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Losing the War on Patents

theodp writes: "Jeff Bezos and Tim O'Reilly's once-hyped BountyQuest.com takes a beating in a Salon article today that takes note of Amazon's recent decision to license one of the few patents BountyQuest claimed to have found winning prior art for, a patent held by the InTouch Group, who had sued Amazon for infringing on the patent prior to Bezos' reported $1+ million BountyQuest investment. In the article, professional patent buster Greg Aharonian provocatively remarks that "BountyQuest was always a joke...Bezos and O'Reilly were never seriously interested in patent quality...Bezos just used O'Reilly to help Amazon...That Amazon ended up licensing the InTouch patent just shows how stupid the whole thing is.""

21 of 179 comments (clear)

  1. Licensure does not Mean What You Might Think by euphline · · Score: 5, Insightful
    Amazon.com's decision to license a patent simply means that they did a little bit of math to determine whether the cost to litigate the patent suit, combined with the odds of winning were greater or less than the cost of licensing the patent. Clearly, they determined that it was simply cheaper to license the patent than to litigate it.

    The legal system in the United States is (unfortunately) often used by unscrupulous companies that know that settling their lawsuit will be cheaper than litigation... regardless of the merits of the case.

    That said, settling lawsuits (also known as ADR, Alternative Dispute Resolution) is a *good thing*. This gets the decision making out of the hands of judges and juries and into the hands of the parties. It allows folks that are at odds to come together on something where they both have *some shot* of going home happy. At the end of a lawsuit, often everyone loses because of the high cost of litigation.

    -jbn

    Please note: Part of the cost of litigation is lawyers. They are just doing their job. Part of the cost of technology is hiring techies. Don't fault lawyers for getting paid any more than you fault yourself for getting paid.

    1. Re:Licensure does not Mean What You Might Think by SirSlud · · Score: 5, Insightful

      > settling lawsuits (also known as ADR, Alternative Dispute Resolution) is a *good thing*

      No it's not. It only means that trying to do the right thing (that is, figure out who really owns a patent and whether or not its valid) is more expensive than paying wallet-service to unsubstantiated claims.

      If thats the pinnacle of achievement of the market based economy, count me out. Like how the IMF bailed everyone out of the Asian market crisis, nobody ends up learning anything, and stupidity is allowed to reign. Market based tactics always place the interests of the few (private interests, natch), above those of a soceity at large, which is why in this day of wealth-stroking penetance, the social costs of systems supporting private interests are huge. So long as you blindly stroke the market with your narrow minded rhetoric, it will continue to do so, instead of serving the broader social interests (ie, barrier to market, equality in market participation) that it was designed to do.

      Money talks louder than Right. If you claim thats a good thing, you're too far gone to save.

      --
      "Old man yells at systemd"
  2. Unusable legally? by interiot · · Score: 4, Insightful
    Speaking of the BountyQuest prior art discovery:

    • "It was never used in the case," says Joshua Kaplan, founder of InTouch. "The defendants didn't bring it up."
    Simple answer: it wasn't viable as legal evidence in a court of law?
  3. If It's broke don't fix it! by Gopher971 · · Score: 4, Insightful
    The US Government seems to have a very blinkered approach to patent reform. Blindfolded in fact.
    However some of the cures seem worse than the disease. For Example:

    Others are calling for more radical government reform. Richard Stallman, founder of the Free Software Foundation, argues Congress should exclude software from the patent system. "That," he says, "would really solve the problem."

    or


    "One reform is to require applicants to do prior art searches, as opposed to the current rule that they disclose what they know," he says. "The current rule allows them to wimp out by saying, 'We didn't know because we didn't search.'"


    They do not tackle the underlying problem. The Patents system was never designed for software and code. Patent legislation and practice law has been distorted to accomodate them and this has led to "bad" patents.

    If this can be resolved is up to FTC but going on past experience I wouldn't expect too much progress.
    --
    Just you're average nitpicker.
  4. The war is not over..... by brownj_685 · · Score: 2, Insightful

    The war isn't over, nor do I think it will ever be over. Just another battle lost. It takes time for things to change. Just because it isn't happening a quickly as you might like, does not mean you give up the fight. James

  5. What can we honestly do? by JohnDenver · · Score: 5, Insightful

    20,000 software patents a year...

