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

07.12.18

Thomas Massie and Marcy Kaptur Are Promoting the Interests of Patent Trolls and Patent Lawyers While Calling That “Innovation”

Posted in America, Deception, Law, Patents at 1:07 am by Dr. Roy Schestowitz

“Innovation” does not mean bullying firms which actually invent and make stuff

Patent Trolls: Evidence from Targeted Firms

Summary: Remarks on the ongoing effort to promote patent trolls’ interests under the guise of “helping small businesses” — a very misleading propaganda pattern that we have been finding in Unified Patent Court (UPC) lobbying at the EPO

THE low quality of patents granted by the USPTO for a number of decades (still valid, expiry may take 2 decades) has meant that patent trolls lay their hands on software patents, which they can then use to blackmail small businesses (without even a court/legal challenge). Small businesses are harmed the most because of their lack of access to justice (simple matter of economics).

“Small businesses are harmed the most because of their lack of access to justice (simple matter of economics).”Recently, the patent trolls’ lobby, IAM, advertised a huge patent troll called iPEL. The troll tries to market itself as the very opposite of what it is, calling itself “ethical” (even trademarking it!) and portraying itself as an ally of small businesses.

IAM’s Jacob Schindler continues to play along with this scam, having published yet more nonsense for this troll earlier this week. To quote:

The recent launch of a new NPE, iPEL, caused more than a few raised eyebrows among experienced licensing operators. “Who is this guy?” seemed to be the collective response to iPEL’s co-founder Brian Yates who, in launching his new business, has come out swinging for the monetisation fences. His bold talk of a China-focused licensing strategy, backed by a large portfolio of assets from several of the biggest Chinese tech players and a $100 million kitty to play with courtesy of a hedge fund investor, has clearly grabbed a lot of attention.

They’re trying the anti-China angle, but in reality it’s just an elaborate plot to tax everyone using patents. IAM seems to have acted like a “media partner” of this elaborate plot, having spoken directly to the people behind this troll, lowered its paywall to increase exposure, and repeated the marketing lies.

“They’re trying the anti-China angle, but in reality it’s just an elaborate plot to tax everyone using patents.”The reality behind patent trolls was explored in a very recent paper from Lauren Cohen (Harvard Business School; National Bureau of Economic Research (NBER)), Umit G. Gurun (University of Texas at Dallas) and Scott Duke Kominers (Harvard University). It’s titled “Patent Trolls: Evidence from Targeted Firms”, noting that these trolls have “become effective at bringing frivolous lawsuits” (harms small businesses the most because they cannot afford justice, it’s just too expensive and settlement is a lot cheaper). To quote the abstract:

We develop a theoretical model of, and provide the first large-sample evidence on, the behavior and impact of non-practicing entities (NPEs) in the intellectual property space. Our model shows that NPE litigation can reduce infringement and support small inventors. However, the model also shows that as NPEs become effective at bringing frivolous lawsuits, the resulting defense costs inefficiently crowd out firms that, absent NPEs, would produce welfare-enhancing innovations without engaging in infringement. Our empirical analysis shows that on average, NPEs behave as opportunistic patent trolls. NPEs sue cash-rich firms ― a one standard deviation increase in cash holdings roughly doubles a firm’s chance of being targeted by NPE litigation. We find moreover that NPEs target cash unrelated to the alleged infringement at essentially the same frequency as they target cash related to the alleged infringement. By contrast, cash is neither a key driver of intellectual property lawsuits by practicing entities (e.g., IBM and Intel), nor of any other type of litigation against firms. We find further suggestive evidence of NPE opportunism, such as forum shopping and targeting of firms that have reduced ability to defend themselves against litigation. We find that NPE litigation has a real negative impact on innovation at targeted firms: firms substantially reduce their innovative activity after settling with NPEs (or losing to them in court). Moreover, we neither find any markers of significant NPE pass-through to end innovators, nor of a positive impact of NPEs on innovation in the industries in which they are most prevalent.

