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Print E-mail del.icio.us 22 comment(s) - last by exploderator.. on May 11 at 1:58 AM

Law professor's findings threaten to upset entire patent system

The validity of 46 patent court judges’ rulings are now under fire, thanks to the efforts of a George Washington University law professor that discovered a constitutional flaw in the process that appoints them.

“I actually ran [my discovery] by a number of colleagues who teach administrative law and constitutional law,” said Professor John F. Duffy. “No one thought it was a close question.”

Since 2000, says Duffy, patent judges have been appointed by the Secretary of Commerce. However, the Constitution restricts the appointment of inferior officers – of which patent judges are classified – to the President, “Courts of Law,” or government department heads.

The director of the Patent and Trademark Office previously held appointment duties, before a 1999 law shifted the burden to the Secretary of Commerce. Since then, 46 of the 74 judges that sit on the Board of Patent Appeals and Interferences (BPAI) were elected under the new law.

“That method of appointment is almost certainly unconstitutional,” writes Duffy (PDF).

According to the New York Times, the Justice Department has done everything but admit that Duffy is right: DoJ lawyers warned that Duffy’s discovery could be “cataclysmic” for the patent world, flinging open the doors for a bonanza of appeals and decision challenges. Such a finding would “cast a cloud over many thousands of board decisions … unsettling the expectations of patent holders and licensees across the nation.”

Compounding the problem is the sheer amount of money involved: patent judges over see cases with millions of dollars at stake, adjudicating over things like who invented something first, or challenges to a declined patent. One tech firm, Translogic, currently has $86 million on the line as it asked the Supreme Court to consider such a question last month.

Constitutional problems with pending legislation are overseen by the Justice Department’s Office of Legal Counsel, but it is overwhelmed with work. John O. McGlinnis, the former deputy assistant attorney general at the Office of Legal Counsel from 1987 to 1991, notes that the O.L.C. sees “an enormous number of bills.”

“A line attorney might just miss it,” he said.

Manipulation of governmental appointments was one of the United States founders’ “greatest grievances against executive power,” wrote Justice Harry A. Blackmun in his ruling for Freytag v. Commissioner, one of the precedent cases in Duffy’s and Translogic’s question. Limiting appointment power ensures that those appointed “were accountable to political force and the will of the people.”



Comments     Threshold


Patents...
By cscpianoman on 5/7/2008 9:17:10 AM , Rating: 5
You know, I think, in some cases, having a patent ousted may not necessarily be a bad thing. There are some out there that should have never made it past the mail room.




RE: Patents...
By cblais19 on 5/7/2008 9:24:09 AM , Rating: 4
I can see the thousands of patent lawyers clapping their hands in glee over the impending lawsuits.


RE: Patents...
By FITCamaro on 5/7/2008 9:37:50 AM , Rating: 5
And millions of consumers crying as the prices of goods go up to cover the cost of those lawsuits.


RE: Patents...
By 16nm on 5/7/08, Rating: 0
RE: Patents...
By Eris23007 on 5/7/2008 11:41:34 AM , Rating: 2
Sweet, and then the Presidential candidates would have more "corporate welfare" and "handouts to the wealthy" to complain about endlessly.

Hooray! :-P


RE: Patents...
By blaster5k on 5/7/2008 10:14:50 AM , Rating: 5
The patent system needs some serious overhaul. The point of patents in to encourage innovation by not allowing people to just blatantly copy designs that took time and money to put together. It seems that was forgotten along the way.

Now, we've got companies that just come out of the woodwork and sue whatever company happens to make something that treads on their "patent", thus triggering a swath of lawsuits and stiffling innovation. Pretty ridiculous.

Patents need to be rethought and with the rate that technology advances these days, their duration probably needs to go down. And software patents probably shouldn't even exist, period.

Now why aren't any lawmakers stepping up to the plate on this?


RE: Patents...
By Moishe on 5/7/2008 10:26:15 AM , Rating: 3
quote:
Now why aren't any lawmakers stepping up to the plate on this?


Because most lawmakers are purely self-serving snakes. If it would make them votes/money/power you can be sure they would do it...


RE: Patents...
By BladeVenom on 5/7/2008 10:45:59 AM , Rating: 2
Lawyers spend a lot of money lobbying politicians.


RE: Patents...
By maverick85wd on 5/7/2008 3:22:37 PM , Rating: 3
quote:
And software patents probably shouldn't even exist, period.


I will definitely agree with you that the patent system is largely out-dated and needs to be quite seriously revamped. However, if a person spends time and money on research while another person is spending time and money on developing code, why should either one of their hard work be copied (in the immediate future) without retribution?

I do not claim to have the solution to current patent law problems and how they should be worked to allow maximum innovation while at the same time allowing people to get payed. That's what law makers are for. And we all know how long it came take law makers to do ANYTHING. Perhaps, however, this issue will force them to take a closer look and re-think the laws as they are.


RE: Patents...
By JAB on 5/8/2008 1:15:39 AM , Rating: 2
Copyright laws can protect the hard work that goes into software without stifling innovation. The problem are not from companys that invest time in real work and research it is from people and companys who dont do any work and milk the system often by patenting something that someone else already put hard work into developing.

That and invalid patents are used as a threat by large companys against competition and innovation. Litigation is so expensive that companys often are shut out of business because they cant afford the potential legal fees.


