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Patent Infringement Exemption for Research?

cheesedog writes "It has been said that 1/5th of all scientific research projects in the U.S. are currently being stifled by patent claims. Well, it looks like the Senate has taken notice, with a recent proposal that has made it into the PACE Education and Research Act that could extend an exemption from patent litigation for scientific research. The Act also proposes treating specialized industries (such as software and business methods) differently than traditional patent areas."

27 of 97 comments (clear)

  1. Text by _Sharp'r_ · · Score: 4, Informative

    text of the bill.

    It has over 40 co-sponsors (From Allen to Obama) and doesn't look like it's going to become a partisan battle, so maybe it'll actually pass.

    --
    The party of stupid and the party of evil get together and do something both stupid and evil, then call it bipartisan.
    1. Re:Text by Peyna · · Score: 4, Informative

      Note from the text that this law doesn't actually change anything. It's just the Senate coming out saying "We think these reforms should be done," but doesn't compel them to actually do them.

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      What?
  2. Re:and...? by ZachPruckowski · · Score: 3, Informative

    No, Universities often do research to get grants. They don't do research to directly make products, they aim to do basic research. They use successful research programs to win grants to do more research. Otherwise you'd see UNC or Berkley or Harvard branded products.

  3. How does this help? by ZachPruckowski · · Score: 4, Interesting

    As I see it, this will allow people to do research on things that would have been blocked by patents otherwise. But doesn't that make products related to that research completely poisoned? I mean, it'd be fine for anyone doing the research for the sake of the research, but you'd have major IP issues if you tried to market something derived from the research, right?

    1. Re:How does this help? by Spy+der+Mann · · Score: 3, Insightful

      I mean, it'd be fine for anyone doing the research for the sake of the research, but you'd have major IP issues if you tried to market something derived from the research, right?

      Well, if the product's worth it, there could be some licensing. But at least we'd have a working product, not an "idea to be researched".

      I know, this doesn't solve the patent problem per-se, but it's better than nothing :-/

    2. Re:How does this help? by samkass · · Score: 2, Interesting

      On the one hand, it means the only people allowed to use the research for commercial purposes are the owners of the original patent, so universities effectively become research arms of the patent owners. On the other hand, the researched extensions to the patent are themselves unpatentable, and potentially gets the technology into the public domain sooner and cleaner. (Remember patents don't go on "forever", like copyrights effectively do under Disney's America.) Otherwise, most patents get subsequent filings to add minor features in order to extend their lifetimes.

      So I see this as a step in the right direction. There's no question in my mind that patents are a necessary and good thing for any innovation-based society, but obviously there are some area of it that need refinement.

      --
      E pluribus unum
    3. Re:How does this help? by ZombieRoboNinja · · Score: 2, Informative

      Okay, this is secondhand info from my dad (who is a research scientist working in a private firm, so has a good idea what's goin on in the area).

      Let's say a company is researching, say, a cure for smallpox. They're going at it in a bunch of different ways, and they want to try a specific treatment that requires "Chemical X."

      Now, the most EFFICIENT way to produce Chemical X is patented by another company. That means that in order for this company to do its research, it has to use some roundabout method of producing Chemical X to avoid a lawsuit. All this for an approach that might be a dead end - the Chemical X treatment may not work at all.

      This means that currently, the lawyers are involved in every step of the process. Whenever my dad or people in his lab want to try something, they have to have it reviewed by the company lawyers to make sure they're not setting themselves up for a lawsuit. Undoubtedly an expensive and time-consuming factor in research.

      If this law passes, it seems that they could whip up some Chemical X using the efficient, patented process, and then if it DOES work, they can let the lawyers deal with manufacturing and licensing down the line. Essentially, the lawyers are removed from the research process. Sounds like a big improvement, if not the patent-free world some people would prefer.

      IANAL and I'm fuzzy on the details, so someone please correct me if I'm full of it here.

  4. Finally by i_should_be_working · · Score: 4, Insightful

    Finally, they are starting to recognize that patents can actually deter progress.

    There's a geologist in my department who developed a technique for measuring earth density. This could be good for looking for oil or other valuables underground. He published his work, like all scientists. So some mining/prospecting company read up on it, patented a related method and then tried to stop him from doing any more research on it, lest he give away 'their' secrets to their competitors.

