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"Bilski" Case May End Business Method Patents

hey sends us to a blog at NYTimes outlining the upcoming appeal of the case known as "re Bilski," which could spell the end of patents on methods of doing business later this year. One patent expert is quoted: "I think this is the unraveling of business method patents... I think there is a process we are going to go through to get there and the Supreme Court is going to be the one that decides it." But another expert thinks the case is unlikely to bring down the whole class of patents: "Definitions of business method patents always end up being circular. You can't really ban something unless you can define it and no one is offering a definition we can use."

30 of 101 comments (clear)

  1. How about by geekoid · · Score: 2, Interesting

    defining it be necessary for a patent?

    Or it doesn't fit the current definition of what is patentable, therefore not patentable.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    1. Re:How about by $RANDOMLUSER · · Score: 3, Insightful

      Obviously the things being patented are defined. The quote means they can't define what a "business method patent" is. It's kind of like that old quote about porn - "I can't define it, but I know it when I see it".

      --
      No folly is more costly than the folly of intolerant idealism. - Winston Churchill
    2. Re:How about by Anonymous Coward · · Score: 5, Informative

      The EU's patentability rules already disallow business model patents. To quote the relevant parts:

      (2) The following in particular shall not be regarded as inventions within the meaning of paragraph 1:

      ...

      (c) schemes, rules and methods for performing mental acts, playing games or doing business, and programs for computers;

      Circular definition or not, the system has held up pretty well since it was introduced in 1973, most (all?) member states already had similar restrictions before the rules were unified.

    3. Re:How about by fosterNutrition · · Score: 4, Insightful

      Not quite. As Dave Barry put it:

      "The big problem with pornography is defining it. You can't just say it's pictures of people naked. For example, you have these primitive African tribes that exist by chasing the wildebeest on foot, and they have to go around largely naked, because, as the old tribal saying goes: "N'wam k'honi soit qui mali," which means, "If you think you can catch a wildebeest in this climate and wear clothes at the same time, then I have some beach front property in the desert region of Northern Mali that you may be interested in."So it's not considered pornographic when National Geographic publishes color photographs of these people hunting the wildebeest naked, or pounding one rock onto another rock for some primitive reason naked, or whatever. But if National Geographic were to publish an article entitled "The Girls of the California Junior College System Hunt the Wildebeest Naked," some people would call it pornography."

      So no, just having certain areas exposed doesn't make an image pornographic (if it did, most biology and sociology textbooks would be 18+ only).

      Also, maybe I'm being trolled, but did you just say that you find children in bikinis hot? Your argument makes perfect sense if you used adults instead of children, so I can only assume you specifically intended to clarify that you find children sexually attractive. /me shudders.

    4. Re:How about by $random_var · · Score: 4, Insightful

      Obviously the things being patented are defined.
      The problem is certainly not localized to business method patents - but it is definitely a problem. The original intent of the patent system was to award a limited monopoly in exchange for a complete description of how to duplicate a specific implementation of an idea, so after the monopoly expired just about anybody could make use of that description. However, today, just about every patent filing is buried in legalese and is described in vague terms that intentionally cover as much litigatable ground as possible, while failing to provide enough information to effectively duplicated the implementation.
    5. Re:How about by c0p0n · · Score: 2, Insightful
      [...] so I can only assume you specifically intended to clarify that you find children sexually attractive [...]

      I think you're taking your argument way too far. As far as I can understand it the parent never said that. Please re-read.

      --

      Your head a splode
    6. Re:How about by fluffywuffy · · Score: 2, Funny

      But if National Geographic were to publish an article entitled "The Girls of the California Junior College System Hunt the Wildebeest Naked, ..."

      I'd be at the front of the queue to buy it :-)
  2. WTF? Am I missing something? by zappepcs · · Score: 2, Insightful

    "Definitions of business method patents always end up being circular. You can't really ban something unless you can define it and no one is offering a definition we can use." If I'm not missing something, it should take about 48 hours of concentrated blog reading to find a couple of REALLY good definitions of what should not be given a patent.

