Software-patent battle set to flare up
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In Europe, industry leaders, government officials and others debate whether patents would hinder or cultivate innovation.
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There's a brawl brewing as Congress works up the most sweeping overhaul of the patent system in half a century.
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com December 8, 2004, 11:09 AM PT. Microsoft and the University of California are getting ready to make their respective cases before the US Court of Appeals on Thursday in the biggest patent fight in Web history.
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Ongoing legal disputes over mobile phone patents between Nokia and Qualcomm are consuming much executive management time, generating substantial lawyer fees, and, if they escalate, could affect handset development and prices, experts warn.
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Open source can immediately prompt the words &#39;law suit&#39; in some peoples&#39; minds, but Black Duck have introduced a software platform that helps developers catch and resolve potential intellectual property disputes.
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Companies on both sides of a patent overhaul debate in the U.S. Congress are stepping up the pressure on lawmakers, as some observers expect a vote soon in the Senate.Two groups, one supporting patent legislation before the Senate and one against it, held dueling media briefings on patent reform on Capitol Hill Thursday. Members of the Coalition for Patent Fairness, including lawyers from Hewlett-Packard, Cisco Systems, and SAP, said they see broad support for the Patent Reform Act in the Senate and hope senators will soon&#160;follow the House of Representatives&#39; lead and pass the bill.The coalition sent a letter to Senate leaders Wednesday, calling on them to pass the Patent Reform Act. The bill will &quot;benefit all American workers and American consumers,&quot; said the letter, signed by 128 companies and organizations, including Amazon, Dell, eBay, and Intel.But another group, the Innovation Alliance, sent a letter to Senate leaders Tuesday urging them to reject the legislation.&quot;No compelling case has been made for a bill written in this fashion,&quot; read the Innovation Alliance letter, signed by 430 companies and organizations. &quot;It is based on claims of a crisis in the current patent system that does not exist, supported by selective assertions which do not hold up under scrutiny.&quot;Among the companies and organizations signing the Innovation Alliance letter were the Institute of Electrical and Electronics Engineers-USA, the NanoBusiness Alliance, Cargill, Coca-Cola, and Qualcomm.Both the House and Senate versions of the Patent Reform Act would overhaul the U.S. patent system, but two pieces of the legislation have generated the most controversy. The bills would create a new way to challenge patents after they&#39;ve been granted, and it 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 legislation would allow courts to base damages only on the value of the infringing piece.Those changes would create uncertainty about the validity of patents and drive venture capital money away from innovative companies, said Joe Kiani, CEO of Masimo, a medical equipment vendor in Irvine, Calif.Combined with recent U.S. Supreme Court rulings, including one limiting the use of injunctions by plaintiffs in patent infringement lawsuits, the Patent Reform Act would significantly decrease the value of many patents, argued Kiani and other participants in an Innovation Alliance forum.The bill &quot;opens the way for other countries like China to bring technology here that will be a fraction of the cost and will be copies of our technology,&quot; Kiani said.Panelists at the Innovation Alliance forum said they&#39;d support patent reform that gives more money to the U.S. Patent and Trademark Office (USPTO), allowing examiners to better research patent applications. &quot;We support prudent patent reform,&quot; said Sean Murdock, executive director of the NanoBusiness Alliance, a trade group representing nanotech companies. &quot;Simply stated, the current bill, in its current form, is not prudent.&quot;But members of the Coalition for Patent Reform, in a press briefing a couple of hours later, said Congress needs to fix problems with &quot;patent speculators&quot; suing established companies. The Supreme Court rulings and more money for the USPTO aren&#39;t enough, said Tim Crean, chief intellectual property officer for SAP.In the past two years, the Supreme Court has ruled on several patent issues, including a case involving eBay. In May 2006, the court overturned a long-term U.S. court practice of issuing injunctions against infringing products in nearly all patent cases.Despite the Supreme Court rulings, the number of patent lawsuits continues to grow, said Crean and Michael Holston, general counsel for HP. This year is shaping up to be a record year for patent lawsuits, Holston said.The coalition found about 625 patent lawsuits in 20 selected U.S. district courts in 1990. Through Sept. 30, the same 20 courts have seen about 1,550 patent lawsuits in 2007, the coalition said.HP will spend about $75 million defending against patent lawsuits this year, Holston said. More than half of those lawsuits come from patent &quot;speculators&quot; -- companies that buy patents for the purpose of filing lawsuits, he added.The patent system is &quot;being exploited through litigation games,&quot; added Mark Chandler, general counsel for Cisco.
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A patent-infringementÂ lawsuitÂ filed by Network Appliance against Sun Microsystems on Wednesday could escalate beyond the storage arena to become this decade's major test case for open-source software, according to storage analysts.
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The growing confrontation between Google and Microsoft promises to be an epic business battle.
