Bonum Certa Men Certa

The US Patent System: Where One Wastes Years in Court and Spends $8,000,000 in Lawyers' Fees Fighting a Bogus Patent

The US patent office has essentially externalised the costs to the public

Alice road



Summary: A roundup of news about software patents in the US and what they have led to, owing in part to the USPTO's declining patent quality (leaving others to clean up its mess)

THE ridiculously low standards of the USPTO come at a huge cost, albeit this cost is considered an externality by this greedy patent office. Unless this mess is sorted out soon, the US might have nothing left but large multinational corporations with tens of thousands of patents each, as opposed to agile startups with none.



Elliot Harmon says that this one particular software patent, which can possibly be demolished quite easily using Alice, has been used in the Eastern District of Texas and it's the "Stupid Patent of the Month" (as per the series of the EFF). To quote:

This month, a company called Voice2Text Innovations filed patent infringement lawsuits against two voice over Internet protocol (VoIP) services, Phone.com and Vitelity. Voice2Text has no website or any other information online; its sole asset appears to be US Patent No. 8,914,003—unsurprisingly, a patent on using voice recognition to convert a voicemail into a text message. Equally unsurprisingly, it’s filed those suits in the Eastern District of Texas, whose patent-troll-friendly practices we’ve thoroughly documented on this blog. The Voice2Text patent is so absurd that we had to honor it with our Stupid Patent of the Month award.


"Unless this mess is sorted out soon, the US might have nothing left but large multinational corporations with tens of thousands of patents each, as opposed to agile startups with none."In order to destroy such a patent one might need to spend quite a lot of money rather than settle. Consider this new story titled "Court Orders Plaintiff to Pay Defendants’ $8 Million in Attorney’s Fees in Patent Row". That's a lot of money; patent lawyers grossly overcharge and the system plays in their favour by inducing additional costs at many levels (e.g. appeals), thus favouring those with bigger budgets or deeper pockets, leaving small players vastly more vulnerable. To quote the concluding words: "This case illustrates that the courts will take strong action when faced with baseless claims, hidden or altered evidence, and misleading statements made to the court or opponents. It also serves as a strong reminder to consider your counsel carefully, and the advice that they provide, or a plaintiff may have to pay its own fees and those of the defendant, which in this case amounted to another $8 million."

This case may be the exception rather than the norm, but judging by NewEgg's decision to stand up to trolls, it often costs literally millions and there is no guarantee of the plaintiff -- upon loss -- bearing the cost of the defendant's (victim's) legal bills. NewEgg actually made history by managing to compel a patent troll to pay its victim's legal fees some months ago, owing to an unusual decision by the judge.

"NewEgg actually made history by managing to compel a patent troll to pay its victim's legal fees some months ago, owing to an unusual decision by the judge."Patently-O has just recommended Lynda J. Oswald's relatively new paper which criticises the term “strict liability” and whose abstract says: "In 1995, the Federal Circuit summarily attached the label of “strict liability” to direct patent infringement, even though that term does not appear in any U.S. Patent Act of the past two centuries. The catechism of “strict” direct patent infringement liability is now so well-engrained in patent doctrine that it is easy to lose sight of how recent the advent of this terminology is in the case law, and how troublesome application of this standard has proven, even to the Federal Circuit, which created it. The first patent act (1790) preceded the emergence of tort law as a distinct field of U.S. common law (mid-1800s) by a half-century or more, and the products liability explosion of the mid-twentieth century radically altered our understanding of strict liability. The implications of this forgotten timeline are profound. “Strict liability,” particularly in its modern formulation, is not a neutral, descriptive term. Rather, the term evokes social policy choices and balancing considerations that may be appropriate within the case law context of products liability or abnormally dangerous activities, but which are incongruous and inapposite in the statutory context of patent law. Deeming direct patent infringement to be a strict liability leads to two unanticipated and unwelcome effects. First, the adoption of the “strict liability” label for direct patent infringement liability improperly inflates the courts’ role in setting direct patent infringement liability standards and suggests — incorrectly — that patent liability is a case law construct, when in fact it is a statutory construct. Second, the “strict liability” label improperly shifts the focus of the patent infringement inquiry from the Patent Act’s protection of the plaintiff’s exclusive property interest in its patent right toward a value-laden examination of the social utility of the defendant’s conduct vis-à-vis the injury to the patent holder. Jettisoning the “strict liability” label for direct patent infringement would reframe the analysis and debate, moving direct patent infringement liability out of a policy framework and back toward its proper statutory setting."

"PTAB is increasingly being used to correct the USPTO's errors, but why not dig deep into the root of the problem and simply tackle the USPTO's unrestrained greed?"What's worth noting here is that a lot of the risk has been passed to defendants, not to plaintiffs, who often rely on poor quality examination by the USPTO (resulting in the grant of bogus patents). PTAB is increasingly being used to correct the USPTO's errors, but why not dig deep into the root of the problem and simply tackle the USPTO's unrestrained greed?

