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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.

Studies on file sharing - La Quadrature du Net - 0 views

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    "Contents 1 Studies 1.1 Evaluation of the effects of the HADOPI law 1.1.1 University of Delaware and Université de Rennes - 2014 - Graduated Response Policy and the Behavior of Digital Pirates: Evidence from the French Three-Strike (Hadopi) Law 1.1.2 M@rsouin - 2010 - Evaluation of the effects of the HADOPI law (FR) 1.2 People who share files are people who spend the more for culture 1.2.1 Munich School of Management and Copenhagen Business School - Piracy and Movie Revenues: Evidence from Megaupload 1.2.2 The American Assembly (Collumbia University) - Copy Culture in the USA and Germany 1.2.3 GFK (Society for Consumer Research) - Disappointed commissioner suppresses study showing pirates are cinema's best consumers 1.2.4 HADOPI - 2011 - January 2011 study on online cultural practices (FR) 1.2.5 University of Amsterdam - 2010 - Economic and cultural effects of unlawful file sharing 1.2.6 BBC - 2009 - "Pirates" spend more on music (FR) 1.2.7 IPSOS Germany - 2009 - Filesharers are better "consumers" of culture (FR) 1.2.8 Frank N. Magid Associates, Inc. - 2009 - P2P / Best consumers for Hollywood (EN) 1.2.9 Business School of Norway - 2009 - Those who share music spend ten times more money on music (NO) 1.2.10 Annelies Huygen, et al. (Dutch government investigation) - 2009 - Ups and downs - Economische en culturele gevolgen van file sharing voor muziek, film en games 1.2.11 M@rsouin - 2008 - P2P / buy more DVDs (FR) 1.2.12 Canadian Department of Industry - 2007 - P2P / achètent plus de musique (FR) 1.2.13 Felix Oberholzer-Gee (above) and Koleman Strumpf - 2004 -File sharing may boost CD sales 1.3 Economical effects of filesharing 1.3.1 University of Kansas School of Business - Using Markets to Measure the Impact of File Sharing o
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    "Contents 1 Studies 1.1 Evaluation of the effects of the HADOPI law 1.1.1 University of Delaware and Université de Rennes - 2014 - Graduated Response Policy and the Behavior of Digital Pirates: Evidence from the French Three-Strike (Hadopi) Law 1.1.2 M@rsouin - 2010 - Evaluation of the effects of the HADOPI law (FR) 1.2 People who share files are people who spend the more for culture 1.2.1 Munich School of Management and Copenhagen Business School - Piracy and Movie Revenues: Evidence from Megaupload 1.2.2 The American Assembly (Collumbia University) - Copy Culture in the USA and Germany 1.2.3 GFK (Society for Consumer Research) - Disappointed commissioner suppresses study showing pirates are cinema's best consumers 1.2.4 HADOPI - 2011 - January 2011 study on online cultural practices (FR) 1.2.5 University of Amsterdam - 2010 - Economic and cultural effects of unlawful file sharing 1.2.6 BBC - 2009 - "Pirates" spend more on music (FR) 1.2.7 IPSOS Germany - 2009 - Filesharers are better "consumers" of culture (FR) 1.2.8 Frank N. Magid Associates, Inc. - 2009 - P2P / Best consumers for Hollywood (EN) 1.2.9 Business School of Norway - 2009 - Those who share music spend ten times more money on music (NO) 1.2.10 Annelies Huygen, et al. (Dutch government investigation) - 2009 - Ups and downs - Economische en culturele gevolgen van file sharing voor muziek, film en games 1.2.11 M@rsouin - 2008 - P2P / buy more DVDs (FR) 1.2.12 Canadian Department of Industry - 2007 - P2P / achètent plus de musique (FR) 1.2.13 Felix Oberholzer-Gee (above) and Koleman Strumpf - 2004 -File sharing may boost CD sales 1.3 Economical effects of filesharing 1.3.1 University of Kansas School of Business - Using Markets to Measure the Impact of File Sharing o
Gonzalo San Gil, PhD.

