04.14.18
Posted in America, Deception, Europe, Patents at 5:21 pm by Dr. Roy Schestowitz
Summary: The epidemic of buzzwords and/or hype waves that are being exploited to dodge or bypass patent scope/limitations, as seen in Europe and the US these days
THE granting of software patents seems to have become routine at the EPO — to the point where large law firms publicly assert that it’s now easier to get such patents from the EPO than from the USPTO. It’s a travesty because software patents are unofficially forbidden in Europe. It’s like they swapped roles. Good for the US, bad for Europe.
Watch what the EPO has just formally said: “European patent applications related to smart, connected objects are rising rapidly, achieving a growth rate of 54% in the last three years.”
“It’s a travesty because software patents are unofficially forbidden in Europe.”They have tagged this “Industry 4.0″ (buzzword) and “4IR”, which is what the EPO calls software patents these days, so they basically brag about granting bogus software patents. This is where supposed ‘growth’ comes from: bogus software patents.
We aren’t bashing EPO examiners; we know they’re primarily victims of really terrible management. Battistelli destroyed the EPO and he'll be receiving two more years of salary as a bonus for it. There’s no justice in this world. If there was, he would be detained like his padrone.
Anyway, some good people remain at the EPO. They’re technical people, i.e. they’re not top-level management (Team Battistelli is almost consistently nontechnical and under-qualified).
“We aren’t bashing EPO examiners; we know they’re primarily victims of really terrible management.”The other day Shiri Burema and Rene van Duijvenbode (NLO) wrote about EPO oppositions again, this time too — like the last time (very recently) — in a sponsored self-promotional ‘report’ at IAM. EPO oppositions, as we noted here before, skyrocketed. It’s not a modest incline but an explosion. These oppositions come from stakeholders and they represent strong opposition to a lot of patent grants. Patent grants are being disputed by the thousands!
The Opposition Division at the EPO has in fact just thwarted a bad patent. The company with a stake in it issued a press release as a response to that with a slightly modified headline reprinted here. To quote:
In its official opinion, the opposition division of the European Patent Office found the Turzi blood separation patent, which is licensed to Regenlab, to be invalid on the grounds of added matter, lack of novelty and lack of sufficient disclosure
[...]
In this preliminary opinion, the opposition division of the EPO found the Turzi patent to be invalid on the grounds of (i) added matter, (ii) lack of novelty, and (iii) lack of sufficient disclosure. With respect to the prior disclosure issue, the Opposition Division of the EPO found that “it is shown beyond any reasonable doubt that the product was available prior to priority, a prior use had taken place and the features of the product could be investigated.”
This is actually the “happy ending”; how many times are staff assigned/belonging to the Opposition Division unable to properly deal with this due to heavy workload? As we pointed out before, the number of oppositions skyrocketed; the Opposition Division did not grow proportionally as far as we’re aware. What does it mean? That simply means that many bad patents will continue to slip in and some legitimate oppositions slip through (fail).
“That simply means that many bad patents will continue to slip in and some legitimate oppositions slip through (fail).”Examples? Evidence? We have some new anecdotal ones…
The EPO wrote this a couple of days ago: “How relevant is patenting to the world of AI? That’s one of the topics at this event in Munich…”
Well, “AI” is what the patent microcosm often calls software patents these days; this is done in order to disguise the fact that it’s nothing but patent-ineligible algorithms. AI is just that. Earlier today we wrote about “blockchaining” of software patents at the EPO. But there are other hype waves and tricks, “AI” is just one of which.
“Well, “AI” is what the patent microcosm often calls software patents these days; this is done in order to disguise the fact that it’s nothing but patent-ineligible algorithms.”Taking a new example from the US, see the patent microcosm writing about “Artificial Intelligence” and “AI” (both in the headline) in relation to a “medical device” (also in the headline). It sounds like a familiar trick; call algorithms “AI”, then say they run on a “device” and add words like “medical” to make it sound like life is at stake. Judge Patrick Corcoran had dealt with a case similar to this just before he was attacked by Battistelli.
