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Patent Reform Bill Approved by House Committee

Posted by CowboyNeal on Fri Jul 20, 2007 06:29 AM
from the long-time-coming dept.
Alex Forster pointed us to this PC World story that opens, "The House Committee on the Judiciary approved far-reaching legislation to reform the nation's patent system Wednesday. The Patent Reform Act of 2007 largely reflects the IT sector's lobbying effort to curtail lengthy, expensive patent infringement lawsuits, but Wednesday's committee deliberations centered on finding compromises acceptable to opponents — namely the pharmaceutical and biotechnology industries, manufacturers, and large research universities — so that the bill could win approval. Committee Chairman John Conyers, D-Mich., described the current patent system as inefficient, bogged down by inappropriate litigation rules, unreliably funded, and resulting in patents of "questionable quality." The bill would make it harder to secure a patent and easier for rivals to challenge one, and it would change how courts determine an infringed patent's value."
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[+] Patent Reform Bill Unable To Clean Up Patent Mess 92 comments
First to submit writes "Ars Technica analyzes the Patent Reform Act that has passed the House and is being debated in the Senate. Unfortunately for those longing for real, meaningful patent reform, the bill comes up short in some significant ways. 'Despite the heated rhetoric on both sides, it is unclear if the legislation will do much to fix the most serious flaws in the patent system. A series of appeals court rulings in the 1990s greatly expanded patentable subject matter, making patents on software, business methods, and other abstract concepts unambiguously legal for the first time.'"
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  • ..would have been a better title. No real reform here. Just business as usual.
    • Care to cite examples? Or is this just a generally "I am cool because I am a skeptic" response?
    • by aneeshm (862723) on Friday July 20 2007, @08:14AM (#19925841)
      The current Indian government is a coalition, and the Communist Party of India are one of the major members, without whose support the coalition would collapse.

      Though I am staunchly in favour of the free market, I still must thank the communists for one thing - they made algorithms (mathematical and non mathematical), programs, business methods/models, and software in general unpatentable, by including it in the 2005 Patent Amendments Act.

      Before that, software was patentable in the limited sense of it being a component of hardware - like the microcode of a chip, for example - basically at the point where the differences between hardware and software became a bit blurred. Now, however, it falls under the list of things which are explicitly unpatentable.

      I find it extremely ironic, and a bit sad at the same time, that it is the Communists Party of India which essentially stood up for freedom and a truly freer market.
    • I agree exactly... The one thing they didnt even talk about was the patent cross licensing issue... This business tactic profits very large established players and basically blocks out any new competition.... This, in my opinion, is the worst part of the current patent system...

      It would appear that the only real competition left in the software world is OSS. Its kind of hard to sue an OSS project...
      • Does it define prior art?

        One of the ways that the current system is broken is not allowing publication on web-searchable pages to be considered prior art. Perhaps they NOW consider publication in SourceForge to be prior art, but they didn't last year, and since that's an administrative decision, it may be reversed at any time. FWIW, I suspect that even if they now consider publication in SourceForge to be prior are, they probably don't consider CodeHaus, and almost certainly don't consider the Linux Kerne
  • "Far-reaching"? (Score:5, Interesting)

    This bill is a small tweak of the system that cures the worst symptoms but does not fix the disease. It's at best a recognition that the US patent system is not perfect, and at worst a band-aid that will delay real reform.

    There's no substantive changes, no change of the economic incentives that drive specialists to claim every plausible invention in the name of speculative future profits. As long as experts can claim exclusive ownership of the software commons, the patent system is broken, and it'll continue to punish real innovators by creating unpredictable risk.

    Real innovators don't even seek patents. 80% of VC-funded software firms don't claim patents within four years of being funded. [digitalmajority.org] The whole patent system is a fraud, a tax on the consumer, and a blight on high-tech industries. This bill just perpetuates the fraud a little longer.

    What is needed is a total review of what patents are for, why society should grant them, and how this should operate in a post-industrial world. Compare, for example, the trademark system (an industrial-age protection) with the domain name system (proper digital age protection of the same thing), and you see what could be possible.

    • Re:"Far-reaching"? (Score:5, Insightful)

      by pzs (857406) on Friday July 20 2007, @06:53AM (#19925245)

      Real innovators don't even seek patents. 80% of VC-funded software firms don't claim patents within four years of being funded. The whole patent system is a fraud, a tax on the consumer, and a blight on high-tech industries. This bill just perpetuates the fraud a little longer.

