Gary Locke: Patent Office Needs Self-Control of Funding and Enhanced Post-Grant Review

PatentLawPic985The following essay was written by Secretary of Commerce Gary Locke and originally published in Politico. Locke is the former Governor of Washington and former partner at Davis Wright Tremaine. As you may know, the US Patent & Trademark Office operates as a branch of the Department of Commerce. 

* * * * *

As Congress hurtles toward the midterm elections, there are two things everyone agrees Washington needs to keep working on: spurring job creation and promoting continuing economic recovery.

Fortunately, there’s legislation now before Congress that has bipartisan support, can boost our economy and doesn’t add a cent to our federal debt. This bill aims to fix the outdated patent system, which has left the U.S. Patent and Trademark Office with a backlog of 750,000 applications — a backlog that’s threatening America’s ability to innovate. 

And that’s a big problem, because innovation is the lifeblood of the U.S. economy. The introduction of new products and services accounts for three-quarters of America’s annual growth rate since World War II. This innovation is fueled by businesses, inventors and entrepreneurs who depend on patent protection to attract capital investment and to promote and protect their products and services in the global marketplace. Today, America’s patent system – and by extension our entire innovation system – isn’t working. As a result, we are jeopardizing our edge in the global economy.

America may still be a world leader in key metrics of economic success – like levels of entrepreneurship, R&D investment and IT infrastructure – but a report last year from the Information Technology and Innovation Foundation concluded that no advanced economy has done less than the United States to improve its competitive position over the past decade. President Barack Obama sees the urgency of this problem and has announced a formal National Innovation Strategy, which, among other things, calls for doubling the budgets of agencies like the National Science Foundation so they can better support the basic research that spawns new products and services.

But to unleash the full power of America’s innovators, we’ve got to repair an overloaded and inefficient patent system. The unacceptably long backlog at the patent office – in which the average time it takes to grant or deny a patent is more than 34 months – is a striking signal of the system’s dysfunction. Since taking over at the patent office last August, David Kappos has already made significant strides in reforming the workplace, improving productivity and boosting morale. These steps and others have been applauded by all sectors of the innovation community. But additional, desperately needed reforms require action by Congress. The Commerce Department just released a white paper that quantifies the effect America’s patent system has on the economy and job creation and describes the benefits of two key elements of pending patent reform legislation.

First, Congress will grant fee-setting authority to the patent office, which will enable it to adjust the actual costs of the services it provides. This could contribute significantly to the office’s ability to reduce the application backlog by 40 percent. Second, creating an enhanced post-grant review procedure within the office will provide an alternative to costly – and often lengthy – litigation. It could also provide greater marketplace certainty – at lower cost. This review procedure is expected to be 50-100 times less expensive than litigation.

The patent reform legislation being considered by both chambers will also improve patent quality, streamline the patent examination process, promote international harmonization of patent law and limit litigation expenses. All these provisions will foster innovation and contribute to long-term economic growth. As we move forward on reforming our patent laws, we need to remember that the ultimate goal is to create more American jobs that can provide dignity, security and a sense of hope for the future. After a decade fueled by speculation and short-term thinking, the United States needs to refocus on nurturing innovations that generate real value for society and spur sustainable job creation. It’s not the role of the federal government to predict or dictate exactly how this new economy will take shape. Our job is to create the right set of incentives, regulations and laws that allow innovators to experiment with new ideas, build new businesses and follow their dreams. Patent reform legislation is a key part of this strategy. To promote continued economic recovery, it is critical for Congress to create a business environment that fosters innovation and risk taking ‹ accelerating economic growth and job creation and expanding America’s ability to innovate. Now is the time to act. Congress should seize this opportunity and send patent reform legislation to the president’s desk. Gary Locke is the secretary of commerce.

182 thoughts on “Gary Locke: Patent Office Needs Self-Control of Funding and Enhanced Post-Grant Review

  1. 182

    “No client is going to make a malpractice case stick if you were reasonably diligent in getting the application filed”.

    Right. Because Americans are generally so incredibly reasonable when they feel they’ve lost something to which they are entitled, and courts never play the “you could have done something different” card.

    Thanks for the chuckle.

  2. 181

    NWPA
    I have been fed so much s_i_, I don’t know who to believe. Fifteen years of my life have been taken from me because I was fighting for Justice.
    I know there were no Bars. But that still didn’t change the fact I was in a Prison. The patent ideas I have are not crap.So many I have let go of. And I would have been perfectly happy to do this for the rest of my life, and I couldn’t even do that. So if I throw a few spitballs the wrong way. Just duck.