Here’s another new example, found just earlier today. “In biopharma,” it says, “patents are everything. In tech? Not so much. Which is why it was unusual to see a company that’s trying to turn software into medicine announce this week that it’s bagged several patents.”
“Judge Patrick Corcoran dealt with a case similar to this just before he was attacked by Battistelli.”“A digital medicine company tries to adopt pharma’s patent game,” said the headline, attempting to sort of conflate two separate disciplines. Having come from the software world and earned a Ph.D. in Medical Biophysics, I think I have reasonable grasp/understanding of both. Quite frankly, this is nonsensical. What next? Saying that DNA is “code of life” and thus the equivalent of computer programs? This kind of tiresome journalism, whose goal is to glorify patents (all of them), merely discredits patents. It makes people ask all sorts of ‘funny’ questions. Questions like, “can thoughts be patented?” (or life itself)
Here’s another new example about something called the “Silver Edison Award”. Calling an award after the patent troll who was more of a businessman than an inventor? Edison is not what people are led/left to believe. It’s almost like mythology.
On the subject of software patents, watch what China’s SIPO has just done; it has just granted more software patents because they don’t really care about patent quality over there. From the announcement:
Says it received patent licenses (No. ZL 2015 10624219.3, ZL 2015 1 0611519.8), for USB device monitoring method and device based on USB interface granularity, and 32-bit progress and 64-bit progress alternate injecting method and device
Well, they use the word “device” several times, but it’s really about monitoring. Should monitoring something be patent-eligible? In China, anything goes.
“What next? Saying that DNA is “code of life” and thus the equivalent of computer programs?”Network analytics? Well, that too can become a patent, apparently. Never mind if it seems like it’s another case of bogus software patents (“KDE was patented as the first real-time…”) and the US has Alice. How about this new one from SIOS? The USPTO has just granted more dubious software patents because the applicant (mis)used the word “apparatus” (the typical loophole). From the self-promotional press release:
U.S. Patent No. 9,772,871, titled “Apparatus and method for leveraging semi-supervised machine learning for self-adjusting policies in management of a computer infrastructure,” is the first of eight core innovations developed and implemented in SIOS iQ and covered by this patent. It validates the ability of SIOS iQ to perform unsupervised learning of an environment and its behaviors for use in IT operations for purposes such as automating performance root cause analysis, while permitting human input to be used to adjust its models.
There’s no hardware there.
“Calling an award after the patent troll who was more of a businessman than an inventor?”Speaking of loopholes like “device”, “apparatus” or “medical”, how about greenwashing? The EPO does quite this a lot nowadays. Patents are being painted as “good for the environment”. Gareth Dixon from software patents proponent Shelston IP Pty Ltd has just published this ad (‘article’) titled “Making use of expedited examination for “cleantech”” (buzzword again).
“In recent years,” he says, “IP “buzzwords” have included superconductors, gene patents, business methods and computer software. Society’s ever-increasing environmental awareness now dictates that “cleantech” is the latest vogue.”
“Patents are being painted as “good for the environment”.”He himself admits that these are “buzzwords”. We appreciate the honesty — something we rarely saw at Shelston IP Pty Ltd. They’re perhaps the most vocal lobbyists for software patents in Australia and New Zealand. We wrote about them many times before.
As another popular buzzword, consider “cloud”. Unified Patents has a new report about trolls (“NPEs”) with software patents that are disguised as “cloud”. They are striking hard as “the volume of Cloud litigation increased more than 33% from 339 cases (between 2014 and 2015) to 454 cases (between 2016-2017) during the same period that overall patent litigation posted a 42% decrease,” Unified Patents explained some days ago. From the “Overview”:
In stark contrast to recent filing trends, the volume of Cloud litigation increased more than 33% from 339 cases (between 2014 and 2015) to 454 cases (between 2016-2017) during the same period that overall patent litigation posted a 42% decrease. From 2012 to 2017, NPE litigation activity for Cloud technologies remained consistently high (greater than 92% of all Cloud litigation) and amounted to a total of 1,058 cases over the last 5 years. Litigation involving various Cloud technologies fluctuated and notably, Cloud litigation involving Storage & Synchronization increased from 7% (2016) to 27% (2017).
