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The Patent Mafia and What You Can Do To Break It Up

colinneagle sends this quote from an article about the ever-growing patent racket in the tech industry: "The lawsuits are raging all across the tech world. Oracle sues Google, Yahoo sues Facebook, they counter-sue. Others threaten, others buy more patents and the circle goes round and round. Don't be fooled by the lawsuits between these tech titans though. The real cost that the patent mafia extracts from the tech world is on the smaller companies who can't afford to battle the Apples and Microsofts of the world. Their choices are far simpler. They can abandon their innovations or they can choose to pay and allow the Mafiosos to wet their beaks. Also, don't be fooled about who the real losers are here. The the real losers are you and me. ... So what do do? Here is my opinion. I would make it just as expensive for the offensive patent prosecutors. Just as the government put in the RICO act to combat organized crime, I would put a similar law in place on patents. RICO calls for treble damages. I would have treble awards of costs and legal fees. If a patent holder sues another entity for patent violation and that suit fails, the plaintiff who brought the suit should pay treble damages to the defendant. Three times what the defendant paid to defend."

205 comments

  1. Damages by Anonymous Coward · · Score: 0

    Just paying the defendant's legal expenses is horrible enough.

    1. Re:Damages by ZeroSumHappiness · · Score: 5, Insightful

      No, it's not. If I'm a small business with 25k in debt to start up and another 50k in debt to finance my new patent on my new product and then Microsoft sues me for violating their patent I can either capitulate and be out a minimum of 75k as my business disappears or fight with nearly no money to finance my operation.

      Microsoft, on the other hand, can pay 5M to its lawyers to crush me.

      If, somehow, I win my legal fees back I get to wait through round after round of appeals, have lost months if not years of product sales due to the injunction in place on me and have, in the meantime, defaulted on all my debts, losing my business. Yeah, not quite fair.

    2. Re:Damages by RenderSeven · · Score: 5, Insightful

      Its worse. Microsoft steals your work, you sue them, they spend 1M to crush you, and under Submitter's plan you would pay treble damages.

      No, the only plan I can come up with is to sell your patent to a troll with cash reserves in exchange for something like 10% of their winnings if they successfully sue MS. Lunacy like that is where we are headed, the blood sucking lawyers will make sure of it.

    3. Re:Damages by gatesstillborg · · Score: 3, Interesting

      I believe you misinterpreted this. I believe TFA is saying that only the plaintiff, NOT the defendant, would face this liability, which would greatly reduce the volume of frivolous and downright extortionist suits. I have felt this to be the correct approach for a good while now, though was unaware and interested to know about its previous application to organized crime.

    4. Re:Damages by NormalVisual · · Score: 3, Insightful

      I believe TFA is saying that only the plaintiff, NOT the defendant, would face this liability

      Okay, lets say you (an individual or small company) sue Microsoft for stealing your patent. What will then happen is that Microsoft ties you up in court long enough to force you to drop the suit (or they just win outright), and then *you* might find yourself on the hook for triple damages when they counter-sue to recover their costs. It's still the same basic tort reform idea that has been proposed for years, and won't work for the same reason. It doesn't address the fundamental problem that in the U.S., you often get as much justice as you can afford and no more, regardless of which table you sit at in the courtroom.

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
    5. Re:Damages by crafty.munchkin · · Score: 3, Informative

      Which is what happens in Australia - to stop frivolous lawsuits. A very recent example - AFACT vs iiNet, costs were awarded to iiNet meaning the MAFIAA had to pay their (multimillion dollar) legal bill.

      --
      ... wait, what?
    6. Re:Damages by Anonymous Coward · · Score: 2, Interesting

      Patent reform:

      1) Each patent owned by a company requires an annual fee of $50,000 starting five years after the patent is valid
              - Fees are waived for the first 50 patents owned
              - Fee proceeds are used to hire additional patent clerks and improve patent processing
              - Fee is indexed to inflation

      2) Transfer of a patent to another company incurs a one-time $50,000 transfer fee
              - Fee is pro-rated based on length of time remaining on the patent
              - Fee is indexed to inflation

      3) A company may choose to donate a patent to the public domain and receive a tax break
              - Fee is pro-rated based on length of time remaining on the patent
              - Capped annually at $1 Million
              - Cap is indexed to inflation

      4) Patent licensing requires public disclosure of full license costs, terms, and conditions

      5) Any company whose patent related gross revenue exceeds its non-patent related gross revenue will incur an additional tax
              - Additional tax is a flat 15% of all patent related gross revenue
              - To increase the cost of running patent shell companies

    7. Re:Damages by ZeroSumHappiness · · Score: 1

      Fees are waived for the first 50 patents owned

      Fees aren't that high. Paying lawyers and technical experts to make sure you're not infringing anyone else's patents and that your patent is sufficiently described, however, cost a lot.

    8. Re:Damages by serbanp · · Score: 1

      AC is talking about the 50k/y fee to maintain a patent, per his/her proposal, not the filing fees.

    9. Re:Damages by gatesstillborg · · Score: 1

      The purpose of this is to prevent the bringing of groundless suits (by patent trolls). Presumably, the legitimate small business owner has not motivation to do that.

      Of course, the huge patent troller can bring to bear all kinds of legal muscle to defeat a legitimate patent suit brought by a small entity, though that does not change the fact that the protection (ie. treble penalties for groundless suits) is still worthwhile. It is just a failure in a separate (though still problematic) area.

    10. Re:Damages by rtb61 · · Score: 2

      Most importantly this prevents mass law suits. If one defendant wins, then all other defendants can use that case as precedent and the punitive law suit group, companies who use the civil actions themselves as extortion and penalty, would be up for everyone's costs. So lose one case to a person who can afford a defence and all of a sudden they have lost every case and have a massive bill to pay. This allows groups of defendants to pool their resources to fight one particular case and then use that victory as precedence in their own, it allows all the defence lawyers to soak up costs for a bit knowing the other side will be paying every ones court costs.

      --
      Chaos - everything, everywhere, everywhen
    11. Re:Damages by Mitsoid · · Score: 2

      So pay the defendant 3x the defendent's amount spent on lawyers & court fees
      Or pay the defendant 3x the Plantiff's amount spent on lawyers & court fees

      Whichever is higher

      When BigNameCorp aims to sue littleGuy out of business, if that buisness wins they get a HUGE pay day (and perhaps can hire a lawyer whom agrees to receive payment on winning)..

      you'll be sure MS/Google/Apple will think twice before sending 20 lawyers after Mom & Pop

    12. Re:Damages by zill · · Score: 3, Insightful

      Fees are waived for the first 50 patents owned

      ACME Corp creates ACME Subsidiary #000001 through ACME Subsidiary #999999 and sells 50 patents to each Subsidiary for $1.

      It's admirable that you're protecting small-business, but it's a lawyer's job to exploit loopholes like this.

    13. Re:Damages by Imrik · · Score: 1

      I say drop the first one, otherwise no one will be able to risk suing a large company infringing their patent.

    14. Re:Damages by Anonymous Coward · · Score: 0

      I say it's easier.

      Get them to pay whatever they were suing for.

      If they think a patent / copyright violation is worth 12 million dollars for 20 music tracks -- and the mafia loses their case, 12 million to the defendant.

    15. Re:Damages by cjcela · · Score: 1

      The issue is that patent trolls have money (after all, they are in the business of making money, regardless of who it comes from), but small companies not so much (they are in the business of developing technology). If we are serious about innovation, patents do not really have a place in certain areas (software, etc). Then a large company cannot bully you into bankruptcy unless they have a better product than yours. But the system as it is is unbalanced, rigged towards the heavy players. I think that even if you are for patents, there is a case to make for a better distribution of IP - as it is right now, large companies hold most of the IP (as the patent and patent/copyright protection mechanisms are expensive), and that makes for a very flat technological landscape compared to what would be possible if medium and small companies owned a larger share of it.

    16. Re:Damages by CanEHdian · · Score: 2

      As the small business, you can still continue to develop your own product even after Microsoft (for instance) infringed (not stole, my friends) on it. Once you have a finished product that has met all the qualifications of financial backers (except for the competition from Microsoft), THEN the infringement becomes an issue. It may even help with name recognition, etc. It's up to you, of course, to have a valid, non-trivial patent for which no prior art exists (going "bla-di-bla, but on a computer" then "bla-di-bla, but on a mobile device" is not going to cut it much longer(.

      --
      When the copyright term is "forever minus a day", live every day like it's the last.
    17. Re:Damages by Anne+Thwacks · · Score: 1

      $50k? You might as well prohibit small companies from holding patents in the firs place.

      --
      Sent from my ASR33 using ASCII
    18. Re:Damages by CanEHdian · · Score: 2

      2) Transfer of a patent to another company incurs a one-time $50,000 transfer fee
      - Fee is pro-rated based on length of time remaining on the patent
      - Fee is indexed to inflation

      Filing is free, but the transfer from Acme Corp to Acme 001 Inc. will cost. As well, in order to use it, Acme Corp would have to license it from Acme 001 Inc, also if 001 is the original filer to circumvent 2):

      4) Patent licensing requires public disclosure of full license costs, terms, and conditions

      AC should have added that anyone should be able to license the patent under the same conditions; the 50 that Acme Corp itself holds wouldn't need to be licensed so this rule would not be appicable to those 50. It can hold the core patents itself, but perhaps 50 should be 10 which would make that a lot more complicated.

      --
      When the copyright term is "forever minus a day", live every day like it's the last.
    19. Re:Damages by Plunky · · Score: 1

      AC mentioned that the first 50 patents held would be exempt from the $50k fee. So I don't know, but I guess a company holding more than 50 would not be a small company.

    20. Re:Damages by Anonymous Coward · · Score: 0

      1). Exactly. What about making it law that in real time no party can spend more on lawyers than the other party. If one party spends more than the other and wants to keep it that way, they subside half of their additional costs to the other side till the case is over.

      2). The government pays for all legal costs always. Increase overall taxes to pay for this, we are all paying for it anyway.

    21. Re:Damages by zill · · Score: 1

      The transfer fee is only $50,000 for an eternity which is negligible. There's no need for licensing at all. Acme Corp can freely use all the patents from all its subsidiaries since there is no law stipulating that you must license a patent.

      Let me illustrate it with a housing example:
      -Living in my own house - legal
      -Living in a stranger's house - illegal, I'll be arrested and charged with b&e
      -Living in a house I paid for but under my brother's name - legal, as long as he agrees

      So the rule isn't "you can't live in someone else's house" (you can't violate someone else's patent), the rule is actually "you can live in someone else's house as long as they don't call the cops". Since the law can't force Acme 001 Inc to sue Acme Corp, Acme Corp can freely "violate" Acme 001's patent holdings.

    22. Re:Damages by rufty_tufty · · Score: 1

      you missed:
      5) Any company whose patent related gross revenue exceeds its non-patent related gross revenue will incur an additional tax
      You'd also catch them on
      4) Patent licensing requires public disclosure of full license costs, terms, and conditions
      because
      ACME Corp would have to license from ACME Subsidiary #000001 through ACME Subsidiary #999999. Once they are licensed for $1 a piece they should have a hard time in court when ACME Subsidiary #000003 sues small company for violation arguing that a license fee much larger than $1 was required/fair.

      --
      "The weirdest thing about a mind, is that every answer that you find, is the basis of a brand new cliche" -
    23. Re:Damages by dolmen.fr · · Score: 1

      I like that one!

    24. Re:Damages by zill · · Score: 1

      Licenses are not necessary, please see my response here.

    25. Re:Damages by Internetuser1248 · · Score: 1

      Its worse. Microsoft steals your work, you sue them, they spend 1M to crush you, and under Submitter's plan you would pay treble damages.

      I have a better solution that would solve this problem (and the general problem of $ = win that plagues the US justice system).

      Make a law that states that legal costs on both sides have to be equal. If one party can prove it cannot match the legal costs, the other party will have to cover them for the duration of the trial. Naturally the loser has to pay both parties costs at the end of the day. So if microsoft sued me for example, I could prove in court that I only have $94 in my bank account and a very small income. Microsoft would have the option of spending $94 prosecuting the suit, meaning its basically a coin flip as you can barely get a lawyer to pick up the phone for that. They would also have the option of spending x millions prosecuting, but they would have to pay 2(x million)-94 to do it, and then if they won I would be liable for that amount plus damages. They would know that legal expenditure on both sides would be equal and that due to this the case is likely to be decided on it's merits so they would only persue it if they were confident of winning. Likewise if I were to sue microsoft, I could spend $94 on a 5 minute legal consult, and then represent myself. Microsoft would get about 3 seconds of work out of their lawyers for that price and therefore would be forced to either not defend themselves, settle, or pay for me to have expensive lawyers too. If microsoft were confident they would win they would pay the money, and if they did win I would be screwed. If not they would settle. This is perfect and triple damages would be unneccesary, but not excluded. It would also have the added benefit that in legitimate cases where the verdict was uncertain, a drawn out process is risky for both parties and keeping the costs down would become a priority, so it might even help with the filibustering problem in some cases.

