Champerty and Other Common Law We Could Use Today
pevans writes "Over on Red Hat's Opensource.com I found this neat summary of a few old laws that could really help us today with the patent trolls. The article 'What's wrong with champerty?' is brief, but full of legal goodness that seems to have fallen by the wayside: 'Let's bring back barratry, maintenance, and champerty for patent lawsuits. Combine that with a limitation on the assignment of patents and a lot of patent trolls would be out of business. ...do patents have to be freely assignable? And why can't we prohibit a cause of action for patent infringement where there is no net gain to society?"
I shall ready the trebuchet!
I'm trying to teach myself to set people on fire with my mind... Is it hot in here?
What you need is to make sane fucking laws, not apply laws from before the wheel to the age of the internet. That's what got us in this mess in the first place.
What next? Stoning girls because they weren't virgins on their wedding?
All that needs to happen is to make it so people can't SPECIFICALLY claim property just for the sake of passive income. Reform the laws so that people can't cash in on something they did not contribute to, no more random lawsuits aimed at people who did all their own work to bring things into existence.
The patent system is for one thing only. To aid innovation.
If the patent system doesn't aid innovation it fails its own raison d'être.
If a part of the patent system doesn't aid innovation that part fails and should be removed.
Patents and copyrights are both immoral protection rackets designed to hide information and make the rich richer. They stall human progress rather than help it. They will inevitably be removed. The only question is: How long will we wait?
Question: Why can't we prohibit a cause of action for patent infringement where there is no net gain to society? ...
Answer: Because who is going to decide what constitutes a net gain for society? The government (Big Brother sends his regard)? A board of community leaders (who will be on the payroll of the big corporations in no time)? Judges (the same ones who make a mess of patent claims now)? That way madness lies
Oh, don't forget that it was Clinton abolishing in the year 1999 a law from 1929 that had gotten US into the banking mess. Plus, creating innovative rules for mortgages...
Patents and Copyrights sole purpose is to enhance the society and this justification has to come back into consideration urgently.
What next? Stoning girls because they weren't virgins on their wedding?
This would cut down on teen pregnancy, abortion, children growing up in broken families, STDs, and so much more.
Modern science allows us to hunt down most of the guys too, so we don't have to be sexist. We can now get DNA just from a touch, and we can track tiny mutations in the microbes that people normally carry. Even a virus like HIV has mutations that can help lead back to the guilty party.
We can build a database with everybody's DNA signature in it, and soon we'll be able to do full sequences including microbes. We could use GPS tracking on everybody so that we can reduce the search space. We could even have chastity belts with tamper alarms, for both male and female (they can alert on proximity).
For the stoning itself, I think we should televize it live. We can auction off the right to throw the first stones, and we can sell tickets to throw the rest of the stones.
Go on then, write that law for us to see.
There are places where the networks are not touching,and there are places where they are-Boeing's Lori Gunter
mr_matticus closed by saying: But there is no way you can say with a straight face that on balance, these systems have not been wildly successful at encouraging investment in R&D, proliferation of art, and consumer access. At no other time in human history has so much been available to so many. Whining about the tiny fraction of extremely popular works that can afford to be highly selective about transactional terms is no way to suggest such an argument.
I'll agree that the parent post may have been going a bit over the top. So, I'll attempt to focus on some specific issues:
1) Getting a Patent: There's evidence that the USPTO isn't doing its job at examining patent applications. There are a slew of Federal regulatory services that have been suffering for years from inadequate staffing, the USPTO being one. This seems to be manifesting itself in the examiners not having time to spot a lot of obvious or non-original work. Hence, the icon for many of the /. patent-related stories.
2) Holding Patents: The original intent of the framers when setting up patent law was that inventors enjoy a limited window of time to enjoy the fruits of their inventions via a monopoly granted by the state. IANAL, but baring someone pointing out long established case law to the contrary, I'd bet money that the framers didn't foresee and would have legislated against "patent trolls".