The CCIA too has just bemoaned patent quality in the US, showing an “[i]llustration of a metal rose from a design patent” and then stating:
In an ideal world, patent examiners are perfect neutral arbiters. They find the best prior art and always make the right decision as to whether an idea is new and entitled to a patent. In this world, we wouldn’t need inter partes review or validity challenges in court—examiners would get it right the first time.
The reality, of course, is that examiners are humans. They make mistakes. They miss prior art or are unable to access it it. Some are better at the job than others. And, according to a new study from Yale’s School of Management, just like other humans, they sometimes exhibit biases. In particular, the study concludes that examiner biases result in fewer and narrower patents being granted to female inventors.
Given these sorts of flaws in examination, along with the structural incentives to grant marginal patents and the opportunities to improve patent quality identified by the GAO, the first priority for the Patent Office’s new Director should be to focus on improving examination.
Sometimes we’re amazed at how shallow design patents can be. Copyright law should cover these instead. Not patent law.
“Patent maximalism is a global problem, but we’re disappointed to see the EPO falling for it hook, line, and sinker.”The bottom line is, patent quality must matter. Growth in patents just for the sake of growth is not the yardstick to go by or the goal to strive for.
Patent maximalism is a global problem, but we’re disappointed to see the EPO falling for it hook, line, and sinker. The EPO used to be far better than this. █
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Posted in Europe, Patents at 4:06 pm by Dr. Roy Schestowitz
Erosion of patents/staff retention rates and corrupt management plague the patent office once known as the best in the world (now known as perhaps the most corrupt)
Summary: A rather pessimistic but likely realistic outlook for the European Patent Office (EPO), which seems unable to attract the sort of staff it attracted for a number of decades
THE quality (or skills/experience level) of EPO recruits has taken a massive dive. It’s a deterioration that EPO insiders keep complaining about. It’s not just a decline in patent quality but also the abilities of examiners. Many are leaving only to be replaced by far less experienced people. Just see what people who come for a job interview are saying. Some of them are rather shocked.
“Many are leaving only to be replaced by far less experienced people.”“Making the right decisions on patent grants requires a high level of expertise,” the EPO wrote a few days ago, “so the EPO provides a two-year training programme for newly recruited examiners.”
With layoffs in the making, one must wonder if there’s any future for them (or what kind of future). It’s worth noting that the management too is of bad quality; a lot of managers are simply friends and allies of Battistelli (some appear to have been hired owing to family connections). How about that Croatian bully who was hired by Battistelli and had his contract renewed at his proposal? The only thing EPO gets from Croatia seems very dodgy officials who censor the Croatian media. To put things in perspective, Croatian media wrote some days ago that Croatian patents are something like a thousandth of what Germany gets. To quote:
In 2017, Croatian researchers and innovators have registered just ten patents.
In five years, Croatian researchers and innovators have registered just 55 patents with the European Patent Office (EPO). Last year, they filed only ten patents, fewer than any other EU member state, reports Večernji List on April 12, 2018.
Yes, ten patents. And they have a Croatian man as a Vice-President whose only accomplishments appear to be cheating his way in and bullying staff.
“And they have a Croatian man as a Vice-President whose only accomplishments appear to be cheating his way in and bullying staff.”Also noteworthy is this new EPO tweet in which they said: “Successful companies use patent information for a variety of purposes, such as finding out about existing technologies.”
“By “finding out about existing technologies” they make themselves legally LIABLE for ENHANCED damages in patent trials against them,” I responded. “IOW, better to never read patents. Large companies say so. They refuse to even look.”
