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Gary Edwards

The True Story of How the Patent Bar Captured a Court and Shrank the Intellectual Commo... - 1 views

  • The change in the law wrought by the Federal Circuit can also be viewed substantively through the controversy over software patents. Throughout the 1960s, the USPTO refused to award patents for software innovations. However, several of the USPTO’s decisions were overruled by the patent-friendly U.S. Court of Customs and Patent Appeals, which ordered that software patents be granted. In Gottschalk v. Benson (1972) and Parker v. Flook (1978), the U.S. Supreme Court reversed the Court of Customs and Patent Appeals, holding that mathematical algorithms (and therefore software) were not patentable subject matter. In 1981, in Diamond v. Diehr, the Supreme Court upheld a software patent on the grounds that the patent in question involved a physical process—the patent was issued for software used in the molding of rubber. While affirming their prior ruling that mathematical formulas are not patentable in the abstract, the Court held that an otherwise patentable invention did not become unpatentable simply because it utilized a computer.
  • In the hands of the newly established Federal Circuit, however, this small scope for software patents in precedent was sufficient to open the floodgates. In a series of decisions culminating in State Street Bank v. Signature Financial Group (1998), the Federal Circuit broadened the criteria for patentability of software and business methods substantially, allowing protection as long as the innovation “produces a useful, concrete and tangible result.” That broadened criteria led to an explosion of low-quality software patents, from Amazon’s 1-Click checkout system to Twitter’s pull-to-refresh feature on smartphones. The GAO estimates that more than half of all patents granted in recent years are software-related. Meanwhile, the Supreme Court continues to hold, as in Parker v. Flook, that computer software algorithms are not patentable, and has begun to push back against the Federal Circuit. In Bilski v. Kappos (2010), the Supreme Court once again held that abstract ideas are not patentable, and in Alice v. CLS (2014), it ruled that simply applying an abstract idea on a computer does not suffice to make the idea patent-eligible. It still is not clear what portion of existing software patents Alice invalidates, but it could be a significant one.
  • Supreme Court justices also recognize the Federal Circuit’s insubordination. In oral arguments in Carlsbad Technology v. HIF Bio (2009), Chief Justice John Roberts joked openly about it:
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  • The Opportunity of the Commons
  • As a result of the Federal Circuit’s pro-patent jurisprudence, our economy has been flooded with patents that would otherwise not have been granted. If more patents meant more innovation, then we would now be witnessing a spectacular economic boom. Instead, we have been living through what Tyler Cowen has called a Great Stagnation. The fact that patents have increased while growth has not is known in the literature as the “patent puzzle.” As Michele Boldrin and David Levine put it, “there is no empirical evidence that [patents] serve to increase innovation and productivity, unless productivity is identified with the number of patents awarded—which, as evidence shows, has no correlation with measured productivity.”
  • While more patents have not resulted in faster economic growth, they have resulted in more patent lawsuits.
  • Software patents have characteristics that make them particularly susceptible to litigation. Unlike, say, chemical patents, software patents are plagued by a problem of description. How does one describe a software innovation in such a way that anyone searching for it will easily find it? As Christina Mulligan and Tim Lee demonstrate, chemical formulas are indexable, meaning that as the number of chemical patents grow, it will still be easy to determine if a molecule has been patented. Since software innovations are not indexable, they estimate that “patent clearance by all firms would require many times more hours of legal research than all patent lawyers in the United States can bill in a year. The result has been an explosion of patent litigation.” Software and business method patents, estimate James Bessen and Michael Meurer, are 2 and 7 times more likely to be litigated than other patents, respectively (4 and 13 times more likely than chemical patents).
  • Software patents make excellent material for predatory litigation brought by what are often called “patent trolls.”
  • Trolls use asymmetries in the rules of litigation to legally extort millions of dollars from innocent parties. For example, one patent troll, Innovatio IP Ventures, LLP, acquired patents that implicated Wi-Fi. In 2011, it started sending demand letters to coffee shops and hotels that offered wireless Internet access, offering to settle for $2,500 per location. This amount was far in excess of the 9.56 cents per device that Innovatio was entitled to under the “Fair, Reasonable, and Non-Discriminatory” licensing promises attached to their portfolio, but it was also much less than the cost of trial, and therefore it was rational for firms to pay. Cisco stepped in and spent $13 million in legal fees on the case, and settled on behalf of their customers for 3.2 cents per device. Other manufacturers had already licensed Innovatio’s portfolio, but that didn’t stop their customers from being targeted by demand letters.
  • Litigation cost asymmetries are magnified by the fact that most patent trolls are nonpracticing entities. This means that when patent infringement trials get to the discovery phase, they will cost the troll very little—a firm that does not operate a business has very few records to produce.
