Patent office issues final rejection of NTP patent

This CNET News.com article by Tom Krazit includes:

The USPTO has already issued nonfinal actions rejecting the claims in four out of the five NTP patents in question, but a final rejection is required before the appeals process can begin.

We need to remember that the issue here is not NTP or RIM, or any "violations" of patents, but major flaws in the patent system. Patent quality for software is extremely low, with estimates being somewhere between 5% and 40% being of reasonable quality (IE: far less than half). A reasonable response to protect innovation would be to direct patent offices and courts to never grant or honour patents in a specific subject matter where a certain level of patent quality has not been achieved.

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First, your patent quality

First, your patent quality statistics are far off. See:
http://patentlaw.typepad.com/patent/2005/05/index.html

The Professional Inventors Alliance has a wealth of information about RIM and their adversaries, and please note that RIM has many beyond the NTP case. I am sorry to see that you have bought most of their PR hype.

We believe that RIM has been built on a rotten foundation. Canadians should not be proud of RIM for the same reasons that many Americans are not proud of our multinationals. Might , PR, and lobbying do not make right.

Mr. Balsillie, chairman and co-CEO of Research in Motion (RIM) has very efficient public relations and lobbying operations which plead his case in media and on the Hill while a multitude of RIM's victims for the most part suffer in silence. As you will see below - we of the Professional Inventors Alliance (PIAUSA.org) strongly believe that he and his company RIM - are clearly the "patent abusers" and we are disappointed that most of media does little more than repeat RIM's self serving propaganda! We understand that big money speaks loudly in the political process but are disappointed that most of media is failing to do due diligence before writing about these issues.

Based in part on the information detailed below, we believe that RIM has demonstrated an exceptional appetite for others’ intellectual property.

The best known case is RIM’s attempt to deny inventor Thomas J. Campana and his family justice in the RIM v. NTP dispute. So many innovators' stories are tragic because well heeled predators decide to take their inventions. In this case, an American inventor and small business person died in 2004 without seeing justice. Justice delayed is truly justice denied. We should all pause to think about the injustices American innovators may be suffering at the hands of RIM and all the other inventors who are suffering similarly across America. .

In addition to the NTP case where RIM was caught red handed trying to foist contrived evidence on the court, RIM was sued by the University of Texas for patent infringement and paid $1.8 million dollars to settle that case. RIM also was alleged to have infringed a patent held by Antor Media Corporation.

Even more recently an American inventor of predictive text Howard Gutowitz, who owns a small company named Eatoni Ergonomics, tried to license his inventions to RIM. RIM responded with a lawsuit. This is a common tactic of deep pocketed companies, which often is a ploy to bankrupt financially weaker inventors. Our organization, PIAUSA.org has helped this inventor make contact with those who are in a position to stay the course until justice is achieved.

It is our opinion that RIM's litigation with Howard Gutowitz may well become as contentious and self destructive as their battle with NTP. How will investors and end users react when they discover that RIM is facing a very similar situation to the NTP case? What businesses will deploy RIM services when they have legitimately licensed alternatives such as Visto and Good Technology and the Palm Treo? Why isn't our government switching to reputable service providers who respect American innovator's intellectual property? And perhaps the most important question is why some of our representatives are backing patent pirates!

In light of RIM’s rash actions, can investors or users have any confidence that RIM will not make similar decisions in the future?

Mr. Balsillie made some outrageous claims in a WSJ editorial letter regarding NTP’s abuse of the patent system. It is our understanding from off record USPTO sources that RIM lobbied the USPTO to initiate reexaminations of NTP's patents and in concert with their PR and political efforts also made many reexamination requests through normal and back channels as evidenced by Rep. Tom Davis (R-Va.) outrageous comments. Rep Davis has been reported to have said the BlackBerry case exposed inefficiencies with how the Patent and Trademark Office operates. We agree, in that it has exposed how someone who is dead wrong appears to be able to buy influence both with the legislature and the USPTO.

What the RIM case demonstrates is that American inventors' are being discouraged by patent pirates at a time when we desperately need those inventors and the jobs they create. This sin is being compounded by the sin of a coalition of patent pirates vision of a reformed patent system which would make inventing a kings sport. A system where innovators do not have a prayer of building the next generation of innovative companies.

During a reexamination an inventor is entitled to add claims as long as such claims are supported by the original disclosure. Seeking the full coverage which an inventor is entitled to under law is not an abuse of the system. This is especially true when the reexamination was forced on the inventor. We did not find RIM's claims of patent system abuse by NTP to be credible, and the large number of reexamination requests made by RIM is a perfect example of how an opponent of an inventor who has deep pockets can and does abuse the patent system to create delays and unduly burden invention based small business with the goal of bankrupting them. When an inventor is crushed financially, the infringer wins by default.

The USPTO has become increasingly politicized over the last decade. When faced with a hot potato like the RIM v. NTP case and the fact that RIM is politically savvy while NTP and the other victims of an insatiable appetite for other's invention are not, the USPTO is anxious to lob the hot potato into the appellate courts. This is not the first case PIAUSA.org has seen such conduct from the USPTO. It is unfortunate that the agency can be influenced by companies who pirate inventors property and a gross injustice to America's inventors and the public.

In light of RIM's pattern of patent disputes, PIAUSA finds it hard to believe that RIM is always the injured party.

It is common for young successful companies to feel invincible. There are a number of contemporary examples of such companies who act like bullies when it comes to their use of the intellectual property of others.

While such tactics may often work for years, sooner or later companies who take others intellectual property do meet their match. The results often take a severe toll on them. Those who live by the sword, eventually die by it. It is those companies who unjustly appropriate other's intellectual property who are howling for changes to the patent system which would cement their positions and legitimize their appropriation of other's property.

