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Parties Behind Eolas Patent Reexam Revealed

theodp writes "While news accounts credited Tim Berners-Lee's mighty pen with triggering the USPTO reexam of the Eolas plug-in patent that could negate a $520+ million judgment against Microsoft, newly released USPTO interview notes suggest the reexam may owe more to an alliance of tech giants who appear to have quietly advanced the same arguments to the USPTO weeks prior to Berners-Lee." See also some previous coverage of the Eolas patent circus, and more below about the USPTO reexam.

theodp continues "According to a 4-27 Interview Summary, the USPTO presented Eolas with a 10-14 letter signed by in-house counsel from Microsoft, AOL and Macromedia, a 10-15 letter from Adobe, and a 10-22 letter from the law firm of Sidley Austin (aka Microsoft's lawyers) in connection with its proposed rejection of Eolas' patent claims. All predated the 10-24 letter from the W3C's counsel as well as Berners-Lee's widely-publicized 10-28 letter, which seems unlikely to have prompted the USPTO's detailed 10-30 Reexam Order. The W3C has repeatedly had no comment when asked if the 'newly cited art' provided in its 10-24 filing had already been supplied earlier to the USPTO by others. UPDATE: In response, the W3C's Danny Weitzner points out that the preceding words are mine and should not be confused with those of a distinguished journalist."

26 of 84 comments (clear)

  1. What, again? by agoatley · · Score: 5, Funny

    What, you mean that there's more than one patent the USPTO has wrongly green-lighted?
    -Ashton

    1. Re:What, again? by tambo · · Score: 4, Insightful
      I'm a patent attorney who plans to build a career out of prosecuting software patents. I'm also halfway through earning an MCIS and several MCP certifications.

      So I think that I'm well-positioned to state that awful software patents are bad for everyone - including the patentee.

      Eolas is only the latest example in this stream of patents that should never have been filed, let alone examined and issued. Microsoft's double-click patent, Amazon's 1-Click patent, Yahoo's patent for an Internet search engine - these are not only completely unenforceable, but serve as albatrosses to the patentees attempting to assert them.

      I blame these patents on four factors:

      • USPTO: Horrific ineptitude in examining even the most obviously (in the conventional sense) non-novel inventions.
      • Patentees: A fundamental misunderstanding of the purpose of acquiring a patent, and the ramifications (legal, business, and PR) of asserting it against competitors.
      • Patent prosecutors: A lack of technical skill in software (far too many software patents are prosecuted by EEs who view software as just another circuit* - with poor results), and/or a reprehensible willingness to prosecute such patents. (Indeed, one wonders how filing a patent on "double-clicking application buttons" complies with the patent attorney's ethical obligation of candor before the USPTO.)
      • The simple fact that the field of software patents, in reality, is only six years old - the landmark court ruling that compelled the USPTO to issue software patents en masse issued in 1998. The USPTO has not had the time or resources to adjust, e.g., to hire an army of examiners skilled in the software arts and to build up a technical reference library.

      While these patents are a collective debacle for the USPTO, the premise that software should constitute patentable subject matter is generally well-settled among the legal community (though, of course, the /. community has its own views.) I present the textbook example of an elegant, useful software invention worthy of patent protection: RSA - the public-key system that permits relatively effortless secured communication via one-way encryption.

      There is a silver lining to this story. If you go back 30-40 years, you will see a host of complaints about these new-fangled patents on biotechnology - many claims that allowing inventors to patent novel organisms, gene sequences, proteins, and research techniques posed a horrific threat to biotech research and product development. These claims assumed the same basis as many of today's complaints against software patents: examiners were hopelessly lacking in technical skill in these areas; the subject matter qualitatively differed from conventionally patentable fields of art; a 17-year monopoly (pre-1995) represented a calamity to rapidly-evolving technology and typically-cooperative research. History has shown that those fears were hugely outweighed by the overall benefits of biotech patents - as evidenced by a thousand, wonderfully effective therapies and drugs (many of which, like prozak, are now expired, transferring the technology to the public domain.) Biotechnology and medicine are experiencing a huge upsurge in the pace of technical development - thanks in large measure to the willingness of corporations to invest in (potentially patentable) biotech R&D.

