06.19.16

How the Halo Electronics Case Helps Patent Trolls and How Publications Funded by Patent Trolls (IAM for Instance) Covered This

Posted in America, Courtroom, LG, Patents, Samsung at 10:27 am by Dr. Roy Schestowitz

Halo as a sanctuary for patent trolls

Halo

Summary: A Supreme Court ruling on patents, its implications for software patent trolls, and how media that is promoting software patents and patent trolls covered it

THE dishonest/self-serving patent lawyers in the US might never openly admit this, but software patents are dying not only in US courts and PTAB but also, increasingly, at the USPTO. This does not necessarily solve the problem of patent trolls because trolls tend to go after small companies that have neither the will nor the budget to invalidate the asserted patents, e.g. by going to court.

“Court rulings like this,” say anti-trolls lobbyists, “make it much more urgent for Congress to pass patent litigation reform legislation this year” (they probably allude to the VENUE Act or the likes of it).

“This does not necessarily solve the problem of patent trolls because trolls tend to go after small companies that have neither the will nor the budget to invalidate the asserted patents, e.g. by going to court.”“Supreme Court Ruling in Halo/Stryker Case Will Lead to More Lawsuits from Patent Trolls, More Forum Shopping by Repeat Plaintiffs,” says the accompanying PDF. “Ruling Gives Small Businesses Less Incentive to Fight Meritless Suits,” says the second line. This is correct as it’s already far too expensive and laborious. The smaller the company, the more likely it is to just pay ‘protection money’ (extortion) because the ratio between the ‘damages’ and the legal costs in a court makes it the ‘correct’ business choice.

Suppose for a moment that patent trolls don’t get granted (or get to buy) the patents they use. The proposed reform legislation does not actually tackle software patents. The subject is not even on the agenda and that’s a problem. As long as software patents can land on the lap of patent trolls, these are guaranteed to be misused. Natalie Rahhal of MIP wrote about the same decision (Halo/Stryker case) as follows: “The Supreme Court decided both Halo Electronics, Inc v Pulse Electronics, Inc, et al and Stryker Corporation, et al v Zimmer, Inc, et al on Monday, in a decision that significantly lowered the bar for the issuance of enhanced damages in a patent infringement case.

“Gene the WatchTroll (or “Watchdog” as he prefers to think of himself) is so upset that judges are doing their job and eliminating software patents (after SCOTUS Justices ruled on the matter) that he shamelessly exploits these latest developments to assert Justices are writing legislation (untrue).”“Enhanced damages are set out by Section 284 of the Patent Act and allow the Court to award a patent owner up to three times the amount of the damages found, if the jury or the court determines that the infringement was wilful.”

Gene the WatchTroll (or “Watchdog” as he prefers to think of himself) is so upset that judges are doing their job and eliminating software patents (after SCOTUS Justices ruled on the matter) that he shamelessly exploits these latest developments to assert Justices are writing legislation (untrue). In our previous post we showed how he had exploited the Halo/Stryker case to accuse Justices of ignorance and here he is saying that §101 (Alice) is “overused”:

It seems as though once the court realized the claimed invention related to software, it pulled out its §101 goggles and ignored any other grounds for patent invalidity. Such an analysis, which pushes decision-making into 101, which is ill-suited to be used as such a brute force instrument, has perplexed and frustrated patent practitioners. Courts, including the Federal Circuit, simply disregard the other sections of the Patent Act in favor of §101, which for them is easier and leads to decision-making without the need of discovery and without presuming the issued patent is valid.

With or without Halo/Stryker, with or without Enfish, §101 still stands and it will continue to demolish software patents by the thousands (those that reach PTAB and the courts anyway). One can be sure that patent lawyers will keep saying “Halo” and “Enfish” any time they wish to defend trolls and software patents. Joff Wild, for a change, says the T word (“Trolls”) in his article about Halo (a case which we first mentioned here last week) and here is his opening paragraph: “There have already been plenty of articles written about the Supreme Court’s decision in Halo v Pulse, which was handed down yesterday. As is usual in cases where they review the work of the Federal Circuit, the court’s justices have decided that its practices are wrong. This time, it’s the approach that the CAFC has towards determining wilful infringement – it’s too rigid and lets too many potentially very badly behaved defendants off the hook. Instead, the Supreme Court has stated, judges should have a lot more discretion in deciding when a defendant’s behaviour has been so egregious that it deserves the sanction of triple damages.”