Pray tell, what does it gain society to permit a business whose sole purpose is to quietly sit on patents in the hope that they don't turn up during a patent search, waiting to jump on the next goat who makes an actual product that might conceivably infringe? This business method is aided and abetted by 1).
Luke, help me take this mask off
Would the US have to follow, or see their software industry collapse?
No. The US is, I believe, the world's largest market for selling software. To sell into it, you have to follow US law, including patent law. So for anyone who wants access to that market (i.e. the majority of software developers), they have to follow US law wherever they are; therefore why bother relocating outside the US?
Barratry is alive and well, in both federal and many state judicial systems:
http://www.abajournal.com/news/article/lawyer_awaits_verdict_in_barratry_trial_over_subpoena_sent_to_opposing_part/
http://www.lukegilman.com/blawg/2009/11/07/houston-lawyer-charged-with-barratry-for-having-homeless-man-hand-out-business-cards/
http://www.citmedialaw.org/threats/state-oklahoma-miller-v-king
In the case of "the offense of persistently instigating lawsuits, typically groundless ones",
just making the accusation is often enough to make the attorney quit a case. They can be tried for it in court as well as being censured or disbarred, whereas the client can only be tried (often not understanding what it is and/or thinking their case's validity precludes such a charge). It may have been used successfully at least once in a context in which it is often discussed: "In Religious Technology Center v. Gerbode, 1994 WL 228607 (C.D. Cal. 1994), a Rule 11 sanction of $8,887.50 was imposed against Helena K. Kobrin, an attorney for the Church for bringing legally baseless, frivolous claims", however corroboration for this is lacking.
"I may be synthetic, but I'm not stupid." -- Bishop 341-B
Even if the EU is a smaller market than the US,* it would still potentially be worthwhile to develop non-US software if it was going to be significantly cheaper (due to patent licensing and massive legal costs) to make, especially for smaller developers. It could also end up being cheaper to obtain bespoke software, which won't care about weird American laws if the company commissioning it doesn't have an American branch.
* I wouldn't know how to go about finding such stats, but the EU has a greater population and GDP.
# cat
Damn, my RAM is full of llamas.
Time to look at the concept of damages more closely, not just make them broad. There is a serious question whether juries should set damages, or perhaps as fact-finders be forced to break them down for appeals to review at-law.
or lack of, at least, like when there wasnt patents in general, or lasted a reasonable amount of time, or didnt existed trivial/common sense/"soft" patents.
The article was written in a very superficial way. The author avoids going into detail on how her proposed solution would be implemented and why it would not have negative side effects. I suspect she has not actually thought very deeply about the problem or her solution.
But do patents have to be freely assignable?
Patents are personal property--and thus freely assignable--by statute. 35 U.S.C. 261. Assignability is also guaranteed by Article 28 of the TRIPS Agreement, which is a treaty that the US is party to. So changing the assignability of patents would require amending the law and withdrawing from or amending a very important international treaty.
And even if it were changed, it would mean that hundreds of patent holding companies would suddenly lose their patent rights because of an action by the government. Other patent holders would lose their right to freely assign their patents. That's called a taking, and the ex-patent holders and patent holders whose patents lost value because of the restriction would be able to sue the government for the value of the patents. It would be a massive litigation and cost the tax payer an enormous amount of money.
But anyway, how does she suggest we restrict the assignability of patents? We could require that they only be assigned to an entity that intended to practice the invention. Sounds great, right? No more patent holding companies, therefore no more trolls. There are at least five big problems with that:
1. Not all patents can be freely practiced because of other patents surrounding the technology. Imagine I own a startup company. If I invent a new transistor design I can't be expected to practice it myself: other companies have patents on things like manufacturing processes, bus designs, chip packaging, etc. I would have to license dozens of other patents in order to sell chips with my new transistor design. But that's backwards. Instead, I should license my one patent to companies like Intel and AMD and let them do the manufacturing and sales. But a requirement to practice means I couldn't do that; I'd have to practice it myself.