    What gives?
    1. Re:WTF? Am I missing something? by theM_xl · · Score: 4, Funny

      I'm no more a lawyer than you are, but I don't think common sense is allowed when it comes to law. Though there are also those who claim common sense is patented, and the cost of a license is prohibitive _

    2. Re:WTF? Am I missing something? by Yvanhoe · · Score: 2, Interesting

      How about defining things explicitly authorized instead ? Here in Europe, one of the very strong arguments of patent opponents is the regulation stating that mathematical formulas are public domain by default, being discovered, not invented. And for most law makers, an algorithm is similar to a formula. The loophole that many European companies use is that they patent a "machine running an algorithm X", the machine being a computer. I am not aware of any case in Europe where a software company has been attacked over one of these bogus patents.

      How about stating that a contract between entities/persons/agents is a work of literature and can be copyrighted but not patented ? What more is there in a "business method" than a set of contracts ?

      --
      The Wise adapts himself to the world. The Fool adapts the world to himself. Therefore, all progress depends on the Fool.
    3. Re:WTF? Am I missing something? by Alsee · · Score: 4, Insightful

      Screw blogs. How about we ask the US Supreme Court?

      US Supreme Court Cochrane v. Deener in 1876 defined a process patent as:
      an act, or a series of acts, performed upon the subject matter to be transformed and reduced to a different state or thing.

      In Diamond v. Diehr 1981 the US Supreme court quoted exactly that definition and reaffirmed it.

      US Supreme Court Gottschalk v. Benson 1972):
      Transformation and reduction of an article 'to a different state or thing' is the clue to the patentability of a process claim that does not include particular machines.

      And that too was quoted and reaffirmed in Diamond v. Diehr 1981.

      There is no difficulty with OBJECT patents. The only difficulty we are having is with PROCESS patents. And the only valid form of process patent is one for a physical process to transform physical matter into a different state or thing. If you figure out a way to turn coal into diamonds, you can patent that physical transformation process.

      Diamond v. Diehr 1981 also specifically WARNS that "insignificant post-solution activity will not transform an unpatentable principle into a patentable process. To hold otherwise would allow a competent draftsman to evade the recognized limitations on the type of subject matter eligible for patent protection."

      P.S.
      In addition to all the above, Diamond v. Diehr 1981 also explicitly stated that an algorithm ... cannot be the subject of a patent. Software is nothing more than "algorithm". And along with the above warning, we could hardly have a more clear prohibition against software patents. The Supreme Court WARNS the courts that they may not permit "insignificant post-solution activity" to transform a non-patentable software algorithm into a patentable process because that would allow creative writing patent lawyers to paint a process-patent costume onto prohibited non-patentable non-inventions and railroad them through the system. Which is exactly what the lower courts went right ahead and did anyway. The patent courts did exactly what the Supreme Court WARNED them they were forbidden to do. And that is how we got this mess of software patents and business method patents.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
  3. No definition? by Anonymous Coward · · Score: 2, Insightful

    What I don't understand is: Why does the USPTO grant something, i.e. business method patents, if nobody is able to come up with a definition? They must use some kind of definition, otherwise this proves that "business method patents" are nothing more than hot air. Is it just all about the money? I think I already know the answer...

    1. Re:No definition? by reebmmm · · Score: 2, Informative

      The problem is coming up with a GENERIC definition of a business method. Particular examples of business methods aren't difficult. The point being that most people know one when they see one, but describing the class generically risks including too much (e.g. other method type claims).

      Also, business method is really only necessary for classification purposes. Beyond that, a "business method patent" is like every other type of patent and so must meet the same basic criteria as any other patent. There isn't a different standard.

  4. ^_^ by theaceoffire · · Score: 4, Interesting

    If you can't define it, you lose your patent. That would fix most of our issues, because people who have to define their patent in easy to understand terms will suddenly find that there is prior art, or that someone else already has it.

