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Gonzalo San Gil, PhD.

ISP Wants to Understand Technology Used to Track Pirates | TorrentFreak - 0 views

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    " Andy on November 10, 2014 C: 25 Breaking Legal representatives for ISP iiNet say they want an anti-piracy tracking system put under the microscope. Hundreds of the Aussie service providers customers are at risk of being sent "speculative invoices" demanding cash for alleged infringements but iiNet definitely isn't going to give plaintiff Dallas Buyers Club an easy ride" [# ! Everyb@dy wants # ! … to #understand… # ! …why '#They' don't research for #adapting to the #times # ! instead of #chasing #citizens… # ! Too.]
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    " Andy on November 10, 2014 C: 25 Breaking Legal representatives for ISP iiNet say they want an anti-piracy tracking system put under the microscope. Hundreds of the Aussie service providers customers are at risk of being sent "speculative invoices" demanding cash for alleged infringements but iiNet definitely isn't going to give plaintiff Dallas Buyers Club an easy ride"
Gonzalo San Gil, PhD.

Containers | Red Hat - 0 views

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    "Transform application delivery with containers Increasingly complicated applications-and demands for faster development-are putting even more pressure on your infrastructure, IT teams, and processes."
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    "Transform application delivery with containers Increasingly complicated applications-and demands for faster development-are putting even more pressure on your infrastructure, IT teams, and processes."
Gonzalo San Gil, PhD.

German Publishers Grant Google A 'Free License' Google Never Needed To Post News Snippe... - 2 views

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    "from the well-that-solves-that dept Remember earlier this year when German newspaper publishers, led by rights management firm VG Media, demanded Google pay them a massive amount of money (11% of all ad revenue on any page linking to their works) for having the gall to send those publishers traffic via Google News? VG Media insisted that Google's use of "snippets" was illegal." []
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    "from the well-that-solves-that dept Remember earlier this year when German newspaper publishers, led by rights management firm VG Media, demanded Google pay them a massive amount of money (11% of all ad revenue on any page linking to their works) for having the gall to send those publishers traffic via Google News? VG Media insisted that Google's use of "snippets" was illegal."
Gonzalo San Gil, PhD.

Received a Piracy Letter? UK Solicitor Will Defend You For Free | TorrentFreak - 0 views

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    " Andy on March 20, 2015 C: 0 Breaking In recent weeks customers of UK ISPs have received letters from copyright trolls demanding settlement for alleged downloading of movies. Today they can fight back. Southampton-based lawyer Michael Coyle informs TorrentFreak that if the accused make a charitable donation in support of his London Marathon run, he will provide his time for free."
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    " Andy on March 20, 2015 C: 0 Breaking In recent weeks customers of UK ISPs have received letters from copyright trolls demanding settlement for alleged downloading of movies. Today they can fight back. Southampton-based lawyer Michael Coyle informs TorrentFreak that if the accused make a charitable donation in support of his London Marathon run, he will provide his time for free."
Gonzalo San Gil, PhD.

University: 'Pirating' Students Being Deliberately Targeted - TorrentFreak - 0 views

    • Gonzalo San Gil, PhD.
       
      # ! Between skyrocketing tuition and, now, students persecution, it seems that the real plan is to destroy Universities, a direct attack to knowledge... and Freedom.
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    " Andy on December 3, 2015 C: 84 Breaking Data published by Central Michigan University has revealed a worrying trend in copyright complaints. Out of 1,912 received so far in 2015, more than 80% were from Rightscorp, a company that demands cash to settle. The university's chief information officer believes that campuses like his are being deliberately targeted"
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    " Andy on December 3, 2015 C: 84 Breaking Data published by Central Michigan University has revealed a worrying trend in copyright complaints. Out of 1,912 received so far in 2015, more than 80% were from Rightscorp, a company that demands cash to settle. The university's chief information officer believes that campuses like his are being deliberately targeted"
Gonzalo San Gil, PhD.

