Intel: Patent reform still needed
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The U.S. technology industry has faced dozens of lawsuits by &quot;patent speculators&quot; in recent years, and it&#39;s time for Congress to fix problems with the patent system, Intel&#39;s general counsel said Monday.In the last 21 months, U.S. technology vendors have contended with 193 patent infringement lawsuits, and 70 percent of them came from patent speculators -- &quot;people who buy up patents for the purpose of litigating them,&quot; said Bruce Sewell, Intel&#39;s executive vice president and general counsel, at a patent forum.By contrast, companies in the pharmaceutical industry have been defendants in 28 patent infringement lawsuits during the same stretch, and 24 of those lawsuits have been between competitors, he said.Patent lawsuit reform is needed to fix the problem with patent speculators -- called patent trolls by some people -- Sewell said, speaking at a&#160;patent reform&#160;forum in Washington, D.C. Patent reform legislation pending in the U.S. Senate doesn&#39;t target legitimate inventors, he said.&quot;We&#39;re not talking about individual inventors who sue for patent infringement,&quot; Sewell said. &quot;We&#39;re talking about patent speculators who warehouse patents and use those patents to go after successful companies.&quot;But Hans Sauer, associated general counsel at the Biotechnology Industry Organization (BIO), called the Patent Reform Act, a version of which&#160;passed the House of Representatives&#160;in September, a &quot;very patent-hostile bill.&quot; In the Senate, the bill has&#160;stalled over objections&#160;from the biotech and pharmaceutical industries, as well as inventors and some labor unions.The House version of Patent Reform Act, supported by several large tech vendors including Microsoft and IBM, would allow courts to change the way they assess damages in patent infringement cases. Currently, courts generally consider the value of the entire product when a small piece of the product infringes a patent; the bill would allow courts to base damages only on the value of the infringing piece.&quot;Not all patents are identical,&quot; Sewell said. &quot;Some patents are more important in a product, and some patents are less important.&quot;The bill would also allow a new way to challenge patents within one year after they&#39;ve been granted.Changes in the way patents are enforced could hurt innovation, Sauer said. The bill could diminish incentives for the health industry to innovate in the coming years, he said.&quot;Will I, 30 years from now, pay $10 less for an iPod and have a 10 percent less chance that Alzheimer&#39;s medicine will be available?&quot; he said.It is difficult to predict the effects of the patent reform legislation, added Anat Hakim, a patent lawyer with Foley &amp; Lardner, the law firm that sponsored the patent forum.Sewell complained that there&#39;s a small &quot;cottage industry&quot; of patent speculators that have sprung up. &quot;The concern is that we don&#39;t end up encouraging another cottage industry,&quot; Hakim said.The U.S. Supreme Court has ruled on several patent questions in recent years, and the U.S. Patent and Trademark Office is instituting new rules later this year, Sauer noted. Adding a patent overhaul bill on top of those changes is &quot;a lot to happen at once,&quot; he said.But Sewell said the changes are needed for the IT industry, if not biotech. &quot;You have a group of companies that are happy with the status quo, and are saying, &#39;Don&#39;t change it; it&#39;s not broken,&#39;&quot; he said. &quot;That&#39;s fine, but it&#39;s broken for a lot of other people.&quot;
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Gartner analyst Martin Reynolds said Intel, as the market leader, needs to keep &quot;moving people down the path&quot; of new technologies.
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Chip injunctions force the company to alter its plans.
