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

04.17.17

Patents Roundup: Microsoft, Embargo, Tax Evasion, Surveillance, and Censorship

Posted in America, Antitrust, Microsoft, Patents at 2:03 am by Dr. Roy Schestowitz

All the ‘great’ things that patent maximalism (insatiable appetite for more and more patents) has given society

Big appetite

Summary: An excess of patents and their overutilisation for purposes other than innovation (or dissemination of knowledge) means that society has much to lose, sometimes more than there is to gain

THE FOLLOWING potpourri of news spans a period of about 2 weeks. It hasn’t quite fit into or blended with our usual themes of coverage, but the pertinent developments are noteworthy, at least in brief.

Trolls of Microsoft

In his recent article (behind paywall until recently), entitled “Software patents in the cloud,” LWN’s Jonathan Corbet missed the full picture and failed to recognise that Azure and patents are a toxic mix similar to the Novell deal (2006), as we explained here a dozen times before, e.g. in [1, 2]. The closest he got to it is this part:

While Microsoft claims that it doesn’t normally transfer patents to trolls, this offering could be said to create a sort of moral hazard for the company. If a patent or two were to, somehow, end up in the hands of a troll that started asserting them widely, any customer thinking of leaving Azure would have to weigh the increased risk of attack that would result from such a move.

Microsoft is already passing patents to trolls — those which it can tame/control. We gave many examples. It’s imperative that people familiarise themselves with what Microsoft is up to now. It’s as nefarious as ever.

“Microsoft is already passing patents to trolls — those which it can tame/control.”This other new article totally missed the point of what Microsoft is really doing here. Microsoft is extorting legitimate companies. It’s essentially attacking Linux-powered products using patents, but the article’s headline uses words like “share patents”. Hilarious or outrageous?

Age of Embargo

When you cannot compete, as the saying goes, cheat. Or just embargo the competition. Manging IP will tell you how to do it in this event that it’s organising. To quote: “Speakers on an International Trade Commission panel at Manging IP’s recent US Patent Forum analysed recent notable cases such as February’s Organik Kimya Federal Circuit decision and gave best practices on enforcing an exclusion order” (“exclusion order” is another euphemism among many for embargo/sanction/injunction).

“When you cannot compete, as the saying goes, cheat.”There is a new example of this in the news. It was covered a week ago by American and British media [1, 2] (see background about this case, the Arista case, in older articles of ours).

To quote The Register:

Arista has been cleared by US Customs and Border Protection (CBP) to start shipping modified products to the United States again.

Arista sought the right to do so because of its long-running litigation with Cisco, which believes Arista has pinched its intellectual property.

So the company was threatened with embargo until it hobbled/ruined its own products. Cui bono?

“So the company was threatened with embargo until it hobbled/ruined its own products.”Just envision a UPC-imposed embargo if the EPO gets its way…

Saving Lives

The reforms at the USPTO may already be saving lives. PTAB recently took on a patent from Novartis and here is the latest on this from Patently-O:

This post follows-up on my recent essay on Novartis v. Torrent Pharma. If you recall, that decision by Judge Chen affirmed an IPR trial decision cancelling the claims of the Novartis patent as obvious.

[...]

FDA Approval: Moving back to the facts of Novartis, the patentee argued that its commercial success was based upon “Gilenya being the first commercially-available solid oral multiple sclerosis treatment.” Although that statement is true, the court found the commercial-availability focus misplaced for a non-obviousness argument.

MedCo v Mylan

Recently, Patently-O also covered MedCo v Mylan. Here is the key portion (in our humble assessment): “To spell out the results here. The appellate court reversed the district court’s decision based upon its revised claim construction. The claims require “batches” of the active ingredient that “have a maximum impurity level.” The court construed that term to require a consistent process for making all the batches, and then looked to the specification to note that the patentee intended to use an “efficient mixing” process as that consistent process since that was the type of process described in the specification; And then finally zeroed-in on the the “efficient mixing” process and required that it follow the particulars of “example 5” of the patent since that was the only detailed example given of efficient mixing. With that narrowed claim construction, non infringement was easy.”

Tax Evasion With Patents

Recently, wrote this Twitter user about the “Patent Box Regime”, this article in British media explained how it “enables UK companies to elect for a lower tax rate for profits earned from patented inventions…”

“Another facility for tax evasion, this time disguised as “innovation”?”We wrote a great deal about Patent Boxes, essentially yet another tax-dodging routine which sheds negative light on patents in general. To quote from the article itself: “The patent box regime enables UK companies to elect for a lower tax rate for profits earned from patented inventions and certain other intellectual property rights. The tax rate is being phased in but will be 10% by 1 April 2017.”

