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Invalidated--What's Wrong With the US Patent System (1 Viewer)

chet

Footballguy
The US patent system is being undermined by big corporate interests.  Invalidated is an eye opening documentary which looks at how some inventors have been completely worked by recent law changes (which may be unconstitutional).  @Otis WTF?

 
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Good video.  I'm glad that Josh Malone made out in the end.  I've bought his product from costco and like it very much although the balloons could be a little thinner so that they pop when they hit you rather than just bounce off.  Its interesting how he still prevailed even though the PTAB ruled his patents invalid.    I'd be curious to know how that actually works.

 
There are some pretty crappy patents out there.  We have government employees examining patent applications and sometimes doing a pretty awful job because, well, over half a million are filed each year and because some of them are underpaid or lazy or not all that capable. The patent troll problem was getting out of hand, and the PTAB was probably the right antidote at that time. 

That said, the pendulum had swung really far in the other direction (against patent rights), and things are coming back the other way (as they historically always have—back and forth, with patent rights strengthening and weakening over time as the courts and congress keep over correcting). USPTO Director Iancu is very much pro patent; PTAB invalidations are down slightly; the Supreme Court has been dialing back some of the anti-patent decisions; and district courts across the country are making it tougher for defendants to invalidate patents or get out of cases early or easily. We’ll probably see some new patent strengthening legislation with legs in the next year or so (the STRONGER Patents Act being one; probably something that fixes the law on Section 101/patentable subject matter eligibility).

Chet, it I remember right, you had invested in some patents at some point, maybe which were being litigated?  (I don’t recall which or for what entity, and probably best to keep it that way).  Did the case not ultimately go well?  What is your complaint about the patent system and the way your case was ultimately decided, if you’re willing to share?

For what it’s worth, I’m LinkedIn contacts with Malone and a bunch of other inventors and very pro patent lobbyists, and I see the stuff they put out regularly, and some of it is way over the top/unsupportable.  Our patent system is just fine; a few things need adjusting, but it’s far from broken, and is still the best patent system around. Despite solid patent systems in Europe and Japan, and China now having over 1.3 million patent applications filed each year, US patents are still far more valuable than patents anywhere else, and our system remains the envy of the world. 

 
Good video.  I'm glad that Josh Malone made out in the end.  I've bought his product from costco and like it very much although the balloons could be a little thinner so that they pop when they hit you rather than just bounce off.  Its interesting how he still prevailed even though the PTAB ruled his patents invalid.    I'd be curious to know how that actually works.
Malone ultimately won at the PTAB after he appealed to the Federal Circuit (the court of appeals in all patent cases) and that court reversed the PTAB’s invalidity finding. Thereafter both the district court and PTAB upheld the validity of his patents.  

https://www.ipwatchdog.com/2019/05/30/win-in-water-balloon-battle-suggests-hope-for-patent-owners-at-ptab/id=109785/
 

https://www.ipwatchdog.com/2018/05/31/tinnus-v-telebrands-federal-circuit-reverses-ptabs-finding-indefiniteness-ptab-erred-packard-analysis/id=97991/

 
It should all be blown up. It's a complete joke. Probably the most broken and corrupt part of the government system (except for all the others). 
What makes you say this?  As an "insider," I can honestly say I think folks are mostly just trying to get it right.  I don't see corporations gaming or having a big advantage in the patent system.  

 
Malone ultimately won at the PTAB after he appealed to the Federal Circuit (the court of appeals in all patent cases) and that court reversed the PTAB’s invalidity finding. Thereafter both the district court and PTAB upheld the validity of his patents.  

https://www.ipwatchdog.com/2019/05/30/win-in-water-balloon-battle-suggests-hope-for-patent-owners-at-ptab/id=109785/
 

https://www.ipwatchdog.com/2018/05/31/tinnus-v-telebrands-federal-circuit-reverses-ptabs-finding-indefiniteness-ptab-erred-packard-analysis/id=97991/
So does that mean that the courts still have final say?   Watching the video, it made it seem like the PTAB did.  So if the PTAB invalidated a patent, your case in court no longer as merit as your patent no longer exists.

I did find it a little humorous like Congressman Issa did that any American looking for a patent would consider applying for one in China with an authoritarian government that does what it pleases when it pleases.   Does anyone really believe that if an American or really anyone for that matter has a patent in China, that the government wouldn't simply revoke that patent if it felt it was enough of a benefit to the state or one of its cronies?  

 
Chet, it I remember right, you had invested in some patents at some point, maybe which were being litigated?  (I don’t recall which or for what entity, and probably best to keep it that way).  Did the case not ultimately go well?  What is your complaint about the patent system and the way your case was ultimately decided, if you’re willing to share?
Ongoing GB.  Judges ruled that we violated the prosecution bar 2 1/2 years ago!  Complete BS according to anyone with knowledge BTW.  We had oral arguments over the summer and he still hasn't made a final ruling. I will let you know when we win the big $$$. 

