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

Like Microsoft and IBM, the 'Alicante Mafia'-Governed EPO Does PIPs Nowadays (at the EPO, It's "Professional Incompetence Procedure")
So "PIPs" are definitely in the EPO and we saw letters sent to staff
Time for Change, More New Articles, Less Curation
The oligarchy wants to gut the real press and replace media with slop and social control media (or social control media with slop in it, i.e. their own voices, mechanised)
Almost 1,600 EPO Employees Went on Strike Last Week
There is another strike coming 2.5 weeks from now
Over at Tux Machines...
GNU/Linux news for the past day
You Know Microsoft's "Value" is 100% Fictional When in One Single "Trading" Day in Wall Street It Loses THREE TIMES More in "Value" Than It Was 'Worth' in 2009
Microsoft does not behave like a company riding trillions but like a company that struggles with payroll
Better Outcomes When Facing the Discomfort of Conflict
Don't take the easy way out when the "hard way" is the right way and it can result in positive revelations
Leaving the United States 3 Years Ago Was the Best Decision We Made
A lot of stuff is being consolidated
 
Links 05/02/2026: Canadian Government Uses US LLMs to Override Expert Opinions, NVIDIA Troubles Due to Enablement of Mass Plagiarism ('Piracy') Misleadingly Obscured as "Hey Hi"
Links for the day
Explaining the Letter From JUDGE SYKES FRIXOU, Threatening Me Around the Time GNOME's Nat Friedman Lost His CEO Job at Microsoft GitHub and His Best Friend Got Arrested for Strangulation
this letter (with annotation) is critical
Linuxiac Not Rehabilitated, It's Still Full of LLM Slop (Part of a Trend)
The Web as a resource/source of information is perishing
"Sponsored by Azul" to Write Fake 'Article' About Azul, Quoting Azul Itself
The "journalism" industry [sic] became so utterly corrupt
JuristGate is for sale: three billion Swiss francs for a domain name
Reprinted with permission from Daniel Pocock
Gemini Links 05/02/2026: Coercion, Antibiotics, and LVDT Project
Links for the day
IRC Proceedings: Wednesday, February 04, 2026
IRC logs for Wednesday, February 04, 2026
Links 04/02/2026: Extreme Malice in Microsoft's Visual Studio Code on GNU/Linux, More Hey Hi (AI) Chaos
Links for the day
Sexism & GNOME: shaming men, hiding women, Sonny Piers update
Reprinted with permission from Daniel Pocock
Gemini Links 04/02/2026: Humanity and Animality, systemd (Controlled by Amutable, a Proxy of Microsoft) Moves on to "Extinguish" Phase
Links for the day
Certificate Authority Let's Encrypt Used to be Widely Used in Geminispace, Now It's Down to Just 0.2% of the Whole
Let's Encrypt is not your friend
What IBM Does Is Clearly Illegal in the US: Tying Severance Packages to NDAs (Non-Disparagement Agreement/Clause)
The NDAs make things worse; they keep people isolated and silent
Microsoft's Giant Snowball of Layoffs and PIPs (in 2026)
They would delay until March or April if they wanted to, but then we can expect numbers exceeding 10,000 layoffs (Microsoft always low-balls the real figure/s)
Mozilla Turned Firefox Into Shovelware, Adding 'Kill Switch' for Slop Still Means Mozilla is Participating in a Pyramid Scheme, Plagiarism, Grifting
Mozilla is still a slop pusher
Links 04/02/2026: "Laws of Succession" and Microsoft's VS Code as Code-Stealing Malware
Links for the day
BillBC (BBC) Covered Up Pedophilia, Now It's Covering Up for Its Sponsor Bill Gates by Reprinting His Lies, Which His Own Wife Disputes
Is Bill Gates having orgies (group sex)?
Phoronix Swims With the Real Trolls, People Who Fancy Proprietary Software and Back Doors
If Larabel begins to actively participate in provocation with the "Microsoft GitHub fans club", what does this tell us about Phoronix?