It seems that what RIM may lack in an ability to invent for themselves, they make up in marketing, public relations, and lobbying savvy. There is no doubt that RIM is very sophisticated in those areas.

Mr. Balsillie makes some rather sweeping claims about America's patent system, claims which Mr. Davis parrots. Like other companies who are being held accountable for taking liberties with others' inventions, they claim our patent system is deficient. On the contrary, it is that patent system which has fueled our economy and there is no question that America is the greatest economic success story in the world today in large part due to our exceptional patent system.

Many foreign competitors would like to see our successful country pulled down to their levels. The reforms which RIM and our own multinational companies are promoting are designed to protect those company's vested interests but would kill the patent system which has made America, truly the land of opportunity.

Some companies who pirate others intellectual property make self serving claims that there is consensus among experts supporting their agenda for “reforming” the patent system. These claims are false. Dr. Irving Kayton, a top IP law expert in the US is adamantly opposed to the changes being proposed as was recently deceased former patent commissioner Don Banner and a multitude of other intellectual property experts and patent practioners also oppose so called patent reform.

Inventors and the companies they form are the seeds of new industries – examples being HP, Apple, Edison, the Wright brothers, Gordon Gould (LASER), Wilson Greatbatch (Pacemaker), and Dr. Ray Damadian (MRI). They create jobs and tax base. As long as inventors control their companies their ties to the community keep those businesses in those communities. When American innovators’ property is taken -- society's losses are greater than the loss the inventor suffers. When an innovator’s life blood is sapped by protracted litigation -- their ability to innovate and build businesses is crushed along with the businesses they can no longer support and nurture. When large companies get away with taking inventions the benefits of those inventions generally end up in a low wage country while the patent pirate's business unjustly profits from its acts. In the end it is the American public that is impoverished.

Adding insult to injury is the massive PR campaign being orchestrated by abusive companies. In my opinion it is truly ironic that RIM and other companies with similar mindsets are painting those they abuse as abusers. This is an example of doublespeak and of spin at its best.

Many years ago I observed that some CEO's as being similar to teenage boys, big egos - little thought before engaging those egos, short term gain orientation and marginally developed sense of ethics. The situation which RIM and several other companies who have been accused of pirating other's inventions most certainly reinforces this observation.

====

The Professional Inventors Alliance USA was created more than a decade ago to protect American invention and encourage innovation. American inventors saw a need to track congressional legislation and federal policy that impacts independent inventors, small and medium-sized businesses and colleges and universities. The Alliance is the premiere organization in the nation, providing independent inventors a united voice in order to improve public policy.

The Alliance provides legislative counsel, congressional updates and strategy development to its members through a number of vehicles. Additionally, through its speaker’s bureau, Alliance members have an opportunity to provide expert opinion to many of the nation’s top-tier business, technology and mainstream media organizations. Over the years its members have testified before Congress, offered counsel to key Senate and House committee members, and successfully pushed legislation to protect America’s independent inventors.

Since its inception, the organization has grown into one of the most vocal advocates for America’s patent system.

Ronald J Riley, President
Professional Inventors Alliance
www.PIAUSA.org
RJR (at) PIAUSA.org
Change "at" to @
RJR Direct # (202) 318-1595

Faith-based support in a dysfunctional patent system

"First, your patent quality statistics are far off."

You are repeating the common misconception that all things which are patentable have the same economic and other analysis. What you quote is the irrelevant overall numbers for patents (and numbers which are themselves under considerable debate), not information/mental process patents which have a patent quality of 40% (If you trust pro-patent extremist Gregory Aharonian) or lower if you add additional criteria beyond prior-art searches.

The overall numbers you give are controversial because they are based on the assumption that all parties to a patent dispute have the legal and financial resources required to defend their interests. The reality is that poor quality patents most often never make it to court as only the largest of companies can defend themselves from these poor quality patents. Nearly all of the "joke" patents (exercising a cat, entertaining a dog, parting your hair, etc) stay in the system and eventually expire as nobody attempts to enforce these patents, and nobody in the private sector can spend the resources to eradicate these embarrassing patents. Whether they are enforced or not, they are still proof that the system has major flaws and is is critical need of reform.

The rest of your message is based on the mistake of believing that if I am against the enforcement of the low quality patents held by NTP that I am somehow pro-RIM. RIM as a company supports the system of legal landmines that they are currently being hit with, so I have little sympathy for their specific case.

I am not really interested in either of these companies, but interested in promoting innovation. Patents are to innovation like water is to humans; too little and you dehydrate and die, too much and you drown and die.

The reality is that we are currently drowning in excessive patents, largely poor quality patents or patents in subject matter that should never be patentable for either moral (life forms, etc) or economic reasons (information/mental processes which independent economic studies have concluded harm innovation).

It is pure nonsense to have an organization claim to be a "Professional Inventors Alliance" come out blindly in support of the current patent system, especially the dysfunctional one in the United States. It indicates an almost religious faith-based support in a system which requires economic analysis to determine if it is helping or harming innovations.

Hopefully more innovators will recognize that faith-based support in government policy is harmful to their interests. If organizations like yours do not move to sound economic policy then eventually you will be left with nothing but a group of lawyers with no inventors involved at all.

Note: Infringing a patent, even a good quality patent or patents in legitimate subject matters, is not remotely similar to "taking their property" as you seem to base your rhetoric on. You seem to disagree with your own founding fathers such as Thomas Jefferson who said that "If nature has made any one thing less susceptible than all others of exclusive property, it is the action of the thinking power called an idea" (Thomas Jefferson , 13 Aug. 1813)

The disrespect of the ideas expressed by USA's founding fathers by so many today in the United States is disheartening to see. They had some very wise ideas at the time, ideas which many today could learn quite a bit from.


Free/Libre and Open Source Software (FLOSS) consultant.