      I posit that the software arts will experience a similar upsurge in innovation in short order, directly related to the allowance of software patents. The boondoggles that make for provocative /. headlines are the regrettable consequence of an unplanned transition, which time will remedy. These awful patents will expire - and, indeed, will serve as documented prior art for future corps of examiners to assert against future idiot patentees. It will simply take time to gear up the system.

      - David Stein

      *

      --
      Computer over. Virus = very yes.
    2. Re:What, again? by Alsee · · Score: 2, Interesting

      the premise that software should constitute patentable subject matter is generally well-settled among the legal community

      Nonsense. For starters that is false outside the US. Secondly, the only thing that is "well-settled" is that the US has recently REVERSED it's position and has been issuing and upholding such patents.

      In particular the EU Parliment is well-settled that software is not patentable subject matter, and that the European Patent Convention explicitly declares that software is not patentable subject matter. This would imply that any software patents granted thus far in Europe have been improperly issued and are worthless.

      Yes, the European Council is pushing to legitimize existing and future software software patents, but as I understand it the Parliment gets the final vote. (Anyone more knowledgable in EU politics is welcome to correct me or elaborate on the process.) Very few software patent cases have been brought to court, but from what I hear they have generally been tossed out as invalid, particularly in Germany.

      I present the textbook example of an elegant, useful software invention worthy of patent protection: RSA - the public-key system that permits relatively effortless secured communication via one-way encryption.

      Yes. A perfect textbook example of a patent on pure math. Utterly absurd. What next? A patent on doing a basic integral? Oh wait, that was the initial Software patent upheld by the US Supreme Court in Diamond v. Diehr. It was a patent on preforming a basic integral of heat over time. An absolutely trivial math equation if you are the least bit familiar with calculus, integrating heat over time.

      Prior to that ruling it was well-settled that the US Patent Office rejected all efforts to patent computer programs on the grounds that programs are mathematical techniques and not patentable. The patent office's own commision said "A series of instructions which control or condition the operation of a data processing machine, generally referred to as a program, shall not be considered patentable regardless of whether the program is claimed as (a) an article, (b) a process described in terms of the operations penformed by a machine pursuant to a program, or (c) one or more machine configurations established by a program."

      The US assistant Attorney General said "The practical results of extending patent monopolies into this area would be to inhibit interchange of information and techniques, to restrain innovation, efficiency and competitive vigor in the growing computer industry, and to raise barriers to new entry. These anti-competitive consequences would result without giving the public, as consideration for the patent grant, any `inventive' contribution to the progress of the arts and sciences."

      The initial Diamond v. Diehr ruling REVERSED settled US policy against software patents. The Patent Office threw the doors wide open to software patents based on that ruling. The US Supreme Court simply goofed in that case. They thought they were upholding a patent on a physical manufacturing process. There was absolutely nothing new or inventive in the physical manufacturing process, the supposed "invention" was purely in math.

      Further note that the RSA patent - and ANY software patent for that matter - can be implemented through PURE THOUGHT. It is possible to preform the RSA exponention just by thinking the calculations in your head. Using a computer merely makes it easier, faster, and more reliable to preform those basic math calculations. There is absolutely nothing new, "inventive", or non-obvious in using an ordinary computer to preform basic math calculations faster and more reliably.

      It is just absurd to suggest that a person stitting motionless and just *thinking* could violate the RSA patent (or any other software patent). And it is also absurd to suggest that the obvious step of using an abacus, a slide-rule, a calcula

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    3. Re:What, again? by tambo · · Score: 2, Insightful
      How about factor #5: patent attorneys who help file bad patents to collect their fee, rather than talking their clients out of a bad idea (and thus making less money).

      Yes, I wonder about the ethical implications of patent attorneys filing bogus patents like this, as it strongly appears to violate their ethical obligations (both to the client, and to the USPTO.)

      It's my understanding that, at least historically, this was a requirement of the USPTO. You could not patent a naked, abstract, algorithm or method.

      True, but that requirement was pointedly confronted and dismissed by State Street Bank (the case leading to the 1998 ruling that the USPTO must issue software patents.) Previously, in order to stem a flood of software patent apps that couldn't be handled effecively, the USPTO and federal courts conjured up imaginary reasons for denying them. For instance, the patent had to have a "real-world impact" or rely on "real-world inputs."

