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

09.11.16

The Patent Microcosm is Losing the Fight Over Software Patenting and Now It Plays Dirty

Posted in America, Courtroom, Patents at 8:50 am by Dr. Roy Schestowitz

Camp collection

Summary: New evidence suggests that software patents continue their plunge in the United States and those who make money from software patents cannot help shooting the messengers (in the media) and smearing those who simply do their job by applying the criteria agreed upon by the US Supreme Court

TECHRIGHTS has been watching very closely matters pertaining to software patents for about a decade (I’ve watched them much longer than that, predating this site’s existence). After so much activism we finally see tremendous progress; they’re dropping like flies and litigation involving software patents is so uncertain (for the plaintiff who takes a huge risk) that numbers indicate a sharp decline if not dampening. Only a fool would spend money pursuing new software patents; reckless patent holders would dare have them subjected to scrutiny by a court (the higher the court, the higher the risk, thus suing deep-pocketed players is riskiest).

“The number of some types of software patent lawsuits in the US has taken a nosedive since the 2014 decision in Alice v CLS Bank.”
      –WIPR
the numbers are on our side. As WIPR put it the other day (note the use of the word nosedive): “The number of some types of software patent lawsuits in the US has taken a nosedive since the 2014 decision in Alice v CLS Bank.

“This is the finding of Patexia, an online patent research platform, which reported that software patent suits have declined heavily, although the fall was not equal across all software patent classification codes.

“Patexia identified 14 different US classes that describe some sort of software-related system or process.

“Patexia identified 14 different US classes that describe some sort of software-related system or process.”
      –WIPR
“These classes covered more than 14% of the 22,791 unique patents involved in patent suits from 2010 through to the first half of 2016.”

We are pleased to see that even insiders, such as Patexia, recognise the trend and write about it. Patent law firms prefer not to talk about it because it discourages their clients (or prospective/possible clients). Writing for “Canadian Lawyer Magazine”, one person gave 10 reasons you need a Canadian Lawyer (the real headline is “Ten reasons you need a Canadian patent”). This is an example of marketing/advertising in the form of an “article”. To quote from this — cough — article: “You may have heard that it’s not worthwhile to patent your company’s technology in Canada, with its smaller market, its conservative judicial remedies and its skepticism toward software-based patents.”

Well, recall i4i v Microsoft (Canadian company) and how things worked out [1, 2, 3, 4, 5]. They pretty much risked going out of business after wasting years in court bickering over software patents. They still have a Web site which is active (last news item was a week ago), but we have not seen them in the media for literally more than half a decade. Recently, another Canadian company chose to turn into a patent troll down in Texas. This failing company, falling back on its patents, is Blackberry. How has it worked out so far? Any better than Nokia, which is still arming patent trolls in pursuit of cash? A lot of these patents are totally worthless, more so after Alice (Nokia — or Symbian at the time — had a famous software patent case in the UK nearly a decade ago).

“A lot of these patents are totally worthless, more so after Alice (Nokia — or Symbian at the time — had a famous software patent case in the UK nearly a decade ago).”Lexology, a site for lawyers, has just reposted (verbatim) an analysis from Fenwick & West LLP. It’s an analysis which we mentioned and also cited here the other day, showing a trend of invalidation of software patents in the US. It’s not looking good for software patents and it’s not getting any better, irrespective of what patent law firms are trying to tell us (by blatantly selective coverage of events or overt cherry-picking).

Dealing with a particular CAFC case, a pro-software patents propaganda site (for a long time) says it’s “keenly awaited” (by the vultures maybe) and that it relates to Alice. Expect it to change nothing at all, even if it somehow ends up in favour of a software patent (like in Enfish). CAFC rules against software patents around 90% of the time, so there’s probably no more of Enfish in the pipeline. Two years and about 3 months after Alice it’s effectively the end of software patents in the United States. Wait and watch how patent law firms (and their media mouthpieces) continue to deny this, hoping to convince the readers (or clients) that all is “business as usual…”

It’s not.

“It’s not looking good for software patents and it’s not getting any better, irrespective of what patent law firms are trying to tell us (by blatantly selective coverage of events or overt cherry-picking)”When pro-software patents propaganda Web sites want to undermine the importance/relevance of Alice they typically resort to insulting those who apply Alice (even judges are insulted!). To quote IAM: “In December last year the Court of Appeals for the Federal Circuit heard oral arguments in McRO Inc., DBA Planet Blue v Bandai Namco Games America et al, a case that many, particularly in the software industry, hoped would bring some much needed clarity to the issue of subject matter eligibility.”