Data Shows Homeland Security Is Lying When It Claims Intellectual Property Seizures Are... - 1 views

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    "from the just-not-true dept For quite some time, intellectual property maximalists have seized upon an incredibly dishonest (though all too frequently successful with policy makers) strategy of conflating a variety of different issues to make it appear that extreme enforcement of copyright and trademark law was all about "protecting the safety of Americans."
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    "from the just-not-true dept For quite some time, intellectual property maximalists have seized upon an incredibly dishonest (though all too frequently successful with policy makers) strategy of conflating a variety of different issues to make it appear that extreme enforcement of copyright and trademark law was all about "protecting the safety of Americans."
Paul Merrell

Civil society organisations say no to intellectual property in EU - US trade agreement ... - 0 views

  • Brussels, 18 March 2013 -- More than 35 European and United States civil society organisations insist that a proposed trade agreement between the EU and the US exclude any provisions related to patents, copyright, trademarks, or other forms of so-called "intellectual property". Such provisions could impede citizens' rights to health, culture, and free expression and otherwise affect their daily lives.
  • The civil society organisations also insist that the EU and US will release the negotiating texts of the trade agreement they intend to negotiate. They believe that secretive "trade" negotiations are absolutely unacceptable forums for devising binding rules that change national non-trade laws.
  • We, the undersigned, are internet freedom and public health groups, activists, and other public interest leaders dedicated to the rights of all people to access cultural and educational resources and affordable medicines, to enjoy a free and open internet, and to benefit from open and needs-driven innovation. First, we insist that the European Union and United States release, in timely and ongoing fashion, any and all negotiating or pre-negotiation texts. We believe that secretive "trade" negotiations are absolutely unacceptable forums for devising binding rules that change national non-trade laws. Second, we insist that the proposed TAFTA exclude any provisions related to patents, copyright, trademarks, data protection, geographical indications, or other forms of so-called "intellectual property". Such provisions could impede our rights to health, culture, and free expression and otherwise affect our daily lives.
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  • Past trade agreements negotiated by the US and EU have significantly increased the privileges of multinational corporations at the expense of society in general. Provisions in these agreements can, among many other concerns, limit free speech, constrain access to educational materials such as textbooks and academic journals, and, in the case of medicines, raise healthcare costs and contribute to preventable suffering and death. Unless "intellectual property" is excluded from these talks, we fear that the outcome will be an agreement that inflicts the worst of both regimes’ rules on the other party. From a democratic perspective, we believe that important rules governing technology, health, and culture should be debated in the US Congress, the European Parliament, national parliaments, and other transparent forums where all stakeholders can be heard—not in closed negotiations that give privileged access to corporate insiders. The TAFTA negotiations must not lead to a rewriting of patent and copyright rules in a way that tilts the balance even further away from the interests of citizens.
Gonzalo San Gil, PhD.

Here's why patents are innovation's worst enemy | Vivek Wadhwa | LinkedIn - 1 views

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    "The Founding Fathers of the United States considered intellectual property so important that they gave it a special place in the Constitution: "To promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries.""
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    "The Founding Fathers of the United States considered intellectual property so important that they gave it a special place in the Constitution: "To promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries.""
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    The quote is somewhat misleading because it is out of context. The section is preceded by: "The Congress shall have Power ..." Those are words of discretion, not commandment. Nothing in the Constitution *requires* that patent and copyright systems be established. "Stable ownership is the gift of social law, and is given late in the progress of society. It would be curious then, if an idea, the fugitive fermentation of an individual brain, could, of natural right, be claimed in exclusive and stable property. If nature has made any one thing less susceptible than all others of exclusive property, it is the action of the thinking power called an idea, which an individual may exclusively possess as long as he keeps it to himself; but the moment it is divulged, it forces itself into the possession of every one, and the receiver cannot dispossess himself of it. Its peculiar character, too, is that no one possesses the less, because every other possesses the whole of it. He who receives an idea from me, receives instruction himself without lessening mine; as he who lights his taper at mine, receives light without darkening me. That ideas should freely spread from one to another over the globe, for the moral and mutual instruction of man, and improvement of his condition, seems to have been peculiarly and benevolently designed by nature, when she made them, like fire, expansible over all space, without lessening their density in any point, and like the air in which we breathe, move, and have our physical being, incapable of confinement or exclusive appropriation. Inventions then cannot, in nature, be a subject of property. Society may give an exclusive right to the profits arising from them, as an encouragement to men to pursue ideas which may produce utility, *but this may or may not be done, according to the will and convenience of the society, without claim or complaint from any body."* VI Writings of Thomas Jefferson, at 180-181 (Washington ed.).
Gonzalo San Gil, PhD.