  • But discovery can cost a medium or large company millions of dollars. Using an event study methodology, James Bessen and coauthors find that infringement lawsuits by nonpracticing entities cost publicly traded companies $83 billion per year in stock market capitalization, while plaintiffs gain less than 10 percent of that amount.
  • Software patents also reduce innovation in virtue of their cumulative nature and the fact that many of them are frequently inputs into a single product. Law professor Michael Heller coined the phrase “tragedy of the anticommons” to refer to a situation that mirrors the well-understood “tragedy of the commons.” Whereas in a commons, multiple parties have the right to use a resource but not to exclude others, in an anticommons, multiple parties have the right to exclude others, and no one is therefore able to make effective use of the resource. The tragedy of the commons results in overuse of the resource; the tragedy of the anticommons results in underuse.
  • In order to cope with the tragedy of the anticommons, we should carefully investigate the opportunity of  the commons. The late Nobelist Elinor Ostrom made a career of studying how communities manage shared resources without property rights. With appropriate self-governance institutions, Ostrom found again and again that a commons does not inevitably lead to tragedy—indeed, open access to shared resources can provide collective benefits that are not available under other forms of property management.
  • This suggests that—litigation costs aside—patent law could be reducing the stock of ideas rather than expanding it at current margins.
  • Advocates of extensive patent protection frequently treat the commons as a kind of wasteland. But considering the problems in our patent system, it is worth looking again at the role of well-tailored limits to property rights in some contexts. Just as we all benefit from real property rights that no longer extend to the highest heavens, we would also benefit if the scope of patent protection were more narrowly drawn.
  • Reforming the Patent System
  • This analysis raises some obvious possibilities for reforming the patent system. Diane Wood, Chief Judge of the 7th Circuit, has proposed ending the Federal Circuit’s exclusive jurisdiction over patent appeals—instead, the Federal Circuit could share jurisdiction with the other circuit courts. While this is a constructive suggestion, it still leaves the door open to the Federal Circuit playing “a leading role in shaping patent law,” which is the reason for its capture by patent interests. It would be better instead simply to abolish the Federal Circuit and return to the pre-1982 system, in which patents received no special treatment in appeals. This leaves open the possibility of circuit splits, which the creation of the Federal Circuit was designed to mitigate, but there are worse problems than circuit splits, and we now have them.
  • Another helpful reform would be for Congress to limit the scope of patentable subject matter via statute. New Zealand has done just that, declaring that software is “not an invention” to get around WTO obligations to respect intellectual property. Congress should do the same with respect to both software and business methods.
  • Finally, even if the above reforms were adopted, there would still be a need to address the asymmetries in patent litigation that result in predatory “troll” lawsuits. While the holding in Alice v. CLS arguably makes a wide swath of patents invalid, those patents could still be used in troll lawsuits because a ruling of invalidity for each individual patent might not occur until late in a trial. Current legislation in Congress addresses this class of problem by mandating disclosures, shifting fees in the case of spurious lawsuits, and enabling a review of the patent’s validity before a trial commences.
  • What matters for prosperity is not just property rights in the abstract, but good property-defining institutions. Without reform, our patent system will continue to favor special interests and forestall economic growth.
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    "Libertarians intuitively understand the case for patents: just as other property rights internalize the social benefits of improvements to land, automobile maintenance, or business investment, patents incentivize the creation of new inventions, which might otherwise be undersupplied. So far, so good. But it is important to recognize that the laws that govern property, intellectual or otherwise, do not arise out of thin air. Rather, our political institutions, with all their virtues and foibles, determine the contours of property-the exact bundle of rights that property holders possess, their extent, and their limitations. Outlining efficient property laws is not a trivial problem. The optimal contours of property are neither immutable nor knowable a priori. For example, in 1946, the U.S. Supreme Court reversed the age-old common law doctrine that extended real property rights to the heavens without limit. The advent of air travel made such extensive property rights no longer practicable-airlines would have had to cobble together a patchwork of easements, acre by acre, for every corridor through which they flew, and they would have opened themselves up to lawsuits every time their planes deviated from the expected path. The Court rightly abridged property rights in light of these empirical realities. In defining the limits of patent rights, our political institutions have gotten an analogous question badly wrong. A single, politically captured circuit court with exclusive jurisdiction over patent appeals has consistently expanded the scope of patentable subject matter. This expansion has resulted in an explosion of both patents and patent litigation, with destructive consequences. "
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    I added a comment to the page's article. Patents are antithetical to the precepts of Libertarianism and do not involve Natural Law rights. But I agree with the author that the Court of Appeals for the Federal Circuit should be abolished. It's a failed experiment.
Gonzalo San Gil, PhD.