2. And what about pure research institutions like universities? They can't be expected to also become manufacturers.
3. But suppose we say it's worth making universities sell their patents. Well, now since they have to sell the patent only a single entity will get the rights. It can no longer stay with the university and be licensed to whoever will pay the fee. The end result is less competition in the market place for the finished product.
4. Okay, suppose we say that it's sufficient that the patent owner license the patent to at least one entity that is going to practice it. But then the law is too narrow. Almost no patent trolls actually rely on litigation damages for income; it's too uncertain and the margins are too narrow and often negative. Litigation is just a tool to extract a licensing fee. So the end result is that the trolls can point to a manufacturer who licenses the patent and nothing changes.
5. What about patents on technologies that are ahead of their time? For example, suppose I invented an amazing new transistor design. It will make computers much faster but it requires X-ray lithography in order to work. Well, X-ray lithography is not cost-effective yet, so I can't really practice my invention. Does my patent just evaporate? How does that spur innovation?
So the author has carefully avoided actually explaining how her solution would be implemented and how it would be narrow enough not to have side effects yet broad enough to be effective yet not invite more litigation or government regulation.
Trademark law dealt with a similar problem, a worry about trafficking in intent-to-use trademark applications, and solved it by forbidding the assignment of them "e
Patent trolls are in a very tenuous position -- in the absence of a lawsuit/settlement, they would not make _ANYTHING_ from their patents (even if valid). So their damages are _ZERO_. Not some hypothetical value had they chosen to manufacture or licence.
You mention licensing - that's the point. Patent trolls rarely fire a lawsuit as the first salvo - they're highly expensive and the outcome is uncertain. Instead, they send a carefully worded letter to indicate that they're open to licensing negotiations. When the target declines, then they file a lawsuit. So, damages can be based off of their licensing fees, or alternately, what the fair market value of a license of that patent would be.
Get the patent purchase price as part of discovery!
... so send a carefully worded reply. Whe3n they become unreasonable, then decline.
The point about the carefully worded letter is that if they said "we have patent x, we think you infringe, we'll sell you a license for y," then that creates a legal controversy... allowing the non-troll company to file suit for a declaratory judgement of invalidity/noninfringment in their home state, instead of E.D. Texas.
If you send a carefully worded reply that indicates you're not interested, then the troll files in E.D. Texas, and you're in a lawsuit anyways.
Get the patent purchase price as part of discovery!
Well, yeah, of course. But that's additional proof of damages. The trolls don't get them for free.
If there is a first-filer advantage, grab it! You know there's a suit coming, why duck?
Why ever say you're not interested? Kick the can! "we are unsure about your claim and would like to discuss licencing it further ..."
"Thank you. To proceed with discussions, please sign this non-disclosure and non-filing-of-declaratory-judgement-lawsuits contract."
If there is a first-filer advantage, grab it! You know there's a suit coming, why duck?
Because it can tip your hand early... The lawsuit may easily cost $100k. What if the licensing fee would be $10k over the next ten years?
Additionally, if you file before a controversy has arisen, then your suit could get dismissed early on for lack of standing.
As for the cost calculus, consider it prophylactic. If the defense costs 100 k$, the plaintiff will cost at least some [large] fraction of this. You need to scare them off. Delousing as a cost of business.
Humans are the the top of the food chain, so we prey upon ourselves. Do not imagine you can live as a sheep, without horns. The legal system is not intended to stop all predatation, but rather to optimize it. Any purely defensive war is guaranteed to lose.
I'm in total favor of reviewing and reestablishing older precedent. For example, my store/school/park/pub or bar, my property, my responsibility, my liability so therefore my choice on who I want to serve.
However, in this case, maybe it's not necessary. I think the champerty laws ultimately govern law processes, I think they can be abused to prevent you from opening a class action lawsuit, or as retribution for having successfully disrupted the system on account of a whistle blower.