  3. 180

    >>And why has a lot of babel boys Trademarks >>come out of NWPA main office?

    What is the meaning of that sentence, Sarah?

    NWPA main office? I suppose we have a main office, but it is not mine.

  4. 179

    >>The PTO should focus on issuing well examined >>patents – period.

    Exactly. The rest would take of itself. The applications without merit and poorly written applications would stop coming in as they would no longer be worth filing, and the new applications would be written better as clients would see value in writing a good application and hiring a good attorney.

  5. 176

    RWA, you’re apparently not a govn’t employee. If you were, you’d see that while your solution does successfully solve all of the problems and protect everyone’s rights equally, it just can’t work. It doesn’t involve huge sums of money or new offices and additional govn’t employees, so it’s a nonstarter.

  6. 175

    The message decoded:

    Reducing backlog:

    Get poorly examined applications into the body of issued patents as quickly as possible so that the substance of inventions along with their potential litigation targets is known as soon as possible. This way, large institutional infringers can get to work as soon as possible.

    Enhanced post-grant review:

    an endless series of challenges to patents that have been identified as meaningful that is designed essentially to force all parties to play their hands outside the courtroom while infringement continues unabated

    Result

    Since the poorly examined application will most likely be routed to “post-grant” review, effective litigation and the threat thereof will become a thing of the past allowing infringers to ply their trade with impunity and little need to take licenses. Truly innovative parties (which large corporations never are) will lose interest in patents all together since patents will be rendered toothless by hurried and shoddy examination and endless post grant review. The presumption of validity will be completely destroyed due to the double whammy of poor quality /open ended review.

    All of this, again, is brought to you courtesy of the new rapid examination agenda (“reduction of backlog”) and the attendant “enhanced post-grant review.” The very existence of these measures admits to a total lack of confidence in the examination system that has made our country such an engine of innovation.

    What should happen is people should stop worrying about the backlog. It is a total red herring.

    The PTO should focus on issuing well examined patents – period. The aim should be to strengthen the presumption of validity through strong examination and to reduce any hint of post-grant review, with the exception of the existing re-examination provisions.

    Anything else is a complete sell out to large corporate interests and a huge leap toward the total death of American innovation and vigorous entrepreneurship.

  7. 174

    It’s certainly laudable, and critical, for the USPTO to reduce backlog, provide alternatives to protracted litigation, improve patent quality, accelerate the examination process, encourage harmonization, and curtail the costs of patent law. The question is whether the legislation currently on the table can accomplish these things, or whether there are better means. Somehow I doubt that the patent reform bill’s provisions for post-grant review and fee-setting authority present the requisite magic bullet.

  8. 172

    So, they do not EVER exercise any filtering. They file everything out of shear terror.

    As long as we avoid doing something perfectly lawful out of sheer terror, the system will never change. Someday it may even become the de facto standard (if it isn’t already), and then it will be inequitable/negligent to exclude even cumulative references.

    It’s too bad it’s almost never economical to act any other way.

  9. 171

    And that in itself takes me back…. back to the Chinese Olympics. Where thet opening of the games showed…… Worker ants. all in unison for one goal. To feed the Monster.

    Monster ( gigantic, huge, enormus.) Although awesome. Sort of like an Elephant.

  10. 170

    The USPTO should recognize that sometimes things get to big. It’s just like on Wall Street. And the USPTO is “SUPPOSED” to be in control of their street,(R)ight?

  11. 169

    I have an Idea. you can’t Patent it. but Congress can legislate it.
    Elephant Spell Elephant
    Elephant:

    Enter
    Legislation
    Ending
    Pravell
    Hewitt
    AKA AKIN GUMP
    Now
    TODAY.. Elephant

  12. 168

    If I am on the wrong road my dear sarah, it is only because I am traveling with you.

  13. 167

    Hey Berkie,
    You said it all on the first comment..You are Awesome (COUGHS) LOLOLOLOLOLOLOLLLLOLOOOLLLLROFLMAO.Talk about foot in mouth. Lets see you wiggle out of that one. And I sure hope the Prez reads this. And then looks back at the evidence. Now will Kappos be able to run this ship? I doubt it. Berky I believe you are about to get what you deserve.
    Told you Ping. you have taken the wrong road. Now you can both sit on the other side of the Boat. GAFFE!!!!!!!!!!!!!!!!