    Insane.

    1. Re:Finally by DRJlaw · · Score: 2, Insightful

      There's a geologist in my department who developed a technique for measuring earth density. This could be good for looking for oil or other valuables underground. He published his work, like all scientists. So some mining/prospecting company read up on it, patented a related method and then tried to stop him from doing any more research on it, lest he give away 'their' secrets to their competitors.

      Assuming that the facts are exactly as you've claimed then to be, then:

      1. Your geologist should order a copy of the file history for the patent from the USPTO.

      2. Your geologist should look to see whether his publication was cited by the mining/prospecting company during the prosecution of the patent.

      2a. If your geologist can prove that the patent was derived from his work and that the applicant did not disclose his work to the patent office, then he has at least a couple of defenses should the company ever accuse him of patent infringement. This way lies potential litigation, however the potential damages are limited to a reasonable royalty on the geologist's activities (possibly enhanced for willful infringement), which considering that he's an academic is unlikely to amount to something worth litigation. He would have to discuss this with a patent attorney once he's gathered the necessary information. I'm telling you how he can find out what to do, not what to do.

      3. If your geologist discovers that his work was not cited in the patent application, then he can file a request for ex parte reexamination (35 U.S.C. 302) for $2520 and the cost of writing a persuasive letter. In this case, discussing the letter with a patent attorney would be wise but not strictly necessary. Yes, the fees can be galling, but I've paid comparable fees just to obtain licensing, and have annual fees that approach $1000 just to practice, so it's not as if he's being uniquely abused. Unfortunately, clearing legal obstacles is sometimes a cost of doing business.

    2. Re:Finally by i_should_be_working · · Score: 2, Interesting

      Yeah, he's gone to court to do some/all of that stuff. It's settled now, he's continuing his research. But he shouldn't have had to worry about it in the first place. What a PITA waste of time.

      Hopefully this patent reform would end such bullshit.

  5. Big plus for by Marxist+Hacker+42 · · Score: 2, Interesting

    "May change the world if it works" inventions of the type that will make money even if you can squeeze out only a penny above patent licensing- because it allows you to find out if something works *before* you pay for patent licensing.

    I've got just such a device in mind for repurposing high level nuclear waste- but the threat of patent litigation means somebody else will probably beat me to it; there's at least six patents on only tangentially related technology involved, the whole thing is made up of what are basically expensive off the shelf parts (well, except for the fuel, which is an expensive, highly controled, on the shelf part, but I'm sure I could convince the IAEA and the DEA to let me have a tankfull of Hanford's finest if I donate the new above ground, computer monitored tank to pump it into before it leaks into the Columbia).

    --
    SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
  6. Re:and...? by AKAImBatman · · Score: 2, Informative
    I had something of a "what the hell?" reaction when I first read the headline, so I went and looked the original story. The problem isn't that patents are directly interfering with research (which they're not supposed to do), but that they are indirectly interfering. From the study:

    The most common reason respondents reported having to change or abandon their research project was that the acquisition of the necessary technologies involved overly complex licensing negotiations.


    So the problem is less of one in creating, say, a Viagra tablet for drug research, but rather purchasing bottles of Viagra to do research on other health effects.
  7. Research? Improvements? by SchrodingersRoot · · Score: 4, Interesting

    Well, I'm not sure what would qualify one as a "researcher."
    Since research often has some sort of financial aspect, this leads me to wonder where the breakpoint would be, and how effective it would be.

    I mean, I can see how patent infringement shielding would be useful in teaching (if not already present), but research is often done with end-result: profit in mind. And if certain (synergistic, for example) technologies were developed using research that was protected by the shielding, where would that patent fall? Improvements on a patented idea?

    I guess I don't know enough about what sort of research is affected by patent infringement litigation.

    I mean, the patent system is a mess. We all know that. And I somehow feel that this is a Good Thing(TM). I hope there'll be improvements. But I still wonder...

  8. This makes sense...It'll never pass... by RecycledElectrons · · Score: 2, Funny

    This makes sense...It'll never pass...

    Andy Out!

  9. Re:Huh? by mopslik · · Score: 2, Insightful

    What are these guys talking about? If you want something that's patented, you go and buy it at the store. How does that interfere with research? I don't get it. What am I missing?

