Bonum Certa Men Certa

Software Patents Deathwatch: Panic in the Patent Microcosm as “Since Alice, the Reject Rate for Patents for Payment Technologies is Above 90 Percent.”

"Look! Dead dolphins!" (how the patent microcosm tries to frame the demise of bad patents)

Dead dolphin



Summary: With the Patent Trial and Appeal Board (PTAB, part of AIA), the International Trade Commission (ITC), the Court of Appeals for the Federal Circuit (CAFC) and even the Supreme Court (SCOTUS) showing disdain for software patents time is running out for patent examiners and lower courts that still pretend such patents sometimes have merit

THE USPTO's examiners now face the challenge of PTAB. It's professionally embarrassing to be proven to have granted patents in error, so the examiners cannot simply ignore Alice, not any longer. "On USPTO Oversight," Patently-O wrote yesterday: "I am generally in favor of additional Congressional oversight of the U.S. Patent & Trademark Office – this is especially true because members of the House and Senate Judiciary Committees tend to be smart, well informed, and act with intention to improve the patent system.* Although partisan politics do come into play, much of the focus tends to be on real issues and real solutions. The oversight process forces additional USPTO transparency and is the standard mechanism for getting information from Executive Agencies. On this point, I will note that the information exchange is often done in the background lead-up to the actual hearing — thus, although a hearing might not be too exciting or informative, the associated deadlines force the new communications."



We are overwhelmingly in favour of having oversight affecting examiners at every patent office, as otherwise the profit motive takes over and quality control is virtually abolished (until the late and expensive stage which is a lawsuit in the court/s). Management of every patent office too needs to be subjected to scrutiny. The USPTO's former Director, for example, has become somewhat of a lobbying giant, disgracing not only the Office but the entire system (he is now lobbying on behalf of large corporations in favour of software patents and against Alice, i.e. against a Supreme Court's ruling).

"Management of every patent office too needs to be subjected to scrutiny."According to Mr. Loney from New York, "143 PTAB petitions [were] filed in August, down from 157 in July and 2016 high of 176 in June. Monthly average for year now 140.8 petitions." Here is his full analysis (partly behind paywall), showing that PTAB activity has been increasing over the years, throwing out a lot of software patents (which courts would throw out anyway). As time goes on it ought to become apparent also to holders of such patents (not just their rivals) that these patents are worthless piles of paper and not even PTAB will be needed to prove it, let alone the courts. "The number of Patent Trial and Appeal Board petitions filed in August was slightly above 2016 average," Loney wrote. "The month also saw notable Federal Circuit decisions on common sense, motions to amend and claim construction [...] The 143 Patent Trial and Appeal Board petitions (PTAB) filed in August was down from 157 in July and the 2016 high of 176 in June. The monthly average for the year is now 140.8 petitions."

Up-to-date statistics regarding software patent invalidations in the courts of the United States (mostly lower ones, i.e. friendlier to plaintiffs than CAFC) got published last night. "June, July and August showed an uptick in the number Section 101 decisions from April and May, the majority of these being motions to dismiss and judgments on the pleadings," the expert notes (he has been tracking this closely for years). "The rates of invalidity holdings continue to be steady: 70% overall, and 66.3% in the district courts. Success on motions on the pleadings is up to 68.1%. We've recently started tracking ITC proceedings as well, as shown above in the last row. Three of the five holdings of invalidity recorded above involved direct competitors and counterparties, Fitbit and Jawbone. In March 2016, Fitbit invalidated Jawbone's fitness tracking patents in an ITC proceeding brought by Jawbone (ITC 337-TA-963). In July, Jawbone returned the favor and successfully invalidated Fitbit's patents (ITC 337-TA-973); the ITC judge in the latter decision even relied upon Fitbit's arguments that it made in its own motion against Jawbone."

"That seems like wonderful news, but sites of patent law firms portray that as terrible news (to them it is)."We previously covered these rulings from the ITC, which certainly seems to be software patents-hostile. According to this new article, "above 90 percent" of patents on payment technologies (such patents are a subset of software patents) are dead/dying. Thanks to Alice! "Since Alice," says the article, "the reject rate for patents for payment technologies is above 90 percent. This is a development that many contend has been crippling the innovation in this space. However, one company CardinalCommerce has secured one, and according to many lawyers, if someone can manage to get an e-commerce patent in this environment, it is worth a lot."

That seems like wonderful news, but sites of patent law firms portray that as terrible news (to them it is).

Here is a new paid-for article, published in MIP by the patent industry last night. Having seen MIP becoming somewhat of a Battistelli/EPO platform, we worry they're going to do more of those "Sponsored posts" (at least this time there's disclosure). This one particular article speaks of telematics patents post-Alice and says "the patentability of such inventions could be impacted by the Supreme Court’s 2014 decision in Alice Corp Pty v CLS Bank Int’l, because inventions that arguably can be performed by humans are not patent-eligible subject matter under 35 USC €§ 101 (134 S Ct 2347, 2354-55 (2014))."

