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Examiners Begin Issuing Alice Rejections for Software

Posted: Monday, Jul 14, 2014 @ 10:00 am | Written by Gene Quinn | 26 comments
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Posted in: Gene Quinn, Government, IP News, IPWatchdog.com Articles, Patent Prosecution, Patents, Software, Technology & Innovation, USPTO

A friend who handles large numbers of software patent applications for some of the most elite technology companies sent me an e-mail late last week about what he has already started seeing coming from patent examiners. He says he has seen the below form paragraph twice within a week. Most alarming, in one case the form paragraph came in the form of a supplemental office action, but the outstanding original office action didn’t have any patent eligibility rejections under 35 U.S.C. 101.

Claims… are rejected under 35 U.S.C. 101 because the claimed invention is directed to non statutory subject matter. In the instant invention, the claims are directed towards the concept of… [This] is considered a method of organizing human activities, therefore the claims are drawn to an abstract idea. The claims do not recite limitations that are “significantly more” than the abstract idea because the claims do not recite an improvement to another technology or technical field, an improvement to the functioning of the computer itself, or meaningful limitations beyond generally linking the use of an abstract idea to a particular technological environment. It should be noted the limitations of the current claims are performed by the generically recited processor. The limitations are merely instructions to implement the abstract idea on a computer and require no more than a generic computer to perform generic computer functions that are well-understood, routine and conventional activities previously known to the industry. Therefore, claims… are directed to non-statutory subject matter.

Did you notice the circular logic? The claims are abstract because the claims do not recite limitations significantly more than an abstract idea. Truthfully, this rather ridiculous logical construct can’t be blamed on patent examiners when the Supreme Court refuses to provide a definition for what is an abstract idea.





Todd Dickinson Leaves AIPLA

Posted: Monday, Jul 14, 2014 @ 9:28 am | Written by Gene Quinn | No Comments »
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Posted in: AIPLA, Gene Quinn, IP News

Todd Dickinson

Earlier this morning Wayne Sobon, President of the American Intellectual Property Lawyers Association, sent an e-mail to members announcing that Todd Dickinson will step down as Executive Director of the AIPLA. The announcement suggest this will be effective immediately, and provides no reason for Dickinson’s departure, although the announcement says Dickinson will remain engaged within the IP community.

Dickinson has been rumored to be on various short lists for appointments throughout the Obama Administration. Perhaps Dickinson is stepping down because he is being vetted for an appointment, or perhaps he just needs a break. In any event, for what it is worth, I think Dickinson appointment to the United States Court of Appeals for the Federal Circuit to replace the now retired Judge Randall would be extremely well received within the industry.

The e-mail sent by Sobon is reproduced below.





Supreme Court’s Latest Patent Case and Software Patentability

Posted: Monday, Jul 14, 2014 @ 8:00 am | Written by Raymond Millien | 1 Comment »
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Posted in: Government, Guest Contributors, IP News, IPWatchdog.com Articles, Patents, Raymond Millien, Software, Technology & Innovation, US Supreme Court

Last month, I co-authored an article on IPWatchdog.com about the legal, technical and academic communities’ over-a-decade long debate about the boundaries, legality and wisdom of software patents. Now, on June 19, 2014, the U.S. Supreme Court has issued a decision in its review of the U.S. Court of Appeals for the Federal Circuit’s en banc May 10, 2013, decision in CLS Bank v. Alice. Unfortunately, the clarity that many had hope for has not come to fruition!

What we do know for sure — for at least a 150 years now — is that U.S. Patent Law recognizes four broad categories of inventions eligible for patent protection: processes; machines; article of manufacture; and compositions of matter. 35 U.S.C. Section 101. We also know for sure, despite the oft-quoted recognition that the patent laws were made to cover “anything under the sun that is made by man,” Diamond v. Chakrabarty, 447 U.S. 303, 309 (1980) (quoting S. Rep. No. 1979, 82d Cong. 2d. Sess., 5 (1952)), the U.S. Supreme Court has long recognized that there are three exceptions to these four broad patent-eligibility categories: laws of nature; physical phenomena; and abstract ideas. Id. This is where the certainty ends.

