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Is the Tide Turning On Patents?

Glyn Moody writes "The FSF has funded a new video, 'Patent Absurdity: how software patents broke the system,' freely available (of course) in Ogg Theora format (what else?). It comes at a time when a lot is happening in the world of patents. Recent work from leading academics has called into question their basis: 'The work in this paper, and that of many others, suggests that this traditionally-struck "devil's bargain" may not be beneficial.' We recently discussed how a judge struck down Myriad Genetics's patents on two genes because they involved a law of Nature, and were thus 'improperly granted.' Meanwhile, the imminent Supreme Court ruling In re Bilski is widely expected to have negative knock-on effects for business method and software patents. Is the tide beginning to turn?"

34 of 172 comments (clear)

  1. When I applied for my patents... by Rei · · Score: 2, Informative

    My attorney encouraged me to focus not on the software aspects, but how the software interacted with the surrounding system (sensors, hardware, users, etc). It's been suspected for a while now that the vise was going to tighten up against patents on algorithms.

    And good, IMHO.

    --
    "This administration is so incompetent that they cover their tracks with bigger tracks." - Seth Meyers
    1. Re:When I applied for my patents... by poetmatt · · Score: 3, Interesting

      as it has been shown before, when it comes to software it's better to innovate than waste time on patents. Unfortunately a lot of people think it's a great idea to get something patented and don't even consider that hundreds of other people may have done the same thing before.

      I work in an industry where I hear the phrase "I'm applying for a patent on my product" all day long. It doesn't mean shit, and you can get sued for claiming a patent on a product that doesn't get approved. You're applying for a patent for x? guess what, so are the other 25 people for doing the same thing. This goes double or triple for anything involving software in any form.

    2. Re:When I applied for my patents... by Rei · · Score: 5, Interesting

      Yeah, tell me that patents don't matter when *you're* being told by potential investors that, gosh, you're a software company with an innovative product but you only have an app out for *one* patent? What are you thinking?

      Regardless of that particular lawyer's minority position, potential investors and even state and federal grant boards look strongly to whether you're taking steps to protect your IP. We have product *and* are patent pending. The product was developed privately before the patent was applied for. Most software companies launch on sweat equity. Early on, cash is for hardware, lawyers, travel, things of that nature.

      As for this "use the money to innovate instead" argument? Filing for a US patent costs about $10k, including attorney fees. An entry-level programmer costs you perhaps $65k after benefits -- we're talking entry level. So that's two months worth of salary + benefits. How much innovation do you think an entry level programmer is going to do in two months?

      Furthermore, all of the costs aren't upfront. You may only spend $6k or so up front, but more when you need to actually defend your patent. So that gets pushed down the road, which in a startup, is a *very good thing*. So off the bat, it's one month of a starting programmer's salary you're talking about.

      This is just the way business works. You either play the game or you get out of the pool. Many people here don't like patents because of their stifling effect on free software, and rightly so. But your anger needs to be directed at those who defend or seek to strengthen our current patent system rather than those who want it to be more reasonable but don't have a voice in the matter.

      Here's an issue that most people here probably aren't aware of. The patent system is skewed toward helping the Big Boys. Startups aren't your problem. Startups have less money, yet they have to pay more for patents because they don't have a big team of lawyers lying around. Startups often aren't familiar with all of the risks and intricacies of the patent process and may screw themselves over by talking in detail about what they're doing too soon or things like that. Startups *definitely* can't afford to patent troll, to file a bunch of random patents and see what sticks. Startups may not be able to afford to extend their coverage to new markets or cover their tech as well. So the whole system is biased in favor of big companies.

      What would I like to see in patent reform?

      * Shorter terms for software patents. The term on a patent of a given type should be proportional to the typical length of the product cycle, such that the term is, let's say, however long it generally takes for the third generation of said product to hit the shelves. So if you say the typical software innovation cycle is 2-3 years, then perhaps 5 years. From time of granting, not of filing.
      * Greater leniency for filing errors, but stricter standards for what's innovative
      * Faster processing times
      * A *higher* filing fee. This will make the percentage-difference in cost between patents from the big boys and startups smaller, as well as helping fund more people to review them faster and better.