    26. Re:Damages by RenderSeven · · Score: 1

      I'll have to read it a few more times but I think I get it. Interesting idea but Im not convinced it cant be gamed against the little guys. Im also not sure it allows for a fair hearing on merits if the dispute is genuine, both for the small company and big company (giving small companies unfair advantage would be even worse than what we have now). But I do like you're line of thinking.

      Another approach might be to adopt some form of SLAPP legislation (see wikipedia) which can be invoked if a plaintiff or defendant can make a reasonable case that the other party is abusing the legal process with the primary intent to harass or outspend. I havent done a lot of research but I've heard cases that SLAPP has been very successful in protecting litigants from incurring obscene legal costs. The problem, as always, is getting a legislature to act against the interests of the legal and megacorp lobbies.

  2. Treble? by amicusNYCL · · Score: 4, Funny

    RICO calls for treble damages. I would have treble awards of costs and legal fees. If a patent holder sues another entity for patent violation and that suit fails, the plaintiff who brought the suit should pay treble damages to the defendant.

    I think that something far more bassic would work.

    --
    "Our two-party system is like a bowl of shit looking at itself in a mirror." - Lewis Black
    1. Re:Treble? by Qwertie · · Score: 3, Insightful

      Something far more basic would work. Ban software patents.

      Okay, not every tech lawsuit is about software. Or even about patents. But it would do a lot to reduce these risks and it's an easy change.

      P.S. Treble damages is a real legal term, believe it or not. Because "triple" would sound too ordinary?

    2. Re:Treble? by Anonymous Coward · · Score: 5, Funny

      I guess he didn't pitch it in a way that you'd get the joke.

    3. Re:Treble? by penix1 · · Score: 3, Insightful

      I'd go further than just software patents. Ban all method patents. That includes business methods, which is in just as bad a shape as software patents are.

      --
      This is a sig. This is only a sig. Had this been an actual sig you would have been informed where to tune for more sigs.
    4. Re:Treble? by Anonymous Coward · · Score: 5, Funny

      Sounds like you're settling an old score

    5. Re:Treble? by amicusNYCL · · Score: 4, Funny

      I don't like your tone.

      --
      "Our two-party system is like a bowl of shit looking at itself in a mirror." - Lewis Black
    6. Re:Treble? by aztracker1 · · Score: 1

      How about a "Capital Gains" type tax on patent licensing (including settlements) requiring any patent licensing income over 1 million/year by an organization/prson or subsidiaries is taxed at 75%. over 5 million at 90%

      --
      Michael J. Ryan - tracker1.info
    7. Re:Treble? by Anonymous Coward · · Score: 0

      I echo your discord: he's not being instrumental to the harmony of our concerted performance of a Slashdot opera.

    8. Re:Treble? by Anonymous Coward · · Score: 0

      Well, that speaks volumes.

    9. Re:Treble? by Anonymous Coward · · Score: 0

      I agree. Banning all method patents is the only way to kill the patent troll beast. My employer was actually bragging about this patent - System and method for the automated discovery of unknown unknowns.
      If you can base a patent on the babbling of the worst Secretary of Defense, then the patent system has gotten truly absurd.

    10. Re:Treble? by psxndc · · Score: 1

      So any new process that is invented - like something equivalent to the invention of the process to make steel - cannot be patented? Yeah, that seems like a great idea.

      --

      The emacs religion: to be saved, control excess.

    11. Re:Treble? by Anonymous Coward · · Score: 0

      Why? Does it strike a chord?

    12. Re:Treble? by Anonymous Coward · · Score: 0

      Oh this is just the same old song and dance.

    13. Re:Treble? by KingSkippus · · Score: 1

      Yeah, it does, actually. It's just too common that a process such as a new process to make steel is arrived at independently by multiple people and/or companies. Plus, a new process of making steel is something that is discovered, not something that is made. In my opinion, things that are discovered shouldn't be patentable. Thoughts and ideas should be freely sharable, period.

    14. Re:Treble? by VisceralLogic · · Score: 1

      It did fall kind of flat.

      --
      Stop! Dremel time!
    15. Re:Treble? by psxndc · · Score: 1

      By that argument, anything ever made was "discovered." I discovered that when I ran electricity through a filament, it lights up. And I discovered that I can encase it in glass.

      Agree to disagree.

      --

      The emacs religion: to be saved, control excess.

    16. Re:Treble? by KingSkippus · · Score: 1

      There's clearly a difference. Yes, you can discover that when electricity is run through a filament, it lights up. That means that if you want to run electricity through a filament to produce light, by gummy, have at it. Edison had a patent on a specific creation--his light bulb--but that doesn't mean that no one could run electricity through filaments or create other ways of creating light. His patent simply meant that no one else could legally copy his design.

    17. Re:Treble? by psxndc · · Score: 1

      No, same invention, different way of casting it. I've cast it as a method, you've cast it as an apparatus. It's the same invention though.

      And "copying" has nothing to do with patent infringement. If someone came up with the light bulb independently, they'd still infringe.

      --

      The emacs religion: to be saved, control excess.

    18. Re:Treble? by KingSkippus · · Score: 1

      I'm sorry it's so confusing. To me and most normal people, the difference is pretty obvious.

    19. Re:Treble? by Anonymous Coward · · Score: 0

      Actually, it does.

    20. Re:Treble? by psxndc · · Score: 1

      And I'm sorry it's so confusing for you. Legally, there is no difference.

      --

      The emacs religion: to be saved, control excess.

    21. Re:Treble? by KingSkippus · · Score: 1

      ...Which is BS, and why we are having so much trouble with patents killing innovation today. The legal system has become disconnected with reality and common sense, and most certainly has strayed from its original intention, to protect inventions, not ideas.

    22. Re:Treble? by Anonymous Coward · · Score: 0

      Please take this silly bullshit back to Reddit where it belongs.

    23. Re:Treble? by Anonymous Coward · · Score: 0

      http://en.wikipedia.org/wiki/Business_method_patent

    24. Re:Treble? by psxndc · · Score: 1

      I disagree that it's disconnected from reality and common sense. It's the same invention, we're just looking at it from different angles. You claim to want to protect inventions, but are drawing a very narrow definition of what is an invention (apparatus) and what is not (process).

      --

      The emacs religion: to be saved, control excess.

    25. Re:Treble? by KingSkippus · · Score: 1

      I'm not going to continue this argument, you're simply being facetious at this point. You can try to semantically twist and turn all you want, but in the real world, it's obvious what the difference between a discovery and an invention is. No amount of "agreeing to disagree" will change that, either. You can "agree to disagree" with something that is true, but that doesn't make the fact any less incontrovertible.

    26. Re:Treble? by psxndc · · Score: 1

      I'm actually not being facetious. So did Edison discover that running a current through a filament when encased in glass makes it glow or did he invent it? Seriously.

      --

      The emacs religion: to be saved, control excess.

    27. Re:Treble? by psxndc · · Score: 1

      By the way, you claim that Edison patented "his lightbulb." You assume he only had an appatatus claim. Just out of curiosity, would you change your opinion if one of the claims of his patent said "a method of producing light..." Choose your answer carefully.

      --

      The emacs religion: to be saved, control excess.

  3. So that's what you'd do . . . by Anonymous Coward · · Score: 0

    Ok, I'll let you do that. That's what I'll do!

  4. sounds reasonable to me by Anonymous Coward · · Score: 1

    I think the same should hold true for medical malpractice suites. I think that it's absurd that the physician (or his malpractice carrier) has to pay his legal fees regardless of whether he prevails or not.

    1. Re:sounds reasonable to me by Miamicanes · · Score: 4, Interesting

      It sounds like a great idea, but here's the problem: if there were one or more bona-fide legal issues that required a jury trial to decide, and losers had to pay the defendant's legal fees if they lost, the doctor's lawyers would move for summary judgment to dismiss without prejudice for lack of demonstrating the means to pay the doctor's legal fees if you were to lose. ("Without prejudice" means you could come back and file a new lawsuit someday if you manage to scrape up the money to post a bond sufficient to cover the doctor's potential legal expenses before the statute of limitations runs out).

      If you were lucky, you might be able to obtain the services of someone whose newly-invented role fell somewhere between bail bondsman and investor, who'd agree to underwrite your liability for the doctor's legal expenses in return for $10,000 up front and 70% of anything you were awarded.

      Patent-wise, it's even worse. Let's suppose you're sued for infringement by EvilMegacorp. The first thing they do is seek an injunction to make you stop allegedly infringing. The next thing they do is move for summary judgment to make the injunction permanent until you can demonstrate that you have the means to pay their legal fees if they win. Or, let's suppose you're an inventor who patents something, and EvilMegacorp blatantly infringes upon it. You file a lawsuit against them, and they pull the same stunt -- they certify to the judge that they've put $20 million in escrow to cover your legal fees if you win, and move for summary judgment to dismiss unless you can do the same.

      Put another way, lobbying for a change to make the loser pay is a dangerous strategy, because it ultimately gives large corporations with deep pockets yet another weapon to use against everyone else.

      A far better strategy would be to reform the way licensing itself works and come up with a fair framework for low-ceremony compulsory licensing at statutory rates that are high enough to encourage both the patent's owner and potential licensor to negotiate directly, but are ALSO aggregate among the holders of all patents. In other words, if you invent something and someone says you're infringing their patent, you could pay something like 70% of your gross revenue into escrow, then walk away and let everyone who thinks they have a patent stake in it fight over the funds among themselves at their own expense without involving YOU... and any funds that are unclaimed after 18 years would automatically revert to you. If your product allegedly makes use of 490 patents, the owners of those 490 patents can duke it out against each other to claim their share.

    2. Re:sounds reasonable to me by Pseudonym · · Score: 2

      A far better strategy would be to reform the way licensing itself works and come up with a fair framework for low-ceremony compulsory licensing at statutory rates that are high enough to encourage both the patent's owner and potential licensor to negotiate directly, but are ALSO aggregate among the holders of all patents.

      Good plan! After all, ASCAP is extremely fair both to artists and to venues.

      --
      sub f{($f)=@_;print"$f(q{$f});";}f(q{sub f{($f)=@_;print"$f(q{$f});";}f});
    3. Re:sounds reasonable to me by Miamicanes · · Score: 1

      Yes... and no. ASCAP (and Harry Fox) are efficient clearinghouses for businesses that use music, but they're also kind of like a protection racket if you're an independent musician who likes to perform in public for free. Still, they're probably a net improvement over the status quo compared to the legal minefield that exists today.

      Of course, in an ideal world, the patent system would work as constitutionally intended, and uspto.gov would be like a catalog and clearinghouse for useful things to license & make your products better, instead of a trap where inventors are warned to never, EVER look lest it be introduced in court as evidence against them someday.

  5. What happened to innocent ? by morbingoodkid · · Score: 5, Interesting

    Very good idea. Another problem that nobody seem to notice is that the patent system is the wrong way arround. In normal criminal cases it is up to the prosecution to prove that the defendant perpetrated a crime. Inocent until proven guilty.

    The patent system works the other way around it is up to the defendant to prove that they have not violated a patent. Guilty until proven innocent.

    Do not really make sense to me. How about you ?

    1. Re:What happened to innocent ? by Grond · · Score: 3, Informative

      The patent system works the other way around it is up to the defendant to prove that they have not violated a patent. Guilty until proven innocent.

      That's not accurate. Patents are presumed valid by statute, but they aren't presumed infringed. The plaintiff still has to make out a prima facie case of patent infringement, which the defendant can then rebut or defend against in some other way (e.g. by showing that the patent is invalid or unenforceable).

    2. Re:What happened to innocent ? by Anonymous Coward · · Score: 0

      Do you not understand the difference between civil and criminal law? Or are you just trolling those who do?

      I think that's criminal to bankrupt a small inventor only because you have enough power withstand a patent suit. And this simple possibility doesn't help a bit to encourage innovation.