When Authors Demand Payment For Every Copy, They Advocate Communism - TorrentFreak - 0 views

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    " Rick Falkvinge on December 21, 2015 C: 114 Opinion Yes, really. There's a whole lot of confusion in the dangerous and wrong cliché that "authors must be paid" for every copy that's made. We live in a market economy for good reasons."
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    " Rick Falkvinge on December 21, 2015 C: 114 Opinion Yes, really. There's a whole lot of confusion in the dangerous and wrong cliché that "authors must be paid" for every copy that's made. We live in a market economy for good reasons."
Paul Merrell

Hey ITU Member States: No More Secrecy, Release the Treaty Proposals | Electronic Front... - 0 views

  • The International Telecommunication Union (ITU) will hold the World Conference on International Telecommunications (WCIT-12) in December in Dubai, an all-important treaty-writing event where ITU Member States will discuss the proposed revisions to the International Telecommunication Regulations (ITR). The ITU is a United Nations agency responsible for international telecom regulation, a bureaucratic, slow-moving, closed regulatory organization that issues treaty-level provisions for international telecommunication networks and services. The ITR, a legally binding international treaty signed by 178 countries, defines the boundaries of ITU’s regulatory authority and provides "general principles" on international telecommunications. However, media reports indicate that some proposed amendments to the ITR—a negotiation that is already well underway—could potentially expand the ITU’s mandate to encompass the Internet.
  • The International Telecommunication Union (ITU) will hold the World Conference on International Telecommunications (WCIT-12) in December in Dubai, an all-important treaty-writing event where ITU Member States will discuss the proposed revisions to the International Telecommunication Regulations (ITR). The ITU is a United Nations agency responsible for international telecom regulation, a bureaucratic, slow-moving, closed regulatory organization that issues treaty-level provisions for international telecommunication networks and services. The ITR, a legally binding international treaty signed by 178 countries, defines the boundaries of ITU’s regulatory authority and provides "general principles" on international telecommunications. However, media reports indicate that some proposed amendments to the ITR—a negotiation that is already well underway—could potentially expand the ITU’s mandate to encompass the Internet. In similar fashion to the secrecy surrounding ACTA and TPP, the ITR proposals are being negotiated in secret, with high barriers preventing access to any negotiating document. While aspiring to be a venue for Internet policy-making, the ITU Member States do not appear to be very open to the idea of allowing all stakeholders (including civil society) to participate. The framework under which the ITU operates does not allow for any form of open participation. Mere access to documents and decision-makers is sold by the ITU to corporate “associate” members at prohibitively high rates. Indeed, the ITU’s business model appears to depend on revenue generation from those seeking to ‘participate’ in its policy-making processes. This revenue-based principle of policy-making is deeply troubling in and of itself, as the objective of policy making should be to reach the best possible outcome.
  • EFF, European Digital Rights, CIPPIC and CDT and a coalition of civil society organizations from around the world are demanding that the ITU Secretary General, the  WCIT-12 Council Working Group, and ITU Member States open up the WCIT-12 and the Council working group negotiations, by immediately releasing all the preparatory materials and Treaty proposals. If it affects the digital rights of citizens across the globe, the public needs to know what is going on and deserves to have a say. The Council Working Group is responsible for the preparatory work towards WCIT-12, setting the agenda for and consolidating input from participating governments and Sector Members. We demand full and meaningful participation for civil society in its own right, and without cost, at the Council Working Group meetings and the WCIT on equal footing with all other stakeholders, including participating governments. A transparent, open process that is inclusive of civil society at every stage is crucial to creating sound policy.
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  • Civil society has good reason to be concerned regarding an expanded ITU policy-making role. To begin with, the institution does not appear to have high regard for the distributed multi-stakeholder decision making model that has been integral to the development of an innovative, successful and open Internet. In spite of commitments at WSIS to ensure Internet policy is based on input from all relevant stakeholders, the ITU has consistently put the interests of one stakeholder—Governments—above all others. This is discouraging, as some government interests are inconsistent with an open, innovative network. Indeed, the conditions which have made the Internet the powerful tool it is today emerged in an environment where the interests of all stakeholders are given equal footing, and existing Internet policy-making institutions at least aspire, with varying success, to emulate this equal footing. This formula is enshrined in the Tunis Agenda, which was committed to at WSIS in 2005:
  • 83. Building an inclusive development-oriented Information Society will require unremitting multi-stakeholder effort. We thus commit ourselves to remain fully engaged—nationally, regionally and internationally—to ensure sustainable implementation and follow-up of the outcomes and commitments reached during the WSIS process and its Geneva and Tunis phases of the Summit. Taking into account the multifaceted nature of building the Information Society, effective cooperation among governments, private sector, civil society and the United Nations and other international organizations, according to their different roles and responsibilities and leveraging on their expertise, is essential. 84. Governments and other stakeholders should identify those areas where further effort and resources are required, and jointly identify, and where appropriate develop, implementation strategies, mechanisms and processes for WSIS outcomes at international, regional, national and local levels, paying particular attention to people and groups that are still marginalized in their access to, and utilization of, ICTs.
  • Indeed, the ITU’s current vision of Internet policy-making is less one of distributed decision-making, and more one of ‘taking control.’ For example, in an interview conducted last June with ITU Secretary General Hamadoun Touré, Russian Prime Minister Vladimir Putin raised the suggestion that the union might take control of the Internet: “We are thankful to you for the ideas that you have proposed for discussion,” Putin told Touré in that conversation. “One of them is establishing international control over the Internet using the monitoring and supervisory capabilities of the International Telecommunication Union (ITU).” Perhaps of greater concern are views espoused by the ITU regarding the nature of the Internet. Yesterday, at the World Summit of Information Society Forum, Mr. Alexander Ntoko, head of the Corporate Strategy Division of the ITU, explained the proposals made during the preparatory process for the WCIT, outlining a broad set of topics that can seriously impact people's rights. The categories include "security," "interoperability" and "quality of services," and the possibility that ITU recommendations and regulations will be not only binding on the world’s nations, but enforced.
  • Rights to online expression are unlikely to fare much better than privacy under an ITU model. During last year’s IGF in Kenya, a voluntary code of conduct was issued to further restrict free expression online. A group of nations (including China, the Russian Federation, Tajikistan and Uzbekistan) released a Resolution for the UN General Assembly titled, “International Code of Conduct for Information Security.”  The Code seems to be designed to preserve and protect national powers in information and communication. In it, governments pledge to curb “the dissemination of information that incites terrorism, secessionism or extremism or that undermines other countries’ political, economic and social stability, as well as their spiritual and cultural environment.” This overly broad provision accords any state the right to censor or block international communications, for almost any reason.
  • EFF Joins Coalition Denouncing Secretive WCIT Planning Process June 2012 Congressional Witnesses Agree: Multistakeholder Processes Are Right for Internet Regulation June 2012 Widespread Participation Is Key in Internet Governance July 2012 Blogging ITU: Internet Users Will Be Ignored Again if Flawed ITU Proposals Gain Traction June 2012 Global Telecom Governance Debated at European Parliament Workshop
Paul Merrell