Free Music Streaming Site Revives Grooveshark Magic, And More - TorrentFreak - 0 views

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    "StreamSquid is a new service which allows users to stream music for free, using legal services such as YouTube and Soundcloud as a backbone. The streaming platform has an intuitive user interface that allows people to discover new music and manage their own playlists. As an added bonus, former Grooveshark users can revive their playlists in just one click."
Gary Edwards

Design for Developers: Interactivity, animations, and AJAX - 0 views

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    Awesome commentary in the must read category. JC nails it; starting with "layout"! ....... "We were both part of the same team and he was creating some UI elements that I was to wire up. As I sat there (in awe) watching him work I realized that much of his considerable skill was rooted in fundamentals not unlike the art of programming. Of course, there are design skills that are intuitive that can't be "learned." But, that can also be said of the logical clarity found in a really elegant data model or a brilliant inheritance tree. I am certainly no designer, but I have observed the more creative among us for several years and have gained some insight into their world. In this article I'll share some basic principles that can help raise your design acumen and improve the experience of your users...... " Layout I'd like to attack my goal of imparting design wisdom by breaking the topic into four buckets. The first is layout.
Paul Merrell

The People and Tech Behind the Panama Papers - Features - Source: An OpenNews project - 0 views

  • Then we put the data up, but the problem with Solr was it didn’t have a user interface, so we used Project Blacklight, which is open source software normally used by librarians. We used it for the journalists. It’s simple because it allows you to do faceted search—so, for example, you can facet by the folder structure of the leak, by years, by type of file. There were more complex things—it supports queries in regular expressions, so the more advanced users were able to search for documents with a certain pattern of numbers that, for example, passports use. You could also preview and download the documents. ICIJ open-sourced the code of our document processing chain, created by our web developer Matthew Caruana Galizia. We also developed a batch-searching feature. So say you were looking for politicians in your country—you just run it through the system, and you upload your list to Blacklight and you would get a CSV back saying yes, there are matches for these names—not only exact matches, but also matches based on proximity. So you would say “I want Mar Cabra proximity 2” and that would give you “Mar Cabra,” “Mar whatever Cabra,” “Cabra, Mar,”—so that was good, because very quickly journalists were able to see… I have this list of politicians and they are in the data!
  • Last Sunday, April 3, the first stories emerging from the leaked dataset known as the Panama Papers were published by a global partnership of news organizations working in coordination with the International Consortium of Investigative Journalists, or ICIJ. As we begin the second week of reporting on the leak, Iceland’s Prime Minister has been forced to resign, Germany has announced plans to end anonymous corporate ownership, governments around the world launched investigations into wealthy citizens’ participation in tax havens, the Russian government announced that the investigation was an anti-Putin propaganda operation, and the Chinese government banned mentions of the leak in Chinese media. As the ICIJ-led consortium prepares for its second major wave of reporting on the Panama Papers, we spoke with Mar Cabra, editor of ICIJ’s Data & Research unit and lead coordinator of the data analysis and infrastructure work behind the leak. In our conversation, Cabra reveals ICIJ’s years-long effort to build a series of secure communication and analysis platforms in support of genuinely global investigative reporting collaborations.
