U.S. Supreme Court Hears eBay Case Wednesday
siddesu wrote to mention an article on CNN Money about the upcoming U.S. Supreme Court patent suit involving eBay. We've previously mentioned the case. The SCOTUS will hear opening arguments on Wednesday, March 29th. From the article: "Lawyers for eBay and small e-commerce company MercExchange will square off over whether eBay should be barred from using its popular 'Buy it Now' feature, which infringes on two MercExchange patents. The case is being closely watched to see if the high court will scale back the right of patent holders to get an injunction barring infringers from using their technologies. Software companies complain they can be held for ransom by owners of questionable patents while drugmakers oppose any weakening of patent rights, which they say would chill their investment in new medicines."
Lobbying efforts center on legislation being drafted by Rep. Lamar Smith, a Republican from Texas who chairs a key House subcommittee.
Ironically, Lamar Smith is available on ebay with "Buy It Now" options. I'm surprised Abramoff hasn't bought out the whole lot.--
"Man Bites Dog
Then Bites Self"
Capitalism: When it uses the carrot, it's called democracy. When it uses the stick, it's called fascism.
Here is a patent that doesn't require an EE degree to see that it is
ridiculous. I hope these cases keep coming and coming so political
pressure mounts to reform a backwards intellectual property system.
It should not be forgotten when convenient that the Supreme Court's role is limited to combing through the constitutionality of a past ruling. Roe v Wade being the "Law of the Land" is a misnomer. In this case, it seems that one part of the government established by the legislature made a ridiculous choice that doesn't pass the laugh test, but that's the legislature's job to fix, not the Court's.
Blackberry, Microsoft, Ebay, Tivo, Google... so when does it stop encouraging innovation, and start stifling it? Is anybody in the US government, or the patent office actually paying attention to these suits, or do they see this as everything working fine? I now that in the past, patents were not considered quite so important, just need to look at the big patent sharing agreements between the large computer companies like IBM, AMD, Intel. Maybe the view has shifted, and it has become acceptable to shut a business down over patents? (or at least try to)
There HAS to be a way for the courts to define and address the difference between WELL DUH! lawsuits (like "patenting" an immediate purchase button, or cross-category searches) and important lawsuits that protect folks that have invested years and years of work and research (and perhaps tons of money) in creating a complex drug or product.
THERE HAS to be a way to define this and adjudicate accordingly. I'm fully aware that there are gray-area patents, but some things just shouldn't be patented.
A Passionate Independent Musician
"Software companies complain they can be held for ransom by owners of questionable patents while drugmakers oppose any weakening of patent rights, which they say would chill their investment in new medicines."
Perhaps that's because, as we have been saying for years, patents on software impede innovation whereas patents increase (or so I am imformed - I don't work in the industry) innovation in the drugs industry.
Patents on software make as much sense as patents on books or music. Get rid of them now before they give patents in general a bad name.
-- MartinG To mail me: echo kewyjlcxyzvjfxbqwh | tr bcefhjklqvwxyz
Basically the whole story is the usual tug of war that every society has to endure.
"Software companies complain they can be held for ransom by owners of questionable patents while drugmakers oppose any weakening of patent rights, which they say would chill their investment in new medicines."
Validity of the patent isn't what's being questioned, but extent of punishment.
Now, I'm the last guy that thinks drug companies are "nice guys" in the prices they charge, but in patent cases, I have to side with them.
They spend MILLIONS of dollars developing drugs. At least they have some right to patent what they created, because they actually created something. I'm not going into whether they SHOULD or not. That's what the law is right now, and it should probably be changed. I'm getting off track here.
Software companies with "patents" like these have spent little or no time "developing" anything. I mean..."One click"? "Buy It Now"? That's what you get when you have marketing people patenting things.
Geesh.
From the article:
Software companies complain they can be held for ransom by owners of questionable patents while drugmakers oppose any weakening of patent rights, which they say would chill their investment in new medicines.
I understand how drugmakers feel, but why should those rules affect the patents of software. Software is as it says "soft", drugs is "hard". A different set of patent rules should be applied in my opinion.
infringed on two e-commerce patents that MercExchange said were key to eBay's "Buy it Now" feature
How about striking down this lower court ruling
# 1998 The Court of Appeals for the Federal Circuit in State Street Bank v. Signature Financial.[46] holds that there is no prohibition in U.S. law on patents for business methods as long as they are new, useful and non-obvious.
