Posts Tagged: "US Department of Justice"

A number of organizations, including Ericsson, Nokia, Philips, Qualcomm, the Innovation Alliance and the Licensing Executives Society, have sent two separate letters to U.S. Attorney General William Barr, USPTO Director Andrei Iancu, and Secretary of Commerce Wilbur Ross stating their support for the United States’ decision to withdraw the Department of Justice, Antitrust Division’s assent to the 2013 joint DOJ-U.S. Patent and Trademark Office “Policy Statement on Remedies for Standards-Essential Patents Subject to Voluntary F/RAND Commitments” (the 2013 Joint Policy Statement). The letter sent by Ericsson, Nokia, Philips, and Qualcomm begins by explaining that those signing the letters collectively spend many billions of dollars annually to “the development of cutting-edge that substantially contribute to the social welfare and quality of life of U.S. consumers,” and “and employ tens of thousands of people in the U.S.” The letter goes on to explain that injunctions are necessary to address the widespread patent infringement that has occurred in recent years; infringement that risks innovators’ ability to continue to innovate and create next generation technologies. Without property protections it is economically irrational to invest the billions of dollars required to create cutting-edge technologies.

Missing for a while at the U.S. competition agencies has been an appreciation for how competition works in the real world — in particular, discounting the vital part intellectual property plays in sparking new competition and growing the economic pie. It can be easy to lock in a static view of the economic world.  Or misdefine “competition,” as Robert Bork noted in The Antitrust Paradox.  Fortunately, things are looking up. The Department of Justice’s Antitrust Division is now led by someone steeped both in antitrust and innovation.  This breath of fresh air is supplied by U.S. Assistant Attorney General Makan Delrahim.

It is no surprise to anyone that patent rights in the United States suffered enormously under the two terms served in the White House by President Barack Obama. That the Obama White House was uncomfortably close with Google is widely known, and Google has been the face and driving force of the lobby that supports weakening patent rights in America. What is far less clear, and extremely difficult to explain or understand, is why the Department of Justice continues to make arguments against patents. Indeed, in the DOJ brief filed in Oil States v. Greene’s Energy, the Solicitor General argues repeatedly throughout the brief that patents are not private property, but rather are a public right… At the very beginning of the brief filed by the DOJ in Oil States, in the Summary of the Argument, the DOJ stakes its claim and beings by arguing that patents are a public right (not private property) that is akin to a government-conferred franchise.

The lack of regulations here has led to the absolute worst-case scenario. People with disabilities have not been served since most companies are unaware this is an issue. Most don’t even realize this is something they have to consider until they receive a demand letter. That has certainly been the case for some of my clients. This leads to a scramble to get compliant. Unfortunately, it can take up to a year to do so depending on the complexity of the site. Meanwhile, plaintiffs’ attorneys across the country are taking advantage of the confusion. More than 260 website accessibility lawsuits were filed in 2016, and significantly more were filed by the end of 2017. But these numbers do not even begin to cover the cases that are settled pre-litigation.

Unlike previous years where we had near unanimity on the biggest moments, this year we see wide variety of thought, from SCOTUS to Capitol Hill to the DOJ… Steve Kunin focus primarily on the Supreme Court patent cases, which Bob Stoll also mentions but then goes on to discuss the lack of momentum for more patent reform and the nomination of a new Director for the USPTO as key moments. Paul Morinville also mentions the political on Capitol Hill, but focuses on Members of Congress not buying into the patent troll narrative like they once did. Erik Oliver focuses on a rebound in the patent market, Alden Abbott sees a pro-innovation, pro-patent Assistant Attorney General for Antitrust as a dramatic shift for the DOJ. Ben Natter, Jess Sblendorio and Alexander Callo focus on the Supreme Court’s decision in Matal v. Tam, which declared the prohibition against registering disparaging trademarks unconstitutional.

Last month, after a multi-year antitrust investigation, the United States Federal Trade Commission filed a complaint in federal district court charging Qualcomm with using anticompetitive business practices in violation of Section 5 of the Federal Trade Commission Act. The FTC’s decision to charge Qualcomm with violating Section 5 of the FTC Act, in lieu of alleging that Qualcomm’s conduct violated the Sherman Act appears to be the tactical equivalent of the government’s 1930’s decision to pursue Capone for tax evasion… Section 5 should not be used as a fallback device to challenge conduct actionable under the Sherman Act, but where the enforcement agency is unable or unwilling to meet the evidentiary rigor required by case law under the Sherman Act.