The Supreme Court’s Alice decision has again left the IP bar without a clear, repeatable test to determine when exactly a software (or computer-implemented) claim is patentable versus being simply an abstract idea “free to all men and reserved exclusively to none,” Funk Brothers Seed Co. v. Kalo Inoculant Co., 333 U.S. 127, 130 (1948). This is perhaps not surprising as Alice is a case more about so-called “business method” patents than software patents! (In fact, three justices in a succinct, 116-word concurring opinion indicated that they would impose a per se ban on patenting business methods!) With respect to software patents, however, we still find ourselves with a myriad of USPTO Section 101 guidelines, flowcharts and presentation slides – the latest of which is a March 4, 2014, 19-pager which may very well get fatter after Alice!





A Conversation with Priceline.com Founder Jay Walker

Posted: Sunday, Jul 13, 2014 @ 8:00 am | Written by Gene Quinn | 2 comments
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Posted in: Gene Quinn, Interviews & Conversations, IP News, IPWatchdog.com Articles, Licensing, Patent Business & Deals, Patents

Jay Walker

Simply stated, Jay Walker is one of America’s best-known business inventors and entrepreneurs. Walker has founded multiple successful start-up companies across various industries, although he is best known to members of the public as the founder of Priceline.com.

Walker has had a incredibly successful career, and with well over 700 issued and pending U.S. and international patents he is the world’s 11th most patented living inventor. TIME magazine has twice named Walker as one of the “50 most influential business leaders in the digital age,” and he was selected by Businessweek as one of its 25 Internet pioneers “most responsible for changing the competitive landscape of almost every industry in the world.”  Newsweek has cited Walker as one of three executives at the forefront of the Internet commerce revolution. He is an icon within the patent world and one of the visionary leaders of the Internet business revolution.

Walker currently serves as executive chairman and lead inventor of Patent Properties, a successor in interest to Walker Digital, which has developed a new no-fault patent licensing system.

Recently I had the opportunity to interview Walker, along with the CEO of Patent Properties Jon Ellenthal. While nothing was ruled out of bounds for the interview we spent much of our time discussing his attempt to create a no-fault patent licensing system that will help innovators monetize patents through a uniform licensing regime that offers a variety of peripheral benefits to those who take licenses. In a broad sense there have been some who have tried to commoditize the monetization of patent licensing in the past, but as yet have largely been unsuccessfully. Initially I was skeptical, but listened. Over the Winter and Spring as I learned more about Walker’s plan I became intrigued because this effort and have come to believe that his plan has a real chance of succeeding. Of course, if anyone is going to be able to figure out the myriad issues involved Walker can.





Understanding Patent Claims

Posted: Saturday, Jul 12, 2014 @ 8:00 am | Written by Gene Quinn | 48 comments
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Posted in: Educational Information for Inventors, Gene Quinn, Inventors Information, IP News, IPWatchdog.com Articles, Patent Drafting, Patents

In order to obtain exclusive rights on an invention the law requires that the patent applicant particularly point out and distinctly claim the subject matter which the inventor regards as his or her invention. Any patent, or patent application, contains a variety of different sections that contain different information. Generally speaking, a patent is divided into a specification, drawings and patent claims. Only the patent claims define the exclusive right granted to the patent applicant; the rest of the patent is there to facilitate understanding of the claimed invention. Therefore, patent claims are in many respects the most important part of the patent application because it is the claims that define the invention for which the Patent Office has granted protection.

35 USC 112 requires that the applicant shall particularly point out and distinctly claim the subject matter which he or she regards as his or her invention. The portion of the application in which he or she does this forms the claim or claims. The claims are in many respects the most important part of the application because it is the claims that define the invention for which protection is granted.

Like most statutes, Title 35 is not very specific with respect to the details regarding implementation of its directives. Notice that 35 USC 112 only states that a claim is necessary, but does not provide any information on the structure or format of the claim or claims. It is, therefore, necessary to turn to Title 37 of the CFR to expand upon what is actually required. The basic section that deals with claim requirements is 37 CFR 1.75.