Considering that business methods are NOT new, useful and non-obvious its time to reverse this error in one judge's career sign-off opinion.
Just as ridiculous as patenting an Apple. It's not like they grow on trees or anything..err..I mean they actually grow on trees!
He who knows best knows how little he knows. - Thomas Jefferson
Really? Obvious? Smirk... How many auctions have you been to? Was that idea *ever* relevent before internet auctions? Nope...
Most good ideas are obvious in retrospect. The invention must only be non-obvious when it was filed.
Didn't someone patent the hyperlink?
Patenting concepts that aren't even developed products is a dangerous thing.
120 characters for a sig? That's bloody useless.
The only way for the proles to fight patents and copyrights is to ignore them. This is, of course, impossible if there are only a few printing presses or factories that exist. But now there are more than a billion printing presses (everyone can publish and discuss ideas on the web); there are a probably 500 million CD burners in the world (wild guess) to pass around music and video, and we can even do better than that just by sharing data directly over the net.
The Internet is like the next evolution of the printing press. Gutenberg's machine took away the power of the learned few to disseminate information. The Internet represents the natural evolution of that capability, and more.
The next step will be the dissemination of the ability to manufacture at the molecular level in your house, and then on your desktop. If you don't believe that's going to happen, consider the fact that anyone in the world with a net connection can read this posting seconds after I submit it, and how wildly that would blow your mind if you lived at the time of the invention of the printing press.
This temporary nonsense with patents and copyrights will be just that, temporary.
it's a blue bright blue Saturday hey hey
I was under the impression that patents were only supposed to be issued to innovative and original developments in technology. "Buy It Now" is not technology. It's a sales gimmick. Gimmicks should not be patentable. The patent system in the US is seriously broken. It seems that the patent office isn't even bothering to review patents anymore. They're just handing them out like tissues.
They really need to tighten the rules over what is patentable. Sales gimmicks, business plans, mother nature, etc. should not even be considered. There should also be a rule similar to trademark law for termination of patent rights for non-enforcement to prevent crap similar to the JPEG nonsense from popping up out of nowhere.
When all else fails, run.
Surely the concept of 'buy it now' is no different to going onto any online classifieds site and purchasing something. It's just a straightforward purchase then - so what makes this necessarily any different to your conventional single item purchase on (say) Amazon? Just because the goods are on an auction site?
Me dost thing that the US patent system is patently mad...
John
... I went into a shop for a paper and some smokes, but the guy would not sell them to me cos he was scared of being sued for using "buy it now". I was a bit miffed at not getting a smoke and the news but its not all bad as the guy had a half smoked cigar and a paper from 3rd March 2003 going for one buck with only 2 days left, just hope I have some change left from my 5 bucks max bid.
Outside the context of an auction, immediate purchase is unremarkable. If the genus is unpatentable, the species ought to be.
Don't wanna risk those karma point huh? That's fine. I can say over the last few years after I have read a number of these business patents, Yes indeed they are not novel. Patents were originally meant for those things that were unique and innovative not knock-offs of things that occurred in the real world. One-click purchases, "Buy It Now", these things that lived in the real world for 100s of years do not classify as being novel. On the whole, I would rather see business patents struck down (like it had been for 100 years prior to 1998) then continue to clog up our court system. If the USPTO was better at interpreting the "novel" test I wouldn't have a problem with it but quite frankly they do and therefore I am against it.
The double-entry accounting system developed in the 1300s and put into book form in 1494 - Novel and I would say very patentable
Amazon's One-click purchase - Not Novel
MercExchange - Not Novel
NetFlix - Rentals through the mail - Not Novel
The difference is that one is entirely new way of doing business and the other is just an extrapolated real world idea grafted on this thing called the Internet.
You're right! How dare they attempt to recoup their costs?
If they were to, say, make a new cancer drug, how much would that cost to develop? Most likely hundreds of millions 5 (10, 20?) years. Now, the market for that drug is relatively small, so the cost per dose is then... high.
Interesting, no?
