Posts Tagged: "Obama Administration"

Immediately prior to becoming Director of the un-opened Silicon Valley Patent Office, from 2003 to 2012, Lee was the Deputy General Counsel and Head of Patents and Patent Strategy at Google Inc. Google has been a outspoken critic of the U.S. patent system and based on their public positions and lobbying it is clear that the company would like to see software patents abolished and the patent system significantly curtailed. Recently other large Silicon Valley companies have split with Google and have started to work to promote the importance of patents as a tool for American innovation.

In recent weeks news has come out that Phil Johnson’s nomination as Director of the United States Patent and Trademark Office is dead. It seems to be dead due to the protest of at least one Senator on the Senate Judiciary Committee, not because the onerous vetting process produced any red flags or because the White House has lost interest. The Senator allegedly unhappy is Senator Chuck Schumer (D-NY)… [N]ominees [are put] through an extraordinary vetting process that reportedly can take between 5 to 9 months to complete even in the best case scenario. Let’s say that the White House has decided to move past Johnson and will not look back. They must first identify a willing candidate; someone who can pass through the gauntlet that is the vetting process, has the requisite experience and who is willing to take a substantial pay cut. Such an individually would likely having to unwind investments and holdings, or at least put them into some blind trust. Even if the White House can this week identify that person who accepts the invitation to take the position and who is willing to subject themselves to scrutiny that would make an IRS inquiry look like a day in the park, that means we are looking at at least January 2015 before confirmation.

It is almost incomprehensible that the Patent Office would put together a litigation resource that ignores the reality that many companies, both large and small, trample on the rights of innovators who have spent large amounts of time, money and energy receive a patent and disclosing their innovation to the world. . . the Patent Office only offers a one-sided help section that gives advice to infringers and sets a tone that comes across as anti-patent and anti-patent owner. This strikes me as fundamentally misguided and clearly demonstrates the anti-patent bias of the Obama Administration. . . I would expect the federal government — the Patent Office that is charged with an important Constitutional duty — to be even handed and empathetic to innovators and patent owners as well.

Currently the President is under fire for Executive Actions, which is something that he railed against when he was Presidential Candidate Obama in 2008, but increasingly embraces. The criticism of the President with respect to Executive Action has heretofore been related to the fact that through executive fiat the President has single handedly re-written laws passed by Congress… No such re-writing of law seems to be implicated in the Executive Actions announced today relative to the patent system. In fact, the Executive Actions on the patent front are largely much ado about nothing and seem most intended to grab headlines. Still, there are a few items that make perfect sense, such as the USPTO working with industry to train patent examiners on cutting edge scientific developments and an expansion of the pro bono program. Still, other initiatives claim to address patent quality but I can’t for the life of me understand how that could be possible. How accurate ownership records kept after the issuance of a patent will help patent quality is a mystery to me, and unexplained by the White House.

Even if one disregards the categorical distinctions between over-ruling the ITC order and foreign compulsory licenses, there are differences in the specifics as well. For example, the Administration’s decision rested heavily on the fact that the patent being violated was part of an industry standard. A patent that is critical to an industry standard can convey market power (and possibly monopoly power) on that patent holder. The Administration focused on and justified its decision based on avoiding abuse of that market power. Patents on medicine are completely different. There is rigorous competition, new medicines can be invented to treat the same malady, and there is no need for the types of industry standards that are more common in electronics. But it is those health care patents that foreign governments are undermining.

2013 turned out to be a very big year for IP, and especially patents, and the year took a course that few would have predicted this time last year. At that time, the senior team at the PTO was primarily focused on the imminent departure of our then-boss, David Kappos, and the end of what had clearly been an extraordinarily active and successful tenure. The AIA had been almost entirely implemented, the new Patent Trial and Appeal Board was up and running, and most of us expected 2013 to be focused on implementation and execution of the AIA and the other initiatives that had been set in motion under Director Kappos.

A source with knowledge close to the situation has also told me that “there will be other shoes to drop; the DNA episode is not the last.” To the outside world Gurry is affable, knowledgeable and a perfect ambassador of the benefits of intellectual property. Internally, however, he hides things and fosters conflict so that he can rise to the moment and come to the rescue. Indeed, aside from the various scandals WIPO appears to be an extremely dysfunctional workplace, which can only hinder the mission.

Deriving energy from the sun has been aggressively, albeit periodically, pursued since at least the 1970s when the U.S. suffered through several gas shortages. But over time gas prices decreased, the technology could not compete with cheap alternatives, so interest waned, although it never thoroughly disappeared… The Obama Administration, which seems exceptionally cozy with Google, seems to have real disdain for software patents, which is the Google articulated position. Thus, it is hard to reconcile the Obama Administration positions that are in favor of alternative energy but which are also against the patent eligibility of software. So many alternative energy innovations today and in the future will incorporate software.

What’s regrettable is that the White House didn’t wait for such empirical data on patent litigation and instead rehashed the findings of discredited studies of PAE-related lawsuits and their purported economic consequences. Specifically, I mean the infamous $29 billion victims are said to have paid to patent trolls in 2011, a number that has echoed around the Internet and made it into congressional debate despite its dubious origins. The number was produced by a study that failed to adequately define just what a troll is – even universities and many manufacturers were included – and then harvested its data not from a reputable polling or academic institution but from a company that has a dog in the patent fight and profits from fueling fears about infringement lawsuits.