      All of these requirements - including the embodiment requirement - are anachronisms. They should not appear in any software patent application filed in the past five years.

      - David Stein

      --
      Computer over. Virus = very yes.
  2. Ken Brown replies by shoppa · · Score: 3, Funny
    See, I told you there was no way that a single guy, in just six months, could write an original operating system (backspace xxxxxxxxx)letter to the US patent office. He clearly pirated his letter from Microsoft's letter! See, Microsft came first! And Linux used the same alphabet as Microsft did! And Microsoft has thousands of lawyers, so how could a single guy do the same thing! In, mind you, just six months!
  3. This is good but... by LibrePensador · · Score: 5, Insightful

    If this kind of web-neighbor due diligence was carried out more often, we would not see all these spurious software patents being issued.

    Why don't we create an industry funded board whose job is to make sure that silly software patents are no longer awarded? Oh wait... The industry only dislikes SOME software patents, while anyone who cares to look will see that all software patents threaten innovation and are largely anti-competitive because they rig the game in favor of big corporations.

    Unfortunately, software patents have become the last hurdle that the proprietary world can throw at the free software movement.

    Moglen and Lessig are both very persuasive (If you got a bit of free time, read "Free Culture" by the latter) I hope that upon hearing their arguments European Commission will be wise enough to reconsider its position on software patents.

    --
    Pragmatism as an ideology is not particularly pragmatic in the long term. Keep it in mind when you dismiss Free Software
    1. Re:This is good but... by torpor · · Score: 4, Informative

      Why don't we create an industry funded board whose job is to make sure that silly software patents are no longer awarded

      I asked the same question a few days ago on another /. story about patents, and was referred to PubPat...

      If only people knew more about these things, and cared about them. As a developer, I despise the fact that the obvious things that I may design/develop to assist my fellow man in using my software have become 'owned' by someone else in order that they may profit.

      Patents suck. Period.

      --
      ; -- the corruption of government starts with its secrets. a truly free people keep no secrets. --
    2. Re:This is good but... by Groote+Ka · · Score: 4, Insightful
      The industry only dislikes SOME software patents, while anyone who cares to look will see that all software patents threaten innovation and are largely anti-competitive because they rig the game in favor of big corporations.

      I do not entirely agree with you. Minor companies can play that game as well and perhaps even better. When a minor company has a patent on a groundbreaking (or little less) invention, it can be a major pain in the *rse of a big company(with a proper sponsoring for the small one, ok), especially when that small company has no product portfolio to which the big company can assert its patents.

      Just think about Intertrust vs. Microsoft (settled out of court).

      With respect to the part of your story with which I might (yeah, I'm a legal techie) agree: When major companies block the small ones from sales + development of certain software and bind them with strangling contracts (give us all your IP or we will break your back with our IP), yes, patents are not very good things and will surely suffocate innovation.

      But at long as licenses are available under reasonable and non-discriminatory (RAND) terms, I do not see any problems.

    3. Re:This is good but... by kcbrown · · Score: 4, Interesting
      Moglen and Lessig are both very persuasive (If you got a bit of free time, read "Free Culture" by the latter) I hope that upon hearing their arguments European Commission will be wise enough to reconsider its position on software patents.

      No amount of eloquence or quality of argument is as persuasive as a sufficiently large wad of cash (even if said wad of cash is used indirectly). This is why the EU Commission will, in the end, not listen to Moglen and Lessig, and will instead listen to Microsoft and the other multinational corporations.

      --
      Use 'slashdot stuff' in the subject line in any email you send me if you want to get past the spam filter.
    4. Re:This is good but... by Halo1 · · Score: 4, Insightful
      I do not entirely agree with you. Minor companies can play that game as well and perhaps even better. When a minor company has a patent on a groundbreaking (or little less) invention, it can be a major pain in the *rse of a big company(with a proper sponsoring for the small one, ok), especially when that small company has no product portfolio to which the big company can assert its patents.
      Not just especially, but only if the small company has no product portfolio. In other words, if the small company is a patent parasite, which contributes virtually nothing useful to society (name one software company that turns to the patent database to find new ideas for stuff to put in its applications)...

