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

01.15.17

Number of New Patent Cases in the US Fell 25% Last Year, Thanks in Part to the Demise of Software Patent Trolls

Posted in America, Courtroom, Patents at 11:29 am by Dr. Roy Schestowitz

The legal paper ‘industry’ is walking away, gradually

Moving paperwork

Summary: Litigation and prosecutions that rely on patents (failure to resolve disputes, e.g. by sharing ideas, out of court) is down very sharply, in part because firms that make nothing at all (just threaten and/or litigate) have been sinking after much-needed reform

IN ORDER to understand what goes on in the mysterious (or cryptic) world of patent trolls we often turn to IAM ‘magazine’, which is paid by some trolls to embellish or soften their image. We read IAM ‘magazine’ very critically and try to extract from it some morsels of information. The other day we saw IAM ‘magazine’ conflating patents with “markets” again, as if patents are products up on the shelf or something (to trolls they are). It was also writing about this patent troll which got fed by Stanford University, whose patents were derived from publicly-funded research. To quote some background to this:

WiLAN has stepped up its campaign against the growing personal digital assistant market filing six lawsuits before and after Christmas against a series of big tech companies including Amazon and HTC over patents that underpin Siri, the popular electronic assistant on Apple devices. The most recent case was filed on Tuesday against ZTE in district court in Delaware, bringing the total number of suits that the NPE’s subsidiary IPA Technologies has filed in this campaign to 11.

WiLAN acquired the patents in question in two tranches, including a package of nine grants in May 2016, from SRI International, a non-profit research institute which spun out of Stanford University more than 40 years ago. SRI began developing the technology for a voice-controlled electronic assistant following a grant from the US Defense Advanced Research Project Agency (DARPA), eventually setting up Siri Inc which was spun out as an independent entity in 2007 and was then bought by Apple in 2010.

We wrote about WiLAN many times before (6 years ago we named the person behind it, Jim Skippen). It’s regarded or understood to have become a pain in the bottom to a lot of Linux/Android OEMs, not just to companies like Apple. It’s a destructive entity which Canada should take shame — not pride — in.

The other day IAM also mentioned RPX, which is a massive troll that Microsoft joined 7 years ago. IAM wrote about it in the context of litigation decline — a subject which we covered here many times in the latter half of 2016. America Invents Act and PTAB had a lot to do with this decline, as IAM admits:

The headline numbers for the 2016 litigation year in the US were out last week and showed a big drop in the total number of new patent infringement cases. According to Unified Patents there were 4,382 new cases, a drop of almost 25% on the 2015 figure. That is the lowest level since 2011 when the America Invents Act (AIA) came into force and new joinder rules had a significant inflationary effect on litigation volume.

RPX also released some stats and included a numbers of interesting data points. Among them was a big fall in the number of NPE campaigns against companies with revenues of $50 billion or more. Those companies are, of course, typically among the most popular targets for licensing efforts but they’re also the ones most likely to fight back in long, drawn-out lawsuits.

RPX basically speaks of itself, as it tends to engulf and attack large entities. After Alice and some of the aforementioned reforms we don’t expect RPX to find quite the same level of ‘success’ (shakedown). In fact, like many other trolls we hope it will cease operations. We know for a fact that Intellectual Ventures is suffering and even laying off a lot of staff.

The patent microcosm, growingly irritated by the sharp drop in litigation, is already sucking up to Donald Trump, hoping that he will put someone corrupt like Randall R. Rader in charge, assuring regressions in law. On the other hand, Matt Levy, who opposes patent maximalism and calls for further patent reforms, has just published these suggestions to the Trump Administration, focusing in particular on patent trolls (a side effect or symptom of low patent quality):

What the new administration should be doing with patents

[...]

Continue to Fight Patent Trolls

It is true that patent troll litigation dropped in 2016, but according to a recent RPX report, nearly all of that drop is due to fewer lawsuits against very large, well-funded companies. Patent trolls seem to be shifting their focus to smaller businesses that can’t afford to defend themselves effectively. Trolls’ venue of choice continues to be the Eastern District of Texas, as I’ve written about a number of times.

A new paper by Brian Love and James Yoon confirms why this is true: patent trolls use the Eastern District of Texas (EDTX) because its procedures increase costs for defendants quickly. In fact, 90 percent of cases there are filed by patent assertion entities. The paper also shows that only 18 percent of EDTX cases have any local link to the original inventor, original patent owner, or the first named defendant. By comparison, nearly 88 percent of the cases filed in the Northern District of California (which includes Silicon Valley) have such a link to the district.

