Bonum Certa Men Certa

In the United States, the Patent 'Industry' is a Dying Breed and China Adopts This Destructive Force

This IMF chart shows that the US is still doing fine compared to China

IMF chart



Summary: The decaying patent microcosm, or the pipeline of low-quality patents and frivolous lawsuits these entail, loses its grip on the US; China, much to the astonishment of people who actually create things, is attempting to attract that ruinous microcosm (which preys on real, producing companies)

THE world changed a lot in recent years. Probably for the worse.



On the patent front, however, the world is improving, especially in the US. The only exception to this seems to be the emergence of 'zombie' patent portfolios, offloaded by the truckloads onto trolls. The concern about the fate of software patents in the US is very real. The patent microcosm is furious and there are staff cuts, too. They're becoming increasingly redundant.

The EPO and the USPTO may still be granting software patents, but fewer of these will be deemed eligible in the courtroom; fewer people will even bother filing. The numbers already speak for themselves. Litigation is down sharply.

"We are growingly worried about and frequently confronted with buzzwords as means of patenting software, in essence misleading patent examiners into granting software patents (in defiance of Section 101)."From the patent maximalists who try to convince us that more patents mean more innovation (even computer-generated patents and other awful ideas) comes this latest suggestion of "Automated Analysis of 101 Eligibility" (Alice et cetera). This is pseudoscience and a waste of time, but for lawyers with no background in the sciences this may still seem worthwhile. We previously remarked on all sorts of proprietary software packages whose marketers vainly claim to be able to asses the value/worth of patent portfolios based on text alone. Facts don't seem to matter to these people. They even compare patents to "assets". That's beyond laughable and it totally misinterprets the very essence of patents.

We are growingly worried about and frequently confronted with buzzwords as means of patenting software, in essence misleading patent examiners into granting software patents (in defiance of Section 101). These patents are disguised as "cloud", "AI", "IoT" and all sorts of other gobbledygook. Apparently, based on this new article from Nick Beckett and Matt Pollins in CMS (China), "cloud" gets used as a loophole even in China. "New patent examination guidelines are friendlier to software patent owners," they explain and then there's this (the opening paragraph alone uses the word "cloud" five times):

China is in the middle of a rapid shift towards cloud technologies. Execution of the 13th Five Year Plan will deliver substantial investment into cloud computing and the sector is undergoing unprecedented growth. Meanwhile, organisations operating in this digital economy face an increasingly complex intellectual property (IP) environment, as China becomes a global IP centre and scales up IP protection, enforcement and penalties for infringement. Indeed, the number of cloud-related IP lawsuits in China grew 158% between 2011 and 2016. Against this backdrop, organisations face an important question: how can they take advantage of the enormous opportunities presented by the cloud in a way that manages this complex IP landscape? In this post, Matt Pollins and Nick Beckett from CMS look at the practical steps organisations can take to protect themselves and succeed in the cloud.


It's no secret that China is now very much open to software patents. It's also open to patent trolls (which typically rely on software patents). It's a terrible strategy and a doomsday scenario, yet one that SIPO gleefully sleepwalks into. Yesterday, for example, IAM said that the person in the business of patent Armageddon (SIPO official) urges universities give patents to patent trolls in order to 'assert' (i.e. sue). It's unreal, but here it goes:

This week the Intellectual Property Department here in Hong Kong played host to the annual meeting focused on IP developments on the mainland and its two Special Administrative regions (Macao being the other). One of the main topics was university tech transfer issues, and it was in this area that SIPO officials most frankly acknowledged the need for significant reform. Based on their comments, there could be big changes ahead in the field.

Patent filings by Chinese universities took a major leap in 2016, reaching over 300,000 in total. Applications for invention patents, which are typically the highest quality and most valuable rights, grew by about 28% year-on-year. These impressive numbers reflect huge investment in research on a national scale, as well as recent reforms that give universities more autonomy to set their own patent strategies.

But Deng Yiyou, a deputy division director in SIPO’s Intellectual Property Development & Research Centre, says that the vast majority of these rights are not being utilised. As many as 96% of them are never commercialised, he said, meaning no product has been produced encompassing the protected technology.

[...]

Even as patent litigation has skyrocketed in China, we have not seen university assertions on a scale that has registered among industry players. The same is largely true for government-run research labs. A case filed earlier this year by the Chinese Academy of Sciences, the biggest such entity, against US LED maker Cree could prompt more IP managers in government and academia to consider a more aggressive approach. If that happens, the risk environment for all tech companies in China will shift significantly.


So basically, China seems eager to replicate the very horrible system which the US tries hard to get away from (with growing levels of success).