    --
    I steal signatures. This one used to be yours.
    1. Re:^_^ by Critical+Facilities · · Score: 5, Funny

      They use all this legal-speak to define their patent, in order to make them seem novel and inventive.
      What the hell are you talking about? You obviously have no experience in creating/drafting patents. Take, for example, the patent I hold entitled "Manually actuated pressure initiation of uni-phonetic communication" which claims benefit under provision F.U.D. 34-19.2 of Provisional Application License 453/21.2532 filed in April 1984 which very clearly states:

      This invention relates to a method of interfacing between an operator and a portable peripheral of an electronic calculation and computation machine (heretofore referred to as a "computer") for the purposes of allowing a methodology wherefore force may be applied at incremental levels from the operators singular or multiple digits to individually assigned and actuated surface switches (heretofore referred to as "keys") with the designed intent being to allow for individual transference of intended characters occurring in the alphabet of said language/verbiage (referred to in Section 12-4.987) in the order of the operator's determination with the sole intent of creating collections of said characters for the purposes of "spelling" and relating notions, ideas, and phrases (henceforth referred to as "words").

      See? How simple is that? I mean, come on, it's not like I went out of my way to make that complicated, you must not understand this type of thing very well.
  5. Revisit is the key word....Resolve is the final wo by CodeShark · · Score: 4, Insightful
    As one of /. innumberable IANAL types, I can't comment directly, but the fact that the court wishes to "revisit" a decision that basically allowed business method patents to come into existence seems to be a positive development, especially because it sounds like either way, the decision will be appealed and SCOTUS put in a position to make a definitive ruling, which will resolve the question one way or the other. Or find a middle way.

    Certainly I don't think "one click" et. al are inventions -- they are implementations of an idea accomplished high speed by other peoples inventions. But there isn't a device in "one click", ergo in my mind there was nothing to patent. So my hope would be that the ruling would also go back to more of the founding father's desires to give individual inventors rights to market their own technological devices for a limited period of time, not the great big multinational corporations, who tend to use and abuse the system as much as possible.

    --
    ...Open Source isn't the only answer -- but it's almost always a better value than the alternatives...
  6. What is Patentable by Gallenod · · Score: 4, Insightful

    Defining what can be patented should be fairly straightforward but we keep getting tied in knots.

    A "cash register" is a patentable device. It is a physical construct that performs a specific work function. Its inventors deserve compensation for its invention.

    Using a cash register to calculate and record a business transaction is a method of conducting business. No one should be able to patent the idea that you use a cash register to conduct business becuase that use is obvious and implied in the original intent of the device.

    If we apply this to something like the Amazon "one-click" patent, the specific software application that acts as the mechanism for conducting the sale may deserve some protection. However, the idea of letting a customer buy something by clicking once, does not.

    My position, in short, is that functional constructs (physical or virtual) deserve protection but ideas about the use of a construct does not.

    That seems a simple enough practical definition, but I'm sure there's some problem with it that someone will feel compelled to expose.

    --

    TLR

    A man no more knows his destiny than a tea leaf knows the history of the East India Company
    1. Re:What is Patentable by Telvin_3d · · Score: 2, Interesting

      I think that what the parent is saying is that the idea of using the cash register is inherent in the cash register itself existing. Before someone has invented a cash register, the idea of using one for business does not exist. Once the cash register has been invented (and patented), the idea of using the cash register is not a separate idea that should be protected independent of the cash register. A novel new key layout might deserve some protection. The act of pressing differnt keys should not.

      For Amazon, the back end solution that drives the 1-click process possibly deserves protection. The act of clicking a button to buy something does not.

  7. Only business patents? by homer_s · · Score: 3, Insightful

    If the definition is "you cannot patent an idea", then logically all patents should be banned. Because even if a patent involves physical things (e.g., a heart attack predicting gadget), the only thing of value in that is the idea. Everything else in there is just metal, plastic and silicon.

    And banning all patents would be fine by me. Let the market work out how to protect and reward ideas.

    1. Re:Only business patents? by Gutboy · · Score: 5, Insightful

      But that is the way it is supposed to work. You can patent the device that predicts heart attacks, but you can't stop people from making other devices that predict heart attacks if they use a different method than yours. The idea "lets predict heart attacks" is not patentable, the machine that does it is.

