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Lawmakers Take Another Shot At Patent Reform

narramissic writes "Patent reform legislation was introduced yesterday (PDF), which, if it passes, would be the first major overhaul of US patent law in more than 50 years. (It should be noted that the new legislation is very similar to the Patent Reform Act of 2007, which died on the Senate floor last year.) The legislation would bring US patent law in line with global laws, and introduce 'reasonable royalty' provisions, which change the way damages are calculated and would reduce the likelihood of massive payouts for some patent holders. Representatives from Google, HP and Intel were quick to say that the changes would cut down on frivolous patent lawsuits. But the Innovation Alliance, a group representing patent-holders that oppose the legislation, said that it would 'devalue all patents, invite infringement — including from companies in China, India and other countries — and generate more litigation that will further strain the courts.'"

25 of 154 comments (clear)

  1. changes by Anonymous Coward · · Score: 3, Interesting

    0. Any patent not being sold in a current product line shall pass into public domain.

    Might as well add this to copyright reform too.

    1. Re:changes by erroneus · · Score: 3, Insightful

      YES. That is why a whole bunch of products are protected by those "Patent Pending" labels and the like. At the very least, a patent needs to have been applied for but not necessarily granted.

      There are a LOT of "inventions" that can be imagined for which adequate materials have not yet been developed. What if I were to patent "antigravity panel that uses an unknown material that acts against gravity when power is applied"? This panel material is critical to the invention and I can claim to have first thought of its use even before the material with said properties has been developed.

      Patents need to GET USED not trolled. A great test for using a patent is actually producing a product for sale that works.

      So the "protection" you are looking for is the "patent pending" label.

    2. Re:changes by sir_eccles · · Score: 3, Insightful

      For a start your anti gravity patent wouldn't get granted because you haven't reduced it to practice. In simple terms this means you haven't worked out all the details and written them down.

      But just suppose you knew of a new material that made your thing work. You can make it in teeny tiny amounts on your kitchen table. But you need a big pile of cash, time, a large lab and a team of research scientists to take that kitchen table process and scale it up.

      You could go round to some banks (ha!) or maybe a venture capitalist or some bored millionaire asking for help. But they all turn you away because under your system, you can't get patent protection until you have a product. So they all walk away because the risk is too great.

      There are many inventions like this that are filed for by people who don't have the means to commercialize or even build a single prototype. For them, patents offer a valuable thing they can get that has value to investors.

    3. Re:changes by SCHecklerX · · Score: 4, Insightful

      which is why IMHO:

      1) get rid of software and business method patents
      2) in order to patent something, you need to have a working model, or show that you have the means to produce said model within a certain timeframe.

      I've had plenty of ideas. Some of them I could have patented. Why didn't I? I had no intention of going through the effort of building any type of prototype. If someone else does all of the work without ever seeing your work, then you should have no right to any type of money from that work, squatter.

    4. Re:changes by techno-vampire · · Score: 3, Informative
      YES. That is why a whole bunch of products are protected by those "Patent Pending" labels and the like

      You do realize, don't you, that all the words Patent Pending do is put people on notice that they may be liable for damages later, if and when the patent is granted? In the US, at least, the phrase has no legal effect whatsoever, and is only used as a warning that borrowing the idea now might lead to trouble later.

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    5. Re:changes by Eskarel · · Score: 3, Insightful

      It's not so much the Patent Pending label that's important it's actually having the pending patent.

      There's no reason we can't have provisional approval for products that don't exist quite yet. The problem is patent protection for products which don't exist and which the patent holder never intends to actually create, or which are actually impossible to build beyond theory.

      Essentially the basic question comes down to whether patents are designed to protect and promote ideas or whether they're designed to protect and promote implementation.

      If you put stringent requirements on actual implementation of patents, you have the potential to shaft the little guy. You'd have to ensure a number of additional protections such as ensuring that large companies can't just refuse to fund new ideas and then develop them after the patent has expired due to lack of implementation. That's certainly possible to do though.

      The flip side of that argument is that patents which aren't turned into products stifle innovation because they stop anyone else from developing said product, and harms society as a whole.

      All that aside, patents which are overly generic, vague, or which even given full funding the "inventor" couldn't actually create, should not under any circumstances be granted, and should be culled where they have already been granted. To use an example that's been mentioned earlier. If you can build a tiny anti-gravity machine, but it's prohibitively expensive to build a full scale one without some other development, you should probably get a patent. If your full scale one cannot function without some additional development, then you haven't actually invented anything and you shouldn't.

  2. Huh? by Savage-Rabbit · · Score: 5, Informative

    ...it would 'devalue all patents, invite infringement -- including from companies in China, India and other countries...

    Pardon my ignorance, but even if that is true does it matter? These countries, especially China, have a long history of not respecting patents and they don't look set to change that attitude.