Qualcomm Patents: SMS Delivery and Wireless Security

Posted: Friday, Jul 11, 2014 @ 8:00 am | Written by Steve Brachmann | No Comments »
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Posted in: Companies We Follow, Guest Contributors, IP News, IPWatchdog.com Articles, Patents, Qualcomm, Steve Brachmann, Technology & Innovation, Wireless Technology

Qualcomm Incorporated is a major developer of semiconductors headquartered in San Diego, CA. This company dominates the global wireless baseband chipset market, and in the first quarter of 2014, the corporation’s 4G LTE technologies helped Qualcomm secure two-thirds of the market’s total revenue share. Company officials recently announced the acquisition of high-speed wireless technology start-up Wilocity, which has developed a data transfer system for wireless devices that operates at about three to four times the speed of Wi-Fi. Qualcomm is also a member of the AllSeen Alliance, a consortium of technology companies including Microsoft, Panasonic, LG and others working together towards promoting standard protocols for the Internet of Things, a subject we explored earlier this year in our coverage of the 2014 Consumer Electronics Show.

Qualcomm’s strong research and development activities in chipsets and other wireless telecommunications products are regularly featured in IPWatchdog’s Companies We Follow series. Today, we’ve scoured the recently issued patents and published patent applications from the U.S. Patent and Trademark Office to find the most intriguing inventions assigned to Qualcomm. Our search rendered up a variety of technologies designed to improve wireless communications networks that may interest our readers.

Our featured application in today’s column discusses one Qualcomm technology designed to establish a call session across a network for the real time transmission of text messages. This data system could also be used to aid data transmission for mobile banking and other applications. We also discuss a couple of intriguing systems for detecting physical movement of a device owner, including one invention which provides a navigational guide for indoor environments.





FTC Alleges Amazon Unlawfully Billed Parents for Millions of Dollars in Children’s Unauthorized In-App Charges

Posted: Thursday, Jul 10, 2014 @ 12:56 pm | Written by Federal Trade Commission | No Comments »
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Posted in: Amazon.com, Companies We Follow, Federal Trade Commission, Government, Internet, IP News, IPWatchdog.com Articles

FTC Building, Washington, D.C.

Amazon.com, Inc. has billed parents and other account holders for millions of dollars in unauthorized in-app charges incurred by children, according to a Federal Trade Commission complaint filed today in federal court.

The FTC’s lawsuit seeks a court order requiring refunds to consumers for the unauthorized charges and permanently banning the company from billing parents and other account holders for in-app charges without their consent. According to the complaint, Amazon keeps 30 percent of all in-app charges.

Amazon offers many children’s apps in its appstore for download to mobile devices such as the Kindle Fire. In its complaint, the FTC alleges that Amazon violated the FTC Act by billing parents and other Amazon account holders for charges incurred by their children without the permission of the parent or other account holder. Amazon’s setup allowed children playing these kids’ games to spend unlimited amounts of money to pay for virtual items within the apps such as “coins,” “stars,” and “acorns” without parental involvement.





100 Years Later: Patents of the World War I Era

Posted: Thursday, Jul 10, 2014 @ 10:00 am | Written by Steve Brachmann | No Comments »
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Posted in: Evolution of Technology, Guest Contributors, IP News, IPWatchdog.com Articles, Patents, Steve Brachmann, Technology & Innovation

Archduke Franz Ferdinand

June 28, 2014, marked the one-hundred year anniversary of the assassination of Archduke Franz Ferdinand of Austria, the precipitating event which catapulted the globe into World War I. Across the world, events to commemorate the First World War Centenary will take place between now and 2018, the centennial anniversary of the war’s end. In Sarajevo, the site of the assassination, a multitude of historical exhibits , a concert by the Vienna Philharmonic Orchestra and a speech by Bosnian politician Bakir Izetbegovic urging peace in the region took place. In Italy, a rendition of Verdi’s Requiem Mass was performed at the WWI memorial in Redipuglia to recognize the millions of Italians who died in the war. Leaders from the European Union congregated at the Menin Gate Memorial to the Missing in Ypres, Belgium, to mark the occasion.

As with other milestone occasions, we have decided to commemorate innovations and inventors from the World War I era, looking at a range of patents issued in that period. This review was interesting because it shows the difference in the scope of intellectual property then as opposed to now. We’ve tried to gather a good representation of diverse inventions from fields like transportation, medicine and food production. We noticed one patent we decided to share issued to a renowned inventor of the period, Nikola Tesla, who was born July 10, 1856. We also found a couple of patents directed at military equipment, especially rocket-propelled bombs, showing the scope of military development by American inventors in 1914.