U.S. Patent System is Broken, Declares Judge in Android v. Apple Cases
July 6, 2012 1:12 PM
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(Source: Word of the Nerd)
Veteran Judge Posner says "animals" like Apple are just exploiting the weapons an ineffectual gov't has created
"It's a constant struggle for survival. As in any jungle, the animals will use all the means at their disposal, all their teeth and claws that are permitted by the ecosystem," states
Judge Richard A. Posner
As a sitting judge on the
Seventh Circuit Court of Appeals
who occasionally moonlights as a judge in Chicago's
U.S. District Court, Northern District of Illinois
, Judge Posner has watched the devolution of America's intellectual property system over the past several decades.
I. Google v. Apple -- A Symptom of a Broken System
The most recent disheartening blow was the trial between Google Inc. (
) via its subsidiary Motorola Mobility and Apple, Inc. (
). Both companies clung to a handful of software and hardware patents, and neither agreed to cooperate or license. The "animals" were out for only one objective -- blood.
Apple has been particularly vicious in this ecosystem, suing every major Android manufacturer in dozens of courts worldwide. But as global intellectual property systems have come to mirror the patent system of the United States due to its role as a global economic leader, Apple's most pivotal battleground has been the U.S.
Judge Posner disappointed both Google and Apple when he
threw their respective lawsuits
out of court. He said that while both companies
had legitimate infringement claims
, that he would not tolerate their refusal to license or attempts to abuse the patent system as an anticompetitive tool.
The senior justice is no spring chicken. At 73, he is one of the older and more respected voices in intellectual property law. Nominated by President Ronald Reagan to the Seventh Circuit Court of Appeals in 1981, he's kept very busy penning dozens of books on economics and intellectual property law.
Judge Posner called Google and Apple "animals" who are simply using the weapons given to them by a broken system to try to kill each other. [Image Source: Tambako]
And what all his experience has taught him is that there's little hope for software patents and other types of intellectual property to be used as anything but anticompetitive weapons.
He comments, "It's not clear that we really need patents in most industries. You just have this proliferation of patents. It's a problem."
The patent system has its advocates, but it's hard to argue that there isn't some truth in Judge Posner's observation. Smartphone makers today are compelled to patent every single feature, no matter how trivial, from animations to icons. Then they are compelled to
waste money and resources to sue each other
never ending legal war
whose ultimate goal is arguably a quest for a state-enforced monopoly.
II. The Rises of the Trolls
In addition to the actually productive companies who abuse the system to try to gain an anticompetitive advantage, the broken system has spawned
the so-called "patent troll"
-- a company that produces nothing, and exists only to sue and extort money from others.
There's a great deal of
between the trolls and the legitimate firms. For example,
Chicago Public Media
Public Radio International
This American Life
When Patents Attack
" note that one of the world's largest patent trolls,
Intellectual Ventures LLC
, is headed by the former Chief Technology Officer of Microsoft Corp. (
) Nathan Myrhvold.
Many "patent trolls" simply sue people, while producing nothing of worth.
[Image Source: New Line Cinema; Fair Use clause
TITLE 17 > CHAPTER 1 > § 107
The favorite tactic of a patent troll is to file lawsuits in such a way that it's cheaper to settle than to fight the lawsuit in court. As a result, company are bled resources that could be directed towards legitimate develop that instead serve as a feast to the leeches.
Not all branches of the software industry follow this model. For example, the internet largely avoids patent litigation. And that is fortunate. If the internet followed the smartphone model, every website button, every font, every animation would be patented and few sites would exists, because only the large and powerful could maintain a sufficient arsenal to survive.
Instead, the internet opts for a democratic/collectivist solution where everyone works on common standards that are free for all. And despite claims from some industry figures that patents are "essential" to preserving "innovation", the internet has thrived and developed with remarkably few pesky patents.
III. A "Non-Biased" Observer
Despite handing Apple its biggest defeat on American soil, Judge Posner says he's a non-biased party. He even owns an iPhone, having upgraded from his trusty Research in Motion, Ltd. (
) BlackBerry. But he comments, "I'm not actually that interested in becoming part of the smartphone generation."
The Apple suit had actually been filed in Wisconsin Federal Court -- a court known to be relatively plaintiff friendly. However, Apple's "safe bet" became anything but when Judge Posner's friends in that court accepted his request to transfer the case to the Chicago court -- his local stomping ground.
Now the ball was in Judge Posner's court.