    Consider the fact that certain individual genes are patented. Now consider that, to do research involving these genes, you need to purchase a "license" first. These licenses can be extremely expensive.

    I think that this is what the legistaltion is aiming at, rather than, say, you average electronic widget.

  10. Re:and...? by AKAImBatman · · Score: 3, Insightful

    And what's to stop the drug maker from tying up the research in court because they feel that it is a "defamation of their IP"? It doesn't matter if it the drug maker eventually loses, they can manage to delay the research for YEARS, potentially making it pointless. Thus the researchers have to negotiate a contract that says, "I won't divulge my data until the drug maker has a chance to review it."

  11. Re:Huh? by HappyHead · · Score: 3, Informative

    Why? What's the penalty for just doing the research? Is it that you can't ultimately profit from the result?

    No, the penalty is being sued for lost royalties by the patent holders, because you used their property without their permission, and then having your research confiscated as it contains and is based on their property. So you're out all that money, <i>and</i> you no longer have access to your own work.

  12. However by Billosaur · · Score: 2, Interesting

    Ok, so I'm a researcher, and you've given me the freedom from patent restrictions to allow me to go ahead with my research and Company XYZ can't stop me because it's for "research" and not personal gain. Don't I eventually end up becoming a de facto researcher for Company XYZ? They still hold the patents and could make use of my research to improve their products, couldn't they? And where's the economic incentive for me to do this research?

    --
    GetOuttaMySpace - The Anti-Social Network
  13. Re:Huh? by SirWhoopass · · Score: 2, Insightful
    What are these guys talking about? If you want something that's patented, you go and buy it at the store. How does that interfere with research? I don't get it. What am I missing?
    A software patent covers methods and implementation, not some physical product. Basically, it is a patent on doing certain calculations. No one else can, legally, do those same calculations. So, what do you do if you want to improve on that? What if you think you can make a better compression format, but need to use a patented algorithm?

    It could apply in to non-software patents as well. Just because something is patented doesn't mean that it is being sold anywhere.

  14. Re:Huh? by cheesedog · · Score: 3, Informative
    What's the penalty for just doing the research?
    The 'penalty' is that it is illegal to do the research without the permission of the patent holder. Here's how it works:

    A scientist independently arrives at an idea that may be covered by an overly-broad or obvious patent claim. The scientist innocently begins conducting research in the area (because there is no way he is keeping track of the 100s of thousands of patents filed each year), eventually letting the world know what he is working on. Big Corp[s] (or Patent Troll[s]) that hold a patent gets wind of his work, and sends him a threatening 'cease-and-desist' letter.

    If the researcher continues past this point, and a court later finds that his work did violate the patent, he is guilty of willful infringement, resulting in court-ordered payment to the patent holder. If willful, those payments may be treble what they would have been had the researcher licensed the technology upfront. And the patent holder can still force the researcher to stop his research immediately.

    Patents grant are a legal right to exclude others from excercising the claims of the patent. That's it. Under current law, there is no exclusion for people excercising the claims in the name of science, solely for their own personal use, etc. The exclusion is 100%. It is an artificial monopoly.

  15. Not a good thing by Peyna · · Score: 4, Insightful

    First of all, the section dealing with patent reform actually doesn't change anything. It would just say that the Senate thinks Congress should enact legislation to make such changes.

    However, I bring your attention to Sec. 321 (3) (A):

    "Congress should implement comprehensive patent reforms that--
    (A) establishes a first-inventor-to-file system"

    While this would make the patent office's job easier (prior art is restricted to everything filed with them), it means that prior art that is not filed is no longer a defense.

    First to file is not good. The research exception would be insignificant next to this change.

    --
    What?
  16. PACE Act = BAD! by diakka · · Score: 2, Interesting

    As Winston Wolfe of Pulp Fiction fame eloquently put it.. "Let's not start sucking each others' dicks just yet."

    While this does sound like a good proposal, it is only one part of the PACE Act. There is one measure in this act that I found very disturbing and that is the establishment of a "First inventor to file system." Basically, that sounds like it would kill off any prior art claims that had not been a part of a previously filed patent. I wouldn't be surprised if it didn't increase the number of BS patents filed because companies would be scrambling to file for things just to get it on record. Very Scary.