  8. Eli Whitney pwns Ford by huckamania · · Score: 4, Interesting

    Look it up for yourself, but Eli had a working assembly line and replaceable parts, both innovations ahead of their time. He was a genius and yet all we remember (are taught) is that he invented the cotton gin.

    Before Eli Whitney, firearms were custom built by hand.

  9. Patent on Method for swinging on a swing by Tmack · · Score: 2, Informative
    The fact that this is patented is example enough that the system is broken, and method patents are ludicrous. Business method patents even more so. At least they go into detail on describing this method...

    Linky

    Tm

    --
    Support TBI Research: http://www.raisinhope.org
  10. The height of stupidity by MikeRT · · Score: 4, Insightful

    Business method patents allow a company to take control over better ways of doing business. One of the ways that businesses can cut costs is by adopting proven methods for increasing the efficiency of basic operations. This is common sense to anyone who gives it more than 10 seconds of thought. Should Starbucks be able to own a patent on the process of saving money by making a universal lid for its different sized cups? I don't think so because the cost to the economy is decreased efficiency at every other coffee shop that is barred from using this process without paying Starbucks.

    The simplest reason for not supporting business method patents from a pro-IP POV is that the business that discovers the process will already benefit greatly if it can implement it internally, and no business method patent is going to be unique enough to warrant the sort of protection given to bonafide scientific discoveries.

    1. Re:The height of stupidity by AeroIllini · · Score: 2, Insightful

      Should Starbucks be able to own a patent on the process of saving money by making a universal lid for its different sized cups? I don't think so because the cost to the economy is decreased efficiency at every other coffee shop that is barred from using this process without paying Starbucks. I'd like to expand on this.

      The purpose of patents is to give incentive for innovation by guaranteeing the possibility of a return on investment for a short time. If an inventor comes up with Device X, then all the engineering hours and work that went into developing Device X are an expense, and the inventor should have an opportunity to sell his idea under his own terms for a short time to try to recoup those costs (there's no guarantee of return, only guarantee of opportunity). Without the protection of patents, there's a good chance he'll say, "well, I am not going to go to market with this because my competitors will immediately copy it and sell it at a slightly lower margin since they don't have to recoup R&D costs. Therefore, I won't develop it because I won't be able to make money on it."

      But taking the Starbucks example... the idea of using the same size lid for all their cups will still save Starbucks money, regardless of how many other companies are also using the idea. They will implement it with or without patent protection, because they're saving money. Therefore, the patent protection offers no additional incentive to innovation, and should not be granted.

      Stopping others from using your ideas is not always incentive to innovate. The patent system needs to keep this in mind.
      --
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  11. How about this definition: by Moraelin · · Score: 5, Interesting

    How about this, very pragmatical definition:

    1. if it's something that one or more humans must do, you can't patent it. (I.e., no patenting "you show the ticket to the doorman".)

    2. if the same process could realistically be done by a finite and small number of humans, and your programs/modules/robots/whatever just automate a human's role there, you can't patent it. (I.e., no patenting "you input your ticket's number to the program.")

    3. If a nearly identical process -- i.e., serves the same practical purpose and the essential steps are the same, or minor variations of the same step -- is already in use with humans or in any other form or medium, you can't slap a "in software" or "with computers" on it and patent the same bloody thing _again_.

    The above, btw, comes from someone who actually likes patents as a general idea. I'm all for rewarding people who research new stuff, create new technologies, and/or invent new products. By all means, we need more of that stuff, and it's only fair to reward the people who invested massive money and manpower into researching it. In fact, at the risk of allienating a good chunk of slashdotters, I'm even for more of that in software. If that's what it takes to get more people into researching brand new stuff, I'm all for it.

    I _am_ however, dismayed by the joke that most patents actually end up being. I think it's time to revert to the original idea of rewarding technological progress, and weed out the chaff that doesn't do anything towards that end. Starting with the rehashes of an existing technique, only with "in software" or "with a computer" slapped upon it.

    --
    A polar bear is a cartesian bear after a coordinate transform.
    1. Re:How about this definition: by Anpheus · · Score: 2, Insightful

      Ah, so we shouldn't have -any- patents, because humans can be quite ingenious.

