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House Passes Patent Overhaul Bill
narramissic writes "ITworld reports that the House of Representatives has passed a bill that promises to overhaul the US patent system. 'The Patent Reform Act, supported by several large tech vendors including Microsoft Corp. and IBM Corp., would allow courts to change they way they assess damages in patent infringement cases. Currently, courts generally consider the value of the entire product when a small piece of the product infringes a patent; the bill would allow, but not require, courts to base damages only on the value of the infringing piece."
They support it because inevitably their huge products will, at some point, infringe on some ridiculous patent owned by anyone, big or little guy. It's a collective agreement to slowly disarm themselves against themselves. It's a win for everyone -- a step in the right direction. Lawyers will be MUCH more careful to accept infringement lawsuits on a percentage-of-winnings basis.
This is a good start, but it's a band-aid for a gaping head wound.... Passing a law guaranteeing the right to challenge obvious patents out of court would be a much more useful thing. Then, we could have a patent watchdog group (e.g. the EFF) working to significantly reduce the number of junk patents. Passing a law reducing patent terms in technology-related fields to five years would be another great improvement. A patent lasting two decades in computing is like a patent lasting two centuries in most other fields. It really borders on the absurd....
But this... this bill should not pass. It's a very bad bill. With this bill, existing players can still bludgeon the little guy with their often bogus patents and usually nobody will even notice or care. The only way to truly show how broken the patent system is to actually have an impact on big businesses, and those patent trolls are the only thing that can annoy big business enough to have a chance at real reform that would actually increase innovation. Stopping the patent trolls will thus make it harder to get legitimate reform, and in my mind, that's a bad thing.
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Changing the system from first to invent to first to file will only help incumbents who already have patent attorneys on staff. The original intention of patents, to give the innovator a head start in business, will be lost.
If you don't make the big companies pay big dollars for the IP violations then they will simply take advantage of all the smaller guys. Small money is all it takes to kill a small company so big companies stealing from a small company harms it not only in the reduced funds necessary to protect itself in court but harms to company's future potential. Small companies violating big companies patents hardly impact them in the same way. A big company stealing from a small company could kill the small company but a small company stealing from a big company generally has a much lighter impact on them.
This is just sad to see big companies trying to take advantage of the system this way. What needs to happen is that they need to focus on protecting the small guy and you don't do so by limiting what they can get in defense of their IP. This simply allows the big dog to tear up the little dogs in a fight.
This is bad news, not good news.
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> Okay, let's say Microsoft decides to sue Linus Torvalds over its FAT filesystem patent.
Most likely, Linus goes bankrupt during the opening motion practice and/or is forced to settle. The court never gets around to calculating damages.
Messing with the damage formula only benefits large corporations who, up until now, were looking at damages in the hundreds of millions and weren't overly concerned by hundreds of thousands in court costs. Patent trolls won't get as much money, and everyone else is still screwed as soon as the lawsuit is filed.
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