The reality is that we need venue reform. Congress needs to fix the patent venue statute so that patent owners can’t sue a company virtually anywhere. The evidence is simply undeniable that patent trolls are taking advantage of a court with overly friendly rules in order to extort money, and there’s no reason to allow this to continue any longer.

Do No Harm on Patentable Subject Matter

With recent Supreme Court decisions, there has been a lot of handwringing about the patentability of software, diagnostic methods, and certain biotech inventions. There have even been proposals to do away with the patent-eligibility requirement altogether.

Congress needs to let the law develop slowly. The courts are gradually coming to some reasonable interpretations based on previous case law, and that’s as it should be. There are a lot of stakeholders with competing interests, and the best way to develop this law is a bit at a time. Yes, it’s painfully slow, but it’s the way our legal system works.

These calls to “do away with the patent-eligibility requirement altogether,” (or at least weaken them) as Levy puts it, were often funded by companies like IBM and Microsoft, which paid a former USPTO Director (David Kappos) to become their lobbyist and undermine Alice, bringing back software patents in a crooked fashion that’s akin to bribery of officials.

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 22/2/2018: Qt Roadmap for 2018, Calculate Linux 17.12.2

    Links for the day



  2. As Expected, Bristows and Others Already Lying About UPC Status in Germany, But Doing This Anonymously (to Dodge Accountability for Lies)

    In their characteristic fashion, firms that created the UPC for their self-enrichment purposes, along with publishers/writers who deem it their role to promote the UPC and set up lobbying events for the UPC, look for ways to downplay if not intentionally distort what happened in Germany yesterday



  3. Further Attacks on EPO Staff and the Appeal Boards; Former EPO Boards of Appeal Member Speaks About EPO Scandals

    In the process of devaluing EPO workers and perhaps preparing them for a large round of layoffs information is also revealed about further repressions against the independence of the Boards of Appeal



  4. End of the UPC Lobby and Withdrawal of UPCA May Seem Imminent

    The Unitary Patent fantasy (of mass litigation firms) is coming to an end; in fact, the German government and courts (Bundesverfassungsgericht to be specific) now deem the complaint to be admissible and thus likely legitimate in spite of many attempts to shoot it down



  5. EPO's Board 28 Spikes Article 53 in CA/3/18, Apparently After Battistelli Withdrew It

    The latest plot twist, as odd as that may seem, is that the attack on the rights of thousands of workers (many of whom are rumoured to be on their way out) is curtailed somewhat, at least for the time being



  6. Links 21/2/2018: Apper 1.0, New Fedora ISOs

    Links for the day



  7. Rumour: European Patent Office to Lay Off a Significant Proportion of Its Workforce

    While the Administrative Council of the EPO praises Battistelli for his financial accomplishments (as laughable as it may seem) a lot of families stuck in a foreign country may soon see their breadwinner unemployed, according to rumours



  8. The Patent Trolls' Lobby, Bristows and IAM Among Others, Downplays Darts-IP/IP2Innovate Report About Rising If Not Soaring Troll Activity in Europe

    Exactly like last year, as soon as IP2Innovate opens its mouth Bristows and IAM go into "attack dog" mode and promote the UPC, deny the existence or seriousness of patent trolls, and promote their nefarious, trolls-funded agenda



  9. Links 20/2/2018: Mesa 17.3.5, Qt 5.11 Alpha, Absolute 15.0 Beta 4, Sailfish OS 2.1.4 E.A., SuiteCRM 7.10

    Links for the day



  10. Replacing Patent Sharks/Trolls and the Patent Mafia With 'Icons' Like Thomas Edison

    The popular perceptions of patents and the sobering reality of what patents (more so nowadays) mean to actual inventors who aren't associated with global behemoths such as IBM or Siemens



  11. The Patent Trolls' Lobby is Distorting the Record of CAFC on PTAB

    The Court of Appeals for the Federal Circuit (CAFC), which deals with appeals from PTAB, has been issuing many decisions in favour of § 101, but those aren't being talked about or emphasised by the patent 'industry'



  12. Japan Demonstrates Sanity on SEP Policy While US Patent Policy is Influenced by Lobbyists

    Japan's commendable response to a classic pattern of patent misuse; US patent policy is still being subjected to never-ending intervention and there is now a lobbyist in charge of antitrust matters and a lawyer in charge of the US patent office (both Trump appointees)



  13. The Patent Microcosm's Embrace of Buzzwords and False Marketing Strives to Make Patent Examiners Redundant and Patent Quality Extremely Low

    Patent maximalists, who are profiting from abundance of low-quality patents (and frivolous lawsuits/legal threats these can entail), are riding the hype wave and participating in the rush to put patent systems at the hands of machines



