Bonum Certa Men Certa

The US Patent System: Where One Wastes Years in Court and Spends $8,000,000 in Lawyers' Fees Fighting a Bogus Patent

The US patent office has essentially externalised the costs to the public

Alice road



Summary: A roundup of news about software patents in the US and what they have led to, owing in part to the USPTO's declining patent quality (leaving others to clean up its mess)

THE ridiculously low standards of the USPTO come at a huge cost, albeit this cost is considered an externality by this greedy patent office. Unless this mess is sorted out soon, the US might have nothing left but large multinational corporations with tens of thousands of patents each, as opposed to agile startups with none.



Elliot Harmon says that this one particular software patent, which can possibly be demolished quite easily using Alice, has been used in the Eastern District of Texas and it's the "Stupid Patent of the Month" (as per the series of the EFF). To quote:

This month, a company called Voice2Text Innovations filed patent infringement lawsuits against two voice over Internet protocol (VoIP) services, Phone.com and Vitelity. Voice2Text has no website or any other information online; its sole asset appears to be US Patent No. 8,914,003—unsurprisingly, a patent on using voice recognition to convert a voicemail into a text message. Equally unsurprisingly, it’s filed those suits in the Eastern District of Texas, whose patent-troll-friendly practices we’ve thoroughly documented on this blog. The Voice2Text patent is so absurd that we had to honor it with our Stupid Patent of the Month award.


"Unless this mess is sorted out soon, the US might have nothing left but large multinational corporations with tens of thousands of patents each, as opposed to agile startups with none."In order to destroy such a patent one might need to spend quite a lot of money rather than settle. Consider this new story titled "Court Orders Plaintiff to Pay Defendants’ $8 Million in Attorney’s Fees in Patent Row". That's a lot of money; patent lawyers grossly overcharge and the system plays in their favour by inducing additional costs at many levels (e.g. appeals), thus favouring those with bigger budgets or deeper pockets, leaving small players vastly more vulnerable. To quote the concluding words: "This case illustrates that the courts will take strong action when faced with baseless claims, hidden or altered evidence, and misleading statements made to the court or opponents. It also serves as a strong reminder to consider your counsel carefully, and the advice that they provide, or a plaintiff may have to pay its own fees and those of the defendant, which in this case amounted to another $8 million."

This case may be the exception rather than the norm, but judging by NewEgg's decision to stand up to trolls, it often costs literally millions and there is no guarantee of the plaintiff -- upon loss -- bearing the cost of the defendant's (victim's) legal bills. NewEgg actually made history by managing to compel a patent troll to pay its victim's legal fees some months ago, owing to an unusual decision by the judge.

"NewEgg actually made history by managing to compel a patent troll to pay its victim's legal fees some months ago, owing to an unusual decision by the judge."Patently-O has just recommended Lynda J. Oswald's relatively new paper which criticises the term “strict liability” and whose abstract says: "In 1995, the Federal Circuit summarily attached the label of “strict liability” to direct patent infringement, even though that term does not appear in any U.S. Patent Act of the past two centuries. The catechism of “strict” direct patent infringement liability is now so well-engrained in patent doctrine that it is easy to lose sight of how recent the advent of this terminology is in the case law, and how troublesome application of this standard has proven, even to the Federal Circuit, which created it. The first patent act (1790) preceded the emergence of tort law as a distinct field of U.S. common law (mid-1800s) by a half-century or more, and the products liability explosion of the mid-twentieth century radically altered our understanding of strict liability. The implications of this forgotten timeline are profound. “Strict liability,” particularly in its modern formulation, is not a neutral, descriptive term. Rather, the term evokes social policy choices and balancing considerations that may be appropriate within the case law context of products liability or abnormally dangerous activities, but which are incongruous and inapposite in the statutory context of patent law. Deeming direct patent infringement to be a strict liability leads to two unanticipated and unwelcome effects. First, the adoption of the “strict liability” label for direct patent infringement liability improperly inflates the courts’ role in setting direct patent infringement liability standards and suggests — incorrectly — that patent liability is a case law construct, when in fact it is a statutory construct. Second, the “strict liability” label improperly shifts the focus of the patent infringement inquiry from the Patent Act’s protection of the plaintiff’s exclusive property interest in its patent right toward a value-laden examination of the social utility of the defendant’s conduct vis-à-vis the injury to the patent holder. Jettisoning the “strict liability” label for direct patent infringement would reframe the analysis and debate, moving direct patent infringement liability out of a policy framework and back toward its proper statutory setting."

"PTAB is increasingly being used to correct the USPTO's errors, but why not dig deep into the root of the problem and simply tackle the USPTO's unrestrained greed?"What's worth noting here is that a lot of the risk has been passed to defendants, not to plaintiffs, who often rely on poor quality examination by the USPTO (resulting in the grant of bogus patents). PTAB is increasingly being used to correct the USPTO's errors, but why not dig deep into the root of the problem and simply tackle the USPTO's unrestrained greed?