GNU's Framework for Secure Peer-to-Peer Networking GNU's Framework for Secure Peer-to-P... - 0 views

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    "Philosophy The foremost goal of the GNUnet project is to become a widely used, reliable, open, non-discriminating, egalitarian, unfettered and censorship-resistant system of free information exchange. We value free speech above state secrets, law-enforcement or intellectual property. GNUnet is supposed to be an anarchistic network, where the only limitation for peers is that they must contribute enough back to the network such that their resource consumption does not have a significant impact on other users. GNUnet should be more than just another file-sharing network. The plan is to offer many other services and in particular to serve as a development platform for the next generation of decentralized Internet protocols."
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    "Philosophy The foremost goal of the GNUnet project is to become a widely used, reliable, open, non-discriminating, egalitarian, unfettered and censorship-resistant system of free information exchange. We value free speech above state secrets, law-enforcement or intellectual property. GNUnet is supposed to be an anarchistic network, where the only limitation for peers is that they must contribute enough back to the network such that their resource consumption does not have a significant impact on other users. GNUnet should be more than just another file-sharing network. The plan is to offer many other services and in particular to serve as a development platform for the next generation of decentralized Internet protocols."
Gonzalo San Gil, PhD.

Intellectual Property? Why Words Matter In The Copyright Debate - TorrentFreak - 0 views

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    " Rick Falkvinge on September 13, 2015 C: 53 Opinion Language matters. Whether we get to keep our liberties or not depends on whether those liberties are generally named in positive words. The same thing goes for the privileges of corporations."
Gonzalo San Gil, PhD.

Music Piracy Triggers Significant Losses, EU Study Shows - TorrentFreak - 0 views

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    " By Ernesto on May 25, 2016 C: 113 News New research published by the European Union Intellectual Property Office shows that piracy hurts both digital and physical music sales. In EU countries the total losses are roughly 5% of yearly revenues, which equals €170 million. In addition, piracy also triggers secondary losses for governments and the public sector. "
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    " By Ernesto on May 25, 2016 C: 113 News New research published by the European Union Intellectual Property Office shows that piracy hurts both digital and physical music sales. In EU countries the total losses are roughly 5% of yearly revenues, which equals €170 million. In addition, piracy also triggers secondary losses for governments and the public sector. "
Gonzalo San Gil, PhD.

Gallo report: Copyright dogmatism wins a battle, not the war Submitted on 01 June 2010 ... - 1 views

  • Brussels, June 1st 2010 - The vote, in JURI committee of the European Parliament on the Gallo report "Enforcement of intellectual property", including the rapporteur's repressive amendments, reflects the asphyxiating influence of corporate lobbies on EU policy-making. The ALDE group, which had stood for fundamental freedoms on several occasions, this time sided with the entertainment industries. This vote should make EU citizens react and convince MEPs about the stakes of our evolving digital societies. Beyond the vote of the Gallo report in plenary session, there are other upcoming legislative battles where the public interest of creativity and access to knowledge can be upheld against an obsolete vision of copyright.
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    Gallo Report on the future of EU copyright: repression or reflexion ? Submitted on 25 May 2010 in * copyright * proposals * Gallo * press release * Read more * Twitter * Facebook * Delicious * Digg * MySpace * Français Paris, May 25th, 2010 - The Gallo Report on the future of "intellectual property rights" (IPR) enforcement will be voted on June 1st, at 9 AM,1 in the Committee for Legal Affairs (JURI) of the European Parliament. Since no compromise was found between the members of the committee, two visions will frontally oppose. While the rapporteur -- French sarkozyst EPP member Marielle Gallo -- is pushing for more repression to tackle online file-sharing, some positive amendments from all the other political groups2 seek to end the dogmatic repression and call for the consideration of alternative schemes to fund creation. Every citizen concerned by the future of copyright in Europe and by the open nature of the Internet should express their views to the Members of the JURI committee3. 1. 1. http://www.europarl.europa.eu/activities/committees/calendarCom.do?langu... 2. 2. http://www.laquadrature.net/wiki/Rapport_Gallo_Amendments 3. 3. La Quadrature's wiki-based tool Political Memorycan be used for this purpose.
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    Perhaps The (Only One) Association that cares about Internet Citizens' Freedoms here in Europe...
Gonzalo San Gil, PhD.

