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

GNU/Linux is a Platform for Work (Usage Surges in Daytime)
GNU/Linux 15% in daytime
What I Learned in London
some ministers still help us in our fight for press freedom in the UK
At IBM, Workers 'Expire' Early ("Next Step" is 'Voluntary' Layoffs Decades Before Retirement Age)
It seems like the "new normal" is layoffs not existing or barely existing because companies hide them
Bluetooth and Wi-Fi on Gym Equipment Can Endanger Several Parties
Joy oh joy! Give us more "smart" things
Microsoft Silent Layoffs This Month (PIPs and More "Buyouts", Driving Out the Workforce), According to Insiders
They know it's happening because they see it and fellow workers talk about it, even if the media keeps mum
Omarchy is Already Dying
Same as the life cycle of slopfarms
A Vortex of Beacons (or "Bluetooth Everywhere" Vision)
If someone (or someones) calls you paranoid for taking about "beacon"-like functionality, there will be no lack of authoritative citations (e.g. Web links) they can be provided to prove them wrong
 
Links 16/08/2026: Ceuta Reports Social Control Media Used as a Weapon
Links for the day
Links 16/08/2026: Europe in Crisis of Droughts While Energy- and Water-Consuming, Pollution-Emitting Chatbots Are Spread by GAFAM (US) to Keep a Ponzi Scheme Going
Links for the day
We Need Rain, Not Chatbots
There's no "anti-AI" (it's not even AI), there's opposition to fraud, to plagiarism, and to companies that profit more when there's global warning (caused in part by their business activities)
SLAPP Censorship - Part 151 Out of 200: Dealing With Sleazy People and Companies That Steal (While Employing These Sleazy People)
we offer a quick summary and we're reflecting
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, August 15, 2026
IRC logs for Saturday, August 15, 2026
Gemini Links 16/08/2026: Sterrenkijker Releases, Solar Gemini Server
Links for the day
EPO "Cocaine Communication Manager" - Part XVI - The German State Does Not Enforce the Law Against European Patent Office Officials
It's not acceptable that Europe's second-largest institution can get away with crime time and time again
Germany's National Broadcaster (DW English) to Air Julian Assange Film This Coming Week
It seems rather sad that we live in a world where rich thugs can get away with so many horrible things
WordPress is Bloatware and Bloated Software Guarantees Security Incidents
This site turns 20 in about 11 or 12 weeks from now and it was never cracked, not even when it ran WordPress
Too Many Chiefs (or Chefs) at IBM, They Don't Know How to Run a Company (With a 100+ Year or Century-Old Brand Recognition Advantage)
It seems like a consensus opinion; some line managers or middle managers are too selfish or self-deceiving
Clacton's Election Was a 'Show Election'
At least some people squeezed out some "free press" out of this charade [...] That the media kept boosting parodies as the alternative/s to the bigot is a topic we wrote about a great deal over the past 3 weeks
Windows is Burning
Windows is the "burning platform" of the year
Gemini Links 15/08/2026: Stress, Jetlag, and GPU Hype (Waste of Energy for Amusement, Fake 'Currencies', and Now for Mass Plagiarism)
Links for the day
Links 15/08/2026: XBox Rotting Further, "France’s Top Court Strikes Down Ban on Social Media for Children"
Links for the day
SLAPP Censorship - Part 150 Out of 200: Always Independently Verify What People Claim to Be (or Find Yourself in a Jason Arday-Type Moment/Dilemma)
I'm not a cardiologist and Garrett was never a security expert
Links 15/08/2026: "There Is No A.I." (Slop Plagiarism Isn't Intelligence) and Its "Impact on the Environment Is Absolutely Horrifying"
Links for the day
Gemini Links 15/08/2026: Gratitudes, "Microflier" Drones, and Literate Programming
Links for the day
IBM's PIPs and RAs (Layoffs) Going on, Interns as 'Scabs'
It seems like a consensus (also in Reddit, we took a quick look)
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, August 14, 2026
IRC logs for Friday, August 14, 2026
Gemini Links 14/08/2026: Slower Internet, Logging Off Made Easy, and Human Code
Links for the day
Links 14/08/2026: "Mystery of Dark Oxygen", People Despise Slop, and Backlash Grows Against Fake Currencies (Energy-Wasting Scam Like Slop)
Links for the day
Free Publicity
They say there's no such thing as "bad press" or that every publicity is good publicity, sometimes free publicity
Farage's fears, media hijacked by-election, what really happened in Clacton
Reprinted with permission from Daniel Pocock
It's Friday. A Ton of People Departing From IBM and Red Hat.
A mere subset of people who announce this in public at Microsoft's LinkedIn
GNU/Linux and ChromeOS Beyond 11%
Combined with ChromeOS, it's already past and beyond 11%
Chatbots/LLMs Are the Next "Clown Computing", Pure Hype, a Serious Mistake
Programs that scan text and emit something similar (but full of errors)
Links 14/08/2026: Slop 'Music' Causing Problems, Slop Data Centre Contractor Unpaid (Massive Debt), and The Cyber Show Says We're "Colonised By Wankers"
Links for the day
Fake Growth of Social Control Media is Misleading
nowadays people look for alternatives - ones not controlled by MElon, CPC, and Kapo-Berg
statCounter: Windows Down to All-Time Low of 25%, Android Leads the Pack, GNU/Linux About to Leapfrog Apple, Overtaking MacOS
The situation was very different in past years
Microsoft's Mass Layoffs (Including 'Voluntary' Secret Layoffs) Take Their Toll on Seattle
How much longer can they hide their crises?
Planet Fedora ("Fedora People") is Just IBM Staff, Former IBM Staff, and LLM Slop
this is what Fedora boils down to now
Explanation of What Will Happen to Red Hat (and Other Acquired Companies) After August
In short, a lot will be scuttled; history shows it happens over and over again
SLAPP Censorship - Part 149 Out of 200: It Took a Long Time to Show What Jason Arday (at Cambridge) and Harvey Weinstein (in Hollywood) Really Were
Really bad when society endures abuse because the abusers silence their exposers
Gemini Links 14/08/2026: 32-bit RISC-V and BlackBerry
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, August 13, 2026
IRC logs for Thursday, August 13, 2026