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

900 Days Later
900 days is a very long time (almost 1,000)
Cybershow Requires Free Software to Record Shows
Cybershow is run by people who understand that without Software Freedom there can be no sovereignty
Losses at Microsoft's GitHub Seem to be Deepening
How many billions of dollars has Microsoft lost by betting on the false prediction that it can somehow "monetise" public code by LLMs?
Links 31/05/2026: Slop 'Code' (Junk) "Increasingly Leads to Production Failures" and "Huge Slop Costs With No Clear Benefits"
Links for the day
European Patent Office Strikes Intensify Tomorrow, Huge Strikes Planned for June, 10,000 Strike Participations Registered
Campinos may well be ousted soon
SLAPP Censorship - Part 93 Out of 200: A Blueprint of Reckless Lawfare in the UK, Waged and Funded by Americans (in Another Continent)
Lawfare powered by slop companies (including Microsoft) from America, targetting British people who consistently oppose slop because it's objectively terrible
Links 31/05/2026: Watershed Moment, Traveller RPG Book Binding, and GUI Annoyances
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, May 30, 2026
IRC logs for Saturday, May 30, 2026
IBM CEO Can Become a Billionaire by Laying Off Tens of Thousands of Workers (or Buying Companies Using Borrowed Money, Only to Lay off Thousands in Them)
Like he did Confluent recently
Reminder That Linuxiac is a Slopfarm or Hybrid of Bobby and His LLMs
LLM fetishist that claims to cover Linux
BetaNews is Still Publishing Fake Articles, Sometimes Fake News, or LLM Slop Disguised as 'Journalism'
Slop isn't yet a thing of the past, but hopefully we'll get close to that by the end of this year
Gemini Links 30/05/2026: Writer's Block, Evil GAFAM (Google), and Scepticism of Slop
Links for the day
Links 30/05/2026: Fairphone 6, China’s Rise in Drug Development, Slop Wastes Money Without Delivering Value
Links for the day
Links 30/05/2026: Alarm Over Large Companies Cancelling Slop Contracts, Ozzy Osbourne Resurrection as Slop Draws Ire
Links for the day
Red Hat Exodus or RAs (or PIPs) in 2026 Not Limited to China, IBM is Doing Well at Hiding Layoffs
All we need to know is, does IBM hand out lots of PIPs?
SLAPP Censorship - Part 92 Out of 200: A Spouse Cannot be Turned "On" and "Off" Like a Faucet
Today's part will be very short because we keep the parts shorter in weekends and summer is officially around the corner (June on Monday)
The Register MS Has Just Published Fake Article That Mentions "AI" 23 Times. "Sponsored by Arm." It Does This Every Day.
A lot of the time we see this term everywhere in "the news" simply because slop pushers are paying for it
SQLite Under DDoS Attack by Slop Reports or Fake 'Bugs' (Just Like cURL and Many Other Projects)
Even Linus Torvalds is starting to talk about this
IBM: The B Turns From "Business" to "Bailouts" to "Buybacks" ("IBM is the Next Intel")
Trying to shore up the falling share price/stocks while veteran workers and Vice President (with high salaries) are cut off
Links 30/05/2026: More GAFAM (Amazon) Mass Layoffs, Peter Schiff Warns of Trillion-Dollar Slop Bubble Waiting to Implode
Links for the day
Slop is Plagiarism
Trillions of dollars down the drain, invested in a dud
Gemini Links 30/05/2026: Rehabilitation and Taming Emacs Cache and Temporary Files
Links for the day
Richard Stallman (RMS) Talks and Secure Transmission of Private Communications in Formats Everybody Can Access With Free Software
Maybe the FSF should step up a bit the campaign to use Free software to communicate with one another
General Consultative Committee (GCC) Discusses Working Conditions of Employees of the European Patent Office (EPO)
On the agenda: Salary Erosion Procedure, Breastfeeding Policy, New Amicale Framework, Public Holidays 2027
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, May 29, 2026
IRC logs for Friday, May 29, 2026
It's Friday Night Again, So Microsoft is Again Shelving (Under Weekend Lull) Nightmare News for XBox Staff
It did the same thing when the chiefs of XBox got canned
Links 29/05/2026: "Spyware Economy" and Cuba's Energy Crisis
Links for the day
Gemini Links 29/05/2026: Rap Rant and LLMs Criticised
Links for the day
Akira Urushibata on Misleading Numbers From Anthropic's Project Glasswing (False Marketing by FUD Tactics)
Posted yesterday and approved a short while ago
Censorship of Information Unflattering to IBM (or GAFAM)
Years ago we gave a platform to a censored Microsoft whistleblower
Silent Layoffs at Microsoft in 2026
Time will tell is there are investigative journalists out there who will quit parroting Microsoft (e.g. false layoff figures) and relying on LLMs controlled by Microsoft to spew out false "facts" for them
SLAPP Censorship - Part 91 Out of 200: Legal Aid in Support of Freedom of the Press and British Women (Attacked by Americans)
bolstered by prominent counsels
Codecs and Software Patents - Part XII - GNU's Web Site Will Soon Have Many Recent Talks by Chief GNUisance Richard Stallman (RMS)
GNU videos being transcoded or converted into AV1
[Video] Richard Stallman's Rapperswil (Switzerland) Talk Online
accessible without proprietary software
Trusting Trust is an Old Issue, Predating Rust and LLM Slop by Over Half a Century
Microsoft Lunduke wants to make a case against Rust and slop (LLMs), but the issues he addresses aren't exactly new or unique
California Should Have Abandoned So-called 'Age‑Verification Laws', Not Make Exemptions (for Now)
This has nothing to do with 1) children 2) safety 3) safety of children
Links 29/05/2026: Cory Doctorow on Why the Internet Feels So Broken, American Pope on Defederation
Links for the day
Techrights Does Not Censor Information About IBM, It Platforms and Retains Suppressed Voices From Inside IBM
They don't like it when people criticise the management [...] panic attacks mentioned
Bob (Robert) Cringely Devoted Three Years of His Life Trying to Profit From LLM Slop and Now He Sounds Off, It's Just Not Working and It Can Crash the Economy Soon
"The labs raising money at valuations with too many zeros are happy"
Techrights After About 60,000 Articles in 20 Years
Sites fail if they don't offer anything new or if they wrongly believe that adopting slop to parrot other sites will give them exposure
Organised Plunder or Robbery: GAFAM and Hardware Companies Rely on Media Bribery to Perpetuate False Narratives and to "Drive Sales" (and Drive Prices Upwards)
The price-fixing seems plausible and, if so, we need to demand action
Linux Foundation Destroys the Identity and History of Linux
Groklaw's PJ was thorn on the side of LF sponsors
The Problem of Microsoft Crimes
Opposing crime isn't "hatred"
The Fall of Slop (Even Microsoft Admits There's a Problem)
If Microsoft admits that slop is too expensive and is for "entertainment purposes" because it cannot be relied upon, why would anyone other than the pushers and profiteers still insist that slop bears potential?
Red Hat Will Die Inside a Dying IBM
IBM isn't where Red Hat came to thrive but where it came to die
Very Large Strike at the European Patent Office Today, "Production" Sank a Huge Deal
At this pace, we might be looking at tens of thousands fewer European Patents being granted this year
Gemini Links 29/05/2026: Leadership and Religion, the Board Game (Second Edition)
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, May 28, 2026
IRC logs for Thursday, May 28, 2026