Watchtroll, which watches out for the trolls' interests and promotes these interests, is obviously unhappy about where the US is going. It is still attacking TC Heartland (Supreme Court decision which hampers patent trolls) and it latched onto "China!" for the delusion of lost leadership (in trolling). Fake panic and fear-mongering again. The site is full of such garbage and almost every day one can find these rants.

"Watchtroll, which watches out for the trolls' interests and promotes these interests, is obviously unhappy about where the US is going."Watchtroll must be supremely envious, seeing how patent trolls are migrating to China and doing all their blackmail/mess over there. Good for litigation 'industry'? Sure. But at whose expense? Watchtroll is basically celebrating rubbish patents where these directly harm the respective disciplines, e.g. programming/development of software.

"In direct contrast to the United States," says Watchtroll, "innovators [sic] are finding that China is increasingly welcoming to business method and software innovations after it relaxed patent examination guidelines in those sectors earlier this year."

They mean programmers, not innovators. They tend to frame programs as "inventions" in order to warp this debate. And yet, in spite of China's lenient policy on software patents, there still aren't many internationally-recognised software companies in China, are there? They're mostly based in the US, in spite of (or because of) Section 101.

What's probably even worse to come out of Watchtroll in recent days is this attack on the Supreme Court. So having already attacked judges and insulted PTAB staff, Watchtroll is now attacking the US Supreme Court, calling it "activist court when reviewing patent law..."

"Watchtroll must be supremely envious, seeing how patent trolls are migrating to China and doing all their blackmail/mess over there."Disgusting!

This was published by Robert Stoll two days ago. Like David Kappos, he's an official-turned-lobbyist and he is still lobbying for software patents, just like the former employer of Kappos (IBM). Watch what IBM's patent chief is pushing at the moment. These are attacks on Section 101. Remember that IBM is close to Watchtroll and IBM also uses the IPO to water down Section 101 (they call it a "taskforce").

Quite frankly, all we have here is a bunch of panicking patent bullies and their lobbyists. They make a living out of telling people that they need more and more patents while suing these people over patents.

"As one can easily see, this underestimates the importance of patent quality and focuses instead on quantity (the mistake increasingly made by the EPO under Battistelli)."What worries us a great deal is that former USPTO officials such as Stoll and Kappos resort to this kind of cronyism. It's like there's no separation between industry and government; policies are just being 'tailored' for very rich people -- a direct departure from proper functioning and decency.

"Putting Yourself in the Shoes of a Patent Examiner" is a new paper recommended by the patent microcosm yesterday. The abstract (with our emphasis) says: "The mission of the United States Patent and Trademark Office (USPTO) is to ensure that the Intellectual Property system contributes to a strong global economy, encourages investment in innovation, and fosters entrepreneurial spirit. In order to ensure that the large volume of newly filed patent applications are examined in a reasonable timeframe, the USPTO has a system for determining the average amount of time an examiner should spend examining a patent application. Under the current production system, productivity is assessed based on Production Units (“PUs”) achieved relative to the Examiner’s production goal. The production goal is calculated for each examiner based on the number of “Examining Hours” worked in the evaluation period and quantitative values assigned to examiner seniority and complexity of the technology examined. To quantify “Production Units”, a Patent Examiner receives different “counts” for different tasks performed at different stages in prosecution. Understanding this examiner production system - also known as “count” system - is important at least because it educates a patent applicant on the system in which Patent Examiners operate. For instance, the Examiner production system underscores the importance of the events conducted in the early stages of patent prosecution. The goal of this note is to provide an overview of the system in which Patent Examiners operate by summarizing important aspects of the system currently used to evaluate the performance of a Patent Examiner."

"Wait and watch how China collapses under its own weight of patents."As one can easily see, this underestimates the importance of patent quality and focuses instead on quantity (the mistake increasingly made by the EPO under Battistelli). Moreover, it fails to take into account the likely virtue of a patent or its expected effect on economics. If a patent is granted to just give some company a multi-billion dollar monopoly on a life-saving drug, then maybe it's better off not granted at all.

Debates about patent scope will likely carry on like this. Sites like Watchtroll will approach anyone willing enough to bash the US patent system and insist that it needs to grant an infinite number of patents. If left unchallenged, these ludicrous theories of theirs might even be regarded as truthful.

Wait and watch how China collapses under its own weight of patents.