Nonsense. It has nothing to do with clarify, that’s just what lobbyists for software patents — people like David Kappos — like to say while they simply object to Alice and the Justices at the Supreme Court. Oh, the vanity!

To quote further from IAM: “As with any 101 case, in the McRO suit there’s not only the matter of the law but also of the Federal Circuit’s complicated relationship with the Supreme Court. A string of decisions from SCOTUS, which have reversed the lower court, has helped create much of the uncertainty around patent eligible subject matter. According to former CAFC Chief Judge, Paul Michel, the stark divisions that have clearly arisen between members of the judiciary, might be the reason for the delay in the McRO decision.”

“When pro-software patents propaganda Web sites want to undermine the importance/relevance of Alice they typically resort to insulting those who apply Alice (even judges are insulted!).”That’s another pattern of FUD we have come across. Proponents of software patents like to scandalise the status quo and pretend there is a fight — if not actually ignite one — between different divisions, courts, boards, etc. It’s typically a fictitious framing that seeks to discredit the system and shake/destablise Alice, making it seem too “controversial” a decision to refer to/cite as precedent.

These software patents proponents, usually patent law firms that never wrote any software, are actively trying to undermine the US Supreme Court. Shame on them for doing that. Watchtroll, with its big mouth, is attacking PTAB again (it won’t stop until they’re gone). They’re like a gang of hyenas. Writing about PTAB, MIP has two more articles on the latest trends. One is titled “Don’t Estop Me Now” and the latter is a subtle attempt to discredit PTAB by associating it with “patent trolls” (again, total fiction!). Making money by trashing patents granted in error by the USPTO (for quick monetary gains) does not make one a “patent troll” and it has nothing whatsoever to do with the definition of “patent troll”. Watch this headline, “Hedge funds and reverse patent trolls” (nothing to do with trolls).

“These software patents proponents, usually patent law firms that never wrote any software, are actively trying to undermine the US Supreme Court.”To quote MIP: “A big story last year was the emergence of hedge funds and other entities using the Patent Trial and Appeal Board. While Kyle Bass is seeing his IPRs through to final decision, other entities are acting as reverse patent trolls, a phenomenon that is predicted to gather pace” (again, nothing to do with trolls and probably a good thing that will compel the USPTO to do its job properly).

Patent lawyers and their mouthpieces reject the term "patent troll" (denying such a problem exists, a lot like those denying global warming), but suddenly, when someone kills bad patents, then they adopt the term and call the actors that. How pathetic and self-serving. Fish & Richardson P.C., which represents patent trolls, pretends patent trolling is all just a myth (published almost a decade ago, but revisited now via Patent Buddy, who is a pro-software patents attorney). To quote the author from Fish & Richardson: “A new breed of companies has emerged, and they are being called patent trolls. A patent troll is a person or entity who acquires ownership of a patent without the intention of actually using it to produce a product. Instead, it licenses the technology to an entity that will incorporate the patent into a product, or it sues an entity it believes has already incorporated the technology in a product without permission. The government, corporate America, and the media are fervently acting against these trolls. New proposed legislation, a blizzard of Supreme Court cases involving trolls, and endless newspaper and magazine articles are all trumpeting the same story line: Patent trolls are bad for society and must be stopped.”

Well, that is very different from those who use IPRs at PTAB to correct the USPTO’s errors (spurious granting of patents). But this kind of distortion of terminology certainly would not bother those with dishonest agenda.

“Put another way, they’re protesting against PTAB because to them — the patent microcosm — less litigation would be a corporate disaster (litigation is their most expensive product, whether as defendants or plaintiffs).”AIA (Leahy-Smith America Invents Act) gave us PTAB, which demolishes software patents by the thousands, so now it’s considered “trolling” to apply quality control to patents and prevent these from going to court? Here is a new Bloomberg piece (titled “Five Years In: The AIA’s Effects on Patent Litigation (Perspective)”) in which it’s stated upfront that “The authors are IP lawyers at a large law firm.” The article is by Daniel Zeilberger, Michael Stramiello, Joseph Palys, and Naveen Modi from Paul Hastings LLP. Their conclusion is as follows: “AIA-created post-grant proceedings are changing the landscape of patent litigation. Complaints and declaratory judgment actions are down. Potential cost savings for accused infringers are huge. And PTAB outcomes historically disfavor patent owners, who have appeared willing to settle a large percentage of disputes. It remains to be seen whether these trends will continue as PTAB practice evolves, guided by an expanding body of caselaw and potential legislative tweaks.”