      I totally agree with this. There is an Audi advert here in the UK where they claim that their new car is very innovative because during its production, they filed more patents than NASA did whilst developing the space shuttle. They fail to mention that NASA is government funded and focussed on progress and innovation, so they have much less interest in slapping a "this is mine" sticker on any half-idea they have and charging everybody to use it.

      This is actually related to this [slashdot.org] discussion. Number of research papers is not necessarily proportional to the quality of the research because (duh) somebody might publish one really amazing paper which contributes more than 15 crappy papers.

      It strikes me that the patent system is just another part of the corporate game playing exercise. People cynically patent anything as another revenue stream making a mockery of the purpose of protecting IP in the first place.

      Peter

      • Re:"Far-reaching"? (Score:4, Insightful)

        by QuantumG (50515) <qg@biodome.org> on Friday July 20 2007, @08:21AM (#19925895) Homepage Journal
        Why does the US have such great laws in regards to copyright of works produced by government agencies and yet no similar laws for patents?

      • Re: (Score:2, Interesting)

        Agreed, and I also find it really amusing when companies mention patents in advertisements. "This product is great, because we're going to charge you more because of our stranglehold on the technology!"? You don't need patents in order to use good ideas.
      • I've realised that my message is blatant karma-whoring. Apologies.

        Next time, I'll just say "patents are bad, mm-kay?"

        Peter
      • People cynically patent anything as another revenue stream making a mockery of the purpose of protecting IP in the first place.

        There is also a perverse incentive for the patent examiners to approve even half baked or marginally plausible patents because their agency and its funding is based primarily on, you guessed it...patent fees. If they start tightening up what gets approved and what doesn't then fewer companies will apply for patents and pay fees which means less revenue to their (the patent exami
    • "80% of VC-funded software firms don't claim patents within four years of being funded."

      That's a great statistic, but doesn't really -mean- anything. WHY didn't they claim a patent? Ideals? Lack of anything to patent? Lack of money? (Yes, they were funded, but that doesn't mean they had extra.) Did they get beaten to the patent?
    • What is needed is a total review of what patents are for, why society should grant them, and how this should operate in a post-industrial world. Compare, for example, the trademark system (an industrial-age protection) with the domain name system (proper digital age protection of the same thing), and you see what could be possible.

      Hmmm...what if you had an online database of implemented original inventions, peer-reviewed, of course. Those with truly inventions would then post them in the database. Peers i

    • A small tweak?

      The "2+1" Limit on Continuations/RCE's:
      Each applicant gets 2 continuations and 1 RCE per application. The rules will be applied retroactively for cases that have not yet received a first action on the merits.

      The "3+1 Transition Rule":
      For cases that have not received a first action by the time of the new rules, a "bonus" continuation will be allowed, i.e., a total of one (1) RCE a
  • 1. Patent the patent bill.
    2. Sue the government.
    3. Profit!
  • Quick! (Score:3, Funny)

    by Anonymous Coward on Friday July 20 2007, @07:00AM (#19925287)
    Dear employee:

    It has come to our attention that Congress will soon make it more difficult to patent out innovations. Under the new rules, some of our innovations such as our "two click on-line shopping" invention and our "three click shopping for healthcare" invention would be unpatentable.

    Although shocking, our legal staff tells us that it is very unlikely that our existing patents will be nullified. We'll still have patent rights on three-click healthcare.

    Please note that this is the time to ramp up the filing while we still have the chance! This week, Robert is planning to file "combination TV remote and firearm", "Fuel pump/ATM combination device", "guitar with integrated video display", and "Retail sales of iPod accessories made after 2008". People, PLEASE talk to Robert to get your filings in ASAP - because otherwise, we'll have to really innovate, and that will damage our bottom line.
    • Fuel pump/ATM combination device
      That is a great idea! You should patent that.
      • They already exist, several petrol stations in the UK have these.
          • Actually, they exist in the US also. They're quite common:
            You drive up to a gas pump, insert your credit card, and pump out gas instead of money (though an automatic translator ensures that your bank is dispensing money).
    • Don't forget to "re-patent" these ideas by adding "over the internet" to the end of their descriptions.
  • Check out this article [mondaq.com] about how the Supreme Court earlier in the year revived the obviosness standard. This was one of several decisions that went against patent trolls, and leads me to believe that the justices actually read the newspaper. Now if Congress took less money from the trolls, perhaps there would be stronger legislative reform.
  • Bullshit (Score:3, Insightful)

    by Black Parrot (19622) on Friday July 20 2007, @07:25AM (#19925459)

    The bill would make it harder to secure a patent and easier for rivals to challenge one
    By the time it gets out of committee it will be just another gimmee for the biggest corporations.

