Bonum Certa Men Certa

'Cloud', 'AI' and Other Buzzwords as Excuses for Granting Fake Patents on Software

Cloud on beach



Summary: With resurgence of rather meaningless terms like so-called 'clouds' (servers/hosting) and 'AI' (typically anything in code which does something clever, including management of patents) the debate is being shifted away from 35 U.S.C. €§ 101 (Section 101); but courts would still see past such façade

THE EPO and USPTO both have a bad new habit that they spread to other patent offices, such as KIPO in Korea. They use or misuse buzzwords. They try to make things outside patent scope seem so innovative that somehow this supposed innovation defies the rules (scope). Sometimes that manages to impress or at least confuse examiners and judges.

"So let's start with this assumption that patent maximalists have come to accept Section 101/Alice renders software patents worthless and even overzealous, very large law firms (Finnegan is one of the biggest) insist that patenting has gone too far for practical purposes. Where do they go from here? Buzzwords."It's hard to patent software. So it's not hard to see why patent maximalists would pursue such tricks. As recently as Sunday Watchtroll published this rant about Section 101/Alice -- the basis (or legal framework) upon which most software patents become void. "This has prompted many to cast a grim prospect for the software patent industry," Babak Nouri (at Watchtroll) wrote less than a couple of days ago, as if the patents themselves are the industry...

"A Realistic Perspective on post-Alice Software Patent Eligibility" is the headline and here's a snide remark directed at the law itself: "Much of the havoc wrought in the software patent system by the landmark decision Alice v. CLS Bank International, 134 S. Ct. 2347 (2014) stems from the unworkable two-part patent eligibility test based on vaguely defined and nebulous Abstract idea and significantly more constructs. The High court’s reluctance or perhaps inability to precisely define these standards and the perceived lack of discernible consistency by the patent community in the way these standards have been applied in the compendious jumble of case law, has perpetuated a sense of uncertainty. This has prompted many to cast a grim prospect for the software patent industry."

Who said this so-called 'industry' (it's not even an industry) deserved to exist in the first place? Let coders write code. Most of them never dealt with lawyers and aren't interested in lawsuits. It's the lawsuits 'industry' looking to cause trouble.

A few days ago Elliot C. Cook and Jeffrey A Berkowitz (Finnegan, Henderson, Farabow, Garrett & Dunner, LLP) published "Successful Companies Don't Just Patent Everything—They Make And Follow A Strategy".

You can't patent everything anyway. Sooner or later, as in the US with its courts, you realise that the lion's share of your patents are fake, worthless, toothless. Or in their words: "In both of the above illustrations, the companies failed to develop and implement a patent strategy. Emerging companies should concentrate on building a patent monopoly covering the most commercially important aspects of their new technologies while making efficient use of their patent dollars and the precious time of their key inventors. In short, when companies formulate their business strategy, patents should play an integral role. Patenting too sparingly or recklessly is not strategic and is not a way to generate company value."

So even a law firm that promotes software patents quite actively admits these downsides. In some cases, as in this new example of Swisscom and ASSIA, companies just cross-license and move on (wireless for the most part in this particular case/agreement, not algorithms).

So let's start with this assumption that patent maximalists have come to accept Section 101/Alice renders software patents worthless and even overzealous, very large law firms (Finnegan is one of the biggest) insist that patenting has gone too far for practical purposes. Where do they go from here? Buzzwords. We already wrote dozens of articles to that effect and over the past week we saw several new examples.

Japanese blogger Satoshi Watanabe wrote about patent trolls or feeding a patent troll in Japan for blackmail purposes. “Patent utilization” is what he (or they) use as the newest euphemism (rather than enforcement, monetisation, assertion and so on). He also alludes to "artificial intelligence (AI)-based" at the end:

“Patent utilization” has been a buzz word in Japanese IP industry. There seems to be an increasing number of companies thinking that they should make effective use of patents that haven’t been used by themselves; i.e. monetize such patents by selling or licensing them to others. Actually, a client of ours has asked me what salable or licensable patents are like.

First of all, you may need to know when a patent transaction occurs.

[...]

It's hoped that artificial intelligence (AI)-based solution will be developed.


That last part refers to how patents are managed, but it's part of a recent (past year) trend. They keep bringing up "AI". Some so-called 'IP' lawyers admitted to me that they don't even really understand what it means, yet they keep using the term. It's like a fashion.

How about this new article (4 days old) that speaks of "machine learning-base [sic] anomaly detection" in relation to new Anodot patents? George Leopold wrote about these bogus software patents being granted in the US. It's incredibly hard to believe/imagine patent courts tolerating such abstract/mathematical methods being patented as a monopoly.

To quote from the article:

Anodot, which focuses on using machine learning techniques to spot anomalies in time-series data, announced a pair of U.S. patent awards this week covering its autonomous analytics framework.

