Supreme Court Rules Software Patents Invalid-Without Ever Mentioning Software Once In the Decision

Posted by khalling 10 years, 10 months ago to Technology
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"What this means is that companies like Apple, IBM, Microsoft, Google and others have had the value of their patent portfolios nearly completely erased today. If they wish to remain compliant with Sarbanes Oxley and other laws and regulations of the Securities and Exchange Commission they will need to level with their shareholders and tell them that their patent portfolios have been decimated."

db is on a plane headed to the Atlas Summit to give a talk about Galt as Inventor. When he gets off the plane, this news will greet him. Imagine a MODERN patent system understanding the manufacturing age but not the information age....


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  • Posted by 10 years, 10 months ago in reply to this comment.
    OA, as an inventor, I see you appreciate and understand the importance of protecting the products of your labor. It seems strange to me that individuals who promote capitalism would not give the benefit of the doubt to the inventor. The vast majority of our clients are able to quickly answer several questions which I consider integral to beginning the patent process.
    1. Is there anything like this already in your industry?
    2. What is the need? and how does your invention address the need
    3. If there currently is not a need, how will your invention disrupt your industry or other industries?
    4. How will you monetize this invention?

    In Alice's case, there was nothing like it out there, it saved clients billions in costs, it was obviously valuable or CLS would not have stolen the technology. The CAFC case revolved around not whether Alice was the inventor but IF the patent covered invention criteria. In other words, was this within the scope of invention (section 35 USC 101-patent statute). Their argument was if you combined computers + communication systems to settle financial transactions it is not in the subject matter of inventions.
    It is impossible to logically suggest that something that uses computers and communication systems is NOT in the subject matter of inventions. A computer is NOT an abstract idea. Communication systems exist, are tangible-not abstract. The court has NEVER defined abstract ideas. The court was purposefully vague, because they are unanimous in feeling anti-patent in general. Justice Thomas, probably been the strongest on patents, has referred to patents as "monopolies." This shows inherent bias and an erroneous definition for patent in the first place.
    George Mason University School of Law has an intellectual property center pursuing some of these intellectual battles. It may be too late...
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  • Posted by dbhalling 10 years, 10 months ago in reply to this comment.
    OA,

    Good points. I do not object to comments about patents that are directed to general knowledge (e.g., do patents foster economic growth and they a natural right) but I do object when people who have no expertise in patents start making pronouncements about whether the claims should be held patentable.

    This case really was only about whether Alice's described (claimed) something that was an invention. It was not about whether Alice was the inventor (first to create this invention). A computer and communication system that helps settle financial transactions is clearly an invention - it is a human creation with an objective result.
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  • Posted by Hiraghm 10 years, 10 months ago in reply to this comment.
    I like to play with language. Do you like to play with language?

    "You clearly do not understand property rights and patents. As such your opinion about patents has absolutely no weight."

    By what authority do you dictate that his opinion has no weight, simply because you assert that he does not understand property rights?

    I submit that you don't understand property rights; therefore your opinion carries no weight. See? Anyone can make such an assertion. Isn't language fun?

    Actually, I would tend to think that most patent attorneys, lawyers in general, and politicians, and in particular "experts" in the field of property rights don't understand property rights. As evidence I submit the current state of the United States with regard to property rights.

    Gosh, you're fun to play with.
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  • Posted by Hiraghm 10 years, 10 months ago in reply to this comment.
    I like playing with language, do you like playing with language?

    "when they don't understand railroads, but think they can dictate how they run. "

    please explain to me how a knowledge of railroads has anything to do with dictating how they run?

    Dictation has to do with power, not technical expertise.
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  • Posted by Hiraghm 10 years, 10 months ago in reply to this comment.
    I have to ask...

    How can you be a lawyer and so frequently substitute ad hominem for argument?

    Patents are no more property rights than the 2nd Amendment is gun rights. Patents *protect* existing property rights. For a limited time, they protect your right to the fruits of your inventiveness.

    Semi-off-topic... on "American Ride" today, the host pointed out that in 1906 the Wright brothers got received a patent... not for the airplane, or the idea of heavier than air flight, but for their three axis control system. The basis of all flight control systems today.

