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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. It doesn't bode anything for copyright by Quarters · · Score: 5, Insightful

    That reasoning bodes well for copyright freedom as well...

    Reason has no place in a legal proceeding. Sad, but true. This ruling doesn't have any direct implications on copyright issues. Any perceived reason the justices showed with this ruling can only be tested against copyright if and when a similar dispute regarding copyright makes it to the Supreme Court. Until a person or organization has deep enough pockets to push/appeal a court case to the SC we'll never know if the justices' reason extends to copyright or not.

    1. Re:It doesn't bode anything for copyright by taustin · · Score: 5, Informative

      The "first sale doctrine" has already been used to kill attempts by copyright holders to limit downstream use. The rulings have been consistently correct. The general reasoning, as was used in Softman V. Adobe is that if A) there is a one time fee, and not ongoing payments, and B) use is unlimited, not time limited, it is a "sale of goods" not a license. And if it is a sale of goods, then the first sale doctrine applies, and that's that.

      It may vary somewhat from state to state, but for the most part, the Uniform Commercial Code is the standard for all state laws that will determine whether software is sold as a sale of goods or licensed. And being a copyright issue, this will generally be decided in federal court anyway.

      This ia a good ruling, but for anyone who pays attention, not a big surprise.

  2. 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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    The enemies of Democracy are
  3. Decision depends on license and on what was sold by waterbear · · Score: 5, Informative

    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.

    If you look at the Supreme Court's decision (http://www.supremecourtus.gov/opinions/07pdf/06-937.pdf) it will be clear how it turns, first, on whether the patent license to Intel permits Intel to sell goods that practice the patents, and second, did the goods sold by Intel practice the patents. The answer to both questions was yes, triggering the application of the doctrine of exhaustion of patent rights with respect to the product that was sold. That was true even where the patent had method claims, and when those would not be completely practiced until the sold product was combined with other components. The rationale for that aspect was that the sold items practiced the patent by embodying all of the inventive matter and having in practice no other use except to practice the patent: the components left to be added were standard stuff, while all of the inventive content was in the items sold.

    None of that depended in any way on the question whether the patent licensor engaged in manufacture on its own account. The court did not need to consider that. So the decision clearly applies to patent holders who grant licenses to others to sell patented products, irrespective of whether the licensors themselves do manufacturing or not.

    -wb-

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

    WTF?! SCOTUS shouldn't be "left" or "right" wing! I want a Supreme Court that will read the Constitution as-is and from the beginning of it's creation. That last thing we need is for SCOTUS to interperate it in a shape/form that fits with "modern times". Screw that! If a line isn't drawn in drawn in the sand from the get go, what's the point of having this core document?

    Which, as I was trying to point out, is largely the case. You can't possibly prevent the justices from holding what you might call conservative or liberal viewpoints. Yet despite this, and despite efforts to deliberately get as many of a certain viewpoint on the bench as possible, the Supreme Court of the U.S. remains largely centrist. Overall, they have done a better job of respecting and sticking to the Constitution by far than either of the other two branches. They are the "line in the sand" you refer to, and they've done a very good job of stopping people from crossing it.

    In so much as they can. I mean, they don't have the ability to rule on arbitrary issues, so as long as warrantless wiretapping doesn't come before them in a case, they have no ability to rule on it.

    Sorry for my ranting folks, but this just bugs the hell outta me. If you want the Constitution changed, then vote to ammend it. I do not want some judge changing the original meaning to fit with their own political ideology and/or dreams for a different future.

    Which has been happening far, far less often than you probably think. The fact is that everyone colors their interpretation of the Constitution and what it means "from the beginning of its creation" with the political ideology. I consider myself very much a constructionist (or I guess origionalist), yet I don't delude myself that my reading of what "the Founding Father's intended" isn't affected by my own beliefs.

    The demonstrated ability of SCOTUS to resist this influence in their rulings is rather impressive to me, especially compared to the other two examples. All this screaming about "activist judges" changing the Constitution to suit their whims (in either direction, "left" or "right") is vastly overplayed, if not played out.

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    The enemies of Democracy are
  5. Changing the original meaning? by Mathinker · · Score: 5, Insightful

    > I do not want some judge changing the original meaning

    I don't get it. You actually believe that the words of the Constitution encode enough information to enable everyone to unequivocally understand what the authors of that document believed should be done in all possible situations (even assuming they had one unanimous opinion)?

    Face it. That's impossible, and that's why we have judges. And why they're constantly overturning old decisions and laws.

    Of course, I do agree with you that judges shouldn't be making their decisions based on partisan loyalty. But one has to cope with the fact that they are human also.

  6. 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!