CAFC won't be coming to one's rescue after PTAB, according to one example just put forth by Patently-O. To quote Patently-O: "The Federal Circuit has denied en banc review of decisions in four inter partes review proceedings brought by Gnosis. Federal Circuit had previously affirmed the Patent Trial and Appeal Board’s IPR determination that the challenged Merck and SAMSF patent claims were invalid as obvious."

The relevance of this was ever more apparent when Bass gamed the value of companies by invalidating key patents -- a move which IAM now conflates with patent trolls by comparing Bass to trolls. Spangenberg is a patent troll, Bass invalidates patents. They have a very different modus operandi, but as IAM put it, the connection lies within a team-up: "Since teaming up with former IPNav CEO Erich Spangenberg to launch their first US inter partes review (IPR) in February last year – challenging a pharmaceutical dosage-related patent owned by Acorda Therapeutics – Kyle Bass has become one of the IP business world’s highest-profile players. Whether he should primarily be seen as antagonist, protagonist or the antihero somewhere in-between depends on your point of view. What is certain is that the validity actions being pursued by him and Spangenberg through their Coalition for Affordable Drugs – targeting patents belonging to pharmaceutical ‘originator’ companies – rocked the post-America Invents IP landscape."

"The USPTO's poor quality -- a trap which the EPO growingly falls into -- helps trolls, strategic predatory investors/hedge funds, and monopolists which do a disservice to innovation."What is worth noting here is that if the patents invalidated upon request by Bass were not granted by the USPTO in the first place, none of this would have happened. The USPTO's poor quality -- a trap which the EPO growingly falls into -- helps trolls, strategic predatory investors/hedge funds, and monopolists which do a disservice to innovation. Watch IBM's patent chief having the audacity this weekend to complain about the system which David Kappos from IBM made worse (in IBM's favour; IBM pays him now for lobbying), furthermore complaining about a system outside his own country (Australia) because it attempts to improve patent quality, as we noted yesterday.

Recent Techrights' Posts

Brett Wilson LLP Has Just Lost a Case of Its Biggest Client "IN THE COURT OF APPEAL (CIVIL DIVISION)"
Is Brett Wilson LLP proud of such clientele?
Gary Smith Says Brett Wilson LLP Engages in SLAPP Against Him Over LinkedIn Post, "This is the Streisand Effect in Real Time"
"Lawyers who front SLAPP‑style threats on behalf of powerful institutions are not “defending reputation”; they are abusing legal process to intimidate and silence legitimate public‑interest scrutiny."
 