 
What makes you say this?  As an "insider," I can honestly say I think folks are mostly just trying to get it right.  I don't see corporations gaming or having a big advantage in the patent system.  
I think a "reasoned" argument about anything that remains within political dialectic and rubric that is not highly uncontroversial to certain members of this board is difficult having. Careful, you're a pure patent guy who works Big Law in the area. You may not be dealing with the level of insider (regulatory capture, man!) knowledge of terms, issues, and other basics. 

I don't pretend to know the ins and outs of patent law other than it arises in the Constitution from Art. 1, Sec. 8, Cl. 8 and goes from there. Got me an A- in an intro. :bowtie:

Black dot on the topic. Always enjoy refreshers about it, how it works, the USPTO, atec. 

 
What makes you say this?  As an "insider," I can honestly say I think folks are mostly just trying to get it right.  I don't see corporations gaming or having a big advantage in the patent system.  
I'm going to PM you a stories about a couple of the rulings that we've had to endure.  I don't want to make them public but we have experienced the influence big corporations can apparently wield in patent situations.  My situation is not one of a patent troll--our founder invented some tech and patented it.  By the time the patent was issued, a big tech company had stolen it and included it in their products.   I believe our patent has 1000s of hours investigation by 100s of examiners--it is one of the most investigated patents in US history.

There was another ruling that basically allowed the defendant to extend the life of the trial by 10 years.  I will find out the name but it was a ruling from a very esoteric part of patent law that would have had us have to go to a Hawaiian judge for some kind of review.  We had to search to find a specialized patent attorney who was familiar with this part of the law.  He couldn't believe the defendants were able to get this ruling and said it was definitely not applied correctly.  The was ~7 years ago so my recollection is a little hazy.

Big tech can steal people's inventions with near impunity and then drag out the process with many bites at the apple.  And then they also got the right to exclude others (injunctive relief) taken off the books even though (I think) Thomas Jefferson wrote about exclusivity in the constitution.  I hope the Stronger Patent Act will reinstate that ability.

 
So does that mean that the courts still have final say?   Watching the video, it made it seem like the PTAB did.  So if the PTAB invalidated a patent, your case in court no longer as merit as your patent no longer exists.

I did find it a little humorous like Congressman Issa did that any American looking for a patent would consider applying for one in China with an authoritarian government that does what it pleases when it pleases.   Does anyone really believe that if an American or really anyone for that matter has a patent in China, that the government wouldn't simply revoke that patent if it felt it was enough of a benefit to the state or one of its cronies?  
The PTAB’s decisions on the merits are appealable to the judiciary, in this case the Court of Appeals for the Federal Circuit and then ultimately the Supreme Court (which has taken up a surprising number of patent cases in recent years). 

 
🤣  Come on man.
Other than they have more money and therefore more influence, but on a case by case basis, I really don’t see corporations getting any special treatment. Any litigator knows it’s quite the opposite—a corporation getting up against an individual inventor in front of a lay jury usually starts off with a disadvantage. 

 
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I'm going to PM you a stories about a couple of the rulings that we've had to endure.  I don't want to make them public but we have experienced the influence big corporations can apparently wield in patent situations.  My situation is not one of a patent troll--our founder invented some tech and patented it.  By the time the patent was issued, a big tech company had stolen it and included it in their products.   I believe our patent has 1000s of hours investigation by 100s of examiners--it is one of the most investigated patents in US history.

There was another ruling that basically allowed the defendant to extend the life of the trial by 10 years.  I will find out the name but it was a ruling from a very esoteric part of patent law that would have had us have to go to a Hawaiian judge for some kind of review.  We had to search to find a specialized patent attorney who was familiar with this part of the law.  He couldn't believe the defendants were able to get this ruling and said it was definitely not applied correctly.  The was ~7 years ago so my recollection is a little hazy.

Big tech can steal people's inventions with near impunity and then drag out the process with many bites at the apple.  And then they also got the right to exclude others (injunctive relief) taken off the books even though (I think) Thomas Jefferson wrote about exclusivity in the constitution.  I hope the Stronger Patent Act will reinstate that ability.
I'm with you on restoring injunctive relief.  The whole point of a patent is to grant a monopoly and give the patent holder the ability to exclude others.  Kind of silly if you take away that fundamental point, though there are some good public policy reasons it needs to be really carefully managed (e.g., if you give a WiFi patent holder the ability to exclude all WiFi product makers from the market without limitation, that's pretty dangerous for public policy). 

I'm not familiar with the Hawaiian judge thing you're talking about, but will look at your PM.  I will say, often times patent holders and plaintiffs don't have cases that are as strong as they believe.  And I honestly don't see corporations getting an advantage -- and while I represent big household name corporations quite frequently, I also represent plaintiff side patent holders (both big corporations and small family held companies and individual inventors).  There are challenges on both sides.  Which is how it should be.

Next time hire the Big O and rake in the Big Dough.  /Better Call Saul-like lawyer catch phrase. 

 
Other than they have more money and therefore more influence, but on a case by case basis, I really don’t see corporations getting any special treatment. Any litigator knows it’s quite the opposite—a corporation getting up against an individual inventor in front of a lay jury usually starts off with a disadvantage. 
Try getting to trial.  