The analytics vendor said Thursday (Oct. 11) it has been granted two U.S. patents for algorithms that allow users to apply machine learning-base anomaly detection. The algorithms are designed specifically to quickly identify the source of anomalies in large data sets, then perform root-cause analysis. The approach is promoted as faster than traditional business intelligence tools or dashboards.

[...]

Anodot was launched in 2014 when its co-founders realized there was an unmet need for fast and accurate time-series analysis.


Those are software patents. It's algorithms, but they dress it all up in innovation- and novelty-sounding terms. Why did the USPTO grant such software patents? How about this new application from Apple? A lot of press about it this past week (dozens of articles), as is typical for Apple. But Apple will never sue with this patent/s, so we won't see the courts lecturing Apple on why it's patent-ineligible. If it ever gets granted in the first place...

Well, the patent office got its money anyway... and Apple got puff pieces about how it's presumably combating spam.

In other 'news', this time from JD Supra (a press release), patent law firms (Sterne, Kessler, Goldstein & Fox P.L.L.C. in this case) still try to figure out how to get bogus patents on software and nature, even if courts will reject these. From The Current State of Patent-Eligible Subject Matter:

In the wake of the Supreme Court’s Mayo and Alice decisions, uncertainty has surrounded what inventions are patent eligible in the United States. In Mayo and Alice, the Supreme Court developed a two-step test to determine patent eligibility. Step one determines if the invention is directed to a law of nature, natural phenomenon, or abstract idea. If so, the second step determines if there is an inventive concept sufficient to ensure the patent amounts to significantly more than the ineligible concept itself.[i] While this test has led to uncertainty in what inventions remain patent eligible, post-Mayo/Alice case law has begun to shed light on what is patent eligible in the United States. The current state of patent eligibility in the technology areas most impacted by the Mayo/Alice two-step are outlined below.

[...]

Software and Business Method Claims

Software and business method patents have faced significant challenges since the Mayo/Alice decisions. Software claims, are not per se ineligible, however software claims that merely gather, analyze, and output data are patent ineligible.[xii] Software claims can be patent eligible when they are directed to an improvement in the way computers operate.[xiii] Additionally, claims which recite specific limitations to overcome deficits or problems in the prior art have been found patent eligible.[xiv] Based on these holdings, to be patent eligible software claims must recite specific steps to obtain a desired result rather than recite merely the result itself.[xv]


After Alice and In Re Bilski we can pretty much assume things have changed profoundly. Sure, the patent office might still grant such patents. But what matters a lot more is whether those will be enforceable in court at any point before their expiry. The culture of patent embargoes and patent maximalism needs to end at the patent office too in order to preserve any presumption of patent validity. The USPTO continues to assess its performance using the wrong yardstick, e.g. number of patents granted. Patent maximalists are meanwhile pushing the lunacy which is computer-generated patents (we put the following articles in our daily links last week). Here's what Law 360 and IAM are suggesting:



So what they're basically saying is, let a bunch of machines manage the patent system; as if that's going to make matters any better...

Published a few days ago in the The National Law Review and another publication was this article of Christina Sperry (Mintz) and the litigation industry; under "Subject Matter Eligibility Under 35 U.S.C. €§ 101" they admit that "AI" patents are just bogus software patents but promote these fake patents anyway. To quote the relevant part:

Subject matter eligibility for patent under 35 U.S.C. €§ 101 has been a particularly hot topic since the 2014 Supreme Court decision in Alice Corp. v. CLS Bank Int'l. Section 101 patent eligibility has particular relevance to AI and digital health since they often involve computers and/or data processing whose mere presence, reference, or implication in claims frequently give rise to subject matter eligibility questions during patent prosecution as well as during litigation after patent issuance.

The breadth and gravity of current €§ 101 issues has been explored elsewhere and is beyond the scope of this article. In general, Alice and subsequent lower court decisions have made it more difficult to get patents issued with claims involving computers and/or data processing. It is therefore important to consider potential patent eligibility concerns under €§ 101 during the patent application drafting process in order to preemptively address these concerns as much as possible before the application faces any challenges during prosecution or during litigation as an issued patent.


To be quite frank, the abundance and overuse of the term "AI" by patent lawyers is a cause for concern. The only more worrying thing is seeing administrators at the EPO and USPTO adopting the term as well; they use that as a sort of synonym for software patents and we're asked to believe that they grant such patents for the betterment of society or manage patents using "AI" (they just mean things like search and inferences) to expand human understanding rather than make staff redundant, only to be replaced by vastly inferior performance.

