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Gary Edwards

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

www.cato-unbound.org/...rt-shrank-intellectual-commons

patents software-patents

shared by Gary Edwards on 13 Sep 14 - No Cached
  • 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:
  • ...17 more annotations...
  • 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.
  • Gary Edwards on 13 Sep 14
     
    "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. "
  • Paul Merrell on 14 Sep 14
     
    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

wiki.laquadrature.net/Studies_on_file_sharing

studies file sharing Quadrature du Net

shared by Gonzalo San Gil, PhD. on 11 Aug 15 - No Cached
  • Gonzalo San Gil, PhD. on 11 Aug 15
     
    "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. on 11 Aug 15
     
    "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.

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

www.laquadrature.net/en

Qquadrature Amendment Obsolete let's promote P2P sharing ACTA copyright *Gallo Report graduated response three EU UE

shared by Gonzalo San Gil, PhD. on 27 May 10 - Cached
  • 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.
  • Gonzalo San Gil, PhD. on 27 May 10
     
    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.
  • Gonzalo San Gil, PhD. on 27 May 10
     
    Perhaps The (Only One) Association that cares about Internet Citizens' Freedoms here in Europe...
Paul Merrell

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

marcrogers.org/...-to-be-the-work-of-north-korea

Sony-hack North-Korea false-flag FBI Obama

shared by Paul Merrell on 25 Dec 14 - No Cached
  • 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.
  • ...4 more annotations...
  • 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/
  • Paul Merrell on 25 Dec 14
     
    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

arstechnica.com/...fter-the-us-smashed-megaupload

kim Dotcom megaupload extradition not happens Intellectual Property power politics over culture flow

shared by Gonzalo San Gil, PhD. on 21 Jan 15 - No Cached
  • Gonzalo San Gil, PhD. on 21 Jan 15
     
    "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. # ! :) ]
  • Gonzalo San Gil, PhD. on 21 Jan 15
     
    " 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.""
Gonzalo San Gil, PhD.

YouTube Flags Cat Purring as Copyright Infringing Music | TorrentFreak - 0 views

torrentfreak.com/yright-infringing-music-150211

youtube flags cat purring copyright infringement ridiculous shaming Intellectual Property enforcement politics policies

shared by Gonzalo San Gil, PhD. on 12 Feb 15 - No Cached
  • Gonzalo San Gil, PhD. on 12 Feb 15
     
    " Ernesto on February 11, 2015 C: 0 Breaking YouTube's automated takedown tool is known for its flaws, but this week it crossed a line by attacking a purring cat."
  • Gonzalo San Gil, PhD. on 12 Feb 15
     
    " Ernesto on February 11, 2015 C: 0 Breaking YouTube's automated takedown tool is known for its flaws, but this week it crossed a line by attacking a purring cat."
Gonzalo San Gil, PhD.

Music Group Wants ISPs to Spy on Customers to Stop Piracy | TorrentFreak [# ! Note] - 0 views

torrentfreak.com/ustomers-to-stop-piracy-150324

music group wants ISPs spy customers stop piracy bad far beyond Intellectual Property protection :(

shared by Gonzalo San Gil, PhD. on 24 Mar 15 - No Cached
    • Gonzalo San Gil, PhD.
      Gonzalo San Gil, PhD. on 24 Mar 15
       
      # ! #WARNING: '#Spying' goes far beyond of 'combating' 'Piracy' # ! it is connivence with political and economical powers to # ! #snoop citizens' lives...
  • Gonzalo San Gil, PhD. on 24 Mar 15
     
    [ Andy on March 24, 2015 C: 0 Breaking In a response to the draft code tabled to deal with the Australian online-piracy problem, some of the world's largest music publishers have presented a set of draconian measures. ISPs should not only use technology to spy on their own customers, but also to proactively block access to infringing content and websites. ...]
Gonzalo San Gil, PhD.

Google Asked to Remove 1,500 "Pirate Links" Per Minute - TorrentFreak [# ! Note] - 0 views

torrentfreak.com/pirate-links-per-minute-151122

google asked remove thousands pirate links per minute like DDoS companies try destroy Internet engines search politics Intellectual Property enforcement censorship

shared by Gonzalo San Gil, PhD. on 23 Nov 15 - No Cached
  • Gonzalo San Gil, PhD. on 23 Nov 15
     
    " Ernesto on November 22, 2015 C: 43 News Google is facing a never-ending flood of takedown requests from copyright holders, breaking record after record. The company currently processes a record breaking 1,500 links to "pirate" pages from its search results every minute, which is a 100% increase compared to last year."
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