Ethics Paper
Software Patents - Are they worth it?
Ajmal Kunnummal
Fall 2014Software Patents
Are they worth it?
History of Software Patents in the US
The level of patentability of computer software has not always been clear cut in the United States or around the world. The laws and interpretations of them have changed from the time software came to use. The ease of patentability used to be much higher in the 60s then kept coming down for a few decades. It is still a contentious subject and it is not sure that the current status quo will hold for long.
Through the 60s and 70s, the U.S. Patent and Trademark Office was very reluctant to grant patents to inventions relating to computer software (Beck & Tysver). In Gottschalk v. Benson,
…show more content…
After this decision, it became very easy to obtain a software patent in the US as the requirements to qualify were very easy to meet. What is Patentable Now?
In recent years, the patentability of software has started to come down (Beck & Tysver). In the decision, In re Bilski, 2008, the Federal Circuit rejected it’s earlier holding that software is patentable if it provided a useful and tangible result. It replaced it with the ‘machine-or-transformation test’. This test holds that a process is patentable if either “it is tied to a particular machine or apparatus” or “it transforms a particular article into a different state or thing.” It rejected the patent in question because it failed this test. (In re Bilski, 2008).
In Bilski v. Kappos, 2010, the Supreme Court rejected the machine-or-transformation as a definitive test to check for patentability and partially overturned the In re Bilski decision. It stated that the test can only be used as a guideline, not as rule. It did not however give us any other test or analysis by which a process should be considered patentable. It also did not change the Federal Circuit’s decision on whether the Bilski patent was eligible.
Even though the machine-or-transformation test cannot be used as definitive test after Bilski v. Kappos, it is still used as an important guideline by the USPTO and many courts. Something is not considered patentable if it’s directed to an abstract idea and and the
The 1990 VE Holding interpretation is the current state of the law controlling patent venues. A subsequent amendment to § 1391(c) in 2011 prompted a fresh challenge of the joint interpretation in In re TC Heartland LLC, 821 F.3d 1338, 1343 (Fed. Cir. 2016). The Court’s holding in TC Heartland spoke strongly in support of the idea that Congress has recognized the VE Holding interpretation is the correct state of the law:
In the United States, patent-eligible subject matter includes four statutory categories as defined by 35 U.S.C. § 101 of the U.S. Code. Specifically, these four categories include “any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof.” In 2014, the U.S. Supreme Court in Alice Corp. Pty. Ltd. v. CLS Bank Int’l further expanded
The United States Patent and Trademark Office granted the exclusive right to the Knoll brothers to profit from their invention – Photoshop, which Adobe acquired through a licensing deal. While rewarding a person for his invention is good to promote innovation, rule utilitarians would disagree in grating the patent to them because it implicates a social cost that far outweighs the benefits of that one software and the people involved in making it. The inelastic nature of the patent gives tremendous amounts of leverage to Photoshop as it is the undisputed market leader of photo editing programs because it has features that its competitors aren’t allowed to offer due to the patent.
§101 cases are a particularly vexing subject for currently practicing patent attorneys. Specifically, there is a high state of flux with respect to patentable subject matter, causing uncertainty not only for attorneys, but also for inventors, investors, and engineers, whose life blood depends upon the patent system. A “101 conundrum” has resulted from Supreme Court’s creation of ineligible categories of patentable subject matter. These categories are: abstract ideas, laws of nature, and naturally occurring substances . The Supreme Court has neglected to define these categories , and attempts to define them have been rejected . While determining whether a claimed invention is directed to an ineligible category or not should be binary and
The United States Patent and Trademark Office is overloaded with thousands of applications a year, given an applicant can even get their patent filed. In the pharmaceutical industry, the patent process is in dire need of being reformed. A typical patent last twenty years and the process is a little different when it comes to manufacturing drugs compared to other industries. Partly because in the medical field research is more or less openly shared. However, on the pharmaceutical side the more concealed the better the chances are to get good profitable returns. During the beginning stages of getting a drug to market the drug must be tested and adhere to the Food and Drug Administration’s (FDA) guidelines. An FDA approved drug means that the
-There were big risks in going ahead with development before the granting of a patent.
The United States Patent Office (“USPTO”) faces criticism from its users and legislators that the timeliness of the patent process and ultimate quality of issued patents are inadequate. In order to address this criticism Congress made several changes to the authorities of the USPTO in the last decade and considered more changes in 2009. Nevertheless, problems persist and some stakeholders argue that reorganizing the USPTO as a government corporation would best alleviate these problems by broadening its authorities even further and releasing it from external constraints.
Lawson for their patent infringement case against Howell Jewelry. Howell Jewelry will lose the patent case because the memo will surface as an incriminating document in discovery of the lawsuit. Howell will have to abandon their new process and make arrangements for repayment of loss revenue to Greene. The public opinion in this case will side with Greene damaging the reputation of Howell’s business. Howell should resolve the patent infringement before going to court. The number of patent application is growing steadily,1 and we can easily hear the news of patent wars in global business, such as “Apple vs. Samsung” and “Microsoft vs. Motorola.” Even a firm called a “patent troll” which collects patents and makes profits from the litigation against the infringement has appeared in the market. The patent holders, however, do not always win the trial; roughly a half of all litigated patents are found to be invalid.2 Furthermore, not every conflict over patent rights involves a lawsuit. In fact, a majority of the disputes are settled; some of them are resolved peacefully before they go to court, and others are settled in the middle of the trial. Given these various scenarios, it is natural to attempt to integrate a series of events regarding patent rights and to clarify the mechanism behind them.
So the author found a smart way to reach this point. These patents are reviewed by a substantially randomly assigned examiner. Facts have proved that examiners are identified and it is possible to look at their history and work out if they are tough or lenient.
“ The Court looked to Gottschalk v. Benson and Parker v. Flook, and noted that both had explicitly refused to rely on the machine-or-transformation test as the sole test for patent eligibility.[4][5]
According to the Patent Act of 1952, patent may only be granted for inventions that are within the scope of patentable subject matter, useful, new, nonobvious and enabled (Ferrera et al., 2012). There are subject matters that are not patentable such as laws of nature, physical phenomena and abstract ideas. To be considered new, at least the person pursuing the patent be the person who invented it and must not have copied it from others (Ferrera, et al., 2012). To check novelty, prior art is review. Prior art is existing patents, publications, or knowledge (Ferrera, et al., 2012). Additionally, an invention can be patentable if the level of ordinary is low. There are expenses that go with obtaining and maintaining a
An often repeated example is the way Eli Lilly prevented the Lupin group from entering into the generic market for a drug. It got a patent for about 70 different chemical processes used to make the relevant drug.
According to the USPTO the amount of submitted patents has grown dramatically since 1963. The amount of patents applied for (including: plant, utility, design, foreign and domestic) in 1963 was 90,982. The number of applications has been steadily growing and in 2012, 576,763
Nonetheless, arbitrariness is inevitable due to analytical difficulties faced by examiners and courts. Without setting up a utility model, examiners and courts are plagued by hindsight bias in the U.S., let alone to say having a sub-requirement as such. Section 3(d) of the IPA is also designed to narrow the scope of patent protection, notwithstanding it has a definite goal — preventing evergreening. Section 3(d) also utilizes an explanatory note to delimitate special conditions of nowadays pharmaceutical practices. This thesis considers an explanatory note is a workable solution to comply with the non-discrimination obligation under article 27.1 of the TRIPS.
The Malaysian patent law uncovers some of the non-patentable subject matter relevant to the life