      All it does is sue the companies which do contribute something useful to the economy (a product that can be sold and which people can use). Yes, it's a great way to make money, and in the end it's those big companies who always argued for unlimited patentability who are now on the wrong end of the stick, because some smart people simply optimized their business model to maximise their profit in the system created by the patent junkies.

      So now the big companies start whining and complaining, accusing those parasites of being "patent trolls" and play the innocent third party harmed by the bad practice of the USPTO... While it's the fault of their own patent trolls (IP lawyers who wanted more influence in the company) it came to this in the first place.

      --
      Donate free food here
    5. Re:This is good but... by LibrePensador · · Score: 3, Insightful

      "When a minor company has a patent on a groundbreaking (or little less) invention, it can be a major pain in the *rse of a big company(with a proper sponsoring for the small one, ok), especially when that small company has no product portfolio to which the big company can assert its patents."

      The problem is that this is fairly rare. If you are a small company doing some kind of interesting software development, your product is bound to in some obscure way violate one of the thousand patents that the big guys have.

      Besides two wrongs really don't make a write and I am more concerned with the well-being of free software developers, salaried or not, who independently do not probably have the resources to fight a patent-infringement case.

      As a writer, I care about copyright infringement. And the mathematicians who understand software fail to understand how anyone can really claim to have "invented" something in software. Written it yet, invented it no.

      --
      Pragmatism as an ideology is not particularly pragmatic in the long term. Keep it in mind when you dismiss Free Software
    6. Re:This is good but... by Halo1 · · Score: 2, Insightful
      You are wrong in thinking that all large corporations are in favour of software patents, or that there is even an economical majority (in Europe) in favour of software patents. In Germany, 80% of the people employed in IT work for SME's, in Belgium 60%. As for large corporations against software patents, have a look at this letter written by the ObjectWeb Consortium, representing these companies. Some names you might recognise are Dassault Aviation, France Telecom R&D and the Thales Group.

      Further, the current Commission stance on software patents is mostly dominated by Bolkestein, an extremely conservative "liberal" who longs for a European Microsoft (and failing that, just Microsoft: a few all-encompassing companies as "backbone" for the economy). Bolkestein is now leaving the Commission. Of course, his people will most likely remain, but it will still be interesting to see whether this will bring any change. And failing that, there's still the Parliament and more and more to some extent even the Council that could help us.

      --
      Donate free food here
  4. half-backed, recycled and slopped up to the USPO by falsemover · · Score: 5, Interesting

    let's face it; software patenting is a rich boys club; or another manifestation of the motto "the one with the most money wins". There are thousands of patents like this; scads of unoriginal montages of half-baked and recycled ideas, cleverly disguised and slopped up to the USPO, and approved, cha ching.
    It takes this kind of outrage and political pressure to get one patent reviewed. What chance does the small software company have protecting itself against patents with a lineage of prior art? It's also a positive feedback system; patents breed patents, just look at the crazy exponential explosion of USPO patents over the last five years. And sitting in the middle of the web is the black widow, the USPO, raking in the fees while spending precious little fix the spiraling problem. Once practical answer: maybe register your software company in the Cayman Islands or Vanuatu, or some other such place and take your international profits offshore. Better defensive legal system; and better protection against the system fueled by common-revenue-oriented legislation and wayward lawyers.

    --
    consider coffee a lubricant that helps one penetrate the coding zone
  5. Prior art. by ScouseMouse · · Score: 5, Interesting

    I vaiguely remember that the Amiga OS 3 had an application called Multiview which allowed extensible embedded viewing of almost everything with the correct plugins (Called datatypes if I remember correctly). I dunno if this is the same thing though, but i think it predates the Web completely (Although only by a year or two). Hmm, have to dig out my old Amiga and check.

  6. Opposition? by Groote+Ka · · Score: 4, Interesting
    One of the most important conclusions I draw from this issue that it is time for a proper inter partes opposition procedure as available in - among others - Europe and Japan.

