Bonum Certa Men Certa

In the United States, the Patent 'Industry' is a Dying Breed and China Adopts This Destructive Force

This IMF chart shows that the US is still doing fine compared to China

IMF chart



Summary: The decaying patent microcosm, or the pipeline of low-quality patents and frivolous lawsuits these entail, loses its grip on the US; China, much to the astonishment of people who actually create things, is attempting to attract that ruinous microcosm (which preys on real, producing companies)

THE world changed a lot in recent years. Probably for the worse.



On the patent front, however, the world is improving, especially in the US. The only exception to this seems to be the emergence of 'zombie' patent portfolios, offloaded by the truckloads onto trolls. The concern about the fate of software patents in the US is very real. The patent microcosm is furious and there are staff cuts, too. They're becoming increasingly redundant.

The EPO and the USPTO may still be granting software patents, but fewer of these will be deemed eligible in the courtroom; fewer people will even bother filing. The numbers already speak for themselves. Litigation is down sharply.

"We are growingly worried about and frequently confronted with buzzwords as means of patenting software, in essence misleading patent examiners into granting software patents (in defiance of Section 101)."From the patent maximalists who try to convince us that more patents mean more innovation (even computer-generated patents and other awful ideas) comes this latest suggestion of "Automated Analysis of 101 Eligibility" (Alice et cetera). This is pseudoscience and a waste of time, but for lawyers with no background in the sciences this may still seem worthwhile. We previously remarked on all sorts of proprietary software packages whose marketers vainly claim to be able to asses the value/worth of patent portfolios based on text alone. Facts don't seem to matter to these people. They even compare patents to "assets". That's beyond laughable and it totally misinterprets the very essence of patents.

We are growingly worried about and frequently confronted with buzzwords as means of patenting software, in essence misleading patent examiners into granting software patents (in defiance of Section 101). These patents are disguised as "cloud", "AI", "IoT" and all sorts of other gobbledygook. Apparently, based on this new article from Nick Beckett and Matt Pollins in CMS (China), "cloud" gets used as a loophole even in China. "New patent examination guidelines are friendlier to software patent owners," they explain and then there's this (the opening paragraph alone uses the word "cloud" five times):

China is in the middle of a rapid shift towards cloud technologies. Execution of the 13th Five Year Plan will deliver substantial investment into cloud computing and the sector is undergoing unprecedented growth. Meanwhile, organisations operating in this digital economy face an increasingly complex intellectual property (IP) environment, as China becomes a global IP centre and scales up IP protection, enforcement and penalties for infringement. Indeed, the number of cloud-related IP lawsuits in China grew 158% between 2011 and 2016. Against this backdrop, organisations face an important question: how can they take advantage of the enormous opportunities presented by the cloud in a way that manages this complex IP landscape? In this post, Matt Pollins and Nick Beckett from CMS look at the practical steps organisations can take to protect themselves and succeed in the cloud.


It's no secret that China is now very much open to software patents. It's also open to patent trolls (which typically rely on software patents). It's a terrible strategy and a doomsday scenario, yet one that SIPO gleefully sleepwalks into. Yesterday, for example, IAM said that the person in the business of patent Armageddon (SIPO official) urges universities give patents to patent trolls in order to 'assert' (i.e. sue). It's unreal, but here it goes:

This week the Intellectual Property Department here in Hong Kong played host to the annual meeting focused on IP developments on the mainland and its two Special Administrative regions (Macao being the other). One of the main topics was university tech transfer issues, and it was in this area that SIPO officials most frankly acknowledged the need for significant reform. Based on their comments, there could be big changes ahead in the field.

Patent filings by Chinese universities took a major leap in 2016, reaching over 300,000 in total. Applications for invention patents, which are typically the highest quality and most valuable rights, grew by about 28% year-on-year. These impressive numbers reflect huge investment in research on a national scale, as well as recent reforms that give universities more autonomy to set their own patent strategies.

But Deng Yiyou, a deputy division director in SIPO’s Intellectual Property Development & Research Centre, says that the vast majority of these rights are not being utilised. As many as 96% of them are never commercialised, he said, meaning no product has been produced encompassing the protected technology.

[...]

Even as patent litigation has skyrocketed in China, we have not seen university assertions on a scale that has registered among industry players. The same is largely true for government-run research labs. A case filed earlier this year by the Chinese Academy of Sciences, the biggest such entity, against US LED maker Cree could prompt more IP managers in government and academia to consider a more aggressive approach. If that happens, the risk environment for all tech companies in China will shift significantly.


So basically, China seems eager to replicate the very horrible system which the US tries hard to get away from (with growing levels of success).

