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Courts May Revisit Software Patents

Posted by CmdrTaco on Mon Feb 18, 2008 10:50 AM
from the yeah-that'll-happen dept.
An anonymous reader writes "It looks like the courts may finally be gearing up to overturn the ruling that opened the floodgates for both software and business model patents. It's been nearly ten years since the US courts decided that business methods were patentable and that most software could be patentable — and we've all seen what's happened since then. With all the efforts to fix the patent system lately, it appears that the court that originally made that decision may be regretting it, and has agreed to hear a new case that could overturn that ruling and restore some sanity to the patent system."
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[+] Time To Abolish Software Patents? 259 comments
gnujoshua writes "Has the time come to abolish software patents? Fortune columnist Roger Parloff reports on a new campaign called End Software Patents, which he views as 'attempting to ride a wave of corporate and judicial disenchantment with aspects of the current patent system.' Ryan Paul of Ars Technica writes that the purpose of the campaign is to 'educate the public and encourage grass-roots patent reform activism in order to promote effective legislative solutions to the software patent problem.' The campaign site is informative and targets many types of readers, and it includes a scholarship contest with a top prize of $10,000.00. We've recently discussed the potential legal re-examination of software patents."
[+] Supreme Court Review of Bilski Heats Up 121 comments
I Don't Believe in Imaginary Property writes "The Supreme Court's review of In Re Bilski (discussed here numerous times) is heating up, having attracted no less than 44 friend-of-the-court briefs from almost everyone with a stake in the patent system. Patently-O provides a nice summary of who is arguing against Bilski. The two questions before the Supreme Court are whether or not a process must satisfy the particular machine or transformation test, and whether this test improperly excludes many business methods in spite of the wording of 35 U.S.C. 273, which specifically allows business-method patents. So far, the case has attracted legal filings from nearly every large company or group whose patents might be threatened. You can read briefs from Yahoo, IBM, Borland, Dolby Labs, the BSA, and many others, even one from some guy claiming to speak on behalf of the State of Oregon."
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  • Bah. (Score:5, Insightful)

    by TripMaster Monkey (862126) on Monday February 18 2008, @10:55AM (#22462968)
    I just can't see the CAFC reversing themselves to any significant degree here. Most entities involved have way too much to lose.

    I predict this will get quietly swept under the rug...again.
  • No bets (Score:5, Interesting)

    by canuck57 (662392) on Monday February 18 2008, @11:06AM (#22463080)

    a new case that could overturn that ruling and restore some sanity to the patent system

    No bets here, lawyers enjoy the complexity and confusion too much to make this any better. Congress just needs to change the law. In a business like computers which is evolving so quickly, say a 2 year patent then it expires. And you can only sue if you produce a competing product with it and have been harmed.

    You need to stop patent trolls dead. Like RAID and bugs. Let innovation back into this business.

  • by johndiii (229824) * <johndiii&amilost,com> on Monday February 18 2008, @11:18AM (#22463218) Journal
    This is a subject worthy of discussion, but the TechDirt article is pretty weak. It does not appear have much content aside from links to other TechDirt articles (and one to Wikipedia); the blog entry that apparently triggered it is on patent law blog [patentlyo.com], and does contain a good amount of information on exactly what is going on. Other reasonable current articles on patent law, in the area of software and business method patents:
  • by overshoot (39700) on Monday February 18 2008, @11:20AM (#22463236)

    With all the efforts to fix the patent system lately, it appears that the court that originally made that decision may be regretting it, and has agreed to hear a new case that could overturn that ruling and restore some sanity to the patent system.
    The CAFC may not be regretting its decisions, but it's been getting some pretty blunt signals from the USSC that they are not totally pleased with what the CAFC has done while on a long break from supervision. This is one of two things:
    • A rethink to head off not only having their wrists smacked but having the USSC start reviewing their cases much more often (complete with reversals) or
    • A chance to put together a really solid and detailed ruling to give the USSC a reason to agree with them.
    We won't know which they pick until this summer.
  • by PoliTech (998983) on Monday February 18 2008, @11:25AM (#22463304) Homepage Journal
    As I was reading TFA I came across this comment [patentlyo.com] and some interesting links:

    Apparently, the PTO seems to want a bright-line test for patent-eligible business method versus a patent-ineligible mental process.

    The discussion at oral argument might shed some light as to the reason why the CAFC voted sua sponte to take this matter en banc.

    The following dialogue occurs at 15:20 of the mp3 file obtainable at: http://www.cafc.uscourts.gov/oralarguments/searchscript.asp [uscourts.gov] (type Bilski for Caption)

    Judge 1: The way in which the Board . . . presented Bilski to us was with this prayer for guidance. . . . Our examiners need guidance, we need to know how to deal with this situation . . . . Let me ask you this question, Is the opinion in In Re Comiskey enough? Can your examiners now move forward? Are you satisfied in dealing with business-method patents?