    --
    -- Knowledge shared is power lost. -- Aleister Crowley
  17. Re:and...? by Phisbut · · Score: 3, Funny
    The most common reason respondents reported having to change or abandon their research project was that the acquisition of the necessary technologies involved overly complex licensing negotiations.

    <sarcasm>
    But... but... but...
    I thought patents were supposed to *encourage* research and innovation, not *interfere* with it... Now I'm all confused...
    </sarcasm>

    --
    After 3 days without programming, life becomes meaningless
    - The Tao of Programming
  18. Re:and...? by AKAImBatman · · Score: 2, Insightful

    I thought patents were supposed to *encourage* research and innovation, not *interfere* with it...

    They are. The problem comes in when modern business execs abuse the power they're given all to ensure the best results for the next quarter. What we need is a lot more barratry suits. Once a few lawyers start losing their licenses, they'll think twice about taking nonsensical crap to court.

  19. Living in the past. by Parity · · Score: 2, Informative

    Universities now file their own patents, while the inventing professor(s) take an extended leave of absence to found a for-profit company that licenses the research from the university, to the better bank balances of professors and universities alike. This is why there's a grumbling about the change in direction of academic research and the decreasing amount of basic research that is being done. Grants are fewer, patent licenses are greater, research goals are shifting.

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    --Parity
    'Card carrying' member of the EFF.
  20. Re:and...? by FuzzyDaddy · · Score: 2, Informative
    Universities do not decide what research gets done. Professors apply for grants to outside agencies (NASA, NSF, NIH, etc.,etc.) which are peer reviewed. The awarded money goes to the professor. Universities get a cut of the money ("overhead"), but don't decide what research gets done.

    Now, if something gets done which is patentable and potentially licensable, they will certainly pursue it - but the university administration doesn't make the research decisions.

    --
    It's not wasting time, I'm educating myself.
  21. Be very careful here by deblau · · Score: 4, Interesting
    Disclaimer: IANAL, this is all my own analysis.

    The issue is not as straightforward as you might think. First, one common bar to receiving a patent is prior art, which is generally covered in 35 U.S.C. 102. The big hammer for prior art made by someone else is 102(b), which says that you can't get a patent if your invention was "in public use" or "on sale" in the US more than a year prior to the filing date of your application. The "on sale" part is fairly easy to understand, but has a few quirks that I won't go into now. The "public use bar", as it's called, is what we're talking about here.

    There is a famous Supreme Court case that says experimental use of an invention, even in the public, isn't a "public use". Such use is not a public use, within the meaning of the statute, so long as the inventor is engaged, in good faith, in testing its operation. City of Elizabeth v. American Nicholson Pavement Co., 97 U.S. 126, 134-35 (1877). This is the "experimental use defense" to the public use bar. You may think to yourself, that's all well and good, researchers are performing experiments, that must be experimental use, right?

    Not so fast. Read the Federal Circuit's take on experimental use, Madey v. Duke University, 307 F.3d 1351 (Fed. Cir. 2002). The court ruled that use does not qualify for the experimental use defense when it is undertaken in the "guise of scientific inquiry" but has "definite, cognizable, and not insubstantial commercial purposes." 307 F.3d at 1362. Here's their reasoning:

    For example, major research universities, such as Duke, often sanction and fund research projects with arguably no commercial application whatsoever. However, these projects unmistakably further the institution's legitimate business objectives, including educating and enlightening students and faculty participating in these projects. These projects also serve, for example, to increase the status of the institution and lure lucrative research grants, students and faculty. Id.
    Regardless of whether a particular institution or entity is engaged in an endeavor for commercial gain, so long as the act is in furtherance of the alleged infringer's legitimate business and is not solely for amusement, to satisfy idle curiosity, or for strictly philosophical inquiry, the act does not qualify for the very narrow and strictly limited experimental use defense. Moreover, the profit or non-profit status of the user is not determinative. Id.

    To sum up: even though a university may be conducting research with no perceived commercial benefit, there are indirect benefits. If the exception for research were broadened, schools would receive a windfall. So would anyone else claiming "I'm not quite done with my invention yet, but isn't it pretty." (Think "Google whatever -- still in beta!") There's an argument to be made that this is OK, but that's a matter of opinion and public policy.

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    This post expresses my opinion, not that of my employer. And yes, IAAL.