Bonum Certa Men Certa

The US Patent System: Where One Wastes Years in Court and Spends $8,000,000 in Lawyers' Fees Fighting a Bogus Patent

The US patent office has essentially externalised the costs to the public

Alice road



Summary: A roundup of news about software patents in the US and what they have led to, owing in part to the USPTO's declining patent quality (leaving others to clean up its mess)

THE ridiculously low standards of the USPTO come at a huge cost, albeit this cost is considered an externality by this greedy patent office. Unless this mess is sorted out soon, the US might have nothing left but large multinational corporations with tens of thousands of patents each, as opposed to agile startups with none.



Elliot Harmon says that this one particular software patent, which can possibly be demolished quite easily using Alice, has been used in the Eastern District of Texas and it's the "Stupid Patent of the Month" (as per the series of the EFF). To quote:

This month, a company called Voice2Text Innovations filed patent infringement lawsuits against two voice over Internet protocol (VoIP) services, Phone.com and Vitelity. Voice2Text has no website or any other information online; its sole asset appears to be US Patent No. 8,914,003—unsurprisingly, a patent on using voice recognition to convert a voicemail into a text message. Equally unsurprisingly, it’s filed those suits in the Eastern District of Texas, whose patent-troll-friendly practices we’ve thoroughly documented on this blog. The Voice2Text patent is so absurd that we had to honor it with our Stupid Patent of the Month award.


"Unless this mess is sorted out soon, the US might have nothing left but large multinational corporations with tens of thousands of patents each, as opposed to agile startups with none."In order to destroy such a patent one might need to spend quite a lot of money rather than settle. Consider this new story titled "Court Orders Plaintiff to Pay Defendants’ $8 Million in Attorney’s Fees in Patent Row". That's a lot of money; patent lawyers grossly overcharge and the system plays in their favour by inducing additional costs at many levels (e.g. appeals), thus favouring those with bigger budgets or deeper pockets, leaving small players vastly more vulnerable. To quote the concluding words: "This case illustrates that the courts will take strong action when faced with baseless claims, hidden or altered evidence, and misleading statements made to the court or opponents. It also serves as a strong reminder to consider your counsel carefully, and the advice that they provide, or a plaintiff may have to pay its own fees and those of the defendant, which in this case amounted to another $8 million."

This case may be the exception rather than the norm, but judging by NewEgg's decision to stand up to trolls, it often costs literally millions and there is no guarantee of the plaintiff -- upon loss -- bearing the cost of the defendant's (victim's) legal bills. NewEgg actually made history by managing to compel a patent troll to pay its victim's legal fees some months ago, owing to an unusual decision by the judge.

"NewEgg actually made history by managing to compel a patent troll to pay its victim's legal fees some months ago, owing to an unusual decision by the judge."Patently-O has just recommended Lynda J. Oswald's relatively new paper which criticises the term “strict liability” and whose abstract says: "In 1995, the Federal Circuit summarily attached the label of “strict liability” to direct patent infringement, even though that term does not appear in any U.S. Patent Act of the past two centuries. The catechism of “strict” direct patent infringement liability is now so well-engrained in patent doctrine that it is easy to lose sight of how recent the advent of this terminology is in the case law, and how troublesome application of this standard has proven, even to the Federal Circuit, which created it. The first patent act (1790) preceded the emergence of tort law as a distinct field of U.S. common law (mid-1800s) by a half-century or more, and the products liability explosion of the mid-twentieth century radically altered our understanding of strict liability. The implications of this forgotten timeline are profound. “Strict liability,” particularly in its modern formulation, is not a neutral, descriptive term. Rather, the term evokes social policy choices and balancing considerations that may be appropriate within the case law context of products liability or abnormally dangerous activities, but which are incongruous and inapposite in the statutory context of patent law. Deeming direct patent infringement to be a strict liability leads to two unanticipated and unwelcome effects. First, the adoption of the “strict liability” label for direct patent infringement liability improperly inflates the courts’ role in setting direct patent infringement liability standards and suggests — incorrectly — that patent liability is a case law construct, when in fact it is a statutory construct. Second, the “strict liability” label improperly shifts the focus of the patent infringement inquiry from the Patent Act’s protection of the plaintiff’s exclusive property interest in its patent right toward a value-laden examination of the social utility of the defendant’s conduct vis-à-vis the injury to the patent holder. Jettisoning the “strict liability” label for direct patent infringement would reframe the analysis and debate, moving direct patent infringement liability out of a policy framework and back toward its proper statutory setting."