      And you know... a lot of the business world would probably consider me a radical for this, but I'd like to see there be funding -- perhaps from the patent fees themselves -- for a governmental legal defense organization for nonprofits and individuals. That wouldn't mean that nonprofits and individuals would get a "violate patents risk-free" card. But it'd help stop meritless bullying from companies who know that their targets are too weak to fight back.

      --
      "This administration is so incompetent that they cover their tracks with bigger tracks." - Seth Meyers
    3. Re:When I applied for my patents... by Sark666 · · Score: 2

      "Many people here don't like patents because of their stifling effect on free software, and rightly so."

      I don't like patents because it hinders innovation and impedes the building upon of what could be knowledge known and shared by all. It's effects on free software are secondary to this.

  2. I'm not as optimistic about Bilski by Man+On+Pink+Corner · · Score: 4, Insightful

    I see a lot of parallels between Bilski and Eldred v. Ashcroft. They are both IP cases where the Court was asked to step in and do Congress's job for it. In Eldred they refused to issue any opinion whatsoever as to what would constitute an unreasonable extension of copyright terms. I see no Constitutional basis for them to hand down any other opinion in Bilski. IMHO the majority will refuse to state anything definitive on the issue, and mumble something about it being Congress's prerogative to interpret the "progress of science and the useful arts" clause in any way they see fit.

    At that point lobbyists will descend on Congress with checkbooks in hand, and we'll all end up worse off than we were before the case was ever brought.

    1. Re:I'm not as optimistic about Bilski by b4upoo · · Score: 2, Interesting

      Maybe not! Hard times have changed the public attitude in some strange and unpredictable ways. People feel betrayed by businesses in many ways and for many people revenge is about a wink away. I would think that our politicians may not wish to be seen as business friendly right now.

    2. Re:I'm not as optimistic about Bilski by jonbryce · · Score: 3, Interesting

      The main difference is that this isn't a constitutional case. The law says that there shouldn't be patents for software or business methods, and the courts have interpreted this in a very strange way. What we are asking the court to do is interpret the law as congress intended it to be interpreted, not over-rule it.

    3. Re:I'm not as optimistic about Bilski by Bigjeff5 · · Score: 2, Informative

      The main difference is that this isn't a constitutional case.

      Except for the fact that patents are laid down in the US Constitution, sure. Of course, that shouldn't make it a constitutional issue, should it?

      The Supreme Court certainly can and should decide whether or not restrictions placed on patents are constitutional. All laws are based on the constitution, and must not violate it. The SCOTUS's primary purpose is to ensure that this is the case.

      Now, the portion of the Constitution that allows for Patents and Copyright is small, and it's the US Patent and Copyright codes that determine how we use it, which are both external to the constitution, so I couldn't tell you how the SCOTUS would go on this. The usually seem to err on the side of caution, so don't be surprised if they maintain the status quo.

      --
      Security is mostly a superstition... Avoiding danger is no safer in the long run than outright exposure. - Helen Keller
    4. Re:I'm not as optimistic about Bilski by pavon · · Score: 2, Informative

      Except that neither party in the Bilski case is presenting a constitutional argument.

    5. Re:I'm not as optimistic about Bilski by jonbryce · · Score: 2, Interesting

      Nobody as far as I am aware is arguing that Congress were acting outside their powers in allowing patents to be granted. As far as I'm aware, Congress could pass a law allowing the software patents if they wanted to.

      They are arguing about whether or not a computer program that calculates the price of energy derivatives and buys or sells them in response to energy trades is patentable under the existing rules made by Congress.

      This invention appears to me to be part mathematical algorithm - calculating the price of the derivatives, and part business method - business operating procedure about how to run their business.