  14. 166

    Gary Locke says the Patent Office needs self control…… How about this little tid bit that will read. I fire Berkenstock again for the umpteenth time. Because again I see PHK&K are again back controlling me on April 30, 2002. So again I look again on the USPTO Web site as to who is in control of 5,832,857. And on May 7, 2002, and it’s me. Then I look at the Kent Patent. And it is expired before it’s time. And this is on the very same day (May 7, 2002) as the PHK&K AKA..(Berkenstock )lets go. But then again he illegally takes control back! And the USPTO knows this. And then Moatz snarls to me. you can make it too. Now I ask you? How can the USPTO get control of that? They are that. Now is the USPTO Akin Gump? Elementary my dear Watson.

  15. 164

    Can I get a cite from the Law [sic – cap intended] of Unintended Consequences?

    There is no question of “when in doubt, report”. Given that no reasonable person would ever (and I do mean ever) guarantee how any examiner is going to read any art, this almost soitenly means that IDS’s will be bloated.

    It really is just a natural consequence.

  16. 163

    Well, Dog and IANAE, I have been there on the witness stand going over every reference I did not cite that was, what I thought, cumulative. We won the case, but the experience was, let us say, not a good one. I never want to repeat it. No attorney in their right mind wants this to happen to them.

    So, they do not EVER exercise any filtering. They file everything out of shear terror.

  17. 162

    (me)You’ll still spend a nasty 8 hours in deposition and be cast on the witness stand as an embarrassment to your client.
    (IANAE) “There’s nothing you can do in an IDS to prevent that.”

    Beg to differ (hope it differs). You won’t avoid the depo, but having cited all 70 references located in the patentability report (instead of just the 12 truly relevant refs you’d cite), can get inequitable conduct resolved prior to trial.

  18. 161

    You’ll still spend a nasty 8 hours in deposition and be cast on the witness stand as an embarrassment to your client.

    There’s nothing you can do in an IDS to prevent that. Maybe they should add a checkbox at the bottom for it.

    use of genuine attorney professional judgment for IDS purposes may be rendering them a disservice.

    I don’t think you’d be rendering the applicant a disservice at all, provided your judgment doesn’t eat up too much billable time, and you disclose all doubtful cases (whether the doubt is as to pertinence or cumulativeness) and document your reasoning.

    Now, if your client wants every patent ever published on the front “page” of his issued patent, that’s a whole other story.

  19. 160

    IANAE posted, “No, we don’t have …to disclose the five thousand references that are cumulative to the closet prior art. Just pick out the gems, list them on a one-page IDS, and you’re good.”

    IANAE, I’m curious to know whether any of the patents you wrote and prosecuted using the above-quote IDS ideology have been litigated yet.

    It doesn’t matter how pure (and correct) your intentions are. You’ll still spend a nasty 8 hours in deposition and be cast on the witness stand as an embarrassment to your client.

    All this to say, I agree you’ve written what should be the standard, but until the CAFC sees fit to arrange its own disparate rulings into something more coherent, use of genuine attorney professional judgment for IDS purposes may be rendering them a disservice.

  20. 159

    If you’re searching for close art to anything other than the claims, it seems to me you’re doing a lot of extra work.”

    IANAE – ya know that is what is required though. Compact prosecution and all. What good is searching only the claims when you know that any rejection based on such a limited search is relatively easily overcome.

    You yourself seem to recognize this when you also say “It’s also good for us to see the best prior art as early as possible so we can make decisions to pursue or abandon the application.” Since no one in their right mind (well, not many at least) will let their app die on a first rejection when the specification gives additional outs (and what good attorney doesn’t plan for such additional outs?), searching only the initial claims seems a sure fire way to spend a sum total of more time per application.

    I have to admit thou – setting up a good strawman such as this that you can argue both sides is genius.

  21. 158

    The 35 USC 121 controversy will not be taken en banc. link to cafc.uscourts.gov

    The feds will not take a panel decision en banc that clearly “overrule” two prior decisions on Section 121. I am persuaded that Gajarsa is right on the conflict.

    So where does that leave the law? Another Atlantic Thermoplastic problem that will linger for a time?

    The nut: the panel decision says it is OK to file in one divisional all non elected inventions, and then to file a second divisional from the first with even if there is no restriction in the second divisional.

    This holding conflicts with two prior precedents to the contrary.

