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Last week, the Patent Trial and Appeal Board (PTAB) issued 23 institution-phase decisions in inter partes review (IPR) proceedings, resulting in 14 IPR institutions and nine IPR denials. Two of the instituted IPRs were brought by Facebook, which is seeking to invalidate claims of a photo tagging patent asserted against it in district court by Blackberry. Apple saw two of three IPRs instituted against Firstface, but the consumer tech giant was still successful in challenging claims from both of the fingerprint authentication patents it was seeking to invalidate. Apple also saw two successful IPR institutions against Nartron after failing in a series of petitions challenging the same patent.

This week on Capitol Hill, the House of Representatives is in recess but in the Senate, committee hearings will focus on the rescheduled oversight hearing for the U.S. Copyright Office, regulatory frameworks for cryptocurrencies and blockchain, and implementation of positive train control technologies. Elsewhere in Washington, D.C., the Brookings Institution will look at international threats to American space security while the Center for Strategic and International Studies will host an event with multiple panels exploring innovation and security issues in 5G networks. Today, the U.S. Patent and Trademark Office also hosted an event in Alexandria, VA, discussing the agency’s trademark auditing program.

A hearing of the House Subcommittee on Antitrust, Commercial, and Administrative Law held yesterday examined whether big tech companies—Amazon, Google, Facebook, and Apple—are becoming too powerful and deterring innovation. In “Online Platforms and Market Power, Part 2: Innovation and Entrepreneurship,” Subcommittee Chair, Representative David Cicilline (D-RI), said that Google controls search, Amazon controls nearly half of all online U.S. commerce, Facebook captures over 80% of global social media revenue, and Apple has total power over their customers’ devices. In his opening statement, Cicilline took issue with the 30% commission Apple charges on every developer sale in the first year, and 15% thereafter, pointing to this year’s Supreme Court decision in Apple v. Pepper which held that iPhone owners can sue Apple for monopolizing the retail market for the sale of apps, thereby raising prices for consumers. “A former Apple executive who oversaw app store approvals for seven years has also described Apple as having ‘complete and unprecedented power over their customers’ devices and using this power as a weapon against competitors,’” Cicilline said.

The United States is looking to antitrust law to break up big tech. Later today, for example, the House Subcommittee on Antitrust, Commercial, and Administrative Law will be meeting for a hearing on “Online Platforms and Market Power, Part 2: Innovation and Entrepreneurship.” Unfortunately, this may have become necessary, but it will not solve the problem of big tech monopolies. That can only be solved by understanding how big tech creates megamarkets and how they use shadow patent systems to regulate and perpetuate their monopolies—a power traditionally reserved for sovereigns. A patent is nothing but an exclusive right. All it can do is remove an infringer from the market. That incredible power enables startups to attract investment, commercialize new technologies, and challenge incumbents. The value of a patent is dependent on demand and market size. Since national borders establish the market size, the larger the country, the larger the market, and the more valuable a patent can become. But big tech markets are not restricted to national borders, so they get larger. Apple has 1.4 billion active devices reaching four times the 327 million population of the United States.

This week features a busy schedule of hearings on Capitol Hill involving technology, innovation and intellectual property topics. In the House of Representatives, the House Financial Services Committee will get their chance to vet Facebook’s Libra cryptocurrency, while other hearings focus on wireless spectrum policy, antitrust issues posed by Internet platforms, as well as issues facing the U.S. trademark system, including counterfeits and register cluttering. In the Senate, Google censorship, oversight of the U.S. Copyright Office and NASA’s plans to send a manned mission to Mars will be under the microscope. Elsewhere, the Information Technology and Innovation Foundation explores the current state of robotics and how they can help American productivity.