UK Police: Enforcement Won't Work Against Piracy | TorrentFreak - 0 views

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    " By Andy on June 15, 2014 C: 33 News The Commissioner of City of London Police admitted this week that just 4% to 10% of sites shut down when contacted by the new Intellectual Property Crime Unit. Alongside odd comments about the threat of "BitNet" and Tor making up "90% of the Internet", Leppard noted that enforcement will not provide a way out of the piracy problem. cityoflondonpoliceThis week's IP Enforcement Summit in London"
Gonzalo San Gil, PhD.

Attachmate says openSUSE lives, UNIX copyrights not sold to MS - 0 views

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    [A lot of unanswered questions lingered after Attachmate announced that it has negotiated an agreement to acquire Linux vendor Novell earlier this month. The company has since issued official statements to clear up several notable points of concern. Attachmate intends to continue developing the SUSE platform and will support the community-driven openSUSE project. The company has also confirmed that it has retained the UNIX copyrights, the intellectual property at the heart of the SCO dispute. ...]
Gonzalo San Gil, PhD.

ICANN: We Won't Pass Judgment on Pirate Sites - TorrentFreak - 0 views

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    " By Andy on July 2, 2016 C: 10 Breaking Following more pressure from rightsholders, domain name oversight body ICANN has again made it clear that it will not act as judge and jury in copyright disputes. In a letter to the president of the Intellectual Property Constituency, ICANN chief Stephen Crocker says that ICANN is neither "required or qualified" to pass judgment in such cases."
Gonzalo San Gil, PhD.

TorrentFreak - Breaking File-sharing, Copyright and Privacy News - 0 views

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    " By Andy on July 2, 2016 C: 0 Breaking Following more pressure from rightsholders, domain name oversight body ICANN has again made it clear that it will not act as judge and jury in copyright disputes. In a letter to the president of the Intellectual Property Constituency, ICANN chief Stephen Crocker says that ICANN is neither "required or qualified" to pass judgment in such cases."
Paul Merrell

» Obama Signs Global Internet Treaty Worse Than SOPA Alex Jones' Infowars: Th... - 2 views

  • Months before the debate about Internet censorship raged as SOPA and PIPA dominated the concerns of web users, President Obama signed an international treaty that would allow companies in China or any other country in the world to demand ISPs remove web content in the US with no legal oversight whatsoever.
  • The White House has circumvented the necessity to have the treaty confirmed by lawmakers by presenting it an as “executive agreement,” although legal scholars have highlighted the dubious nature of this characterization.
  • In presenting ACTA as an “international agreement” rather than a treaty, the Obama administration managed to circumvent the legislative process and avoid having to get Senate approval, a method questioned by Senator Wyden. “That said, even if Obama has declared ACTA an executive agreement (while those in Europe insist that it’s a binding treaty), there is a very real Constitutional question here: can it actually be an executive agreement?” asks TechDirt. “The law is clear that the only things that can be covered by executive agreements are things that involve items that are solely under the President’s mandate. That is, you can’t sign an executive agreement that impacts the things Congress has control over. But here’s the thing: intellectual property, in Article 1, Section 8 of the Constitution, is an issue given to Congress, not the President. Thus, there’s a pretty strong argument that the president legally cannot sign any intellectual property agreements as an executive agreement and, instead, must submit them to the Senate.”
Paul Merrell

The All Writs Act, Software Licenses, and Why Judges Should Ask More Questions | Just S... - 0 views