    Just think where we'd be if that patent had remained in effect as a bar to anyone else's attempt at controlling a powered flying machine...

    The host also pointed out that during the "gilded age"... 850,000 patents were issued to American inventors.

    I may not agree with your views on patents, but that's one hell of an argument for your side.


    Speaking purely for myself, I don't support people who literally *steal* the effort of inventors. However, if someone takes someone else's invention, makes changes and improvements on it, applies it where the original inventor never thought to apply it, it seems to me that person is not a moocher, and deserves some benefit, himself.

    Any patent which prevents this development is, in my opinion, an impediment to the advancement of civilization, and therefore unacceptable.

    You don't have to share your invention with the public, but if you do and someone builds or expands upon it, you got no kick coming.
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  • Posted by dbhalling 10 years, 10 months ago in reply to this comment.
    Robbie your criticisms constantly go to areas you have no expertise in. You ignore that patents are property rights, you ignore that patents are the most expensive, most examined, most time consuming property right to obtain. But somehow, with no knowledge of patent law you think you can say that Alice should not have obtained a patent. You do this without understanding how claims work, without reading the patent and the claims, without looking at the file history, without understanding the underlying technology. Gee - its like arguing over Electromagnetics with someone who has not even taken a basic engineering physics course.

    I am happy to discuss those aspects of patents that do not require expertise, but when you think you can spend 15 minutes reading some article on this and then provide a pronouncement on this patent then you are being absurd. It's like arguing with someone who has no knowledge of EM over the Brewster angle.

    Hear are some things that do not require expertise in patents:

    1) Are patents property right?
    2) Should software be patentable?


    I down vote people who don't know what they are talking about, but have strident, unsupported positions. If you don't want to be down voted, either get some expertise in the field or stick to things you actually have the requisite background in.


    I am not an expert is software programming. I would not spend 15 minutes reviewing some software you wrote and say it is useless, or tell you how you should have structured the software or tell you what language you should of used. I would not tell a heart surgeon how to best perform heart surgery.
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  • Posted by 10 years, 10 months ago in reply to this comment.
    The majority of the experts disagree with you. The implications of the ruling are highly confusing and contradictory. If Alice's invention is ineligible, then how software patents have been written for the last 30 years are invalid as well. Basically the court tells us-stay away from the financial sector with your inventions. It is protecting Wall Street with several of these software cases. That directly contradicts Bilski, which says you may patent business methods. Finally, the court argued a strawman with the argument "adding a computer" to [invention]. That is not at all how the claims of the patent read. The Justices do not understand claim construction. So, in the end, their ruling is well, we can't explain it, but we know it (ineligibility) when we see it. You have argued the same. You have not given a definition for invention and you have not stated why Alice's patent should not be an invention-only that you think it shouldn't. db has spent hours going over the patent in order to determine it was a valid patent. He understands claim construction and is well versed in the prior art. He has laid out a definition for invention, and as simply as possible, given a reasoning for why Alice had a patent, why software is eligible for patenting and the implications if software is going to not be patentable in the future. I have read through every comment on this post in support of the ruling. People have given their opinion without objective support for their opinion on which patents are spurious, how many are that way, why there should be no patents, and why software should not be patented, nor any evidence for this was invented a long time ago. Finally, there was even one comment that stated they knew they violated patents, but they didn't care because they "needed" them for their own technology-so the definition of "spurious patents" were, patents which they needed but were unwilling to recognize as legitimate property. Pretty frustrating on this site...
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  • Posted by Robbie53024 10 years, 10 months ago in reply to this comment.
    Which really gets to the heart of the matter. I've seen it written here that the court got the law wrong. Not that I hand my own judgment over to the SCOTUS, but there are several there whom I respect, particularly as it comes to understanding what the law is. I'm inclined to take their judgment on LAW over most others.

    I also respect the guidance of those in various specific fields. I must, however, temper that respect with my own judgment, particularly when the rules/rulings that might undercut their own power is challenged and they strike out. That seems to indicate to me that they are reeling not against true injustice, but against their own loss of power. I understand this reaction, but cannot condone it.