In view of all this, consider the so-called ‘reform’ proposed by Thomas Massie and Marcy Kaptur, who generally push if not lobby to promote software patents and abolish the Patent Trial and Appeal Board (PTAB).

“In view of all this, consider the so-called ‘reform’ proposed by Thomas Massie and Marcy Kaptur, who generally push if not lobby to promote software patents and abolish the Patent Trial and Appeal Board (PTAB).”Now see the article “NSBA supports patent system reform measure” by Douglas Clark, promoted by Patently-O again and by various patent trolls (as noted in [1, 2]) for NSBA. It says:

NSBA officials said the Restoring America’s Leadership In Innovation Act, which was introduced by Reps. Thomas Massie (R-KY) and Marcy Kaptur (D-OH), is a necessary, small-business friendly alternative to other harmful patent reform initiatives currently pending before Congress.

[...]

In 2011, Congress passed and President Obama signed into law the America Invents Act (AIA), which the NSBA said resulted in negative side-effects for small-business innovators and limited their ability to protect their patents from infringement.

Actually, the biggest victims of software patents and litigation are small businesses. PTAB is of much use to them (they can even crowdsource/crowdfund an inter partes review (IPR)), so NSBA either does not understand how the patent system works or enlisted many of the parasites (like trolls) as members.

“The interests promoted by him aren’t industry’s or even innovation; he’s attempting to change the law in favour of the litigation ‘industry’, i.e. those preying on actual scientists and holding innovation back.”Sadly, the likes of Massie and Kaptur might actually believe that they are helping, boosted by these lies about US lost leadership in "innovation" — a myth further perpetuated (disappointingly) by IP Watch yesterday. Amplifying WIPO and its new propaganda (whose purpose seems to be increasing patents and billionaires’ protectionist laws), IP Watch speaks of something called “Global Innovation Index 2018″. How was it measured? Patents?

Either way, if Massie can call himself a scientist (check out his professional background), he will reassess what he’s doing here. The interests promoted by him aren’t industry’s or even innovation; he’s attempting to change the law in favour of the litigation ‘industry’, i.e. those preying on actual scientists and holding innovation back.

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 4/4/2020: Sparky 5.11, Firefox 74.0.1, POCL 1.5

    Links for the day



  2. IRC Proceedings: Friday, April 03, 2020

    IRC logs for Friday, April 03, 2020



  3. Links 3/4/2020: Ubuntu Beta, GNOME 3.36.1, ExTiX LXQt Mini, NetBSD 8.2 Released

    Links for the day



  4. Digital Communication, Digitalisation and Videogaming Among the EPO's Latest Smokescreens for Illegal and Abstract Patents on Algorithms

    The EPO keeps liaising with the EU to promote patents which EU officials have themselves said were illegal; to make matters worse, the EPO's violations of its own laws inspire the United States to do the same



  5. Emotional Blackmail for Illegal Software Patents

    Semantic tactics the European Patent Office (EPO) uses to promote software patents in Europe and may theoretically use in the future (satire)



  6. Clear Linux is to GNU/Linux What Clearly Defined is to Open Source

    The idea that we need Intel to take GNU/Linux ‘mainstream’ is ludicrous; as OSDL co-founder (now succeeded in the flesh of the Corporate Linux Foundation), Intel is more about Linux (with DRM, “secure boot” and everything that lets it be remotely controlled) than about GNU and it’s not too keen on GPL (copyleft), either



  7. IRC Proceedings: Thursday, April 02, 2020

    IRC logs for Thursday, April 02, 2020



  8. Links 2/4/2020: Linux 5.6.2, Qt Creator 4.11.2, LineageOS ROM Based on Android 10

    Links for the day



  9. OIN in 2020 Resembles Linux Foundation in 2020 (Corporate Front Group Piggybacking the Linux Brand)

    We regret to say that the Open Invention Network seems not to care at all about Software Freedom; to make matters worse, it is a proponent of software patents and a voice for companies like IBM and Microsoft, not the "Community" it fancies misrepresenting