  22. 157

    I’m assuming that Dennis is busy with finals which is why we have been looking at Gary Lock’s picture for the past 3 days.

    Clearly Dennis hasn’t found the best art.

    Let’s hope it can be amended after finals.

  23. 156

    My preference is to find the closest Prior Art before writing the first Office Action.

    The closest prior art to what? The claims as presented? The entire disclosure of the specification that might be claimed at a later date? What you can discern as the inventive concept of the application?

    If you’re searching for close art to anything other than the claims, it seems to me you’re doing a lot of extra work. The applicant is only entitled to a patent unless his claims are invalid. I’m glad your approach saves you time later on, and maybe that’s a lesson you could circulate around the PTO. It’s also good for us to see the best prior art as early as possible so we can make decisions to pursue or abandon the application.

  24. 155

    I’m assuming that Dennis is busy with finals which is why we have been looking at Gary Lock’s picture for the past 3 days.

  25. 154

    “My preference is to find the closest Prior Art before writing the first Office Action.”

    You’re in a distinct minority over there then. In fact, you may be a minority of one.

    “I will speak only to my art –computer software…”

    What are you planning on doing after the Supreme Court outlaws software patents?

  26. 153

    “Kappos is still representing IBM.”

    Never has a truer word been spoken.

    Nobody could have predicted this.

  27. 152

    MaxDrei: “So, at the USPTO, on average, how many Examiner hours go into writing the FAOM, and how much into the haggling downstream of that? Does it make sense to split these two tasks, with a fee required, in between?”

    There are many factors that affect the answers to your questions. I will speak only to my art — computer software, where the major players are IBM, Microsoft, etc. who have very deep pockets.

    Your first question varies from examiner to examiner.

    My preference is to find the closest Prior Art before writing the first Office Action. Therefore, most of my examining time is spent on the FAOM (about 75%).

    Based on my experience, I’ve found that citing the best Prior Art in the FAOM makes all subsequent prosecution much easier. Thus, the “haggling downstream” portion of my examination involves about 25% of my time.

    To answer your second question, based on my experience with Applicants filing RCEs, IBM and Microsoft wouldn’t hesitate to pay the fee to continue prosecution.

  28. 151

    “For his filing fee the applicant may present to the PTO up to 50 references that he wishes the application be be evaluated against. For additional fees he may present more. . . . The examiner’s job is to assess the application against only references provided by the applicant.”

    I support that 100%. Based on the IDSes filed in my cases, this policy would make my job exponentially easier.

  29. 150

    To Boss 12: I’m interested in your view about smoothing USPTO resources, to get on top of the backlog.

    In the EPO, by historical accident, the search phase and the “haggling with the Applicant” phase are separate. If you want to haggle, after you get the search report and FAOM (called in Europe the EESR), you cough up a substantial fee. In a significant proportion of cases, Applicant doesn’t bother.

    So, at the USPTO, on average, how many Examiner hours go into writing the FAOM, and how much into the haggling downstream of that? Does it make sense to split these two tasks, with a fee required, in between?

  30. 148

    “FTF makes the inventor and the attorney rush to file before fully developing the invention, the written description and claims particularly pointing out the invention.”

    That happens now. Thus, First-to-File won’t change anything.

  31. 147

    “Suppose applicants could get a refund of their filing fees if they abandoned their applications before a first office action on the merits. Would that free up 25% of the USPTO resources and cure the backlog?”

    No.

  32. 146

    NWPA writes:

    “our economic laws in this country recognize that a monopoly is not a good thing”

    Quite so. That is why (is it not?) the US Constitution takes the trouble, in explicit terms, to permit a specific exception to that recognition, namely, the patents clause.

    Everywhere else in the world but the USA has “exclusive right” and “patent monopoly” as synonyms. And the American patent right is more potent than that of any other country.

  33. 145

    IANAE: our economic laws in this country recognize that a monopoly is not a good thing for many reasons.

    The PTO has been a monopoly since its inception.

    Besides, the constitution clearly states that Congress has a monopoly on these monopolies.

  34. 144

    IANAE: our economic laws in this country recognize that a monopoly is not a good thing for many reasons.

  35. 143

    The problem with this is that what will keep the USPTO from just bilking the inventors?

    What will keep them from giving discounts to foreigners?

    What will keep them from giving away patents for free?

    What will keep them from demanding payment in chickens?

    We must stop this legislation!

