Patents Roundup: Why Software Patents Are Harmful; Status Update Re Bilski
- Dr. Roy Schestowitz
- 2009-11-11 12:37:52 UTC
- Modified: 2009-11-11 12:37:52 UTC
Summary: A lot of new links about software patents and In Re Bilski
●
Software patents have tangible costs for innovation, and for you [
via]
One thing that I find extremely frustrating about many legal scholars' and economists' approach to patents is that they make two false assumptions. The first assumption is that transaction costs are acceptable, or can be made so with some modest reforms. The second assumption is that patent litigation is reasonably "precise"; i.e., if you don't infringe on something then you'll be able to build useful technology and bring it to market relatively unhindered. As my friend's story shows, both of these assumptions are laughably false. I mean, just black-is-white, up-is-down, slavery-is-freedom, we-have-always-been-at-war-with-Eastasia false.
The end result is that our patent system encourages "land grab" behavior which could practically serve as the dictionary definition of rent-seeking. The closest analogy is to a conquistador planting a flag on a random outcropping of rock at the tip of some peninsula, and then saying "I claim all this land for Spain", and then the entire Western hemisphere allegedly becomes the property of the Spanish crown. This is a theory of property that's light-years away from any Lockean notion of mixing your labor with the land or any Smithian notion of promoting economic efficiency. And yet it's the state of the law for software patents. Your business plan can literally be to build a half-assed implementation of some straightforward idea (or, in the case of Intellectual Ventures, don't build it at all), file a patent, and subsequently sue the pants off anybody who comes anywhere near the turf you've claimed. And if they do come near your turf, regardless of how much of their own sweat and blood they put into their independent invention, the legal system's going go off under them like a land mine.
●
'Intellectual Property' a Violation of Real Property
Proprietary software advocates would probably be most concerned with money whereas ironically Free Software advocates, especially those who promote GNU General Public License (GPL), would be concerned with power.
[...]
Intellectual property is a lie, thus its enforcement by means of the copyright law is nothing more than institutionalized violation of real property rights by means of granting government enforced monopolies to authors. They are given the power to dictate how individuals who never entered any agreements with them and instead got it from someone else will use their own property (hard drives, DVD players and burners etc.).
●
BMW seeks to patent technological creative thinking?!
Yes, you read the headline correctly. BMW has filed a patent for a "Method for Systematically Identifying Technology-Based Solutions." Broken down into non-lawyer speak, BMW thinks it has identified the ways in which technology can solve problems. In other words, they want to patent the methodology behind technological problem solving.
●
Supreme Court Considers Software Patents
Those arguing that patent rights should be restricted say that "business method patents amount to a tax on Internet commerce." On the other hand, small software companies, financial services companies and others argue that their inability to protect software "cripples" the ability of smaller companies to compete.
●
Supreme Skepticism Over Bilski Claims Puts Method Patents on Shaky Ground
For the first time in almost 30 years, the U.S. Supreme Court on Monday considered the issue of what types of technology should be eligible for patent protection when it heard oral arguments in Bilski v. Kappos.
●
Justices Show Supreme Skepticism About Broad Business Model Patents
●
Bilski oral argument highlights (or rather, lowlights...)
●
Bilski’s hearing and software patents [via
Digital Majority]
At Monday’s hearing (court transcript), neither party had the objective of abolishing software patents. The Bilski case is about a business method patent, so there was Mr. Jakes arguing that business methods should be patentable, and Mr. Stewart arguing that they shouldn’t. For software to be excluded, we’re relying on the judges (to whom we wrote an amicus brief, as did many others). There’re a few worrying statements, but there’s also a lot of hope.
On the issue of business methods, the judges were very sceptical but mentioned many times that they don’t see an obvious place to draw the line. Indeed, they seemed to find Jakes’ position comical at times, and also found Stewart not going far enough and said that with his proposed interpretation, a computer could be added to any idea to make a patentable “machine”, thus also failing to exclude business method patents. There are also some worrying statements in there, like Justice Sotomayor calling the 2008 CAFC in re Bilski ruling “extreme“.