There was an informative Science Friday discussion last friday. Check it out here. http://sciencefriday.com/streaming.html
Everybody play the Software Patent Game http://ars.userfriendly.org/cartoons/?id=20060219& mode=classic
To err is human. To forgive is not company policy.
At least thats what I got from this article which is an interview with the guy who owns MercExchange
http://www.auctionbytes.com/cab/abn/y04/m09/i30/s0 1
For some reason I refuse to use either spell check or the spacebar properly.
Just as ridiculous as patenting an Apple.
Yea, or trademarking an Apple, unless you are Steve Jobs or Yoko Ono.
all three were done by porn shops on the internet.. remember where amazon went to learn how to sell on the internet. the porn industry, they had already been doing it for years
The phrase "more better" is acceptable English. suck it grammar Nazis
Hundreds of millions of dollars is bullshit... A good portion of that is the advertising campaign to SELL that drug... yes, drug companies are allowed to include advertising in the R&D cost of a drug.
The phrase "more better" is acceptable English. suck it grammar Nazis
...while drugmakers oppose any weakening of patent rights, which they say would chill their investment in new medicines
So, limiting Pfizer's ability to just sit on what it's already made, and profit for doing nothing further, is somehow supposed to _chill_ investment in new medicines? I would think that if you were no longer able to just sit on your patents, it would *enhance* competition and *increase* the need to innovate in order to stay profitable.
OK Ayn Randian Bushites, let me make your argument for you so you dont need to: "But no one is going to want to innovate anything unless they can get patents".
I'm not saying throw out the patent system, just fix it. Even if we cut the lifespan of drug company patents by something _dramatic_, you honestly think Pfizer is just gonna say, "OK, nevermind, we aren't gonna do this anymore." Give me a break.
Why stick up for big business?
This is no news to anyone I guess, so maybe I'll just get modded as redundant.
I think one critical issue of patent reform should involve removing any patents whose novelty is linked to the media is uses. Consider "Buy it now." In the world of plastic money and paper receipts, this patent would be laughed out of the office. In a word, it's OBVIOUS. The fact that an item on an internet based sales site to me is irrelevant because the novelty lies in the medium being used. The medium is patentable, but should the WAY media is used really be patentable? If it should, then I'd like to patent driving down the road sideways. Heaven forbid someone create some form of cell-phone oriented sales/auction service and "Buy It Now" gets patented again because the medium is "wireless."
I'd really like to just be able to change the world, but I'd be more than satisfied if I could just change the ridiculous things going on with the patent world.
...but drugs aren't anything more than software packaged to look like a pill or a liquid. Your idea might work for the people in Zion though.
I took the blue pill by mistake, damn my color-blind eyes!
The television will not be revolutionized.
MercExchange(0): Seller will n0t respekt my intellectually property so I will sue! BUYER BEWARE! FFFFFFFFF---------!!!1!111! Do n0t buy from thiz seller!!!
Roe v. Wade gives differing legal rights based on the trimester. I cannot, based on this alone, give this the status as good legal thinking. If the human gestation period was a prime number, what would have happened to the legal decision?
This is a case in point of the judiciary expanding into legislative functions. And if you agree with the outcome, you are fine with the legal thinking which is based on evenly divisible numbers. Differing rights based on mathematics isn't in the Constitution. And any Supreme Court decision which utilizes such thinking in legal decisions can't claim to be solid legal analysis.
Except for ending slavery, the Nazis, communism, & securing American independence, war has never solved anything.
Umm... The development costs are a straw man now. It used to be that way, but now the development costs are dwarfed by the marketing mania used to promote the drug. Also, there's a lot of "development" going on that's really just trials of existing medications for new uses so that the companies can renew the drug patents and keep the stranglehold on a hugely profitable drug for longer. For example, check out the annual income report for Merck (MRK). Research and development costs for 2005 were $3.85B, while "General Administrative" (including marketing costs!) was $7.16B. Now, after these costs, net operational income was $5.54B - 43% higher than the R&D costs! Total profit was in the range of $4.63B. Think that is something? They are also sitting on $9.59B in *cash* out of $15.64B in cash and investments. Most of that is spoken for in terms of accounts payable, but having enough lying around to pay for 4 years of R&D is a bit excessive, dont'cha think? Especially since profit after R&D is enough to pay for next year's investment...
