back to article Trade body, universities row over US patent troll act proposals

A spat has erupted between US universities and the trade body representing the $286bn (£193bn) consumer electronics industry, over a proposed crackdown on patent trolls. The row is centered upon the proposed Innovation Act, a bill which collapsed and died last spring in the Democratic-controlled Senate, but which has now been …

  1. Ian Michael Gumby

    Time to copy the UK...

    The US needs a loser pays system.

    This raises the risk of taking a lawsuit forward in court.

    The other thing is that there has to be an easier way to challenge software patents and business process patents.

    In fact, these shouldn't be patentable in the first place. By fixing this error, the number of patent related lawsuits will drop.

    Then when you see something like Marvel's loss, you realize that CMU was correct in asserting their rights over a hardware patent.

    1. Yet Another Anonymous coward Silver badge

      Re: Time to copy the UK...

      >The US needs a loser pays system.

      They already do for civil cases like patents.

      The problem is that the troll can just create a paper company that owns only the single patent, if it loses it goes bankrupt since the patent is worthless anyway.

      But Sony/Apple/IBM against a lone inventor can just put armies of their internal lawyers onto a case so that the legal costs are $1M/day. They can then ask that the judge force the nasty inventor to put up some guarantee against being able to pay their costs if he/she loses.

      Lone inventor can't do this and judge throws out case.

      1. Anonymous Coward
        Anonymous Coward

        Re: Time to copy the UK...

        The problem is that the troll can just create a paper company that owns only the single patent, if it loses it goes bankrupt since the patent is worthless anyway.

        This is a muppet judge problem, not a system problem. The judge is entitled to request that the claimant(s) post a bond in cases like this. While this is quite common in Eu, I have yet to see a single USA patent case where this was requested.

  2. This post has been deleted by its author

    1. Nunyabiznes

      Nailed it.

      This. Let's reform the Patent Office first. Then we can go after existing patents that should not have been granted in the first place. That will destroy the patent troll industry without making another law that can be twisted by unscrupulous attorneys (redundant I know) and various greedy non-producers.

  3. Anonymous Coward
    Anonymous Coward

    Inventor based system

    Maybe a legal system which has the inventor in control of the IP would reduce these cases?

    No matter what happens to the sale of the patent or original artwork rights, the inventor gets final say.

    When a patent is in dispute between the rights holder and possible copy, the inventor gets a say in court about whether it infringes his/her original concept.

    If a patent is in dispute between two inventors, then the courts need to decide if they were independently created or copied. A proof of knowledge would be needed. What is your history in X patients field? How did you come to up with this? Why did you add the feature?

    This simplification would give the inventor greater power over their creation as well as more opportunities for reward.

    .

    Major downside would be that CEOs & lawyers will become over-night prolific inventors.

    1. Anonymous Coward
      Anonymous Coward

      Re: Inventor based system

      There is already a system where the inventor has control of their IP - the current one. They are free to, for example, sell their intellectual PROPERTY to somebody else to exploit.

      I imagine few people would accept downstream rights over their physical property, even though corporations might like it. When I buy a car, the manufacturer can't tell me what I can do with it, or who I can sell it to. When I buy a house, the previous owner can't tell me what colour to paint it.

      Corporations would love this sort of control, and are trying to implement it, by preventing people from selling software secondhand, for example. Consumers are less happy, in general.

      1. Marshalltown

        Re: Inventor based system

        Another idea would be to simply ban the sale of patents or copyrights outright. The originator can license reproduction or use, but cannot sell or exclusively license a patent. Corporations funding original work become partially credited with a minority right in patents and copyrights but cannot claim any IP exclusively, because a corporation (a fictive entity) cannot do creative work, since they are fictions. The members of the team creating a patentable development are credited evenly and any licensing fees must be shared between all developing members with any funding entity receving a share of less than - say - 30% of the license fee. Claims by third parties without a documented development role of either creative or funding character are voided. Thus inventors and funders do get a share in any creative work and can never lose their rights, patent trolls are out of business and with an appropriate term limit for both patents and copyrights, creative work is also encouraged.

      2. Paul Cooper
        Big Brother

        Re: Inventor based system

        Well, a developer selling a house on an estate in the UK certainly CAN tell you what colour to paint it, and often does if it can be justified to maintain a certain overall appearance of the estate. Such covenants are usually time-limited and CAN be challenged, but they certainly exist - there was one on a house I bought in the 1980s.

  4. 's water music

    wait wat

    Gary Shapiro... ...added: “Universities should focus on strengthening our nation’s patent system to ensure taxpayer-funded patents are not being used to extort the very companies and entrepreneurs that hire graduates, and contribute to university research or support these institutions as alumni donors.”

    Gary seems to be conflating two issues: Patent trolls are a pain in the arse. Technology patented by tax funded institutions taste good.

    He'll be pleased I pointed that out. He can't be saying it because the solution to one helps his industry with the other?

    1. Yet Another Anonymous coward Silver badge

      Re: wait wat

      Patent troll = non-producing entity = somebody who just owns patents but doesn't make anything = sounds a lot like a university.

      It's doubly annoying when you ,as a company, pay taxes which fund universities which then patent basic software algorithms and stop you using them.

      1. Jagged

        Re: wait wat

        "somebody who just owns patents but doesn't make anything = sounds a lot like a university."

