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

UKIP TV (GBNoise) Covers Challengers to UKIP Nigel, Daniel Pocock Mentioned
Way to get noticed
This Bubble is Bursting, Piecewise
It's nice to see Wall Street getting some reality checks
Can We Finally All Agree That UEFI 'Secure Boot' is a Sham That Harms Security and Gives Microsoft Remote Control Over All PCs and Servers (Even Those That Don't Run Any Microsoft Software)?
Cui bono?
 
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
Links 18/07/2026: Chinese State Media Depicting Neighbours as Monkeys, US "Stocks Sink on Anxiety About Tech and Hey Hi (AI) Spending"
Links for the day
Gemini Links 18/07/2026: "Business Idiots Everywhere", "The Siren Song of DePIN", and Entering Geminispace
Links for the day
GNU/Linux in Lithuanian Desktops/Laptops Climbs to 8%, the Global Average
For its own national security it would be wise to abandon Windows
It's Not About XBox, Microsoft is Already Firing Hundreds of People Who Do "Security [sic] Engineering" [sic]
The official reason/excuse/lie told is something about slop, but no sane person would buy it (not even insiders who are impacted)
Bolivian People Adopt GNU/Linux (They Have a Domestic Distro Too, PluriOS)
Notice Windows falling to an all-time low
No Technical People Write About UK Parliamentary Elections
Almost none of them work in the media, which seems to favour parrots, slop, or parrots that use slop
"But Stallman is Scaring Away Women..."
Such dishonest projections (projection tactics) needs to be called out and refuted
First Female Debian Project Leader (DPL) Affirms Low Profile and Inferior Status of Women in GAFAM
3 months ago Sruthi Chandran was elected as Debian Project Leader (DPL) for a period of 12 months
After 5 Years Vista 11 Still Adopted Less Than Its Predecessor (Orphaned, End of Life Since Last Year)
Notice Windows going down to 40%
We Don't Depend on Google (or Search Engines in General)
there's a lesson here and it extends beyond sites
Only "Torvaldos" (Linus Torvalds) Can Use the F-Word, CoC Does Not Apply to the Enforcer, and Richard Stallman Punished for Using the Other F-Word ("Freedom")
"Linus Torvalds tells AI haters to fork off"
Explaining the Culture of Bulletin Board-Style Chat
Only desperate detractors would try to present something (cherry-picked) from IRC as some sort of official statement for Techrights
Independent, But Not Fringe
"Daniel Pocock is an Independent Candidate."
In Free Software, Nobody Gets Fired
Way to own one's code and project
PIP-Styled Mass Layoffs Allegedly Coming to Microsoft by 12 August 2026
Microsoft has been doing "silent layoffs" (PIPs and more) for quite some time
Daniel Pocock's Candidacy (Election of Member of Parliament) Mentioned in BBC and Over a Dozen News Sites Since Yesterday
Funnily enough, albeit not surprisingly, the same people who attack Pocock also attack us
Links 18/07/2026: Spotify Uses Slop Song Descriptions, "San Francisco Demands Removal of Nudify Apps"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, July 17, 2026
IRC logs for Friday, July 17, 2026
Gemini Links 18/07/2026: A Manifesto by The Dissident, Shokz Headphones, and Gemini Tinylog Reader (GTL)
Links for the day
IBM Already Tentatively Down for Next Week (Monday) After Its Worst-Ever Week
What a week for IBM!
Daniel Pocock as Independent Candidate, Now in The London Standard
"Daniel Pocock is an independent candidate."
Links 17/07/2026: Protests Erupt Throughout Ukraine and Anthropic Caught Secretly Spying on Users
Links for the day
Gemini Links 17/07/2026: "Silence Doesn't Mean Abandoned", Revisiting PalmOS in 2026
Links for the day
Andy Burnham as National Leader Would be Excellent for Techrights
Burnham has envisioned a British "centre of power" (or gravity) that moves northwards, isn't concentrated in the southeast anymore
Farage Out, Daniel Pocock in?
Can Pocock beat his previous voting record?
Layoffs at Microsoft Are Massive, Go Under the Radar for the Most Part
Microsoft is in a really bad shape
One Heck of a Week for IBM, the 'Grandpa' of 'High-Tech', International Business Machines Corporation (NYSE:IBM) Under Investigation by Bronstein, Gewirtz & Grossman, LLC
If IBM gets busted or might be busted, will the CEO jump, get pushed, or be arrested?
In Defence of Courts' Privacy Policies
If you want friends, go offline. Meet real people and share real experiences.
Why I Quit Academic Career (or Academia) Nearly 15 Years Ago
I am told by people who stayed that it has only gotten worse
“Why Open Source Misses the Point of Free Software”
As Dr. Richard Stallman once put it
GNU/Linux Grows at the Expense of Microsoft Windows in Croatia, Now Close to 8%
Croatia has been mentioned a lot lately in relation to EPO "lobbying" (vote-rigging)
27-Year IBM Veteran on IBM: "Worse than the Titanic and Perhaps Just Like Madoff, Enron, etc."
several comments we saw today envisioned the CEO of IBM in an orange suit (in US prison)
EPO "Cocaine Communication Manager" - Part XV - Nazi-Like Thinking at the European Patent Office (EPO) Not a Thing of the Past
antisemitism inside the EPO
Daniel Pocock Running for Office Again, Clacton-on-Sea By-election
By-election - code name "Pocock-on-Sea"
ServiceNow/ServiceLine and Slop at the EPO is Becoming a Health Risk to Staff
PD44 has historically been the oppressor at the EPO
IBM Can Burn Pensioners to Appease Wall Street and Protect the Billionaire CEO With His Humongous Bonuses
Its stock it set to open 2.82% in the red
IBM SHAREHOLDER INVESTIGATION: Potential Securities Claims Involving International Business Machines (IBM)
there's a risk of criminal action against executives
Tux Machines Moving Onwards and Upwards
"...tasks expand to fill the time available"
The Register MS is Publishing Spam for Gartner Group to Spread Hype About "AI", Mentioned 30 Times in the Paid (Fake) Article
One sure thing is, the so-called 'tech media' is profoundly compromised by American corporations
"Market Share" of GNU/Linux Nearly Trebled in Cambodia This Month
GNU/Linux is still measured at 8% by statCounter
GitHub is Dying (Traffic Down Despite Bots and Slop), Microsoft Will Eventually Cull it - Just Like XBox - to Limit the Losses
Do not stay on GitHub (Microsoft) under the false assumption that it is "free hosting" or will always be around
Teaser: Daniel Pocock is About to Go Mainstream Again
Stay tuned, Pocock has something in store
Microsoft Has Just Been Sued Over Layoffs
If the rumours are true, there is yet another wave of layoffs at Microsoft
Richard Stallman Always Cautioned, Upfront, That His Political Views Were Wholly Separate From His Scientific Work or GNU
Notice that he already spoke a lot about politics
Links 17/07/2026: Microsoft is Cutting OneDrive Coverage, Larry Ellison Sued by Paramount Investor
Links for the day
Nichirei and Asahi Beer Need to Take Cyberattacks as Hint of Opportunity to Move to Free Software
Windows TCO
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, July 16, 2026
IRC logs for Thursday, July 16, 2026
Gemini Links 17/07/2026: Sunlight in the Clouds, Techno-Therapy, and Sloppifying Original Text
Links for the day