Watchtroll, which watches out for the trolls' interests and promotes these interests, is obviously unhappy about where the US is going. It is still attacking TC Heartland (Supreme Court decision which hampers patent trolls) and it latched onto "China!" for the delusion of lost leadership (in trolling). Fake panic and fear-mongering again. The site is full of such garbage and almost every day one can find these rants.

"Watchtroll, which watches out for the trolls' interests and promotes these interests, is obviously unhappy about where the US is going."Watchtroll must be supremely envious, seeing how patent trolls are migrating to China and doing all their blackmail/mess over there. Good for litigation 'industry'? Sure. But at whose expense? Watchtroll is basically celebrating rubbish patents where these directly harm the respective disciplines, e.g. programming/development of software.

"In direct contrast to the United States," says Watchtroll, "innovators [sic] are finding that China is increasingly welcoming to business method and software innovations after it relaxed patent examination guidelines in those sectors earlier this year."

They mean programmers, not innovators. They tend to frame programs as "inventions" in order to warp this debate. And yet, in spite of China's lenient policy on software patents, there still aren't many internationally-recognised software companies in China, are there? They're mostly based in the US, in spite of (or because of) Section 101.

What's probably even worse to come out of Watchtroll in recent days is this attack on the Supreme Court. So having already attacked judges and insulted PTAB staff, Watchtroll is now attacking the US Supreme Court, calling it "activist court when reviewing patent law..."

"Watchtroll must be supremely envious, seeing how patent trolls are migrating to China and doing all their blackmail/mess over there."Disgusting!

This was published by Robert Stoll two days ago. Like David Kappos, he's an official-turned-lobbyist and he is still lobbying for software patents, just like the former employer of Kappos (IBM). Watch what IBM's patent chief is pushing at the moment. These are attacks on Section 101. Remember that IBM is close to Watchtroll and IBM also uses the IPO to water down Section 101 (they call it a "taskforce").

Quite frankly, all we have here is a bunch of panicking patent bullies and their lobbyists. They make a living out of telling people that they need more and more patents while suing these people over patents.

"As one can easily see, this underestimates the importance of patent quality and focuses instead on quantity (the mistake increasingly made by the EPO under Battistelli)."What worries us a great deal is that former USPTO officials such as Stoll and Kappos resort to this kind of cronyism. It's like there's no separation between industry and government; policies are just being 'tailored' for very rich people -- a direct departure from proper functioning and decency.

"Putting Yourself in the Shoes of a Patent Examiner" is a new paper recommended by the patent microcosm yesterday. The abstract (with our emphasis) says: "The mission of the United States Patent and Trademark Office (USPTO) is to ensure that the Intellectual Property system contributes to a strong global economy, encourages investment in innovation, and fosters entrepreneurial spirit. In order to ensure that the large volume of newly filed patent applications are examined in a reasonable timeframe, the USPTO has a system for determining the average amount of time an examiner should spend examining a patent application. Under the current production system, productivity is assessed based on Production Units (“PUs”) achieved relative to the Examiner’s production goal. The production goal is calculated for each examiner based on the number of “Examining Hours” worked in the evaluation period and quantitative values assigned to examiner seniority and complexity of the technology examined. To quantify “Production Units”, a Patent Examiner receives different “counts” for different tasks performed at different stages in prosecution. Understanding this examiner production system - also known as “count” system - is important at least because it educates a patent applicant on the system in which Patent Examiners operate. For instance, the Examiner production system underscores the importance of the events conducted in the early stages of patent prosecution. The goal of this note is to provide an overview of the system in which Patent Examiners operate by summarizing important aspects of the system currently used to evaluate the performance of a Patent Examiner."

"Wait and watch how China collapses under its own weight of patents."As one can easily see, this underestimates the importance of patent quality and focuses instead on quantity (the mistake increasingly made by the EPO under Battistelli). Moreover, it fails to take into account the likely virtue of a patent or its expected effect on economics. If a patent is granted to just give some company a multi-billion dollar monopoly on a life-saving drug, then maybe it's better off not granted at all.

Debates about patent scope will likely carry on like this. Sites like Watchtroll will approach anyone willing enough to bash the US patent system and insist that it needs to grant an infinite number of patents. If left unchallenged, these ludicrous theories of theirs might even be regarded as truthful.

Wait and watch how China collapses under its own weight of patents.