“With or without Halo/Stryker, with or without Enfish, §101 still stands and it will continue to demolish software patents by the thousands (those that reach PTAB and the courts anyway).”Expect this to be used to discredit §101 and defend patent trolls. Now that Ericsson’s patent trolls (in Europe) are about get ‘scooped up’ IAM celebrates and as another major lawsuit comes to light IAM says: “Earlier this week an entity called Global Equity Management (GEMSA) filed lawsuits against 20 separate operating companies including Spotify, Netflix and Uber over the alleged infringement of two patents. All of the suits were filed in the Eastern District of Texas.”

That’s just a patent troll in the Eastern District of Texas, as usual. “US Pat 6,690,400, Asserted Against Amazon Web Service Users,” Patent Buddy wrote, adding some of his information about the patent. Apparently that’s just fine with Wild and his colleagues, whose employer received money from patent trolls. This EPO‘s mouthpiece, IAM ‘magazine’, still treats the world's largest patent troll (and Microsoft-connected troll) like some kind of heroic entity that people ought to emulate. Last week it continued to groom this patent troll, Intellectual Ventures. They almost do public relations, having spoken directly to the company’s executives last month (the editor in chief did, the trolls denialist).

“It doesn’t seem to bother Congress enough. Why not? Follow the money.”Perhaps the saddest thing in it all is that most voices that weighed in on the latter (and we were able to find) treated a win for patent trolls as some kind of fantastic ruling from SCOTUS, except perhaps TechDirt with this article titled “Supreme Court Just Made It Easier For Patent Trolls”.

To quote TechDirt: “As we’ve noted over the past decade or so, the Supreme Court has been smacking down the Court of Appeals of the Federal Circuit (CAFC) over and over and over again on issues related to patent law. And on Monday, the Supreme Court did it once again — but this time in a way that actually might not be good.”

The analysis ends with: “At the very least, this seems like an argument for Congress to finally stop sitting around and doing something to fix the patent troll problem.”

It doesn’t seem to bother Congress enough. Why not? Follow the money. Why is IAM so soft on trolls? Again, follow the money.

We could say a lot more about IAM’s sheer bias. Consider its latest coverage from Asia. IAM, as usual, misses the point. LG and Samsung are absolutely massive companies (almost part of the nation itself, including the military in fact); they are the exception, not the norm, when it comes to the number of patents. IAM says “Korean companies own some of the world’s largest patent portfolios, including of course the single biggest stockpile of US grants – by some margin – which belongs to Samsung Electronics.” But IAM does not mention that this is pretty much limited to just two companies. Regarding Japan, which has a lot more than just two or three giant technology companies, IAM suggests some kind of patent liquidation. Notice how they ascribe or use the word “asset” to refer to a patent (the A in IAM is “asset”), as if it’s some kind of physical object. Euphemisms are everywhere at IAM. It’s lobbying disguised as news.

Share in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email

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 27/11/2020: Jolla is 7, Diffoscope 162, MNT Reform Production

    Links for the day



  2. The Time Coronavirus Helped EPO Management Prevent Staff From Protesting and Going on Strike (March 26th)

    "In view of the spreading of the New Corona Virus, the planned General Assemblies have to be cancelled," the Staff Union of the European Patent Office (SUEPO) wrote in the wake of the crisis across Europe back in March (weeks ahead of a planned strike)



  3. Guarding Your Privacy With E2EE: Primer

    "As with all security, there is assumed risk no matter how careful you are. There are no security guarantees but that doesn't mean you shouldn't try."



  4. Links 27/11/2020: Systemd 247 and Cockpit 233

    Links for the day



  5. A Free Speech Deficit Harms Software Freedom

    Free software and Software Freedom cannot possibly succeed if we keep accepting or even just tolerating systematic censorship of opinionated people in our community; failing to speak out on this matter (for fear of supposedly offending someone, risking expulsion) is part of the problem — complicity by passivity



  6. Perception of Difficulty

    New poem by figosdev



  7. IRC Proceedings: Thursday, November 26, 2020

    IRC logs for Thursday, November 26, 2020



  8. Cartoon: After Gambling With Workers' Savings the EPO Can Do Real Estate

    New EPO cartoon from EPO insiders (the one on the right certainly looks a lot like António Campinos and the one on the left can be his EUIPO ‘import’ or Benoît Battistelli‘s INPI ‘import’)



