to beat other companies who have already manufactured something of good use and likely didn’t even infringe but will settle so they don’t have to litigate? That’s what would be a bad thing, right?


To get an example of classic patent trolls, see this new article from Joe Mullin, who says that "With so many patents out there claiming rights to basic Web-based technologies, at this point there aren't many businesses in America that are unaffected by so-called "patent trolls." But one troll, ArrivalStar, found a fresh set of targets that earned it serious scorn: public transit systems."

Here is another article about it. "For several years now," it says, "a curious company called ArrivalStar – which has no website, appears to produce nothing, and is oddly registered in Luxembourg – has been systematically suing public transit agencies in the United States. As we wrote last April, the company holds a collection of dubious patents tied to the technology of tracking vehicles in motion. And it has been using them to claim patent infringement by transit agencies that ... track vehicles in motion."

"At the end of the day the largest corporations will benefit and everyone else will suffer even more."This is starting to get a lot of national coverage.Public transit agencies across US say they’re being squeezed by questionable patent lawsuits, according to the Washington Post. Another article says that "A patent holding company has filed eight lawsuits against U.S. banking institutions in recent weeks, claiming patent infringement on products and services related to security and electronic banking."

What makes this troll a problem is that it hurts the rich, and therefore politicians will go after it with great passion. To Quote further: "In some cases, the patents mentioned in these suits are alleged to cover basic banking functions and features used in ATM and online-banking transactions. In other cases, even cryptography methods used to conform to security standards, such as the Payment Card Industry Data Security Standard, have been brought into question, Denaro says."

A simple ban on software and business method patents would resolve this, but the government goes after those entities not because of their patents but because of their business model. What a red herring this is. At the end of the day the largest corporations will benefit and everyone else will suffer even more.

Recent Techrights' Posts

So When Will British Politicians, Police, Government Departments Quit Twitter (X.com)?
They sure bring constituents there (by being there)
IBM Red Hat Does Not Compete With Microsoft, It's a Microsoft Reseller
even if employees of Red Hat dislike and distrust Microsoft
Dr. Andy Farnell on Marketing Bad Things Like Slop Using FOMO (Fear of "Being Left Behind")
many of the same themes we often cover here
IBM Stock Compared to Bitcoin, Fake Articles About IBM Promote Myths About IBM
The stock moves based on false marketing
 