●
Software patent case arrives at Supreme Court
With the tech industry looking on, the Supreme Court today will explore what types of inventions should be eligible for a patent in a pivotal case that could undermine such legal protections for software.
●
Business Method Patents: Technological Change, Not Judicial Activism
The judicial activism thesis may have a superficial appeal. State Street was a highly visible and prominent pronouncement by the federal court having nationwide jurisdiction over patent cases. It may seem reasonable to attribute tremendous implications to such a famous judicial opinion. Yet the judicial activism thesis suffers from multiple glaring problems and plainly cannot account for the timing of the rise in business method patenting, which plainly began well before State Street.
●
Patent law must not stifle innovation
In a world of constantly accelerating technological change, economic prosperity depends on innovation. To support such innovation, it is vital that our patent system be well-calibrated, so that overly broad patent monopolies do not choke innovation. In the last several years, patent standards have been relaxed by the courts, which has created a patent system that hinders innovation in the software industry.
[...]
Such lawsuits can be ruinously expensive - including, for an average-size case, millions of dollars in attorneys' fees. Large software companies have developed defenses against some patent threats, including obtaining their own patents that they may use to bring countersuits if attacked. This strategy is only available to well-financed companies. Even large companies face increased litigation risks from businesses with no purpose other than exploiting patents. These businesses - called non-practicing entities, or, less politely, patent trolls - buy patents not with a view of producing products, but rather so that they can demand ransom from operating companies.
●
High Court Must Lower Bar For Patents
Due to an important federal circuit court of appeals decision last year, this type of powerful innovation may no longer be patentable. In upholding a lower court ruling, the federal circuit wrote that a business process (like online banking) must be "tied to a machine" or transform "a substance into a different state or thing" in order to qualify for patent protection. This "machine or transformation" test, as it is called, is too rigid to incite innovation.
●
An Important Patent Law Precedent Approaches
So now, shorn of all the technicalities, the Supreme Court gets a chance to say whether it means what it's always said, or whether it wants to endorse the fast and flashy round-heeled patent system we were running during the boom times. Of course, it can always do nothing at all, or make a new alternative that wasn't there before; that's what being the Supreme Court means, as any Legal Realist will tell you. But one thing is certain, that if they wind up saying anything at all, what the Justices say in this case will determine the course of patent law for a long time to come.
●
A Math Geek's Ride to the High Court in Landmark Patent Fight
The company is marketing the product even without the patent, so Warsaw was asked: Why keep fighting for it? "Our revenues are down millions of dollars because we don't have the patent" and the royalty stream that would have resulted, he said. "We have no market power. That's the essence of it. You can't protect your interests."
●
Bilski Supreme Court Preview: Finnegan Lawyer Challenging 'Machine or Transformation' Patent Test Says He's Ready
The appellate court ruled that in order for a business method to receive patent protection, it would need to either "transform [an] article to a different state or thing," or be "tied to a particular machine." The opinion sent the patent bar into an uproar, with businesses asserting that the new standard jeopardized patents on all kinds of highly valuable intellectual property, including software.
●
Supreme Court to decide: What kind of innovations get a patent?
At issue is whether US patent protection must be limited to inventions involving machines and transformative processes, or whether patent law also embraces nonphysical inventions like improved business methods and software innovations.
The case, Bilski v. Kappos, is viewed as a potential landmark in patent law. It has attracted 67 friend-of-the-court briefs from lawyers, scholars, and businesses, including Microsoft, the Biotechnology Industry Organization, Bank of America, Google, Yahoo, and L.L. Bean.