This week in Other Barks & Bites, IPWatchdog’s IP news roundup: the House of Representatives passes drug patent legislation, while antitrust legislation targeting patent-related activities is introduced into the Senate and the Trump administration mandates pricing information for pharmaceutical ads; the Patent Trial and Appeal Board (PTAB) issues a pair of precedential decisions on cases with multiple petitions; the USPTO issues marijuana-related trademark guidelines and a notice on modifying patent term adjustment practices; Gilead strikes a settlement with Teva to bring generic Truvada to the U.S. market in 2020; a new music licensing entity is created in Canada; Fourth Circuit rules that bankruptcy can eliminate damages for trade secret violations; and several amicus file briefs asking the U.S. Supreme Court to eliminate the Federal Circuit’s “blocking patent” doctrine.

This week on Capitol Hill, both the U.S. House of Representatives and the U.S. Senate are quiet for the next two weeks as the House enters district work periods and the Senate holds state work periods. However, various policy institutes around the nation’s capital continue to host events related to technology and innovation, and the Supreme Court will hear oral arguments in Andrei Iancu, Under Secretary of Commerce for Intellectual Property and Director, Patent and Trademark Offce v. Erik Brunetti. The week kicks off early on Monday with an all-day event at the Internet Society looking at the prospects of federal legislation to improve consumer data privacy from various angles and the Brunetti oral argument. The Cato Institute will host events related to government regulation of social media, as well as the section of U.S. Internet law which largely eliminates legal liability for online service providers based on user-generated content. The week wraps up with an event at the Center for Strategic and International Studies, which will look at U.S.-Australia cooperation in the digital economy, among other sectors. 

While readers of this website will be well aware of the damaging impact of “patent troll” rhetoric that has reached the highest levels of American political discourse, many players in the trademark space have been shining a light on the issue of “trademark trolls” in recent years. Trademark trolls can take several different forms, according to a December 2015 article published in the INTA Bulletin. Generally, a troll will register a trademark, often viewed as a frivolous mark by others in the industry, and then demand licensing payment, threaten litigation or issue serial takedowns on e-commerce platforms through assertion of the mark. These can include companies that file for domestic trademarks for a mark owned by a foreign company that hasn’t yet entered that market or entities, including individuals, who claim trademark use and registration to threaten infringement or issue takedowns against other entities, even when their use of the mark is in unrelated areas. Last spring, the word “troll” was thrown around once or twice to describe Faleena Hopkins, a romance novel writer who was asserting her trademark rights to the use of the word “Cocky” against other writers using that word in their book titles. Last June, changes to Canadian trademark laws that shifted requirements for trademark registration from first-to-use to first-to-file had sparked some fears that trademark trolling could result.

Patents are often referred to as monopolies. But that is a fundamental misunderstanding of how patents work to enhance competition. The truth is that a patent is a natural anti-monopoly. In a functioning patent system, inventions become investible assets when they are patented, and the value of the invention increases as market demand increases. Because of the direct relationship between market demand and patent value, a patented invention can attract enough investment to compete with entrenched incumbents in the market for the invention. This effect introduces new competitors into the market who are protected against incumbents for a long enough period that they can survive after the patent expires. Thus, patents act to increase competition by introducing new competitors into the market and thereby create competitive markets. But perhaps even more important, some inventions deliver a strong dose of creative destruction to monopolistic incumbents who did not innovate fast enough, causing those companies to fail and clearing the market of dead weight, thus opening the market to innovative new companies. Patents are the ultimate anti-monopoly in a free market. But for this to work, the market must function undisturbed by crony laws and regulations. A patent must be a presumed valid “exclusive Right.”

The Senate has a busy schedule related to tech and innovation topics for the week of April 8, including hearings on prescription drug pricing, broadband Internet coverage maps developed by the U.S. government, free speech on social media and tech platforms, and clean energy innovations to address climate change. The Senate Environment Committee also has a business meeting this week to discuss a piece of legislation that would support innovation in direct air carbon capture. This week’s tech and innovation lineup at the House of Representatives is a bit lighter, although there are hearings looking at a proposed bill to restore net neutrality, as well as a review of the 2020 budget request for the National Institute of Standards and Technology. Elsewhere, the Brookings Institution hosts events on EU-U.S. digital data collaboration and the impact of automation on the future of work, and the Information Technology and Innovation Foundation explores funding issues for the National Institutes of Health and their impact on American biomedical innovation.

