Patent Reform Legislation Aims to End Massive Settlement Fees
By Scott M. Fulton, III | Published April 18, 2007, 5:59 PM
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If the patent reform bill passes, arbitrary metrics of damage such as the formula used to assess $1.5 billion in damages against Microsoft in an MP3 patent suit, could be rendered invalid in Yarowsky's view.
"A court, under this bill, will be ordered to make an evaluation that [measures] the kind of contribution that the invention makes to the overall product. Now...to just assume that the entire product, or the entire 'computer,' times how many computers are sold worldwide - which is exactly the formula that was used in the Microsoft / Alcatel case, unfortunately - is not really a precise way to measure the economic damage, if in fact you find a patent violation."
Yarowsky noted that the patent reform bill is one of the rare pieces of legislation ever introduced before Congress with both wide bipartisan and bicameral support - introduced simultaneously before the Senate and House this afternoon. But it's not without opposition - prior versions of the bill supported by Leahy, Republican Orrin Hatch, and others stalled in the previous Congress.
Steven Miller, vice president and general counsel for Procter & Gamble, issued a statement on behalf of the Coalition for 21st Century Patent Reform - despite its name, an opponent of previous legislation, including Leahy's prior efforts: "We are encouraged that the bills that [Senate Judiciary Committee] Chairman Leahy and [House Internet Subcommittee] Chairman Berman have introduced will allow the legislative process on needed reforms to advance. However, we are concerned the bills as introduced do not adequately address several critical reforms."
The 21st Century Coalition referred curious individuals to the 2004 National Academy of Sciences proposal, entitled "A Patent System for the 21st Century," which itemizes seven principal reforms its authors suggest for the current patent system.
Perhaps the only one of its suggestions the current bill doesn't appear to take into account concerns protection for non-commercial uses for patented innovations. Since the current legislation would have judges assess damages based on market impact, it might overlook situations where innovations may apply to systems where capitalism is not a motivating factor.
But that doesn't appear to be the 21st Coalition's current dispute - in fact, it's difficult to say what that dispute might be, and members of the Patent Fairness Coalition, when asked to comment on that dispute, couldn't do so because they didn't understand it yet.
Jon Yarowsky cautioned the press against painting a black-and-white picture of the dispute, in terms of what he called "tech vs. pharma." Technology companies, his coalition claims, have suffered in the wake of massive judgments; however, pharmaceutical companies such as Johnson & Johnson and Eli Lilly - represented by the 21st Coalition - are often perceived as among the most aggressive patent portfolio defenders.
"In Washington, those kinds of descriptions of a bill, where it's reduced to 'tech vs. pharma,' really don't tell the whole story," remarked Yarowsky. "Our goal - and they should be receptive to it - is not really to favor plaintiffs over defendants, because if you really look at the composition of [our] coalition, you'll see that these companies are every bit as much plaintiffs as they are defendants. That's just the nature of the patent system, especially if you're a productive, innovative company, and you don't just deal with one patent. So I don't think the things that we've supported and continue to support should be anathema to any group, because they could well find themselves on either side of the litigation aisle.
"I think the more these other groups will review what we think is a very balanced start to this bill," he continued, "once you get past the rhetoric and the positioning, I think it'll be appealing to them." Yarowsky's coalition gives the bill a better than 50% chance of passage through both houses of Congress this year.
The first-to-file basis of IP law is really a good idea mainly because it will bring us in line with EU and asian countries. That alone has led to a backlog of stalemates due to differences in how to pursue infringement claims internationally.
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|Disc Link, a subsidiary of Acacia Technologies Group, claims that it's patent number 6,314,574 covers hyperlinks from documents stored on a CD that send users to sites on the web.
http://www.informationwe...amp;cid=RSSfeed_TechWeb
They are suing over hyperlinks on CDs. This is how stupid things have gotten. The whole patent system needs to be thrown out. At the very least I hope a judge tells Disk Link to go die in a fire.
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|I patented the storage of cd's in a plastic case...I'm going to be rich soon!!
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|LMAO....
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|i've got some prior art for them.
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|I patented the "technique" of putting said cd into a "protective case" for storage and shipment/transfer.....and I'm going to wait until you sue for your patent infringers, and then I will sue you for all your worth!!!
Then I am going to sue Microsoft for storing all of their disk media then using that as a medium for disk transfers.
I need a beer...wait does getting a beer infringe on something? ffs!!!
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|First to file, at least is simpler and somewhat easier for the courts to resolve. But it still gives money and power to the big companies who can hire lawyers and pay the fees to file patents. It hurts the little guy who invents something on his own, and it hurts everyone when the courts allow something obvious to be patented, which they do all the time.
The right answer is, no patents at all. There is no need for them anymore. If you invent something, keep it as a secret until you bring the product to market. Your competitors will reverse-engineer it, but it will usually take them a year before they can implement it. And that is if they realize its importance. If they don't notice until they start losing customers, you could have a couple years of a monopoly on the idea. That is plenty to make a nice fortune for yourself, and all you deserve for your invention.
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|The problem is that not every home inventor has the capital to bring something to market. If you invented some sort of software or technological device, logically the next step is to sell the idea to a larger company who can bring it national quickly. If you don't, then exactly what you said will happen, and some big dog will reverse-engineer it and launch before you even get it outside your home market.
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|So, tell me again why large companies with capital and resources would bother to invent things if they had no garantee of protecting them from being copied by others? Why would the "little guy" bother either? Bigger companies would steal their ideas even quicker. At least a patent provides some protection for the little guy. No patent = No protection. Why does everyone think patents are to blame? They're fine. It's judges that need help interpreting what is patentable.
More people murder, rape and steal than infringe patents. Do we throw out those laws also? Why not. They don't do any "good" either it seems.
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|Patent does not give protection. It gives right to sue. Small guy can never sue, it is just too expensive.
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|...and then it's vetoed.
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|...or they disregard it and appeal to a friendly court.
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