    --
    Only to idiots, are orders laws.
    -- Henning von Tresckow
  3. What? No Child Porn & Terrorism? by Bob9113 · · Score: 5, Funny

    But the Innovation Alliance, a group representing patent-holders that oppose the legislation said that it would 'devalue all patents, invite infringement -- including from companies in China, India and other countries -- and generate more litigation that will further strain the courts.'

    These guys really need a new PR firm. Vague insinuations about the threat of SEAsia and clogged courts is soooo pre-9/11. It's all about child porn and terrorism now, guys - get with the program.

    1. Re:What? No Child Porn & Terrorism? by soren202 · · Score: 3, Funny

      Reforming patent laws would flood the market with cheap knock off products of currently patented technology. This flood would spur the growth of child porn leading to more abused children, as well as allow terrorists in the middle east to purchase newer, up to date technology.

      Don't support perverts and terrorists! Help the children and support America! Don't pass patent reform laws!

  4. A good first step, but . . . by defile39 · · Score: 3, Interesting

    This is a good first step. The US *should* be on a first to file system. Venue for patent suits *should* be restricted to venues that make sense (rarely ED TX).

    But some provisions go too far. Damages should be linked to some market definition - NOT what the trial court thinks is reasonable. Also, we need a change to the laws that provide incentive for innovation in regulated industries. Patents are most valuable in the life sciences. We need reform here. We need to better align value with innovation. We've still a long way to go.

    1. Re:A good first step, but . . . by defile39 · · Score: 3, Insightful

      Let me explain the debate a bit -

      The bill proposes to link reasonable royalties to what the court deems is the value of the technological innovation of the patent. This removes any market valuation of the patent, i.e. what a patent holder can extract from a potential infringer through a negotiated settlement. Instead, the court will assign the value of the patent by sitting back and thinking about how valuable the technology is in this instance. What it fails to take into consideration is that, in most cases, patents can be used to PREVENT someone from making, using, selling, etc. the invention.

      This inherently devalues the patent. If you can only extract the value of the added quantum of technology added by the patent, you sometimes won't be able to get damages at all. For instance, if an infringer used your patented technology, but they could've alternatively used some public domain non-infringing technology, you won't get much in the way of a damages award. There is a problem with this arrangement - it changes the fundamental nature of a patent.

    2. Re:A good first step, but . . . by shutdown+-p+now · · Score: 5, Insightful

      Why?

      Because "first to invent" encourages the tactics similar to that of submarine patents:

      1. Invent something.
      2. Wait for others to invent it too and start using it.
      3. File for the patent.
      4. Sue everyone who had been using your invention.
      5. Profit!

  5. Innovation Alliance == Patent Trolls by morgan_greywolf · · Score: 5, Informative

    The Innovation Alliance, which opposes these patent reforms, include some of the best and brightest in patent/IP trolling. One prominent company is the Canopy Partners, which is famous for its previous ownership of The SCO Group and Tessera, which is suing everyone in the wireless industry right now.

    1. Re:Innovation Alliance == Patent Trolls by techno-vampire · · Score: 3, Funny

      Didn't you know? Innovation Alliance is just a cover name. The group's real name is Patent Troll Association of America: PTAA.

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    2. Re:Innovation Alliance == Patent Trolls by StikyPad · · Score: 3, Funny

      Great New Association Acronym. Too bad they'll get sued by the Patent Infringement Troll Association.

      BTW, New Acronyms Make Baby Lesus Angry.

  6. Re:NO, Faster-issued, shorter lifetime patents. by defile39 · · Score: 5, Insightful

    Arguably, a problem with the patent system is that all technologies are treated the same. This is, of course, necessary because of treaties obliging member states to treat all technology the same, but it causes problems with incentives. We need long patents in regulated industries (namely, bio and pharma). We don't need long patents in EE industries where changing technology makes patented technology obsolete more quickly. This, however, is a hard issue to address. We're mired in international treaties that protect the status quo.

  7. Are you kidding me? by Weaselmancer · · Score: 5, Insightful

    But the Innovation Alliance, a group representing patent-holders that oppose the legislation said that it would 'devalue all patents, invite infringement - including from companies in China, India and other countries

    Yeah, because our American patent system has certainly stopped China and India from infringing thus far! Are these people nuts? Why the hell should these countries obey our patent laws regardless of whatever they happened to be? We're not the law there!

    And another thing while I'm at it:

    The legislation would bring U.S. patent law in line with global laws

    This legislation would have the best chance for getting China and India to respect our patents, since we'd be adhering to a global standard and not a local one.

    So this Innovation Alliance is, as far as I can tell - arguing against the very legislation that would have the best chance of supporting its agenda. In other words - yeah. They're nuts.

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    Weaselmancer
    rediculous.
    1. Re:Are you kidding me? by Weaselmancer · · Score: 5, Informative

      I don't need luck - it happened at my last job. We used to make an OBD2 car code scanner.