Recent Techrights' Posts
- The Cyber Show on Technology Having Become a Tool of Mass Psychosis, Not Enablement or Emancipation
- Technology as mass psychosis
- The Rumour Said That a Second Wave of Microsoft Layoffs Would Come This Week (Ahead of Fake 'Results'), Maybe Tomorrow
- Let's wait and see how "MSM" unfold
- Karen Melchior Fought the Good Fight
- stay tuned for Part 29
-
- Techrights Will Become More Productive (More Output) Over Time
- Big stories about to land
- Touch Grass
- Happiness involves what humans have evolved to appreciate, not what humans create to sedate the mind (like skinnerboxes)
- To Wikipedia, "Notability" is Just an Excuse to Hail People Who Serve Billionaires While Marginalising or Defaming the Rest
- Wikipedia is an advertising space
- Our Series About Solicitors Regulation Authority (SRA) and SLAPPs Will Resume Soon
- Originally, in 2025, we gave ourselves 6 years (until 2031) to cover these issues, but we've seen since extended that to 10 years (until 2036) because of the amount of material we have
- European Patent Office (EPO) Series: The EPO Transparency Gap
- Despite the "European" tag in the organisation's name, the European Union has no jurisdiction over the European Patent Organisation
- Over at Tux Machines...
- GNU/Linux news for the past day
- IRC Proceedings: Monday, July 20, 2026
- IRC logs for Monday, July 20, 2026
- Links 20/07/2026: Lashes for Songs in Iran, Kurdish Language at Risk
- Links for the day
- Gemini Links 21/07/2026: The Boss Baby (2017) and 2026 Old Computer Challenge Epilogue
- Links for the day
- Canonical Staff Acting Like They Aim to Receive Job Offers From Microsoft
- There are moreover allegations that Debian will do the same, in the same way Mono boosters infected both distros in tandem or in turn.
- Worsening Staff Affairs at Microsoft
- Microsoft is managing to piss off many of its own workers
- Czech Mate for GNU/Linux on the Way
- Czechoslovakia is having none of that "peace for our time" with Microsoft
- Nobody Will be Left Who Trusts IBM Anymore
- The common theme is, the management must be completely replaced as soon as possible and truth needs to come out
- Wall Street is a Bubble and No Company is Worth 5 Trillion Dollars
- It's not hard to see which stocks will crash the hardest (or fastest)
- The Corrupt Have Historically Tried to Paint Their Exposers as the Real Problem
- As usual, there are efforts to shoot or muzzle the messenger
- Search Engine Market Share in Italy: Microsoft Falls to Third in Many Countries Including Italy
- Expect more layoffs in Bing
- Links 20/07/2026: Spotify Drowning in Slop, Expiry of Software Patents in MPEG-4
- Links for the day
- Gemini Links 20/07/2026: Another Step Towards Owning Personal Data and Gemtext2 Envisioned
- Links for the day
- European Patent Office (EPO) Series: Public Missions and Private Ambitions
- Despite the French government's strong formal pushback, the lobbying momentum generated by Campinos and Negrão proved unstoppable
- "DOOM" and "Bloodbath": the State of Microsoft and XBox
- Way to piss off fans
- Links 20/07/2026: Notes on E-mail Encryption, Torvalds and His Employer Paid a Lot to Promote Slop (Pyramid Scheme)
- Links for the day
- What a Difference Six Years Make...