"PTAB is increasingly being used to correct the USPTO's errors, but why not dig deep into the root of the problem and simply tackle the USPTO's unrestrained greed?"What's worth noting here is that a lot of the risk has been passed to defendants, not to plaintiffs, who often rely on poor quality examination by the USPTO (resulting in the grant of bogus patents). PTAB is increasingly being used to correct the USPTO's errors, but why not dig deep into the root of the problem and simply tackle the USPTO's unrestrained greed?

CAFC won't be coming to one's rescue after PTAB, according to one example just put forth by Patently-O. To quote Patently-O: "The Federal Circuit has denied en banc review of decisions in four inter partes review proceedings brought by Gnosis. Federal Circuit had previously affirmed the Patent Trial and Appeal Board’s IPR determination that the challenged Merck and SAMSF patent claims were invalid as obvious."

The relevance of this was ever more apparent when Bass gamed the value of companies by invalidating key patents -- a move which IAM now conflates with patent trolls by comparing Bass to trolls. Spangenberg is a patent troll, Bass invalidates patents. They have a very different modus operandi, but as IAM put it, the connection lies within a team-up: "Since teaming up with former IPNav CEO Erich Spangenberg to launch their first US inter partes review (IPR) in February last year – challenging a pharmaceutical dosage-related patent owned by Acorda Therapeutics – Kyle Bass has become one of the IP business world’s highest-profile players. Whether he should primarily be seen as antagonist, protagonist or the antihero somewhere in-between depends on your point of view. What is certain is that the validity actions being pursued by him and Spangenberg through their Coalition for Affordable Drugs – targeting patents belonging to pharmaceutical ‘originator’ companies – rocked the post-America Invents IP landscape."

"The USPTO's poor quality -- a trap which the EPO growingly falls into -- helps trolls, strategic predatory investors/hedge funds, and monopolists which do a disservice to innovation."What is worth noting here is that if the patents invalidated upon request by Bass were not granted by the USPTO in the first place, none of this would have happened. The USPTO's poor quality -- a trap which the EPO growingly falls into -- helps trolls, strategic predatory investors/hedge funds, and monopolists which do a disservice to innovation. Watch IBM's patent chief having the audacity this weekend to complain about the system which David Kappos from IBM made worse (in IBM's favour; IBM pays him now for lobbying), furthermore complaining about a system outside his own country (Australia) because it attempts to improve patent quality, as we noted yesterday. ⬆

Recent Techrights' Posts

IBM Cannot Hide the Layoffs Forever
we welcome whistleblower to tell us more and send us documents related to that
What is a Conditional Fee Agreement (CFA)? When Law Firms Become the Litigants.
And the Solicitors Regulation Authority (SRA) needs to be more serious about tackling this
Brigading Against Women - Part XX - Attempts by Lozza to Deplatform Techrights and Tux Machines Only Days After I Sued Garrett and My Wife Also Sued Garrett (Shortly Before the Serial Strangler From Microsoft Joined)
in 2024
Links 06/10/2026: A Year Since "NSA Whistleblower Reality Winner Released From Prison", World Tries to Deal With El Niño
Links for the day
Red Hat is Phased Out of Existence This Month Onwards
Within a few years we'll probably not see many redhat.com addresses anymore; many became ibm.* last week
 