    2. Re:How about this definition: by Iron+Condor · · Score: 4, Interesting

      The above, btw, comes from someone who actually likes patents as a general idea. I'm all for rewarding people who research new stuff, create new technologies, and/or invent new products. By all means, we need more of that stuff, and it's only fair to reward the people who invested massive money and manpower into researching it.

      Up to here, I agree. If you put in a good day's worth of work, you should get a good day's worth of pay out of it. Heck, if you can negotiate a decent deal, you can get two or even three days pay out of your one day's work.

      But if you want to get paid next year, you should have to work next year. My plumber has to. My dentist has to. My lawyer has to. My barber has to. Why should YOU get to retire on the one good day of work you put in ten years ago?

      In fact, at the risk of allienating a good chunk of slashdotters, I'm even for more of that in software. If that's what it takes to get more people into researching brand new stuff, I'm all for it.

      As we can see in the real world, the opposite happens: If people can have one clever idea in their entire life and then expect never to have to work again because of that one clever idea, then they are expressly NOT interested in ever having a second clever idea. Ever.

      99.9% of patents[1] are granted not to people who think of it as a reward for contributing to the good of society, but to lazy parasites who imagine they should get paid in perpetuity because they figured out one trivial and obvious thing that they managed to obscure enough to squeeze it through the patent system.

      Thereby not only removing themselves from the innovative pool, but also everybody else who is working anywhere in the vicinity of the same field (and who cannot innovate in this direction any more because it's now patented). Patents are the greatest impediment to human innovation ever invented.

      [1] You are hereby challenged to sift through the ~two hundred thousand (and rising) patents issued in the US alone every year and produce ONE per year for the last five years that actually protects some truly new, innovative technology that actually improves humanity in some fashion as to warrant paying the inventor for the rest of his life (which is what a patent amounts to, these days) -- as opposed to being yet another utter triviality with the term "on the internet" slapped onto the end.

      --
      We're all born with nothing.
      If you die in debt, you're ahead.
  12. The problem there is precision by Moraelin · · Score: 4, Informative

    Well, the problem with law and what created legalese, is that you need to be painstakingly precise in defaining _exactly_ what is allowed and what isn't. Because otherwise someone _will_ use any inexactity to their own end, to shaft someone else. Natural language is vague, and lots of things that look clear when said or written in a blog, leave loopholes that you could drive a bus through.

    That's really why legalese evolved, and why contracts and laws are so verbose and use funny jargon.

    E.g., let's say I aggree to sell you a "Wii, original box" for your money. What if I only send you the cardboard box, without a Wii in it. There actually was an auction on ebay doing exactly that, albeit with a PS2 back when it was launched and there were massive shortages. Ok, so let's clarify that a bit as "Wii in its original packaging". Does it say it has to be a working Wii? It doesn't. Ok, let's clarify that too. Does it say in how much time I have to send it to you? I don't think so. So if you don't get it until 2018, hey, I still didn't break my word. So let's clarify that one too. Did I say I was going to include a wiimote and the cables and everything? Well, nope. If I'm an arsehole, I might send it to you without anything except the box, just so you pay more buying everything that's missing separately. Did we stipulate any penalties for breaking that contract? No? Well, then I might break it anyway, and what are you going to do about it? Did I say where it would be delivered? I'm delivering it to the top of Mt Everest then. Feel free to drop by and get it from there, any time you wish. Etc.

    As a private person you don't actually have to worry about most of that, because someone made some laws against that. But that means, essentially: someone else wrote a ton of legalese, so you don't have to. But it's there.

    But companies don't get that break, and neither do courts and lawmakers. There you really have to define _everything_ in painstaking detail.

    If you just say "thou shalt not steal", you'll get people arguing that they only borrowed it without your knowledge. Or conversely, what happens if I lent you a book and you forgot to bring it back in time? Can I claim that you're a thief and throw you in jail? So you end up having to write many pages as to exactly what is a theft, what isn't, and what steps to take to distinguish between them.

    There you go. For vague everyday use you have a very simple concept: "thou shalt not steal." It doesn't get any clearer. But for a law it doesn't even _start_ to be enough.