Regarding law, Lawyers should be civil servants and paid accordingly. In America it's constitutionally guaranteed legal council, but who in America can really afford an lawyer? To draw up an interesting contrast here, let's pick a hot current affair regarding what the Average Joe has access too... Medicine. We all recognize the medical field is fucked up, average Joe can't get medical assistance, that surgery is too expensive this and that. But, what about compared to the legal system (of which, we are supposed to be constitutionally guaranteed access too)? I mean seriously, has anyone ever drawn up a comparison? Today I can effectively and safely tend to my minor wounds. I can buy some ibuprofen, some cough medicine, I know how to make a splint for a broken leg, I mean I can even get real medicine, the nerve in your tooth just died on a Sunday morning guy down the road has some cocaine to tide you over till Monday. Now, in the legal system you can represent yourself but that's called a fool and the cheapest retainer fee I could ever find was 500 dollars (pro bono you ask? HAH!). The legal system is so far out of reach of the average person it seems a damn waste of time even teaching words like "court", "lawyer/counsel/attorney", "Supreme Court" in our schools.
Now, we have all argued on the patents... my objections above lay on the perimeter of a basic sentiment. We should not rely on a broken and inaccessible system to fix another corrupted system. We should fix the systems, but regarding patents, the legal system and social laws are a totally different matter in themselves.
If RedHat is so bent on trying to provide legal arguments to bring back old stuff, then they should be trying to bring back the recently revised IP laws, specifically altering the legalities of reverse engineering. To me, RedHat's proposition only serves to fix a window pane of a house sitting on a shoddy foundation. I think we need a whole new house.
This will never happen. It sounds much more like an attack on the legal principle that a lawyer will take on a case "for free" in exchange for 1/3 the "loot" should they win.
And thus it will never get anywhere, even if its promoters scream "It doesn't mean that!" at the top of their lungs, for better or for worse.
(-1: Post disagrees with my already-settled worldview) is not a valid mod option.
There are a bunch of people in the US that want exactly that. Fortunately, they are not taken seriously.
They're the ones that buy t-shirts that say the guy who murdered a doctor in church is a hero.
You are welcome on my lawn.
false dichotomy. I support neither the murder of fetuses nor the doctors that commit the act. I do support changing the law and would like to see murder trials of said doctors, but I don't condone vigilantism.
Shall we look at your world view with the same disdain you consider that of others? There are a bunch of people that think that fetuses aren't people and can be destroyed at will. They're also the ones that believe that eugenics, the extinction of "inferior" people, is an admirable goal. Margaret Sanger, the founder of Planned Parenthood, advocated abortion as a means of eugenics and is worshiped as a hero by that side...
Perish the thought,
To this effect I demand that each innovation must cause a net loss to society.
Calling someone a "hater" only means you can not rationally rebut their argument.
Rancman v. Interim Settlement Funding Corp. 99 Ohio St.3d 121 (2003):
"We are asked to address whether a nonrecourse advance of funds secured solely by an interest in a pending lawsuit and at a contracted return exceeding 180 percent per year is permissible under Ohio law. We hold that it is not. Such an agreement constitutes champerty and maintenance and thus is void under Ohio law."
In the land of the blind, the one-eyed man is king.
Society is entirely irrelevant. As long as the individual benefits, society benefits. Rising tide and all that.
(Hey, pretending to be a libertarian is kind of fun once you pick up the lingo and cast logic aside for a few seconds.)
Three books, four speaking tours and eight papers later and the Libertarians still haven't caught on to that.
Calling someone a "hater" only means you can not rationally rebut their argument.
If we stone the promiscuous, they can't breed. Evolution will quickly change human behavior.
This didn't work prior to DNA testing because we couldn't stone the father (sexist stoning) and because we often didn't even detect that a child was fathered by somebody other than the husband.
Hey, we can go one better. Let's do things like the ancient Chinese: you misbehave, and we kill all your immediate blood relatives. Anybody sharing half their chromosomes (or more, ugh) with you gets stoned: child, parent, sister, or brother. Unlike in ancient times, we won't miss that illegitimate kid you fathered with your cousin.