ACLU Demands Secret Court Hand Over Crucial Rulings On Surveillance Law - 0 views

  • The American Civil Liberties Union (ACLU) has filed a motion to reveal the secret court opinions with “novel or significant interpretations” of surveillance law, in a renewed push for government transparency. The motion, filed Wednesday by the ACLU and Yale Law School’s Media Freedom and Information Access Clinic, asks the Foreign Intelligence Surveillance Act (FISA) Court, which rules on intelligence gathering activities in secret, to release 23 classified decisions it made between 9/11 and the passage of the USA Freedom Act in June 2015. As ACLU National Security Project staff attorney Patrick Toomey explains, the opinions are part of a “much larger collection of hidden rulings on all sorts of government surveillance activities that affect the privacy rights of Americans.” Among them is the court order that the government used to direct Yahoo to secretly scanits users’ emails for “a specific set of characters.” Toomey writes: These court rulings are essential for the public to understand how federal laws are being construed and implemented. They also show how constitutional protections for personal privacy and expressive activities are being enforced by the courts. In other words, access to these opinions is necessary for the public to properly oversee their government.
  • Although the USA Freedom Act requires the release of novel FISA court opinions on surveillance law, the government maintains that the rule does not apply retroactively—thereby protecting the panel from publishing many of its post-9/11 opinions, which helped create an “unprecedented buildup” of secret surveillance laws. Even after National Security Agency (NSA) whistleblower Edward Snowden revealed the scope of mass surveillance in 2013, sparking widespread outcry, dozens of rulings on spying operations remain hidden from the public eye, which stymies efforts to keep the government accountable, civil liberties advocates say. “These rulings are necessary to inform the public about the scope of the government’s surveillance powers today,” the ACLU’s motion states.
  • Toomey writes that the rulings helped influence a number of novel spying activities, including: The government’s use of malware, which it calls “Network Investigative Techniques” The government’s efforts to compel technology companies to weaken or circumvent their own encryption protocols The government’s efforts to compel technology companies to disclose their source code so that it can identify vulnerabilities The government’s use of “cybersignatures” to search through internet communications for evidence of computer intrusions The government’s use of stingray cell-phone tracking devices under the Foreign Intelligence Surveillance Act (FISA) The government’s warrantless surveillance of Americans under FISA Section 702—a controversial authority scheduled to expire in December 2017 The bulk collection of financial records by the CIA and FBI under Section 215 of the Patriot Act Without these rulings being made public, “it simply isn’t possible to understand the government’s claimed authority to conduct surveillance,” Toomey writes. As he told The Intercept on Wednesday, “The people of this country can’t hold the government accountable for its surveillance activities unless they know what our laws allow. These secret court opinions define the limits of the government’s spying powers. Their disclosure is essential for meaningful public oversight in our democracy.”
Gonzalo San Gil, PhD.