  14. Today, at 12:30 CET, Bavarian State Parliament Will Speak About EPO Abuses (Updated)

    The politicians of Bavaria are prepared to wrestle with some serious questions about the illegality of the EPO's actions and what that may mean to constitutional aspects of German law



  15. Another Loud Warning From EPO Workers About the Decline of Patent Quality

    Yet more patent quality warnings are being issued by EPO insiders (examiners) who are seeing their senior colleagues vanishing and wonder what will be left of their employer



  16. Links 19/2/2018: Linux 4.16 RC2, Nintendo Switch Now Full-fledged GNU/Linux

    Links for the day



  17. PTAB Continues to Invalidate a Lot of Software Patents and to Stop Patent Examiners From Issuing Them

    Erasure of software patents by the Patent Trial and Appeal Board (PTAB) carries on unabated in spite of attempts to cause controversy and disdain towards PTAB



  18. The Patent 'Industry' Likes to Mention Berkheimer and Aatrix to Give the Mere Impression of Section 101/Alice Weakness

    Contrary to what patent maximalists keep saying about Berkheimer and Aatrix (two decisions of the Federal Circuit from earlier this month, both dealing with Alice-type challenges), neither actually changed anything in any substantial way



  19. Makan Delrahim is Wrong; Patents Are a Major Antitrust Problem, Sometimes Disguised Using Trolls Somewhere Like the Eastern District of Texas

    Debates and open disagreements over the stance of the lobbyist who is the current United States Assistant Attorney General for the Antitrust Division



  20. Patent Trolls Watch: Microsoft-Connected Intellectual Ventures, Finjan, and Rumour of Technicolor-InterDigital Buyout

    Connections between various patent trolls and some patent troll statistics which have been circulated lately



  21. Software Patents Trickle in After § 101/Alice, But Courts Would Not Honour Them Anyway

    The dawn of § 101/Alice, which in principle eliminates almost every software patent, means that applicants find themselves having to utilise loopholes to fool examiners, but that's unlikely to impress judges (if they ever come to assessing these patents)



  22. In Aatrix v Green Shades the Court is Not Tolerating Software Patents But Merely Inquires/Wonders Whether the Patents at Hand Are Abstract

    Aatrix alleges patent infringement by Green Shades, but whether the patents at hand are abstract or not remains to be seen; this is not what patent maximalists claim it to be ("A Valentine for Software Patent Owners" or "valentine for patentee")



  23. An Indoctrinated Minority is Maintaining the Illusion That Patent Policy is to Blame for All or Most Problems of the United States

    The zealots who want to patent everything under the Sun and sue everyone under the Sun blame nations in the east (where the Sun rises) for all their misfortunes; this has reached somewhat ludicrous levels



  24. Berkheimer Decision is Still Being Spun by the Anti-Section 101/Alice Lobby

    12 days after Berkheimer v HP Inc. the patent maximalists continue to paint this decision as a game changer with regards to patent scope; the reality, however, is that this decision will soon be forgotten about and will have no substantial effect on either PTAB or Alice (because it's about neither of these)



  25. Academic Patent Immunity is Laughable and Academics Are Influenced by Corporate Money (for Steering Patent Agenda)

    Universities appear to have become battlegrounds in the war between practicing entities and a bunch of parasites who make a living out of litigation and patent bubbles



  26. UPC Optimism Languishes Even Among Paid UPC Propagandists Such as IAM

    Even voices which are attempting to give UPC momentum that it clearly lacks admit that things aren't looking well; the UK is not ratifying and Germany make take years to look into constitutional barriers



  27. Bejin Bieneman Props Up the Disgraced Randall Rader for Litigation Agenda

    Randall Rader keeps hanging out with the litigation 'industry' -- the very same 'industry' which he served in a closeted fashion when he was Chief Judge of the Federal Circuit (and vocal proponent of software patents, patent trolls and so on)



  28. With Stambler v Mastercard, Patent Maximalists Are Hoping to Prop Up Software Patents and Damage PTAB

    The patent 'industry' is hoping to persuade the highest US court to weaken the Patent Trial and Appeal Board (PTAB), for PTAB is making patent lawsuits a lot harder and raises the threshold for patent eligibility



  29. Apple Discovers That Its Patent Disputes Are a Losing Battle Which Only Lawyers Win (Profit From)

    By pouring a lot of money and energy into the 'litigation card' Apple lost focus and it's also losing some key cases, as its patents are simply not strong enough



  30. The Patent Microcosm Takes Berkheimer v HP Out of Context to Pretend PTAB Disregards Fact-Finding Process

    In view or in light of a recent decision (excerpt above), patent maximalists who are afraid of the Patent Trial and Appeal Board (PTAB) try to paint it as inherently unjust and uncaring for facts


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