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New USPTO Test Could Limit Software-Based Patents

bizwriter writes "The high tech industry has been waiting for a Supreme Court decision in the Bilski case to decide fundamental questions, like when you can patent software. But there's a new test from the Board of Patent Appeals and Interferences (PDF) that just became precedential, meaning that it offers new grounds on which the US Patent and Trademark Office can deny patents on machines that use mathematical algorithms."

15 of 123 comments (clear)

  1. Re:Simple solution by Sir_Lewk · · Score: 3, Insightful

    Well since all software is math, this would effectively ban all software patents.

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  2. Its a little too late... by cosm · · Score: 4, Insightful

    Sure, the patent office has it rough, sorting a gajillion [technical term] applicants all wanting a patent for their "unique idea", with the majority really just wanting a foothold for litigation riches. Don't get me wrong, there are definitely honest attempts at securing one's interests and not getting your own pride and joy "unique idea" stolen, but I'll be damned if the USTPO hasn't awarded some of the dumbest, most wide-ranging generalizations to companies that patent spam thousands upon thousands a year. The latter mentioned issue has been going on long before the dawn of the digital, so I feel its too late to correct the problem in the current system.

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    1. Re:Its a little too late... by reebmmm · · Score: 4, Informative

      ...with the majority really just wanting a foothold for litigation riches.

      Contrary to this popular belief, lots of patent applicants want a patent to start their business and many others want to have a portfolio for defensive purposes. I'll also throw this out there, most of the patent applicants are not the same party that ends up litigating the patent. Many inventors and most companies cannot finance patent litigation. Even if they can finance the litigation, they're too risk adverse to monetize it this way. There is a lot of risk in patent litigation. It's much easier to take a lowball license fee than it is to risk/pay for 1) reexamination and 2) actual litigation.

      The most notorious group of patent litigators are usually companies that have acquired the patent for a nominal amount from the original inventors either through a bankruptcy, auction, or, occasionally, via a firesale when a company is in dire straights. Once they have it, they have little or no emotional attachment to the invention and there is little life left in the patent (term is about to expire) so they don't worry about making broad sweeping allegations of infringement for fear of invalidating the patent. They also don't fear invalidating the patent because they don't have any incentive to use it defensively since they have no products of their own.

      Finally, I'll note that only the tiniest minority of patents ever see the light of day. Most collect dust on someone's shelf.

    2. Re:Its a little too late... by Opportunist · · Score: 3, Informative

      I'll be damned if the USTPO hasn't awarded some of the dumbest, most wide-ranging generalizations

      In Australia John Keogh managed to patent the wheel. It was later struck down (probably because of prior art, dunno for sure...), but it was issued.

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    3. Re:Its a little too late... by rolfwind · · Score: 4, Insightful

      and many others want to have a portfolio for defensive purposes.

      This alone speaks to the brokeness of the system.

    4. Re:Its a little too late... by reebmmm · · Score: 3, Informative

      This is a silly proposal.

      Only individuals and not corporations may apply for patents.

      Only the actual inventor can apply for and be granted the patent.

      Well, in the US (unlike the rest of the world), patents are filed in the name of inventor. However, since patents and patent applications are like any personal property, they can be sold. The law really doesn't limit to whom a seller (the individual inventors) may sell his or her patents, but see my point below.

      Patents cannot be sold, only licensed.

      This wouldn't change a thing. You can structure a license to effectively be a "sale" without calling it a sale. [As an aside, there is a line of cases that distinguish between a license and a "sale of substantially all the rights" (aka an assignment)]. If there is some limit on what part of the whole you're allowed to license then people that intend to "sell" the patent will go right up to that line.

      Also, this doesn't make much sense in the real world.

      First, if you're a company that employs the inventor, you're going to be pretty annoyed when that inventor walks and takes the invention with him to your competitor.

      Second, it also doesn't make sense if you're selling your business, going into bankruptcy, trying to use the patent as collateral for a loan, etc.

      Finally, there are probably all kinds of weird tax issues with the license-only, no sale provisions.

  3. Re:Everything? by Nadaka · · Score: 5, Insightful

    Probably? Reworked? All algorithms are already mathematical formulas.

  4. Re:Simple solution by causality · · Score: 3, Interesting

    As eloquently illustrated here: http://xkcd.com/435/, everything is math. So, the question, as always is where does one draw the line. There is no reason to throw the baby out with the bathwater.

    How about this: you may not patent a work that is (or could be) protected by copyright. You can't copyright a physical invention like a new machine, drug, or industrial process. You can copyright manuals and other documents that describe those things, but those documents in and of themselves are not the subject of patents.