Who said there’s no future for the British economy after the Brexit disaster? Another facility for tax evasion, this time disguised as “innovation”? Another way to entice/incentivise businesses to come? If they bother at all…

Wearable Surveillance

“Sometimes patents are “good” in the sense that they discourage companies from doing malicious things (that are patented).”Mitek pursued a software patent on surveillance and it recently got it [1, 2]. So is someone going to be sued next? Well, in a sense we certainly hope so as the practice of such pervasive surveillance needs to be limited if not altogether eliminated. Sometimes patents are “good” in the sense that they discourage companies from doing malicious things (that are patented).

“Should Patent Law Be a First Amendment Issue?”

“The reality is, the public debate about patents is being perturbed; it’s not dominated by people who are affected by patents but by people who made patents (and patents alone) their livelihood.”There is an upcoming debate in Stanford in which Professor Lemley and others will participate. It’s about how software patents harm free speech, according to CAFC. Not only moderate voices will participate in this debate but also software patents proponents (not engineers but law firms) like Robert Sachs‏. “I’ll be speaking next week on Section 101 and the First Amendment,” he wrote. Why not focus on what programmers and engineers have to say? Why are they so often excluded from such debates? Who else might be at this debate? Radicals like Watchtroll? Who now protects a patent bully, as usual?

The reality is, the public debate about patents is being perturbed; it’s not dominated by people who are affected by patents but by people who made patents (and patents alone) their livelihood. It’s like letting arms manufacturers take charge of foreign policy.

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

Leave a Comment

You must be logged in to post a comment.

What Else is New


  1. High Courts in the United States Still Neither Grappling/Interfering With PTAB Nor Overturning <em>Alice</em>

    In spite of unprecedented pressure from Watchtroll, Dennis Crouch and other prominent elements of the patent microcosm in the United States, software patents continue to enjoy no backing from the courts while the Patent Trial and Appeal Board (PTAB) accelerates its crackdown on such patents



  2. Hailo and Qualcomm Both Want to Profit From Software Patents Rather Than Actual Products

    The (mis)use of software patents for "easy money" is being challenged and it does not look particularly encouraging to those who rely on such patents in 2017



  3. “Spectator” and “The Patent Scam” (New Site/Movie) Tackle the Patent Trolls Epidemic

    The mainstream criticism of patent trolls, culminating even in movies like "The Patent Scam" and others, might be enough to sway public opinion on the subject



  4. Unified Patent Propaganda Courtesy of a Cabal of Firms That Constructed the UPC

    The Unified Patent Court (UPC), a proposed patent litigation system which would harm European industry for the benefit of law firms and their largest clients (abroad), is only being boosted by few selfish and patently dishonest stakeholders, including/enjoying the EPO's massive PR/lobbying budget (FTI Consulting)



  5. Twitter Shadowbans Critics of the EPO Now?

    Criticise the EPO's European Inventor Award 2017 (in a way that becomes visible), get shadowbanned by Twitter (rendering this criticism invisible)



  6. RecogniCorp v Nintendo is Another Nail in the Coffin of Software Patents in the United States

    A precedential new decision against software patents is terrible news for the patent microcosm -- something for them to spin or moan about for a long time to come



  7. Battistelli is Busy Securing the Vote of Countries Whose Support and Tickets Are Easy to 'Buy'

    Battistelli’s banana republic politics and tricks are viewed as his ticket to endless ‘leadership’ (domination by sheer force) of a sinking patent office, whose rules he repeatedly breaks (including lack of eligibility to run it, for multiple reasons)



  8. Patent Snake Oil From Brunel University London and PatentDive

    The ludicrous notion of replacing patent examiners (or searches by humans) with machines is seriously considered by some who should know better... but don't



  9. This is How 'Independent' the Boards of Appeal Are Under Battistelli

    A rather revealing new factoid about the interview that never happened (potentially contradicting a previous one with Battistelli), or why it did not happen



  10. Links 29/4/2017: Endless OS, Pinebook, and New Mozilla Foundation Board Members

    Links for the day



  11. Links 28/4/2017: Subsurface 4.6.4, GNOME Shell & Mutter 3.25.1

    Links for the day



  12. Kather Augenstein and Bristows Shift Attention to Germany in an Effort to Ram the Dying UPC Down Everyone's Throats

    Down the throat, hopes Team UPC, the Unitary Patent system will go, even though Britain cannot ratify, throwing the whole thing into grave uncertainty