Recent Techrights' Posts

SLAPP Censorship - Part 115 Out of 200: Spending the Next Decade Writing About SLAPPs and Trying to Fix the System
It's the same industry that got paid by corrupt EPO officials to try to cover up the corruption
 
Greece Ought to Curb the Threat of Social Control Media
its national discourse seems to be run by an American company called Facebook
State of the GNU/Linux Desktop (and Laptop)
The time to advocate GNU/Linux is now
The 'XBox Narrative' Distracts From Destructive Cuts Across the Whole of Microsoft
Microsoft is preparing to lay off a likely record-breaking number of people [...] this isn't just an XBox problem
Microsoft's Stock Fell Nearly $200, But the Real Problems Are Just About to Begin
if they dump slop, what will they tell shareholders?
The Cyber Show on Starmer and Software Freedom
The Cyber Show's Andy has just explained why our departing national leader wasn't all bad
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, June 22, 2026
IRC logs for Monday, June 22, 2026
Gemini Links 23/06/2026: Girlrotting, Homeworlds at BGA, Slop Ruins Sites
Links for the day
A Lifetime of Whistleblowing
Ellsberg did not have an easy life, but it was a rewarding life with a rich legacy focusing on justice
European Patent Office (EPO) Series: A Man With Many Missions...
Campinos – accompanied by Gilles Requena and Patrice Pellegrino
Links 22/06/2026: Ubisoft Co-founder Dies, Americans Have Turned Against Slop
Links for the day
Links 22/06/2026: "The Sycophancy Machine" and "Port 22 Open for 54 Days"
Links for the day
When People Who Make the Most Money Are the Best "Boot Lickers" (Sucking Up to Jeffrey Epstein's Circle and the Dictator)
Sucking up to rich people may pay off
The Aim is Not Fame
Reposted from schestowitz.com
"Internally Important, Externally Irrelevant": IBM in a Nutshell
Right now its debt spins out of control and its stock spirals down the drain
SLAPP Censorship - Part 114 Out of 200: Thousands of Long Articles to Come, Properly Covering the SLAPP Industry in the UK and Its Modus Operandi
"Stowell described SLAPPs as ‘a stain on our legal system’."
Finding a Way to Get Paid to Improve LibreJS
So now we have more people resurrecting LibreJS and improving it
Microsoft Can't Even Wait Until July, Shutdowns and Layoffs Already Happening
Mashable speak of "a grim picture for the state of Xbox."
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, June 21, 2026
IRC logs for Sunday, June 21, 2026
Gemini Links 22/06/2026: Appreciating Simple Things, Perfect Summer Evening, IRIX, Vim and so
Links for the day
Chad's Move to GNU/Linux or the Point of Exceeding 5% "Market Share"
experienced centuries of being colonised
Gemini Links 21/06/2026: Dating Oaks, Paying With Cash, and "More on Withered Technology"
Links for the day
GAFAM is Drowning in Debt, GAFAM is Clearly Not Sustainable Anymore (It Runs on Borrowed Money and Bailouts)
The war and surrender in Iran will deepen the debt; we'll see the GAFAM reports in late July
GAFAM Was Never an Ally to Europe
Only 1 in 10 Europeans see US as an ally — study [...] military providers in "tech" clothing cannot be trusted
GitHub, LinkedIn, and XBox Will Finish Like Skype (Sustainability Crisis)
Skype should become a verb. When Microsoft 'Skypes' something it means it basically shuts it down with some temporal excuse/s.
Drowning in Garbage: AUR Shows That Too Much Low-Quality Software (Including Slop) is Bad for Everybody
What happened in AUR had happened elsewhere before and will happen again in the future
Links 21/06/2026: EU on Patented (Monopolised) Crops, Microsoft Software "Narcs on You to Your Boss"
Links for the day
Microsoft at 50 Follows the General Trajectory of Skype
How many years does Microsoft have left before payroll becomes impossible?
A Year After a Microsofter Took Over The Register MS It is Effectively a Content Farm With News as a 'Side Dish'
This is not journalism, this is spam
IBM Pays the Media and Cons Some 'Journalists' Into Participating in "Quantum" Spam
"The Boy Who Cried Wolf"
You Don't Need an 'App' for Your Birdhouse (Slopfondlers Come for Birds)
That they sell those things as "AI" really says a lot about how dishonest slopfondlers really are
SLAPP Censorship - Part 113 Out of 200: The United Kingdom is Not Turkey
Turkey is ranked almost worst in the Western World for press freedom
Cybersecurity Does Not Mean Asking Microsoft for Permission to Boot
There were very good and timely reasons to speak about the matter, including impending antitrust complaints against Microsoft
Links 21/06/2026: Bots from Alibaba Do Harm and Many Xbox Games Are Being Cancelled
Links for the day
5 Years After Release of Vista 11 Not Even One in 5 People Use It (in the US)
It doesn't look like Vista 11 will ever be adopted like prior versions and announcing a Vista 12 will mostly upset companies/organisations that only recently "upgraded" to 11
Gemini Links 21/06/2026: Boca Raton, Perfect Summer Day, and LLM Doing Things Poorly
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, June 20, 2026
IRC logs for Saturday, June 20, 2026