  • Pending before federal magistrate judge James Orenstein is the government’s request for an order obligating Apple, Inc. to unlock an iPhone and thereby assist prosecutors in decrypting data the government has seized and is authorized to search pursuant to a warrant. In an order questioning the government’s purported legal basis for this request, the All Writs Act of 1789 (AWA), Judge Orenstein asked Apple for a brief informing the court whether the request would be technically feasible and/or burdensome. After Apple filed, the court asked it to file a brief discussing whether the government had legal grounds under the AWA to compel Apple’s assistance. Apple filed that brief and the government filed a reply brief last week in the lead-up to a hearing this morning.
  • We’ve long been concerned about whether end users own software under the law. Software owners have rights of adaptation and first sale enshrined in copyright law. But software publishers have claimed that end users are merely licensees, and our rights under copyright law can be waived by mass-market end user license agreements, or EULAs. Over the years, Granick has argued that users should retain their rights even if mass-market licenses purport to take them away. The government’s brief takes advantage of Apple’s EULA for iOS to argue that Apple, the software publisher, is responsible for iPhones around the world. Apple’s EULA states that when you buy an iPhone, you’re not buying the iOS software it runs, you’re just licensing it from Apple. The government argues that having designed a passcode feature into a copy of software which it owns and licenses rather than sells, Apple can be compelled under the All Writs Act to bypass the passcode on a defendant’s iPhone pursuant to a search warrant and thereby access the software owned by Apple. Apple’s supplemental brief argues that in defining its users’ contractual rights vis-à-vis Apple with regard to Apple’s intellectual property, Apple in no way waived its own due process rights vis-à-vis the government with regard to users’ devices. Apple’s brief compares this argument to forcing a car manufacturer to “provide law enforcement with access to the vehicle or to alter its functionality at the government’s request” merely because the car contains licensed software. 
  • This is an interesting twist on the decades-long EULA versus users’ rights fight. As far as we know, this is the first time that the government has piggybacked on EULAs to try to compel software companies to provide assistance to law enforcement. Under the government’s interpretation of the All Writs Act, anyone who makes software could be dragooned into assisting the government in investigating users of the software. If the court adopts this view, it would give investigators immense power. The quotidian aspects of our lives increasingly involve software (from our cars to our TVs to our health to our home appliances), and most of that software is arguably licensed, not bought. Conscripting software makers to collect information on us would afford the government access to the most intimate information about us, on the strength of some words in some license agreements that people never read. (And no wonder: The iPhone’s EULA came to over 300 pages when the government filed it as an exhibit to its brief.)
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  • The government’s brief does not acknowledge the sweeping implications of its arguments. It tries to portray its requested unlocking order as narrow and modest, because it “would not require Apple to make any changes to its software or hardware, … [or] to introduce any new ability to access data on its phones. It would simply require Apple to use its existing capability to bypass the passcode on a passcode-locked iOS 7 phone[.]” But that undersells the implications of the legal argument the government is making: that anything a company already can do, it could be compelled to do under the All Writs Act in order to assist law enforcement. Were that the law, the blow to users’ trust in their encrypted devices, services, and products would be little different than if Apple and other companies were legally required to design backdoors into their encryption mechanisms (an idea the government just can’t seem to drop, its assurances in this brief notwithstanding). Entities around the world won’t buy security software if its makers cannot be trusted not to hand over their users’ secrets to the US government. That’s what makes the encryption in iOS 8 and later versions, which Apple has told the court it “would not have the technical ability” to bypass, so powerful — and so despised by the government: Because no matter how broadly the All Writs Act extends, no court can compel Apple to do the impossible.
Paul Merrell

German Parliament Says No More Software Patents | Electronic Frontier Foundation - 0 views

  • The German Parliament recently took a huge step that would eliminate software patents (PDF) when it issued a joint motion requiring the German government to ensure that computer programs are only covered by copyright. Put differently, in Germany, software cannot be patented. The Parliament's motion follows a similar announcement made by New Zealand's government last month (PDF), in which it determined that computer programs were not inventions or a manner of manufacture and, thus, cannot be patented.
  • The crux of the German Parliament's motion rests on the fact that software is already protected by copyright, and developers are afforded "exploitation rights." These rights, however, become confused when broad, abstract patents also cover general aspects of computer programs. These two intellectual property systems are at odds. The clearest example of this clash is with free software. The motion recognizes this issue and therefore calls upon the government "to preserve the precedence of copyright law so that software developers can also publish their work under open source license terms and conditions with legal security." The free software movement relies upon the fact that software can be released under a copyright license that allows users to share it and build upon others' works. Patents, as Parliament finds, inhibit this fundamental spread.
  • Just like in the New Zealand order, the German Parliament carved out one type of software that could be patented, when: the computer program serves merely as a replaceable equivalent for a mechanical or electro-mechanical component, as is the case, for instance, when software-based washing machine controls can replace an electromechanical program control unit consisting of revolving cylinders which activate the control circuits for the specific steps of the wash cycle This allows for software that is tied to (and controls part of) another invention to be patented. In other words, if a claimed process is purely a computer program, then it is not patentable. (New Zealand's order uses a similar washing machine example.) The motion ends by calling upon the German government to push for this approach to be standard across all of Europe. We hope policymakers in the United States will also consider fundamental reform that deals with the problems caused by low-quality software patents. Ultimately, any real reform must address this issue.
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    Note that an unofficial translation of the parliamentary motion is linked from the article. This adds substantially to the pressure internationally to end software patents because Germany has been the strongest defender of software patents in Europe. The same legal grounds would not apply in the U.S. The strongest argument for the non-patentability in the U.S., in my opinion, is that software patents embody embody both prior art and obviousness. A general purpose computer can accomplish nothing unforeseen by the prior art of the computing device. And it is impossible for software to do more than cause different sequences of bit register states to be executed. This is the province of "skilled artisans" using known methods to produce predictable results. There is a long line of Supreme Court decisions holding that an "invention" with such traits is non-patentable. I have summarized that argument with citations at . 
Gonzalo San Gil, PhD.