    3. Re:What happened to innocent ? by gmhowell · · Score: 1

      What you may 'think' and 'feel' is irrelevant to what laws are on which set of books. This isn't a question of guilt or innocence, it is a question of infringing or not. AC above you made a valid, if slightly trollish, point.

      --
      Jesus was all right but his disciples were thick and ordinary. -John Lennon
    4. Re:What happened to innocent ? by Zaelath · · Score: 1

      That's because it's civil law, not criminal law. It's not just the "patent system" that works this way, it's all civil torts (IANAL).

    5. Re:What happened to innocent ? by N7DR · · Score: 3, Informative

      Another problem that nobody seem to notice is that the patent system is the wrong way arround. In normal criminal cases it is up to the prosecution to prove that the defendant perpetrated a crime. Inocent until proven guilty.

      The patent system works the other way around it is up to the defendant to prove that they have not violated a patent. Guilty until proven innocent.

      That is simply incorrect. The plaintiff has to convince the jury that every limitation in the claim(s) in question is infringed by the defendant. In a typical claim this means that perhaps half a dozen requirements must be shown to be met, and the burden of proof is on the plaintiff to show that every one of those limitations is met. The standard by which the jury decides the case is the "preponderance of the evidence".

      And each individual limitation will typically have several debatable words in it, so the plaintiff also has to convince the judge and/or the jury that those words mean what they say they mean (usually, but not always, that is decided by a judge).

      If the plaintiff fails to make a convincing case at any point in this sequence, then the patent is not infringed.

      (Invalidity is another matter entirely. It's a different standard -- clear and convincing evidence -- and so it's less common for a patent is judged invalid, although it certainly does happen.)

    6. Re:What happened to innocent ? by user+flynn · · Score: 1

      If the plaintiff fails to make a convincing case at any point in this sequence, then the patent is not infringed.

      Additionally, if the plaintiff has only 10+ million dollars, going up against a billion+ dollar politically connected corporation, the plaintiff can be run into the ground by the legal team of the billion+ dollar corporation.

          A relative of mine was given the ultimatum: settle with us (a couple million to the corporation that violated their patents), or we will drag you through the courts until you are homeless and broke.

      --
      In the distance you hear an ominous moo.
    7. Re:What happened to innocent ? by Anonymous Coward · · Score: 0

      URNAL...there is no such thing as "Innocence" in the court of law, it's guilty or not guilty. Innocence is but a dream of kittens.

    8. Re:What happened to innocent ? by StripedCow · · Score: 1

      The whole patent system is backwards. It was cooked up with too little thought, and now WE have to prove that it is broken.

      --
      If Pandora's box is destined to be opened, *I* want to be the one to open it.
    9. Re:What happened to innocent ? by Anonymous Coward · · Score: 0

      "Innocent until proven guilty" is Westminster law; "guilty until proven innocent" is Napoleonic law. France is a civilised country and yet their legal system is quite unsurprisingly entirely Napoleonic. I realise that citizens of the United States frequently take offence when people fail to speak English and do things their way but fortunately it's a big world. Even in British derived nations like Australia and the USA, some codes are Napoleonic. Traffic law, for example. If you get a speeding ticket there is an assumption of guilt and you are expected to prove you didn't offend - and the officers and bureaucrats get quite snarky if you try. I once produced travel documents proving I was out of the country at the time of the alleged offence and they were quite unhappy when I refused to nominate another victim, probably because their paper train doesn't consider the possibility of no conviction.

  6. Rah Rah! by Anonymous Coward · · Score: 0

    Let's rush to implement a half-baked scheme which will probably create as many problems as it solves as soon as possible.
    Yes the patent system is broken, but with results like paying some bootlegger in China three times their court costs is just adding insult to injury.

    1. Re:Rah Rah! by Iniamyen · · Score: 1

      The bootlegger in China would probably lose a court case... 1/10

  7. Nice idea... Won't happen. by Antony+T+Curtis · · Score: 4, Insightful

    FWIW, this is my personal opinion:

    It would never happen. Today's purpose of patents is different from when the concept was created. The use today is to prevent a small or single owner nimble upstart from usurping the business of an incumbent elephant and potentially gutting the cash cow of it's shareholders.

    The aforementioned incumbents would fight tooth and nail, with large campaign contributions and gifts, to prevent such a law from ever passing.

    --
    No sig. Move along - nothing to see here.
    1. Re:Nice idea... Won't happen. by UltimaBuddy · · Score: 4, Insightful

      The end result is that the innovators move elsewhere.

    2. Re:Nice idea... Won't happen. by the+eric+conspiracy · · Score: 5, Insightful

      Many patent trolls are in fact nimble upstarts.

      The answer is much simpler. Get rid of business process and software patents. They are proving to be a detriment to the software industry.

    3. Re:Nice idea... Won't happen. by Peristaltic · · Score: 3, Interesting

      The end result is that the innovators move elsewhere.

      Where?

    4. Re:Nice idea... Won't happen. by Anonymous Coward · · Score: 0

      It would never happen. Today's purpose of patents is different from when the concept was created. The use today is to prevent a small or single owner nimble upstart from usurping the business of an incumbent elephant and potentially gutting the cash cow of it's shareholders.

      You are very much romanticizing the past. The use of patents to consolidate monopoly power goes back hundreds of years. Today software engineers are complaining about trivial patents, a hundred years ago it was electrical/radio engineers, and a hundred years before that it was mechanical engineers.

    5. Re:Nice idea... Won't happen. by Anonymous Coward · · Score: 0

      The software & mobile phone industry is going to pick up and move to Elbonia any day now, I just know it!

    6. Re:Nice idea... Won't happen. by jmorris42 · · Score: 1

      > Many patent trolls are in fact nimble upstarts.

      Yea. That is the problem with my idea.

      I was thinking that if Party A sues Party B alleging 1B in damages and loses then a countersuit by B for the same Billion should be considered reasonable and what a court should default to unless some pretty unusual circumstances are involved. It would at least make people stop shooting for the moon and asking for insane amounts if they thought that if they lose that number would come back and bite em.

      But you are right, patent trolls don't have anything to countersue for and if such a system were setup it would become commonplace to spin out a paper entity to hold the patent being used in lawfare. Even another idea spotted here to punish by shortening or even voiding a patent used for ill purpose wouldn't really do much. All most patents are aquired for is either defense (and thus never used in a court) or to attack with and if you lose one you have (or buy up) another ten and keep milking it.

      We have to stop issuing so many patents. Not just stop issuing them for software, for the obvious, etc. That is low hanging fruit. We have to stop handing out so many period. So how about limit it to say a thousand a year? This way there would be fierce competition for the limited resource, perhaps even bid some or all of em out and raise revenue! With such a small number any professional could be legally expected to know about ones reading on their field so while few in number they could actually be enforced.

      --
      Democrat delenda est
    7. Re:Nice idea... Won't happen. by UltimaBuddy · · Score: 1

      To where they can easily evade the restrictive patents owned by others and still profit from their 'ingenuity'.

      Why do you think the majority of the movie industry is located in Hollywood?
      Because they wanted to put as much distance as possible between them and the Motion Picture Patents Company / Edison Trust, located in New Jersey.

    8. Re:Nice idea... Won't happen. by Duhavid · · Score: 1

      ..."countersuit by B for the same Billion should be considered reasonable and what a court should default to unless some pretty unusual circumstances are involved..."

      They would then just spin up a small business, sell the patent to them, fund them with just enough to make it thru the trial. Lose? Nothing lost, small company defaults. Win? Small business merges/is squired by original company.

      --
      emt 377 emt 4
    9. Re:Nice idea... Won't happen. by Anonymous Coward · · Score: 0

      just means startups have to fight on two fronts; the patent trolls trying to make a buck, and the elephants trying to protect their business

    10. Re:Nice idea... Won't happen. by NormalVisual · · Score: 1

      Thanks for the info re: the MPPC. I find it more than a little ironic that the modern film industry, who does everything in their power to prevent copyright infringement, has its genesis (in part) in the desire to commit patent infringement.

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
    11. Re:Nice idea... Won't happen. by hacksoncode · · Score: 1
      So, in this day of actuators and microcontrollers, how would you actually do this without getting rid of *all* patents?

      It's become trivially easy to implement *any* part of any mechanism in software.

      It's easy to make platitudes about this stuff... actually coming up with a rigorous legal definition that would rule out the things you like while still allowing the "good" patents is really hard, if not impossible.

      Of course, perhaps all patents have outlived their usefulness... but that's a different discussion.

    12. Re:Nice idea... Won't happen. by whisper_jeff · · Score: 1

      Get rid of business process and software patents. They are proving to be a detriment to the software industry.

      Get rid of automotive patents. They are proving to be a detriment to the auto industry.
      Shall I continue or was that car analogy sufficient to communicate the point already? The patents exist in all industries and they manage to function just fine. The solution is simple - license the patent or innovate around the patent. Other industries do it so why should the software industry be different?

    13. Re:Nice idea... Won't happen. by Anonymous Coward · · Score: 0

      The software industry actually is different and other patents also cause trouble, but that's not what is important.

      Patents are an insult to humanity, get rid of them! Ownership of ideas amounts to a tyranny over human behaviour and creativity.

    14. Re:Nice idea... Won't happen. by Anonymous Coward · · Score: 0

      But they are a boon to the existing well-established businesses. They prevent new competition from entering their market. The rich and powerful love protectionism, so this is not going away, basically ever.

    15. Re:Nice idea... Won't happen. by sosume · · Score: 1

      I'm not sure that the best way to stop an overly complicated system with too many loopholes is by adding more rules.

    16. Re:Nice idea... Won't happen. by rufty_tufty · · Score: 2, Informative

      I find it interesting - given you mention the history of patents - that one of the first outcomes of a rigorous patent system was to break up the guilds. Knowledge that had been held secret for centuries was suddenly in the public domain. Give it twenty years or so and everyone could use the secrets of the guild.
      Now you have the reverse situation where patents are protecting the technology guilds - but at least what they are doing is not secret, and never will be. is that perhaps enough, patents have now become a system to turn trade secrets into public knowledge and they still do that job well. Is that enough and maybe we now need to invent a new system to break up the new guilds?

      I do wonder if the simplest fix to the system is to say that a company cannot own a patent, only a person.
      A company can license a patent from a person, but that is the limit.
      Now you'd have to also have some law that prevented the company from putting into the employment contract a set of default license terms that screwed the person over.
      I think you'd also want to limit the number of patents any one person can hold - that would get rid of the frivolous patents if you could only hold 100 patents over the course of your life you really would only submit the really good ones. Again that would be open to abuse when I claim by 12 year old child has 50 patents to his name, but you get the idea...

      --
      "The weirdest thing about a mind, is that every answer that you find, is the basis of a brand new cliche" -
    17. Re:Nice idea... Won't happen. by the+eric+conspiracy · · Score: 1

      The software industry is different because all of its patents are in fact algorithms implemented on calculating machines. As such I think they should be classified as mathematics which is in fact unpatentable under current law.

    18. Re:Nice idea... Won't happen. by graphius · · Score: 1

      I do wonder if the simplest fix to the system is to say that a company cannot own a patent, only a person.
      A company can license a patent from a person, but that is the limit.

      I had this idea a while ago. and I really think it is the easiest way forward. The idea that corporations have the same rights as individuals (without the consequences...) has run its course, and it is proving to be a drain on society.

      Disclaimer, I am studying for my business administration degree, but I do not always side with corporations...

  8. Bravo!! by CPNABEND · · Score: 1

    This is all not only out of control, but INSANE! This needs to be fixed somehow, but I have little faith in the American government to even understand the problem.

    --
    My wife doesn't listen to me either...
    1. Re:Bravo!! by Hatta · · Score: 1

      They understand it all too well. It's just that from their perspective it's not a problem.

      --
      Give me Classic Slashdot or give me death!
  9. Yes by jroyale · · Score: 0

    make them pay damages... but also, reduce the length of their patent. Whhoooppps, bogus law suit, that's move the termination of your patent from 2017 to 2014.

  10. Small patent holders by Anonymous Coward · · Score: 4, Insightful

    Just thinking about this, it might feed the patent trolls and mostly hurt small to medium sized companies.

    If I'm a little guy and hold a patent that, say, Apple violates. I sue Apple and they simply say they spent a few million. It's a small amount for them but if I lose, I am bankrupt. So, it doesn't help the little guy.