      The Chinese would buy them, disassemble them, reverse engineer them, and then sell clones. Not just patent infringement but blatant theft of IP. They'd copy our units even down to the bugs.

      And there are loads of patents in this particular product space. I worked on a team that wrote about half of them.

      Good enough?

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      Weaselmancer
      rediculous.
    2. Re:Are you kidding me? by Weaselmancer · · Score: 3, Interesting

      And you are showing your naivete. China knows there is no way to enforce this.

      Examples, you ask? Sure.

      Here is the family of devices I worked on.

      Here is an absolutely infringing device being sold. It is as blatant of a ripoff as you could possibly get. They didn't even change the freaking color of the unit.

      They reverse engineered our unit and built clones. We know this because we bought one and used it. It duplicates subtle bugs in our unit. It is absolutely 100% certainly an illegal copy. And the patent space in the OBD2 market is carved up VERY tightly, so they are certainly breaking patent law by selling this unit. Not to mention the whole "theft of IP" issues.

      And you'll notice that nobody is kicking down any doors to get these people to stop.

      Face it - this sort of thing is absolutely unenforceable. It's naive to think otherwise.

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      Weaselmancer
      rediculous.
  8. Re:NO, Faster-issued, shorter lifetime patents. by Austerity+Empowers · · Score: 4, Insightful

    Ok, so no one should be patenting "genes" period. It's a separate discussion the list of things that may be considered patentable that shouldn't be.

    His point is valid, patents are intended to promote innovation. In many industries they're actually retarding it, particularly in many EE/CS/ME areas. Investment in these areas is pretty cheap, and the innovation alone is its own reward in most cases. The real issue is that these patents are often obvious enough and essential and trivial such that they really shouldn't have ever been granted. The right thing would be to toss them out a window...

    In bio/pharm, I'm still not sure 17 years or whatever it is, is the right number, it seems awfully long for the way things are today... but it does cost a crapload of money to research and test and create the new ideas. Patents are still needed to keep companies interested in R&D.

  9. Re:Ridiculous arguments against, obvious need for. by mcgrew · · Score: 3, Informative

    Do you think the Chinese patent-infringing manufacturers care about US laws?

    They do if they want to sell their wares here.

  10. Re:NO, Faster-issued, shorter lifetime patents. by jonbryce · · Score: 3, Informative

    In pharma, it takes a long time after the patent is granted before you get your product onto the market, because you have to do lots of tests on it to satisfy the regulators that it is safe. Generally they have about five years of sales under patent before the generic manufacturers can move in.

    If tech patents lasted 5 years, that would take us back to around the time WIndows XP SP2 was released. I think we could live with that.

  11. Parallel development is a poor use of resources by Pinky's+Brain · · Score: 3, Interesting

    Patents should reward putting your invention out in the open. Having a huge period in which to do secret development is the anti-thesis to what patents should reward.

    The only problem with first to file is that there is no grace period.

    Lawyers hate grace periods, because if a paper without a million of legalese claims holds any value in court that diminishes their contribution to patents ... they see the exact wording of those legalese claims as somehow more important than the subject covered. Which is ridiculous ... in the areas I'm an expert I can recognize the innovative parts of a paper better than a lawyer can capture it in claims.

    I think the first to file vs first to invent difference is just being played up by lawyers to disguise the fact that the real thing they want to get rid of is the grace period.

  12. The JPEG patent is not trivial ... by Pinky's+Brain · · Score: 3, Informative

    The problem with the JPEG patent was it's non enforcement for all those years.

    AFAICS the inventor in question was the first to combine RLE+VLC coding and the first to use zigzag scanning of DCT coefficients. Both pretty inventive steps for which I see no real prior art at the time. Nothing at the time could get anywhere close to his results.

    Although I'm opposed to software patents in general, I think this one was more deserved than most.

  13. Re:NO, Faster-issued, shorter lifetime patents. by Moryath · · Score: 3, Informative

    In pharma, you generally get 5 years of sales under patent.

    In electronics/tech, you generally get 5-10 years before the tech is "stale." Unless you're like Intel or IBM or some other big company that can get their patent into the "root" of a tech standard and force everyone else to pay for the use of your patent. This is why Sony put DVD drives in the PS2 and Blu-Ray in the PS3, and spent tons of money pushing Blu-Ray on everyone: if they can get their stuff to be "the standard", then they stand to make a mint. They've also managed this with certain other technology (Beta, for instance, survived quite well in the TV production industry where quality mattered more than relative price).

    In manufacturing/tech, you can sometimes have the full run of your patent to make money, either by being the "exclusive" provider or (again) by getting people to license it.

    What's absurd isn't those limits, but the oddly strange "copyright" limits. If copyright terms were the same as the current patent terms, you'd see a lot less DRM and other foolish bullshit-crap being forced on consumers, because the primary reason for a lot of DRM (think, for example, printer cartridges) is to try to "copyright" what should, at best, be covered under a patent.