The only issue before the Supreme Court is when should a patent holder be entitled to an injunction against an infringer. Courts have already determined (several times) that MercExchange's patent is valid and that eBay infringed the patent. Validity (i.e. is MercExchange's "invention" actually an invention?) will not and cannot be considered by the Supreme Court because it is not the issue being appealed.
Instead, the Court will determine if an injunction should automatically issue once infringement is found. Injunctions have been the standard remedy for patent infringement in the US since before the ratification of the Constitution, but to due patent trolling some (eBay) have suggested that injunctions should not be so easy to get, particularly in the software arts.
Do nothing to help a man, and whine about those who do - you get to demand your fair share of fish caught by others!
Insightful, my ass. A "Buy it now" auction is precisely analogous to a classified ad in the newspaper saying "1978 Chevy Citation, $200 OBO". The first guy to pony up $200 gets it, and if no one comes up with that, the best offer is taken.
Most good ideas are obvious in retrospect.
And even old ideas seem novel if you've never heard of them before.
Conclusion: the Empire squashes the Federation like a bug. Accept it.
This is an important point.
Deven
"Simple things should be simple, and complex things should be possible." - Alan Kay
Incorrect.
I have seen charitable auctions that basically did this. It was implimented differently but every item had a retail or "full" price set, which was the maximum auctionable price.
If you wanted the item that badly, you could just bid that price and end the bidding. Effectivly, buying it now.
This is not the same as ebays "buy it now", but very similar. I don't know the chronology of ebays buy it now but, I think I may have even seen this before ebay had buy it now.
Of course ebay is not a charitable auction, the charitable auction was just trying to raise money and wasn't interested in maximizing profit. Obviously the ebay auction has an interest in maximizing profit, thats why they take away the buy it now option once bidding starts.
-Steve
"I opened my eyes, and everything went dark again"
You know... this is one of those cases where, I don't really want to get into the whole capitalism/socialism debate but, really, do we want for profit companies doing this research?
I mean, say what you want abotu competition and whatnot, we do have a real economic interest overall in producing medications, but I think that the economic interests of the company actually run contrary to the medical interests of the people.
I think that it makes the most sense for the R&D funding to come from insurance companies and the government taxes. Now now, I am as much against taxes as anyone, but medicine is one of those funny things... its really to everybodies benefit that we develop it.
Its also to insurance companies benefit, since they end up distributing the risk of illness amongst the people, and thus its their coffers where the payments for the drugs come from. Producing more effective treatments is in their economic interest... more effective treatments, mean healthier people, and less treatments down the line. Thus less risk.
The drug companies have no such interest. Sure they are composed of people and people like to help people, and many people who do work at drug companies are motivated by this. However, the institution itself feels economic pressures, and more effecitve treatment and curing disease are not in their best interests!
Frankly, I think we should screw them. Change the patent system. Make it so they can't recoup their costs, and they will have to adapt, and get their funding from the source of the real interest in medicine.... from the people who have an interest in actually curing disease and bringing down overall costs.
Its not like drug research is going to stop, it may slow temporarily, but I would think of it as more a retooling of the industry than killing it. Subject it to the pressures of evolution that serve the peoples needs rather than the self serving ones. Researchers will find new funding sources, and ones that encourage research into where the problems really are.
I mean, I suffer from pretty bad heartburn at times. I don't think we really need new medications for shutting down proton pumps. The ones we have arn't perfect, but the real costs of healthcare are in pallative care. So, maybe we need more R&D in those areas, and we can forgo the next stomac medication for a decade or so.
Of course, thats not where the drug companies want to spend their money, because there isn't as much money for them in it. Why? Simple economics, the patent system gives them ways to make alot more money by researching minor things that they can treat forever. Its not about educing overall costs and overhead in the healthcare system, its about getting a bigger slice of the pie for themselves.
-Steve
"I opened my eyes, and everything went dark again"
I predict they'll do the same thing they did with copyright extention. They'll admit that it might be a bad law, but they'll uphold the law and tell us to go to Congress if we want it changed. I don't think they'll find the injunctions unconstitutional.
Which I can respect, but is really a shame, as congress is so in-the-pocket they're just about useless in promoting anything that's for the common good over the corporate good.
