Bonum Certa Men Certa

Eye on Patents: Broken System as Shown by New Evidence

Broken



Summary: Additional signs of a dysfunctional system which grants and manages patents too poorly

We lack the time to cover all the patent stories which seem to matter, so here is just a list of links.

Groupon vs. MobGob: Patent Battles Hit The Daily-Deal Business

Groupon filed a patent lawsuit against MobGob in Chicago yesterday. It’s a counter-attack against MobGob, which started the fight when it sued Groupon in California, together with a shell company called CY Technology. They accuse Groupon of infringing a patent they were issued in March called “Method of Community Purchasing Through the Internet.” This, according to the patent, is “a community purchase model where a product can be purchased a particular price only if enough buyers are willing to purchase at that price.” Or, put another way, Groupon’s entire business model.


Sham Reexamination Requests and Federal Preemption

This is an interesting case that is pending before the Federal Circuit. The focus of the appeal is whether a patentee has any cause of action for a third-party's baseless filing of a reexamination request. The patent laws themselves offer no remedy so Lockwood turned to California State Court – alleging that the Sheppard Mullin law firm should be held liable for Malicious Prosecution, Interference, and Fraud by filing their reexamination request. Lockwood argues that "[Sheppard Mullin lawyers] chose to violate the strict duty of candor required before the USPTO by making deceptive misrepresentations about the nature of purported 'prior art' in two Requests for Reexamination. Respondents filed the Requests to gain a tactical advantage during infringement litigation, in furtherance of their stated aim of putting Lockwood 'out of business,' and without any reasonable basis in patent law."


5 Questions With … Brightidea’s Matt Greeley (never noticed Inventors Digest before)

ID: What are some of the elements needed to grease the skids of innovation?

MG: If you want a fluid exchange of ideas, you need a stronger, more efficient intellectual property regime. It’s important to our competitiveness as a nation that we work through this. The state of software patents is a mess. It takes too long. There’s an asymmetry of getting and defending a patent. This could go the way of FedEx. I mean, the U.S. Postal Service wasn’t keeping up and the postal service was privatized. It could come to the point where there’s a privatization of the IP regime.

ID: Wow. Never heard that one before. Might make for an interesting article down the road. What’s your favorite invention?

MG: Paper or pen and paper. It’s a meta invention. It supports more inventions. How many inventions were first conceived on paper? I always look for meta inventions or ask myself, ‘What’s the more important thing I can work on?’


WHAM! — Target of False Patent Marking Suit to Argue Bounty Hunting Scheme Unconstitutional

The National Law Journal reported online yesterday that Wham-O, creator of such iconic toys as the Frisbee€® and the Hula-Hoop,€® has alerted the U.S. Court of Appeals for the Third Circuit that it will challenge the constitutionality of 35 U.S.C. €§ 292, the section of the federal patent law which empowers any person to sue any entity which marks their products with a false (i.e. expired) patent number. What is particularly interesting about the challenge is that Wham-O succeeded in getting the bounty hunter’s claim thrown out at the federal trial court on the grounds that the complaint alleged no concrete injury. In the aggressive and innovative spirit of Wham-O’s founders, rather than simply argue that the district court’s reasoning was correct, Wham-O’s lawyer is taking a “best defense is a good offense” approach. Whether the Third Circuit will rule on an argument not addressed by the lower court is uncertain.


China pushes home grown patents of questionable value



In an otherwise interesting article, the Economist ended a story on the Chinese government's campaign to produce more innovations and resulting patents with this, "If ideas are protected, Chinese people will produce more of them" link here.

Yet the rest of the article doesn't really support that conclusion. People are obtaining lots of patents, issued only since 1985, but whether they are innovations worthy of a patent remains open to question. It turns out there are two kinds of patent, a sort that requires a determination of novelty and is good for 20 years and the other, a finding of utility and good for only 10 years. The latter are far more numerous.


Patent Office: Part of the growth in the regulatory burden

Can you patent financial innovations? (Felix Salmon is always insightful)

It turns out that RHR is technically an invention of 2009, not 2010, if you look at its patent application. Loan Value Group hasn’t actually been awarded the patent yet—Gandel was a little bit ahead of himself there—but LVG’s Frank Pallotta told me that applying for a patent on the idea “was the first thing we did” after setting up the company, and that the patent application preceded substantially all of the time and effort that LVG put in to building RHR.

Pallotta is an expert in mortgages, not in intellectual property, but he did say that he hadn’t personally ever come across a finance company applying for a patent on its idea before.

What’s more, it’s generally accepted that financial innovations can’t be patented: it’s an argument that Sebastian Mallaby regularly rolls out, for example, to defend and explain the secrecy of hedge funds. If you can’t apply for a patent, then the only way to stop people copying you is to operate in utmost secrecy.


