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

09.17.17

Patent Trial and Appeal Board (PTAB) Under Attack by IBM and Other Patent Parasites Who Undermine Patent Quality

Posted in America, IBM, Patents at 3:05 pm by Dr. Roy Schestowitz

Ginni Rometty

Summary: The PTAB, which has thus far invalidated thousands of abstract/software patents, is under a coordinated attack not by those who produce things but those who produce a lot of lawsuit

HAVING just covered the PTAB-dodging "scam" which the Mohawk tribe participates in, we now turn our attention to PTAB bashing or to shameless lobbying by the patent ‘industry’. The EPO has already marginalised its equivalent of PTAB, known as the appeal boards, in order to reduce patent quality, so why not the USPTO too?

“Manny Schecter, IBM’s patent chief who is friends with Watchtroll, is already lobbying the likely new Director of the USPTO.”Watchtroll is attacking PTAB again. It does this almost every other day. It has done this many dozens of times if not over a hundred times. Who or what is Watchtroll? This is basically a bunch of lawyers trying to destroy technology companies. Just look at who writes for them and who the founder is. His sidekick Paul Morinville is one of the radicals who burned stuff in unauthorised protests on USPTO premises and two days ago he too joined his ‘master’ in attacking PTAB. His headline speaks of a “failed PTAB experiment,” but actually, it has been exceptionally successful when it comes to squashing bad patents which should never have been granted in the first place. Technology companies certainly support and appreciate PTAB! We wrote a lot about that. There are very few exceptions to this, notably IBM. “IBM continues to push for legislation to abolish Alice and restore swpats [software patents] in the US,” Benjamin Henrion (FFII) wrote a few days ago. This does not surprise us because IBM is nowadays a lobbyist for software patents and it habitually attacks small(er) companies with large-scale patent lawsuits. Manny Schecter, IBM’s patent chief who is friends with Watchtroll, is already lobbying the likely new Director of the USPTO. In what platform? None other than Watchtroll (soon to be promoted by Patently-O, increasingly conjoined with Watchtroll).

Here are some portions from what Schecter wrote, citing the villainous Chamber of Commerce (it would not be surprising if it’s a front group to IBM too):

At long last, the next Director of the U.S. Patent and Trademark Office (USPTO) has been revealed. My congratulations to Andrei Iancu of Irell & Manella on his nomination to lead the USPTO. I recently wrote about the direction the next leader of the USPTO will need to provide[1] and the U.S. patent system remains at an important crossroads. Assuming Director-designee Iancu’s nomination is eventually confirmed, he will have the opportunity, through a variety of channels, to meaningfully influence the path of the U.S. patent system going forward.

In the 2017 U.S. Chamber report on Global IP[2] the U.S. patent system fell from the best in the world to tenth, equal with the patent system in Hungary. The Chamber report explains that the post-patent grant challenge proceedings created under the America Invents Act adds substantial costs and uncertainty, and the Court’s narrow interpretation of patentability of biotech and computer-related inventions puts the U.S. in a disadvantageous position as compared to international standards. Clearly there is work to be done to restore the competitiveness of the U.S. patent system. Unfortunately, there is currently a lack of consensus in the U.S. on how to proceed. Patent subject matter eligibility is prime among the substantive issues for which legislation has been proposed, but to date no legislation has been formally introduced. Many of the major IP associations have published resolutions urging legislation to amend 35 U.S.C. 101, but work to build consensus continues .[3]

So he is bashing AIA, which brought PTAB into existence. This isn’t new or unexpected from him. The truth of the matter is, as IBM sues all sorts of companies the Patent Trial and Appeal Board (PTAB) often comes to the victims’ rescue. We habitually name new examples, which this guy continues to keep abreast of [1, 2]. The latest:

  • Startup Perigen can’t get patent on fetal monitoring machines thx 2 PTAB random (mis)application of Alice precedent: https://e-foia.uspto.gov/Foia/RetrievePdf?system=BPAI&flNm=fd2016002806-08-30-2017-1 …
  • PTAB finds 2-page long, kitchen sink patent claim by IBM as just an”abstract idea” https://e-foia.uspto.gov/Foia/RetrievePdf?system=BPAI&flNm=fd2016003153-08-24-2017-1 … guess War&Peace also abstract?