    --
    A polar bear is a cartesian bear after a coordinate transform.
  13. How about this, then: by Moraelin · · Score: 2, Insightful

    Well, how about this pragmatic distinction, then: "You may patent an exact description of the solution, but you may not patent the problem or the goal." It seems to me like that alone would weed out half the bogus patents in the USA.

    So basically, just as an example of that idea:

    - The exact building plans of a machine that predicts heart attacks, is describing the solution, and thus is patentable.

    "Predicting heart attacks" is, however, a problem not a solution. It's a goal, not the means to reach it. It gives you no exact steps to take and exact mechanism to build to solve that.

    "Predicting heart attacks" might be a part of the solution to another problem, but nevertheless that part is described as a goal, not as a way to solve it.

    - As far as I'm concerned, you can even patent an exact algorithm that solves the programming problem of your choice, provided that you supply ample documentation as to how it does that, and why it works. (After all, that was the whole idea behind patents in the first place.)

    You may not patent the problem or goal of that algorithm. So stuff like patenting "showing an applet on a page" should have never been patentable.

    - You _can_ patent a way to produce a chemical. Heck, I'll allow even a gene or a protein, to pick some of the most maligned examples. Go ahead. If you know how to produce MCR-B in a vat, go ahead and patent it. But, bear with me, there's a "but" there.

    But you cannot patent the general goal of interacting with a given mollecule. You can patent a gene, or rather a way of producing it, but you can't do something as silly as forbid someone to interact with it in any form of shape. You don't "own" the gene, you just own one method to synthesise it. If someone figures out a completely different medicine that interacts with the same protein or DNA strand, you can't lock them out.

    Etc.

    Yes, both the problem and the solution are ideas, but they're not the same kind of idea. More importantly, they serve diametrally opposite purposes. Figuring out a solution is good for us all. Even in the worst case scenario where you patent it just to forbid it from being done, after the X years expire, we'll all have your detailed description of the solution. But patenting the problem, like some of the trolls do nowadays, doesn't really help society at all. They're just adding burdens to those who'll actually find a solution. Patenting the problem is nothing more than staking a claim that you want to fleece whoever comes up with the solution. It runs contrary to the whole idea of stimulating research and progress, which is why we have patents in the first place.

    Just as a side-note, this is really orthogonal to my other objections to patents, so it doesn't preclude them. Even if under this rule I'd allow an algorithm because it's a solution, not a definition of the problem, I'd still throw out those which implement already existing human processes. Sorry, no patenting the the same thing again with an "in software" strapped onto it. You get the idea. It's just one part of the filter I'd propose, not the whole one.

    --
    A polar bear is a cartesian bear after a coordinate transform.
  14. What if your invention takes 18 years of labor? by JSBiff · · Score: 3, Interesting

    The problem with the mentality that you shouldn't get paid next year for the work you did this year is that it can take *years* of research to develop something. I was just reading a write-up posted on the wall in my University's Physics building today, about how it took Edison and his assistants 18 *years* of labor every day to perfect the Alkaline Battery. When he started, while the basic concept of a battery had been around for awhile, he had to do a ton of basic materials science / chemistry research, then further engineering efforts once he found suitable materials, to find the best physical design for the battery. 18 years. Granted, not every 'invention' takes 18 years, but you need to keep in mind, when discussing patents, that the patent system needs to take into account that it could take a very long time to recoup the investment someone makes in an invention.

    Another example of this is pharmaceutical patents. It can take years of research to develop a candidate for a new drug, then years of safety and efficacy testing before it receives FDA approval. All that makes it *very* expensive to bring a new drug to market. I think we can all see that, at least some drugs, have improved human health greatly, and so we should give the companies doing that R&D a chance to make back their money, and it very well might take years to make back the money.

    I mean, if you did 10 or 18 years of R&D to create a new invention, it might easily take you 20 or 30 years to make back the money you invested in that (especially when you consider that, after spending all that time/money on R&D, you know have to spend a ton more money for manufacturing/distribution/marketting, and it just might take a few years for your product to be 'accepted' in the marketplace to the point where it begins to make any money at all.