Well, so be it. These patents should never have been granted in the first place. If patents (applications) never get granted, then they cannot be used for litigation or even for shakedowns, where the accused fears having to go to court not because of the outcome but because of the legal fees, obviously prohibitive unless one works for a large company.

Recent Techrights' Posts

Microsoft a Top Sponsor at Red Hat Summit (IBM Selling Proprietary Spyware and Back Doors in a "Red" Trench Coat)
They both work for Microsoft
New 'Interview' With - or Talk Coverage of - Richard Stallman in the European Union
automated English translation
Gemini Links 20/05/2025: LLM Scraper Bots in Gopher and "Starmer and the Somewheres"
Links for the day
Skype Fell Off a Cliff (Microsoft Killed It), All Microsoft Has Left Now is Slop and Spaghetti Code
"This isn’t about AI. This is a puppet show to drive stock prices up and down."
Slopfarms (Machine-Generated Fake News Sites Authored by Bots With Slop Images) Spread GNU FUD
This isn't about Linux (GNU doesn't run just on Linux)
United States Federal Government's Digital Analytics Program (DAP): GNU/Linux Users Represent Close to 6% of Visitors This Year
How far has GNU/Linux gotten? Very far!
The "LLM Ouroboros of Shit" is Complemented by Even Worse Phenomena Caused by Microsoft's Contribution of SPAM and Pollution
Microsoft became a world leader in promotion of LLM slop
 
Microsofters Targeting the Wife of the Critic of Microsoft
false claims and loaded statement
Links 20/05/2025: "Bankrupt 23andMe Just Sold Off All Your DNA Data" and "Free Speech Warriors" MIA
Links for the day
Openwashing of Windows, Back Doors, Persistent Surveillance, Keyloggers, Screen Loggers, DRM and So On
WSL is not "Linux", it's Windows
IBM Mass Redundancies Likely This Coming Thursday
We're not in a position to judge if that's true or false
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, May 19, 2025
IRC logs for Monday, May 19, 2025
The Official SUSE Blog Uses LLM Slop to Compose Fake Articles Promoting Microsoft and Azure
even a little slop spoils the broth
The LLM Ouroboros Phenomenon
Fact #1: over time slop gets worse (training set is like some blurry JPEG). Fact #2: People's "smell" for slop improves over time, as they 'train' on slop and can detect it based on prior encounters. Put 1 and 2 together.
Links 19/05/2025: Charges of Blackmailing Over Son Heung-min, Chad Opposition Leader Detained
Links for the day
Gemini Links 19/05/2025: Ableism, Silicon Monkeys, and More
Links for the day
How We Defeated DDoS Attacks
One of the best things one can do is migrate to an SSG
Microsofters Issuing Threats to Microsoft Critics Who Blog About Microsoft
So far we see that their "legal strategy" revolves around trying to discredit people like Theodore Ts'o
Links 19/05/2025: Political Catchup and CISA Advisories
Links for the day
TheLayoff.com Has Begun Deleting Trolls/AstroTurfers Infesting the IBM Section to Discourage On-Topic Discussion About Culls and Maladministration (Bad Strategy)
Moderators have realised there's a problem
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, May 18, 2025
IRC logs for Sunday, May 18, 2025
Gemini Links 18/05/2025: Five Years on Gemini and Atom Feeds over Gopher
Links for the day
Links 18/05/2025: F.D.A. More Sceptical of COVID-19 Vaccines, UK Charges 3 Iranian Nationals In Alleged Attack Plot Against Journalists
Links for the day
Gemini Links 18/05/2025: "Finally Upgraded" and "Rebooting"
Links for the day
There Are Days or Occasions Where gemini:// Requests Almost Exceed http(s):// and Gemini Protocol Isn't Even 6 Yet
Gemini Protocol turns 6 one month from now
Abundance of Good Code, "Just Like Air."
Richard Stallman's seminal manifesto and foundational (practical) work on GNU gave us a very solid system that facilitates productive work without concerns over spyware
Messages in TheLayoff.com Drowned Out by LLM Slop (Comments Focused on Replying to Bot-Generated Provocation)
apparently shaking hands with nazis isn't as bad as calling your git repository's main branch "master"
The Importance of Full Disclosure and Transparency Online
there will be full transparency, as always
Slopwatch: Slopfarms and Serial Sloppers Still at It
Apparently Google is too understaffed to figure that out
Links 18/05/2025: Decreased Prospects of Science Careers, Disappearance of Journalists
Links for the day
Microsofters Have a Long History Trying to Take Down Techrights by Sending Threats to Webhosts
picking on women
Links 18/05/2025: Science, Censorship and European Commission Taking on Monopoly Abuse by Microsoft
Links for the day
Gemini Links 18/05/2025: Šibenik and SFJAZZ Historical Archive
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, May 17, 2025
IRC logs for Saturday, May 17, 2025