    That really bothers me. As a software developer, I've always aspired to make some really cool killer application, but I wonder how many infringments of obvious patents I would encounter if I attempted to do so.

    So what am I going to do? Drive down to DC and hold up posters and distribute leaflets in front of the USPTO while the people who are taking advantage of the patent office laugh at me as they work on receiving thier government sanctioned monopoly on an IDEA???

    Wait a minute... I thought we were capitalists. What's this crap about the government sanctioning monopolies? On ideas non-the-less.

    I don't know about you guys, but I feel helpless in this situation. I grew up actually believing that this civilization was about real prosperiety and the creation of wealth.

    I had one idea. I figured that with 20,000 some patents a year, we could assemble them and demonstrate how easy it is to infringe on obvious patents.

    The way I would probably demonstrate this would be by writing a VB program in front of a group of people, much like the seminars. As I add features, I would tally the number of patents I infringed on.

    Hell, you don't even have to show any code, just the natural evolution of ideas. Maybe as you're improving the software you could poll the audience for the next improvement and to thier surprise, they would discover thier obvious solution had been patented.

    That's one idea, but it's fill with a ton of flaws. Ex: Who wants to watch me improve on a software program? Where am I going to do that? How am I even going to get people there?

    I don't know about you guys, but I want to stop bitching about this and do something. The question is: What can I honestly do?

    --
    "Communism is like having one [local] phone company " - Lenny Bruce
    1. Re:What can we honestly do? by Shiny+Metal+S. · · Score: 3, Insightful
      Please, do not confuse copyright and patent system. They have very little in common. I know why were the patent laws introduced. I'm asking about the spirit of such great people like Thomas Jefferson, not what is the patent system for.
      So the government setup this thing where they will protect your idea for x years so you can make money off it, and in exchange, you give your idea to the world. Everyone wins.
      This is very important to understand: When someone gets a patent for obvious invention - only this one person wins, while the rest of the world loses. It is especially true with software patents, where I can write a program and distribute it to millions of people with zero cost. The license fee is no longer a small percentage of my investment. It's the only cost, which absolutely stops development of free software.
      Sure, you can get rid of copyright and force people to give their ideas up, but other countries have tried this, and the result is no one makes up new ideas.
      Could you provide any examples to illustrate your point?
      --

      ~shiny
      WILL HACK FOR $$$

  6. Software patents by alcibiades · · Score: 3, Insightful

    There are some problems with the way patents are examined in the US, but the fact is that US patents are of higher quality (and hence more valuable) than patents anywhere else in the world. This is due in large part to the effectiveness of the examination system.

    Software patents are not examined as effectively as other types of patents, e.g., for hardware or mechanical devices, in large part because of the natural language problem; when I claim software, I am claiming an algorithm that can be described in hundreds of different ways in English, even though to one of ordinary skill in the art all of those descriptions would mean the same thing. Add to that the fact that the technology is developing so quickly that nobody in the industry is aware of all the latest developments, and you have a serious information distribution problem -- examiners don't have access to the prior art.

    The answer is not to overthrow a system that has helped to make the US a global leader in technology development. In fact, few, if any, changes need to be made to the system at all. As the software industry develops, the fundamental concepts that form the basis for technology in the industry will become better and more widely understood, and fewer "obvious" patents (like the "one click" patent) will issue. In the mean time, we have to look carefully at what is being claimed in these patents to see how the industry develops a legal description for its fundamental concepts.

    Software patents in the end will protect small companies that come up with "killer apps" rather than allowing large companies to perpetuate monopolies that are founded on their dominating share of the market. The patent system has done this again and again in other fields, and software will be no different.

    1. Re:Software patents by CrazyDuke · · Score: 2, Insightful
      ...except for the individual programmers and small companies that can't afford to pay the $20,000+ per patent.

      I have some ideas for inventions myself. But, since I can't patent them, I'm not even willing to test them, or try to get a investor to help with the patent, because some big corp would probably patent it out from under me if it had any real value; And then it sue me into the ground because I can't afford any kind of legal despute if I tried to make my own invention.

