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Patent Sanity

Finally, the United States Congress and the United States Supreme Court take action to reign in a patent system gone haywire.

For years, many in the software industry have expressed concern over software and business method patents and the patent system. Imposed by judicial fiat instead of legislative action, the filing of patent applications on software and business methods skyrocketed, inundating an overwhelmed U.S. Patent and Trademark Office (USPTO) without the examiner or prior art resources to properly dispose of the applications. Add to this a court-imposed heightened standard to substantiate obviousness, and the system yielded thousands of questionable patents that would ultimately need to be litigated. Moreover, the court effectively extended the reach of U.S. patents on software to the ends of the earth.

In the last few weeks, both the U.S. Supreme Court and Congress have said, “Enough is enough.” The tide has finally started to turn.

Congress (Finally) Does Something

The new majority in the U.S. Senate and House committees overseeing intellectual property drew first blood. Collaborating both across the aisle and between the two houses, uniform patent reform bills were introduced in both chambers, and the bills, as introduced, address many of the concerns expressed by the software industry. Among the key provisions that help theindustry are:

  • Apportionment of damages. Damages would no longer be measured on the economic value of the entire infringing device but only on the contribution of the infringing feature or component. Had this standard been in place, you would not have seen a $1.5 billion judgment against Microsoft in the Alcatel case. Whatever one may think of Microsoft, that judgment will…

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