 
Try getting to trial.  
Happens all the time.  I've been on both ends of it.  Sure we win a lot before trial, and most settle before trial anyway, but patent trials happen all the time.  And generally speaking I'd much rather have the plaintiff side of your average case than a defendant's side when it comes to trial.

 
Gonna have to side with Otis on this one. I don't litigate but do draft patent applications and assist inventors during examination (we call it "prosecute patents").  There are definitely flaws in the system, but certainly don't think it's broken beyond repair.  One thing that I see a lot is that people try to get a much broader patent than they deserve (e.g., they invent a specific way of doing X but then try to patent all ways of doing X)  or merely automating some process of doing X that was previously done by hand (e.g., do X on a computer). 

When I talk to inventors I often hear "I've never seen something like this in the market" which is probably true, but that doesn't mean that it hasn't been thought of before or wouldn't be obvious in view of what is known, so inventors often have higher expectations than what they should.  In the technologies I work with (and this is probably true in most areas), innovation happens in really small steps and a single patent doesn't usually have much value because a single patent can be worked around. It's when you have a portfolio of patents that protect several different aspects of an invention with different alternatives that you might have something worthwhile. 

 
As an inventor, the thing I take most issue with are how patents are written.  They are not intended to actually convey ideas clearly or succinctly.  They are written by lawyers, for lawyers.  Part of me thinks the whole thing is a ploy to keep patent attorneys remunerated with large fees.

 
As an inventor, the thing I take most issue with are how patents are written.  They are not intended to actually convey ideas clearly or succinctly.  They are written by lawyers, for lawyers.  Part of me thinks the whole thing is a ploy to keep patent attorneys remunerated with large fees.
I've been meaning to reply to this - sorry for the delay.

Anyway, I agree that many (most?) patents are awful to read. I think most patent attorneys try to make them readable, but they are definitely filled with legalese. Part of the problem is that  clients want to go as broad as possible. So if somebody invents a widget that has three beams that form a triangle and a wheel at each end of the triangle, they might say "well it could work with only two wheels or only two beams". The beams could be connected in the shape of a triangle but could be other shapes.  Thus we end up drafting something takes a simple triangle with 3 wheels and turns it into "a geometric shape having a plurality of support members having at least one wheel."  If we don't cover all of the possibilities, then company A makes a minor change to the widget and can get around your patent.  It just gets unwieldy and it's no more fun to write than it is to read.  I'd prefer to make them easier to write and read, but we definitely don't do it to keep ourselves employed. 

In short, don't blame those of us that write the patent applications, blame the litigators 😉

 
As an inventor, the thing I take most issue with are how patents are written.  They are not intended to actually convey ideas clearly or succinctly.  They are written by lawyers, for lawyers.  Part of me thinks the whole thing is a ploy to keep patent attorneys remunerated with large fees.
They are written for lawyers, by lawyers, because patents are useless to everyone else.  Patent lawyers charge a lot because every word that we write will be scrutinized and pulled apart later in litigation if your patent is valuable.  Writing a good patent application and prosecuting it well is not easy.  If you pay less, often you get less.  Trouble is, a very small percentage of patents are ever licensed or litigated, and so you can never know until years later whether you should have spent more or should have spent less....

 
They are written for lawyers, by lawyers, because patents are useless to everyone else.  Patent lawyers charge a lot because every word that we write will be scrutinized and pulled apart later in litigation if your patent is valuable.  Writing a good patent application and prosecuting it well is not easy.  If you pay less, often you get less.  Trouble is, a very small percentage of patents are ever licensed or litigated, and so you can never know until years later whether you should have spent more or should have spent less....
This. May I add, though a dilettante, is that your probably talking about the claims made in the application. The language in the patent is intentionally legal because it describes the metes and bounds of what the patent actually protects intellectually, if I'm not chiming in here and not mistaken. That means it largely takes a specialist to note what part of your invention is protected from infringement. The more vague you can be while being specific, the better chance you'll have enforcing your patent and the broader the scope of its protections. 

 
I've been meaning to reply to this - sorry for the delay.

Anyway, I agree that many (most?) patents are awful to read. I think most patent attorneys try to make them readable, but they are definitely filled with legalese. Part of the problem is that  clients want to go as broad as possible. So if somebody invents a widget that has three beams that form a triangle and a wheel at each end of the triangle, they might say "well it could work with only two wheels or only two beams". The beams could be connected in the shape of a triangle but could be other shapes.  Thus we end up drafting something takes a simple triangle with 3 wheels and turns it into "a geometric shape having a plurality of support members having at least one wheel."  If we don't cover all of the possibilities, then company A makes a minor change to the widget and can get around your patent.  It just gets unwieldy and it's no more fun to write than it is to read.  I'd prefer to make them easier to write and read, but we definitely don't do it to keep ourselves employed. 

In short, don't blame those of us that write the patent applications, blame the litigators 😉
:hot:

 

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