    • That might not be a bad thing (I can't believe I just said that...)

      There's two basic bad effects from the current system: big companies squashing competition, and patent trolls submarining obvious patents then popping up demanding license fees.

      Big corps are the ones hurt most by the patent trolls, so they and we (the public) are on the same side in that fight.

      As far as squashing upstart competition goes, I'm sure they'll lobby to keep that ability.

  • Thus spake the article:


    The bill moves the patent system from a "first-to-invent" to a "first-to-file" system, but in another nod to large universities, the committee clarified a grace period on filing patent applications for inventors who disclose or publish inventions in advance of seeking a patent.


    Does this mean that prior art can no longer invalidate a patent if the creator of the prior art never filed for one?
    • by Heisenbug (122836) on Friday July 20 2007, @07:40AM (#19925563)
      Does this mean that prior art can no longer invalidate a patent if the creator of the prior art never filed for one?

      No, because to get a patent you have to prove the technique hasn't been previously published by someone else. This will just mean that if two people who can each prove that element file for the same patent, they won't have to argue about who kept it secret for longer.
      • No, because to get a patent you have to prove the technique hasn't been previously published by someone else.

        Where'd you get a crazy idea like that?

        C//
    • Does this mean that prior art can no longer invalidate a patent if the creator of the prior art never filed for one?
      The way I read the statement is that prior art wouldn't invalidate a patent if the prior art was by the person filing for the patent. If you're the first person to invent something, you can still patent it even if you make it public before applying for the patent.
  • by StressGuy (472374) on Friday July 20 2007, @07:36AM (#19925539)
    I recently saw an add for a razor, you know, the kind you use to shave with. Not electric mind you, just a plain old shaving razor. The advertisement said that this particular "new and improved" razor had 20 more patents that the previous model.

    Seriously, how do you get 20+ patents out of a razor?

    I think the math pseudo-code works like this:

    IF [1 razor] >= [20 patents] THEN {ACTUAL-PATENT-VALUE} = {TRIVIAL}

    Yet, the value of an "infringed" patent can be hundereds of thousands of dollars in court (if not millions).

    Therefore, while I do believe the original idea of the patent was to protect honest innovation, it appears that all we are really doing these days is creating a litigation industry. The more patents you can attach to something, the greater the likelihood of generating additional revenue in court.

    I'm not opposed to the idea of a patent, but it seems to me that businesses are simply "gaming the system" here....or am I missing something?
    • by rmstar (114746) on Friday July 20 2007, @08:11AM (#19925819)
      Go to a startbucks. The little cardboard ring that you use to keep your fingers from burning is protected by two patents. A piece of cardboard and a bit of glue, and you are a patent infringer. Now that I told you, you would be liable for trebble damages.

      And if you need a further wake-up, read how patent litigation really works here [law.com].
    • Re: (Score:3, Interesting)

      At least the razor is a physical object that might have some amount of research (probably in the materials used) to it. I hear ads on the radio from a bank that rounds all debit card purchases up to the next dollar and transfers the difference into your savings account. At the end of the ad, they say "patent pending". They have actually applied for a patent that covers the combination of basic arithmetic and transferring money between accounts (which most people have been able to do for years, even online o
  • Yeah, right (Score:4, Insightful)

    by dgun (1056422) on Friday July 20 2007, @07:38AM (#19925551) Homepage

    There will be no real reform of the patent systems as long as congress is bought and paid for by campaign contributions.