    Solicitor: Not quite your honor. I say not quite because what I can foresee [are] future disputes and also potentially years of litigation over trying to find the dividing line between what would be a so-called patent-eligible business method versus a so-called patent-ineligible mental process. It just is going to create litigation issue that we dont think needs to be there.

    Judge 2: So to cut to the chase, how would you [the Office] have reformulated the test . . . for purposes of explaining both Comiskey and then extrapolating to this case? Solicitor: I think what was just discussed here page 17 [of Comiskey slip opinion, see http://www.cafc.uscourts.gov/opinions/06-1286.pdf [uscourts.gov] ] is a very fair recitation of what the law is where it says. . . . the Supreme Court has held that a claim reciting an algorithm or abstract idea can state statutory subject matter only if, as employed in the process, it is embodied in, operates on, transforms, or otherwise involves another class of statutory subject matter, i.e., a machine, manufacture, or composition of matter.

    Interesting stuff.

  • by Grond (15515) on Monday February 18 2008, @11:34AM (#22463392)
    It's been nearly ten years since the US courts decided that business methods were patentable and that most software could be patentable -- and we've all seen what's happened since then.

    Since then we've seen the emergence of Google as a powerful challenger to Microsoft. This is one example among many of a company whose entire existence, much less its massive success, is dependent upon a patent (# 6285999, in Google's case). If Google had not been able to patent its major innovation, then Microsoft could easily have co-opted the idea, and it would have dominated search as well as operating systems and office suites. Recall that most of Microsoft's meteoric rise took place during a time when software was not patentable. The absence of software patents is precisely what makes "embrace, extend, extinguish" possible. Software patents give the original innovator the power to stop that strategy in its tracks.

    I believe that what Slashdot readers truly dislike are bad patents, not software patents per se. Software just has more bad patents than it should because of the way the PTO treated them. Until the courts basically forced the PTO to accept software patents, the PTO did not hire computer scientists as patent examiners. Even now, the PTO has a massive backlog of software patent applications, and as a result computer related applications have by far the longest median time to issuance (roughly 44 months!). The PTO tends to err on the side of issuance, and so we end up with a flood of terrible software patents.

    How to fix this? The simplest way is to eliminate the presumption that patents are valid, which requires a patent challenger to prove invalidity by clear and convincing evidence (a standard almost as high as beyond a reasonable doubt). Instead, we should recognize that many patents are not valid and end the presumption of validity. That way, bad patents can be more easily challenged, and patent trolls will think twice before bringing spurious suits.
    • by realmolo (574068) on Monday February 18 2008, @12:07PM (#22463820)
      I see what you are saying, but the problem IS software patents. Not that the Patent Office is bad at granting patents on software.

      Patents are supposed to cover a *specific implementation* of an idea. Which is fine, but in software, there are ALWAYS multiple ways to do things. So should a software patent cover the *functionality* of the software, or the the *implementation* (which would amount to the source code, and maybe some of non-standard elements of the interface).

      I say they should only be able to patent the source code/interface. Which, of course, they wouldn't/can't do, since it's already covered by copyright laws.

      So, no, Google shouldn't be allowed to patent their PageRank system.

    • by Pebble (99243) on Monday February 18 2008, @10:58AM (#22463000)
      While I may not agree with software patents I can't agree with your argument, it seems analogous to "If you can't patent chemical elements then why should you be able to patent devices, as they are nothing more then chemical elements."
    • by HonIsCool (720634) on Monday February 18 2008, @10:58AM (#22463006)
      Hmmm, what exactly is NOT maths in this world? :)
      • Hmmm, what exactly is NOT maths in this world? :)

        Patents are meant to cover a particular implementation in physical terms of a theoretical idea, and right now, they are often being used to try and cover the theory as well.

        For example, my own pet hobby is working on a new way to factor large numbers. Let's say that my redneck republican self gets insanely lucky and bumbles into an algorithm that actually factors something in polynomial time, or even close enough to it so that RSA and the like are untenable. Since my approach depends on treating factor as a decision problem, it follows that if I did get really lucky and struck gold, that, it would be applicable to a wide range of other problems. Under today's law, patenting that would basically give me the right to apply that mathematical breakthrough for my own ends, when clearly, its in the interest of society that as many people should be allowed to exploit it. Basically, I would be allowed to charge money for any sort of an implementation of a combinatorial problem, which is absurd. Yes, I might theoretically build a billion dollar enterprise to milk this concept for all its worth, I would ultimately though screw everyone else with whom such a breakthrough might be useful, and damage the overall economy that many millions of times more.

        Really, the dividing line is one of information and knowledge versus an actual real world device. As Jefferson so adroitly pointed out, information does not lose its value when it is copied. If I know something, and give that information to you, we both know something, and that doesn't hurt me that you know it. It does mean that I can't build some sort of an empire at your expense, but, given that we already went through the Catholic attempt, and then the various State attempts, to monopolize information, with disasterous results all the way around (and not a single success in 2000 years!), it is obvious that a social framework which allows information monopolies works to the disadvantage of mankind.