Hope I'm wrong!
The problem here is that small IP holders are already frozen out due to he difficulties of navigating the patent system. what we have left are battles between Patent holding companies and Software manufacturers.
Its not like I can run down to the local patent office and patent my idea for a new web-based e-commerce ui design and then start suing people left and right. I can't because it would be 2 years before I can get my idea patented and 5 min before its invalidated because I didn't hire the team of lawyers to carefully craft the patent paperwork to include things I didn't think of but are similar to the things I did. If instead, I had $5 million and a crusty old Wang developer to sign on I could then do whatever I wanted.....
Ira
Yes, British Telecom, about a billion years ago.
Then it is about time for them to start suing isn't it?
World of Warcraft also has a "Buy it now" feature in their Auction House.
especially since a good portion of actual R&D is going on in our nations universities and university hospitals. In those cases, the drug company provides grants to college graduate students in BIO chemistry departments (and piddly grants too, $4 and 5 million dollars, which is HUGE money to a graduate school). Then these students (who are often making minimum wage level "stipends") come up with the drugs which are then handed back to the drug company to profit on. So the order is:
1) Take profits from last drug.
2) Give 0.01% of profit to create next drug spread among several university research departments.
3) Spend 1% of profit from last drug to convince hospitals to perform various drug trials.
4) spend 10% of profit from last drug to get FDA approval for the new drug
5) spend 50% of profit to market new drug
6) PROFIT!!!!!!
(note the absence of the obligitory ???? since there's no mystery involved)
Ira
If you think that's bad look at orphan drugs; the US government can literaly do all the research, and clinical trials, then hand the drug off to a company as an orphan drug, the company then sells the drug at horrendous profits, I've heard of a lady, who sometimes asks herself if "today was a $2048.00 day", because that's what her medicine costs.
Apocalypse Cancelled, Sorry, No Ticket Refunds
"(note the absence of the obligitory ???? since there's no mystery involved)"
Noted. You are hereby informed that the posting of business plans without the obligatory ???? is not allowed on slashdot and never has been. Please get control of yourself!
all the best,
drew
FreeMusicPush If you want to see more Free Music made, listen to Free
The purpose of patents is to foster innovation - that is, to ensure that an investment in research and development will be paid off before an invention becomes available for all to create and sell. Seen in this light, wouldn't it make sense to allow patents only on those ideas that cost a bunch of money to develop? You could set a lower limit of, say, $1 million on development costs (with periodic adjustments for inflation), and make a company or inventor prove they had spent at least that much in developing an idea.
Anything that doesn't meet this financial criteria is going to make it into the marketplace anyway, as it's probably an obvious offshoot of existing technology.
Just my two cents.
Serving your airship needs since 1995.
The reason why it's ludicrous is exactly why you see a case like this, and so many other software patent "disputes". It's just plain *nuts* on the face of it. Why not patent novels? Really, why not? Buncha stuff all typed up in a language or three, correct? So why not? Expresses some idea. It takes some skill, some effort, collating various ideas together in what the author hopes is a unique enough "new" thing to make a sale. The next novel might be slightly different, try to bring across a different idea, so another patent! How about music? Composers work at it, song writers, lyricists, arrangers. Why not patent what they do? It can be scored, using a musical language, and a unique song is unique. Give a patent! Next musician does something different, another patent! I do a lot of outside work, making gardens, landscaping, small scale terraforming. although others do it, my work is unique, it is slightly different from everyone else's. Can I get a patent? Why not? it takes work, it's unique, the arrangement is unique, it is meant for some purpose, so why not? I want my arrangement of x type of flowers next to y type of flowers in front of z bush to be patentable, because no one else did it before and I want them to license that idea from me, I demand exclusivity and government protection! I don't want anyone ripping off my ideas! Any other landscaper will have to license it, pay me! I learned my trade, work at it, use tools, create new stuff, etc, how come I am left out???
See how silly that is?
Nope, copyright is good enough for software, good enough for music and visual representations, but patents should be held in the physical realm. If you can't hold the device in your hand, it shouldn't be patentable. Once you start down the road patenting ideas alone, artificial constructs that only exist as representations on some media, no matter what they do, eventually everyone on the planet would need to have their own patent lawyer following them around reading contracts and paying licensing fees to do most anything. It is just plain nuts. It was a very bad idea to go down that road.