CAFC won't be coming to one's rescue after PTAB, according to one example just put forth by Patently-O. To quote Patently-O: "The Federal Circuit has denied en banc review of decisions in four inter partes review proceedings brought by Gnosis. Federal Circuit had previously affirmed the Patent Trial and Appeal Board’s IPR determination that the challenged Merck and SAMSF patent claims were invalid as obvious."

The relevance of this was ever more apparent when Bass gamed the value of companies by invalidating key patents -- a move which IAM now conflates with patent trolls by comparing Bass to trolls. Spangenberg is a patent troll, Bass invalidates patents. They have a very different modus operandi, but as IAM put it, the connection lies within a team-up: "Since teaming up with former IPNav CEO Erich Spangenberg to launch their first US inter partes review (IPR) in February last year – challenging a pharmaceutical dosage-related patent owned by Acorda Therapeutics – Kyle Bass has become one of the IP business world’s highest-profile players. Whether he should primarily be seen as antagonist, protagonist or the antihero somewhere in-between depends on your point of view. What is certain is that the validity actions being pursued by him and Spangenberg through their Coalition for Affordable Drugs – targeting patents belonging to pharmaceutical ‘originator’ companies – rocked the post-America Invents IP landscape."

"The USPTO's poor quality -- a trap which the EPO growingly falls into -- helps trolls, strategic predatory investors/hedge funds, and monopolists which do a disservice to innovation."What is worth noting here is that if the patents invalidated upon request by Bass were not granted by the USPTO in the first place, none of this would have happened. The USPTO's poor quality -- a trap which the EPO growingly falls into -- helps trolls, strategic predatory investors/hedge funds, and monopolists which do a disservice to innovation. Watch IBM's patent chief having the audacity this weekend to complain about the system which David Kappos from IBM made worse (in IBM's favour; IBM pays him now for lobbying), furthermore complaining about a system outside his own country (Australia) because it attempts to improve patent quality, as we noted yesterday.

Recent Techrights' Posts

Why Microsoft Accenture Has So Many Layoffs in Recent Years
The debt of Accenture doubled a year ago
 