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  5. Re:Simple solution by causality · · Score: 3, Interesting

    You can't copyright a physical invention like a new machine, drug, or industrial process. You can copyright manuals and other documents that describe those things, but those documents in and of themselves are not the subject of patents.

    But you can both copyright and patent a machine's visual design, which itself can be described in a document, but the copyright and patent would be on the visual design itself, not the document. So there is precedent for software being both copyrightable and patentable at the same time.

    To really complicate things, visual designs can even be trademarked in some countries (including the U.S.)

    What you describe is how the system currently is. What I offered was a proposal for how the system might be improved, so naturally it won't reflect the current reality. Still, I like the idea of choosing one. Anytime a work might have multiple forms of intellectual property protection (copyright, patent, trademark, etc), the owner may choose only one. So you may copyright your software but may not also patent it. Or you can patent your software, but then we're free to pirate it :-).

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  6. Lawyering by burnin1965 · · Score: 3, Insightful

    Definitely a move in the right direction to address the now prophetic "untold consequences" foreseen by Judge Archer and Judge Nies in their dissenting opinion in In Re Alappat, No. 92-1381 (Fed. Cir. July 29, 1994).

    Unfortunately, as with the majority decision in the 1994 Tektronix appeals case, the tests provided to determine patent-ability of software algorithms continues to leave the door wide open to incessant lawyering not for the purpose of upholding the constitution and promoting "the Progress of Science and useful Arts".

    No, instead we will continue to waste investment resources to stifle competition in the name of profit margins and monopolies.

    Most people likely will not read the dissenting opinion so I'll quote the conclusion from the dissenting opinion here with emphasis added so others can see the prophecy for themselves:

    The majority's holding is dangerous in the following way. First, it reasons that one can obtain a patent for a discovery in mathematics as long as some structure is formally recited on the face of the claim. Under this aspect of the holding, many of the requirements for patentability other than "newness," such as nonobviousness, make no sense and cannot be meaningfully applied. Thus, mathematical patents will be easier to obtain than other patents. Moreover, the patent law will now engage in the charade wherein claims directed to a particular method of calculating numbers (for use in a computer) are unpatentable, but claims directed to a computer (performing a particular method of calculating numbers) are patentable. (Mercifully, the majority leaves open the possibility that a claim reciting structure on its face can still be rejected under 101. The majority says that this will happen where the claim reciting structure on its face is merely a "guise" for a claim to a mathematical process. Although the majority finds that Alappat's claim to a rasterizer is clearly not a "guise" for a discovery of a mathematical process, the majority does not describe in detail how one distinguishes in general a "true" apparatus claim from an apparatus claim in "guise." Presumably, the way this is done is to determine what is the invention or discovery for which the patent applicant seeks an award of patent, and then to determine whether that discovery is the kind the statute was enacted to protect, as this dissenting opinion does.)

    Second, the majority accepts the argument that all digital electronic circuitry is statutory subject matter when it performs a mathematical operation, and it is all equivalent when the particular mathematical operation is the same. Under this aspect, the mathematical patents will create an enormous scope of technological exclusivity. The lack of meaningful examination and the breadth of exclusive rights conferred by patents for discoveries of bare mathematical operations are repugnant to Congress's careful statutory scheme for the promotion of the useful arts.

    As the player piano playing new music is not the stuff of patent law, neither is the mathematics that is Alappat's "rasterizer." And the Supreme Court has in its decisions required it so. Alappat's claimed discovery is outside 35 U.S.C. 101, and for this reason I would affirm the board's rejection. I dissent from the majority's decision on the merits to the contrary.

  7. Why patent and not copyright? by AP31R0N · · Score: 4, Insightful

    Please don't mod me a troll for asking an honest question. IANaIPL. If i had the answer i wouldn't be asking.

    Why allow software to be patented instead of copyrighted?

    - Patents should be for THINGS (concrete stuff).
    - Copyright should cover TEXT (abstract stuff).

    It make sense to me that you should be able to protect the way YOU managed to execute some process, but not the idea of being able to DO the process at all. It seems to me that software companies are trying to patent vehicle direction input devices (as a concept) rather than just 'our particular design for a steering wheel'(a specific implementation).

    Seems to me that these systems should exist to prevent others from stealing your specific work, the result of *your* labor; not to prevent others from engaging in the same line of business. Which seems to be the point of much of software patenting.

    And why allow it to be patented instead of having it copyrighted?

    Am i missing something?