Put another way, they’re protesting against PTAB because to them — the patent microcosm — less litigation would be a corporate disaster (litigation is their most expensive product, whether as defendants or plaintiffs). They might actually have to find another job — one in which they produce something other than paperwork for monopoly and litigation. One thing we have noticed is, the authors of pro-software patenting pieces are sometimes choosing to write anonymously. Apparently they’re too shamed of their self-serving lies that they want to hide behind pseudonyms or no name/s at all.

Expect more attacks on PTAB (which needs to be defended from them) and expect a lot more attacks on Alice. These attacks typically come from patent bullies, their lobbyists, and their law firms. “A decade of court decisions has shaken the basis of patent law,” says this new article, sending across the message that this is terrible news when fewer cases go to court. To quote:

Earlier this summer, the U.S. Supreme Court made it easier for patent holders to seek larger damage awards when their patents are infringed.

For patent watchers, however, the high court’s ruling was only just the latest in a particularly active decade of major patent litigation.

Beginning in 2006, the Supreme Court ruled that holders who license their patents cannot win an injunction to stop third parties from infringing on their patent. That lawsuit, eBay v. MercExchange, L.L.C., changed the way patent lawsuits could be waged, altering incentives along the way.

“eBay substantially changed the world of patent litigation by limiting almost every verdict solely to monetary damages,” Robert W. Morris and Michael R. Jones, attorneys at Eckert Seamans Cherin & Mellott L.L.C., wrote in March.

[...]

“The effect is harshest on individuals and smaller businesses that depend on the value of intellectual property for their livelihoods; these are the same inventors that have, for decades, produced many of our greatest technological advances,” MCM argues.

That last part promotes a myth, unless they speak of patent trolls. Those who benefit the most from the status quo are patent bullies like IBM and the only small entities to also benefit (as a side effect) are trolls, not startups that actually produce things.

“We hope that more people will recognise the problem with software patents and react accordingly.”In the area of militarism, arms manufacturers (or war contractors) have taken over the system and became a burden (or a parasite) inside it. The same goes for the area of patent, but the products are patents and lawsuits rather than weapons and wars. We hope that more people will recognise the problem with software patents and react accordingly.

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. Red Hat's Freedom Reduced to Just Online Partner Enablement Network (OPEN) and Microsoft as a Close Partner; Canonical's Ubuntu Just an 'App' for Windows?

    Free software is being snapped up by proprietary software giants and patent bullies that treat it as little more than an 'add-on' for their proprietary offerings



  2. Linux Foundation Apparently Celebrates Sysadmin Day With a Microsoft Windows Site!

    The Linux Foundation shows ‘love’ to actual GNU/Linux (the real thing) by apparently rejecting it and badmouthing it



  3. EPO Looney Tunes – Part 3: The Legal Line-up for G 2/19

    The deck appears to have already been stacked for G 2/19, a decision on EPO judges' exile to Haar (veiled disciplinary action/collective punishment by those whom the judges are supposed to 'oversee')



  4. Links 17/7/2019: VirtualBox 6.0.10 and Mageia 7.1 Releases, Mint Betas

    Links for the day



  5. Links 16/7/2019: Btrfs Gets 'Cleaned Up', Clonezilla Live 2.6.2-15

    Links for the day



  6. EPO Looney Tunes - Part 2: The “Difficult Legacy” and Its Dark Historical Shadow

    Assuming that he was informed, then it seems fair to say that Battistell’s little “joke” at the expense of the Boards was in very bad taste



  7. EPO Noise Machine Turned On as Haar Hearing Kicks Off, Patrick Corcoran Defamed Again

    The EPO does not want people to hear about Haar; it just wants people to hear about how wonderful the EPO is and there are some who have just decided to slander Patrick Corcoran again



  8. Microsoft is 'Doing Kamikaze' (神風) on Linux

    An analogy for what the Linux (only in name!) Foundation and Microsoft mean to Linux — or by extension to GNU/Linux and Free software whose largest repository Microsoft took control of



  9. The 'New' Linux.com Sometimes Feels Like a Microsoft Promotion Site

    Anything that the ‘Linux’ Foundation touches seems to turn into its proprietors’ agenda; one of those proprietors is Microsoft, which has a "Jihad" against Linux



