Bonum Certa Men Certa

The Demise of Patent Trolls and Software Patents in the US Continued in 2018

Summary: With patent trolls' bankruptcy filings, advocates' departures and a decline in the number of granted US patents we're seeing a sort of recession if not depression in the patent microcosm; that being the case, we'll shift our focus to other things in 2019

THE year 2018 was a positive one for the US patent system if one skips the parts about Iancu's controversial remarks and moves at the U.S. Patent and Trademark Office (USPTO). Iancu has already made himself enemies among scientists and technologists, unlike law firms.



"Iancu has already made himself enemies among scientists and technologists, unlike law firms."Watchtroll's Quinn, who is connected to Iancu, is stepping down as editor after 2 decades. His site will stagnate and we'll no longer link to it. Patently-O's Crouch is barely writing anymore (maybe less than half what he did before) and he has just pointed out that the number of granted US patents decreased (as we expected) but not sufficiently as many fake patents like abstract patents are still being granted, contributing to the bubble associated with worthless patents (presumed to have value). "The USPTO has indicated that it “remains in normal operating status” despite the Federal Government funding crisis," Crouch added.

In 2018 we saw SCOTUS ruling in 'our' favour and 35 U.S.C. €§ 101 wasn't sabotaged in spite of many efforts. As a result of that, litigation 'businesses' perished. Here's a report from Ruth Simon about one patent troll that we've covered here before: "Shipping & Transit LLC sued more than 100 mostly small companies in 2016, making it the largest filer of patent lawsuits that year. But when the Florida company recently declared bankruptcy, it valued its U.S. patents at just $1.

"Its demise followed three cases where companies fought back and were awarded legal fees after Shipping & Transit decided not to pursue the patent claims against them. Judges in the cases awarded a total of more than $245,000 in attorneys’ fees and costs to businesses in 2017."

"Seeing that Watchtroll bashed SCOTUS at least 3 times this month (we're omitting links, but the bashing is even in those headlines), it's hardly surprising that Quinn steps down. All they have left is judge-bashing and court-bashing."This "bankruptcy filing," United for Patent Reform wrote, "shows how effective patent reform has been, and how it must continue."

It will. The EFF wrote: "Lobbyists for patent trolls and patent lawyers keep seeking to roll back the Supreme Court's crucial Alice decision. We expect those bills to keep coming in 2019, but we'll be there to fight against them."

By "lobbying" they also mean bribery by patent trolls, who are still a threat (incidentally, Microsoft patent trolls Intellectual Ventures and Finjan both lost important cases earlier this month). From the corresponding EFF post:

In 2018, technologists and users continued to be plagued by abstract, ridiculous software patents. The good news is there are more ways than ever before to fight back against those patents—some of them pretty effective.

Unfortunately, patent trolls and abusive patent owners are working overtime to knock down those recent improvements, and bring the patent system back to the proverbial “bad old days.” Before the Alice v. CLS Bank decision—four years old as of last June—it could cost millions of dollars just to convince a court to invalidate a single abstract patent. That was true even when those patents clearly described aspects of everyday life, like running a contest, displaying a menu with pictures, or teaching a foreign language.

Lobbyists for patent trolls and patent lawyers keep seeking to roll back Alice, promoting terrible legislation like the STRONGER Patents Act. Such proposals weaken our systems to challenge bad patents, and will hurt U.S. entrepreneurs and send innovation overseas. Despite that, we expect bills like that to come back in 2019, and we’ll be ready to fight back on behalf of startups and innovators.

Patent owners are pushing to neutralize Alice through the courts, as well. The most recent attempt is a case called Berkheimer v. H-P, in which a panel of Federal Circuit judges ruled that patent eligibility under Alice can require a full trial. This makes Alice much harder and more expensive to apply and, in our view, is inconsistent with the Supreme Court’s ruling. Last month, we asked the Supreme Court to take up the case and consider overturning Berkheimer.


Joe Mullin has meanwhile named "Stupid Patent of the Month"; the USPTO is making a farce of itself by granting these laughable software patents. As Mullin put it:

We’ve written many times about how the patent system is a poor fit for software. Innovation in the U.S. software industry happens despite, not because of, the thousands of software patents that are granted each year.

But software is not the only industry where patents make very little sense. In the 1990s, the Federal Circuit opened the door to patents on methods of doing business. While the Supreme Court tried to undo some of that damage, financial institutions are still hit with patent lawsuits. Many of these suits come from trolls that don’t produce anything. And yet, just as in the tech sector, there are some financial companies that keep heading back to the U.S. Patent and Trademark Office seeking a 20-year monopoly on some tactic or another.

This month, we’re highlighting U.S. Patent Number 10,147,140, which was recently granted to BNY Mellon Bank. The first claim of the ’140 patent uses a lot of financial jargon to describe an extremely simple process: checking social media for a particular event or statement, then making a trade based on that “investment triggering content.” One example of that: making a trade because someone put a hashtag in a tweet.

Even if this was a new product idea or investment strategy, it is not a new invention. The trend of stock market trading has been clear now for decades: automated trading has become faster and more computerized each year. BNY Mellon Bank did not invent computerized trading, social media, or anything else remotely technical. Rather, its patent proposes the idea of trading based on a social media event.