    Tangent/Rant:

    If the intent of copyright and patenting is to encourage innovation, i think it has failed. i have tons of doodles and outlines for things i'd like to see on the market or share. But when i look at what would be involved... i'd rather do anything else. Wash dishes, scoop the litter box or watch TV... than hire a lawyer and go through the years of waiting, piles of paper work and enormous expense of dealing with the nightmare of IP. Even if i do it all and do it all correctly it could still be taken from me by a better paid lawyer.

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    1. Re:Why patent and not copyright? by Grond · · Score: 4, Informative

      It turns out that there are lots of responses to your criticisms and questions. I will go over a few of the main ones.

      First, patents are for 'concrete stuff.' The patent statute makes this quite clear. "The specification shall conclude with one or more claims particularly pointing out and distinctly claiming the subject matter which the applicant regards as his invention." 35 USC 112 (emphasis added). Furthermore, "The specification shall contain a written description of the invention, and of the manner and process of making and using it, in such full, clear, concise, and exact terms as to enable any person skilled in the art to which it pertains...to make and use the same." Id (emphasis added).

      Now, a common rejoinder here is that many patents have very broadly written claims and weak specifications. This has not gone unnoticed, and there is a trend in Federal Circuit decisions to tighten down the requirement that the claims indeed be fully supported by the specification, which will tend to result in narrower claims and more detailed specifications. Furthermore, many broad claims that get through prosecution end up being invalidated on reexamination or during litigation; broad claims are easier to invalidate than narrower claims. Personally I support eliminating the strong presumption of validity for patents, which would make all patents easier to invalidate.

      Second, copyright is not for 'abstract stuff.' Quite the opposite, in fact: copyright protects the concrete expression of an abstract idea. In software this has been interpreted quite narrowly; as long as the source code, object code, and UI elements have not been copied or derived from, one is generally free to duplicate what a program does. This is because copyright explicitly does not cover the functional aspects of a work, only the creative, non-functional aspects. "In no case does copyright protection for an original work of authorship extend to any idea, procedure, process, system, method of operation, concept, principle, or discovery, regardless of the form in which it is described, explained, illustrated, or embodied in such work." 17 USC 102(b).

      Thus, if only copyright were available for software and not patents, there would be at least two major gaps in protection. First, functional aspects of a program could not be protected. All technical innovations would be up for grabs. Second, copyright does not protect against independent implementation, so even the creative aspects would not be protected against clean-room reverse-engineering.

      This is all without really getting into the fact that copyright is free and automatic whereas patents are expensive and must be applied for, that a copyright in one country is generally a copyright worldwide whereas patents are territorially limited, that patents have a limited duration whereas copyright is practically forever, or that patents can be invalidated due to obviousness whereas there is no clear equivalent to that doctrine in copyright. All of these and more are reasons why copyright in software cannot simply substitute for patents.

      Now one can argue that the patent system has its faults as implemented (and I would agree) or that it doesn't encourage innovation (and I would generally disagree) or even that all software should be open source by statute (and I would certainly disagree), but on at least a theoretical level the different kinds of intellectual property serve different, complementary purposes.

    2. Re:Why patent and not copyright? by reebmmm · · Score: 4, Informative

      IAaIPL with a pretty big lawfirm, so I'll take a crack at this:

      Why allow software to be patented instead of copyrighted?

      There is no "instead." Currently you can obtain both: one for "original work of authorship fixed in a tangible medium of expression" (i.e., copyright), and one for the "new, useful, non-obvious" "process, machine, manufacture, or composition of matter, or any new and useful improvement thereof" (i.e., patent).

      Patents should be for THINGS (concrete stuff).

      Well, I'm sure that one make the concrete industry happy, but I don't think it is a logical policy distinction.

      Snark aside, there are a few easily articulated reasons. First, it really depends on what you mean by "concrete stuff" and "things." There are lots of "things" that aren't concrete (we usually say "tangible"). But interpreting what you mean by "concrete" from your subsequent bullet, I'll tell you that your conception of the dichotomy between patents and copyrights is almost 100% inverted. Patents are essentially stakes in the ground around an idea whereas copyright is the protection of the actual expression of an idea. As it relates to software, it's the difference between the idea for the code and the code itself.

      Second, the statutory classes include non-concrete things such as processes. This is the "because the law says so" argument.

      Third, it's not just tangible things because it's very difficult to draw the line between "concrete stuff" and the not-so-concrete stuff. If you look at the claims at issue in this case, they're not just the algorithm. It's a computer programmed to do the algorithm.

      Think about it like this: a lever and a fulcrum are essentially the mechanical expression of using a physics equation for leverage. If you were the first person to think of how to apply the leverage equation to lift things, that would be quite an advance--I have assumed away the obviousness issues since the inventor is the first person to ever think of it and focused only on whether it would be patentable at all.

