Microsoft Loses Appeal in Guatemalan Patent Claim

Spy der Mann writes "A year ago, Guatemalan inventor Carlos Armando Amado sued Microsoft for stealing an Office idea he had tried to sell them in '92. They were found to be infringing on his patent and had to pay him $9 million in damages, but they refused and appealed the decision. Today, just a year after they appealed, the Court confirmed the verdict: Microsoft loses. If that wasn't enough, the amount was raised to $65 million for continuing infringement."

Comments

Misleading summary

[kjart]

From the article:

Morrison & Foerster said it is hoping that the federal court will award Amado further damages for continuing infringement, out of an escrow account that now has more than $65 million in it.

The lawyers appear to be hoping for more, but it hasn't necessarily been increased to $65 million yet. Personally, I don't think it's worth that much, since the infringing technology is related to:

Microsoft's method of linking its Access database and Excel spreadsheet infringed on Amado's technology

but heck, that's patent law for you.

Hang on a minute

[sane?]

This concerns a patent for a method of shifting data from Excel to Access. I thought we had all agreed that software patents were a bad idea? All of them.

This guy managed to take two packages made by Microsoft and work a way of shifting data between them. So what? I'll guess (given that no reference is given to the actual patent) that given the two packages there are only very few mechanisms, and these are obvious in the context of the software. I can quite understand Microsoft telling him to take a hike for an export/import routine.

As much as it may pain some, this person looks to be a chancer. Just because its the little guy and Microsoft doesn't make it right.

Re:Good

[Halo1]

This is how the patent system should work. A guy came up with an idea and tried to make his buck.

Actually, this is independent of how the patent system should work. The only goal of the patent system should be to promote innovation. It is not there to "help the little guy get his share from large companies" any more than it is there to "help large companies crush little guys with their huge portfolios".

Only if the chance that other people would come up with this on their own is very small, and if the "original discoverer" would not publish it without getting a 20 year monopoly in return, and if the downsides of this 20 year monopoly don't outweigh the upsides of disclosure, then there could be a justification for granting the patent. On a macro-economic scale, this is not true for software patents.

In this particular case, it's about patent US 5,701,400. Let's have a look at claim 1, which as a whole consists of a single sentence of 506 words. Below, you can find a summary of the meat of that claim:

a program in execution by said computer for controlling operations thereof for receiving user input defining one or more analysis rules to be applied to user specified data from said memory,

We have a program with rules operating on data

each said analysis rule being a user defined arithmetic and/or logic test to be applied to user specified items of said data and for controlling said computer to receive and store user entered data defining the alphanumeric text of a diagnostic statement associated with each true result of each said analysis rule,

Each rule is a mathematical or logical expression returning true or false, and its outcomes are associated with text strings (i.e., if-statements with a string as result)

each said diagnostic statement comprised of a user defined alphanumeric text string which the user can program to define the significance of the true result, its relevance or any other expression which provides meaning to the user of the true result of the analysis rule, and for controlling said computer to receive user input controlling which of said analysis rules are to be applied to said data,

The user can specify the "then" and the "else" outcomes of these "if" statements.

and for applying said analysis rules so designated to the data designated by said user and returning a true or false result for each analysis rule so applied depending upon the state of the data to which each analysis rule was applied,

You can apply the if-statements to different inputs, and the output will depend on the input

and for each true result returned by an analysis rule, controlling said computer to store in a file in said memory the user programmed text of a diagnostic statement associated with each true result as a diagnostic in a diagnostic database,

Those earlier mentioned text strings are stored in memory once those if-statements are evaluated.

and for controlling said computer to receive and store in said memory user input defining one or more expert tests, each expert test comprising a user defined arithmetic and/or logic statement to be applied to one or more diagnostics selected by user input from the diagnostics stored in said diagnostic database, said arithmetic and/or logic statement comprised of mathematical operators and/or logical operators from any logic set such as predicate logic or Boolean logic including at least the AND, OR and NOT functions, each said expert test returning either a true or false result, and for controlling said computer to receive us

Re:Good

[moochfish]

To demonstrate just how arbitrary the patent system seems sometimes... let's replace a few words in your statement:

Good. Good. Good.

This is how the patent system should work. [Creative] came up with an idea and tried to make [their] buck. [Apple] stole the idea, which for all intents and purposes ruined [their] chances of making [their] money back. So, [they] sued [Apple]...

Of course, [4] years must be a hell of a long time to wait for your money...

You could do the same thing with Amazon's One-click patent and achieve similar results. Yeah... I am not saying the dude did or didn't deserve the money. I am just saying it all seems very arbitrary sometimes.

Re:Do they care?

[nurb432]

Its not quite that bad, but yes, stalling the case for a year has gained them much more revenue in the country than the 65M fine. Its just consider a 'cost of doing business'.

We have a radio station in town that was similar. They would regularly violate FCC broadcast power and obscenity rules. However, the extra distance ( power ) and listeners ( obscenity ) far outweighed the fines they incurred and just made jokes about it ( on air even ). The process continued for years until they were top dog in that market and didnt need to do it anymore.

That is not a reasonable summary of the patent

[njdj]

If that were all that the patent said, Microsoft's team of top lawyers would have ripped it to shreds in seconds. The fact is that Claim 1 just describes a component, for which no originality is claimed. The essence of the patent is that it takes a bunch of things, none of which are novel, and combines them in a way which is claimed to be novel. The patent itself says "its individual elements respond to prior art in the following areas: decision-support software and executive information systems, expert systems and expert system building tools, ..." and it cites 7 examples of prior art just in the area of decision-support software.

The patent is bad because it is a software patent. But if software patents are allowed, then combining known elements in a new way qualifies for a patent, because there is over 100 years of precedent in awarding patents for just that in other fields.

Submittor Failed to RTFA

[magicchex]

FTFA:

Morrison & Foerster said it is hoping that the federal court will award Amado further damages for continuing infringement, out of an escrow account that now has more than $65 million in it.

and

In June 2005, an Orange County, Calif., jury awarded Amado $6.1 million, ruling that Microsoft's method of linking its Access database and Excel spreadsheet infringed on Amado's technology.

The original fine was 6.1m, not 9m, while the current one has NOT been set at 65m. Seems "Spy Der Mann" didn't read the short article before submitting.