Recent Techrights' Posts

Rumours of Further IBM Shutdowns
IBM is going out of existence
Many Anniversaries
Many anniversaries in quick succession
 
Abundance of Fake (Sometimes Paid-for) 'News' About IBM Will Discredit the Media as a Whole
In 'the news' today
Worse Than "Taking Your Job", the Slop Pyramid Scheme Will "Take Your Pension"
This will not end well
Microsoft is Trying Vapourware Again (to Keep Developers and Gamers From Fleeing)
For XBox, the main thing over the horizon is additional layoffs
statCounter Reckons 12.33% of Web Traffic in Gambia Can be Attributed to GNU/Linux, Even 15% If Adding ChromeOS
Will this be sustainable?
Reminder: The Pedophilia Problem Comes From the Accusers
Attacks on Richard Stallman are a distraction; his accusers are themselves the culprits
SLAPP Censorship - Part 139 Out of 200: Solicitors Regulation Authority (SRA) Needs More Public Scrutiny (New Management Changed Nothing, It's Costing a Lot of Taxpayers' Money)
millions or maybe billions of pounds wasted
Brigading Against Women - Part II - Threatening Women Using the Human Rights Tribunal of Ontario (HRTO) and Then False Threats Miscarrying the Name of a Court
In this series we intend to show the threats, the outcomes of those threats, the response to those threats
Collapse of MElon Companies a Taste of What's to Come for Slop Bubble and GAFAM (Trillions in Debt, Justified as Slop "Investments")
One good example of this was SpaceX
The 'Hyperinflation' in Hardware Dooms Video Hosting (Very Large Files)
a terabyte of video files would be expensive
Rumours of Silent Layoffs in Microsoft This Month (August 2026), PIPs and Global Voluntary Separation Agreement (GVSA), aka "Buyouts"
Will any investigative journalism follow or just shallow puff pieces and LLM trash from slopfarms?
Links 04/08/2026: "Framework for Musician Burnout" and Alexa+ "is a Buggy Embarrassment"
Links for the day
Signs That XBox as a Console is Coming to an End, Windows Gaming Will be Called "XBox"
"XBox" is the next "Surface"
Microsoft's Share in Search Falls Sharply in Europe
The layoffs at Microsoft's Bing will carry on
Romania: GNU/Linux Reaches 4% (Less Than EU Average)
We expect this same upward trend to carry on
Microsoft Sites or Sites Sponsored by Microsoft Angry That GNU/Linux is Gaining
The Microsofters cannot easily dismiss reports of GNU/Linux growth as "bots" or just allege that statCounter alone is wrong
Ableism in the Free Software Movement Typically Comes From GAFAM Operatives and Proprietary Software Apologists
And their hired guns
Afghanistan: GNU/Linux Steadily Rises to 9%
Windows is steadily declining
IBM Innovation: It Has Invented New Methods of Silent Layoffs or Secret RAs
How IBM disguises mass layoffs now
LLM Slop Won't Replace People and Jobs (in the Long Run)
At the end of the day, people who know their job offer more useful information, whereas LLMs waste people's time (typically an 'externality' to the entity deploying chatbots)
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, August 03, 2026
IRC logs for Monday, August 03, 2026
Over 3,500 Known Gemini Capsules Accessible and Active According to Lupa
It finally happened this morning
Gemini Links 04/08/2026: Library Cards, Dead Ends in Software Development, and DOS on USB Key
Links for the day
IBM Has Embraced and Rewarded Liars
The IBM culture vanished
statCounter Estimates GNU/Linux at 5.32% in Kuwait, Years Ago It Was Near 0%
Kuwait rose to fame in the 1990s because of a war
Swatting People Who Write About Corruption, Misogyny, Criminal Misuse of Funds
we've given ourselves a decade to cover all those stories
GNU/Linux Rises Above 6% in Colombia
In Colombia, which is a large south American country, GNU/Linux has risen steadily in recent years
SLAPP Censorship - Part 138 Out of 200: Garrett Has Basically "Lost" and It is "Embarrassing" to Them
they just wound up costing hundreds of thousands of pounds
Gemini Links 03/08/2026: Great Exodus, xkcd as Text, and Dead Ends
Links for the day
GNU/Linux Has Surged to 6.3% in Madagascar
Madagascar's adoption of Free software is a subject we covered a lot in past years
Microsoft's Slop Bet is Killing the XBox Even Faster
LLMs destroy almost anything they touch
The Cyber Show on "Weaponised Antisocial Technology"
by Andy
Alexandre Oliva on Slippery Slop (LLMs)
By Alexandre Oliva
RMS Won the Argument and Now GNU Wins Over Computer Users
He can look back at nearly 43 years of GNU and say, "I was right..."
statCounter Corrects GNU/Linux Estimates, Now Measured at 9% Worldwide
Windows has sunk like a rock
GNU/Linux-Centric Blogs Belatedly Pick Up News About GNU/Linux Gains: 4-8% Depending on the Surveyor
more people will get curious and give it a go