  10. IBM is a Threat to the Internet, Not Just to Software Development (Due to Software Patents Aggression)

    IBM continues its aggression against technology — a fact that’s even more distressing now that IBM calls the shots at Red Hat



  11. EPO Looney Tunes - Part 1: Is D-Day Approaching for Battistelli’s “Difficult Legacy”?

    European patent justice isn’t working within the premises of EPOnia; a bunch of ‘show trials’ may in fact turn out to be just that — a show



  12. Links 16/7/2019: LXD 3.15, Q4OS 3.8 and D9VK 0.13f

    Links for the day



  13. Links 15/7/2019: Vulkan 1.1.115 and Facebook Openwashing

    Links for the day



  14. Microsoft Office 360 Banned

    OpenDocument Format (ODF, a real standard everyone can implement) and Free/libre software should be taught in schools; it's not supposed to be just a matter of privacy



  15. Microsoft, in Its Own Words...

    Sociopathy, incompetence and intolerance of the rule of law, as demonstrated by Microsoft's top managers



  16. Microsoft's WSL is Designed to Weaken GNU/Linux (on the Desktop/Laptop) and Strengthen Vista 10

    What Microsoft does to GNU/Linux on the desktop (and/or laptop) bears much resemblance to what Microsoft did to Java a couple of decades ago



  17. Links 14/7/2019: Linux 5.2.1, Unreal Engine 4.23 Preview, Linux Mint 19.2 Beta

    Links for the day



  18. 25,500 Blog Posts and Pages

    With our thirteenth anniversary just a few months away we're at a pace of about 2,000 posts per year



  19. With WSL Microsoft is Doing to GNU/Linux What It Did to Netscape

    Embrace, extend, extinguish. Some things never really change even if they become an old and repetitive accusation.



  20. Allowing Bad Guests to Become the Hosts

    Why the so-called 'Linux Foundation', a nonprofit that acts more like a PAC controlled by proprietary software companies and people who don't even use Linux, is increasingly becoming a Linux-hostile front group



  21. Honesty and Collaboration Make Free Software Stronger, Microsoft is Inherently a Misfit

    In spite of all the lies Microsoft and its Web sites spew out on a daily basis, nothing has really changed and Microsoft is still attacking Software Freedom (mostly from the inside nowadays, helped by FUD proxies such as WhiteSource and Snyk)



  22. Patent Certainty Waning, But That's Still OK for Patent Trolls

    Patent maximalism remains a threat to everyone but patent lawyers (and patent office chiefs who measure their own performance only by the number of patents granted); best served are the patent trolls who extrajudicially attack already-impoverished parties behind closed doors



  23. GitHub is Microsoft's Proprietary Software and Centralised (Monopoly) Platform, But When Canonical's Account There Gets Compromised Suddenly It's Ubuntu's Fault?

    Typical media distortions and signs that Microsoft already uses GitHub for censorship of Free/Open Source software that does not fit Microsoft's interests



  24. Canonical is Turning Ubuntu Into a More Proprietary Deviant of GNU/Linux

    Ubuntu is becoming more 'Ubinary'; binaries without their source code available are packed up and cooked up for (or baked into) the ISO; this may be good for widespread adoption, but it's not an advancement of freedom, a capitulation rather



  25. Links 13/7/2019: Librem 5 July Update, Project Trident 19.07, KDE Frameworks 5.60.0

    Links for the day



  26. The Problem Isn't Women or Minorities in Free Software But Particular Corporations That Exploit or Steer or Hijack Their Agenda

    If technical issues are being disguised using colours and genders (among other things), then it's important to highlight who's behind it (what company/ies) rather than fling back insults at people because it makes things worse



  27. There's No Such Thing as Cloud Computing, Serverless and All That Other Nonsense

    Buzzwords. Confronted.



  28. Linux is Doing 'Well' Only for Those Who Dislike Software Freedom and Love Control Over Users

    Linux, the kernel, has become a corporate playground or a sandbox that's used to upsell proprietary software, including surveillance; freedom in Linux is gradually being diminished if not completely obliterated and it does not worry the foundations entrusted to guard against it



  29. Consultation About Direction and Future Focus for Techrights

    We invite ideas and recommendations for the future of the site, notably which topics and aspects are worth covering as a matter of higher priority



  30. European Media Continues to Ignore the EPO Crisis While Law Firms and EPO Management Cover Things Up

    The EPO crisis silently deepens because serious problems are lied about, not acknowledged, and the legitimacy of European Patents is greatly diminished, not to mention the EPO's ability to attract talent


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