Unfortunately, the EPO in 2018 is out of touch. It has been lying every single day so far this month. It’s misleading about SMEs and about the Boards of Appeal. It barely even mentions the UPC anymore, but an account associated with that has just said: “Unitary Patent & Unified Patent Court 2018 Is everything ready for the launch of the #UPC in December 2018?”
“Unfortunately, the EPO in 2018 is out of touch.”Complete nonsense! Who even wrote such a lie? Just because they add a question mark at the end doesn’t make it OK. But this is about an EPO event, in which Team Battistelli will simply lie, as usual.
It’s worth mentioning that just before the weekend Edward J. Kelly and Regina Sam Penti (Ropes & Gray LLP) demonstrated poor grasp. They aren’t up to date or maybe they’re in denial about what’s happening; the EPO isn’t “stricter standard to which patent specifications are subject in Europe.” EPO patent quality became laughable under Battistelli. In some respects it’s even worse than that of the USPTO. We’ll write more about that in our next post. To quote Kelly and Penti:
On March 28, 2018, the U.K. Court of Appeal handed down its decision in Regeneron v Kymab & Novo Nordisk (found here), reversing a lower court decision that found two critical patents covering Regeneron’s transgenic mice technology invalid for lacking sufficiency of disclosure. The rationale and analysis underlying the decision are significant because they align the U.K.’s approach to the assessment of insufficiency with that of the European Patent Office, and highlight, for U.S. life sciences and technology companies, the stricter standard to which patent specifications are subject in Europe.
The patents, EP 1360287 and EP 2264163, both disclose methods of producing transgenic mice possessing human antibody genes. These mice, and the technology used to produce them, have been highly valuable to Regeneron. These patents protect fundamental inventions behind Regeneron’s VelocImmune humanized mice, which is considered one of the most valuable technologies in biotechnology history, helping to generate significant licensing revenues and blockbuster collaborations. The case was originally brought by Regeneron, which alleged infringement of the U.K. patents by Kymab and Novo Nordisk. The defendants counterclaimed that the patents were invalid for lack of sufficiency, novelty and inventive step. While the High Court rejected the lack of novelty and inventive step objections, it revoked the patents for lack of sufficient disclosure.
[...]
The Court of Appeal agreed. In doing so, it relied heavily on the sufficiency jurisprudence of the European Patent Office (EPO). In particular, it analyzed and endorsed six decisions from the EPO Boards of Appeal, which set out the Board’s view of the correct test for assessing the sufficiency of a patent disclosure in view of claim scope. In upholding the patents, the court emphasized that the assessment of insufficiency “must be sensitive” to the nature of the invention, adding that inventions directed to “general methodology” or “general application” can be claimed in general terms even if not all embodiments covered by the claims are enabled. This represents a departure from the view of the High Court that found it improper to have claims covering embodiments that could not be put into practice by the skilled person as of the priority date.
The EPO Boards of Appeal keep complaining that they aren’t feeling independent and impartial; they’re afraid of the patent maximalist in chief. It remains a very real problem and it probably cannot be resolved anymore; Battistelli’s successor is his own pick, the management is a bunch of Battistelli flunkies/loyalists, the new examiners lack the skills required for the high standards once enjoyed and envied, and examiners complain that they’re unable to properly assess applications due to top-down pressure. █
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Posted in America, Europe, Patents at 1:49 pm by Dr. Roy Schestowitz
It’s really just a topological trick and it is barely unprecedented

Reference: What is the Difference Between a Blockchain and a Database?
Summary: A lot of software patents are being declared invalid (or not granted in the first place); having said that, using all sorts of hype waves (like calling databases “blockchains”) firms and individuals manage to still be granted software patents and sometimes patent trolls hoard these
TACKLING software patents is a process which takes a lot of time. There are many such patents out there and software patents aren’t typically marked as such. At the EPO they keep coming up with new buzzwords and the USPTO allows software patents as long as their abstract nature is disguised somehow. Patent lawyers now make a career out of manipulating or fooling examiners. Examiners oughtn’t find that amusing because it takes its toll on the reputation of examiners, not these mischievous law firms’ reputation. The presumption of honesty just isn’t there anymore. Closer and longer scrutiny of patent applications may be needed. We have said all this before, so rather than repeat ourselves let’s look at examples from the past week’s news.
