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

IBM's Kyndryl Down Almost 20% in 5 Days, IBM Down 35% in About 6 Months, Further 'Staff Reductions' at Red Hat (Problems Paying Salaries!)
Will this year's festivities be Krishna's last?
More Mass Layoffs at Microsoft, Only Weeks After the "Buyout" Nonsense (Glorified Severance to Highest-Paid American Staff)
Next up it is LinkedIn
IBM Lost Nearly 33% in "Value" in 3 Months (Shares Down $100), But Nobody Held Accountable
This is a truly dysfunctional company
 
Links 13/05/2026: Sudan War Enters Fourth Year and Strait of Hormuz Leaves Safe Passage a Gamble
Links for the day
Gemini Links 13/05/2026: Useless Protests and Foofaraw on Geminispace
Links for the day
Mainstream Media: Microsoft Says No Layoffs. Microsoft: OK, There Are Layoffs.
Where is Waggener Edstrom/Frank Shaw now?
IBM is in a Freefall, When Will IBM's CEO Fall on His Sword?
Since he controls the Board, is anyone in a position to fire him?
At GitLab, "AI" is "All India"
It says "as much as 30%," but they also hire and it's clear what demography is targeted
Verified Accounts of Microsoft Offering 'Retirement' (Layoffs) to People in Their 40s, Over Two Decades Earlier Than Retirement Age
It's not even about performance, it's about age (or "cost" as well as location; they cheapen the labour)
Links 13/05/2026: Slop Turns Into 2008-Style Subprime Bubble, Mass Layoffs at Starbucks
Links for the day
They Don't Like the Layoffs, So They Are Rebranding Them
Layoffs are layoffs
IBM Downgraded as the Shares Sink to New Lows
The current strategy of IBM is financial engineering, wage reductions, and mass layoffs that the corporate media refuses to even write about
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, May 12, 2026
IRC logs for Tuesday, May 12, 2026
Gemini Links 13/05/2026: TUIs and Internet Radio
Links for the day
How the European Patent Office Became a Crime and Corruption Hub, One of Europe's Biggest
incomplete outline
Techrights at 19.5 (We Started in 2006, Days After the Microsoft/Novell Deal)
When Novell bought Ximian (run by the "best friend" of Graveley) it brought trouble to all of us, not just to Novell
In Croatia, Microsoft Windows Share Sank From 98% to All-Time Low of 67% (or 28% If One Counts Android)
statements made last week (and last month) by Microsoft's CEO confirm that Windows is rapidly losing users
SLAPP Censorship - Part 75 Out of 200: All True, All Verifiable, Unlike Garrett and Graveley Lying to at Least Three High Court Judges About What They Did
A lot of what I said a year ago not only turned out to be correct; it was moreover affirmed by Garrett after he had sworn on the Bible and put himself at risk to his liberty
The Corrupt Lecture the Non-Corrupt - Part XXI - EPO President Campinos Bribing to Buy His Seat, But Cautions Staff Against Bribery
This isn't a democratic institution
Gemini Links 12/05/2026: Spring Cleaning and New GemText Software
Links for the day
Links 12/05/2026: Samsung Sued by Dua Lipa (Publicity Rights), ‘Savage Love’ Copyright Infringement Lawsuit
Links for the day
IBM Falls to One-year Low
At one point or threshold does the Board (controlled by the CEO) sack the CEO?
Gemini Links 12/05/2026: On Astronomy and Stargazing, Coyote Time, and Freenom
Links for the day
Links 12/05/2026: Data Centres Destroying Neighbourhoods, "Care Workers Are Saying No to 24-Hour Workdays"
Links for the day
Richard Stallman to Give Public Talk in Erlangen, Germany (Next European Tour)
Seems like a large room
Google "Hey Hi" (Slop) Having a Stroke, Thinks I am Married to the Grandmother of My Grandfather
Seriously!
If IBM Suddenly Vanished in the 1980s, There Would be Chaos. Not Anymore.
IBM's management has rendered IBM more irrelevant than ever before
Beehiiv and Substack Are Platform Lock-in (Similar to Vendor Lock-in), Don't Use Beehiiv and Substack (and the Likes of These)
Proprietary platforms are a problem. Some people "get it" sooner than others.