  10. Inside the Free Software Foundation (FSF) - Part IX: Semi-Happy Ending

    Richard Stallman is here to stay and the FSF will let him stay (as chief of GNU); we want to close the series on a positive note



  11. IRC Proceedings: Wednesday, April 01, 2020

    IRC logs for Wednesday, April 01, 2020



  12. Upcoming Articles and Research Areas

    Although we've failed to write as much as usual, we're still preparing some in-depth articles and maintaining Daily Links (in spite of unforeseen ordeals like a forced laptop migration)



  13. Links 2/4/2020: ProtonMail Bridge for Linux, GTK 3.98.2 and Red Hat DNF 4.2.21

    Links for the day



  14. Links 1/4/2020: Linux 5.7 Merges, Qt 5.14.2, GhostBSD 20.03, Linux Mint 20 Ulyana Plans, WordPress 5.4 “Adderley”

    Links for the day



  15. IRC Proceedings: Tuesday, March 31, 2020

    IRC logs for Tuesday, March 31, 2020



  16. Techrights to Delete Articles From All Past Years to Save Disk Space

    What if we deleted over 25,000 posts?



  17. IRC Proceedings: Monday, March 30, 2020

    IRC logs for Monday, March 30, 2020



  18. Links 30/3/2020: GNU Linux-libre 5.6, WireGuard 1.0.0

    Links for the day



  19. IRC Proceedings: Sunday, March 29, 2020

    IRC logs for Sunday, March 29, 2020



  20. Links 30/3/2020: Linux 5.6, Nitrux 1.2.7, Sparky 2020.03.1

    Links for the day



  21. The Fall of the UPC - Part IX: Campinos Opens His Mouth One Week Later (and It's That Hilarious Delusion Again)

    Team Campinos said nothing whatsoever about the decision of the FCC until one week later, whereupon Campinos leveraged some words from Christine Lambrecht to mislead everybody in the EPO's official "news" section



  22. Pretending EPO Corruption Stopped Under António Campinos When It is in Fact a Lot Worse in Several Respects/Aspects (Than It Was Under Benoît Battistelli)

    Germany's eagerness to keep Europe's central patent office in Munich (and to a lesser degree in Berlin) means that politicians in the capital and in Bavaria turn a blind eye to abuses, corruption and even serious crimes; this won't help Germany's image in the long run



  23. IRC Proceedings: Saturday, March 28, 2020

    IRC logs for Saturday, March 28, 2020



  24. Links 28/3/2020: Wine 5.5 Released, EasyPup 2.2.14, WordPress 5.4 RC5 and End of Truthdig

    Links for the day



  25. IRC Proceedings: Friday, March 27, 2020

    IRC logs for Friday, March 27, 2020



  26. The Fall of the UPC - Part VIII: Team UPC Celebrates Death, Not Life

    Team UPC plays psychological games now; it is trying to twist or spin its defeat as good news and something to be almost celebrated; it is really as illogical (and pathetic) as that sounds



  27. Links 27/3/2020: GNU/Linux Versus COVID-19 and Release of GNU Guile 3.0.2

    Links for the day



  28. When Your 'Business' is Just 'Patent Portfolio'

    Hoarding loads of patents may seem impressive, but eating them to survive is impossible if not impermissible



  29. LOT Network is a One-Man (Millionaire's) Operation and Why This Should Alarm You

    The ugly story of Open Invention Network (OIN) and LOT; today we take a closer look at LOT and highlight a pattern of 'cross-pollination' (people in both OIN and LOT, even at the same time)



  30. Faking Production With Fake Patents on Software

    The EPO with its illegal guidelines (in violation of the EPC) can carry on churning out millions of fake patents that European courts would only waste time on and small companies be blackmailed with (they cannot afford legal battles)


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