TTIP expected to fail after US demands revealed in unprecedented leak | Ars Technica UK - 1 views

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    "Bernd Lange, the chairman of the European Parliament's important trade committee, has indicated that he now expects the Transatlantic Trade and Investment Partnership (TTIP) negotiations will probably fail, following a major leak of confidential documents from the talks."
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    "Bernd Lange, the chairman of the European Parliament's important trade committee, has indicated that he now expects the Transatlantic Trade and Investment Partnership (TTIP) negotiations will probably fail, following a major leak of confidential documents from the talks."
Gonzalo San Gil, PhD.

The World Wide Web Consortium is being followed by protests | Defective by Design - 0 views

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    "Submitted by Zak Rogoff on September 15, 2016 - 9:18am Next week, demonstrators will gather at a meeting of the World Wide Web Consortium (W3C) in Lisbon, Portugal. They will make the same demand that we made at the last major W3C meeting in March: stop streaming companies from inserting Digital Restrictions Management (DRM) into the HTML standard on which the Web is based."
Gonzalo San Gil, PhD.

Russian Copyright Law Allows Entire News Site To Be Shut Down Over A Single Copied Arti... - 0 views

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    "from the funny-how-that-works dept We've noted for a long time now that copyright laws are regularly used as a tool for censorship. In Russia, abusing copyright law for censorship and to harass political opponents has become standard. Remember how the Russian government teamed up with Microsoft to use questionable copyright claims to intimidate government critics? And then how the MPAA gleefully got into bed with Russia's media censor to celebrate copyright? Of course, Russia also expanded its ability to use copyright to censor the internet, following pressure from short-sighted US diplomats, demanding that Russia better "respect" copyright laws. "
Paul Merrell

What to Do About Lawless Government Hacking and the Weakening of Digital Security | Ele... - 0 views

