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

Red Hat's Owner is Called "America's Worst Tech Company" (IBM) and Microsoft's Liabilities Grow
Microsoft has about a quarter of a trillion (yes, trillion with a "T") in liabilities
How the SLAPPs From Microsoft Staff Are Connected to the Corrupt OSI, Whose Majority of Money Comes From Microsoft for Openwashing, LLM Hype, and Whitewashing GPL Violations During Class Action Trial
Let's explain how some of these things are connected
 
What Happened to the Open Source Initiative (OSI) Elections: Missed Deadline
they helped expose a number of other scandals
Links 12/05/2025: Measles Rising and Taliban Outlaws Chess in Afghanistan
Links for the day
Gemini Links 12/05/2025: Advice, Iorist Ethics, and Touchscreens
Links for the day
The Finances of GAFAM Aren't as They Seem
MICROSOFT FINANCIAL PYRAMID revisited
Links 12/05/2025: US Brain Drain and Reminder That "Microsoft's Lobbying Efforts Eclipsed Enron" (Fraud Coverup)
Links for the day
The Enshittification of Royal Mail (Post Office/Postal Services) Continues
Enshittification is a thing, not only in the digital realm
If the Gossip is True, Today Microsoft Has "Large M1 Meetings" to Discuss Almost 30,000 More Microsoft Layoffs in 2025
the claim is that Microsoft is preparing to lay off 10% of its staff
Microsoft Has a Long and Proven History of Funding Meritless Lawsuits Against Rivals and Critics (It Always Backfires)
It also looks like the solicitor used by two Microsofters to SLAPP us is being urgently replaced
Links 12/05/2025: Gardens and Kitchens
Links for the day
Links 12/05/2025: Media Being Attacked (New Forms of Attack on the Press), Many Data Breaches
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, May 11, 2025
IRC logs for Sunday, May 11, 2025
Links 11/05/2025: Pyotr Wrangel and Kubernetes With FreeBSD
Links for the day
What Happened to the Open Source Initiative (OSI) Elections: A Moment of Silence and Revisionism Amid US Government Investigation and Community Uproar
Not a word this month
Microsoft Florian Becomes Patent Troll, Arranges to Sue Companies (Extorting Money Out of Them)
From campaigner against software patents to paid Microsoft shill to "FOSS patents" (actually attacking FOSS) to revisionism as "books" (for Microsoft)... and now this
Links 11/05/2025: China's Fentanylware (TikTok) Tells Kids to Vandalise Schools' Chromebooks and Increased Censorship in India
Links for the day
You Need Not Be a Big Company to Defeat Microsoft If You Can Successfully Challenge Its Core "Ideas"
Maybe that's just a sign that the ideas of RMS have become too effective and thus "dangerous"
Gemini Links 11/05/2025: Yeeting Oligarch Tech, Offline Browsing
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, May 10, 2025
IRC logs for Saturday, May 10, 2025
One is Simply Doomed to Fail When Working for Violent Men From Microsoft and Attacking Women as Well as People Who Merely Expose Crimes or Report Real Crimes
Imagine saying to people that you "practice law" or "exercise law"
The Tariffs Are Accelerating Microsoft's Decline in China
Judging by the way things are going, there will be considerable adoption of GNU/Linux in years to come, China being one major contributing factor.
Control Your Systems, Control All Your Data
what does it take for us to control our own systems and data?
Misplacing Blame for Security Problems, Sometimes With LLM Slop That Blames "Linux" for Microsoft's Failures
Broken telephones and stochastic parrots beget plenty of Fear, Uncertainty, Doubt (FUD)
Links 10/05/2025: WW2 Revisionism, Further Tit-for-tat in India-Pakistan Conflict
Links for the day
Links 10/05/2025: Germany Considers Smartphone Ban in Schools, Right to Repair Bills
Links for the day
Gemini Links 10/05/2025: Git Server and Great LLM DDoS of 2025
Links for the day
Blizzard/Microsoft Unions Grow Ahead of Mass Layoffs at Microsoft, Apparently Starting Next Week (as Many as 30,000 Workers Laid Off by Year's End)
Microsoft already fired about 5,000-6,000 workers this year by our estimates; that's not counting resignations compelled through pressure (i.e. pushed, did not jump) and contractors
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, May 09, 2025
IRC logs for Friday, May 09, 2025