Links 03/08/2026: Strike By Flight Attendants (WestJet) and Greedflation
Links for the day
Links 03/08/2026: EU Curtailed Slop, Frank Zappa Recalled
Links for the day
Daniel Pocock on Sky News This Morning
No harm done
Morten Linderud Has Helped Microsoft Put Locks (and Kill Switches) on the PCs of Arch Linux Users
"the first rule of "secure boot" is to disable "secure boot"
In Poor Peru, GNU/Linux Surges From 1% to 5% in a Few Years
Windows is dying
All Social Control Media is a Weapon (Against Its Users, Serving the Real Owners)
That social control networks are weaponised isn't a new concept
Fanning the Flames of Journalism
This week we have several surprises coming
Forcing the Slop Bubble to Implode Fully to Save the Economy From an Even Greater Collapse and Societal Harm
Let's blow up the bubble. The sooner, the better
GNU/Linux at 8% in Croatia
somewhat of a GNU/Linux adoption hotbed
It's Easy to Predict Microsoft Layoffs for October 2026 Because of the Financial 'Results' That Month (More Faking, More Secret Debt and Buzzwords to Perfume This Debt as "Investment")
From what we've read, Microsoft is silently laying off people this month based on LITE, which leads to PIPs
Not Hard to Guess Who Will Pay for IBM's Collapse (Due to False Statements Made to Shareholders), Red Hat May Disappear
IBM's leadership is never being punished for its failures
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, August 02, 2026
IRC logs for Sunday, August 02, 2026
Gemini Links 03/08/2026: Collectibles, Cities of the Red Night, and Lali Lambda
Links for the day
IBM's August 2026 Promotions (Annual Ritual) Can Turn Into a "Bloodbath" (RAs, Layoffs)
IBM Common Stock is set to open in the red (minus) on Monday
Microsoft Culture Explained by People Who Work at Microsoft
"Be ready for politicking and working over time and weekends."
Codes of Conduct Attract Hoarders and Sociopaths, They Are Intolerant Towards Good People
Codes of Conduct (CoCs) are also promoted using violence
XBox is in Trouble, Sunday News Shows How Serious a Problem It Now Faces
it seems impossible to resuscitate at this point
statCounter Observes GNU/Linux at 10% in Libya
this month statCounter finally sees GNU/Linux approaching "double-figures" there
Thailand: GNU/Linux Approaching 15%, Windows in a Freefall
It makes perfect sense for Thailand to adopt GNU/Linux for technical reasons, not just political reasons
GNU/Linux in Bulgaria Back Up
part of a trend in Europe
Cuba Sees Leap in GNU/Linux Usage, as Reported by statCounter
For the ordinary Cuban it makes sense to reduce a dependence on GAFAM
Gemini Links 02/08/2026: Drift, Crawlers in Gopher Space, Purpose, and Python
Links for the day
Links 02/08/2026: Some Large Slop Investors "Crumbling", Russia Intensifies Bombing of Kiev
Links for the day
IBMers Discuss Who Killed IBM (It Impacts Red Hat)
Fedora is fast becoming like another CentOS
GNU/Linux Rises to 6% in Mexico
Did the soccer (football) matches have some impact or just the "unknowns" being deciphered (or omitted) by statCounter?
GNU/Linux Leaps to 8% in Asia
In Asia, is it a bit higher because of GAFAM distrust? Maybe some other factor/s?
Clownflare Web Usage Survey: About 10% in North America Use GNU/Linux, Worldwide 6.7%
surveyors that showed GNU/Linux growth
SLAPP Censorship - Part 137 Out of 200: Discovering That Spending a Million British Pounds (1,348,250.01 United States Dollars) on Lawyers Cannot Take Down One's Critics
just outright bullying and criminality
Steam Survey, analytics.usa.gov, and statCounter All Point to GNU/Linux Gains (Again)
This must be very annoying to Microsoft
GNU/Linux Exceeds 6% in Spain
In recent years the "market share" steadily grew from 3% to over 6%
Brazil: GNU/Linux Record High, 5%
On average, GNU/Linux has evidence of growth in many countries this summer
Amid 2026 Bing Layoffs Microsoft Share in Search Collapses
How much longer before Microsoft throws in the towel or rebrands again?
United Kingdom: GNU/Linux up to 7%, ChromeOS Another 5% (Total 12%)
further significant gains for GNU/Linux this month
Links 02/08/2026: Cheeto "Blurted Out Vile Plot to Censor ABC"; New York Times Fights 'Intimidation'
Links for the day
Why Techrights Will Still be Active a Decade From Now
Techrights will carry on for many years to come
We Are Witnessing the End of IBM
IBM cannot find growth by moving downwards, by lowering standards
The Slop Presumption Rule
Tainting oneself can take one day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, August 01, 2026
IRC logs for Saturday, August 01, 2026
Gemini Links 02/08/2026: Older Books, Esperanto Music History, and Slop Making Things Worse
Links for the day