Patent pending: New law could help or hurt IT innovators

 

Connecting state and local government leaders

Proponents say it will lower costs by reducing litigation. Opponents say it puts small organizations and individuals at a disadvantage and won't stop patent trolls.

After a seven-year debate, President Barack Obama has signed into law the Leahy-Smith America Invents Act, the first major reform of the U.S. patent system in years. But whether the reforms will spur innovative technology — or rein in litigation — remains debatable.

The law “makes some seemingly sweeping changes, but a closer examination shows that the courts have already done much of the job for Congress,” Kirk Tesca writes in IEEE Spectrum. Teska is an adjunct law professor at Suffolk University Law School and is the managing partner of Iandiorio, Teska & Coleman, an intellectual property law firm in Waltham, Mass. IEEE, the Institute of Electrical and Electronics Engineers, is a nonprofit association for advancing technology innovation.


Related stories:

The weaponization of patents

Protect IP Act would create a lot of criminals


The biggest change the law makes is the move to a first-to-file system, rather than first-to-invent. In a first-to-invent system, patents are awarded based on who thought of it first, which when in dispute can tie things up in court. In a first-to-file system, which is used internationally, patents are awarded to the first person who files for it. Adoption of the first-to-file system will be delayed for 18 months.

Proponents of the change say it will lower costs, by reducing or eliminating court hearings on which entity first conceived of an idea. Opponents, however, believe the change puts smaller organizations and individuals at a disadvantage without radically reducing litigation.

“It’s true that an ‘interference’ — the proceeding in which the patent office decides which of two applicants was the first to invent something, and thus the winner of a patent — is both expensive and time consuming,” Tesca writes. “But interferences don’t happen very often (for less than one-tenth of one percent of the half million patent applications filed each year), and in the vast majority of cases, the first filer wins anyway. ... Maybe that’s why patent reform has languished — it seems to propose solutions to problems we don’t really have.”

And although the law adds new procedures for challenging patents, “these procedures offer few practical chances for ordinary people who don’t constantly monitor the Patent Office,” blogged Julie Samuels, Electronic Frontier Foundation staff attorney.

“The new law will do virtually nothing to fix many of the system’s fundamental problems,” Samuels writes. “The legislation wholly fails to address many of the biggest problems plaguing the patent system, especially the problem of patent trolls. This is especially troubling now, as trolls are targeting small app developers, driving some of those developers out of the U.S. market entirely.”

Patent trolls – companies that make money by suing for patent infringement – are rampant in the technology sector. And big name companies such as Microsoft, Apple and Google are often embroiled in lawsuits, as both plaintiff and defendant.

Microsoft and Google recently have been involved in a high-profile wrangle with each other over patents and Google’s Android platform, although that spat so far has been a public relations battle rather than a court fight.

One reason technology patent disputes are so common is that every IT innovation uses and builds upon other technologies, making it difficult, if not impossible, to establish clear delineations between patents, wrote GCN’s William Jackson.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.