  13. United for Patent Reform Defends USPTO Director Michelle Lee From Attacks by the Patent Microcosm

    Michelle Lee is finally (if not belatedly) shielded by a bunch of large technology companies; The deep-pocketed industry finally steps in line with our position, which is usually when things turn out the way we advocate for



  14. Team UPC and CIPA Are Lobbying, Publishing Puff Pieces, and Rewriting the Law for Unitary Patent (UPC) Behind Closed Doors

    A collection of the latest news and views on the UPC, which is being lied about by those who stand to benefit from it and is probably going nowhere because Brexit means that the UK stays out, in which case it must be reset and pertinent ratifications done all over again



  15. China's Suffering From Patent Maximalism Has Europe Forewarned

    The parasitic elements inside China -- those that just want lots of litigation (even if from patent trolls) -- are winning over, much to the detriment of the Chinese economy, and Team UPC threatens to do the same in Europe with help from Battistelli



  16. Links 27/4/2017: Mesa 17.0.5 RC1, Git 2.13.0 RC1, and Linkerd 1.0

    Links for the day



  17. The Latest Expensive PR Blitz of the EPO, Led by Jana Mittermaier and Rainer Osterwalder Under the 'European Inventor Award' Banner

    The PR agencies of the Corsican in Chief, who appears to be buying political support rather than earning any, are very busy this week, as yet another reputation laundering campaign kicks off



  18. Links 26/4/2017: SMPlayer 17.4.2, Libreboot Wants to Rejoin GNU

    Links for the day



  19. PatentShield is Not the Solution and It Won't Protect Google/Android From Patent Trolls Like Microsoft's

    A new initiative called "PatentShield" is launched, but it's yet another one of those many initiatives (Peer-to-Patent and the likes of it, LOT Network, OIN, PAX etc.) that serve to distract from the real and much simpler solutions



  20. Patent Quality Crisis and Unprecedented Trouble at the European Patent Office (EPO) Negatively Affect Legitimate Companies in the US As Well

    The granting en masse of questionable patents by the EPO (patent maximalism) is becoming a liability and growing risk to companies which operate not only in Europe but also elsewhere



  21. Blog 'Takeovers' by Bristows and Then Censorship: Now This Firm Lies About the Unitary Patent (UPC) and Then Deletes Comments That Point Out the Errors

    Not only are Bristows employees grabbing the mic in various high-profile IP blogs for the purpose of UPC promotion (by distortion of facts); they also actively suppress critics of the UPC



  22. Links 25/4/2017: Kali Linux 2017.1 Released, NSA Back Doors in Windows Cause Chaos

    Links for the day



  23. Astoundingly, IP Kat Has Become a Leading Source of UPC and Battistelli Propaganda

    The pro-UPC outlets, which enjoy EPO budget (i.e. stakeholders' money), are becoming mere amplifiers of Benoît Battistelli and his right-hand UPC woman Margot Fröhlinger, irrespective of actual facts



  24. EPO Fiasco to be Discussed in German Local Authority (Bavarian Parliament) Some Time Today as the Institution Continues Its Avoidable Collapse

    Conflict between management and staff -- a result of truly destructive strategies and violations of the law by Benoît Battistelli -- continues to escalate and threatens to altogether dismantle the European Patent Office (EPO)



  25. In the US and Elsewhere, Qualcomm's Software Patents Are a Significant Tax Everyone Must Pay

    The state of the mobile market when companies such as Qualcomm, which don't really produce anything, take a large piece of the revenue pie



  26. In South Asia, Old Myths to Promote Patent Maximalism, Courtesy of the Patent Microcosm

    The latest example of software patents advocacy and patent 'parades' in India, as well as something from IPOS in Singapore



  27. Links 24/4/2017: Linux 4.11 RC8, MPV 0.25

    Links for the day



  28. Why Authorities in the Netherlands Need to Strip the EPO of Immunity and Investigate Fire Safety Violations

    How intimidation and crackdown on the staff representatives at the EPO may have led to lack of awareness (and action) about lack of compliance with fire safety standards



  29. Insensitivity at the EPO’s Management – Part IX: Testament to the Fear of an Autocratic Regime

    A return to the crucial observation and a reminder of the fact that at the EPO it takes great courage to say the truth nowadays



  30. For the Fordham Echo Chamber (Patent Maximalism), Judges From the EPO Boards of Appeal Are Not Worth Entertaining

    In an event steered if not stuffed by patent radicals such as Bristows and Microsoft (abusive, serial litigators) there are no balanced panels or even reasonable discussions


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