Judge Richard Posner says the U.S. patent system is broken.
[Image Source: Abel Uribe, Chicago Tribune]
Following the dismissal, Judge Posner says he does not begrudge Apple despite his frustration and its lawyers. With
$110B+ USD in the bank
, Apple should be unharmed by the ruling, comments Judge Posner. He argues Apple doesn't
to sue people.
Apple seemingly agrees. CEO Timothy Cook recently commented, "[We have] more than we need to run the company."
IV. Cleaning Out the Junk
Not everyone agrees.
Judge Lucy Koh
U.S. District Court for the Northern District of California
(San Jose/San Francisco) has written opinions that Apple would be "irreparably harmed" if Samsung Electronics Comp., Ltd. (
) is allowed to continue to sell products that infringe on Apple's patents, such as the claim to design ownership of a rectangular tablet.
She has subsequently banned sales of the Samsung
Galaxy Tab 10.1 tablet
Galaxy Nexus smartphone
However, Judge Posner’s voice is arguably among the most respect in American intellectual property law, and his endorsement of reassessing the validity of patents in certain sectors such as software is a pivotal one.
And there are signs that his counterparts overseas are moving in the same direction. In England, a UK court has
invalidated several key European Union patents
that Apple was using to sue Android smartphone makers. The court blasted Apple in its ruling, saying it re-patented already patented ideas and patented features already found in other products.
A perfect example is Apple's
patent on a "bounce animation"
, which was narrowed in the ruling. A bounce animation is essentially a transient response, one of the most obvious kinds of animations that one could devise.
Bounce animations on an HTC EVO running Android 2.3 "Gingerbread"
In nature things seldom just stop -- they have an elastic response, overshooting and then "bouncing" back into a resting position. Thus an animation -- like the one Apple patented -- of a scrolling or pinched object "overshooting" and then "bouncing" back into place is one of the most obvious and natural ideas ever, and has been done countless times in video games since the late 1980s/early 1990s.
The UK decision represents one possible conservative route to start implementing Judge Posner's suggested reforms -- scrap redundant and obvious software patents.
There are often literally
dozens of duplicate patents
on a specific technology. And there are literally tens of thousands (or more) patents that should not have been granted due to their obviousness. Thus, before any serious moving of the patent system occurs, it might be ideal to simply clean out the "junk in the attic" so-to-speak, as the UK court did.
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RE: Found the problem.
7/6/2012 2:38:55 PM
I remember when Steve Jobs bragged in an interview about a phone conference he had with the CEO of [I belive Nike] about how to make quality products and maintain profitability, and Jobs' simply replied
"stop making so much junk"
"Apple doesn't know how to make a $500 computer that isn't crap"
'when he took over Apple we made hundreds of products, printers, modems, thousands of SKU's, and when I was done cleaning house we had 12 SKU's'
If any of that was true, HP, Google and Microsoft would all be unprofitable. Sure, certain sectors of companies don't make money, but thats what diversification is all about. Ford doesn't make much at all selling Fiesta's, but they make a fortune on the F150, and the Fiesta keeps their CAFE industry average in check by raising their fleet fuel economy as a bonus.
This is much like how HP sells crappy computers and printers at a near-loss, but it balances out by pushing competing products to market and moving profitable ink cartrages.
I'm not saying companies should saturate the market with crap, like what has happened with Android phones/tablets, but Apple is inherently anti-competitive because their whole business model us based on making as few products as possible at the highest margin in tech, while patent trolling when a product competes with them in a sector they don't even market too.
The cheapest tablet Apple has is $500 and the cheapest phone (off-contract) is $500-$650 (AT&T/Virgin Mobile)
Maybe people want a decent $200 tablet and a basic $200 Android phone like the Nexus 7/Kindle Fire/Nook Color or take your pick of quality $200 off-contract Samsung and HTC smartphones. I have a Samsung Transform Ultra and Conquer 4G with Ting (Sprint) and I could never justify a $500+ iPhone, especially since I prefer pre-pay and non-contract plans where it won't be subsidized.
RE: Found the problem.
7/6/2012 3:23:35 PM
The Nexus phone is $350 off of contract!!!
I would assume they make huge profit on it as well.
The Profit margins on Iphones are insane, But corporations, and people are willing to pay these vast sums of money.
"If you look at the last five years, if you look at what major innovations have occurred in computing technology, every single one of them came from AMD. Not a single innovation came from Intel." -- AMD CEO Hector Ruiz in 2007
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