    After grant of a patent, any person (in Europe, this does not include the patent proprietor) can challenge the granted patent with all prior art available. And this person is party to the proceedings; the European Patent Office coordinates the procedure and judges it.
    Remark to be made here is that in first instance, the EPO is not very willing to revoke a patent (the examiner of the grant procedure is in the opposition division as well), but appeal may be a good remedy.

    I heard that the US patent law may be amended to allow inter partes proceedings for invalidation/re-examination. Any news on that?

    1. Re:Opposition? by SquarePants · · Score: 2, Interesting

      Off the top of my head, a couple of reasons:

      First, cost. Just looking at filing fees, the fee for an ex-parte reexam is $2,520 while that for an inter-parte reexam is $8,800. And that is just the filing fees. An inter-parte reexam is very much like a mini-trial so you can expect the attorneys fees' involved to be probably 10 to 20 times what they would be in an ex-parte. I cannot see any lawyer worth his salt doing an inter-partes for under $30,000. An Ex-parte can be done for under $10,000.

      Second, startegic considerations. If you file an inter-partes exam you must agree to forego any federal court action in connection with the relevant patent and cited prior art. With an ex parte, that is not the case, if you loose you can still file a federal lawsuit seeking to invalidate the patent. So, in essence, you can get a second bite at the apple with an ex parte.

  7. Panties Behind Eolas Patent Reexam Revealed??? by drfishy · · Score: 2, Funny

    I can't be the only one that read it that way...

  8. So, Big Business will make it all better? by EasyTarget · · Score: 5, Insightful

    Humm, The BBC had a article related to this too, Here, and it scared me since the companies that are lobbying for changes to the Patent regieme are all the existing 'effective monopolies', MS, Cisco, Ebay, etc..

    I don't think a patent system re-written by Big-Business is going to be good for anyone other than Big-Business.

    The more I think about this, the more I fail to see any answer, only problems. How can a patent system protect the genuinely innovative little guys, whilst preventing the abuses the Big Business will practice in order to protect their market share?

    --
    "Oops, I always forget the purpose of competition is to divide people into winners and losers." - Hobbes
    1. Re:So, Big Business will make it all better? by kfg · · Score: 2, Interesting

      How can a patent system protect the genuinely innovative little guys, whilst preventing the abuses the Big Business will practice in order to protect their market share?

      If we are discussing software patents, don't give the big guys patents in the first place--or the little guys.

      Extending patent protection to ideas was a braindead idea.

      KFG

  9. Re:half-backed, recycled and slopped up to the USP by SquarePants · · Score: 4, Informative

    It doesn't take "outrage and political pressure" to get a patent reviewed. If you know of invalidating prior art it is fairly simple to request a re-examination. It is also fairly inexpensive if you choose to request reexamination inter partes since it involves only filing a single paper.

    But you do have to do some research. Something which most people here are unwilling to do for any purpose other than to rant about the USPTO's inadequacies.

  10. Madness absolute Madness by blackest_k · · Score: 4, Interesting

    Someone once said something along the lines that it was only because they had stood on the shoulders of giants that they had achieved so much.

    Perhaps the only fair solution is to limit patients to a maximum life of 2 years, and why not do the same for copyright too?

    Ok I see the point if you invent create something unique that people are prepared to pay for then you should be entitled to some reward and a patient/ copyright gives you exclusive rights for a time and the opportunity to make some money by granting you a monopoly on this but for how long should independent development be halted?

    very rarely if at all does something come without development using somebody elses work and idea's.

    This Post is unique and the words I choose and the order I place them is mine alone. However they start with the basis of an article on slashdot, using technology that was developed by somebody else. If I had to pay for everything i did that used somebody elses work in someway or had to check to see who's copyrights i might be infringing I wouldn't be able to do anything and niether could you!

    If we want the computer industry to stagnate then lets continue the madness and copyright and patent everything and why stop there.

    Short limited life patents and copyrights seem to be the only sensible solution.

