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US Supreme Court Limits Patent Claims

Aire Libre and other readers noted a unanimous Supreme Court decision that denied LG Electronics's attempt to evade the first-sale doctrine by use of "business method" patents. LG licensed patents to Intel, then attempted to dictate what use Intel's customers could make of the Intel products incorporating LG patents. The decision (PDF) notes how easily patents can be written up as "business methods" to nullify the first-sale doctrine ("exhaustion") and to give the patent owner perpetual control downstream. Aire Libre adds, "That reasoning bodes well for copyright freedom as well, in light of the growing number of copyright holders who seek to nullify the Copyright Act's limitation on the distribution right by claiming the goods are 'licensed, not sold,' or subject to some restrictive EULA."

7 of 118 comments (clear)

  1. That's strange by Daetrin · · Score: 4, Interesting

    It clearly seems like LG was in the wrong here, but this was a case where both parties actually produce and sell goods using the patents they own. Has the US Supreme Court had anything to say about the numerous cases involving patent squatters/submarine patents? That seems like it ought to be a more serious issue.

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  2. Re:Interesting... by Anonymous Coward · · Score: 4, Interesting

    True to the trollage, i must say that obama SEEMS less threatening on the freedom of speech side than hillary (the think-of-the-children queen), but i must say that both parties seem to want to limit such freedoms. Its just a question of HOW they are wanting to limit such freedoms.

    Course, not enough of the population seems to care and simply 'roots for their team'. Just an observation from outside your nation.

  3. Re:Interesting... by Chris+Burke · · Score: 5, Interesting

    ...that it is the very same conservative US Supreme Court that liberal slashdotters have been damning for years are the ones that strike this blow for freedom.

    Haha, actually I've been cheering them because despite being stacked with conservatives, they have still handed Bush his most significant legal setbacks of his entire eight years. Something the majority Democrat Congress has been unable to do. It's the Republicans who have been gnashing their teeth at the Supreme Court for being 'activist judges' when they won't let Congress or the President do something for no more reason than the Constitution says they can't.

    Personally, I just take this to mean that in the eyes of the least politically motivated branch of government, even when stacked with conservative opinions, Bush is way out on the right on a great many things. Yet another sign of how our country's "left-right" barometer is currently skewed heavily to the right. So don't worry. Even when some liberal justices get appointed, it won't cause the court to significantly skew to the left. While in some ways counter-intuitive, it's amazing how our least Democratic branch of government is in a unique position to protect our Democracy.

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  4. Re:It doesn't bode anything for copyright by wamerocity · · Score: 4, Interesting

    Wow, two good rulings in the space of 30 days. I might just start regaining faith in the judicial process again. Between this and the suit between Autodesk (autocad) and that guy on eBay who was told he couldn't sell used copies online. I thought that the eventuality of that decision was going to be tougher DRM restrictions from the software makers that make sold software impossible to install without some kind of online verification. But this ruling looks like the ball may be rolling in the right direction. Maybe I'll just wait to see what pans out before I get too excited... I've been severely disappointed in our government many times...

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  5. J.K Rowling v. RDR Books... by thtrgremlin · · Score: 4, Interesting

    ... will likely make its way to the supreme court. The complexity of the case, and the controversy over YOUR Intellectual Property versus MY culture. Lawrence Lessig is on staff for RDR Books defending, the same lawyer that fought (ok, and lost) in Eldred v. Ashcroft. I know this is too much to ask, but I see no reason not to revert back to the Statute of Anne. Give copyright holders a FIRM grip over their IP to allow them to reap its rewards and present it the way they desire, BUT, after a "Limited Period of Time", give it to the people to let it grow and thrive.

    Unless we are going to argue reincarnation, this lifetime is the only one I have. 'Forever' is my entire lifetime, or anyone elses. Nothing that is part of my culture can be remixed or reused by myself or virtually any generation I will ever see when there is a term limit of life + 70 years / 120 years.

    Anyway, Lessig and others learned some HARD lessons, such as the power of money among other things, not to mention the series of some good small wins for EFF over the past year, for GPL and such, showing the value free and freedom to the public.

    In light of the entire history of supreme court they can seem small, they have ruled on the side of reason defying long standing law, and majority opinion: Brown v. Board of Education of Topeka, 347 U.S. 483 (1954), United States v. Causby, 328 U.S. 256 (1946). United States v. Miller, 317 U. S. 369. While Miller had to do with government taking, why can not the same PROPERTY law apply as they keep arguing. "It is the owner's loss, not the taker's gain, which is the measure of the value of the property taken." was ruled. As for Rowling v. RDR Books, IMO, an idea only becomes culture AFTER it is given to the public. And you CAN'T copyright an IDEA. Making cultural references to an idea aren't piracy, and not even plagiarism, it is literature in its absolute meaning.

    So I hope that this case shows that the supreme court is ready to rule on the side of reason that Congress CAN NOT hide away like it did after LaMacchia with the NET Act. Eldred v. Ashcroft 537 U.S. 186 (2003) ruled the way it did because the argument made could not beat the argument of big money, so YES, I think this case COULD have major implications in the near future over copyright.

    The only circumstances under which I could be persuaded otherwise would be if they tax this PROPERTY progressively with respect to the amount of time on copyright, gross value earned from copyright, and number of copyrights held by a person. This would make it EQUAL with real property. At present, any vaguely original though or artistry I express in a tangible way has GREATER protection than the home for my family. And before I am accused of making a straw man, consider the ways you can loose and reclaim an IP versus the way you can loose and reclaim your house.

    Hope that wasn't too off topic for anyone, just my thoughts on the supreme court and reason.

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    1. Re:J.K Rowling v. RDR Books... by thtrgremlin · · Score: 5, Interesting

      The only empirical evidence where data was used to calculate maximum profitability for a creative work was in The Long Tail, and to the authors surprise, he concluded that the most reasonable copyright term would be 4 years, 3 years renewable for a max term of 7 years. Anything longer was pointless and hindered progress.

      I have no desire to see copyright widdled away towards something reasonable. It was extended past 14 years through a corrupted process people are recognizing, and it is time for it to be fixed!

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      Want Big Business out of government? Take away the incentive and start by getting government out of big business!
  6. Re:It doesn't bode anything for copyright by Kopiok · · Score: 4, Interesting

    The Supreme Court, from what I have seen, generally makes well reasoned, intelligent, and in general good decisions about the cases they hear. The problem is it's so expensive, and so hard to get your case heard that they don't decide on nearly as many cases as I think they should. Of course, there's only one Supreme Court of the United States, so it'd be tough to hear every case.