        - No. When Universities own patents, that's because they did the bloody research. Big difference between them and patent trolls

        1. Yet Another Anonymous coward Silver badge

          Re: wait wat

          Patent troll = company that paid me for my patent and then tries to market it.

          University = I pay taxes to fund a researcher to work on a problem. University then owns IP and patents it, University's IP exploitation office then stops me using it. Ironically they also stop the researcher who had the idea using it themselves.

          One of the reasons I stopped working for universities is the quarterly rounds of slick-suited IP specialists going through the lab demanding a list of anything patentable and forcing ever more restrictive contracts on your ownership of any ideas you have.

          1. tfewster
            Facepalm

            Re: wait wat @YAAC and Gary Cheapiro

            I'm delighted that the Universities and research I help fund through taxes is being monetised. If you don't want to use [their|my] IP, do your own damn R&D and try to compete on cost with other businesses who just pay a fair licencing fee.

            1. Jagged

              Re: wait wat @YAAC and Gary Cheapiro

              "I'm delighted that the Universities and research I help fund through taxes is being monetised. If you don't want to use [their|my] IP, do your own damn R&D and try to compete on cost with other businesses who just pay a fair licencing fee."

              Totally agree. Plus if you think that any IP created by a government grant does not grant access to that IP by the government, you are living in a different world. People seem to be upset that "they" don't get it for free. Sorry, not happening.

              1. Yet Another Anonymous coward Silver badge

                Re: wait wat @YAAC and Gary Cheapiro

                Even people who don't want everything for free might be a little annoyed when they "the people" pay for something like the human genome project and find that one of the universities in the project was patenting all the genes it found - even without knowing what they were for.

                So when a later researcher discovers that the gene predicts breast cancer they are prevented from working on it because university A "owns" it, and when they publish the research nobody else can make a test using the gene.

                1. Jagged

                  Re: wait wat @YAAC and Gary Cheapiro

                  "one of the universities in the project was patenting all the genes it found"

                  - Not aware of any Universities holding patents on human genes. I am aware of "Myriad Genetics", a Utah company, who attempted to isolate gene testing using a churn-the-handle process to create isolated DNA, which they then patented, which had the effect of stopping anyone else producing tests for the same DNA. This has since been kicked out by the US Supreme Court.

                  1. Yet Another Anonymous coward Silver badge

                    Re: wait wat @YAAC and Gary Cheapiro

                    It was the reason Watson (of Watson and Crick) resigned from the original HGP - http://www.nature.com/nature/journal/v405/n6790/full/405983b0.html

                    On the other hand if my lab had patented DNA itself (along with the electron, and neutron and the atomic nucleus) we might be better funded.

            2. Marshalltown

              Re: wait wat @YAAC and Gary Cheapiro

              A good many of the complaining unies are not public and are not funded through taxes.

        2. tom dial Silver badge

          Re: wait wat

          In the US a good deal of the money that funds university conducted research is from grants issued by government (mostly federal) agencies. I suggest requiring patents granted as a result of such research be required to be licensed in the US under a patent analogue of the GPL. That might disappoint the universities and those who create companies based on the taxpayer funded research, but might abort future abominations like Myriad Genetics, which sold BRCA tests for ~$3K that other companies would have offered profitably for a tenth of that or less.

        3. Marshalltown

          Re: wait wat

          "- No. When Universities own patents, that's because they did the bloody research. Big difference between them and patent trolls..."

          Universities are fictive entities. They don't do creative work. At best they help fund it. So, no there is a "difference" between universities and patent trolls, but not a "big" one.

        4. wayward4now

          Re: wait wat

          "- No. When Universities own patents, that's because they did the bloody research. Big difference between them and patent trolls"

          Except that taxpayers fund the Universities while they get to own the patents. Huh?? To put it into perspective, substitute "taxpayers" with the word "investors". As "investors" we are getting stiffed.

  5. Domino

    So students get to spend thousands to learn something they won't be able to use unless they spend further thousands on a patent license?

    Not to mention some of those patents are no doubt student inspired, which raises red flags on the "obvious to someone in the craft" stuff that patents aren't supposed to be.

  6. cs94njw

    If a University has spent years doing the research, and come up with something marketable, they don't just sit on it, waiting for someone to fall into their trap.

    They would have advertised and sold the concept to a company, or created a splinter company, and made their money that way.

    If there are IP lawyers scouring Unis for a different way to stand when using a bunson burner, then that takes the piss. Perhaps a patent should have a note of the time/money spent on it?

    1. Yet Another Anonymous coward Silver badge

      It's more the public sector amateurism combined with VC slime-ball approach that many of the university IP offices are taking, and the inability to get a straight answer out of any of them.

      You work in a university, you get a new contract saying the university now owns all your IP.

      So that means I can't contribute to an open source project?

      Yes, erm well no, erm we will get back to you.

      Does this new policy have anything to do with Microsoft paying for your new building ?

      No, erm well erm ....

      You want me to list work that was done at a previous institute but was published after I moved here - on your department rankings? How does this square with them owning the IP?

      I want to attend a conference. The funding body will only pay for the travel if I am presenting a paper. If I present a paper you can't patent anything in it. So I need approval from the IP office before I can say anything in case they want to patent it. And they will respond in 6months.

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