      If you employed someone to do this manually, it wouldn't be patentable, and the position in Europe is that it would mean it isn't patentable to do it on a computer either. We call this the "little man" defence. I think we are hoping for a similar ruling from the US Supreme Court.

  3. Can't be by Genius+In+Remission · · Score: 2, Funny

    I have a patent on turning tides

  4. Re:Piling on by BJ_Covert_Action · · Score: 2, Insightful

    Only if the video involves cats wearing things....or making awkward faces.

  5. Re:Tide Will Turn on Turning by BJ_Covert_Action · · Score: 2, Funny
    So what you're saying is...

    If the supreme court strikes down software patents with their Bilski ruling, they shall become more powerful than we can possibly imagine!

    Right??

  6. Yes and No. by MonsterTrimble · · Score: 2, Insightful

    Yes, but barely, and could easily return to the No side with big money backing it.

    That being said, whether it's next week or next year or 20 years from now, software patents will be be pointless. They will be ignored by everyone and their dog because countries like China and Russia completely ignore them and to compete with them, we will do the same thing.

    Open source is the future, believe it or not.

    --
    I call it 'The Aristocrats'
    1. Re:Yes and No. by TooMuchToDo · · Score: 2, Interesting

      If open source is the future, and hardware can be made dirt cheap anywhere on the planet, how is anyone going to make any money? Service? Not when there are 7 billion people on the planet. There'll be plenty more work than people available.

    2. Re:Yes and No. by Rockoon · · Score: 2, Insightful

      So who gets to do nothing?

      --
      "His name was James Damore."
  7. bilksi due soon; I'm optimistic by ciaran_o_riordan · · Score: 2, Informative

    I'm very optimistic about Bilski. Not because I predict a big win, but because I think the worst of the reasonably likely scenarios amounts only to no change. A somewhat win is likely, and that would be great because it would leave the door open for us to make our arguments again in a future case. This is how the SC handled patentable subject matter in the 70s, they did a trilogy of cases: Benson, Flook, Diehr. And that last one isn't as bad as the USPTO and the CAFC would have you think.

    1. Re:bilksi due soon; I'm optimistic by Lloyd_Bryant · · Score: 2, Insightful

      But should we throw out all software patents because in the abstract sense, not tied to a computer, they're mathematical algorithms? That's where we get the other policy argument: the Supreme Court is a political body. Software is worth a lot and represents a huge portion of the GDP. We're just starting to come out of a recession. If the Supreme Court invalidates business method patents, that's fine, because people will still keep using them if they're economically efficient, and 'business methods' are not products that are sold. But if the Supreme invalidates all software patents at a swoop, they just slashed the GDP by a significant amount, and the resulting market crash will make the Great Depression look like a minor blip.

      How exactly would eliminating software patents have *any* effect on the GDP? Software will *still* be protected, as it always has been, by copyright law.

      The US is an exception in allowing software patents in the first place. The rest of the world has gotten along without them just fine.

      --
      Don't tell me to get a life. I had one once. It sucked.
  8. This is progress? by goodmanj · · Score: 2, Insightful

    Cited as evidence of a sea change in patent law: the FSF makes a Youtube video. Some academics wrote some papers.

    This puts patent law reform at about the same level of public interest as this video on pouring shampoo out of a bottle.

    I'll wait for in re Bilski, thanks.

  9. No by Anonymous Coward · · Score: 5, Insightful

    The question is, if you were starting a business that provides a software solution, would you want to be able to protect your solution from the competition?

    Patents protect small businesses and innovation from competition, including big companies that will do anything in their power to stomp little companies with disruptive technologies. Open source is great, no doubt about it. But if you invent something, even if it is software, it deserves protection. Patents are part of capitalism, so no, there's no tide turning.

    1. Re:No by Daniel+Dvorkin · · Score: 2, Informative

      The question is, if you were starting a business that provides a software solution, would you want to be able to protect your solution from the competition?

      How about you ask Microsoft, Oracle, or Adobe that question? Since they all managed to become very successful software companies well before software patents became common, they probably have an answer.