EPO Union Bemoans Lack of Social Dialogue as Dictator Wishes to Govern Forever (No Elections, No Rivals), Hide the Many Issues
"Exchange of open letters"
GNU/Linux Has Risen in France Since the Order to Adopt GNU/Linux (in Public Services)
We can expect the same in countries like Denmark, Switzerland, Germany, and The Netherlands
On Microsoft Hiring Freeze or No Permanent Jobs at Microsoft Anymore (Amid Many Silent Layoffs)
Microsoft has changed what it can offer workers
EPO's Central Staff Committee Asking The Council to Get Rid of Corrupt Campinos
We'll be covering EPO scandals around the time of that meeting
Gemini Links 06/10/2026: EU Kids Act, Practicality of Gemini, and Games
Links for the day
Links 06/10/2026: Data Breaches Epidemic and Turkey Blocking Journalists
Links for the day
The Whole Point of Computing is That Computers Are Deterministic (Speed With Predictable Accuracy)
Unlike stochastic parrots that stochastically utter out lies
It's Not a Linux Back Door If It's an Unpatched Device
"Linux Backdoor" is a glaring misfit, a possibly 'obscene' term
"SIRIUS CORPORATION LIMITED" as Evidence of the Financial Shell Games in the UK
Rianne and I still have some fond memories of the time the ex-wife of the CEO treated us like human beings
Lots of Silent Layoffs at IBM Last Week, Employees Explain Patterns of Those Impacted
It wasn't just gossip, it actually happened even if the media chose to look the other way (as usual)
Gemini Links 06/10/2026: Fighting for Purpose, Gemlogs, and Gemtext
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, October 05, 2026
IRC logs for Monday, October 05, 2026
Finland's GNU/Linux Share Measured at 12%
Last month GNU/Linux was measured at about 10% in Finland
UK Layoffs and Closures by Microsoft. In Expected Blow, Microsoft Likely Shuts Down Another Studio.
Microsoft's layoffs are never-ending, they just try to keep them all secret.
NVIDIA Buys the Media With Companies It Sponsors to Pretend to be Customers (Circular Funding Scheme)
The media crisis worsens
Discussion About Potential Sale of EPO Buildings and Enshittification of Europe's Largest Patent Office
It's noteworthy that only one hour (or 70 minutes) was devoted to so many topics
Brigading Against Women - Part IXX - Overreaction From Young Female Professional After Invalid Threats Made and Sent From an Incel in Another Continent
Cowards who send threats after committing crimes online
Stonewalling by Bots
We'll now turn our attention back to EPO and other matters
Gemini Links 05/10/2026: "Posthumanism", Cardputer, and More
Links for the day
Links 05/10/2026: “I’m Embarrassed on Behalf of the Tech Industry” and Slop Scammers "Lobbying the Vatican"
Links for the day
SIRIUS OPEN SOURCE LTD Officially Insolvent, Is Reform UK Next?
Sirius no more
Links 05/10/2026: "Congress Must Investigate War Profiteers Once Again" and Update on Thomson Reuters v. Ross Intelligence
Links for the day
libera.chat is an Agenda-Peddling Platform Run by Agenda-Peddling Individuals
The volunteers of libera.chat ("staff") aren't working for free, they work towards an agenda
Nobel Season is Plutocracy Week
Later this week the billionaires will give a fake "Nobel" (in "Economics") to someone who parrots their preferred narrative and those same billionaires will use "Nobel" to bless the promoter of their latest pyramid scheme/buzzword
GNU/Linux Market Share in North America 13% This Past Weekend
It is perhaps not shocking that adoption of GNU/Linux is very high there
When Did Europe Begin to Side With White-Collar Criminals (or Participate in Suppressing People Who Oppose Them)?
How much corruption can we tolerate before the European Union becomes another Russian Federation?
Libera Chat's "Level of Control Might Make Sense for a Corporate Platform"
IRC is not centralised
Brigading Against Women - Part XVIII - Turning Censorship Attempts (Articles About Matthew Garrett) Into Mild Redactions
What Lozza did two years ago
Greenland Needs Digital Sovereignty
the large icy island isn't moving to GNU/Linux as quickly as the rest of Europe
Tracker of Internet Relay Chat Networks Out of Service (But Not Down) Since Thursday
We should note that the number of unique networks they track has grown since we last checked
Gemini Links 05/10/2026: NixOS, Guix, Codeberg Banning Slop, and "Gopher Apps on Android"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, October 04, 2026
IRC logs for Sunday, October 04, 2026
Secret Microsoft Layoffs and Maybe Another "Voluntary Exit Program at Microsoft in October"
there's a morale crisis at Microsoft
MIT Technology Review (MTR) Reinforces MIT's Role in Promoting Slop (Pyramid Scheme) in Exchange for Money
MIT is a poster boy (or child) of institutional corruption, perverts, and corporate takeover
Many Topics to Cover
Drops in a big ocean
Proving Wrong Those Slop Maximalists and Boosters, GAFAM Says Slop is a Nuisance and Bans/Hides the Slop Submissions
People who say slop in projects is inevitable or even desirable are usually cheaters with self-guilt
Links 04/10/2026: “AI Torture Chamber” and "Aggressive Push to Integrate Hey Hi (AI) Slop Into Schools Is Turning Into a Disaster"
Links for the day
How Microsoft Hides Massive Layoffs From the Media (as Explained by Microsofters)
"rewards" are not exactly rewarding
Brigading Against Women - Part XVII - The Appeal
more to be known towards the end of the year
Gemini Links 04/10/2026: Peace in Outage, Pen Pals, and deGoogling
Links for the day
Links 04/10/2026: Fires Rage in Borneo and Mass Layoffs at Disney
Links for the day
Garrett's Litigation Partner is Unemployed Again
losing one's job
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, October 03, 2026
IRC logs for Saturday, October 03, 2026