- We are also beta-testing a new feature for the site; we plan to announce it some time soon
- When It Comes to Slop, Richard Stallman is Opposite of Linus Torvalds
- When it comes to computing, Dr. Stallman has long been a voice of reason
- Daniel Pocock is in Mainstream Media This Week
- Pocock's haters will absolutely hate this
- In His Departure Post, Poul-Henning Kamp (phk) Explains Why Linus Torvalds is Full of "Hot Air" and Slop Bubbles
- Having lived through previous bubbles as a UNIX geek, phk cannot be ignored
- Whistleblowers Keep Flowing
- Later today a police investigator should phone us regarding death threats we've received
- We Need Less Gadgets, More Humanity
- If people are being honest with themselves, many of the gadgets they claim they "cannot live without" are just excesses and distractions they could definitely leave behind
- Technology and Gadgets Got Obese, Just Like Their Users
- They now sell us so-called 'phones' for slop
- Daniel Pocock in The Guardian This Morning
- There is an opportunity here to spread a message, even if Pocock won't win a seat
- "Samsung Recently Projected a 19-fold Surge in Second-Quarter Operating Profit", Now There Are Mass Layoffs
- In a 9-month period Samsung's debt rose by about 80%
- Gemini Links 20/07/2026: Dungeon Meshi/Undertale Crossover, "The Hitchhiker’s Guide to the Dark Web and Beyond"
- Links for the day
- IBM's Control of the Media "Just Showed What Taking Accountability Does Not Look Like"
- It is no secret that IBM pays the media
- Microsoft Loses XBox Lawsuit, But There Are More
- The collapse of studios continues
- GNU/Linux Approaching International Average in Djibouti
- One can envisage further gains for GNU/Linux, seeing Microsoft is in such a bad shape
- Daniel Pocock "[t]he Australian Taking on Nigel Farage — from Down Under"
- This can help raise awareness of some issues
- Over at Tux Machines...
- GNU/Linux news for the past day
- IRC Proceedings: Sunday, July 19, 2026
- IRC logs for Sunday, July 19, 2026
- Misleading Coverage in Slashdot Promotes and Openwashes Slop
- Piggybacking RMS for the headline seems like a PR stunt of sorts
- As Envisioned, a Rebellion and Many Whistleblowers at Microsoft
- Whistleblowers ensure Microsoft has totally lost control of the "narrative" (face-saving PR)
- Microsoft is a Right-Wing Company
- Just remember that when people call Microsoft "woke"
- GNU/Linux "Market Share" Rises to About a Quarter in Sudan
- Can anyone explain to us why?
- Gemini Links 19/07/2026: Visiting Ethiopia, Two Dreams, and Price of Skinnerboxes
- Links for the day
- Tears in IBM, Company Falls Apart While Management Fakes "Performance" to Take Bonuses
- Wall Street is a naked emperor
- Telling Our Story
- In the coming years we'll have some high-impact stories to share and generally tell without fear of reprisal
- Microsoft XBox Studio Leaders Upset at What the New CEO Did
- From what we can gather, in 2024 XBox was already entering what's known as a "death spiral". Now it's literally moving down the drain/pipe.
- IRC Started in Finland, GNU/Linux Did Not
- History is like that
- GNU/Linux Rises to 8% in Bhutan, Same as the International Average
- Taking note of estimated GNU/Linux share in that country, we see it hovering around the international median/average this month
- Links 19/07/2026: "The Voice of Google" and "Chinese Surveillance Tech a Threat to Privacy"
- Links for the day
- Keep Both Eyes on the Ball
- At the moment we have six series running in parallel; two of them concern the EPO
- 'Journalists' Who Help IBM Cover Up Fraud
- Journalistic malpractice
- The "Modern Linux" Song
- Join us now, make the kernel
- XBox Layoffs Vastly Bigger Than Microsoft Told the Press, Microsoft Keeps Trying to Change the Subject
- Many so-called "XBox fans" are no more
- Microsoft Lost 1,200 Billion Dollars in "Market Value", Take a Look at What Happened to Windows
- while Windows continues to fall unstoppably GNU/Linux is surging
- Links 19/07/2026: People in China Are Buying Feelings and 404 Media Has Third Anniversary
- Links for the day
- Gemini Links 19/07/2026: Camping, Health, and Hardware
- Links for the day
- The State of Slopfarms
- Slopfarms or LLM slopfarms are a menace and a problem on the Web
- GNU/Linux Rising to 6% in Brunei
- seventh in the world for GDP (PPP) per capita
- Free Software is Like an 'Activist Movement'
- People who argue strongly in favour of something (even very good things) will attract the wrath of those whom they oppose
- Over at Tux Machines...
- GNU/Linux news for the past day
- IRC Proceedings: Saturday, July 18, 2026
- IRC logs for Saturday, July 18, 2026