Judge: IP-Address Doesn't Identify a Movie Pirate | TorrentFreak - 1 views

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    "In a prominent ruling Florida District Court Judge Ursula Ungaro refused to issue a subpoena, arguing that IP-address evidence is not enough to show who has downloaded a pirated movie."
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    "In a prominent ruling Florida District Court Judge Ursula Ungaro refused to issue a subpoena, arguing that IP-address evidence is not enough to show who has downloaded a pirated movie."
Paul Merrell

Google book-scanning project legal, says U.S. appeals court | Reuters - 0 views

  • A U.S. appeals court ruled on Friday that Google's massive effort to scan millions of books for an online library does not violate copyright law, rejecting claims from a group of authors that the project illegally deprives them of revenue.The 2nd U.S. Circuit Court of Appeals in New York rejected infringement claims from the Authors Guild and several individual writers, and found that the project provides a public service without violating intellectual property law.
  • Google argued that the effort would actually boost book sales by making it easier for readers to find works, while introducing them to books they might not otherwise have seen.A lawyer for the authors did not immediately respond to a request for comment.Google had said it could face billions of dollars in potential damages if the authors prevailed. Circuit Judge Denny Chin, who oversaw the case at the lower court level, dismissed the litigation in 2013, prompting the authors' appeal.Chin found Google's scanning of tens of millions of books and posting "snippets" online constituted "fair use" under U.S. copyright law.A unanimous three-judge appeals panel said the case "tests the boundaries of fair use," but found Google's practices were ultimately allowed under the law. "Google’s division of the page into tiny snippets is designed to show the searcher just enough context surrounding the searched term to help her evaluate whether the book falls within the scope of her interest (without revealing so much as to threaten the author’s copyright interests)," Circuit Judge Pierre Leval wrote for the court.
  • The 2nd Circuit had previously rejected a similar lawsuit from the Authors Guild in June 2014 against a consortium of universities and research libraries that built a searchable online database of millions of scanned works.The case is Authors Guild v. Google Inc, 2nd U.S. Circuit Court of Appeals, No. 13-4829.
Paul Merrell

Why the Sony hack is unlikely to be the work of North Korea. | Marc's Security Ramblings - 0 views