      --
      The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
    2. Re:No by mellon · · Score: 2, Interesting

      Patents are a government-granted monopoly. To be exact, they are actually the complete anti-thesis of capitalism.

      Not exactly. They are the exact antithesis of a free market. They are a form of market regulation. But they are an example of capitalism, since capitalism is the system of owning things, and exchanges based on that ownership. Increasing the scope of things one may own, therefore, increases the scope of capitalism.

      It's unfortunate that it's so common to conflate "free market" and "capitalism." The two are related in a paradoxical way. A free market isn't regulated, but no such market can exist, since you can't own things without some kind of legal structure that says that you own the thing. Without that structure, at best you can possess a thing; you can't own it. And of course in that scenario patent and copyright can't exist--you can only have in your possession things that are excludable and rivalrous, but you can own anything the law says you own.

      So in a free market, there are actually very few things you can exchange, and therefore very little capital.

    3. Re:No by krenrox · · Score: 2, Interesting

      I think you made some claims that require support. For instance, your statement that any invention "deserves protection" is not automatically true. Granting an innovator the right to a monopoly on his/her product is only beneficial to society as a whole if it improves the availability of technologies to more people than not granting these monopolies. Some, such as Lawrence Lessig (http://www.youtube.com/watch?v=7Q25-S7jzgs) have argued that patents stifle innovation and are a detriment to society. I believe that your question "if you were starting a business that provides a software solution, would you want to be able to protect your solution from competition?" is in the same mode as the following questions: "If you had one hundred million dollars, would you want to protect it from thieves?" "If you had control of the oil market, would you want to be able to gouge the consumer for your own profit?" "If all the world were your unquestioning slaves, would you want to be able to insure they could not escape?" From the point of view of an 'innovator', patents may seem intuitive, but unless the research shows that they ACT in the way they are INTENDED, they do not deserve the same reverence that we give to physical property with real physical scarcity. As for your argument that patents are a part of capitalism, consider that the hallmark of capitalism is supposed to be free markets with resulting competition and prices that (due to competition) approach cost for consumers. Patents disrupt competition and in light of this I find your statement unfounded.

  10. Re:Theora or VP8 by FooBarWidget · · Score: 2, Informative

    It's still a rumor that hasn't been confirmed by Google.

  11. SC has plenty of ground to stand on by ciaran_o_riordan · · Score: 5, Informative

    The US Supreme Court has never upheld a software or business method patent. All they said in Diehr is that things that are patentable can be managed/controlled by a person or a robot/computer. The CAFC and the USPTO ran with this and approved all kinds of programs for such a robot/computer, but they're not the authority here. The Supreme Court is now taking over again for the first time in 30 years, and all they have to do in order to abolish software patents is to clarify and repeat their previous rulings.

    The Supremes have always said that math isn't patentable, it's a fundamental truth that can't be "invented", and they've said that putting instructions, including math onto a computer is an obvious step.

  12. Re:I hope so! by cosm · · Score: 2, Insightful

    That is the the root of the issue at hand. From a reductionist standpoint, you could make that argument about anything. An inked cartoon character is just an ordered and structured collection of pigments. This construct can be represented by a polar graph of molecules and their locations. This can be made into an equation, which is just a mathematical construct, which is just an abstract arbitrary construct of mankind, which you cannot patent.

    That is the trouble with patents, delineating intellectual property from reductionist components. It can be argued both ways.

    --
    'We are trying to prove ourselves wrong as quickly as possible, because only in that way can we find progress.' RPF
  13. MPAA news by tepples · · Score: 2, Insightful

    I would think that our politicians may not wish to be seen as business friendly right now.

    All five major TV news networks (CNN, CBS, ABC, NBC, and Fox) are owned by a movie studio in the MPAA. People who believe the TV news (and there are a lot of them) will believe a story that spins any consideration of narrowing copyrights or patents against bedroom authors and inventors.