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(InfoWorld) - A group of five Republican senators is seeking a delay in legislation, supported by several large tech vendors, that would overhaul the U.S. patent system. The five, including Senators Chuck Grassley of Iowa and Sam Brownback of Kansas, have asked for more hearings before the Senate Judiciary Committee moves ahead with the Patent Reform Act, which is scheduled to be amended and approved in a Thursday hearing. The five sent a letter Monday to the Judiciary Committee asking for more hearings. "Many prominent American businesses on the cutting edge of innovation are expressing concerns about the impact of sweeping patent reform," said the letter, also signed by Senators Tom Coburn of Oklahoma, Jon Kyl of Arizona and Jeff Sessions of Alabama. "These concerns merit thoughtful deliberation." Many observers have called the Patent Reform Act the most sweeping reform of U.S. patent laws in decades. The bill would make it tougher for inventors to obtain new patents, make it easier to challenge patents, and reduce the legal penalties for patent violations. Microsoft Corp., Cisco Systems Inc. and IBM Corp. have praised the bill, saying it's too easy for the owners of questionable patents to sue tech companies and collect large damages or shut down entire product lines with court injunctions when one small piece of a product allegedly infringes a patent. "This important measure ensures that our patent system continues to foster innovation and economic growth by promoting improvements in patent quality [and] discouraging litigation abuse," Microsoft said in a statement when the bill was introduced. But five Republican senators raised concerns about the bill, echoed by some small tech companies and other members of the Coalition for 21st Century Patent Reform, a group calling for less sweeping changes to the U.S. patent system. The senators questioned the bill's attempt to apportion patent award damages. The bill would limit the damages a patent holder can collect when an infringing technology is part of a larger product, based on the value of the patented technology itself, instead of the value of the larger product. Courts now generally consider the value of the larger product when assessing damages. The senators also questioned the bill's provisions to allow new ways to challenge patents after the U.S. Patent and Trademark Office has granted them. These changes "need to be more carefully examined to ensure that they do not undermine innovation, increase frivolous litigation, or undermine property rights," the letter said. The letter also calls on the committee to look harder at ways to improve patent quality.
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Oh no, not another Intel antitrust probe. Doesn't this stuff ever get old?
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Move is the latest setback for the chip Intel once billed as an industry standard.
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Moore's Law continues to mandate that the transitor must be shrunken. But as Intel CEO Paul Otellini admitted tonight at CES, had it not been for a key innovation, Mr. Moore might have found himself out-lawed.
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There's been yet another product delay at Intel.
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(InfoWorld) - Patent reform legislation before the U.S. Congress would kill the value of patents and allow companies from other countries to steal U.S. intellectual property, a group of inventors said Thursday. About 20 inventors and U.S. company executives, visiting Washington, D.C., encouraged Congress to defeatÂ the Patent Reform Act, a version of which passed the House of Representatives earlier this month. The Senate has not yet voted on its version of the bill. The legislation "will weaken the patent system," said Dean Kamen, inventor of the Segway and the AutoSyringe. "It will devalue patents. It will be a disincentive for people to invest in the future." Several large tech vendors, including Microsoft, IBM, and Cisco, support the legislation, which would allow courts to change they way they assess damages in patent infringement cases. Currently, courts generally consider the value of the entire product when a small piece of the product infringes a patent, and the legislation would allow courts to base damages only on the value of the infringing piece. The legislation would also allow a new way to challenge patents after they've been granted. Supporters say the bill is needed because patent infringement lawsuits have gotten out of hand. It's too easy for patent holders to sue and collect huge damage awards when a small piece of a tech product is found to infringe, supporters argue. Microsoft this month praised the House passage of the legislation, saying lawmakers voted to "support American innovation and to preserve incentives for progress." But Peter Volanakis, president and COO of Corning, said the legislation would be an invitation for its competitors in Asia to repeatedly challenge his company's patents. "This encourages infringement, plain and simple," he said. "It is much easier to infringe patents with this legislation." The patent reform legislation would also "undermine" Corning's ability to invest in new products, Volanakis added. Steve Perlman, inventor of WebTV and lead developer of Apple's QuickTime, said he was surprised to learn of the legislation when he read of the House passage of the bill. As he's begun to contact lawmakers about his opposition to the legislation, their staffers are "stunned" to hear of tech startups that are opposed to the bill, Perlman said. Small inventors and startups were mostly ignored during hearings on the bill, Perlman added. One of the goals of the bill is to harmonize U.S. patent laws with the rest of the world. But the U.S. now has the best environment for startups and entrepreneurs, Perlman said. "I don't want to have the startup economy they have," he said. "I want the one we have." Perlman, founder and CEO of Rearden, and Kamen, founder of DEKA Research & Development, both said changes to the U.S. patent system are needed. But the legislation largely doesn't address the real needs -- more patent examiners and more money for the U.S. Patent and Trademark Office, they said. Perlman has a patent he applied for five years ago still awaiting examination, he said. "Let's first make the system we've got today work the way it's supposed to work," Perlman said. Congress should also wait to see the effects of a May 2006 Supreme Court ruling, in which justices overturned the long-held practice of issuing injunctions against infringing products in nearly all patent cases, Perlman said. That ruling should have a large effect on so-called patent trolls, he said. "There already has been a huge change" in U.S. patent law because of the Supreme Court ruling, he said.