One can expect that a simple inter partes review (IPR) at the Patent Trial and Appeal Board (PTAB) would eliminate it; the Federal Circuit would likely not even consider an appeal.

In 2019 we intend to cover USPTO matters less than in prior years. Seeing how things are going, we feel like goals have been fulfilled. Iancu is not a judge and he's very limited in what he can do except grant even more bogus patents. Eventually the courts call the shots. Seeing that Watchtroll bashed SCOTUS at least 3 times this month (we're omitting links, but the bashing is even in those headlines), it's hardly surprising that Quinn steps down. All they have left is judge-bashing and court-bashing.

Recent Techrights' Posts

GNU/Linux is 486 in Ireland
4.86% that is
"Secure Boot" is a Security Problem, Not a Solution
These people don't try to improve security but to undermine security
Don't Talk to Bullies
This serious matter is still being examined by British authorities
 
Links 18/08/2025: LLM Reputation Damaged, Australia Catches Google Foul Play
Links for the day
Geeks Like GNU/Linux
The technical community seems to be consolidating and rallying around GNU/Linux
End of Reliable Media
it makes the world a worse place, it renders the Web a misinformation machine
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, August 17, 2025
IRC logs for Sunday, August 17, 2025
GitHub Won't Last Much Longer
Many things at Microsoft are going to go the way of the Skype (or "dodo"). GitHub will be among those.
We've Never Used Large Language Model (LLM)
we just never used an LLM
Gemini Links 18/08/2025: Retro and Endless Escape from the WWW
Links for the day
Working Whilst Away From Home
Decades ago being away meant all sorts of problems associated with workflows and connectivity
The Next Version of Windows Will Always be the Best (for Microsoft)
It's worse and slower over time
"End of the Smartphone Era" According to Jeffrey Epstein's Key Enabler
They call it "sour grapes"
Microsoft's Windows in Gabon: Still Moving Down
What is this Unknown? Who knows...
Links 17/08/2025: Strike Downs Air Canada, Postmortems of Putin's Red Carpet Summit
Links for the day
Links 17/08/2025: Slow Tools and Enshittification of YouTube
Links for the day
Links 17/08/2025: "The Performance of Power" and "My Undesirable Friends"
Links for the day
Growing Our Reach
Our goal was never "hits"
The Russian Vision of Technology
Russia's surveillance is very extensive
Sooner or Later Almost Everyone Will Know "AI" is Just a Go-To, Misused, Misapplied, and Grossly Overused Term of Liars and Con Jobs Who Ride a Ponzi Scheme
At the expense of people gullible enough to "invest" in this or take salaries/bonuses in the form of "stock" (tied to a Ponzi scheme)
The Register MS Has Begun Using Slop Images
It's not clear when it started; but it's definitely getting worse [...] Worst of all are 'articles' about slop that are themselves slop
Reddit Funded by Microsoft
Reddit is merely a filter and we knows who controls that filter (using money)
When It Comes to Technology, Mozilla and Firefox Are Illiberal
Last month in Planet Debian we saw one more person explaining to everyone how to "turn off" DRM in Firefox and hide the pop-up/s
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, August 16, 2025
IRC logs for Saturday, August 16, 2025
The Open Source Initiative Has Many Scandals, We'll Try to Summarise Them All
Open Source Initiative (OSI) hates facts
Open Source Initiative (OSI), Wikipedia, Molly De Blanc, and Censorship/Reputation Laundering
OSI is like SPLC. The old name remains, the mission changed
Gemini Links 17/08/2025: Misunderstanding "Geminiverse" and Let's Encrypt
Links for the day
Links 17/08/2025: Breaches, Layoffs, and Scams
Links for the day
The Case for Software Freedom in Europe Becomes Stronger as GAFAM and the US Become Allies of Those Who Invade Europe
"One would think that both sides of the pond would be very interested in this valuable commons and work to not just protect it but cultivate it further, rather than work to saw the legs from under it by advancing software patents instead."
Slopwatch: Google News, LinuxSecurity, LinuxBSDos.com, and Garbage From Brian Fagioli
nowadays when people search the Web or when one researches some topic (looking not just for news in Google News) one is increasingly likely to land on a fake 'article' spewed out by some Microsoft LLM
Gemini Links 16/08/2025: Back After Hiatus and News Aggregators in Geminispace
Links for the day
Links 16/08/2025: mRNA Being Abandoned, Putin Plant Flags in Alaska, Faces No Sanctions
Links for the day
Links 16/08/2025: Science Besieged, Confidentiality Standards Breached
Links for the day
Links 16/08/2025: Loners and Vacation, Climate Issues
Links for the day
Links 16/08/2025: Chatbots Bad for Kids, Software Patents Apple Battle
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, August 15, 2025
IRC logs for Friday, August 15, 2025
Slopwatch: WebProNews and Google News Promoting Fake Articles About "Linux"
Google News is being flooded by these slopfarms, so when Linux news is being sought online (via Google News) many people will read bots that spew out FUD
Original European Patent Convention (EPC, 1973), Routinely Violated by the European Patent Office, Now in Geminispace
hundreds of thousands of European Patents must be immediately revoked
Gemini Links 16/08/2025: Politics and Alhena 5.2.8
Links for the day