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03.18.18

PTAB Hatred is So Intense Among the Patent ‘Industry’ That Even Scammers Are Hailed as Champions If They Target PTAB

Posted in America, Deception, Patents at 12:23 am by Dr. Roy Schestowitz

Michael Shore

Summary: The patent microcosm is so eager to stop the Patent Trial and Appeal Board (PTAB) that it’s supporting sham deals (or “scams”) and exploits/distorts the voice of the new USPTO Director to come up with PTAB-hostile catchphrases

THE patent reform in the United States is very real; it’s effective. The USPTO makes it a lot harder to pursue software patents (unless they’re disguised as something different — a subject we shall cover and tackle separately).

An anti-PTAB site of the patent microcosm currently tries to frame PTAB’s opposition as “[p]harmaceutical patent owners”, but in reality it’s just greedy law firms that oppose PTAB. It mentioned PTAB’s Chief Judge Ruschke the other day after he had once again responded to critics.

Likely in response to these concerns, Chief Judge Ruschke announced the results of an Orange Book-listed Patent Study during his “Chat with the Chief” on March 13, 2018. The meeting presentation slides can be found here. During the chat, the Chief Judge also revealed the results of an expanded panel study, which we will analyze in a future post. For the Orange Book study, the PTAB classified a petition as challenging an Orange Book-listed patent if, unsurprisingly, the patent was listed in the Orange Book when the petition was filed. The data provided was through the end of the fiscal year 2017, which ended on September 31, 2017. We will look at three of the questions asked by the Office in this study.

The author, Andrew Williams, concluded as follows: “In any event, this study by the Patent Office is certainly interesting. It does go a long way to allaying the fears of NDA holders. Nevertheless, considering that an IPR is a lose-or-draw proposition for any patent holder, and that Orange Book-listed patents are so valuable to NDA holders, this may come as little comfort to the community. Instead, anything that disrupts the balance struck by Hatch-Waxman is not going to be seen as favorable, no matter how the actual numbers have been borne out.”

The patent microcosm is attempting to guard an old (antiquated and collectively undesirable) status quo — one in which patent trolls thrived, software patents had legal ‘teeth’, and lawsuits were abundant. IAM, the patent trolls’ lobby, continues to amplify if not promote scammers and then appeals to SCOTUS for help. The author of this new piece is a patent extremist with a long history of promoting trolls and software patents.

“The USPTO is not a for-profit organisation. It exists to service those entitled to some protection in exchange for publication.”Unfortunately we have gotten used to it. All we have here is IAM, the patent trolls’ lobby, which attacks PTAB and attempts to influence/incite Justices against IPRs. IAM is toxic, but it enjoys free speech rights (even if that speech is funded by nefarious elements).

With the context being a recent IAM 'interview' (more like PTAB bashing, or an IAM piece using Andrei Iancu to smear PTAB), we at least know who orchestrates much of the propaganda. The CCIA responded the other day as follows:

Director Andrei Iancu has been making the rounds since his confirmation. In a recent interview, he suggested that “[t]here is, for sure, a perception problem in the IP community with the PTAB” and that “when you have a perception problem you have a real problem in the sense that if the IP community loses faith in what you do then it loses faith in the reliability of the system.”

Director Iancu is right. When you have a perception problem, that can create an actual problem. But instead of looking to the IP community, which has far more widely varying views than the interview gives credence to, I’d look at the Patent Office to see the real impacts.

[...]

The post-grant proceedings created by the AIA—post grant review, inter partes review, and covered business method—were designed to allow the Patent Office to correct its own errors when it issues a patent that never should have issued. Part of this process is allowing interested parties to locate prior art the examiner never located.

But part of the process is allowing parties to correct errors made by the examiner in the art they did find. Examiners miss things when they search, but they also miss things once they’ve found a reference. That’s exactly why 325(d) says that the PTAB “may take into account” if the prior art was previously at the office.

Not “must take into account” or “can’t institute”, but “may take into account.” The statute itself recognizes that sometimes examiners misunderstand or misapply art.

Well, the Patent Office (USPTO) would be wise to listen to actual companies rather than law firms. At the moment the impression we are getting is that the USPTO’s reputation is improving. If Iancu wants to be remembered positively, he’ll maintain the positive elements and reject those who pursue patents just for the sake of having more patents or making more money from the patent-granting process. The USPTO is not a for-profit organisation. It exists to service those entitled to some protection in exchange for publication.

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