    So, my approach would be to "sell" my patent to a company I just formed for a couple of hundred bucks onllne and that corporate entity sues the big guy. If I win, that company has some scheme to pay me back the award. If I lose, I fold the temporary company and I'm out of pocket a few hundred bucks. Pretty close to the model used by patent trolls.

    So, I can't see how this might be different...

  11. moove by ozduo · · Score: 1

    Transfer your entities to my Planet where lawyers are shot on sight, all digital media is free, monogomy is outlawed and drinking to excess is mandatory. Bring cash!

    --
    I got to the chocolate box before you, that's why the hard ones have teeth marks.
    1. Re:moove by nschubach · · Score: 1

      Bring cash!

      Are you trying to artificially inflate your monetary system with foreign money? Don't accept it. Make your own.

      --
      Every time I start to have faith in humanity, I ruin it by driving to work between 7 and 8 am.
  12. Won't work. by Caerdwyn · · Score: 5, Insightful

    Scenario: a "little guy" gets a patent. A "big guy" violates it. The little guy takes the big guy to court, and the big guy throws an entire legal department at the little guy, and essentially buys the result. The little guy then has to pay treble damages of the expenses of that great big huge legal department, and goes out of business because of the punitive award. As part of the punitive award as the little guy goes under, the ownership of the little guy's patent then goes to the big guy.

    Want a patent held by a little guy? Willfully violate it, then bleed the little guy dry with protracted court proceedings. You'll get the patent through bankruptcy. And if the little guy doesn't defend his patent... free IP!

    Think it through. "Automatic" damages means you create a system that can easily be gamed by armies of lawyers far better at manipulating the system they crafted than you, and ties the hands of the judge to prevent it.

    --
    Everybody gets what the majority deserves.
    1. Re:Won't work. by Anonymous Coward · · Score: 0

      I disagree. If you are a little guy, under the current system, you can still be bled dry. If the little guy loses, it pays treble damages, and goes bankrupt (the corporation, not the person/small corporation owner). That's really not different from the current system. The big guy, on the other hand, won't just go bankrupt. They have to actually pay out.

    2. Re:Won't work. by Anonymous Coward · · Score: 0

      Eh.
       
      Scenario A: It discourages patent suits. I'm okay with that result.
       
      Scenario B:If the little guy's suit has merit, he can probably find a lawyer who'll take a slightly larger fee based off of the winnings.
       
      In truth, the suggested solution is really a workaround to the fact that patents in their current form are given too easily, too numerous, and too long-lasting. The problem isn't just a corrupted patent office, but that politicians brag about how much intellectual property contributes to the economy rather than how much money it sucks from everyone's wallets. Money that could be used to buy -- and encourage the creation of -- things that take productive work to make, rather than are the result of a couple of people spending a lot of time figuring out how to game the USPTO into giving them rights that have no value to anyone outside of this artificial construct of patents.
       
      A large part of the problem is that politicians, and most people, do not question the legitimacy of patents at all. If the question of whether patents are spurring innovation ever came up -- and I doubt it does -- they wouldn't actually contemplate the question and instead respond 'Yes.' in knee-jerk fashion.
       
      From another side of it, I have a very smart software engineer friend who hears me complain about patents and thinks they don't really matter since (according to her) most software innovation is done in academic circles. She must assume that somehow that makes it so that all these unnecessary patents cannot affect people's lives, even though I've told her that they're a huge risk to me professionally. She is, of course, an academic, and if this is how other talented people in academia think, then they're helping continue this terrible system through their inaction (because they are, in fact, responsible for much of the genuine innovation in software, and so they have a fair amount of power).

    3. Re:Won't work. by gutnor · · Score: 1

      They would probably try to settle, and normally the amount should not be too miserable. As much as big companies can be evil, at the end of the day, they run a business - what they can buy for 1M they won't sue for 2M.

      That works in the other direction aswell. Except for patent troll, there is very little to make buy shutting down a small business when it is cheaper to buy it. Again, that does not work with patent troll.

      That is not good of course, that is a travesti of the original goal of patents in the first place, at best, the patent fail to protect the inventor, at worse they scare them off. Patents have jumped the shark - the cheapest way would be to ditch them for 50/100 years and see if trade secrets are really still a problem.

    4. Re:Won't work. by w_dragon · · Score: 2

      Actual court cases prove you incorrect. If you were right patent trolls wouldn't be an issue. See NTP vs RIM or i4i vs Microsoft. Simply having more money isn't going to win you any trial where a layer could retire on 1% of the potential payout.

    5. Re:Won't work. by Anonymous Coward · · Score: 0
      I think trade secrets would still be a problem in specific areas where the means of production are what are patented and are controlled by the owner/inventor (i.e. pharmaceuticals and chemical processing/refining). They are unlikely to still be a problem where the consumer good (or part of it) is the patented object.

      However that was never the major reason for patents, they were meant as a motivation for investment in research and development. That's still a valid reason in sectors where the barriers to entry from research costs are high compared to capital costs of production and marketing (i.e. pharmaceuticals), but software isn't one of those areas (and neither are most areas with business patents). Honestly, we know more about economics now than they did in the 1780s so we should be able to write patent criteria that reflect current economic understanding.

  13. The little guy. by Hatta · · Score: 4, Insightful

    Suppose if I'm a small independent inventor with a patent, and Conglom-O misappropriates my patent. I only have kilobucks to spend on a lawyer, while Conglom-O has megabucks. Predictably, their expensive lawyers beat my bargain basement representation. Now I'm on the hook for 3 times what they paid for their defense? How is that any better for me than the abolition of patents?

    --
    Give me Classic Slashdot or give me death!
    1. Re:The little guy. by tomhath · · Score: 1

      Suppose if I'm a small independent inventor with a patent, and Conglom-O misappropriates my patent.

      Well, that's basically the opposite of this article (which is patent trolls crushing you for misappropriating their patent). But I kind of agree, maybe it's time to abolish all patents, not just software. Then the little guy who wants to start a company can go head-to-head with the likes of Oracle - whether he's the inventor with a new idea or a start-up with a better implementation of an API.

    2. Re:The little guy. by Overzeetop · · Score: 3, Interesting

      This is where the lawyers win. There will be law firms who will examine your case and, if it looks 80-90% winnable, will take it on commission - say 60% of the final award. You'll probably be on the hook for fixed percentage of the costs plus expenses in the case of a loss. The lawyers either cover their costs or win big, the little guy comes out even in the best scenario, and the megabucks write it off on the balance sheet and design around your patent.

      --
      Is it just my observation, or are there way too many stupid people in the world?
    3. Re:The little guy. by NormalVisual · · Score: 1

      Then the little guy who wants to start a company can go head-to-head with the likes of Oracle

      But then there's the problem of having no protection at all. Let's say you develop a spiffy new widget that solves a need in a genuinely novel way, but don't really have the capital to manufacture/distribute it. You talk to a manufacturer who passes on the idea, and then the next thing you know, your widget is available to the masses at Wal-Mart, made by an arm's-length affiliate of the original manufacturer, and soon after that by a multitude of manufacturers. It'll be impossible to prove breach of contract, and you get to sit by and watch as the widget sells by the million. After that experience you won't be nearly as eager to create something else novel that might benefit society, and this is the specific concern that copyrights/patents are supposed to address. I don't know that there's a good answer to the problem.

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
    4. Re:The little guy. by w_dragon · · Score: 1

      Explain i4i vs Microsoft then.

    5. Re:The little guy. by MechaStreisand · · Score: 2

      Sure there is. Treat little guys different, legally, than big corporations. And if corporations ever try to use a little guy as a proxy to get around that, punish them with public executions of whoever made that decision, and also whoever was in effective charge of the company (such that simply hiring a figurehead CEO wouldn't dodge the death penalty for whoever's actually running the company).

      It won't happen, but it's nice to think about, and would solve that problem pretty handily.

      --
      Disclaimer: IANAL. This post is, however, legal advice, and creates an attorney-client relationship.
    6. Re:The little guy. by tomhath · · Score: 1

      I'll try to make my sarcasm more obvious next time...

    7. Re:The little guy. by cpt+kangarooski · · Score: 1

      First, there are ethics rules as to the size of a contingency fee. Usually they top out at around 1/3d, more or less. However, if the case is lost, the client owes the attorney nothing. (Otherwise, what would be the point?)

      Second, you need to be the plaintiff, which may not be the case depending on how the matter is structured.

      Third, now you're just relying on the still-finite resources of the lawyers. A big enough opponent can still conduct the outspending strategy successfully. (Because while a lawyer handles a contingency case and awaits a possible big award, he still has bills to pay, and is not spending time on as many cases that can pay sooner). The book (and movie) 'A Civil Action' shows an example of plaintiff's attorneys going broke against a big opponent.

      --
      -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
    8. Re:The little guy. by NormalVisual · · Score: 1

      Sorry about that - I've seen other folks earnestly arguing exactly what you were saying. After re-reading your post the sarcasm comes through loud and clear. :-)

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
    9. Re:The little guy. by PSVMOrnot · · Score: 1

      The big problem in lawsuits seems to be the big guys throwing money at the problem till they win. What about if there was some sort of requirement for equal representation funding?

      Perhaps the money from both sides is pooled, and then split evenly to provide representation for both.

    10. Re:The little guy. by Anonymous Coward · · Score: 0

      1. Wait until Conglom-O has a shareholder meeting and the entire board and upper management is there.
      2. Kill them.
      3. ????
      4. Profit? No, but you'll enjoy sweet revenge.

    11. Re:The little guy. by Anonymous Coward · · Score: 0

      How is being a small independent innovator with no patent better than on with a patent. At least with a patent you have a chance of defending your work.

  14. Fix... by maz2331 · · Score: 1

    We REALLY need to set up single-payer legal representation, even before looking at it for medical care.

    1. Re:Fix... by slew · · Score: 1

      Single payer legal is probably even worse than single payer medical. The biggest problems with single payer medical is manyfold, but mostly over-use/fraud and rationing.

      Even though perhaps some wacko wants every diagnostic test known for imaginary conditions or perhaps someone helps a doctor friend (or some friendly doctor that is giving kickbacks) to overuse (or just overbill) some unneeded or fictitious medical procedure, there is a quantifiable physical upper limit on the amount of overuse/fraud one individual patient can abuse and ways to limit this (although perhaps unpopular). This make it easy to apply statistical law-of-large numbers to the problem of wacko patients and money grubbing doctors (assume there is some distribution) and at least come of with a workable solution as many countries have. On the legal front, there is probably no practical upper limit (lawyer can sue other lawyers, but perhaps there is some universal physics limit of physical paper and motions that can be field per nanosecond).

      Then there's the rationing side. Although it may not seem like it, there's probably a limit of legal resources and just like doctors, not all lawyers are interchangeable. Who gets the good lawyers? Who decided what cases are not worth defending? With medical at least there are scientific boards that are supposed to look at medical outcomes. Who would do the lawyer rationing?

      Perhaps we can make legal coverage somewhat like worker's comp insurance. You pay into the system depending on your rating, and you are somewhat covered for legal expenses to address some of the short comings of the current system (people object to this type of price based rationing scheme in the general individual medical insurance premium world, but apparently tolerate this in the business world). But those that are dig down in that area tend to see that most worker's comp insurance schemes are full of fraud and waste and are sink-holes of money as well that mostly serves to enrich the "tool-makers" the worker's comp medical provider organizations and the shady businesses that contract with them, and not as much for the workers.

      Maybe there's some way to do all this, but it isn't apparent in any of the institutions that we currently have set up to date.

  15. How about this solution. by Anonymous Coward · · Score: 0

    All "software" patents are null and void, everyone who owns one can shove it back into the math-book from whence it came.

    Simple and cheap.

  16. Treble fees isn't quite right by Anonymous Coward · · Score: 0

    So that is an interesting idea, but treble the defense costs isn't quite enough. They need to determine upfront how much they are suing for. Then, if they lose - they pay the legal costs, plus what they were suing for (as recompense for the annoyance they caused and any possible injunctions, loss of business etc.). Oracle sues Google for a billion dollars? Then many of the patents get thrown out and the copyright part of the case is incredibly dubious (patenting the structure and sequence of an API, LOL)? Well, they may just owe that billion to Google - plus the legal fees.