USPTO Director Andrei Iancu participated in a fireside chat, titled “The Crossroads of Technology and Innovation,” hosted by the Consumer Technology Association (CTA) at its sixth annual Innovation Policy Day on Tuesday, March 12 at SXSW in Austin, Texas. Sitting with Director Iancu was host Michael Hayes, Sr. Manager of Government Affairs for the CTA. The chat was quite short and briefly touched on topics such as celebrating the 10 millionth-issued patent, the preparedness of the patent system for the future, artificial intelligence and patent eligibility, and the availability of patenting for all peoples. Then, in what some may consider to be an unscrupulous move, Hayes introduced the narrative of patent trolls.

Representative Steve Stivers (R-OH) and Representative Bill Foster (D-IL) introduced the Support Technology & Research for Our Nation’s Growth and Economic Resilience (STRONGER) Patents Act, which would in part restore injunctive relief as a remedy for patent infringement, in the U.S. House of Representatives in March of last year. While there has been much talk about closed-door discussions taking place on Capitol Hill recently around fixing Section 101 law, the House has not yet re-introduced the STRONGER Patents Act, and has thus far been focused on other issues this term. But Rep. Stivers seems confident that the Act has a chance this term, and says that this could be the consensus legislation the House needs. Read below for more on Rep. Stivers’ thoughts about patent reform in the 116th Congress, where the America Invents Act went wrong, and how we ensure the U.S. patent system is restored to number one.

This week in Other Barks & Bites: The United Nations highlights the importance of women in innovation on International Women’s Day; Comments due today on USPTO Section 101 Guidance; FDA Commissioner Scott Gottlieb resigns; a Senate bill with six bipartisan co-sponsors would increase requirements on patent disclosures for biologics; USPTO Director Iancu speaks out on Alice; Apple announces its intention to increase its presence in San Diego while its patent battle with Qualcomm heats up; Chinese copyright registrations increased by double digit percentage points in 2018; Stanley Black & Decker faces off against Sears in a trademark infringement battle over branding for Craftsman tools; Amazon announces that it will close dozens of pop-up stores in the U.S.; and Democrats from both houses of Congress introduce a new net neutrality bill.

This week on Capitol Hill, the newly revived Senate Subcommittee on Intellectual Property meets for the first time this term to discuss the 2019 “Annual Intellectual Property Report to Congress”; other Senate committee hearings will look at concerns related to drug pricing, the effects of the Made in China 2025 initiative on American industry and proposed legislation to support innovation in carbon capture technologies; U.S. House of Representatives committees hold hearings focusing on issues from cybersecurity in the nation’s surface transportation and defense agency to energy research funding programs and trade tensions between the U.S. and China; and elsewhere in the nation’s capital, the Heritage Foundation looks at issues related to the modernization of the United States’ nuclear submarine fleet and the Cato Institute holds a day-long event on Friday to examine the topic of regulating the activities of American tech giants like Facebook and Amazon.

This week in Other Barks & Bites: the Chinese and U.S. governments hash out intellectual property issues; a prominent New York City politician joins the effort to break the patent on Gilead’s Truvada; Qualcomm tells the ITC that Apple’s design around undermines the agency’s finding that an exclusion order shouldn’t be entered against infringing iPhones; the Fortnite copyright cases take a new turn; Babybel loses the trademark on its red wax cheese coating in the UK; Fisker & Paykel and ResMed settle their worldwide patent dispute; Facebook could face major FTC fines for payments from children playing video games on the platform; and reports indicate that Pinterest is pursuing an initial public offering.