software patent litigation: what have we learned? fosdem 2015
TRANSCRIPT
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Software Patent Litigation: What have we learned?
Deb NicholsonOpen Invention Network
FOSDEM January 31, 2015
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I am not a lawyer.
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Not invited to secret international treaty meetings.
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Big Picture
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300,000 patents were granted in the US
in the last year
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99 problems, but an invention ain't one
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U.S. Utility Patents Issued Over Time, courtesy of www.patentfreedom.com
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About 50% percent of those were given to inventors
outside the US
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Global Trends
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Software Patents Issued To Date
US: 799,050
Australia: 53,278
European Patent Office: 108,977
China: 9,860
Korea: 2,362
Canada: 2,109
Japan: 1,993
Great Britain: 672
Germany: 606
From lens.org, on Jan. 30th, 2015
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Source: Stefania Fusco, Markets and Patent Enforcement: A ComparativeInvestigation of Non-Practicing Entities in the United States and Europe,
20 M ICH . T ELECOMM . & T ECH . L. R EV . 439 (2014)
Trolls are bringing 11% of UK suits
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Foreign inventors are very successful in the US courts
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Even if you win, getting sued sucks
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Barristers & Bottomfeeders
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Contingent fee representation is on the rise
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“Even with a 40% contingent share, we need at least $5
million in damages to break even.”
The Rise of Contingent Fee Legislation, David L. Schwarz (2012)
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The economy even affects lawyers
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Many firms go after weaker defendants first
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Smaller firms go with quantity over quality
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Judges & Juries
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"Understanding the realities of Modern Patent Litigation" (2014 : Allison, Lemley & Schwartz)
In the 90's defendants needed to find prior art or prove that their work was out of scope
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Data from 2008 and 2009, Alison, Lemley & Schwartz (2014)
54% of suits won by the defendant via
non-patentable subject matter
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Alice v. CLS Bank ruling: generic computer implementation
isn't patentable
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"The Supreme Court recently reaffirmed that fundamental concepts, by
themselves, are ineligible abstract ideas."
Federal Circuit, Digitech Image v. Electronics for Imaging, Inc. June 2014
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17% of defendant wins are via indefiniteness
Data from 2008 and 2009, Alison, Lemley & Schwartz (2014)
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Nautilus v. Biosig ruling: vague patents aren't enforceable
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Tunnel Vision vs. Specialization
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More experience with patent suits makes judges less likely
to rule for patent-holders
Does Familiarity Breed Contempt Among Judges Deciding Patent Cases?, Mark A. Lemley, Su Li, and Jennifer M. Urban, 2013
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Juries are another story...
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Judges tend to rule for the patentee only half the time
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Juries rule for the patentee over two-thirds of the time
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Today over 70% of patent cases are heard by juries
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It used to be closer to 5%
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What's working
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Germany and New Zealand have put strict limits on
patentability
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Sometimes democracy works!
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Courtesy of patentprogress.org
States Acting Against Bad Faith Patent
Infringement Assertions (as of 10/08/2014)
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The Open Invention Network
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Homework
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Patent-busting siteshttp://linuxdefenders.org/https://trollingeffects.org/
http://patents.stackexchange.com/
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Defensive publications
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Pass laws if you can
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Further reading Markets and Patent Enforcement: A Comparative Investigation of Non-Practicing Entities in the United
States and Europe by Stefania Fusco (2014)
Understanding the Realities of Modern Patent Litigation by Allison, Lemley and Schwartz (2014)
The Rise of Contingent Fee Representation in Patent Litigation by David L. Schwartz (2012)
Does Familiarity Breed Contempt Among Judges Deciding Patent Cases?, Mark A. Lemley, Su Li, and
Jennifer M. Urban, 2013
Tons of stuff at Lens.org
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Picture and Font CreditsUS Transparency Legislation, courtesy of www.patentprogress.com
U.S. Utility Patents Issued Over Time & Operating Company Parties in NPE Lawsuits Over Time,
courtesy of www.patentfreedom.com
CC.BYBlackboard by J. Neuber – Butterfly on Bed by Maxintosh – Ambulance In
Motion by Benjamin Ellis – Chalk Flag by Eric Herman – Emptied Piggy Bank by Eden, Janine and Jim – Chalk Maze by Eli Christman – Chalkzilla by
Alexander Affleck(all from Flickr)
CC.BY.SAPurple Haze by Joey Gannon (from Flickr)
Fair UseThe Incredible Hulk and Bruce Banner both belong to Marvel, Benedict
Cumberbatch as Sherlock also doesn't belong to me
Public DomainAmerican Gothic by Grant Wood from the Google Art Project
Fonts: Anke (OFL) & Sorts Mill Goudy (MIT)