They Know Microsoft Layoffs Are About to Hit Them Hard
The gaming division at Microsoft is a complete catastrophe, lots of money (debt) down the drain [...] Buying Activision was all about misleading shareholders or hiding the deep trouble/problems XBox was having
Red Hat is Not a Linux Company, It's IBM's Ponzi Scheme Enabler
Had we still been stuck in 2021, perhaps IBM would plaster "NFT" or "metaverse" all over RedHat.com
Keep Grinding
"Don't let the bastards grind you down"
Mobbing at the European Patent Office (EPO) - Part III - Who's Going to Pay for the EPO's Corruption? (Aside From European Citizens)
Some people inside the EPO reached out to us
"Investors Are Concerned About an AI Bubble" (That GAFAM and IBM Ride)
A few decades from now IBM will only be remembered in the same sense many so-called 'AI' companies will be remembered
EPO Staff Union: "Very High Strike Participation on Friday 30 January", Another Strike Starts 19 Days From Now
EPO management in a bit of a panic
Censorship/Free Speech and Social Control Media
It's important to have a grasp of how contemporary censorship works and how to tackle it
Google News as Slop Booster
this is what Google links to
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, February 03, 2026
IRC logs for Tuesday, February 03, 2026
Gemini Links 04/02/2026: "Raspberry Pi Relaxes the Rules for Its RP2040 Hacking Challenge" and "Long Web Society"
Links for the day
IBM Falls by Over 10%
a recipe for disasters like accounting fraud
Links 03/02/2026: Windows Copies GNU/Linux, Windows TCO Shown Again
Links for the day
Gemini Links 03/02/2026: Alhena Turns One, Slop Rejected, and Max Roy Carrouges Recalled
Links for the day
How to Identify Demonisation or Dehumanisation Tactics Against Interesting Figures or Luminaries in Free Software
Rather than in general or generally in technology
We Should Learn From Bulgaria
Why can't European companies and government recognise and react to a threat (when they see one)?
Dr. Andy Farnell on Why and How European Authorities Can Adopt Free Software, Parenting in the Age of Digital Abundance
Will Europe use technology that Europe controls (not the hegemon), for a change?
Canonical: Ubuntu is GAFAM (US), We're Resellers of American Proprietary Software
They want people to pay for a licence
Seems Like IBM Trolls Use Chatbots to Vandalise Platform That Discusses IBM's Secret Layoffs, Forever Layoffs
Not for the first time either
You Know Your Company is Dead or Basically a Pyramid Scheme When Jim Cramer Keeps Promoting Its Stock
How much does IBM pay for "puff pieces" or "fluff" about QC?
Red Hat (Under IBM) Works for Microsoft (Proprietary Software) and Slop
Yesterday Red Hat's official site, redhat.com, published exactly 5 new blog posts
IBM is Dying (More Layoffs), Red Hat Will Continue to Suffer From the Acquisition
Financial engineering
Colombia Adopting GNU/Linux Even Faster (at Microsoft's and Apple's Expense)
Do politics play any role in this?
An Effort to Tackle Slavery in 'Open Source' Clothing
"a civil rights lawsuit to examine the concerns of censored developers in the free, open source software ecosystem"
$15 billion lawsuit: Ubuntu, Google & Debian crowdfunding campaign launch
Reprinted with permission from Daniel Pocock
The Solicitors Regulation Authority (SRA) Delusion - Part II - Why We Need to Expose the SRA to More Daylight, Public Scrutiny
SRA is neither effective nor regulated
Links 03/02/2026: "Distraction is a Sin" and Fake "Encryption" (Surveillance With Good Marketing)
Links for the day
400-Page US Federal Court Against Abuses by Google, Microsoft and Front Groups That Abuse Volunteers for American Corporations
There are 386 pages in total (in the US claim)
Corporate Influence Never Impacted Us
There's no reason to assume we'll ever "sell out"
Growth of GNU/Linux in Cuba
Right now a lot of the world drafts or already implements a GAFAM exit plan
A Day After EPO Strikes an Escalation to Heads of Delegations to the Administrative Council
They rely on the European media playing along, helping them to hide major blunders, even crimes
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, February 02, 2026
IRC logs for Monday, February 02, 2026
Gemini Links 03/02/2026: Stargazing, Development Boards, and Tcl/Tk Slop
Links for the day