      God bless America, Land of the Free (Corporations)

      --
      Any sufficiently advanced influence is indistinguishable from control.
  7. Re:Lawyers are all evil bastards by ichimunki · · Score: 5, Insightful

    Market economy? Lawyers are a guild whose practice it is illegal to perform without joining the guild. That's an artificially restricted supply, hence not a free market. Try again.

    --
    I do not have a signature
  8. Prior art intentionally buried? by r2ravens · · Score: 3, Insightful

    From the article:
    " ...anyone smart enough to figure out how to find the prior art will know enough about the industry to go straight to the players -- law firms, companies -- and sell the prior art directly, cutting out the BountyQuest middlemen."

    So, let me see if I understand this. It is possible that if one discovers prior art, one could contact law firms and companies directly to sell this knowledge? One might even contact the company which is the patent-holder in question to see what it would be worth to keep this information a secret, or sell the information to the patent-holder themselves so that they may bury it.

    This sounds like quite the little cottage industry and much like the many designs for 100+ mpg carburetors which have been purchased by the car companies and shelved.

    I know that it is possible that some other person may find information regarding the same prior art, but the gamble might be worth it from the companies perspective based on how many or how few people might be looking at a particular patent and the value of that patent.

    It wouldn't surprise me that this is taking place. Another possible example of capitalism at it's finest.

    I guess greed may still rule...

    --
    War is Peace. Freedom is Slavery. Ignorance is Strength. - George Orwell or George Bush?
    1. Re:Prior art intentionally buried? by bmajik · · Score: 3, Insightful

      Do you have any non-men-in-black links to back up the "100 mpg" carburetor ?

      a) fuel injection has been more fuel efficient than carburettion since like, 1980

      b) many vehicles are hit with a gas-guzzler tax because they dont meet some fuel efficiency standard. that cost is directly passed to consumers, meaning a higher price point for a given car, meaning less attractiveness compared to some other vehicle which is more fuel efficient

      c) things like CAFE and other clean air / efficient fuel laws penalize automakers that dont meet draconian fuel efficiency standards.

      in other words, fuel efficiency is a _major_ cost issue for car makers. the prices of the cars go up if they aren't fuel efficient, and the carmakers actually get fines if they dont ship cars in a certain range of efficiencies... to the extent that some foreign cars will never come to us shores because of the pentaly imposed..

      for example, BMW just designed and built a brand new engine factory because they figured out how to get approx 15% fuel economy improvement. This is a major leap forward in engine design. All future BMW engines will incorporate this technology (valvetronic)

      So, tell me who's sitting on a 100mpg _carburettor_ that actually works, and is a relevant choice for application in a US motor vehicle ? Because i'd be curious to see what mathematics comes up with a scenario where sitting on it is better than putting it in a car...

      --
      My opinions are my own, and do not necessarily represent those of my employer.
    2. Re:Prior art intentionally buried? by cascadingstylesheet · · Score: 2, Insightful

      Another possible example of capitalism at it's finest.

      No. Patents are government granted monopolies. They only exist because of government.

  9. Prior art is only part of the solution. by MongooseCN · · Score: 3, Insightful

    You also have to have the time and money to defend your prior art in court. Say you invented and patented an algorithm for some form of super video compression years ago. Now if Microsoft decided today to use that algorithm in their product, would you try to take MS to court? Do you think your average programmer is going to have the time and money to defend his patent against a large corporations armada of lawyers hired specifically for the purpose of creating and defending patents? No, just finding prior art doesn't mean anything if you can't defend it.

  10. The Purpose of Patents by TomRC · · Score: 3, Insightful

    The only purpose for existence of the patent system is to encourage the invention of novel inventions and methods and publish them to make them available for the use of the nation.

    Ask yourself: was there a lack of innovation before software became patentable? Has innovation in software increased since software became patentable?

    Are software inventions more or less available for use once they are patented?

    Corporate patent lawyers actually DISCOURAGE engineers from seeking solutions to technical problems in the patent system - it would open the corporation up for patent law suits. It's much safer to re-invent the wheel.