  17. Writing laws is like writing software by Anonymous Coward · · Score: 2, Insightful

    It's easy to write something that works correctly for the situation you have in mind; the challenge is to make sure that it also works correctly in all the other situations that may arise in practice. Whoever suggested the law described in the summary is, I'm sure, not a good lawyer or a good software engineer,

  18. wait what? by Anonymous Coward · · Score: 0

    This has to be the dumbest solution I have ever heard.You just said the companies are small, so how will the fight the case to begin with? It reminds me of the cost to become a minister in the church of subgenius, if you don't get eternal salvation after death you get TRIPLE your money back. Just like how in this scenario this if you win you get so much more than you put in, the problem lies in how will you win if you have no resources.

    I propose 10000x your legal costs after winning surely that will give you the INITIAL capitol to defend yourself. /sarcasm

  19. Too complicated by king+neckbeard · · Score: 4, Insightful

    Why not just get rid of patents altogether, or at least software and business method patents?

    --
    This is my signature. There are many like it, but this one is mine.
  20. problems are caused by the patents on mathematics by Anonymous Coward · · Score: 0

    As any undergrad learns, all software is mathematics.

    Patents on software should be explicitly prohibited, as they are a branch of Mathematics which is already prohibited from patents.

  21. So basically make it suicide by nedlohs · · Score: 3, Insightful

    for the little guy who invented something, say a more efficient engine, to sue the huge corporation that just copies their invention.

    Since if he loses he gets hit with 3x the costs of the defendant's super expensive lawyers if he happens to get an idiot jury or made some technical error somewhere.

    I have a simpler solution - only grant patents for things that are actually inventions. "A button which when clicked buys the product for the user using the credit card they entered previously and the shipping address they entered previously" is not an invention, for eample.

  22. The FIX by andydread · · Score: 5, Interesting

    - Limit all patents to 5 years
    - Abolish UI/Gesture and all software patents
    - Abolish lifeform and seed patents.

    1. Re:The FIX by Anonymous Coward · · Score: 0

      Or just abolish patents in general... The real innovative stuff is kept secret anyways.

    2. Re:The FIX by Anonymous Coward · · Score: 1

      - Limit all patents to 1 to 15 years. Based on peer review of degree of innovation and level of research required.
      - Place restrictions on licensing fees. Also based on patent's degree of innovation and amount of research.

    3. Re:The FIX by Grond · · Score: 1

      - Limit all patents to 5 years

      Startups often take at least that long to get going, whereas established companies already have the funding and infrastructure in place to move products to market. If the patent term is too short then patents have no value for startups but retain value for established companies.

      And what about patents for things like pharmaceuticals and other products that have long regulatory lead times? What if the patent covers a technology that needs a breakthrough in another area in order to be commercially viable?

      Abolish UI/Gesture and all software patents

      First, come up with a definition of "software patent" that is neither overinclusive nor underinclusive, unambiguous, and cannot easily be gamed. Oh, and if you're going to abolish all of the existing software patents then you'll have to pay the patent owners reasonable compensation under the Fifth Amendment.

      Abolish lifeform and seed patents.

      This seems like a bit of a non sequitur. Anyway, you have the same Fifth Amendment problem.

    4. Re:The FIX by mark-t · · Score: 1

      Oh, and if you're going to abolish all of the existing software patents then you'll have to pay the patent owners reasonable compensation under the Fifth Amendment

      It's worth pointing out that slave owners received no compensation when slavery was no longer legal. Why should patent holders?

    5. Re:The FIX by Grond · · Score: 1

      Because slavery was abolished at the constitutional level. Prior laws abolishing slavery typically did so gradually in ways that avoided takings claims. When Congress abolished slavery outright in the District of Columbia in 1862, it compensated slaveowners loyal to the Union. See George Rutherglen, State Action, Private Action, and the Thirteenth Amendment , 94 Va. L. Rev. 1367, 1373 (2008).

      I suppose a takings claim could be avoided if software patents were abolished by constitutional amendment, but that's incredibly unlikely.

    6. Re:The FIX by Anonymous Coward · · Score: 0

      Robert Kearns might disagree.

    7. Re:The FIX by Anonymous Coward · · Score: 0

      Oh, and if you're going to abolish all of the existing software patents then you'll have to pay the patent owners reasonable compensation under the Fifth Amendment

      Allocate $100 million from state funds to be split by interested parties. All interested parties are responsible (together) for figuring out how the money should be split up. The split should occur within 5 years. No litigation allowed. Should be fun to watch.

    8. Re:The FIX by cpt+kangarooski · · Score: 1

      I would first argue that it's not a taking, as patents are not property. But there are some strategies besides that. Personally, I'd suggest a combination of statutory licensing and rendering certain claims for infringement non-actionable.

      --
      -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
    9. Re:The FIX by scsirob · · Score: 1

      And make sure patents are lifted as soon as ownership transfers to some other company or entity. Patents are meant to protect YOUR work, they are not meant as an object of trade or to be collected by Mafia-like organizations to be used as ammunition.

      --
      To Terminate, or not to Terminate, that's the question - SCSIROB
    10. Re:The FIX by Rumtis · · Score: 1

      How about...
      - Have a exponentially increasing fees by the Patent Office as companies apply for / renew / buy patents.

      This would:
      (1) Give the Patent Office either (a) more money to hire patient reviewers or (b) cut down on the backlog of patents pending.
      (2) It would force the patent trolls and big companies to look at their patent portfolio and only keep what they feel is important. If these biggies develop something new that they want to patent, then they either need to pay the extra fees to keep it or jettison / sell a lower producing patent to keep status quo.
      (3) The small guy could still get in their small handful of patent(s) for relatively cheap.

  23. I have patented a method for delivering a horse's by Ranger · · Score: 1

    head into the bed of each member of the patent mafia. Just license the technology and I'll make them an offer they can't refuse.

    --
    "You'll get nothing, and you'll like it!"
  24. An ass backwards solution by wbr1 · · Score: 4, Insightful

    What you are proposing is simply putting a band-aid on a bullet wound.
    You have (ineffectively) treated a symptom of a broken system, and as others have pointed out, left the system ripe for abuse from the privileged still.
    The system needs to be rewritten from the ground up. Unfortunately this will never happen. The broken patent system is just one symptom of a far larger disease, and that is the continued concentration of wealth and power in corporations. That concentration is little different than the robber barons, or lords over feudal serfs abusing their position. Until the people put down their bread, and turn off their circuses, these abuses will continue.
    Spread the word, proclaim intelligently the injustice of the current system to all who can and will hear, write your congress critters, bitch and moan if you have to as well, but stand up too, and encourage all you know to stand up as well. Otherwise eventually you will have no legs to stand on, because those have been patented or outsourced too.

    --
    Silence is a state of mime.
    1. Re:An ass backwards solution by Mindcontrolled · · Score: 1

      It's by large not the patent system that is broken in the US, that just needs some minor fixes. What absolutely is broken, and what incurs monstrous costs for the little guys in the game, is the litigation system. Lawyer and litigation costs need to be limited. I've seen enough cases of single inventors going after multinational corporations over their patents - and succesfully. Here in Europe, though, where the costs of a lawsuit won't send you into bankruptcy.

      --
      Ubi solitudinem faciunt, pacem appellant.
  25. The problem of Civil Disobedience by Anonymous Coward · · Score: 0

    The first thought to enter my mind was "civil disobedience". However this is one of many problems in our current society where CD is ineffective.

    In the classic case of CD, the barrier is low. Black? Sit on the bus. Yes, you'll get beaten by cops and KKK, maybe even killed; but all you have to do is make the decision and you can participate.

    CD against ummm... CDs isn't too hard either. The music industry knows this. People keep downloading, they keep losing money, and so on and so forth. The problem will eventually solve itself. Once again, the barrier to entry is low.

    This brings us to patents. In most cases, long before you are marketing a product, you have taken VC money. You're part of the system and even if you tried to disobey they'd have you off the board of directors in no time flat.

    In short, the "mafia" does not derive much revenue from people in a position to disobey. If you manage to commercialize something, or even just use something, they can crush you with a patent and they have nothing to lose and everything to gain from said crushing.

  26. End all patents & copyrights by Anonymous Coward · · Score: 0

    And you will see these scumbag companies face real competition.

    Bottom line, that is what needs to be done. Abolish the IP cartel so we can have real markets, not restricted ones.

    1. Re:End all patents & copyrights by Anonymous Coward · · Score: 0

      Eliminate all IP, and the IP market devolves into the skilled labor market. If you can't eliminate trade secrecy (and you probably can't) then many software packages would only be available to thosse capable of hiring the skilled labor to produce them. A firm isn't going to release their source simply because you abolished IP. If you're suggesting that they should be required to do that, then you're Libertarianism is just as Statist as our copyright regime.

      In other words, your solution is "simple and wrong".

  27. Oracle & Google over Java by bmullan · · Score: 1

    Oracle can't innovate into the future so they are going to be Patent Trolls.. how pitiful Ellison.

  28. Doing it wrong by Anonymous Coward · · Score: 0

    You're doing it wrong if you lose a patent suit. Either your patent was wrong in the first place (no research done for prior art?) or you sued the wrong target who didn't use your patented device thing. Unlike copyright, patents are almost black and white in decision. Given you have a company big enough to even apply for patents (which in itself costs a fair amount), you should be able to afford lawyers for defending your patents, and if your patents are correct, you should be damn well winning. There's nothing even big companies can do.

    Problem is trying to figure out if they really did violate your patent; easy enough when you have a physical device in your hands to dissect it to your wishes, but software is protected in all sorts of ways (try to prove a big company's violating your patent when it's running only on their servers, and where reverse engineering attempts can be called "hacking" which is criminal offense around here) that makes this next to impossible. THAT is why software patents are a bad idea, it just doesn't work in that world.

    Otherwise, we absolutely need patents. It works, and it'll continue to work for all the things patents work for, which is most anything except software.

  29. This leaves the little guy just as vulnerable by TheObruniSpeaks · · Score: 2

    In your world the big guys are even more free to abuse the little guy; now the big guys are instead free to infringe on the little guy's patents without compunction, because the little guy dare not sue for infringement. God knows the big guy will spend a lot to defeat your infringement claim...and now not only is your case hard to win, if you lose, you are completely screwed. Almost everything I see on slashdot about fixing the patent system would actually make it worse, particularly for the little guy people here so love to defend. There are certainly problems, but they take a hell of a lot more thought than you're putting in to fix them.

  30. Standard Reaction Form Letter by Anonymous Coward · · Score: 1

    You appear to be proposing a
      [ ] Technical
      [X] Legislative
      [ ] Vigilante

    approach to patent reform.

    Sorry, but your ideas won't work.
    One or more of the following may apply: ...

    Ok, I don't have the patience for this anymore. Someone else fill out the standard form.

  31. This idea is worse than the status quo by Balial · · Score: 1

    If the little guy sues he's liable for triple damages? Which is probably a drop in the ocean for the big guy? This is meant to improve the situation how?

  32. There is no problem with the patent system by Anonymous Coward · · Score: 0

    For those that can afford to buy the legislators, the patent system is working perfectly. Unless you have hundreds of millions to lobby and support the legislators, you will never change the patent system - it is working just as the incumbents require.

  33. Congratulations by taustin · · Score: 2

    You've just made it profitable for big companies with on-staff lawyers to completely stop innovating. Instead, they can just see what other, smaller companies are doing, and copy it, patent or not. Because no small company will ever dare sue for patent infringement again.

  34. what about this? by znrt · · Score: 1

    1. WE declare patents null.
    2. we refuse to pay for patented stuf
    3. we exercise our natural right to use any stuff available for free happily disregarding any patent.
    3.1. a simple citizen doing 3 should have nothing or little to fear
    3.2. a startup doing 3 is surely screwed, but screw them. get a job, invest in something else, whatever but just stop whining, this is war.
    3.3. a corporation doing 3 will enoy big time litigating with other corporations for the monopoly of products nobody will buy as result of 2. be my guest.

    1. Re:what about this? by Mitsoid · · Score: 1

      If we chose to not use technology that uses patents, the PIAA would claim it's because of malicious downgraders acting the part of terrorists and trying to destroy our economy,. Fox news would declare a war on the downgraders and bills would pass through congress to penalize those who do so. It would also add in levies on electricity bills that goes 66% to the holders of any patents!

  35. An alternative by Anonymous Coward · · Score: 1

    ... is simply to abolish the entire patent system.

    So, to get money from your 'great idea', you publish the plans/theory/math/computer code/whatever in a technical magazine, get paid for the article, and move on to your next great idea.

