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Supreme Court Rules In Favor of Patent Troll

An anonymous reader writes: The Supreme Court ruled today (PDF) that Cisco Systems can't skip out of a patent suit against them from patent troll Commil USA. The case reached the Supreme Court because Cisco argued it had a "good faith belief" that the patent they were infringing was invalid. The justices voted 6-2 that such a belief didn't matter if they were indeed infringing. The Supreme Court's opinion is that a company must know of the patent it's infringing, and that their product infringes upon the patent — which, at least, is more than what Commil was pushing.

The case isn't completely over — a $63.7 million verdict in Commil's favor was overturned by an Appeals Court, and now the Supreme Court has sent it back down for re-evaluation after it clarified the rules of infringement. The Appeals Court could still overturn the judgment for some other reason. The good news is that the Supreme Court dedicated a page in their opinion to telling lower courts how to sanction patent trolls and keep them from clogging the courts with ridiculous claims. "[I]t is still necessary and proper to stress that district courts have the authority and responsibility to ensure frivolous cases are dissuaded."

11 of 87 comments (clear)

  1. Court Rules in Favor of Patent Reform by penguinoid · · Score: 4, Interesting

    At some point, the trolls will collect enough tolls that we'll finally have to do something about the ridiculous patents that are granted.

    Remember, the trolls are legally in the right, which makes it not a problem with bad ethics on the part of the trolls, but bad ethics on the part of our legal system or patent system.

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    1. Re:Court Rules in Favor of Patent Reform by penguinoid · · Score: 4, Insightful

      legal != ethical

      The real problem is when something profitable and unethical is legally protected.

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      Don't waste your vote! Vote for whoever you want, unless you live in a swing state it won't matter anyways
  2. Re:Win some, Lose some by Adriax · · Score: 4, Insightful

    Declaring a patent invalid yourself and trying to do the courts job pretty much guarantees you end up in the "lose some" catagory.

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    I don't suffer from insanity, I enjoy every minute of it!
  3. I don't understand Scalia's logic here. by timrod · · Score: 4, Insightful

    The logic the majority used in ruling on this case seems pretty simple (unless I'm totally off): the patent troll had a patent that was still legally valid because there had been no court challenge to declare it invalid. Because the patent was still legally valid, the infringement of the patent is still a valid cause of action in a lawsuit.

    Scalia's logic is that you can bypass a legal challenge over a patent that might be ruled invalid in court because it was never valid in the first place. The question is, though, how would you know whether the patent is valid without the court saying so?

    1. Re:I don't understand Scalia's logic here. by BitterOak · · Score: 5, Informative

      The logic the majority used in ruling on this case seems pretty simple (unless I'm totally off): the patent troll had a patent that was still legally valid because there had been no court challenge to declare it invalid. Because the patent was still legally valid, the infringement of the patent is still a valid cause of action in a lawsuit.

      Scalia's logic is that you can bypass a legal challenge over a patent that might be ruled invalid in court because it was never valid in the first place. The question is, though, how would you know whether the patent is valid without the court saying so?

      But there are two separate types of infringement at issue here. First is direct infringement. This occurs when the defendant actually violated the patent him or herself. This is a strict liability offense, meaning that it doesn't matter if the defendant was aware of the patent or not, and it doesn't matter if the defendant was aware that his or her actions infringed the patent or not. And if the patent has not been declared invalid, it is presumed valid and the defendant is liable for damages even if the patent is later ruled invalid. This is well-established law and is not at issue in the Supreme Court's decision.

      The other type of infringement is induced infringement. This occurs, for example when a defendant sells a product which would cause the end users to violate the patent. The defendant is not violating the patent directly. According to patent law, for a defendant to be liable for induced infringement, he or she must be aware of the patent and also aware that the usage of the product would be a violation of that patent. So the question before the Supreme Court was in the case of induced infringement, what if the defendant had a good faith reason to believe the patent to be invalid? I tend to agree with the majority here: if the patent wasn't declared invalid by a court, the usage of product would be infringing, so the defendant must have known that such usage would be infringing, since they knew of the patent. The dissenters (Scalia and Ch. J. Roberts) thought otherwise: if a patent is invalid, how can the defendant believe it to be infringed?