The New Site ("New Techrights", SSG Since 2023) Exceeds the Old Site in Requests
The "New Techrights" gets about twice as many requests as the "old" (WordPress) "Techrights", the site of 2006-2023
20 Years Ago
Some time soon all this slop frenzy will become like yesterday's "blockchain" or "metaverse"
Gemini Links 01/02/2026: Zdzisław Beksiński and Disconnected Git Workflow
Links for the day
Talks About Nadella's Microsoft Exit After Chatter About Tim Crook Leaving Apple (Years Ahead of Retirement Age)
Mass layoffs and record debt do not represent a company's health.
We Still Cover the Same Problems We Spoke of 20 Years Ago
We're not easily seduced by "novelty" (new things), we try to judge them critically
Patents Standing in the Way
They also cause environmental harm
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, January 31, 2026
IRC logs for Saturday, January 31, 2026
IBM, a Microsoft Company
Microsoft and IBM as a pair go a long way back
A Lot Less GAFAM in Scandinavia
Are they reacting to geopolitics and risks from the US?
IBM Kills Companies It Bought (Neudesic Seems Like Latest Casualty)
Why isn't even a single publisher investigating those things?
Fake "Linux" Articles
Just because some platform has "Linux" in the domain name and/or site name does not imply that it is a news/Linux site
Gemini Links 31/01/2026: "Proof Without Content" and "Technology Connections"
Links for the day
Links 31/01/2026: Microsoft "OpenAI Representatives Are Going to Critics’ Houses With Threats and Demands", Its Proprietary Chaffbot Faces More Lawsuits
Links for the day
Links 31/01/2026: "Introducing Encrypt It Already" and "Huge Cache of Epstein"
Links for the day
A Can of WORMS - Part I - Trying to Throw RMS Under the Bus at MIT and Everywhere Else
This series won't give air to online 'trolls'
Mobbing at the European Patent Office (EPO) - Part I - An Introduction
When the series ends, some time around the second or third EPO strike of this year, we'll contact the relevant authorities and plead for intervention
The Solicitors Regulation Authority (SRA) Delusion - Part I - Who Regulates This Regulator? (Only Itself!)
We won't self-censor or prematurely terminate this series
Norway Almost Trusts Russia More Than the Bill Gates (Sleeping With Young Russian Girls) Company, Microsoft
Microsoft represents crime
Riddle Us This... (Jim Zemlin and Bill Gates)
Do these people even understand the literal meaning of "safe space"?
Is "Nobel Prize for Peace" a Sick Person's 'Code Word' for Gangbanging Now? Ask Bill Gates.
Watch all the Gates apologists getting all silenced/silent
BBC Gaslights Women Sexually Exploited (Many Under Legal Age) for Its Rich Sponsor, Bill Epsteingate (Gates)
Is this a national broadcaster or a propaganda tool "For Rent"?
Microsoft 'Open' 'AI' Reportedly About to Become Bankrupt, Seeking Emergency Cash Infusion (Loans)
the money promised to Microsoft 'Open' 'AI' failed to arrive
Gemini Links 31/01/2026: Deep Ice and Slide Rules
Links for the day
Writing About Abuse
Never ever allow misogynists to get their way if you strive to live in a decent society
MIT DEDP MicroMasters online learner's blog post about cover-up linked to resignation of Swiss financial regulator
Reprinted with permission from Daniel Pocock
Salary Erosion Procedure (SAP) as the Primary Reason for EPO Strikes
They focus on financials, as the corruption aspects are un-sayable or unspeakable, except in private
IBM Bluewashing: Feels Like IBM is Scuttling Neudesic (and Some of Red Hat)
We recently saw some Red Hat staff joining a Microsoft proxy
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, January 30, 2026
IRC logs for Friday, January 30, 2026
Microsoft Stock Collapsing Due to the Slop Bubble and Microsoft is Hiding Budget 'Black Holes'
Microsoft does not perform like it tells "the media" and "the market"
Gemini Links 30/01/2026: Love and Cultivation, Gemtext Anchors
Links for the day
Will Jim Zemlin Also Sell His Daughter or Only the "Linux" Brand (and Linux Foundation) to Bill Epsteingate?
Torvalds "ate a bug"
The Epstein Files Don't Say the Ages of Those "Russian Girls" Bill Epsteingate Exploited
This E-mail was sent around the time an arrest was made for pedophilia
Only One in 33 EPO Staff Voting on the Strike Opposed It
Kudos to all those who participated in the strike
Still Hoping for "Slop Zero" in 2026
We've also noticed that linuxiac.com shows a glimmer of hope this week
Links 30/01/2026: Waymo Crashing Into 'Small People' (Children), Microsoft at Risk Due to Slop Debt
Links for the day
Amutable’s Management and Founders Are 100% Microsoft!
It'll be focused on promoting Microsoft's agenda in everything it does
IBM Tries to Get Rid of Workers Without Paying Them (and It Appears to be Working)
be sure to speak to people who actually work there
He Has No Money, But He Has Power, He Has a Voice
That's why they envy and attack him
Free Software in Swiss Media This Week
RMS is still going places with his Migros bag (Swiss retail giant)
TV Programs Disseminate False Numbers of Microsoft Layoffs (About 31,000 Laid Off Last Year, Not Including PIPs, Contractors and so on)
large-scale layoffs are inevitable, no matter how long Microsoft delays or procrastinates
Links 30/01/2026: Microsoft's "OpenAI Is Headed For Bankruptcy" and Bitcoin Crashes
Links for the day
Why Would Anybody be Afraid of Talking to Richard Stallman?
We need to get rid of the baseless stigma
Amutable is a Microsoft Proxy Like Xamarin, With Some IBM/Red Hat Staff Added for Good Measure
Amutable chasing money and trying to impose TPM etc. on everybody
The Letter Sent to the Ringleader of the Alicante Mafia This Week
Call for industrial actions to stop the salary erosion of EPO staff
EPO on Strike
organisation operating outside the Rule of Law
Oracle's Debt Exploded by 22 Billion Dollars in 6 Months, the Ponzi Scheme With Scam Altman Was Classic 'Pump and Dump'
The founder of Oracle now uses his wealth for right-wing ideological reasons, nothing else
Facebook ('Meta') is Dead Meat, This GAFAM Company's Debt Exploded by Almost 33 Billion Dollars in Just 3 Months (11 Billion Per Month)
we can expect many sales/contracts to get canceled
Australia's top nurse takes on Musk, Zuckerberg & rogue health influencers, birthkeepers
Reprinted with permission from Daniel Pocock
Affirming What We Already Know: Solicitors Regulation Authority (SRA) is Profoundly Incompetent
"SRA ordered to pay solicitor £50k in costs after failed prosecution"
The "Alicante Mafia" - Part XVI - The Associates of Mr. Cocainegate Don't Want to Talk About Cocainegate (Right of Reply)
Nobody wanted to talk about cocaine at the EPO
The "Open Source" (Corporate Openwashing) Fake Community Rejects Democracy, Open Source Initiative is in Effect Dead
This is basically the end of the OSI
Cracks and Holes in Microsoft's Slop Bubble (Also, Windows is Declining)
"More Bad News For Xbox As Microsoft Blames Gaming For An Annual Decline In Its PC Business"
Microsoft's Debt Exploded by More Than 20 Billion Dollars This Past Year, Says Microsoft
Expect more mass layoffs
Strike at the EPO Today
Next month we'll start a new EPO series
State of the Slop and The Register MS Runs Ads as 'Articles'
Yesterday we could not find much slop about "Linux"
Gemini Links 30/01/2026: Announcing Crossyword and SYN Attack
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, January 29, 2026
IRC logs for Thursday, January 29, 2026