The OSI’s Simon Phipps was a feature story/item in Linux Journal some days ago. Here is the part about software patents:
Software patents represent one of several areas into which OSI has been expanding. Patents have long been a thorny issue for open source, because they have the potential to affect not only people who develop software, but also companies who merely run open-source software on their machines. They also can be like a snake in the grass; any software application can be infringing on an unknown patent.
OSI has been rather disappointing in the sense that it did virtually nothing on the subject; to be fair, that’s not a unique problem because the Linux Foundation, OIN and others are equally culpable. How can they keep promoting Free software (which they misname “Open Source”) without talking about the perils of software patents? The FSF is perhaps the exception here; it still habitually talks about such issues. We’ll come to that in a second, in the context of the Linux Foundation in particular.
There’s good news however. Each year that goes by we generally see Alice getting further entrenched in the system. Last year, for example, the high patent court (CAFC) accepted virtually no software patents. We’ve mentioned this many times so far this year. It doesn’t mean that workarounds do not exist or cannot be exploited. “Over the Internet” patents, for example, are one common trick for disguising software patents — a subject we’ve been writing about for approximately 8 years. Thankfully, such patents too are still being rejected by courts. Here is an example which is only days old. In this particular case the court rejected an “over the Internet” patent under Alice/Section 101.
Here’s the relevant part:
A Federal Court has granted SemaConnect’s motion to dismiss a patent infringement lawsuit filed by ChargePoint. The suit, filed in December, accused SemaConnect of infringing four of ChargePoint’s patents for technology to connect electric vehicle charging stations to the internet.
In a 70-page opinion, U.S. District Judge Marvin J. Garbis agreed with SemaConnect’s assertion that there was no infringement. Additionally, the court held that the claims brought by ChargePoint were little more than abstract ideas and did not, therefore, qualify for patent protection under the U.S. Supreme Court’s “Alice” opinion (2014), which established standards for software-related patents.
Another day goes by and yet another invalid(ated) software patent shows up in the news, this time in Morris Reese v Sprint Nextel Corporation et al. To be fair, it wasn’t “in the news” per se but there was a Docket Report from Docket Navigator and it said this:
The court granted defendants’ motion to dismiss because the asserted claims of plaintiff’s caller ID patent encompassed unpatentable subject matter and found that the claims were directed toward an abstract idea.
About a decade ago we showed how a caller ID patent literally destroyed an 'app' and took it offline. Probably for good! All it took was a bunch of threats of litigation. That was many years before Alice, but still, the cost of litigation for indie developers (even if they win the case) is far too high. Maybe PTAB is almost affordable, but the cost of IPRs rose some months back. Whatever eliminates all software patents would be a godsend to developers.
How about software patents on things like databases? Is it enough to call these something like “blockchain” to ride a hype wave which is certainly out of control these days? Watch sci-fi-like headlines, e.g. “Blockchain in Space” the other day. There are perhaps thousands of articles about something “blockchain” or “blockchainy” things every week. Here’s a new one about the Linux Foundation’s Hyperledger project, courtesy of the Linux Foundation itself. Behind this project there are companies with varying policies, but the main one is IBM, which is hoarding software patents on blockchains. We wrote about this before. Do not expect the Linux Foundation to ever bring up the subject, let alone criticise such patents.
Speaking of IBM, which gradually turns into more of a patent troll and feeds patent trolls (we wrote about that last night), another one like it is BlackBerry. From market dominance it came to trolling. Market penetration grinds to a halt and all they’re left with is a massive pile of patents.
Just before the weekend the Canadian media published “Has BlackBerry become a ‘patent troll’? Not quite, says Ottawa researcher” (this is their headline).