RE: Patents...
By maverick85wd on 5/8/2008 1:29:43 PM , Rating: 2
I almost completely agree with your post. If you notice, I said the patent system is out-dated and needs some serious re-tooling. My point is that a person who develops code should still get payed and should be able to patent features unique to their software... even if for a (probably relatively small) period of time.

So what I'd like to know is, what exactly were you getting at? That patents should be done away with all together? Because that I disagree with.


RE: Patents...
By exploderator on 5/11/2008 1:58:35 AM , Rating: 2
I agree that programmers need to get paid. That's me, and I need to eat too.

But the question of software patents is tricky. At some point, the cost of administering and litigating all the protections, could be higher than the profits to be gained.

The underlying question is, who can you hire who actually and for real has the expertise needed to do a good job of software patents? I don't think judges and lawyers are well qualified to arbitrate this abstract and technical territory. To invite them into power in these matters is inviting cofusion and disaster.

I think that ultimately, software needs to protect itself through honest quality, salability, and real customer satisfaction and demand. It's a fast market, and if you can't hack it, then get a different job. Otherwise we end up with a 50% lawyers and judges surcharge built into the price, and a mess of confused decisions. This leads to stifling the market, and chaotically impacting the future of computer invention, which is as insane and impalitable to me as trying to legislate and limit thoughts or dreams.

There is no way we can really tell how or what invention in computing might come next. Some crytographic method could lead to the key breakthrough in AI tomorrow. Lets hope it isn't patented. To limit this unpredictable creativity with patents is a profound presumption about the lack of value of the unknown, in a market where this quarter's unknown is next quarter's millions, and the following quarter's old news.


Health Care Patents are the real issue
By DtTall on 5/7/2008 10:41:05 AM , Rating: 2
One of the scary things inthe health care industry is that companies and doctors have been trying to patent a certain process of treatment (not actual devices).

quote:
The legal concern is that physicians won't do something because they're concerned that somebody will sue them, and if that affects the care that they are trying to provide to the patients, then that's a negative," he said.


http://www.law.com/jsp/article.jsp?id=118457679163...




RE: Health Care Patents are the real issue
By DragonFire on 5/7/2008 12:09:56 PM , Rating: 2
When it it comes to the health care system in this country, patents are the least of our problems.


RE: Health Care Patents are the real issue
By Yawgm0th on 5/7/2008 5:25:32 PM , Rating: 2
I disagree. Patents, copyrights, and the very concept intellectual property are key to the affordability of health care in the United States. We have, by far, the best health care in the world, but the legal complications caused largely by the patent system have led to greatly increased costs for American citizens.

The universal health care plans proposed by the Democratic candidates would be far less necessary -- perhaps even inadvisable -- if current laws regarding intellectual property didn't have the entire medical industry (especially the pharmaceutical industry) bogged down in costs to the point of being prohibitively expensive for average Americans. It's wonderful for pharmaceutical companies and other medical patent-holders, but terrible for the American people.

I would contend that the ridiculous patent system is perhaps the single greatest contributor to the lack of affordable health care and drugs in the United States.


By tdktank59 on 5/8/2008 1:03:42 AM , Rating: 1
But look at it from the eyes of the pharmaceutical companies...

They spend millions of dollars to research something that may or may not work in the end. It takes countless hours to develop a drug such as Advil (well it did when they created it)

Now look at the costs they have to make up... millions of dollars right?

Where does that money come from. If you have knock off brands coming out right after you produce it, it will take you a hell of a long time to recoup the money that you spent on making the product.

Now if you had a patent that guaranteed you had 5 years to exclusive rights (you can sell to other companies if you want) You can charge 5+ times the amount that you would be able to if there were knockoff brands and recoup the money you spent to create the product...

In the end if we remove the patents and stuff on health care drugs, processes you name it (what ever can be patented...) There would be no innovation, or very little at that.

Lets put it in more lamense terms...

Say you have a friend that wants $10,000 and there are a few of his friends that can lend him the 10 grand. Now you say he has to pay you back in 3 years and another friend says 5 years... Who's your friend going to go to? (lets say hes looking for the lowest monthly payment) he would go to his other friend instead of you.

Now lets say he only has you being able to lend him the 10 grand and you say he has to pay you back in 2 years. Either he will walk away and say another time... or he will take it and pay you back in the 2 years.

Catch my drift?

Sure the rich can get the drugs when they first come out... but if theres no benefit to create the drug the poor will never get it either because it will never exist...

Thus thats why i think universal health care would be a HORRIBLE IDEA!!!!

I can keep going on i did an essay for my econ class on this... plus a group discussion


More evidence
By DigitalFreak on 5/7/2008 3:00:46 PM , Rating: 2
Just goes to show that the people running this country have no idea of what's in the constitution. Very sad




RE: More evidence
By Omega215D on 5/7/2008 5:53:13 PM , Rating: 3
Constitution? I thought we got rid of that thing. ;P


RE: More evidence
By PhoenixKnight on 5/7/2008 7:52:06 PM , Rating: 1
I think it's locked up in Guantanamo.


is this right?
By HighWing on 5/7/2008 2:10:58 PM , Rating: 3
If I read this correctly, the DoJ is basically saying "yes this guy is right, but we won't admit it or change anything because it could cause more work and trouble for us"?