  • For communication, we have the Global I-Hub, which is a platform based on open source software called Oxwall. Oxwall is a social network, like Facebook, which has a wall when you log in with the latest in your network—it has forum topics, links, you can share files, and you can chat with people in real time.
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  • We had the data in a relational database format in SQL, and thanks to ETL (Extract, Transform, and Load) software Talend, we were able to easily transform the data from SQL to Neo4j (the graph-database format we used). Once the data was transformed, it was just a matter of plugging it into Linkurious, and in a couple of minutes, you have it visualized—in a networked way, so anyone can log in from anywhere in the world. That was another reason we really liked Linkurious and Neo4j—they’re very quick when representing graph data, and the visualizations were easy to understand for everybody. The not-very-tech-savvy reporter could expand the docs like magic, and more technically expert reporters and programmers could use the Neo4j query language, Cypher, to do more complex queries, like show me everybody within two degrees of separation of this person, or show me all the connected dots…
  • We believe in open source technology and try to use it as much as possible. We used Apache Solr for the indexing and Apache Tika for document processing, and it’s great because it processes dozens of different formats and it’s very powerful. Tika interacts with Tesseract, so we did the OCRing on Tesseract. To OCR the images, we created an army of 30–40 temporary servers in Amazon that allowed us to process the documents in parallel and do parallel OCR-ing. If it was very slow, we’d increase the number of servers—if it was going fine, we would decrease because of course those servers have a cost.
  • For the visualization of the Mossack Fonseca internal database, we worked with another tool called Linkurious. It’s not open source, it’s licensed software, but we have an agreement with them, and they allowed us to work with it. It allows you to represent data in graphs. We had a version of Linkurious on our servers, so no one else had the data. It was pretty intuitive—journalists had to click on dots that expanded, basically, and could search the names.
munna1357

Crocodile Attack on food people screem around the way. - YouTube - 1 views

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    Crocodiles are brilliant animals. They have been around since the season of the dinosaurs, and they have taken this opportunity to consul themselves into a definitive executing machines. They are bosses of disguise, solid, and if necessary they can abandon sustenance for quite a while. They are the animals of numerous individuals' bad dreams. However, when you are cautious around crocodile domain, you don't need to dread them, you can simply appreciate them for what they are, the guardians of the waterways. What's more, please add to crocodile protection.  The entire group of various species is known as the 'crocodilians'. This incorporates salt-water crocodiles, new water crocodiles, gators, gharials and caimans. At present there are 23 unique types of crocodilians around the globe. The majority of these are imperiled however, in light of the fact that human development is gradually assuming control over their region. This implies lodging improvements are worked around the waterways where they live, and crocodilians are pursued out. This is a disgrace, and unbalances the entire eco-frameworks of these waterways. Numerous other creature species have adjusted to the crocodiles around them, and crocs live by the tenet of the fittest will survive. They eat feeble and wiped out creatures. Crocodile protection is critical and merits much more consideration than it as of now gets.
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