IBM is a big patent bully, so PTAB invalidating its software patents and stopping its aggression is a good thing. But not in the eyes of the above patent maximalist, who is right now attacking the EFF in a patent trolls’ site (Dominion Harbor), only to be promoted by other patent maximalists, including patent trolls.

Spotted the pattern yet? Notice who’s attacking PTAB.

Again come out the PTAB bashers, who simply want software patents and a patent trolls resurgence, piggybacking SCOTUS by lobbying to abolish PTAB. There was a long article about this in Blooberg a few days ago. This long article by Tony Dutra did a reasonably OK job explaining that it’s the patent microcosm against those who actually make stuff. To quote some portions from the article:

Stakeholders have filed 31 friend-of-the-court briefs reviewing petitioner Oil States Energy Services LLC’s (OSES) argument that a patent is a private property right that can only be revoked by a federal court, not by the PTO ( Oil States Energy Servs., LLC v. Greene’s Energy Grp., LLC , U.S., No. 16-712, briefs filed 8/31/17 ). Companies and individual inventors with patents contend that patent rights include the Seventh Amendment right to a jury trial, which is not provided for in a PTAB proceeding before administrative patent judges.

On the other side are the Silicon Valley heavyweights and generic drug manufacturers that have used IPR proceedings as a way to avoid the higher hurdle for showing patent invalidity in court. A federal judge and jury must presume the patent is valid and require clear and convincing evidence to the contrary. The AIA set up the IPR proceeding without the presumption of validity, with the challenger’s burden of proving invalidity by an easier standard, the preponderance of the evidence.

Counterarguments by Greene’s Energy Group LLC, the successful challenger to OSES’s U.S. Patent No. 6,179,053, which relates to protecting wellheads during fracking, and the U.S. Office of the Solicitor General, are due by the end of October. Several more amicus briefs supporting the AIA’s constitutionality are expected then as well.

The court has not yet set a date for oral arguments, but it should be before the end of this year, with a decision before June 2018.

Dutra then mentions the disgraced/corrupt judge, Randall Rader:

Critics often call the PTAB a “death squad” because of the high rate of patent claims that it kills, but the phrase was originally used to describe the constitutional questions about the board’s role.

Former Federal Circuit Chief Judge Randall R. Rader coined the term in 2013, before any IPR was decided. He meant it in a way that underlies the constitutional argument, that it is wrong to have the PTO with “7,000 people giving birth to property rights”—referring to the patent examiner corps—while PTAB judges are “acting as death squads, killing property rights.”

And finally:

IPLAC lays out the question in terms of the PTO’s rights as to follow-on action after a patent issues. Prior to the AIA, the Patent Act gave the PTO no such rights, according to the association’s brief. But the AIA changed the nature of the PTO’s ongoing involvement. From the implementation date, the PTO’s grant is better characterized as only an “issue-from-examination … while-subject-to-further-processes-of securement,” IPLAC said.

Not a bad article overall. Compare that to the usual PTAB/IPR bashing from Dennis Crouch. Days ago he wrote: “As a placeholder – I’ll note here that the pending en banc case of In re Aqua Products regarding amendments during IPR Proceedings is still pending before the Federal Circuit.”

“Companies that make stuff like PTAB.”Crouch spent a great deal of effort earlier this year trying to compel the Federal Circuit to step on PTAB's toes. Follow the money and the interests and it’s abundantly clear what the motivations are…

Companies that make stuff like PTAB. This isn’t a subjective observation.

Companies (or firms) that just make lawsuits hate PTAB. The evidence is out there for all to see (e.g. in the form of amicus curiae briefs, pretending to be the highest court‘s “amici”).

Some law firms have grown so afraid/wary of PTAB that they apparently have such a thing as “PTAB chair”. See this new article from a patent maximalists’ news site:

Scott McKeown (right) has joined Ropes & Gray as partner in Washington, DC, and as chair of the firm’s Patent Trial and Appeal Board (PTAB) practice.

Maybe they should focus more efforts on applying for better patents (quality rather than quantity); then, PTAB would not be a concern to them and their clients.