  14. the tide changed before and will change again by NZheretic · · Score: 3, Informative

    Fed-Soc.org - Patents: Legitimate Rights or Grubstakes that Obstruct Progress? - Winter 2000

    This history shows the patent / free competition balance to be dialectical, not static. In this country, since the turn of the century, the pendulum has cycled twice between the patent right and free competition poles. The last free-competition era occurred between 1930-1950. Perhaps the zenith (or nadir, depending on point of view) was Mercoid Corp. v. Mid-Continent Inv. Co., 320 U.S. 661 (1944) where the Supreme Court held that tying sales of a non-patented product to a patented product constituted an impermissible extension of the patent monopoly and therefore patent misuse. Ironically, Mercoid facts today could support loss of profits damages under Rite-Hite Corp. v. Kelley Co., 56 F.3d 1538 (Fed. Cir. 1995). Partially as a reaction to certain court decisions (including the need to overturn Mercoid), the 1952 Patent Act slowly turned the pendulum back in a pro-patent direction. That movement accelerated full-bore with creation in 1983 of the Court of Appeals for the Federal Circuit to hear all appeals from trial court patent infringement decisions.

    As I said before The 2000-2010 "Intellectual Property" boom is about to go the way of the "Subprime" Mortgage, Dot-Com vapor startup, Junk bond and Dutch Tulip futures. The Patent Troll Business Model is inherently flawed, and just like the aforementioned others, add nothing to a nations REAL economy.

  15. Software patents can help certain industries by rm999 · · Score: 3, Insightful

    I'm a bit troubled by Slashdot's blanket reaction to software patents.

    In the line of work I am in (broadly: statistical analytics), almost all innovation comes in the form of creating improved methods that are implemented in software. It takes a large amount of resources to come up with these improved methods (they are generally far from obvious), and they can easily be transferred across the industry. Most companies in my industry would refuse to pay for innovation if they knew people could join, learn every recent innovation in two months, and then leave to the highest competitor bidder, effectively destroying any competitive advantage. Non-compete agreements are legally useless in my state, and NDAs are tenuous and practically hard to enforce. Patents (or stealing IP) are really the primary methods companies in my industry survive.

    tldr: software patents can and do vastly encourage innovation in several competitive and useful industries.

  16. Re:Video codecs by devent · · Score: 3, Insightful

    Is the formula to calculate the ratio of a circle's circumference to its diameter obvious? Neither is E=MC2 obvious, but no algorithm can be patented. Why should be an algorithm for video compression be patentable?

    Only because you implement it in software and you run it on a general purpose computer, you argue it should be patentable. So you can implement the calculation of PI and E=MC2 in software and run it on a general purpose computer.

    Software are mathematical algorithms, nothing more. It's just that you write the software in a so called "language" and you have multiple languages in which you can express the algorithm. But in the end is all goes down to the work of Turing and his Turing machines.

    --
    http://www.mueller-public.de - My site http://www.anr-institute.com/ - Advanced Natural Research Institute
  17. patents by zogger · · Score: 3, Informative

    I disagree on your economic analysis with software patents. Patents on software are a type of "broken windows fallacy" argument, and as such, are a hindrance to the economy, not any sort of positive asset.

      This is *precisely* the time we should be abandoning outdated (**AA type numbers and agenda, the entertainment distribution "industry") /harmful(software and living things patenting) /useless(casino gambling banks and created out of thin air financial "products") /parasitic(governmental make-work mc jobs) "businesses".

    Yes, there would be an adjustment period if we eliminated the bulk of those "jobs" up above, but after a short time, you would find people would be concentrating on real wealth production work, which in turn contributes to real wealth creation, an economy that doesn't need sham official figures to try and sugar coat reality, or one that relies on ..shoot..bingo cards as somehow all that valuable. This "IP" stuff is all well and good in some extreme moderation levels, but you can't run a huge nation the size of the US on services, patenting everything possible, every little tiny nuance of anything, even abstract concepts, and then high stakes financial gambling. The rest of the planet is starting to route around those bottlenecks now, that is why we are having a financial crisis, because we have been doing things "that way". So it is "that way" that needs to change, not just do more of it.