    My 2 cents, for what it's worth (probably less than 2 cents).
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  • Posted by ObjectiveAnalyst 10 years, 10 months ago
    Good morning khalling,
    Wow! This thread has made a lot of waves. I see quite a bit of contention. It is a subject far afield from my expertise so I hesitate to offer an opinion. I will say that my spidey senses alight when I read in the comments section below the linked to article, that the decision is right because the system as previously established "no longer serves the greater good of society."

    Isn't the purpose to serve the inventor first for a limited period so as to foster innovation which will later have a byproduct of benefit to society as a whole? As a layman I also wonder what kind of incentive for software developers may be diminished and how this may slow development... right or wrong... I wonder of the expertise and technical knowledge of the SCOTUS. Even in local court cases where colleagues of mine have sued for payment, judges unqualified to judge the efforts and technical aspects of the industrial manufacturing processes have ruled unfairly for deadbeats that did not wish to pay for services rendered because despite monumental efforts on the part of the manufacturers the unique designs were found wanting for the chosen process. If a buyer designs a part to be cast that is a challenge to produce soundly without modification and refuses to allow for deviations in pattern design which could be reversed in secondary machining processes it is not the fault of a casting facility that the parts as designed could not be produced error free. It is a unique condition of a part that has never been attempted before.

    Like I said, I am ignorant in such matters and defer to expert opinion. If every layman could do my job I would be without one...
    Respectfully,
    O.A.
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  • -1
    Posted by Robbie53024 10 years, 10 months ago in reply to this comment.
    No disagreement there. But not all outputs of the human mind are patentable. Yet, they are a part of his creativity.

    I agree that they are a fundamental aspect of property rights, but as a sub-set, not the primacy, is all.
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  • Posted by 10 years, 10 months ago in reply to this comment.
    All creation begins, starts with the human mind. All property rights are protecting the property of one's mind. Patents are the most fundamental of all property rights because they are directly tied to the property of the human mind-right at the source, so to speak.
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  • Posted by 10 years, 10 months ago in reply to this comment.
    every inventor who pursues a patent is attempting to gain market advantage. Please distinguish between government enforcement and coercion...
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  • Posted by 10 years, 10 months ago in reply to this comment.
    the ruling will have broad implications, regardless of the poor, intellectually bankrupt decision. Even those siding with CLS, who are experts, and want to limit the eligability of software patents, agree the ruling does not provide guidance on how to determine eligability and has directly contradicted earlier decisions. It's a hot mess. If you were the CEO/inventor for Alice, after spending thousands and many years to get the patent, to be stolen from (CLS does not deny infringing) only to have your property stripped from you(after spending millions to defend the patent), would you ever file for another one? If you are a VC company, looking at funding tech startups, and you have always used as an objective measure, the patent portfolio as one large measure to determine the company's value (after all you are investing in the technology), and you are aware of this ruling, has your investment risk gone up or down? Your business model has certainly changed. and a high tech startup relying on its intellectual property portfolio, has just watched all the locks removed from their house, and the police will not only NOT show up to arrest the robbers but will charge you for the courtesy of looking around and determining-it wasn't your stuff in the first place.
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  • Posted by dbhalling 10 years, 10 months ago in reply to this comment.
    Mike you are not listening. An invention is a human creation with an object result. Mathematics does not have an objective result, it is just descriptive.
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  • Posted by Zenphamy 10 years, 10 months ago in reply to this comment.
    I don't now nor ever have supported any type or sort of moocher and have struggled against many throughout my career. I fully understand and support valid property rights, created, earned, or procured by voluntary agreement.

    We simply disagree on who was the moocher or if there was a proper invention providing for property rights in the instant case. You obviously support Alice's proposition that they invented something - I don't.

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  • Posted by Robbie53024 10 years, 10 months ago in reply to this comment.
    That would seem to be backwards. Property rights exist. Patenting is a methodology for defining a type of property rights (a sub-set).
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  • Posted by 10 years, 10 months ago in reply to this comment.
    "moochers that attempt to gain market advantages utilizing government coercion..."
    a government which does not enforce property rights is no government. It is anarchy
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