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By MATTHEW FORDAHL    SAN JOSE, Calif.  -- In the latest change to its product lineup, Intel Corp...
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The chipmaker appears to have met its most recent deadline for production of the smaller-featured chips.
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Four years after its splashy launch, chip maker is still struggling.
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Chip power has increased dramatically in the last few years, thanks to new multicore processors from Intel, AMD and other chip makers. The problem is, software developers who understand how to utilize the new hardware are in short supply.
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In our lab tests, Intel's 45nm Penryn CPU didn't blow away the previous generation, but the tech behind it should keep Intel ahead.
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(InfoWorld) - Five consumer groups have given their support to legislation that would overhaul the U.S. patent system, saying the bill would create fairer penalties for infringement. The Patent Reform Act of 2007 could come before the U.S. House of Representatives for a vote as soon as this week despiteÂ objections from some labor unions, small inventors, and some small tech vendors. The bill, backed by several large tech vendors, also found support from Consumer Federation of America, Electronic Frontier Foundation, Knowledge Ecology International, Public Knowledge, and U.S. Public Interest Research Group. "Numerous flaws have emerged within the current patent system that can foster poor quality patents and invite uncertainty that inflates the risk and cost of litigation, especially in the areas of software and online services," the consumer advocacy groups said in a Friday letter to congressional leaders. The groups support two controversial sections of the bill that allow for a new way to challenge patents after they've been granted and change the way patent awards are calculated based on apportionment of damages. Currently, courts generally consider the value of the entire product when a small piece of the product infringes a patent, but supporters of the bills want Congress to base damages only on the value of the infringing piece. The apportionment provision would "encourage courts to limit damages for infringement so that they bear some relationship to the actual value of the damage to the patent owner," the groups said. The bill's post-grant review process would allow challenges within a year of a patent being granted by the U.S. Patent and Trademark Office. "This provision would provide a comparatively inexpensive and quick means to ensure the validity of issues patents before litigation becomes necessary," the groups said. Tech vendors, including Microsoft, IBM, and Cisco, have argued that the USPTO often approves questionable patents and that it's too easy for patent holders to sue, collect huge damages, and shut down product lines that have a small infringing piece. But since late July, three labor unions, including the giant AFL-CIO, have written letters to congressional leaders raising objections to the patent-reform legislation. The United Steelworkers letter said nearly 70 percent of patents filed in the U.S. come from manufacturing firms. "These bills would allow an endless loop of legal challenges after patents are awarded that will make it more difficult for U.S. patent holders to prevail against frivolous challenges," the letter said. The Coalition for 21st Century Patent Reform, whose members include Motorola, SanDisk, and Texas Instruments, has also opposed the legislation. "We believe a number of senators and members of Congress ... have expressed concerns with the bill and a desire to further work on the bill," coalition spokesman Bill Mashek, said earlier this month. The Senate Judiciary Committee has approved its own version of the Patent Reform Act, and that bill is awaiting action in the full Senate.
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By Therese Poletti, San Jose Mercury News, Calif.  Jan. 31--An attorney for Advanced Micro Devices, longtime foe of chip giant Intel, said Tuesday that regulators are less aggressive in going after monopolistic practices in the United States in recent years.
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The upstart chipmaker is still on the right path.