    1. Re:Madness absolute Madness by amw · · Score: 2, Funny
      the only fair solution is to limit patients to a maximum life of 2 years
      I hope I never end up in your hospital ...
  11. Comment removed by account_deleted · · Score: 2, Insightful

    Comment removed based on user account deletion

  12. Re:half-baked, recycled and slopped up to the USPO by falsemover · · Score: 2, Informative
    It is fairly easy (but not cheap) to request examination of a patent that has been granted on the grounds of prior art or obviousness. I refer you to Ashley Parker's lucid document

    http://www.jolt.unc.edu/vol3/Parker-V3I2.pdf

    to ponder the considerable problems in the reexamination system, including the $10,000 fee for proposing it plus considerable legal fees, maybe $10k - $100k +fees for filing it and researching it properly. If you are being asked for $5,000 in licensing fees for violating some frivolous patent it' a tough call. In 2003 the Commissioner ordered only 17 reexaminations of stupid patents. 17. This was somewhat better than 2001 when they only ordered 2. Wake up Commissioner!

    Slugging it out in court is not an option for most small software companies as the average patent litigation fee through trial is cited to be 1.2 million.

    Happy programming everyone. Maybe, just don't code anything more complicated than a REM statement as it will probably violate a whole bunch of patents.

    --
    consider coffee a lubricant that helps one penetrate the coding zone
  13. Amiga datatypes vs, patents by The+Conductor · · Score: 2, Informative

    It wasn't just web browsers either. Datatypes supported both read/display, & write/save operations. Commercial paint programs for the Amiga were able to make an end-run around the Unisys GIF patent by leaving out GIF support in the main program, but having datatype support. To save as GIF you downloaded an open-source GIF datatype (Unisys didn't attempt to enforce against open source implementations), dropped the class description and the library code in the required directories, and the paint program handled GIF equivalently to the native formats.

    Pretty slick, eh?

  14. Bio Tech Patents Have Plenty Of Problems by rben · · Score: 4, Insightful
    There is a silver lining to this story. If you go back 30-40 years, you will see a host of complaints about these new-fangled patents on biotechnology - many claims that allowing inventors to patent novel organisms, gene sequences, proteins, and research techniques posed a horrific threat to biotech research and product development. These claims assumed the same basis as many of today's complaints against software patents: examiners were hopelessly lacking in technical skill in these areas; the subject matter qualitatively differed from conventionally patentable fields of art; a 17-year monopoly (pre-1995) represented a calamity to rapidly-evolving technology and typically-cooperative research. History has shown that those fears were hugely outweighed by the overall benefits of biotech patents - as evidenced by a thousand, wonderfully effective therapies and drugs (many of which, like prozak, are now expired, transferring the technology to the public domain.) Biotechnology and medicine are experiencing a huge upsurge in the pace of technical development - thanks in large measure to the willingness of corporations to invest in (potentially patentable) biotech R&D.

    There are extensive problems with allowing companies and individuals to patent biotechnology and there is little evidence to suggest that all the patents were necessary.

    The genetic information within natural organisms should be part of the common property shared among everyone. Allowing some individual to claim ownership of the genetic code of a natural organism is obviously absurd.

    Corporations have been rapidly patenting genetic information from crops that have been developed over thousands of years by indigenous populations in third-world countries. The thousands of years of cultivation apparently entitles those people to nothing, while using an automated machine to decode the genetic code entitles the corporation to ownership of the genetic code of the plant? How is this reasonable or equitable? These patents are robbing people in third world countries.

    The explosion of development in bio-technology has more to do with the available technology and automation than allowing patents on natural organisms. There is plenty of profit to be made in developing medicines from natural genetic codes without granting ownership of those codes to corporations. Rightfully, the ownership of the genetic information should be held in common trust. There is nothing to stop businesses from patenting and profiting from treatments and therapies developed from that knowledge.

    It seems that the current trend in the U.S. is to rush to grant ownership of everything, including knowledge, to some single individual or corporation. This headlong rush is being done largely without regard to the consequences of eliminating the public commons and the benefits which it provides. All knowledge and progress builds on what came before. If there is a price tag on every bit of knowledge, it won't be long before progress in the sciences slows dramatically.

    There is nothing wrong with the idea of patents for novel inventions. I think it is an appropriate way to reward and spur invention. We need to make sure, though, that it's invention that we are rewarding and not political lobbying skills.

    --

    -All that is gold does not glitter - Tolkien
    www.ra