        Quite ironically, those people whose livelihoods depend on information having value are the ones most arguing that information ought to be free. Patents are, in theory, today, supposed to protect IT workers and their inventions, but most GOOD IT workers these days remember that computer science as a field advanced even more before today's patent nuttiness. If we did anything, it would be to allow the shared discovery and utilitization of new techniques, but protect, if desired, commercial and open implementations. So, for example, if Microsoft invents a new GUI dongle, or on the flip side, someone invents a browser plugin, then, it would be better for everyone if you simply could not be sued for making your own implementation of that idea. That gives us a world where everyone's products can advance, we have IT for our customers and ourselves and leave the lawyers out, and everyone is happy.

        It is really only the idiots at Wall Street, that have handed us the internet boom mess, the present mortgage mess and the previous S & L mess, that want to maximize every asset as much as possible with silly things like patents and create yet another bubble that will burst and screw the rest of us up. But really, Windows doesn't need any patents any more than Linux does. The value of both of those products is predicated on their overall customer experience, not some silly mining like claim staked out in Washington DC!

      • Hmmm, what exactly is NOT maths in this world? :)
        Elections using comprised Diebold voting machines?
    • by Anonymous Coward on Monday February 18 2008, @11:00AM (#22463020)
      Except for the EFF lawyers. Those are the only ones I would trust they will try to win this case.
      And how about the lawyers of companies who have been hit severely by the current situation?
    • by Yvanhoe (564877) on Monday February 18 2008, @11:23AM (#22463272) Journal
      Think of the people that LOSE money from patents. Think of all the companies that have been patent-blackmailed. Think about their lawyers spending months trying to get over some silly litigations. It really looks like a brake to innovation and business. I surely hope some part of the government will finally see it this way.

      Saying that all lawyers support patent laws is a bit like saying that all programmers support buggy software because it gives them more work.
    • by TheAngryIntern (785323) on Monday February 18 2008, @11:28AM (#22463336)
      I should sue....I already patented the idea that the you could overturn the current patent law.
    • by intrico (100334) on Monday February 18 2008, @11:48AM (#22463554) Homepage
      Yes, it's true that some individual people do benefit from business process and software patents, but they do nothing to encourage innovation. In fact, they end up stifling innovation. Patents were meant to encourage innovation, not stifle it.
      • by Jerf (17166) on Monday February 18 2008, @12:19PM (#22464026) Journal

        What is badly needed is some sort of patent reform that prevents non-specific or non-original patents. You should be able to patent a thing. You shouldn't be able to patent the idea of doing whatever that thing does.
        We have that. It's called "copyright".

        Why is software so special that it's the only thing that I know of covered by both copyright and extensive patents?

        (Is it really so surprising that the union of copyright and patent law produces a mess? They were never designed to cover the same domain.)
      • by Tony Hoyle (11698) <tmh@nodomain.org> on Monday February 18 2008, @12:51PM (#22464494) Homepage
        Abolishing patents is not a good idea. It's the only thing that protects a small inventor from having his inventions stolen by anyone who has more money.

        Patents do not stop that. Getting a patent is cheap enough, but defending it against a large competitor? You'd be forced into bankcruptcy in weeks.

        There's a reason why large companies like patents so much - so they can use them as bargaining chips when they get sued for using other peopple patents (or simply countersue, if necessary). The small inventor has no foothold in this process and would just get steamrollered if they tried.
    • by zarthrag (650912) on Monday February 18 2008, @11:05AM (#22463060)
      Consumers have everything to gain from this. Nowadays it's impossible to write a gui'd "hello world" without stepping through a minefield of patents. As a small business owner, it's unreasonable and likely impossible to expect me to research every patent and pay royalties/license fees for "a piece of software that beeps when it wants the user's attention", or other things. Only large companies can afford such things, and they use it stifle competition. (What do you think MS's sabre rattling over linux has been about?)

      Any CS person will tell you that when it comes to software, there's more than one way to skin a cat - probably thousands. But software/business patents let you find one, and squash the rest.
      • by malkavian (9512) on Monday February 18 2008, @11:17AM (#22463194) Homepage
        Actually, worse: It lets you think of one hypothetical way of skinning a feline, and block anyone else from skinning any quadruped. Even if you've not actually demonstrated that your way of skinning the quadruped will indeed work (or even could work).
          • by Thanshin (1188877) on Monday February 18 2008, @11:32AM (#22463368)

            You are currently violating my patent, 5,235,354,434,434: Method of doing business by ignoring software patents.
            You're clearly referring without permission to the lyrics of my last song "5,235,354,434,434".

            Prepare to be sued.

            P.S.: "Fiiiiive triiiiilioooons, two hundreeeed thir..."