  18. Re:ideas aren't patentable by j.+andrew+rogers · · Score: 2, Interesting

    The abstract process to produce alcohol from fermented grain is in fact patentable. The specific implementation is protected by copyright. Chemical engineering is full of both patents and copyrights. There is nothing special about algorithm patents in this regard. You are not copyrighting the algorithm, just a specific reduction to practice. All types of patents are like this, abstract designs being patentable and reductions to practice having copyright protections.

    Chemical process patents are pretty much identical to algorithm patents except it is molecules instead of bits. If you develop a unique process (the algorithm) then that is patentable in the abstract and always has been. Industrial chemistry is full of (often formerly) patented processes designs. The implementation of a particular process design is copyrighted. Both pieces, the design of the process and the design of the implementation, are independently valuable and protected.

  19. As a small developer, I want software patents!!! by GiMP · · Score: 2, Informative

    It is well known that small businesses are innovators. Software patents are necessary to allow small businesses to compete with the large corporations which might otherwise copy, repackage, and sell the innovations of small businesses. There are definitely problems in the patent system, it is all too frequently abused. The negative attitude here on slashdot is, I'm afraid, a result of a successful campaign by the Free Software Foundation. I love open source software, both as a user and as a contributor, and it is unfortunate that patents do negatively affect, in many ways, the work of the free software movement. That does not, however, make patents evil, they are a necessity for the continued growth of technology and of a capitalistic economy.

    In regard, again, to free software, it does seem more and more like the comparison of communism versus capitalism. Surely, there is some innovation in free software, but much of that originates from commercial entities looking to upsell other products. It is reminiscent of how the only innovation in (classic) communist countries originated from a national agenda, such as the Russian space program. However, even in the commercially supported open source software realm, many of the "good parts" are often kept under a lock and key, such as with Zimbra or SugarCRM. My point is, that without a capitalistic agenda, innovation does not happen. Innovation does not happen without a strong patent system, as inventors are motivated by money. It is not that companies and people won't invent without money, but that money stimulates and motivates in a way that pure interest, desire, and passion do not -- keeping in mind that the financial stimulation is in addition to, not in lieu of passion-based innovations!

    The point? Do you work for free? What if you built a better mousetrap and began marketing it, but before you had the time to take it off the ground, a large national manufacturer began selling copies of your design? This wouldn't be protected under copyright, but would be covered under patents. This same scenario can happen with software too and small independent developers need protection, or they'll stop innovating completely, sell their businesses, and get themselves hired by large firms. Without competition, the large firms will stop innovating as well, and we'll all just twiddle our thumbs as we wait for the rest of the world to eclipse our rotting corpse of an economy.

  20. Re:Video codecs by devent · · Score: 2, Insightful

    You can touch a physical process or a machine. You can't touch some wave functions that are written on a piece of paper.

    A patent was always about something you can show and touch, but software is math, which is just some algorithms written somewhere. Only because you can write the algorithms on a computer and make a computer calculate it doesn't mean that the computer will become a device that you can patent.

    In the same way, if you write an algorithm on a piece of paper and make a human calculate it in his head doesn't mean that the human is a new device which is patentable.

    To make my point clear on your example. If you build a machine, you can patent it. But if you write a formulae which describes the machine as a series of complex particle wave functions on a piece of paper you can't patent it. Because I can calculate the wave functions in my head, by a calculator or with a computer. What are you claiming in your patent, all current and future ways of calculating your wave functions?

    That is basically what software patents are. They claiming all current and in the future possible ways of implementing an algorithm.

    The line between math, algorithms, software and patentable things are pretty clear. It's only not clear if you try to define software as not been math (which is certainly is) to protect your "intellectual property".

    --
    http://www.mueller-public.de - My site http://www.anr-institute.com/ - Advanced Natural Research Institute