To close this on a more positive note, have a look at the CCIA’s Josh Landau with his analysis of Oil States, claiming that the PTAB’s IPRs have saved over $2,000,000,000 in just 5 years. Here’s a portion from Landau’s good article:

This Saturday, September 15, 2017, marks the five-year anniversary of the first filing of an inter partes review. We’ve seen nearly 7,000 post-grant reviews filed since then, a Supreme Court case dealing with IPRs, and there are a pair of IPR Supreme Court cases up this term. [Oil States] [SAS]

Over the next few weeks, I’ll tell you about particular stories where inter partes and covered business method patent reviews have curtailed abusive litigation and allowed smaller companies to defend themselves even if they might not have been able to fight a full-fledged patent lawsuit.

But today I just want to step back and look at the effects of the inter partes review system as a whole. One of the reasons IPR was created was to “provid[e] a more efficient system for challenging patents that should not have issued; and reduc[e] unwarranted litigation costs and inconsistent damage awards.” (Page 39-40 of the House Report on the AIA.)

All in all, the IPR system has been incredibly effective at achieving these goals—I estimate that the implementation of inter partes review has helped plaintiffs and defendants avoid at least $2.31 billion in deadweight losses by providing an efficient system for challenging patents.

This benefit is purely based on avoiding deadweight loss from legal fees; it does not account for the benefit of preventing transfers from defendants to plaintiffs based on patents that should have been invalidated. The financial data used in this analysis is based on publicly available data, as well as some data derived from the 2017 AIPLA Economic Survey. Unfortunately, this survey is not publicly available; where possible, I have linked to open summaries of the data contained in the survey.

We certainly hope that Justices can tell apart parasites from producers. At the moment, with very rare exceptions, all those who oppose PTAB basically oppose science and technology. All they want is more and more litigation, blackmail, and threats (which merely drain money out of the productive economy).

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. The EPO No Longer Measures Quality of Patents; Instead It Publishes Fake Statistics

    The decline in patent quality at the EPO is a long-known issue and suppression of information about it merely enabled several more years of questionable patent grants, thereby putting at risk the perceived value of EPO services



  2. Speaking of “Social Democracy” While Suffering Extreme Democratic Deficiency

    The EPO represents an even broader assault on democracy in Europe (implicating ILO, Team UPC, national delegates, and national governments), but Benoît Battistelli is unique in the sense that he's disguising it or lying to himself about it



  3. Management by Intimidation Has Caused Deaths at the European Patent Office (EPO)

    An accurate diagnosis of the conditions created at the European Patent Office (EPO) by Benoît Battistelli and his cronies, who have essentially hijacked the Organisation -- not just the Office -- then attacked every 'enemy', either real or perceived



  4. The Difference Between Alain Pompidou and Benoît Battistelli as EPO President

    The different approaches adopted by Pompidou and Battistelli; one pursued amicable mediation and training, whereas the other resorted to vindicative witch-hunts, kangaroo courts, and a culture of terror which resulted in many suicides



  5. The Darker Past of the Next President of the EPO - Part IV: Links Between CGD (Former Employer of António Campinos) and the INPI

    More information about connections between CGD and the Portuguese Intellectual Property Office (INPI)



  6. Links 21/10/2017: Purism Against ME, Pop!_OS Ready

    Links for the day



  7. US Patents Appeal Board Attacked by the Patent 'Industry', Defended by Federal Courts, and Dodged by Patent Trolls

    PTAB, the branch or the 'court' responsible for eliminating bad patents, is coming under attacks from those who rely on poor patent quality and receives praises from everyone else, as usual



  8. In the United States, the Patent 'Industry' is a Dying Breed and China Adopts This Destructive Force

    The decaying patent microcosm, or the pipeline of low-quality patents and frivolous lawsuits these entail, loses its grip on the US; China, much to the astonishment of people who actually create things, is attempting to attract that ruinous microcosm (which preys on real, producing companies)



  9. Microsoft and Nokia's Patent Trolls by Proxy: First Conversant, Now Provenance Asset Group Holdings LLC

    Microsoft's shell game with patents (passing Android-hostile patents to trolls) carries on and publishers funded by these trolls offer the details, albeit vaguely and with obvious spin



  10. Anonymous Professionals Speak of Benoît Battistelli's Destruction of the EPO, But Why Does the Media Turn a Blind Eye?