    USMegacorp will scan the magazines, see your article, and perhaps start manufacturing your WonderWigets, but so will ForeignCorpClonersInc.

    The end result is that since anybody can use your idea, no one company is going to make obscene profits, because any other company can make the same thing and under-price them (to the limits of costs-of-production).

    USMegaCorp could try traditional anti-competitive techniques -- sending out physically-large individuals with metal pipes to various competing factories and saying (with an appropriate East Coast accent), "Say, Mister. That's a real nice factory you got there. Be a shame if anything was to happen to it."

    But that method doesn't work well with innumerable ideas and innumerable factories -- China has a lot of real estate to cover.

    The speed of innovation would increase, due to low-cost/free access to other peoples' ideas ("standing on the shoulders of giants"), and due to inventors quickly moving on to develop their next idea.

    The dis-advantage of this is that rampant technological advance is not always good -- humans' power usually outstrips their wisdom and morality.

    Hmmm. Okay, never mind, just leave the patent system the way it is now.

  36. How about simply enforcing the existing law? by Anonymous Coward · · Score: 1

    How about simply enforcing the existing law?

    Namely, that patents must not be granted for ideas that are obvious to a practitioner with ordinary skill in the field.

    The utter abandonment of that standard is a leading cause (although not the sole cause) of our patent mess.

    The obviousness test is still the law of the land in the US. The US judicial branch has been derelict in their duty to uphold this law.

  37. That $500 Billion Figure by Grond · · Score: 1

    The $500 billion figure has been cited a few times, including by Drew Curtis in his astonishingly poorly-informed talk about patent trolls. The event study methodology used in the Bessen et al. study has been criticized as likely to overestimate the costs attributed to patent trolls. See Glynn S. Lunney, Jr., On the Continuing Misuse of Event Studies: The Example of Bessen and Meurer, 16 J. Intell. Prop. L. 35 (2008) (responding to similar event studies done by Bessen and Meurer when they wrote their book Patent Failure).

  38. RICO could have never been passed in 21st century by k6mfw · · Score: 1

    It seems to me back in 20th century there were people in positions of power that put service above self that passed RICO, and also other laws and programs which helped the little guy. And some them little guys used some of these benefits to become big guys. Now I don't think such could ever be passed, and what does exists is being torn down or when new laws passed it helps only the big guys. Though I was thinking back then the "big guys" would shoot it out with each other (i.e. mob battles with tommy guns), and at times little guys get caught in crossfire. Nowadays the big guys "slug it out" in the courts, and the little guys indirectly either pay more for products or earn less from their work.

    --
    mfwright@batnet.com
  39. Treble? by Anonymous Coward · · Score: 0

    WTF is a "treble reward"?

  40. If can't be erased, force it only to small amounts by cribera · · Score: 1

    That way youd prevent huge companies to abuse small players. The patent trial could have a max amount of payment for the losing side. Lets say only 50 k U$. That way, huge corporations would be discouraged to hire an army of lawyers. Apart from bringing more fairness, that way software money wont go to lawyers. Lawyers are getting wealth as parasytes, from other people's work, and that must be stopped, if you want the society to keep evolving. Money should go to the guys who produce, not to the guys who litigate.

  41. Does not reduce exposure to patent litigation by Morgaine · · Score: 3, Interesting

    You're right for more than just the reason you give. TFA also fails to understand that the patent system is structured to encourage litigation and to benefit the legal profession on both sides of a patent conflict. TFA's suggestion would do nothing to change this.

    Ideally software and business method patents should disappear altogether, but if one is seeking alternatives then the first goal should be to limit the audience exposed to patent litigation.

    That can be done in a number of ways, one being to exclude private citizens and corporations below a certain turnover from patent liability altogether.

    This would encourage the creation of many small competing businesses and would be hard for megacorps to argue against, because all politicians pay lip service to supporting small businesses. Also, the turnover cap automatically ensures that competing corps cannot grow to the size of the patent holder, so arguments against it are really quite weak.

    As you point out, the incumbents would still fight tooth and nail against it, but they would be on much weaker ground than today, and most importantly, lawyers would be presented with a much reduced population of potential victims.

    Note also that the many calls to limit patent duration drastically, eg. to 5 years, would have exactly the same effect of reducing the number of people exposed to patent litigation. That idea is good too, but it doesn't level the playing field as well as a turnover cap would do. Perhaps both approaches should be used together.

    --
    "The question of whether machines can think is no more interesting than [] whether submarines can swim" - Dijkstra
    1. Re:Does not reduce exposure to patent litigation by JaredOfEuropa · · Score: 2

      Limiting patent duration is a great idea (as is having a turnover cap), but there are plenty of cases where patents of a longer duration should be granted. I'd be in favour of a system where patent applications are examined for "triviality", i.e. how hard/expensive was it to come up with the invention being patented. Trivial crap like 1-click shopping then gets 3 years; the inventions that actually took some effort or thinking get perhaps 6 or 10 years, while stuff that takes hundreds of millions of dollars to develop (like medicine) would get 20.

      One of the main issues with the patent system is that a lot of stuff that should not be patentable passes muster at the patent office anyway. Unfortunately that is not an easy issue to fix, but having such patents be assigned to the lowest tier in a variable-duration scheme instead would at least mitigate the effects.

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
  42. abolish patents and copywrong by johnwerneken · · Score: 1

    How about abolish the whole idea of intellectual property? Got an idea and can commercialize it first, good for you. If not to either, you lose. Most law is to avoid private violence; I don't see that as a problem here.

    1. Re:abolish patents and copywrong by Anonymous Coward · · Score: 0

      Intellectual property consists of three parts:

      1) Patens on ideas
      2) Copyright on work
      3) Protection of identity by trademark

      In my opinion 1) should be abolished, 2) should be restricted to commercial use and 3) only applies to identity, not words.

  43. viral anti-patent foundation by Richard_J_N · · Score: 1

    What we need is a viral anti-patent system, designed to be stronger than the GPL with the intention of destroying the patent system together. Like OIN (the open invention network), but with real teeth. Here's how it would work:

    0. Philosophy: intellectual monopolies are completely wrong, opposed to the scientific method, economically evil, and morally unjustified. Nobody can own an idea, and everyone stands on the shoulders of giants.

    1. Create a "public patent foundation" (PPF) similar to the FSF.

    2. Anyone with an invention can grant their idea (or patent) to the PPF. Anyone may license a PPF patent, royalty free, provided they are not involved in offensive patent litigation.

    3. The PPF makes its patents available to anyone for the purposes of counter-suit.
    No matter who you are, if you are the victim of a patent lawsuit, then (unless you fired first), the PPF will lend any of its patents to you for you to counter-sue the aggressor..

    4. If the PPF wins a lawsuit, the settlement terms would include all patents of the loser being shared with the PPF.

    5. The result is that the PPF would eventually hold a large majority of the patents worldwide. It would allow anyone to use these, royalty free, but would demand that users of PPF patents covenant never to sue in a patent lawsuit.

    6. As a pragmatic (but non principled exception), we might exclude pharma-patents from this.

  44. Re:problems are caused by the patents on mathemati by NormalVisual · · Score: 1

    I agree that software patents are ridiculous, but this is an issue that extends to patents outside the software world.

    --
    Please stand clear of the doors, por favor mantenganse alejado de las puertas
  45. What Exactly Can I Do Again? by Anonymous Coward · · Score: 0

    The title of this post suggests there's something specific *I* can do to break up the "Patent Mafia", then goes on to say "Simple, you just implement this new law" (the content of which I don't particularly agree with, btw) and presto! Maybe you have the Elder Wand or something but I don't know how to just enact laws. Point me to a petition and maybe I'd sign it or an initiative and I'd vote for it (actually, probably not because I don't like your idea). Or just retitle your article. Here are some ideas:

    I Am High

    How To Kill Small Business

    A Brand New Way For Your Startup To Fail

  46. Perjury penalties for filing w/o good prior art by Anonymous Coward · · Score: 0

    Yes, I agree that software/process patents are a bad idea. But getting rid of them ain't gonna happen any time soon.

    To even the scales a bit, I would also like to see that the original patent filer (attorney or corporate officer) swear under penalty of perjury that they've carefully sought out prior art. This would mean that someone who hasn't done a good job looking for examples of prior art could go to court/jail.

    Nothing focuses the mind so much...

  47. I'll take a stab at this game... by CrazyDuke · · Score: 2

    How about: the amount one party spends in legal fees must be matched at some ratio and paid to the other party, regardless of guilt, to be itemized and balanced by the end of every month.

    For a 1:1 example:
    Joe Blow, owner of Joe's Cups of Joe of Skid Row, OK gets sued by Joe Mamma, Inc., where Joe Mamma dumps $200K every month into lawyer fees, legal research, expert witnesses, court filings, etc... and Joe only spends $5K to retain Jimmy Shyster of Shyster, Benedict, and Arnold. Joe Blow would end up having to match 5K to Joe Mamma, Inc and Joe Mamma, Inc. would have to reimburse Joe Blow for $200K.

    That fraking lawsuit had better be worth it to Joe Mamma, Inc.

    Stopping the inevitable Hollywood accounting would be a major issue, of course. Would anyone like to pull that idea apart any further?

    --
    Any sufficiently advanced influence is indistinguishable from control.
  48. What about the largest disease? by hackingbear · · Score: 1

    The broken patent system is just one symptom of a far larger disease, and that is the continued concentration of wealth and power in corporations.

    Agree but the continued concentration of wealth and power in corporations is just one symptom of a far larger disease, and that is the human greeds.

    Agree? But human greed is just one symptom of a far larger disease, and that is the built-in competitiveness of biological beings.

    You would likely agree with that too, but the built-in competitiveness of biological beings is just a symptom of a far larger disease, and that is shortage of resources.

    Now go fix those!

    Now, back to the broken patent system, consider the flip side. If you are a little inventor, you are most likely wishing some giant corps violate your patent because then armies of commission-based lawyer will help you sue the rich guys for free and you will more likely become another rich guy from suing the large corps than productizing your patent with probably little real market value. I'm not saying that's good, but that's another side of the story.

    1. Re:What about the largest disease? by wbr1 · · Score: 1

      Agree but the continued concentration of wealth and power in corporations is just one symptom of a far larger disease, and that is the human greeds.

      Agree? But human greed is just one symptom of a far larger disease, and that is the built-in competitiveness of biological beings.

      You would likely agree with that too, but the built-in competitiveness of biological beings is just a symptom of a far larger disease, and that is shortage of resources.

      Now go fix those!

      Now, back to the broken patent system, consider the flip side. If you are a little inventor, you are most likely wishing some giant corps violate your patent because then armies of commission-based lawyer will help you sue the rich guys for free and you will more likely become another rich guy from suing the large corps than productizing your patent with probably little real market value. I'm not saying that's good, but that's another side of the story.

      The shortage of resources is a bullcrap reason. In a truly global economy, we -should- be able to distribute resources to where everyone got what was needed and a share of excess not saveable for hard times. I do agree that human greed is at the root, because of our largely poor ability to judge true risk, and poor ability to make real long term plans (both intertwined). This results in the "this is mine, I'm going to get mine attitude", that drives huge parts of the problem.

      --
      Silence is a state of mime.
    2. Re:What about the largest disease? by Anonymous Coward · · Score: 0

      There are plenty of resources for everyone in the world if you evenly distributed them? That sure is a happy comforting thought, but I'd love to see that study. And that's only considering a snapshot of time. As time goes on, population is growing. Fast. The earth has a finite set of resources, it's not growing. You might say - hey we'll get more efficient (and i mean, i just made that compost heap), but there is an upper bound on efficiency, and your not going to be making that efficiency curve exponential...so then you just have to start to use less...

      If you distribute all the resources evenly today, you will have to constantly be taking away resources to feed all the new people. The world population (at it's current growth rate, according to some website i just found) will double by 2067. Which means that by then, you should be prepared to use half as many resources (disregarding the efficiency improvements, which are not negligible, but eventually will be outpaced by growth - remember those related rates problem in calc?). At what point do your children's/grandchildren's family not have enough to keep eating?

  49. Oh, COBOL Guy again. by Animats · · Score: 1

    It's the COBOL conversion guy and academic hanger-on, Vivek Wadhwa, mouthing off again. He just wants to see his name in print. It's sometimes claimed he was on the faculty at Harvard (he's not, he was just an RA) and now he has some vague affiliation with Stanford he's touting.