    And real reform means eliminating all software patents. And that will never happen as long as:

    Microsoft Campaign Contributions: $8,907,025 (1999 - Present)

    And I'm sure there are many other companies in the industry that throw dollars at congress. Source [campaignmoney.com]

      • Re: (Score:3, Insightful)

        One simple reform would make campaign finance reform a LOT easier: removing the idea from the legal system that corporations (or organizations) have the same sorts of rights as real people (specifically, free speech).
  • by dc_dog (767092) on Friday July 20 2007, @07:39AM (#19925561)
    The Senate Judiciary Committee passed their own version of the bill (S. 1145) yesterday afternoon. The bi-partisan bills now move to a vote in the full House and Senate. Trolls beware...
  • I read the whole text of the bill at thomas.loc.gov today. It's long, drawn out, runs circles around itself, and really does nothing. You can tell that mercantilist businesses helped write it -- it will still make things worse.

    If you want to reform something, you don't do it with steps like this. You don't write new laws to amend old laws -- it leaves loopholes and gaps that you and I can not find, but that patent lawyers are aware of and can help manage through IF you can afford them. It makes it more
    • I'm anti-patent, of course, but I also would be happy to see a return to a Constitutional patent system. I have a recommendation for Congress to make the patent system more level

      Your suggestions seem nice in the abstract, but saying you want to strip down the patent system and start from scratch is completely unworkable. The US is party to several international treaties that make a complete overhaul impossible, for starters.

      The current bill is certainly not as far-reaching as most reformers would like

      • It is tempting to say that you must have all or nothing solutions, but politics is about compromise. I'd rather have slow change than no change at all.

        In your personal life, slow changes make sense. You slowly learn a new trade, or you slowly fix your home, or you slowly save for retirement. It's just you, so you know what your goals are.

        In politics, slow always means "more tyranny," because the people voting for a bill today will not be the ones to enforce it tomorrow. When the Executive takes on new po
    • 2. Work on a new bill that is easy to understand, and doesn't provide for loopholes. Have no exceptions.
      You must be new here. Let me be the first to welcome you to the American legal system.
  • Approval from who? (Score:3, Insightful)

    by farker haiku (883529) on Friday July 20 2007, @09:00AM (#19926327) Journal
    Wednesday's committee deliberations centered on finding compromises acceptable to opponents -- namely the pharmaceutical and biotechnology industries, manufacturers, and large research universities -- so that the bill could win approval.

    I wasn't aware that the biotech industries, manufacturers, and large research universities were the ones voting on it.
    • I wasn't aware that the biotech industries, manufacturers, and large research universities were the ones voting on it.

      Do you really think Congresspeople don't vote for the interests of those that fund their campaigns and push lobbyists in their faces?

      Besides that cynical view, it's also true that a lot of politicians feel that one of their repsonsibilities is to ensure the health of industry for economic reasons. Many politicians would worry that overly zealous patent reform would cause unemployment in th

  • Wednesday's committee deliberations centered on finding compromises acceptable to opponents -- namely the pharmaceutical and biotechnology industries, manufacturers, and large research universities Am I the only one who thinks how powerful interests have to be consulted (so they can stay powerful) before a bill passes is a pretty F****D-UP kind of democracy? It looks like whether we have communism or capitalism, if either system gets too hoary and entrenched the people get pwned.
  • ...etc..

    The IT industry sector here = IBM

    Things that cannot be patented: Natural Law, Physical Phenomenon, Abstract Ideas are the three primaries. Mathematical algorithms are also considered non-patentable but in fact are a subset of abstract ideas.

    Man is unlike other animal life, he is capable of consciousness or in other words, abstraction above basic level. It is the nature or natural law of human character. It is further a physical phenomenon that man converts abstract thinking into physical movement an
    • Strictly speaking it is true that Microsoft has a big presence in the lobbying world but how do you figure that Microsoft would benefit from reform in the patent system? One of their main tactics for bullying smaller competitors (read all competitors) has been to use there vast library of vague patents to sue. Who would be the chief beneficiary of a bill like this?

      In the long run I don't care who lobbied for a bill if it benefits the greater good (I don't know if this does or not, I am not a lawyer), which
      • Uhh, Microsoft have stated their reasons for wanting patent reform. They're the biggest target for patent trolls.

      • Um, Microsoft is not giving up their patents. They are saying this:

        "Look, guys, we haven't really had any new ideas in a while, and we're tired of paying so much for ideas. Let's have Congress pass a law that makes it really hard for future people to get patents, but allows us to keep our patents! That way we can still threaten to sue Linux users, but they can't do anything to us! Woot!"
    • So your telling me M$ has only 235 totally bogus patents? Oh, that cant be right... I mean M$ is much more "ambitious" than that... :-)