    Everyone in the circles of EPO staff and EPO stakeholders knows that dysfunction has become the norm; European media, however, remains suspiciously silent about what otherwise would be a major European scandal (bigger than FIFA or Dieselgate)



  11. The Darker Past of the Next President of the EPO - Part III: More Details About Caixa Geral de Depósitos, Former Employer of Campinos

    The side of Campinos which he prefers to conceal, or rather his association with a rather notorious Portuguese bank



  12. UPC Looks Like More of a Distant Dream (or Nightmare) as Germany Adds Another Two Months' Delay

    The likelihood that the UPC will be altogether scuttled is growing as delays keep piling up and more complaints are being filed by public interest groups (as opposed to Team UPC, which hoped to shove the UPCA down everyone's throats behind closed doors)



  13. Patent Trolls Roundup: BlackBerry, Dominion Harbor, IPNav, IP Bridge

    A quick review of recent news regarding patent trolls or entities which resemble (and sometimes feed) these



  14. Battistelli's Destruction of the EPO is Bad for Everyone, Even Patent Attorneys

    The collapse of the European patent system, owing primarily to Battistelli's totalitarian style and deemphasis on patent quality, means that "the war is lost," as one professional puts it



  15. Links 19/10/2017: Mesa 17.2.3, New Ubuntu Release, Samsung Flirts With GNU/Linux Desktops

    Links for the day



  16. Some of the USPTO's Most Ridiculous Patents Are Scrutinised by “Above the Law” While Dennis Crouch Attempts to Tarnish Alice

    Controversies over patent scope and level of novelty required for a patent; as usual, public interest groups try to restrict patent scope, whereas those who make money out of abundance of patents attempt to remove every barrier



  17. Microsoft's Software Patents Aggression in Court (Corel Again)

    Microsoft's tendency to not only abuse the competition but also to destroy it with patent lawsuits as seen in Corel's case



  18. The Spanish Supreme Court Rejects the EPO's “Problem and Solution Approach” While Quality of European Patents Nosedives

    European Patents (EPs) aren't what they used to be and their credibility is being further eroded and even detected as such



  19. Europe is Being Robbed by Team Battistelli and the UPC/PPH Would Make Things Worse

    The European Patent Office (EPO) has put litigation at the forefront, having implicitly decided to no longer bother with proper patent examination and instead issue lots of patents for judges and lawyers to argue about (at great expense to the public)



  20. Team UPC Continues to Promote Illusion of UPC Progress Where There's None

    The core members of Team UPC in the UK spread obvious falsehoods in the media, probably in an effort to attract 'business' (consultation regarding something that does not exist)



  21. António Campinos: A True EPO Reformer or More of the Same?

    More unfortunate reminders that Campinos and Battistelli don't quite diverge on the big issues, they're just more than two decades apart in age (but the same nationality)



  22. Juve Has Confirmed That António Campinos is French

    The relationship between Campinos and Battistelli has a nationality aspect to it, not even taking into account the interpersonal connection which goes a long way back



  23. The Darker Past of the Next President of the EPO - Part II: António Campinos at Banco Caixa Geral de Depósitos

    A look at the largely-hidden banking career of the next President of the EPO and the career of the person who competed with him for this position



  24. SUEPO to the Media, Regarding Campinos: “No Comment, It’s Too Dangerous”

    António Campinos, who is Benoît Battistelli's chosen successor at the EPO, as covered by German media earlier this month



  25. Staff Union of the EPO (SUEPO) Willing to Work With Campinos But Foresees Difficulties

    New message from SUEPO regarding Battistelli's successor of choice (Campinos)



  26. Links 18/10/2017: GTK+ 3.92, Microsoft Bug Doors Leaked

    Links for the day



  27. The Darker Past of the Next President of the EPO - Part I: Introduction

    Some new details about Mr. Campinos, who is Battistelli’s successor at the EPO



  28. Confessions of EPO Insiders Reveal That European Patents (EPs) Have Lost Their Legitimacy/Value Due to Battistelli's Policies

    A much-discussed topic at the EPO is now the ever-declining quality of granted patents, which make or break patent offices because quality justifies high costs (searches, applications, renewals and so on)



  29. Patent Firms From the United States Try Hard to Push the Unitary Patent (UPC), Which Would Foment Litigation Wars in Europe

    The UPC push seems to be coming from firms which not only fail to represent public interests but are not even European



  30. In the Age of Alice and PTAB There is No Reason to Pursue Software Patents in the United States (Not Anymore)

    The appeal board in the US (PTAB) combined with a key decision of the Supreme Court may mean that even at a very low cost software patents can be invalidated upon demand (petition) and, failing that, the courts will invalidate these


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