  50. 2 big lies block patent reform. by dweller_below · · Score: 4, Informative
    The patent debate has fallen victim to 2 big lies:
    • 1) Patents are good. More patents are more good.
    • 2) Patents belong to the patent holder.

    Patents are monopolies. Years ago, they were monopolies of action. Modern software and business method patents are monopolies of action, expression, and speech.

    Monopolies are expensive. They damage free markets. They always drive up the cost of goods and services. They are taxes on market places. We have forgotten that patents are monopolies. Somehow the patent lawyers have convinced us that patents are a measure of innovation. This great lie has blinded us to the fact that patents actually measure the decay and destruction of free markets.

    The second lie is actually more pernicious, since it blocks our pathway forward. Patents actually belong to society, not the patent holder. Patents are restrictions imposed on EVERYBODY BUT the patent holder. Patents are voluntarily imposed on a society, by that society, for the good of the society. If a patent was the property of the patent holder, it would be worthless, since no patent holder has the ability to enforce a patent. Only society has the ability to enforce a patent.

    Since patents belong to society, then they can (and ultimately must) be managed for the good of society.

    Once we dispel these 2 grand deceptions, the way forward is fairly clear:

    • First, we must stop the hemorrhaging. Our society can't tolerate a patent office that produces enormous numbers of crappy patents. The damage to our economy is literally in the trillions of dollars. A limited nuclear exchange on US soil would be less expensive. We must shutdown the patent office until we can figure out how to restructure it to produce limited numbers of high quality patents.
    • Second, we must produce a method to cheaply dispose all our toxic, crap patents. Litigating them would destroy us. We need a cheaper way to get rid of them. The best would be an executive order (or legislative act) disabling every patent granted (or in process) for the last 20 years.

    I suspect we can ultimately fix almost all our patent problems by returning the patent office to central funding. Funding the patent office from patent fees has got to be our greatest mistake.

    Miles

    1. Re:2 big lies block patent reform. by labnet · · Score: 2

      Some great points. Here are some more.
      - patent owners must be commercially utilizing their patent to keep it. (within 4 years of patent application)
      - software and business process should not be patentable (ie 1 click)
      - accidental infringement be not initially punishable (ie stop it, then you have the choice to stop unsing or litigate, but no backdated punitive action)
      - the bar for novelty to receive a patent be way higher than it is now.
      - patent application / renewal fees be based on number of patents held
      eg x = v * n(n+1)/2 where v = the base patent cost.
      Lets say v = $100
      1 Patent = $100/annum to maintain
      2 Patents = $300/annum to maintain
      10 Patents = $5.5k/annum to maintain
      100 Patents = $500k/annum to maintain
      1000 Patents = $50M/annum to maintain
      10k Patents = $5Billion/annum to maintain

      This would force very large companies / trolls to only keep their best patents and toss out the dross polluting the patent system.
      You would need rules to stop companies spawning sub related companies to get around the intent.

      --
      46137
    2. Re:2 big lies block patent reform. by jeti · · Score: 1

      Your last idea is too easy to game. The companies would just "sell" the patents to shell companies, but would receive a share of everything earned through litigation. Apparently IP Ventures is already doing this and set up between 1600 and 1800 such companies.

      Source: http://www.thisamericanlife.org/radio-archives/episode/441/when-patents-attack

    3. Re:2 big lies block patent reform. by labnet · · Score: 1

      Your last idea is too easy to game. The companies would just "sell" the patents to shell companies, but would receive a share of everything earned through litigation. Apparently IP Ventures is already doing this and set up between 1600 and 1800 such companies.

      Source: http://www.thisamericanlife.org/radio-archives/episode/441/when-patents-attack

      Which is why I said you would need rules to stop this, which could be done by grouping common major share holders, treating subsiduaries as the same entity, treating licences to the IP as common ownership in some cases. ie make model, try break it, refine model etc. until intent is satisfied.

      --
      46137
    4. Re:2 big lies block patent reform. by Anonymous Coward · · Score: 0

      As I would like to start my own business in the future I take issue with several of your listed solutions:

      - patent owners must be commercially utilizing their patent to keep it. (within 4 years of patent application)

      No way. Most tech startups take between two and three years before they make their first sale and you're telling me that you want to remove a startup's only source of income once sales start to pick up? And lets not forget that sometimes it takes years to get a patent approved (this depends on the country) but in US once its approved you have 15 years (or was it 20?) from the date of filing before it expires. It's also worth mentioning that biomedical companies can take up to a decade or more before they have an FDA-approved product. This solution of yours would completely kill innovation from startups which ironically is the very thing you want to promote by having patents.

      - software and business process should not be patentable (ie 1 click)

      Agreed.

      - accidental infringement be not initially punishable (ie stop it, then you have the choice to stop unsing or litigate, but no backdated punitive action)

      Patents only give the holder the right to stop others from using their technology/idea/whatever. If it takes the holder ten years to notice that someone was violating a patent (inadvertently or not) all the holder can do is a) license it so that the person can continue to do business as usual or b) prevent the person from continuing to profit from it. I've never heard of "backdated punitive action", what patent trolls do (if they win the case) is get money from licensing as the companies they sue are generally interested in continuing the production and/or sales of whatever product they have that's violating the patent.

      - the bar for novelty to receive a patent be way higher than it is now.

      While I agree with this on the software and business side of things, on the optical instruments side I've only heard that it's damn near impossible to get a patent.

      - patent application / renewal fees be based on number of patents held
      eg x = v * n(n+1)/2 where v = the base patent cost.

      While another user said that this was easy to game and I agree, what about research institutes? In some of the bigger ones most non-government funding is from either private investors or patent licensing. As most of this money goes back to the public in the form of scientific publications, I can tell you right now that a research institute with a few hundred patents will really feel the weight of losing a million in funding every year.

      Apart from the abolishment of business and software patents, all of your other recommended solutions seem to only cause more problems than they solve.

    5. Re:2 big lies block patent reform. by speedplane · · Score: 2

      Patents are not monopolies. If you patent light bulbs and then I patent halogen light bulbs, neither of us can make halogen light bulbs without the other's permission. Patents do not give you a right to do anything, they only give you the right to stop others from doing something.

      --
      Fast Federal Court and I.T.C. updates
    6. Re:2 big lies block patent reform. by StripedCow · · Score: 1

      A limited nuclear exchange on US soil would be less expensive.

      Especially if that exchange would happen in the vicinity of, say, the patent office.

      --
      If Pandora's box is destined to be opened, *I* want to be the one to open it.
    7. Re:2 big lies block patent reform. by Courageous · · Score: 1

      I'm not super in-favor of our patent system either. I'm just wondering if you realize what you are saying. "A legislative act disabling every patent granted for the last 20 years" is simply throwing out every patent ever granted. More or less. Keep in mind that patents don't last very long.

      I actually think we should cut out all software and process patents permanently.

      Drug patents, we need to keep. This is because of the huge $1B+ FDA qualifications and so forth.

      And so forth.

      C//

    8. Re:2 big lies block patent reform. by dweller_below · · Score: 1

      .. I suspect we can ultimately fix almost all our patent problems by returning the patent office to central funding. Funding the patent office from patent fees has got to be our greatest mistake.

      I have spent an instructive afternoon reviewing the nature of US Patent Office Funding:

      My initial impression that there was a 'greatest funding mistake' is way too optimistic. There is just no bottom to the Patent's office barrel of broken funding bits. But, let me list just a few:

      • * Congress loves to steal the Patent office fees to fund other stuff.
      • * Page 37 of the budget: "..More than half of all patent fee collections are from issue and maintenance fees, which essentially subsidize examination activities." They charge a small fee to file, and a much larger fee once your patent is granted. The ratio is about 3 to 1. Roughly 1/3 of all patent applications are granted. So, inherent in the design is a perverse financial incentive to grant patents regardless of the merits.
      • * Page 12 of the budget: Currently they are backing up patent applications much faster than they clear them. 506924 patents filed last year. 669625 backlogged patents. So, they are currently trying to clear 1,176,549 patents using about 6600 examiners (178 patents per examiner per year.)
      • * Page 60 of the budget: "Gap Assessment: Meeting this commitment assumes efficiency improvements brought about by reengineering many USPTO management and operational processes (e.g., the patent examination process) and systems, and hiring about 3,000 patent examiners in the two-year period FY 2012 and FY 2013 (including examiners for Three-Track Examination)." So, the plan is to streamline the process even more and hire many more inexperienced patent examiners. Yea! More crap patents!

      So, we have a monstrous machine for issuing patents. It has to issue patents to stay alive. It is currently in severe pain because it can't issue patents fast enough. We need to 'fix' the situation by issuing patents faster.

      Seems like the real fix would be:

      • * Collect most of the money up front.
      • * Force simpler patent applications
      • * Say no a lot more often.
      • * And slap any silly congresscritter that thinks this should be a money-making operation.

      Miles

    9. Re:2 big lies block patent reform. by Anonymous Coward · · Score: 0

      So patents are even more disruptive to a market than a monopoly. At least a monopoly allows the possibility of a single supplier. Patents eventually guarantee that there are no possible suppliers.

      I suspect that by the time we struggle out the far end of this mess, we will have new metaphors for disruption and evil manipulation.

      Miles

    10. Re:2 big lies block patent reform. by dweller_below · · Score: 1

      I'm not super in-favor of our patent system either. I'm just wondering if you realize what you are saying. "A legislative act disabling every patent granted for the last 20 years" is simply throwing out every patent ever granted. More or less. Keep in mind that patents don't last very long.

      I'm allowing the immense scope of the problem to intimidate me.

      I read the US Patent Office 2013 budget proposal: www.uspto.gov/about/stratplan/budget/fy13pbr.pdf I didn't believe what it said, so then I read the Patent Office fee structure: http://www.gpo.gov/fdsys/pkg/PLAW-112publ29/content-detail.html (see section 11).

      The fee structure is all wrong. When you submit a patent application, you pay a small fee and cause the Patent Office to do a very expensive process. The process is documented on page 58 of the Budget Proposal. The Patent Office only collects more money if it approves the patent.

      They discuss this problem on page 37: "..More than half of all patent fee collections are from issue and maintenance fees, which essentially subsidize examination activities."

      The fee structure demands that REGARDLESS OF MERIT, the patent office has to approve about 1/3 of all patents submitted to it.

      The Budget Proposal repeatedly discusses the problem of improving the quality of approved patents, but none of their proposals will cause businesses to submit better patent applications. Instead, they propose streamlining the evaluation process and hiring more patent examiners. See the Gap Assessment on Page 60.

      So, we have this immense machine. It is central to our economy. It can only survive by approving patents. It is currently in pain because it can't approve patents fast enough. It is currently creating about 200,000 patents per year. You have to go to court to find out if a patent is valid, and what it covers. It costs about $20,000,000 to go to court. 200,000 * $20,000,000 = $4,000,000,000,000 (4 Trillion dollars) just in court costs. AND that is just this years patents.

      When I think about giving this kind of money and influence to patent lawyers, I'm scared shitless.

      That is why I think it would be better to just disable all existing patents and start over.

      Miles

    11. Re:2 big lies block patent reform. by Courageous · · Score: 1

      Well, sometimes we can think up things that are "better" that are nevertheless unfeasible and even possibly ethically dubious. Disabling "all"
        patents would put every major drug manufacturer out of business. Software companies, on the other hand, wouldn't even blink.

      One reason I'm against software patents is that copyrights cover software companies adequately.

  51. Alternatively by Jens+Egon · · Score: 2

    What about allowing either of the parties in a lawsuit to claim that the other is atempting to abuse it's monetary clout to 'buy' justice.

    If the court agrees, the big player gets to pay the little guys costs along with their own. Even if they win!

  52. Not a Mafia, but a Cartel (coming soon) by mutewinter · · Score: 2

    Here is my take on it, and this applies very specifically to the mobile area.

    Over a period of time the patent disputes between Google, Microsoft, Apple, Samsung, and the other big players will be settled. Whether through fees or you-use-ours-we-use-yours agreements, the battles will end. Then what we will have is a true cartel through which any outside party wishing to build and sell a legal mobile device must pass through. This could either mean very big per device license fees, obstructive licensing agreements, or outright market exclusion.

    What I fear most is not the death of outside innovation in mobile but the Frankenstein chimera of a law that bought off lawmakers and lobbyists create to "reform" this problem.

