Software Patents:
Who's Behind the Curtain?




                           SCALE
                        2.23.2013
                   Deb Nicholson
Part 1:
Where do patents come from?
How do we
  measure
innovation?
Patents, Products, or
              Ideas?
The 10 cent patent history lesson
Behind thecurtainscale2013
Behind thecurtainscale2013
Behind thecurtainscale2013
Part 2:
More money, more problems
Un-spoiler alert

- Patent suits are costing us
 a lot of money
- Activity is increasing, not
decreasing
- Lawsuits aren't spurring
innovation
- Developers are fed up
“...annual wealth lost from
NPE lawsuits was about $80
         billion...”


         (Bessen et al. 2011)
Patent suits involving “NPEs”




Source: PatentFreedom © 2013. Data captured as of January 18, 2013.
The number of patent
actions filed reached 4,015 in
             2011.


       (PwC 2012 Patent Litigation Study)
Utility patents granted each year




                   Source: PatentFreedom © 2013. Data captured as of January 18, 2013.
“spurring innovation”
Avoiding thickets,
   rewriting code and
  pulling features out
is time-consuming and
 un-fun for developers.
More recent developments
   - Patent aggression entities
     are getting bigger
   - Targets are getting smaller
   - Stack vs. special sauce
1,300 shell
       companies at
Intellectual Ventures
"...patent trolls... are increasingly
          targeting users and adopters,
     rather than makers of the technology:
         this tactic is used an estimated
                 40% of the time."



Colleen V. Chien: Tailoring the Patent System to Work for Software and Technology Patents
Part 3:
A solution for every pot
The current standard for
     patentability
The current standard for
     patentability
- Patentable subject matter: new
  and useful, no algorithms
The current standard for
     patentability
- Patentable subject matter: new
  and useful, no algorithms

- Novel: you can't patent something
  people are already using
The current standard for
     patentability
- Patentable subject matter: new
  and useful, no algorithms

- Novel: you can't patent something
  people are already using

- Non-obvious: it can't be obvious
  to someone in that field
The current standard for
     patentability
- Patentable subject matter: new
  and useful, no algorithms

- Novel: you can't patent something
  people are already using

- Non-obvious: it can't be obvious
  to someone in that field

- Useful: must have utility and be possible
Here comes
 the judge?
Big solutions == big money
Judicial Solutions

- Lower the plaintiff's incentive to sue
Judicial Solutions

- Lower the plaintiff's incentive to sue

- Set precedent that better upholds
  the existing statute
Judicial Solutions

- Lower the plaintiff's incentive to sue

- Set precedent that better upholds
  the existing statute

- Set precedent that treats software
  patents differently than
  other patents
We oughta
pass a law!
Congress also ain't cheap
Legislative Solutions

- Improve the America Invents Act
Legislative Solutions

- Improve the America Invents Act

- Get rid of patents altogether,
  or just software patents
Legislative Solutions

- Improve the America Invents Act

- Get rid of patents altogether,
  or just software patents

- Make the plaintiff pay the legal fees,
  aka SHIELD
Legislative Solutions

- Improve the America Invents Act

- Get rid of patents altogether,
  or just software patents

- Make the plaintiff pay the legal fees,
  aka SHIELD

- Raise patent or maintenance fees
Doesn't the government
have “people” for that?
Policy Solutions



Basically, how can the USPTO enforce
 the existing statute in a helpful way?
Policy Solutions
- Require written descriptions
  and definiteness
Policy Solutions
- Require written descriptions
  and definiteness

- Allot more resources for software
Policy Solutions
- Require written descriptions
  and definiteness

- Allot more resources for software

- Stop assuming validity
Policy Solutions
- Require written descriptions
  and definiteness

- Allot more resources for software

- Stop assuming validity

- The Federal Trade Commission
  could step in
Community
  (whoo!)
Freedom isn't free
Ok, actually it is free,
but it requires some work
Community Solutions

- Defensive patent pool (OIN)
Community Solutions

- Defensive patent pool (OIN)

- Identify relevant prior art
Community Solutions

- Defensive patent pool (OIN)

- Identify relevant prior art

- Defensive Patent License (DPL)
Community Solutions

- Defensive patent pool (OIN)

- Identify relevant prior art

- Defensive Patent License (DPL)

- Continue to build awareness and
  draw attention to the problem
For your reading "pleasure"
  Colleen V. Chien: Reforming Software Patents
              (Houston Law Review)
Tom Ewing & Robin Feldman: The Giants Among Us
              (Stanford Law Review)
Dan L. Burk & Mark A. Lemley: The Patent Crisis and
           How the Courts Can Solve It
Picture Credits
                          CC-BY
    Green Curtain by Prairie Kitten, Ruler by Sterlic
   Parchment Paper by Temari09, Cargill Pool Grain
   Elevator by amerune, Dad's Teeth by Spider Dog,
   Chill Pill by mirjoran, Dark Ice by dcdailyphotos,
Feeding Turtles by Ollie Crafoord, SCOTUS Stairs by Phil
   Roeder, Overview by jcbmac, Trust Fall by Vos Efx
                     Road by Jo@net

                      CC-BY-SA
          Lightbulb by eoin, Wet Grass by qgil

        Graphs source: PatentFreedom © 2013.
         Data captured as of January 18, 2013
For your reading "pleasure"
  Colleen V. Chien: Reforming Software Patents
              (Houston Law Review)
Tom Ewing & Robin Feldman: The Giants Among Us
              (Stanford Law Review)
Dan L. Burk & Mark A. Lemley: The Patent Crisis and
           How the Courts Can Solve It
Thanks!
deb@openinventionnetwork.com

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Behind thecurtainscale2013