Links 01/07/2026: Apple and Microsoft Price Hikes, Political Catchup
Links for the day
Parroting the Script of RAs and PIPs, "Buyouts" and Layoffs by Any Other Name
Over time people will find out just how many people "leave" IBM
Slop Gives No Real Edge, It's Just Falsely Marketed That Way (FOMO)
Plagiarism in some measurable form is always bad, irrespective of what we call it
The Microsoft-Owned Media Shows What Spin Microsoft Will Use Amid Mass Layoffs
Microsoft says goodbye to over 10,000 workers this month
The Media is Shooting Its Own Foot by Peddling Slop and Spam
Nobody wishes to read slop; as soon as people realise "the news" (or "news site") is LLM trash, they will walk away
Gemini Links 01/07/2026: Wild Flowers, Slop, and Waystone Tools
Links for the day
Links 01/07/2026: Bending Spoons Makes an 'Exit' ("Going Public"), US Supreme Court Rules on Many Issues
Links for the day
Misattributing Blame, the Core Issue is Slop
that issue has nothing to do with Bash
Microsoft: Layoffs Are an Investment
Sales of the console will take another plunge and debt will skyrocket
Links 01/07/2026: MElon (Elon Musk) "Confronted With List of People He Has Killed", Microsoft Ignores Union, Chooses "Bloodbath"
Links for the day
The Register MS: Paid-For SPAM Advocating Chinese Colonialism in Africa, Not Even a Disclosure (as Before)
Does The Register MS recognise what this piece is promoting and who for?
Techrights Never Defended Rapists
In the past, I and others got falsely accused of "defend[ing] a rapist"
"Regular Silent Layoffs and PIPs" at Microsoft, According to Microsoft Insider
Many people leave without a fuss, only a signed NDA
Gaming Companies Help Promote Rootkits ('Anticheat') and Help Microsoft Take Control of People's PCs
The industry in its current form acts a bit more like a cabal of power-hungry companies that actively try to back-door everything and smear people who oppose that
IRC (Internet Relay Chat) Turns 38 Next Month
IRC did well because over 300k users are on significant networks (simultaneous, also counting bots and cross-network overlaps)
opensourceforu.com is a Slopfarm, It's Not "Open Source" and It's Not "For U"
Slop "For U"
DRM and Ownership
We now even have PCs that "expire"
GNU/Linux Reaches 6% in North America
Tomorrow around 10AM we'll see what preliminary data they get for July
IBM Layoffs Still Happening in 2026, They're Just Not Being Reported
The demise of IBM accompanies the demise of the media
SLAPP Censorship - Part 124 Out of 200: The Court Deems My Wife Connected to the Case of the Serial Strangler From Microsoft, Invites Her to the Hearing Last Week
Brett Wilson LLP does not play by the rules
Paying Severance to Staff Laid Off by Microsoft Too Expensive for Microsoft Now?
When companies earn such a bad reputation (not paying severance to people they discard) it lowers morale even further
Microsoft Mass Layoffs Due to Money Problems (Debt, Lack of Money to Complete Payroll), Not "Hey Hi"
If Microsoft later comes up with some "Hey Hi" narrative, then immediately reject it
Stop Conflating Free Software With Slop Plagiarism and Time-wasting
Even decades ago people could use "compute" for lots of fuzzing, then file away false or unaudited reports using bots
What Security Means
Security does not mean asking Microsoft for permission
Microsoft May be Losing 10,000+ Workers This Month
Here's the quick math
BSN Senior School Leidschenveen is Shutting Down and What That Means to the European Patent Office (EPO)
Follow-up meeting with Site Manager VP1 on school matters
Gemini Links 01/07/2026: Keeping (Relatively) Cool plus Adventures in Solar, Camp Snap Cameras and XTEINK X4 Ereader Reviews
Links for the day
European Patent Office (EPO) Series: Different Strokes For Different Folks
Organisation operating in two parallel universes
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, June 30, 2026
IRC logs for Tuesday, June 30, 2026
GNU/Linux Measured at 4.4% by statCounter, Even More by analytics.usa.gov
GNU/Linux has fared well
Getting Skyped: Closure of Studios Microsoft Bought
wait till July and the mass layoffs outside XBox
Several Waves of Red Hat Layoffs This Year, Is This Still Going on Under IBM?
The PIPs and NDAs hard to get a clear picture
Sabine Hossenfelder Versus IBM Scamming Shareholders
IBM has become a garage of BS
Some XBox Layoffs Underway, At Least Five Studios to be Shut Down
Insiders are in a state of panic
Gemini Links 30/06/2026: Music Theory, Addiction, Clown Computing
Links for the day
Links 30/06/2026: France Recorded 1,000 Excess Deaths During Heat Wave, Slop Replaced by Human Staff
Links for the day
WordPress Becoming What We Feared It Would Become
WordPress and other such bloatware (WordPress used to be fast and light) are moving in the same trajectory that GAFAM leads
People Given the Totally Wrong Idea That "Secure Boot" is About Security (It's the Opposite, It's About Handing Control Over to NSA/Microsoft)
"Secure Boot" with capital "B" is conflating compromise with security.
Today The Register MS is Publishing Fake Articles About "AI", 100% of All "Content"
Maybe the media is dying because it is selling its soul [...] The Register MS has no standard
America Has Cost Europe Too Much
Countries ought to be controlling all their own systems
GAFAM Debt Will Surge, in July We'll Know by How Much
Do not fall for slop or sloppy narratives
Call for European Patent Office (EPO) Whistleblowers
The European Patent Organisation (EPO) might not reform the Office
400-Page US Federal Court Against Abuses by Google, Microsoft and Front Groups That Abuse Volunteers for American Corporations
There are 386 pages in total (in the US claim)
Projection Tactics - Part IV: SLAPP by Americans Against Techrights (UK) to Hide Serious Abuses Against American Women