  • In our society, the rule of law sets limits on what government can and cannot do, no matter how important its goals. To give a simple example, even when chasing a fleeing murder suspect, the police have a duty not to endanger bystanders. The government should pay the same care to our safety in pursuing threats online, but right now we don’t have clear, enforceable rules for government activities like hacking and "digital sabotage." And this is no abstract question—these actions increasingly endanger everyone’s security
  • The problem became especially clear this year during the San Bernardino case, involving the FBI’s demand that Apple rewrite its iOS operating system to defeat security features on a locked iPhone. Ultimately the FBI exploited an existing vulnerability in iOS and accessed the contents of the phone with the help of an "outside party." Then, with no public process or discussion of the tradeoffs involved, the government refused to tell Apple about the flaw. Despite the obvious fact that the security of the computers and networks we all use is both collective and interwoven—other iPhones used by millions of innocent people presumably have the same vulnerability—the government chose to withhold information Apple could have used to improve the security of its phones. Other examples include intelligence activities like Stuxnet and Bullrun, and law enforcement investigations like the FBI’s mass use of malware against Tor users engaged in criminal behavior. These activities are often disproportionate to stopping legitimate threats, resulting in unpatched software for millions of innocent users, overbroad surveillance, and other collateral effects.  That’s why we’re working on a positive agenda to confront governmental threats to digital security. Put more directly, we’re calling on lawyers, advocates, technologists, and the public to demand a public discussion of whether, when, and how governments can be empowered to break into our computers, phones, and other devices; sabotage and subvert basic security protocols; and stockpile and exploit software flaws and vulnerabilities.  
  • Smart people in academia and elsewhere have been thinking and writing about these issues for years. But it’s time to take the next step and make clear, public rules that carry the force of law to ensure that the government weighs the tradeoffs and reaches the right decisions. This long post outlines some of the things that can be done. It frames the issue, then describes some of the key areas where EFF is already pursuing this agenda—in particular formalizing the rules for disclosing vulnerabilities and setting out narrow limits for the use of government malware. Finally it lays out where we think the debate should go from here.   
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    "In our society, the rule of law sets limits on what government can and cannot do, no matter how important its goals. "
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    It's not often that I disagree with EFF's positions, but on this one I do. The government should be prohibited from exploiting computer vulnerabilities and should be required to immediately report all vulnerabilities discovered to the relevant developers of hardware or software. It's been one long slippery slope since the Supreme Court first approved wiretapping in Olmstead v. United States, 277 US 438 (1928), https://goo.gl/NJevsr (.) Left undecided to this day is whether we have a right to whisper privately, a right that is undeniable. All communications intercept cases since Olmstead fly directly in the face of that right.
Paul Merrell

Lawmakers warn of 'radical' move by NSA to share information | TheHill - 0 views

  • A bipartisan pair of lawmakers is expressing alarm at reported changes at the National Security Agency that would allow the intelligence service’s information to be used for policing efforts in the United States.“If media accounts are true, this radical policy shift by the NSA would be unconstitutional, and dangerous,” Reps. Ted Lieu (D-Calif.) and Blake FarentholdBlake FarentholdLawmakers warn of 'radical' move by NSA to share information Overnight Tech: Netflix scores win over Postal Service Lawmakers go green for St. Patrick's Day MORE (R-Texas) wrote in a letter to the spy agency this week. “The proposed shift in the relationship between our intelligence agencies and the American people should not be done in secret.ADVERTISEMENT“NSA’s mission has never been, and should never be, domestic policing or domestic spying.”The NSA has yet to publicly announce the change, but The New York Times reported last month that the administration was poised to expand the agency's ability to share information that it picks up about people’s communications with other intelligence agencies.The modification would open the door for the NSA to give the FBI and other federal agencies uncensored communications of foreigners and Americans picked up incidentally — but without a warrant — during sweeps.  
  • Robert Litt, the general counsel at the Office of the Director of National Intelligence, told the Times that it was finalizing a 21-page draft of procedures to allow the expanded sharing.  Separately, the Guardian reported earlier this month that the FBI had quietly changed its internal privacy rules to allow direct access to the NSA’s massive storehouse of communication data picked up on Internet service providers and websites.The revelations unnerved civil liberties advocates, who encouraged lawmakers to demand answers of the spy agency.“Under a policy like this, information collected by the NSA would be available to a host of federal agencies that may use it to investigate and prosecute domestic crimes,” said Neema Singh Guliani, legislative counsel and the American Civil Liberties Union. “Making such a change without authorization from Congress or the opportunity for debate would ignore public demands for greater transparency and oversight over intelligence activities.”In their letter this week, Lieu and Farenthold warned that the NSA’s changes would undermine Congress and unconstitutionally violate people’s privacy rights.   
  • “The executive branch would be violating the separation of powers by unilaterally transferring warrantless data collected under the NSA’s extraordinary authority to domestic agencies, which do not have such authority,” they wrote.“Domestic law enforcement agencies — which need a warrant supported by probable cause to search or seize — cannot do an end run around the Fourth Amendment by searching warrantless information collected by the NSA.”
Gonzalo San Gil, PhD.