  • Everyone seems to be eager to pin the blame for the Sony hack on North Korea. However, I think it’s unlikely. Here’s why:1. The broken English looks deliberately bad and doesn’t exhibit any of the classic comprehension mistakes you actually expect to see in “Konglish”. i.e it reads to me like an English speaker pretending to be bad at writing English. 2. The fact that the code was written on a PC with Korean locale & language actually makes it less likely to be North Korea. Not least because they don’t speak traditional “Korean” in North Korea, they speak their own dialect and traditional Korean is forbidden. This is one of the key things that has made communication with North Korean refugees difficult. I would find the presence of Chinese far more plausible.
  • 3. It’s clear from the hard-coded paths and passwords in the malware that whoever wrote it had extensive knowledge of Sony’s internal architecture and access to key passwords. While it’s plausible that an attacker could have built up this knowledge over time and then used it to make the malware, Occam’s razor suggests the simpler explanation of an insider. It also fits with the pure revenge tact that this started out as. 4. Whoever did this is in it for revenge. The info and access they had could have easily been used to cash out, yet, instead, they are making every effort to burn Sony down. Just think what they could have done with passwords to all of Sony’s financial accounts? With the competitive intelligence in their business documents? From simple theft, to the sale of intellectual property, or even extortion – the attackers had many ways to become rich. Yet, instead, they chose to dump the data, rendering it useless. Likewise, I find it hard to believe that a “Nation State” which lives by propaganda would be so willing to just throw away such an unprecedented level of access to the beating heart of Hollywood itself.
  • 5. The attackers only latched onto “The Interview” after the media did – the film was never mentioned by GOP right at the start of their campaign. It was only after a few people started speculating in the media that this and the communication from DPRK “might be linked” that suddenly it became linked. I think the attackers both saw this as an opportunity for “lulz” and as a way to misdirect everyone into thinking it was a nation state. After all, if everyone believes it’s a nation state, then the criminal investigation will likely die.
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  • 6. Whoever is doing this is VERY net and social media savvy. That, and the sophistication of the operation, do not match with the profile of DPRK up until now. Grugq did an excellent analysis of this aspect his findings are here – http://0paste.com/6875#md 7. Finally, blaming North Korea is the easy way out for a number of folks, including the security vendors and Sony management who are under the microscope for this. Let’s face it – most of today’s so-called “cutting edge” security defenses are either so specific, or so brittle, that they really don’t offer much meaningful protection against a sophisticated attacker or group of attackers.
  • 8. It probably also suits a number of political agendas to have something that justifies sabre-rattling at North Korea, which is why I’m not that surprised to see politicians starting to point their fingers at the DPRK also. 9. It’s clear from the leaked data that Sony has a culture which doesn’t take security very seriously. From plaintext password files, to using “password” as the password in business critical certificates, through to just the shear volume of aging unclassified yet highly sensitive data left out in the open. This isn’t a simple slip-up or a “weak link in the chain” – this is a serious organization-wide failure to implement anything like a reasonable security architecture.
  • The reality is, as things stand, Sony has little choice but to burn everything down and start again. Every password, every key, every certificate is tainted now and that’s a terrifying place for an organization to find itself. This hack should be used as the definitive lesson in why security matters and just how bad things can get if you don’t take it seriously. 10. Who do I think is behind this? My money is on a disgruntled (possibly ex) employee of Sony.
  • EDIT: This appears (at least in part) to be substantiated by a conversation the Verge had with one of the alleged hackers – http://www.theverge.com/2014/11/25/7281097/sony-pictures-hackers-say-they-want-equality-worked-with-staff-to-break-in Finally for an EXCELLENT blow by blow analysis of the breach and the events that followed, read the following post by my friends from Risk Based Security – https://www.riskbasedsecurity.com/2014/12/a-breakdown-and-analysis-of-the-december-2014-sony-hack EDIT: Also make sure you read my good friend Krypt3ia’s post on the hack – http://krypt3ia.wordpress.com/2014/12/18/sony-hack-winners-and-losers/
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    Seems that the FBI overlooked a few clues before it told Obama to go ahead and declare war against North Korea. 
Gonzalo San Gil, PhD.

Why Kim Dotcom hasn't been extradited 3 years after the US smashed Megaupload | Ars Tec... - 0 views

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    "Why Kim Dotcom hasn't been extradited 3 years after the US smashed Megaupload An extradition hearing is set for June 2015. Based on history, don't hold your breath. by Cyrus Farivar - Jan 18, 2015 10:30 pm UTC Share Tweet 37 Kim Dotcom made his initial play for the Billboard charts in late 2011. Kim Dotcom has never been shy. And in December 2011, roughly a month before things for Dotcom were set to drastically change, he still oozed with bravado: Dotcom released a song ("The Megaupload Song") in conjunction with producer Printz Board. It featured a number of major pop stars-including the likes of Kanye West, Jamie Foxx, and Serena Williams-all singing that they "love Megaupload."" [ # ! this is not an #IntellectualProperty #enforcement #issue, # ! it is a bunch of #governments (& friend companies) saying # ! #citizens that #information & #culture belong to '#Them'... # ! ;/ # ! ... and this doesn't work this way. # ! :) ]
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    " Why Kim Dotcom hasn't been extradited 3 years after the US smashed Megaupload An extradition hearing is set for June 2015. Based on history, don't hold your breath. by Cyrus Farivar - Jan 18, 2015 10:30 pm UTC Share Tweet 37 Kim Dotcom made his initial play for the Billboard charts in late 2011. Kim Dotcom has never been shy. And in December 2011, roughly a month before things for Dotcom were set to drastically change, he still oozed with bravado: Dotcom released a song ("The Megaupload Song") in conjunction with producer Printz Board. It featured a number of major pop stars-including the likes of Kanye West, Jamie Foxx, and Serena Williams-all singing that they "love Megaupload.""
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