It’s a white-washing, damage-controlling piece. Has BlackBerry become a ‘patent troll’? We’d say not yet, or not fully (yet). But it’s getting there. People are noticing the trend. BlackBerry nowadays uses broad software patents — not hardware patents — to go after companies that do not even make phones but merely develop applications for chatting. The Financial Post (Canada) doesn’t seem to mind software patents. A few days ago it published this nonsense titled “From blockchain to augmented reality, Canada’s big banks aim to patent the future of finance” (several buzzwords/hype waves in there, including “blockchain” again). To quote:
These are just some of the ideas Canadian banks have been envisioning in public patent filings, which lenders have increasingly made in recent years as banking becomes more and more dependent on technology.
Toronto-Dominion Bank, for example, used to file around one patent application a year. But after ramping up its strategy about five years ago, it now files about 40 to 50 applications annually, according to Josh Death, associate vice president, legal, intellectual property and patentable innovation at TD.
We have been writing about the “blockchain” hype for at least 2 years now, exclusively in relation to patents on blockchains. We’re sad to see it spreading even to Europe. Remember that these are all software patents, basically disguised as “blockchain” because it makes these sound innovative and exciting. Many patent examiners aren’t familiar with the underlying concepts, which aren’t even particularly complicated. Consider this new press release titled “ZK International Ready to Implement Patent Pending Software, IoTs and Blockchain Technologies into its Manufacturing Process and Supply Chain Management System” and scroll down to the part which says “to implement its patent pending software and blockchain technologies” as if they openly reveal that it’s about software. Why would the US patent office grant a patent on such a thing? Why on Earth does EPO grant patents like these as well?
Several days ago we saw articles like this one:
Nchain to Offer Smart Contract Patents Exclusively to the Bitcoin Cash Community
[...]
According to the blockchain firm Nchain and its CEO Jimmy Nguyen, the company has secured its first approved patent recognized by the European Patent Office. The patent involves an invention that provides a method for an automated management and blockchain-enforced smart contracts.
This was preceded by this, wherein it was revealed that the EPO had been granting software patents disguised as “blockchain”. This is a disgrace. To quote:
London-based nChain, a company involved in research and development of blockchain technologies, has announced that it has registered its first patent (#EP3257191) successfully with the European Patent Office (EPO). The patent , granted on April 11, 2018, is for a registry and automated management method for blockchain-enforced smart contracts. nChain has confirmed that it would use technological advancement for the growth of Bitcoin Cash.
The patent titled “A method and system for securing computer software using a distributed hash table and a blockchain” explains a technique that can be applied to any content, including music, video, and even PDF files) with an executable phase. The blockchain will guarantee that a party which possess a valid license gains access to the content. According to nChain, the invention can be deployed by content producers and rights holders to more efficiently perform digital rights management.
European Patent Office patent number EP3257191 shows that the EPO now grants software patents that are disguised using a hype wave, “blockchain”. Here is the corresponding press release [1, 2]. “The patent,” it says, “European Patent Office number EP3257191 – is entitled “A method and system for securing computer software using a distributed hash table and a blockchain”.”
When we brought it up half a week ago the FFII’s President wrote: “And after that blockchain patent, the EPO will still claim it does not grant software patents?”
“Software patents at the EPO [are] not even disguised as such anymore (or very thinly),” I responded to him. Other people too have noticed that since. Slide in quality of patents at the EPO, including software patents, is being noticed. One person wrote about it in German: “Jetzt kann man – überspitzt formuliert – seine #Blockchain beim @EPOorg patentieren lassen… WTF? So werden #Softwarepatente durch die Hintertür erteilt! #swpat // @FFII @zoobab https://www.prnewswire.com/news-releases/nchain-receives-first-patent-grant-for-blockchain-enforced-smart-contract-invention-300628007.html …”
In the next post we’ll give some more examples of software patents at the EPO. This is not acceptable and it actually puts European software innovation at peril. █
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