Warner Bros and Intel Sued Over Defamatory 4K Piracy Claims - TorrentFreak - 0 views

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    " Ernesto on March 17, 2016 C: 25 Breaking LegendSky, a hardware manufacturer that creates devices enabling consumers to bypass 4K copy protection, has lodged several counterclaims against Warner Bros. and Intel daughter company Digital Content Protection (DCP). The Chinese company accuses DCP of defamation and monopolization, while demanding compensation for the damages it has suffered."
Gonzalo San Gil, PhD.

European Commission Public Consultation on Copyright: La Quadrature du Net's Answer | L... - 0 views

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    "Paris, 14 February 2014 - The European Commission's public consultation on copyright reform is open until 5 March [The European Commission extended the deadline by a month]. This consultation represents an important opportunity for European citizens to demand that access to culture and knowledge be recognised as their fundamental right. It also allows the interests of authors and creators to be defended against those of the cultural industries, major distributors and intermediaries, and heirs of rightholders who currently receive the greatest share of income from copyrighted works. La Quadrature du Net therefore calls on the maximum number of citizens and organisations to reply to the consultation and support a positive reform of copyright."
Gonzalo San Gil, PhD.

Stop Watching Us | Stop Watching Us - 0 views

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    "The revelations about the National Security Agency's surveillance apparatus, if true, represent a stunning abuse of our basic rights. We demand the U.S. Congress reveal the full extent of the NSA's spying programs."
Paul Merrell

Google to encrypt Cloud Storage data by default | ITworld - 0 views

  • Google said Thursday it will by default encrypt data warehoused in its Cloud Storage service. The server-side encryption is now active for all new data written to Cloud Storage, and older data will be encrypted in the coming months, wrote Dave Barth, a Google product manager, in a blog post.
  • The data and metadata around an object stored in Cloud Storage is encrypted with a unique key using 128-bit Advanced Encryption Standard algorithm, and the "per-object key itself is encrypted with a unique key associated with the object owner," Barth wrote. "These keys are additionally encrypted by one of a regularly rotated set of master keys," he wrote. "Of course, if you prefer to manage your own keys then you can still encrypt data yourself prior to writing it to Cloud Storage."
  • A Google spokeswoman said via email the company does not provide encryption keys to any government and provides user data only in accordance with the law.
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    Google paints a deceptive picture of security in a new default encryption service for customer data stored on Google Cloud Storage. See Google blog article linked from the bookmarked page. ITWorld goes part way in unmasking the deception but could have been far more blunt. The claimed fact that Google does not turn encryption keys over to the NSA, et ilk, is irrelevant if Google still decrypts the customer data upon NSA/FBI demand, which it very apparently does. But the Google blog article doesn't mention that and paints a picture seemingly intended to deceive customers into not encrypting their own data before parking it on Google Cloud Storage, thus aiding the NSA/FBI, et cet., in their surveillance efforts.  Deceptive advertising is a serious legal no-no. Hopefully, Google Cloud Storage users will be perceptive enough not to be misled by Google's advertising. But it's a sign that Google managers may be getting worried about losing customers to companies operating in nations that have far stronger protection for digital privacy than the U.S.
Gonzalo San Gil, PhD.

WordPress Demands $10,000 For DMCA Takedown Censorship | TorrentFreak - 1 views

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    "Hotham wrote an article about "Straight Pride UK" which included a comment he received from the organization's press officer Nick Steiner. The latter didn't like the article Hotham wrote, and after publication Steiner sent WordPress a takedown notice claiming it was infringing on his copyrights."
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    "Hotham wrote an article about "Straight Pride UK" which included a comment he received from the organization's press officer Nick Steiner. The latter didn't like the article Hotham wrote, and after publication Steiner sent WordPress a takedown notice claiming it was infringing on his copyrights."
Gonzalo San Gil, PhD.

Dangerous Ruling: EU Says Google Must Help People Disappear Stuff They Don't Like From ... - 0 views

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    "from the right-to-be-forgotten dept For years now we've explained why Europe's concept of a "right to be forgotten" is a terrible, dangerous and impossible idea. The basic idea is that if you were involved in something that you're not happy about later, you can demand that the incident be stricken from the record... everywhere. It's a clear attack on free speech -- allowing people to censor others from saying truthful and accurate things about someone. "
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.
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