When the government confers monopoly rights to drug companies (Christian Zimmermann links to the story below)

Drug firms accused of exploiting loophole for profit

The BBC reports about a drug that was available cheaply, got tweaked in a minor way and now available only in a much more expensive format. While the story is not about patenting, it is very similar to it as it is about licensing a drug, in this case for use in the UK, and excluding the old, yet still perfectly effective, drug from use. This is exactly what a patent does, and there are countless examples of pharmaceutical companies doing exactly these very marginal improvements to extract major rents from sick people.


Politicians pledge to change gene patenting laws (we covered gene patents before [1, 2])

Politicians from all sides of politics say they want changes to Australia's gene patenting laws, but it is unclear which major party will act first.

At a Cancer Council breakfast, members of the Government, the Opposition and independents spoke about the need to change the law so gene sequences cannot be patented.

Oncology Professor Ian Olver says currently one company can stop others from conducting tests on a gene that they discover, slowing down cancer research.


There's also the story about Amazon and business method patents, not just software patents or patents on nature.

Patent trolls do not always get their way as Jagex helps show after a long a tiring lawsuit. Gamasutra was the main source of this story, cited by many others. [via]

A U.S. District Court judge has dismissed a patent infringement lawsuit brought against RuneScape developer Jagex, but not before the UK studio spent a purported seven figures defending itself.

Judge David Folsom last week dismissed online chat company Paltalk's claims that Jagex infringed on Paltalk patents relating to online network communications, according to court documents obtained by Gamasutra.

"After reviewing source code for the RuneScape video game made available by Jagex, Paltalk and Jagex agree that the RuneScape video game does not infringe the patents-in-suit," wrote the judge. "Accordingly, judgment of non-infringement is entered in this case."


"If the US doesn't fix its patent system," wrote Groklaw's Pamela Jones about it, "I can foresee a time when companies will choose to avoid a US presence. And companies that choose to settle bogus suits should think about what they are doing to others." Cory Doctorow wrote about this too:

RuneScape devs refuse to cave in to patent trolls



[...]

Jagex, the UK game dev behind RuneScape, refused to be intimidated by patent trolls Paltalk, who claim a broad patent on what amounts to all online multiplayer gaming. Microsoft settled a similar bogus claim last year, giving Paltalk a war-chest and a precedent with which to continue with nuisance suits against other MMO companies, including Sony, Blizzard, Activision, and others.


This is an excellent example of how broken the system is. Spending millions of dollars to prove one's innocence is simply unacceptable. It's favourable to patent trolls and rich companies with deep pockets.

Recent Techrights' Posts

Banning Things Versus Teaching People the Reason/s to Shun/Boycott Those Things
Prohibition has its limits
 