Links 13/01/2026: More Mass Layoffs in GAFAM, Catching Up With Political News of Early January
Links for the day
Freedom of Speech in the UK (or Freedom of the Press/Expression) and Protection From Adversaries
undressing people without consent and in very bad taste is not "speech"
Ending the Status Quo at the European Patent Office (EPO) This Year
Things will continue to get worse as long as the "Digital Majority" stays silent and/or passive
Greenland Ought to Move to GNU/Linux, Not Apple
GNU/Linux at 4%
If You Care About Freedom, Don't Follow IBM Red Hat (Like Microsoft Novell 20 Years Ago)
IBM Red Hat and Microsoft don't seem to compete
Red Hat Layoffs, Even of "AI" Staff in India
This is how companies die
LLM Slop Isn't Replacing Online News, It's Just a Pest That's Gradually Going Away as Money for Slop Runs Out
Slop likes to talk about itself (like some kind of 'web-cancer')
Not Journalism: Almost 80% of the 'Articles' We Saw About Torvalds and 'Vibe Coding' Are LLM Slop (Sometimes Slop Images)
The real issue is, Torvalds who created Git as a solution to proprietary prison is entertaining Microsoft's own proprietary prison
EPO People Power - Part XXXIII - Interest From Some European Media, For a Change
Without it, we'll become another Russian Federation
Just Another Reminder That Microsoft Didn't Deny Mass Layoffs
Remember that Microsoft never denied this
GNU/Linux Measured at 6% in Réunion This Year
Population sizes like a million people are nothing to sneeze at
Bluewashing Continues, Red Hat Onboarding Interns in Low-Paid Regions
It's the end of the second Monday of 2026
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, January 12, 2026
IRC logs for Monday, January 12, 2026
Gemini Links 13/01/2026: ScottoRang and Outage
Links for the day
GNU/Linux Exceeding 6% in Cape Verde
Windows is measured as down sharply
When It Comes to Health, Slop is a Flop and It Kills People
Chatbots will mostly die after many people die due to them
2026 Has Begun Well for GNU/Linux Users (and for Us)
A lot of the anti-Linux FUD we got accustomed to seeing some years ago became scarce
Links 12/01/2026: Vista 11 Exodus and Famicom/NES Game
Links for the day
Links 12/01/2026: Twitter (X) Being Blocked in More Countries, PTAB Besieged by Cheeto Appointees (Bad Patents Getting Through)
Links for the day
Links 12/01/2026: Brussels Plotting Exit From GAFAM (US), Carole Cadwalladr Explains "Peter Thiel's New Model Army"
Links for the day
Oligarchs and States Always Attempted to Obstruct Efforts to Expose Their Corruption
We commend the administrator who consistently and adamantly defend the freedom of speech
Scheduled Maintenance Between 15th of January and Days to Follow, Free Software Foundation (FSF) Looking to Add 43 More Members by 16th of January
People who value Software Freedom should consider joining to support the FSF
Bracing for Microsoft Layoffs, Tired of Microsoft Lies, Microsoft Staff Wants Transparency, Not Face-Saving Coverup From Frank Shaw
totally made up stock price
GNU/Linux Estimated at Around 5% in Montserrat
another country where the "share" of GNU/Linux is now measured at 5%
GNU/Linux Exceeding 5% in Guadeloupe According to statCounter
GNU/Linux "share" estimates in Guadeloupe
Dr. Richard Stallman @ Georgia Tech Next Week
More Than One Week From Now
EPO People Power - Part XXXII - Little Hope That European Press Will Attempt to Expose Drug Abuse in Europe's Second-Largest Organisation
What does this tell us about the press in Europe?
Three most controversial Australian authors linked to St Paul's, Coburg
Reprinted with permission from Daniel Pocock
Links 11/01/2026: Data Breaches and Recent (Early 2026) Political Developments
Links for the day
Gemini Links 12/01/2026: Insomniacs After School and Boycotting Amazon
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, January 11, 2026
IRC logs for Sunday, January 11, 2026
Brett Wilson LLP 'Dropping' the LLP, Is This Rebranding?
It's not a coincidence or a glitch, there was a formal change somewhere in the system
Can IBM Still Control the Narrative?
We'll see what comes out through the grapevine later this week
IBM SkillsBuild as Microsoft Training, Microsoft Vendor Lock-in, Microsoft Surveillance
Microsoft benefits from IBM's "training"
EPO People Power - Part XXXI - Almost No Crime is Possible Without Enablers and Complicit Colleagues
By the middle of January 2026 we'll have taken things up another gear
Aruba's GNU/Linux Adoption Seems to Have Reach All-Time High This Year
ChromeOS rose by a lot too
After the LLM Slop Frenzy...
In every way, slop is no better than spam
Links 11/01/2026: 'Nothing to Lose' in Iran and Kyiv Restores Electricity
Links for the day
Gemini Links 11/01/2026: "Late To The Party" and "Thinking About Software Licences"
Links for the day
Links 11/01/2026: Bob Weir and Stewart Cheifet Perish
Links for the day
Higher Adoption Rates of GNU/Linux in Cyprus in Recent Years
there are some Cypriots who are championing Free software
Microsoft's linkedin.com is Shrinking, Expect LinkedIn Layoffs to Carry on in 2026
Expect the mass layoffs and office closures to carry on there, maybe as early as next week
Gemini Links 11/01/2026: Scott Morgan and 'The Unix Way'
Links for the day
IBM to Be 'Reorganised'
The rich look for ways to 'monetise' what's left IBM
Dr. Andy Farnell Explains Why He'll Stop Sending E-mail to Microsoft and Gmail Users
The article is long and well worth reading
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, January 10, 2026
IRC logs for Saturday, January 10, 2026