Back in ye olden days, people still did technical drawings before they built some new device. They didn't patent the drawings! they didn't patent the idea, they patented the stuff, the stuff made from the idea, you had to prove yourself by doing it. It was the device that had to be patented, the thing. Those people knew the difference, they could have easily made patents applicable to just the idea, but they DIDN'T because it's just *lame*. They made it so you could get a copyright on a drawing if you wanted to, and the written up description. that was enough then, it's still enough now (although the copyright term limits are still way too long in years)
Nonsense. False. Inaccurate. Mistaken. Did I mention that it is also wrong?
Article III vests the judicial power of the United States in one supreme Court, and such inferior courts as the Congress may from time to time ordain and establish. The power extends to all cases in law and equity. The Supreme court has original jurisdiction (to try cases) in rare and obscure circumstances (that never happens). In all other cases the Supreme Court has appellate jurisdiction, that is, the power to review the decisions of the lower Courts.
Now, there is little doubt since a case in the early days of our nation, Marbury v. Madison, that the Supreme Court has held the power to review acts of the other branches for constitutionality. And there is no doubt they do that quite a bit. But to say that this is the sole scope of their jurisdiction is to completely misunderstand what they do.
Appellate review of lower court cases, essentially, is to review the courts to make sure that they applied the correct law to the facts of the case, and followed the correct procedures in arriving at their fact findings. This is PRECISELY the issue in the e-Bay case, whether the congress meant what it said by writing,
The Federal Circuit looked at this language and decided that injunctions had to be given every time an infringement is found, without regard to principles of equity or the court's view whether the terms are reasonable. Yeah, I know. (and it is a little bit deeper than that, but not much). Anyhooo... the purpose of the Supreme Court's review here has NOTHING AT ALL TO DO WITH THE CONSTITUTION, but rather with respect to the construction and application of the statutory language.
Just like an appellate court is supposed to do.
If drug patents were quite as ridiculous as some of these software patents, somebody would have patented 'cold medicine', 'leg medicine', 'head medicine', etc and sat on the patent to get rich. At least the drugs are specific; these software patents are unreasonably vague.
...proved my point. You can't do anything until you actually fire up the computer, or printer, or network switch, etc. Until then, your idea remains an intangible construct. Go ahead and patent your computer innovation, or new type of printer, etc. Copyright your code, but leave the patents to the tangibles.
As to a chemical patent, well..chemicals are tangibles, yes??
No, there's nothing magical about coding, it can be hard or easy, no one is trying to minimize the skull sweat involved or wants to fail to give appropriate societal props, financial or otherwise, it's just bad law, bad policy, it's screendoors on a submarine, just ill advised.
Like I said in my earlier reference, then why not patent new musical scores or a new novel? How about my landscape design and techniques? How about Dance, can you patent a dance number? Go ahead, tell a novelist or playwrite or composer their work is trivial, not deserving of a patent, while the stuff you type up called "code" is. Answer the question-where is the difference? They type up stuff, you type up stuff, it can be very simple to amazingly complex and involved, it might take years and years to "code" up a novel. Why can't that novelist get a patent?
Because it's a stupid idea? Good enough reason?
Ideas represented on any media, paper, scroll, vinyl, tape, magnetic disc, stone tablets, sheepskin, whatever-copyright fits. Perfectly acceptable.
Stuff that is built- tangibles-patent.
It's extremely easy to see the difference and why we are seeing problems with this experimental attempt to patent code, and thatis really all it is, an experiment, and I maintain all the evidence is there to see that it is failing..
Every day that goes by with more software patents being allowed and encouraged is another day closer to the coding world coming to a screechin halt as everyone turns their wallet over to the lawyers. They are going to need cross licensing halls as big as Walmarts soon.
Balmer and MS and some other goons like that aren't joking around, they WILL eventually try and use the big patent stick,when/if they really feel threatened and see nothing to lose, and because of all the prior acceptance of software patents, it is going to hurt the industry-not just open source, the entire industry when that time comes. This is an example of MAD on crack and steroids that can and will be activated.