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      If I can be modded down for being a troll, can I be modded up for being an orc, or a balrog?
    2. Re:I don't understand Scalia's logic here. by timrod · · Score: 4, Funny

      Oh, okay. Thanks for clearing that up for me, makes a lot more sense now.

    3. Re:I don't understand Scalia's logic here. by Theaetetus · · Score: 4, Informative

      So the question before the Supreme Court was in the case of induced infringement, what if the defendant had a good faith reason to believe the patent to be invalid? I tend to agree with the majority here: if the patent wasn't declared invalid by a court, the usage of product would be infringing, so the defendant must have known that such usage would be infringing, since they knew of the patent. The dissenters (Scalia and Ch. J. Roberts) thought otherwise: if a patent is invalid, how can the defendant believe it to be infringed?

      Add to this the fact that the "good faith belief" is a really low bar, and simply means you found an amenable patent attorney to draft an invalidity opinion letter for you. If they're right, the patent is invalid and you owe nothing. If they're wrong - under the previous state of the law - you believed it was invalid and didn't intend to infringe and owe nothing.
      Which basically boils down to, "pay an attorney $10k for an opinion memo, and get out of infringement scot free." It's a good loophole to close.

      Disclaimer: I am a patent attorney and have done opinion letters. Mine were totally legit, though.

  4. The patent trolls need to win by OrangeTide · · Score: 4, Interesting

    The patent trolls need to win until corporations break, only then will real change in patent laws occur in the legislature.

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    “Common sense is not so common.” — Voltaire
  5. Then let us sue the government! by backslashdot · · Score: 4, Insightful

    It is absurd that the USPTO has a massive backlog on patent issuance -- by law, it is expected that a patent term is 20 years from the filing date -- however there is an exception to that rule if the patent is not issued within 2 years -- if the patent is not issued within 2 years (due to a USPTO delay) the clock on that 20 years is paused until the patent issues. There are still hundreds of thousands of patents filed on things like HDTV which havent yet issued. It means that HDTV technology will be patent encumbered for the long term future. Nobody has the incentive to fix it. If you wanted to make an open hardware HDTV, you can't do it royalty free because a lot of the HDTV standards essential technologies are still patented and will STAY patented virtually forever thanks to the USPTO patent backlog. Why would any tech companies object to that? They make money off the patents they filed that got issued PLUS the ones that were filed but the USPTO hasnt taken action on them. Think about it this way if Sony filed two patents on HD technology, they get one of them issued fairly quickly within 2 years .. and then by luck or bribery the USPTO action on the second patent is delayed 19 years just as the first patent is expiring .. then because it's the USPTO's fault that the second patent didnt issue .. they get to claim 17 years of additional monopoly on the HD technology. I am not against patents, I am against infinitely long patents .. which are unconstitutional .. yet in practice the USPTO is enabling it. Let's not forget that the constitution only authorizes patent rights if and only if they enable the advancement of the useful arts and sciences (and those too for limited times).

  6. Re: Win some, Lose some by Anonymous Coward · · Score: 4, Insightful

    No it didn't. In the case of electricity in particular what it did was to ensure that the person responsible for the design of our transmission systems died poor while people who didn't invent that stuff got to 'own' it and thus got very rich.

    In other words, patents favored those with business and legal knowledge as opposed to those who actually know how to do something useful. As they always have.

  7. Re:View from a patent holder ... by penix1 · · Score: 4, Interesting

    To me there is a much easier fix. Remove the assumption that patents reviewed by the USPTO are valid since a vast number have been proven to not be. That will shift the burden of proving validity to the patent holder making it less profitable for patent trolls.

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