  11. Re:Goes to show, you can't be too cynical by ajakk · · Score: 3, Insightful



    A step towards helping this would be if the courts took an example from (e.g.) English courts, where it's much more usual for the loser to pay both sides' legal costs.

    After starting off with a good explanation of why people settle, you offer a solution which just makes it worse. If the loser has to pay the other's attorney's fees, then people will settle even sooner because the amount of money they could lose is significantly higher. Example: lets say that example company R sues other company I for patent infringement. R sues I for $10 million dollars. I knows that the patent is silly. If they fight the patent, they will have to spend $2 million for lawyers (as will their opponents). Now if I wins, they will lose nothing, but if they lose the case, they will have to pay $14 million ($10mil judgement + 2 mil. lawyers + 2 mil. other lawyers). This sort of distribution of costs makes it harder for companies to know how much a lawsuit will cost, and most companies being risk adverse, they will settle to avoid the lawsuit. Simple enough answer: you didn't implement the idea, you don't get damages. You can stop people from using your idea, and you can negotiate to license or sell it, but what you can't do is negotiate using the threat of an insanely huge lawsuit.

    Mostly I agree with this. What happens if you were working on implementing an idea, but someone else comes out and uses your patent, and they destroy your market. Ie. you have a patent on a widget. Joe Bob reads your patent and starts selling the widgets, and everyone who wants a widget has already bought one. Now you sue Joe Bob, and he can't sell them any more. What are you going to do with your $30 million dollar widget factory?

  12. Re:Goes to show, you can't be too cynical by Jahf · · Score: 4, Insightful

    In my mind, the system that would work best is:

    a) Plaintiff wins, legal fees covered by individual parties since the Plaintiff was shown to be "in the right".

    b) Defendendant wins, all legal fees are covered by the plaintiff since they were responsible for bringing the suit to court and wasting everyone's time and money.

    That way the defendant, who did not call the court to action, never has to pay for the often exorbitant plaintiff's legal fees. Additionally, plaintiffs have an incentive to only bring to trial issues that they are "in the right" on.

    We'd still have problems, but far fewer lawsuits would be brought on just to threaten someone into submission.

    --
    It is more productive to voice thoughtful opinions (reply) than to judge (moderate) others.
  13. Re:Goes to show, you can't be too cynical by Animats · · Score: 5, Insightful
    Sure, it's farcical that the USPTO is funded through granting patents....

    That's a good point. Maybe the issue fee ($1280) should be folded into the filing fee ($740).

  14. obviously... by Dr.+Awktagon · · Score: 3, Insightful

    BountyQuest was always a joke...Bezos and O'Reilly were never seriously interested in patent quality...

    If you're at Vegas and you find a broken slot machine that pays out more than 50% of the time, would you tell anybody? Would you do anything about it? Why on earth would you?

    You'd just get in line along with the hundreds of other people and start pulling that lever..

  15. Re:Who gets to define *common sense ideas* ? by Catiline · · Score: 3, Insightful

    They need to guage the public's knowledge NOT by what they THINK the public knows ... but by what the public has shown it knows through prior art references.

    I feel really bad smashing your beautiful argument to little bits, but you made a critical error. The "common sense" in question isn't of Joe Public, but of specialists. I don't have to be a nuclear physicist, but I expect that if one came up with a brilliant new idea- say, cold fusion- and it worked, that they could go to the patent office and get a patent. OTOH, I don't want folks going and getting a patent on (for example) putting your socks on before your shoes.

    The problem here is that the PTO has delegated the lion's share of research into prior art to the applicant. How many people do you think, under that system, would do research? Either the PTO has to do independent research, or would also have to say "We will invalidate any patent granted if we are notified of prior art, no matter how minor, relevant to your patent that was not mentioned in the application."

  16. Re:Hurt to developing economies by Lonath · · Score: 3, Insightful

    They're not going to allow software patents. The rest of the world just flat out won't respect patents and they will continue to make new software and only the 5 percent of the world's population in the US will get dragged down by them. Think about the long term implications of this:

    You can write any software you want for 95 percent of the world's population (a vastly untapped market) or you can run through a minefield of regulations to write software for the 5 percent of the world with a very mature market. I see the rest of the world opting out of the US IP system.