  53. Reverse onus is true of process patents by Geof · · Score: 3, Insightful

    This is absolutely correct for process patents. This is a requirements of the 1994 TRIPs (Trade-Related Aspects of Intellectual Property Rights) treaty. Here is the text of Article 34:

    1. For the purposes of civil proceedings in respect of the infringement of the rights of the owner referred to in paragraph 1(b) of Article 28, if the subject matter of a patent is a process for obtaining a product, the judicial authorities shall have the authority to order the defendant to prove that the process to obtain an identical product is different from the patented process. Therefore, Members shall provide, in at least one of the following circumstances, that any identical product when produced without the consent of the patent owner shall, in the absence of proof to the contrary, be deemed to have been obtained by the patented process:

    (a) if the product obtained by the patented process is new;

    (b) if there is a substantial likelihood that the identical product was made by the process and the owner of the patent has been unable through reasonable efforts to determine the process actually used.

    2. Any Member shall be free to provide that the burden of proof indicated in paragraph 1 shall be on the alleged infringer only if the condition referred to in subparagraph (a) is fulfilled or only if the condition referred to in subparagraph (b) is fulfilled.

    3. In the adduction of proof to the contrary, the legitimate interests of defendants in protecting their manufacturing and business secrets shall be taken into account.

    Whether this applies to software patents I am not sure (IANAL). As business process patents, it may, though it's not clear to me what the "product" would be. In any case, this is clearly the direction in which the law has been moving.

    Ironically, by the way, negotiation that resulted in TRIPs was initiated by developing countries who found their economic development was being retarded by patents held by developed countries. Once the process started, however, it was hijacked by an unholy alliance of the pharmaceutical and entertainment industries. Poor countries were then effectively forced to join by developed countries, who withdrew from GATT leaving a choice between losing access to western markets and enacting onerous patent and copyright laws. Because of the impact on the cost of drugs for poor people, patents are a life-and-death issue. IP regulations, meanwhile, are expensive to implement, particularly in countries that lack the legal expertise:

    the US Agency for International Development (USAID) now spends around a quarter of its annual budget on legal and regulatory training, including technical assistance from the US Patent and Trademark Office (USPTO), to help bring domestic legislation into compliance with TRIPs, including assessments of draft laws and recommendations regarding existing laws. (Christopher May and Susan K. Sell, Intellectual Property Rights: A Critical History, 2006

  54. Wrong approach by WOOFYGOOFY · · Score: 3, Insightful
    The problem is that patents should not be applied to software. Software patents are actually patents on ideas... the patent covers some high level algorithm . Algorithms are not patentable in theory, but patent lawyers and the courts are ignoring that.

    Software is already fully protected by copyright. That's enough IP to motivate people to write software and to prevent people from ripping off your code..

    There is no "problem" except the will on the part of a certain court- the Court Of Appeals for the Federal Circuit (CAFC), IP lawyers, corporations and IP maximalists to subvert the patent system to their personal benefit .

    It's really nothing more than an agreed-upon defiance of the meaning of very clear law, society's best interests and the express wishes of the vast vast vast majority of software engineers who are allegedly the "beneficiaries" of the system.

    Software patents are bad law. IP lawyers are perfectly well aware of this fact which is why they expressly exclude legal arguments and algorithms for tax avoidance from being patentable- they're not going to have done to them what they've done to us.

    Either the law will change of the inevitable consequences of the law will collapse the entire system of software creation in the US and anywhere else software patents are permitted, and by collapse I mean monopolist prices accompanied by a lack of innovation, along with a defection of creative types from the field.

    If you want to get activist about things, then refuse to sell software in the US. Set up a company in France or the EU and sell only into non-software patent jurisdictions.

    If enough of us do that, it will be game over for the lawyers since it will then be completely indisputable that software patents are in fact retarding innovation and driving creators OUT of the US- something the US could not bear the thought of since it's so contrary to our idea of our country.

  55. How about this: by Anonymous Coward · · Score: 1

    Patents are non assignable. You invent it, it's yours, for the duration of the patent. Only way they swap ownership is through your will, and cannot be left to a company. If you work for someone when you get your patent, they get a life of the patent license to use it. Any other licenses must deal with the original inventor. If you don't want to take a license at a fair and reasonable rate, you have two steps to follow. Request re-exam of the patent by submitting one set of prior art that you claim overcomes the patent. You are responsible for paying the cost of the re-exam (patent examiners don't work for free). You get one crack at this, so get your art straight before you submit. If the patent survives this, it is assumed valid for the next stage. Round two has you attempting to show that you don't infringe the patent. The plantiff indicates to the court the maximum damages they are seeking. the maximum legal budgets the two sides can each use can be no more than 10% of that amount. Sued for a million $? you can spend no more than 100K to try to fight that off. A billion? 100 million is the upper bounds.

  56. NOT broken at all.... by Anonymous Coward · · Score: 0

    Stupid idea, for a start the patent system actually works 99% of the time and benefits the consumer 99% of the time too.

    ALL electronics is patent encumbered, from design of the ICs, fabrication of the ICs, circuit design, software, etc etc, and yet with all of this I can buy a DVD player for less than $30, where as my first one cost closer to $1000.

    It is the same for computers, even though the number of patents the manufacturer has embedded into the computer (agains chips etc etc etc) in real terms the
    price of computers has plummeted. I spent $1000 on a TRS-80 Model 1 with 16K ram and then spent another $480 getting an additional 32K fitted to it. No hard drives, cassette tape only, but it played the expended version of Asylum :-). All that took about 25% of my net years income (earning just over $8k pa), now I am making over 60k and the MacBook Air I bought for my partner cost $1600, in real terms about 1/8th the cost and it does a hell of a lot more.

    The same applies for TV, Microwave, CD players, medical devices, communications, transport, etc etc etc etc.

    The problem is, when patents work (i.e. 99% of the time), no one says anything, no one hears anything and the world just keep turning.
    When they don't work the problem is in the media for weeks or perhaps months with a new variation on the world is doomed in each and every telling.

    That does not make the system broken, it makes peoples understanding broken.

    1. Re:NOT broken at all.... by Courageous · · Score: 1

      While patents may have a great deal of benefit in many of their use cases, software/process patents are an abortion that needs to be flushed down the toilet.

  57. Patent costs need a sliding scale by dballanc · · Score: 1

    Aside from the absurd patents, like software that need to go away completely, the fees and the total number of patents held by an organization should be linked to the number of full time, non-contract employees. The implementation would need appropriate loop holes checks, and heavy fines for trying to subvert the system.

    A huge company with many workers should be allowed an appropriately large number of patents. They should also have to pay top dollar to keep them, with the price per patent going up considerably each with each new patent. A smaller company can only hold a few (bye-bye patent holding troll companies), but the fees should be in line with what a smaller company that actually -needs- patent protection to get off the ground can actually afford.

    I'd also like to see published licensing rate formulas required in the patent where everyone pays using the same rate formulates when utilizing the holders patent, and the holder may not refuse to license a patent at those rates. The rate formula is part of the submitted patent application, and can be grounds for refusal of the patent.

    Now decrease protection time to something reasonable like 5 years I think things might get better.

  58. I say we drop asteroids on all their heads by Anonymous Coward · · Score: 0

    Does that make me important enough to pass the infamous slash-dot moderator barrier?

    I doubt it.

    How does this goofball rate a post?

  59. And when the little guy sues Apple what then? by __aaltlg1547 · · Score: 1

    Apple defends it by putting their expensive suits on it and soon racks up $100k in legal fees, so they threaten the little guy that if he doesn't drop the suit, he could lose $300k. He can't afford to lose $300k and Apple has better lawyers.

  60. Oh NO! by Errol+backfiring · · Score: 1

    So if you are a lawyer, you could work for either side and always win? If you don't win the case, you can take a percentage of the damages? Off course your contract would state that you would never participate in the losses of the case. In countries where "no cure, no pay" is allowed for lawyers (which is totally insane), this only makes matters worse.

    --
    Nae king! Nae laird! Nae yurrupiean pressedent! We willna be fooled again!
  61. Make the patent-office pay for invalid patents! by Anonymous Coward · · Score: 0

    This way they would have to make way more prior art research and surley there would be way less patents of also way higher quality! .. in the end, the patent office merely exists to check for 'prior art', but what they do is check for other patents .. and they forget some othere little sources of innovation, e.g. like open source, science fiction, or the internet.
    (for me it's even criminal that the patent office does approve patents without checking all those sources of existing wisdom..)

  62. Patent-officers should require a technical degree! by Anonymous Coward · · Score: 0

    .. like in Europe. In Europ patent-officers are required to have a university master's degree (or equivalent) in physics, chemists, informatics or whatever, and after that they study basics law as additional degree (something equal to bachelor). .. in your place, patent-officers are only lawyers that know shit about the technics behind the patents .. thats a huge source for wrongly approved patents .. and in the end should also be made illegal as it hurts billions of people who just want to do their job and be innovative ..

  63. Re:I have patented a method for delivering a horse by Mindcontrolled · · Score: 1

    Go ahead, I need something for the barbecue anyway.

    Signed,
    a patent engineer.

    --
    Ubi solitudinem faciunt, pacem appellant.
  64. Better plan by Roger+W+Moore · · Score: 4, Insightful

    No, the only plan I can come up with is to sell your patent to a troll

    How about just getting rid of software patents? No lawyers, no courts, can't stop innovative startups etc. Large corporations work around the patents to implement the same functionality in any case (or just ignore them if they think they can out spend and crush you). Since they fail so spectacularly in their stated aims unless we feel a need to provide jobs for lawyers it's clear they should simply not exist.

    1. Re:Better plan by surd1618 · · Score: 1

      I think that's too laissez faire. I mean, all justice proceeds down from the holy almighty Freedom Of the Market, but...nevermind, I can't even think of a way to complete that argument.

  65. Never happen by Anonymous Coward · · Score: 0

    Great idea.
    Too bad all those corporations lobbyist massive "donations" control politicians actions.
    You would most probably have to get rid of the crooked politicians first.
    Rats don't abandon ship until it sinks.

  66. Wrong solution by cfulton · · Score: 1

    This "solution" is trying to patch a broken system. The only real chance is to make fundamental change in patent law. We need to explicitly remove software as a patentable item or create a more complete definition of what a patentable bit of software is. Allowing "a method of starting and stopping a running program through the use of a button or command" kind of terminology in patent law is silly and should be explicitly addressed in the law. Contact you Senator or Congressman to change the law. That is the only real answer to what is clearly a real problem.

    --
    No sigs in BETA. Beta SUCKS.
  67. create something like gnupatents.org ;) by mrflash818 · · Score: 1

    Seems there needs to be a way to create "open" patents that needs to be invented. Perhaps create a gnupatents.org?

    Seems to have worked (kinda, mostly) for open source, but with licenses being what was invented (gpl license, apache license, etc.).

    --
    Uh, Linux geek since 1999.
  68. If it's property, shouldn't there be a tax? by Agent0013 · · Score: 1

    When you "own" real estate, you pay property tax. If "Intellectual Property" is something that can be owned, then they should have to pay a tax on it.

    I would set the rate of the tax to be proportional to the value that the owner feels it is worth. And any other company that wants to use that patent can get it for that price. No negotiations needed. If the company thinks they need to keep other's from using it, then they can value it in the billions of dollars, and pay the rate for that. If they think it is not worth much, they can put the value at $1 and pay the minimum. If they think it is worthless, like swinging sideways on a swingset, they will pay no taxes on it, but it then goes into the public domain.

    I'm sure there are things to work out with an idea like this, but it seems to solve many problems at once. Plus, it will help balance the budget of the bankrupt government, so you might even be able to get the politicians to vote for it. How silly of me, the politicians are in the pocket of the mega-corps, so they would never do something that would hurt their masters!

    --

    -- ssoorrrryy,, dduupplleexx sswwiittcchh oonn.. -Quote found on actual fortune cookie.
  69. Concentrate on the real issue by alexo · · Score: 2

    The only way to have meaningful changes (be they patent reforms or anything else) is to ensure that those in the position to enact the changes have both the means and the will to do so.

    Until we reach that stage, all the ideas, suggestions and discussions amount to nothing more than intellectual masturbation.

  70. Names by Anonymous Coward · · Score: 0

    I don't even know who the worst patent offenders are. We should determine the worst 5 or 10 offenders and put a lot of postings around the internet to let everyone know what scumbags they are. Maybe they'll finally face some negative consequences for their actions. Then if some potential employer or date googles them, they will be repulsed by the results they see.