Links 07/06/2026: Java Needs Seawall, Egypt Blasted for Arbitrary Detention of Activists
Links for the day
SLAPP Censorship - Part 100 Out of 200: Interlude and Outline of the First Half, 3+ Months That Got Us Death Threats Connected to Brett Wilson LLP (and Cyber Attacks That Are Difficult to Attribute)
This week we plan to have a good time
Links 07/06/2026: NASA's Mars Maven Declared Dead, Telegram Founder Pavel Durov Bemoans Russia's Crackdown
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, June 06, 2026
IRC logs for Saturday, June 06, 2026
Gemini Links 07/06/2026: How to Train Your Dragon (2010) and "Six Days of Play"
Links for the day
Links 06/06/2026: 'Epstein Problem' in Board of Directors of Microsoft, Surveillance Giant Google Under Legal Threats for Online Misuses
Links for the day
Software Freedom Takes a Lot More Than Coding
some of the roles in the Free software community that don't receive (m)any grateful words
Ubuntu is Losing to Other GNU/Linux Distros
"Linux Mint"
Old Articles Explaining That Patents - Especially Software Patents - Are Bad for Innovation
We've omitted more than 50% of the articles we had gathered as candidates for inclusion
European Patent Office (EPO) Crisis: Huge EPO Strikes, Profound Corruption, and Cocaine Use by Managers Tolerated
These strikes won't be ending any time soon
Why GNU and FSF Will Choose AV1 Over AV2 (It's More Widely Supported)
for the foreseeable future they'll stick with AV1
Mass Layoffs (RAs) and PIPs (Excuses to Sack) at IBM: Insiders Tell No Relation to Actual Performance
If many thousands are impacted by this, then certainly it is newsworthy
Links 06/06/2026: LinkedIn Infested With Spies, Ethernet WiFi Router On Pi Pico 2W
Links for the day
25 Years With PalmOS
That my Palm PDA still works in 2026 (not in mint condition but close to that) says a lot about the "build quality" of gadgets 20+ years ago
Why We Dumped Online Shopping (Groceries)
subsidies kept the "online" stuff artificially cheap
Microsoft Fell to All-Time Low in Monaco Last Month
So says statCounter anyway
Lawsuits That Don't Work
Not as expected anyway
SLAPP Censorship - Part 99 Out of 200: Graveley and Garrett Seem to Have Crashed Brett Wilson LLP (Worse Than Taking Russian Oligarchs as SLAPP Clients)
a state of disarray
Microsoft Has Spent Months Preparing Lists of People to Cull in Massive Wave of Layoffs (Allegedly Start of July)
There is some consensus that we're weeks away from mega-layoffs at Microsoft
Gemini Links 06/06/2026: "Competing" With LLMs and "Automation of Any Kind"
Links for the day
Links 06/06/2026: 'Linux' Foundation Openwashing Slop on Microsoft's Payroll, Ukraine Wants Permanent Ceasefire With Russia
Links for the day
50% of the 'Gains' Made by "Quantum" Hype Already Evaporated
"It was all hype about quantum nonsense. Heading back to reality now. Expect sub-$220 after earnings release next month."
Heap of Trash Online, Not Just the Fault of LLM Slop But Enabled by Slop
Google News has just promoted a pair of prolific slopfarms
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, June 05, 2026
IRC logs for Friday, June 05, 2026
Links 05/06/2026: Lawyers in Trouble for Citing Cases That Don't Exist (Slop Too Bad to Justify Costs; Even It It Did Work, It Would Still be Far Too Expensive)
Links for the day
Gemini Links 05/06/2026: Bears in the Streets, WWII Revisionism, and Westworld
Links for the day
IBM is "Making an Exit". Only the Executives Will Get Rich.
failure disguised as success
Microsoft's LinkedIn Called "Dying Platform" by One Who Worked There
The co-founder of LinkedIn has just stepped down too
GAFAM (Google, Amazon, Facebook, Apple, Microsoft) Layoffs Are Due to Surging Debt, or About 120 Billion Dollars Borrowed in One Year Alone
It's well above 150 billion dollars if one adds Oracle
2026 is the Year of Blockchains, Says IBM's CEO a Decade Ago?
"falling upwards"
After One Jeffrey Epstein Associate 'Leaves' Microsoft's Board Another Jeffrey Epstein Associate Steps Down, Workers Concerned About the Mass Layoffs
How many more loans can Microsoft receive? Those loans are becoming increasingly risky.
IBM Exploits Overambitious, Hungry Young Men to Help the "Great Quantum Hype Campaign" (Pumping the Stock Based on Deliberate Misinformation or Outright Disinformation)
The boot-licking campaign is live...
What Will Likely Happen When the Slop Bubble Pops (and When It'll be Widely Accepted That It Popped)
all the "most successful" slop companies are so deep in debt
The Register MS is Part of the Problem, It's Publishing "AI" SPAM Because it's Paid by Chinese Military-Connected Firms
Given that The Register MS is run by a Microsofter (since last summer), destruction seems inevitable
Most Coders Used to be Women, Not Men (and Men Who Dropped Out of College Now Plunder Everything They Can)
"Ethics For Hackers"
IBM's CEO Does Not Use GNU/Linux, So Why Did He Suggest Buying Red Hat Only to Lay Off Its Workers, Market Slop Instead of Linux, and Sack UNIX Professionals?
Shortly after IBM had bought Red Hat and there were mass layoffs we pointed out that Red Hat's CEO was not using GNU/Linux
If You're Not Focusing on Software Freedom, All You'll Get is Slopware and Buzzwords
If you're not focusing on attaining Software Freedom (and remember "Linux" is just a brand), then you're losing sight of the goals that actually matter
Red Hat/IBM: Microsoft is Our Partner of the Year
Red Hat is a really bad gravy
Gemini Links 05/06/2026: Enshittification of Institutes for Project Management, Codebases Contaminated With Slop, Personal Stories
Links for the day
Communicating With Freedom - Part II - Quibble Breathing New Life Into LibreJS
Notice how work on one thing led to thousands of lines of code added to a mostly dormant (but nevertheless important) project
Slop Has no ROI, an Economy Built on False Assumptions of Slop is Doomed
we're all going to suffer from this Ponzi scheme
Links 05/06/2026: More GAFAM Layoffs, Google Faces Regulatory Crackdown in UK Over Plagiarism in "AI" Clothing
Links for the day
Rumour That Layoffs at Microsoft Will Kick Off on July 1st, 2026 (Impacting 10,000 or More Workers)
this is what the rumour mill or the word through the grapevine is
Mission:Libre, Which Teaches Young People Free Software Ideals, Needs Financial Backing
plea for assistance with Mission:Libre
The Slop Ponzi Scheme is a Problem and Threat to All of Us (Even Those Who Don't Invest in or Use Slop at All)
This problem is systemic, not contained
"Blind Justice" Examines the Solicitors Regulation Authority (SRA) Turning a Blind Eye to Abuse by British Solicitors
We have some jaw-dropping examples of how the SRA does not do actual regulation - to the point where its staff does not actual work and does not look into any evidence at all!
7 Days From Now the FSF's Founder Gives a Talk in Bern, the FSF Has Just Advertised This
Meanwhile the FSF (or GNU) processes and uploads many recent talks by RMS
European Patent Office (EPO) Series: Down But Not Out – Costa's Comeback
he managed to secure a top-level EU position in June 2024
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, June 04, 2026
IRC logs for Thursday, June 04, 2026