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(InfoWorld) - In the wake of a recent landmark Supreme Court ruling, patent reform is bubbling toward a boil on Capitol Hill, where advocates in both parties and both chambers are urging timely action on pending legislation and contending with well-financed interest groups on both sides of the issue. "This is a big fight about winners and losers," said Sen. Tom Coburn, R-Okla., adding that he is not entirely satisfied with the pending Patent Reform Act of 2007, which was introduced in the Senate in April. "The question is how do we strike the balance." The Patent Reform Act legislation would make the requirements for obtaining a new patent more stringent, make it easier for rivals to challenge patents, and reduce the penalties for patent violations. Committee chairman Patrick Leahy of Vermont said that he, Sen. Orrin Hatch, R-Utah, and a number of other colleagues have been working on the nonpartisan bill for several years and that the existing patent system was designed for a bygone era. A decision by the Supreme Court in April in the case of KSR International vs. Teleflex marked a major clarification of the court's thinking about the granting of patents for new inventions and set a higher bar for what qualifies as an original invention. The ruling has already prompted legal wrangling between VoIP vendor Vonage in its ongoing dispute with Verizon over Internet telephony patents, and legal experts say that the ruling was a direct rebuke to lower courts that have tended to favor patent owners over those challenging the legality of patents that have been issued. Despite strong support from Democratic and Republican leaders in both chambers for change in the patent system, however, passage of the bill into law is not assured.Â  IT behemoths, including Cisco, Apple, Dell, HP, Microsoft, and Oracle, have aligned as the Coalition for Patent Fairness to press for the sweeping changes envisioned in the bill. They maintain that reforms are necessary to reduce costly, sometimes frivolous litigation. However, other technology companies, including InterDigital Communications and Qualcomm, have banded together as the Innovation Alliance and joined the biotechnology and manufacturing sectors to limit changes to the system. They argue that the bill would give patent infringers an advantage. The high stakes involved in the patent issue were illustrated June 6 at a hearing of the Senate Committee on the Judiciary, which was briefly delayed as committee aides tried to locate an extra room for the overflowing crowd. "What we're trying to do here is move the process forward," Sen. Orrin Hatch said in an appeal to lobbyists for compromise once the hearing got started. "There are a number of organizations who could stop this bill." The bill's two main sticking points are a provision that would give the public a new opportunity to review patents after they've been granted, and a provision granting the right for an immediate appeal to the Court of Appeals for the Federal Circuit after a district court has made a pre-trial ruling on the framework that will be used to determine infringement (known as a "claim construction"). Large IT companies and the financial industry support the "post-grant review" of patents, which would allow for a reevaluation of suspect patent claims before companies are forced to go through lengthy, costly litigation, John Squires, chief intellectual property counsel at Goldman, Sachs & Co., told the committee. Opponents countered that the proposed post-grant review process would create an essentially limitless opportunity for rivals to challenge patents. "If a patent can be easily challenged at any time under a low standard of proof, (then) patents will have much less value, and investment predicated upon them will inevitably be diminished," Kathryn Biberstein, senior vice president of Alkermes, a biotechnology company, told the committee in her testimony. "This, in turn, will likely result in fewer cures for diseases and other breakthrough biotechnology products." The biotech industry and the Innovation Alliance also oppose the right for an immediate appeal after a claim construction ruling, arguing that it would encourage appeals, further prolonging cases. But advocates, including Palm senior vice president Mary Doyle, said it would reduce the chance of conducting unnecessary trials and cut down litigation costs. The witnesses were eager to raise two other controversial provisions in the legislation, regarding how damages in patent cases are determined and the expansion of the Patent and Trademark Office's authority to make rules. Doyle and Squires, supporting the bill's "mandatory apportionment" of damages provision, told the committee that damages today can be unreasonably high because the calculation is based on the value of an entire product, not just the patented feature at issue. Countering that argument, Biberstein and Bruce Bernstein, chief intellectual property and licensing officer at InterDigital, said that the provision would replace today's market-oriented valuation of inventions with subjective jury findings. Debate on expanding the PTO's rulemaking authority mirrored the rest of the patent debate with representatives from the financial sector and the Coalition for Patent Reform joining forces in support, while witnesses from the biotechnology sector and the Innovation Alliance cautioned against the change. An identical House version of the Patent Reform Act is pending, having recently won approval by the House Judiciary Subcommittee on Intellectual Property. Leahy said he is eager to prepare the legislation for a vote by the Senate Judiciary Committee, but he did not indicate when that vote might occur.ADVERTISEMENTIBM Information On Demand 2006Industrial Industry Leaders, please join us at IBM's premier information management global event, IBM Information On Demand 2006, October 15-20, Anaheim, CA. More IBM business and technical solutions content in one place than ever before! Select from  over 800 sessions. Register today!
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A patent application has been filed for  a disc that would play two competing high-definition DVD  formats which, if successful, could help appease a battle that  has divided Hollywood and confounded consumers.
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The case has outraged some opponents of software patents, who claim it is a textbook example of why software should not be patentable.
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Blog: The companies are about to face off in a federal appeals court over their ongoing patent dispute.
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Tech politics watcher Brian Kahin says the patent system should suit different needs, granting one sort of patent for software, for instance, and another for drugs.
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Software giant makes bid in an attempt to challenge growing might of Google
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Opinion: Is Microsoft getting ready to explore intellectual property lawsuits against Linux and open-source software? If you can&#39;t beat them, sue them?
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Nokia and Qualcomm have entered a new round in their high-stakes fight over patent royalties.
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Lawmakers returning from their summer break are expected to consider patent law changes that have pitted two of America's most invention-dependent industries against each other.