  9. Free as in Freedom Should Not be Associated With Cost

    It's important to remind people that so-called 'free' services (Clown Computing, centralised spaces that 'farm' their so-called 'users') aren't really free; we need to advocate freedom or free-as-in-freedom alternatives



  10. [Meme] UPC's Pyrrhic Victory

    Contrary to what Team UPC says, what happened earlier today is hardly a breakthrough



  11. Many Thanks to Free Software, the Demise of Software Patents (in Europe and the US), and So Much More

    On a positive note we're heading into the end of November, one month before Boxing Day; we take stock of patent affairs that impact software developers



  12. Links 26/11/2020: PHP 8.0, Proxmox VE 6.3, UNIGINE 2.13

    Links for the day



  13. 29,000 Blog Posts and Recent Site Improvements

    Over 29,000 blog posts have been posted here, but more importantly we've made the site a lot more robust and resilient, accessible in more formats and protocols (while improving transparency, too)



  14. [Meme] Trump is Out. Now It's Time to Pressure the Biden Administration/Transition Team on Software Freedom Issues.

    The Biden transition is in motion and tentative appointments are underway, based on news reports (see our Daily Links); now is the time to put pressure, e.g. in the form of public backlash, to ensure it's not just another corporate presidency



  15. Boycott ZDNet Unless You Fancy Being Lied to

    ZDNet's Catalin Cimpanu continues to lead the way with misinformation and lies, basically doing whatever he was doing to land that job at ZDNet (after he had done the same elsewhere)



  16. The UPC and Unitary Patent Song

    On goes the UPC symphony, as the Unified Patent Court (UPC) is almost here, always coming "real soon!"



  17. Open Letter to the German Greens on UPC and Software Patents: Don’t Betray Your Voters and Your Promises, or You Will Regret it

    Dear Members of the German Greens in the Bundestag. By Benjamin HENRION.



  18. [Meme] One Step Away From Replacing Patent Examiners With 'Hey Hi' (AI)

    If it's not legal for 'Hey Hi' (AI) to get a patent, why should it be legal for patents to be granted by those who are invisible (and sometimes in de facto house arrest)?



  19. European Patent Office (EPO) Reduced to 'Justice Over the Telephone' and Decree by E-mail

    The EPO is trashing the EPC and everything that the Office was supposed to stand for, as it wrongly assumes demand for monopolies (typically from foreign corporations) comes before the rule of law and Europe's public interest



  20. Making Free Software Work for Users

    The latest reply to a non-developer concerned about software freedom; guest post by figosdev



  21. IRC Proceedings: Wednesday, November 25, 2020

    IRC logs for Wednesday, November 25, 2020



  22. Links 26/11/2020: AV Linux 2020.11.23 and Blender 2.91 Release

    Links for the day



  23. Links 25/11/2020: GamerOS and Biden Transition in Motion

    Links for the day



  24. An Orwellian December

    With December around the corner and states tightening the screws on the population (or employers on employees) at least we can look forward to spring



  25. The Non-Technical (or Lesser Technical) Software User That Wants Software Freedom

    Assuming that Free software should care about what users — not only developers — really want (and need) it’s important to understand how they view the current situation (with growing waves of corporate takeover and compromises, even expulsions)



  26. The European Patent Office Should be Run by Patent Examiners (Scientists), Not Politicians

    Europe would be better off (and patent quality much improved) had people with an actual grasp of science and reality were in charge of the EPO, not a money-chasing kakistocracy (which is what we have now)



  27. Member of the EPO's Boards of Appeal Explains Why VICOs (or ViCo/Video Conferences/Virtual 'Hearings') Are Not Suitable for Justice

    It's interesting to hear (or see/read) what people inside the EPO have to say about the "new normal" when they enjoy a certain level of anonymity (to avert retribution)



  28. Open Source Initiative (OSI) Co-founder Bruce Perens: Open Invention Network (OIN) is Protecting the Software Patent System From Reform and OSI Approves Faux 'Open' Licences (Openwashing)

    Richard Stallman was right about the OSI and the fake 'movement' that claims to have 'coined' the term "Open Source" (it wasn't a new term at all; it had been used in another context and the Free software community spoke of things like "Open Hardware" years earlier)



  29. IRC Proceedings: Tuesday, November 24, 2020

    IRC logs for Tuesday, November 24, 2020



  30. Making JavaScript Suck Less

    "Other than that, the first rule of JavaScript is: Do not use JavaScript. But this article is for people who break the first rule."


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

Recent Posts