      Copyright should cover TEXT (abstract stuff).

      It's not the "abstract stuff" that is covered at all. It is the actual expression of the abstract stuff that is covered. You do not get a copyright for your incorrect ideas about intellectual property, only the expression of it.

      Seems to me that these systems should exist to prevent others from stealing your specific work, the result of *your* labor; not to prevent others from engaging in the same line of business. Which seems to be the point of much of software patenting.

      If you've ever been involved in a copyright dispute, you'd recognize how little protection that actually offers you. Furthermore, if you've ever been involved in a major software development project, the amount of time actually writing a specific piece of code is diminishingly small compared to the other time, effort and energy expended to get to that point: design, plan, etc.

      Viewed in this lens, protecting only the expression is not a lot of protection since it's easy to copy the idea without copying the code.

      i have tons of doodles and outlines for things i'd like to see on the market or share.

      Your individual experience says little about whether patenting and copyrighting advances or encourages innovation. Patents and copyrights offer some additional incentives. Those incentives are not enough for you, clearly. You are not along, there is a whole world of trade secrets for innovations that would be under-rewarded via patents and copyrights.

      But your argument is really a push for MORE benefits; not less. You would be unmotivated to contribute to innovation under the current system. The absence of that system would not provide MORE innovation from you.

  8. Rather a limited decision by russotto · · Score: 3, Insightful

    This patent used the common tricks of "An ordinary computer implementing 'insert unpatentable material here'" and "A computer-readable medium containing code implementing 'insert unpatentable material here'", and while the board rejected both, it did so with very nitpicky analysis (particularly in the second case).

    What the board should have done is categorically rejected them, particularly the second one. A claim like "A computer-readable medium containing X" should be no more valid than a claim of "A human-readable medium containing X". And the latter case would make the patent applications themselves patentable, which is obviously absurd.

  9. Re:I don't buy that argument. by Halo1 · · Score: 5, Insightful

    The natural world may only be approximated using a mathematical framework (at least at present), but the devices that we create based on that knowledge is a direct application of the mathematical models.

    No, they are a direct application of the laws of physics (and its manifestation in chemistry, biology, ...). These laws and their applications are described by mathematical models because those are a lot more efficient to work with (and to automate) than equivalent natural language descriptions, but the underlying novel insights are based on experimentation in the real world, not regarding maths (maths are just used to describe/generalise the observations from said experiments).

    So say you have an algorithm, and claim that it is nothing more than math. You can implement that algorithm in a programming language, convert it to machine language for a general purpose processor, implement it as a giant logic table in an FPGA, implement it using TTL logic circuits, or make a custom ASIC of the same logic. Many algorithms, such as signal processing, can be implemented to within a desired precision with either digital or analog filters. There are also mechanical implementations of the same ideas - mechanical calculators are obvious, but even simple things like automatic valves may be more robust in for certain applications than converting to the electronic/digital realm and back again. At what point do you draw the line and say that it is no longer just a mathematical algorithm?

    There are definitely grey areas and there is no way to draw a 100% clear line (even if you don't consider the issue of software patents at all; it's simply the nature of civil law), but as far as I am concerned the cases that you mention are not necessarily hard to classify.

    Whether you implement an algorithm in software or in an ASIC or in an analog filter should be irrelevant. If your contribution only lies in the algorithm, then this is what should be considered for testing the patentability requirements. If you also contribute a completely novel way of building an ASIC or an analog filter, then you'd be crazy to only claim that novel hardware in combination with a particular algorithm rather than the hardware on its own (since the latter would cover any usage).

    Conversely, if you figure out that you need 2 parts of Pb and 3 parts of Na to make 2 parts of Au, the fact that you can express this using a mathematical formula does not render this knowledge unpatentable (just like describing it in English does not render it unpatentable, even though text cannot be patented -- what you are patenting is not the description, but what is described). And performing this chemical reaction under control of a computer program would not render this process non-infringing simply because the basic knowledge is described in the form of a computer program and applied under computer-control.

    There are other examples, such as the psycho-acoustic model used by MP3 compression. While MP3 compression is usually implemented completely in software and a psycho-acoustic model is a mathematical model, this model is based on new knowledge about the physical world and hence a patent on that would not necessarily be a math patent (of course, there are other problems that pop up in this case, such as interoperability/network effects).

    Another example is anti-lock braking: it's virtually always performed under software control, but the actual invention is that by measuring the heat caused by the friction between the wheel and the brake you can determine whether you are skidding or not (and again, whether you perform this process via software, hardware or anything else is irrelevant as to whether or not it infringes, as long as the patent claims are drafted properly).

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