Recent Techrights' Posts

Last Week's EPO Strike Was the Biggest (Highest Participation Rate), Hours Ago General Assembly Discussed Next (Growing) Intensity of Strikes
Well done and well attended
 
The New Layoffs: 'Silent Layoffs', 'Secret Layoffs', 'Quiet Layoffs', 'Passive Layoffs' 'Stealth Layoffs', and Unannounced Layoffs Disguised as Return-to-Office (RTO Mandates)
The US needs to revisit and fix the WARN Act
EPO "Cocaine Communication Manager" - Part IX - Cocaine Addicts in Charge of the EPO Attacking Families of EPO Staff
Things like being high-profile and being a serious drug addict aren't opposites
What Feminism in Science Means (Codes of Conduct Don't Tackle the Real Issues)
Universality matters, more so in a project or community that's said to build the "universal operating system" (Debian)
SLAPP Censorship - Part 21 Out of 200: It's About Behaviour Online, Not How Much Money From Shadowy Third Parties Gets Spent on Lawyers and Two Barristers
75+ KG of legal papers, 2 cases, 2 barristers (one hiding in the metadata) and maybe two law firms (also hiding in the metadata) against two modest people in Manchester seems disproportionate and vindicative
Links 24/03/2026: "Airports on ICE" and "Have You Paid Your “Intuit Tax”?"
Links for the day
Gemini Links 24/03/2026: Slop Interview and Why Slop Makes Lousy Code
Links for the day
Richard Stallman to Give Public Talk This Thursday at the University of Bologna (Italy)
Hardly the first time he speaks in Bologna
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, March 23, 2026
IRC logs for Monday, March 23, 2026
Gemini Links 23/03/2026: "Mandatory" Bad Things and Dangers of Perfection Aspirations
Links for the day
SLAPP Censorship - Part 20 Out of 200: All Roads Lead to Rome and to GAFAM Funding
Now about 10% into this series
Mass Layoffs at HashiCorp, IBM Hid Them
The media did not mention those layoffs
Microsoft Downgraded on Concerns (Lack of Growth) Amid Silent Layoffs in 2026
The press isn't functioning anymore
Links 23/03/2026: Gulf Water at Risk, Heatwave in Malaysia
Links for the day
Slop Means False, New Article by Cybershow
"We are living in a world that is rapidly divesting from reality."
Debianism election 2026 community poll created, everybody can vote
Reprinted with permission from Daniel Pocock
Links 23/03/2026: "Shocking Peter Thiel Antichrist Lectures", Robert Mueller Remembered
Links for the day
The Scandal Bigger Than IBM/Red Hat Layoffs is the de Facto "Media Blackout" About Those Layoffs
So we have a media crisis, aside from the economic crises
Gemini Links 23/03/2026: Geminispace/Elpher Enhancement and the Cerberus Cinco
Links for the day
Fear is Not a Legitimate Factor
Smart people know that trying to prevent moral people from doing the "Right Thing" will backfire
Fuel Autonomy and What It Teaches Us About Software Autonomy (or Software Freedom)
Need we wait until a "software Pearl Harbor" or protect ourselves proactively by weaning ourselves off of GAFAMware?
Scheduled Maintenance This Coming Wednesday
Other than that, all is the same and we carry on as usual
Most Press Articles About IBM Are LLM Slop, Sometimes With Slop Images
IBM basically laid off almost 1,000 people last week [...] At the moment about 75% of the 'articles' we see about IBM (in recent days) are some kind of slop
Links 23/03/2026: Security Breaches, Energy Shortages, Another SRA Scandal, and Patents on Nature
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, March 22, 2026
IRC logs for Sunday, March 22, 2026
Streisand Effect and Justice
This weekend this site has served over 8 million Web requests
Gemini Links 22/03/2026: "Woman of Tomorrow" and "First Steps in Geminispace"
Links for the day
SLAPP Censorship - Part 19 Out of 200: They Were Ill-prepared for Tough Questions in Cross-Examination
Very ill-prepared for the deteriorating situation caused by their clients' past behaviour towards many people, including high-profile figures who offered to testify
The Media Sold Out to Slop Bros
If you wish for the hype to stop, then stop participating in it
EPO Strike a Week From Now, After That Strikes Can Become Permanent
A week from tomorrow there will be another strike
The Only Non-IBM Staff in Fedora Council/Leadership Attacks Booting Freedom (Just Like the Master Wants)
Last week IBM laid off almost 1,000 people in Confluent and the media didn't write anything about it, so don't expect anyone in what's left of the media to comment on Fedora's demise and silent layoffs at Red Hat
Just Like a Founder of XBox Said, Microsoft XBox is Collapsing, Management Continue to Jump Ship
Nowadays Microsoft tries to promote this idea that Windows is XBox and XBox is Windows
Links 22/03/2026: Slop Triggers Emergency at Meta, Energy Prices Rise Sharply
Links for the day
Links 22/03/2026: Microsoft 'Open' 'AI' in Legal Trouble (Plagiarism, Distortion, Misrepresentation); Facebook/Meta Kills Off "Horizon Worlds"
Links for the day
Racism Dressed Up as "Choice"
Racism is rampant at IBM
Probably an All-Time Record
Our investment in our own SSG is paying off
Your Site Should Implement Its Own Search (Before It's Too Late)
GAFAM was never trustworthy
Gemini Links 22/03/2026: LLM Slop Attacks USENET, Announcing Pig (New Game in Gemini Protocol)
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, March 21, 2026
IRC logs for Saturday, March 21, 2026