Gitlab is in Trouble and Its Shares Have Collapsed
Down almost 80% since it began [...] The real issue has nothing to do with slop, it is a lack/loss of customers and erosion of the company's theoretical "value"
Microsoft: Mass Layoffs Are "Offers" (Like "Job Offers"), Culling Experienced and Highly-Paid Staff is "Softer Workforce-reduction Strategy"
Media sites that play along with those lies don't do journalism, they're in the PR industry
Under IBM, Mass Layoffs at Red Hat No Better Than Oracle Under Larry Ellison (Treating Workers Like Disposables - Even Enemies - Overnight)
under IBM the respect for the worker (or peer) does not exist
The Slop-Amplified Fear of Privilege Escalation (Local, Not Remote) in Linux, the Kernel
we are meant to assume this is no better and no worse than Microsoft intentionally putting back doors in everything, even encryption
Jim Zemlin/Linux Foundation Selling Anthropic Slop After Getting Bribed for Slop Marketing ('Linux' Foundation is a Pay-to-Say For-Profit Marketing Company That Buys and Manipulates the Media Based on False Pretences)
Look what they've done to Steven Vaughan-Nichols (SJVN)
GitLab the Latest Company to Do Mass Layoffs and Use Slop as the Go-to Excuse (GitLab Users Should Worry Too)
This round of layoffs (disguised as something else) has nothing to do with slop ("hey hi"). It's about commercial problems.
The Corrupt Lecture the Non-Corrupt - Part XX - EPO Management's Unified (One) Voice or Policy is, Doing Cocaine is OK When You're a Friend and/or Family of President Campinos
The management needs to resign to save the Office
Technology Not Meant to Last
A society apathetic towards declining production (or manufacturing) standards will end up ripped off
statCounter Cannot 'See' Chinese Operating Systems That Gain Many Millions of Users Per Month
There is no way for statCounter to recognise or show the market share of HarmonyOS
SLAPP Censorship - Part 74 Out of 200: The Basis of My Lawsuit Against Alex Graveley, Who Helps Garrett Stack the Docket in Another Continent
claim against the Serial Strangler from Microsoft
Update on Slop About "Linux"
"Linux" is a term many people are interested it, so it's not shocking that slopfarms target it
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, May 11, 2026
IRC logs for Monday, May 11, 2026
GAFAM (Microsoft) "Cloud Computing" Means Another Country's Military Accesses All Your Data
reminder that confidentiality and Clown Computing are complete opposites
Another Discrimination Lawsuit Against IBM and Workers Say IBM Culls Older Workers (Just Like Microsoft)
If IBM fails to retain some of the smartest people, then what is the future of IBM?
Gemini Links 12/05/2026: Android Nostalgia and Switching to Guix
Links for the day
Links 11/05/2026: Another Oracle Setback and Mass Layoffs in Iran
Links for the day
Gemini Links 11/05/2026: Older Can Be Faster and Textmode Workflow
Links for the day
Links 11/05/2026: The Solicitors Regulation Authority (SRA) Admits It Only Reacts When It's Too Late (Damage Already Done), Ombudsman’s Animal Cruelty HK Report
Links for the day
If It Takes You a Second to Serve (or Receive) a Page, That's Definitely Too Slow
For speeds at milliseconds (e.g. for pages to fully load in a tenth of a second) the pages must be ready to be sent as soon as they're requested
It's Not About Speed, It is About Patience and Adherence to Truth, Principles, Scientific Integrity
attacks on us only ever made us stronger - a lesson that our adversaries have learned the hard way
Cyber Show Does it Like Techrights: Static and Gemini Protocol as 'First-Class Citizen'
HTML and GemText (over Gemini Protocol) would be rendered in tandem
Libya's Share on the Web: 5.2% GNU/Linux
GNU/Linux has hit an all-time high there
SLAPP Censorship - Part 73 Out of 200: Microsoft's Graveley and Garrett Remain Closely Connected in May 2026 ("Tag-Teaming" Against Bloggers in Another Continent)
The phrase "judge a person by their friends" seems applicable here
Codecs and Software Patents - Part VI - The European Patent Office, Nokia, Microsoft, Sisvel, and More
Whatever Nokia used to be, it's certainly not an ally and a lot of the turmoil at the EPO is the fault of companies like Nokia
Discussions About When the Axe Falls at IBM/Kyndryl (11,000 Layoffs Estimated)
"Kyndryl restructuring should reduce overhead functions and reduce the number of managers that lack technical knowledge"
A World After Microsoft (and GAFAM) and After GitHub Shuts Down
the only growth area is debt
Fake News, Propaganda, and Misinformation: Microsoft Investing Money It Does Not Have in "Hey Hi" (for "Entertainment Purposes" Only)
This will not end well
Today the Whole European Patent Office (EPO) is on Strike and Next Monday an Even Bigger Strike
the media refuses to cover these and is thus complicit
The Corrupt Lecture the Non-Corrupt - Part IXX - EPO Management Speaks of Reputation and Integrity While Putting Cocaine Addicts in Management
If the EPO values its "reputation", then it needs to start by ousting the management
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, May 10, 2026
IRC logs for Sunday, May 10, 2026
Links 11/05/2026: Security Breaches, Politics, and Energy Crunch
Links for the day
Gemini Links 10/05/2026: "Accidental Cameras" and "Addictive" Interfaces in Social Control Media
Links for the day