"PRs need to stop being complicit in suppression of information via SLAPPs"
Five Years Ago, After We Broke the Story About Richard Stallman Rejoining the FSF's Board, All Hell Broke Loose (for Me and My Family)
They generally seem to target anyone who thinks Richard Stallman (RMS) should be in charge or thinks alike about computing
Projection Tactics - Part II: Causing "Serious Harm" to Many People (Even Animals)
Narcissists and sociopaths are like that
Too Many "Marketers on the Payroll" at IBM, Selling Impossible Products That Cannot be Delivered or Will Never Deliver
IBM is rotting away
Media Says Microsoft's (XBox) Layoffs May be Record-Breaking
think somewhere in the range of ~5000 for gaming/XBox alone
Sirius Open Source's Latest Report: Fake (False) Number of Staff, Almost No Money in the Bank, Overdraft, and Growing Debt (About £100,000 More Borrowed)
massive (and still growing) debt
Links 30/06/2026: What's Wrong With EU Age Verification, RSA Keys with Many Zeros
Links for the day
This is Not a Security, This is a Circus
Security does not mean "asked Microsoft for permission"
Communities Need Strong Leadership, Not Dictators Like IBM
Leadership in Free software is not ownership [...] Fedora will only last as long as IBM can somehow make some money out of it or leverage it to attract sharecropping
Patents Are Not "Cash Cows"
People who deliberately don't understand patents (or believe lies about them) will fail to understand how the world works (or does not work)
Sad Lives of People Who Think Women Are Just Sexual Toys (All They Have is Money)
money is still a man-made concept and life is finite
SLAPP Censorship - Part 123 Out of 200: Why Violence Against Animals Matters
Starting tomorrow (Wednesday) we'll begin telling stories about what happened last week
EPO Staff Union's (SUEPO) The Hague Committee, With Help of Lawyer, Challenges Lack of Rewards for Hard Work
The EPO is not about granting valid patents anymore. The horse-trading corrupt officials just see the EPO as some thing that "prints money"
Massive EPO Demonstration Today
It'll start in about 6 hours
More Layoffs in Microsoft's PR Department, Even Ahead of 'D-Day'
Notice they are not even waiting for the official date (nor week)
European Patent Office (EPO) Series: Photo-Ops Galore and Suspicions of Influence-Peddling
coverage of the EPO's Croatian junket
Gemini Links 30/06/2026: Music and Broken Hearts
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, June 29, 2026
IRC logs for Monday, June 29, 2026
Gemini Links 29/06/2026: Using More of GPLv3+ and Merits of Security by TOFU
Links for the day
Links 29/06/2026: Lemote Yeeloong Laptop With OpenBSD, Slop Ruins Code/Development
Links for the day
Antisocial People With No Computer Science Background Are Ruining the Technology Space (Like Officials With No Experience in Patents Destroyed the EPO)
This is a real issue; it needs to be widely recognised and tackled
DDoS Attacks Are a Crime and They Only Increase Interest (Intrigue) in Their Target
Information cannot be DDoSed out of reach/existence, except temporarily
Pushing to the Top
Publishing is about exposing corruption
Whistleblowing and Retaliation by Microsoft Workers Against Microsoft Seems Increasingly Likely
some will go to the press, looking to expose some shenanigans
How Long Can a Company Delay Its Financial Report That Likely Confirms Exodus of Staff, Growing Debt, and Other Problems?
Brett Wilson LLP was meant to release its annual report some time early this month
SLAPP Censorship - Part 122 Out of 200: Garrett's Solicitors Confirm That Garrett is Ban-Evading and Spying on Our IRC Network
his solicitors basically acknowledge this
European Patent Office (EPO) Series: Networking With the National Delegates
António Campinos with a prime opportunity to network with the Administrative Council delegates and lobby for his reappointment
PIPs and "Retirements": IBM Layoffs in Anything But Name
That former Red Hat (now IBM) staff threatens to put my wife and I in prison is worse than cruel
Contact Members of the EPO Administrative Council, Tell Them the EPO (Office) Became a Disgrace and an Enemy of Europe's Citizens
If you live in Europe (not just the EU, even Turkey is included), please contact your delegates
The World Needs GNU/Linux for Security, Turn Off "Secure Boot" (It's the Opposite of Security)
They call it "Secure Boot", but what does it mean to say "Secure" when you actively opt for back doors controlled by Microsoft, the FBI, and many more parties?
In Signal of Weakness or Phasing Out XBox (Not Sustainable, According to the CEO) Microsoft "Pauses New Third-Party Game Pass Deals"
Moments ago
Two Pieces About "AI" This Morning Were Paid-For SPAM at The Register MS
The Register MS is the "Tech News" publisher you can pay to promote your company and even key-word-stuff pages for SEO purposes
Week of Microsoft Layoffs, Maybe Record-Breaking Scale
They will mislead about the scale
Links 28/06/2026: More Om Malik Eulogies, Cloudflare Promotes Web Browser Monocultures
Links for the day
IBM's Alderon as "Silent Layoffs", Not Just Bailout From Taxpayers
Seeing through the noise
'Modern' Web: "Stop! You Are Browsing Too Fast!"
Can the Web ever recover from this?
Pensions Tied to Ponzi Schemes Are Themselves Ponzi Schemes
Pensions are becoming more like that as well
Laptop Bricked After Microsoft Certificates Expiry
Is "Jim" dead?
Monoculture in Europe as National (or Continental) Security Threat
We need more browser diversity
Canada 5-0: GNU/Linux Rises to 5.0%, Windows Rapidly Falls to New Lows
Will we be seeing 6-0 (6%) by year's end and will Microsoft be shown two red cards?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, June 28, 2026
IRC logs for Sunday, June 28, 2026
Gemini Links 29/06/2026: Sansieviera, HiFi, and Self-Signed Certificates
Links for the day