  36. 142

    >>Consumer Reports Lifts ‘Don’t Buy’ Warning >>From Lexus GX460

    News flash: MM”s aunt is now controlling the brakes of all Lexus GX460’s. She is telephoned from the Lexus prior to entering a curve and then she commands the Lexus brake system around the curve. She also offers greeting card and movie recommendations to the passengers based on their location and driving habits.

  37. 141

    The problem with this is that what will keep the USPTO from just bilking the inventors

    Why of course, the Office will present data showing that the near level perfect Quality will be achieved in this area as well.

    Trust us.

  38. 140

    until someone at the PTO satisfies himself

    Someone remind me again about just how this was supposed to be done?

  39. 139

    >First, Congress will grant fee-setting >authority to the patent office, which will >enable it to adjust the actual costs of the >services it provides

    The problem with this is that what will keep the USPTO from just bilking the inventors?

  40. 137

    Locke left office on January 12, 2005. If the disputed 2004 election between Christine Gregoire and Dino Rossi had not been resolved by then, Locke would, under Washington’s constitution, have remained in office until a successor qualified.

  41. 135

    IANAE, you probably have a duty to inform your insurance carrier that you’re not citing every reference ever mentioned to you by a client.

  42. 134

    But what we have with the current interpretation of materiality is an obligation to inundate the examiner with a mountain of barely relevant references intermixed indistinguishably a few gems.

    No, we don’t have that obligation. We don’t have to disclose the five thousand references that are cumulative to the closet prior art. Just pick out the gems, list them on a one-page IDS, and you’re good. If you’re not sure which of a dozen references is the closest, disclose those twelve and the rest are cumulative.

    What we do have is an economic incentive to inundate the examiner with a mountain of barely relevant references, because it’s far cheaper and easier to do than checking which one is the closest. Plus, it can be done by some poor, low-paid, non-billing clerical worker.

    None of this has anything to do with changes to Rule 56, which I still believe would tip the balance between disclosure and non-disclosure only in the very rarest of cases.

  43. 133

    No, honesty is the best policy at all times.

    But what we have with the current interpretation of materiality is an obligation to inundate the examiner with a mountain of barely relevant references intermixed indistinguishably a few gems.

    We need to rethink the problem and the solution. The current Rule 56 is much better, IMHO, than the current standard of materiality enunciated by the Federal Circuit.

  44. 132

    Only the insane would deliberately commit fraud on the PTO to obtain an invalid patent and then try to enforce it.

    You keep trying to find loopholes that allow you not to disclose the closest prior art. Are you one of the insane ones, or are you suggesting that it’s okay to commit fraud on the PTO to obtain a valid patent? Or both?

  45. 131

    Also, IANAE, we do have Walker Process where, not only are attorneys fees awarded, but damages tripled.

    Enough disincentive yet?

    Only the insane would deliberately commit fraud on the PTO to obtain an invalid patent and then try to enforce it.

    BTW, I had a meeting with just such a malefactor on the same day the Feds handed down a decision agreeing that he had deliberately and intentionally misrepresented the prior art to the examiner in his prosecution of a related case. I brought this to his attention and kicked him out of my conference room. I never heard from him again.

  46. 130

    STOCK MARKET CRASHING AGAIN!

    Quick, somebody tell Kappos to issue a bunch of patents to save the economy!!!!!!!

  47. 129

    Let’s then add criminal penalties for fraud.

    What, more criminal penalties for fraud? Is the current maximum jail term too lenient?

  48. 128

    IANAE, OK, you have a point.

    Let’s then add criminal penalties for fraud.

    Make it really, really bad for the malefactors. Toss them in jail. Throw away the key. AND, take away their fortune.

    Enough disincentive yet?

  49. 127

    IANAE, the problem of prior invention is independent of an expedited examination where the risk of a bad search and overbroad claim are shift heavily against the patent owner.

    Ned, the problem of granting patents that have not been properly examined shifts the risk heavily against the public. Awarding costs against the unsuccessful patentee/plaintiff is not the whole answer to that problem.

    Patents are an encumbrance on free commerce, and we tolerate them to the extent necessary to promote innovation in the useful arts, but we shouldn’t be giving them out until someone at the PTO satisfies himself that an innovation has in fact been perpetrated.

  50. 126

    6, good to see you guys in the PTO have a subscription to Heinlein. I don’t have one, but wish I did.

    I once wrote a little piece for the JPTOS that resulted in a wholesale statutory revision of Section 102(e).

  51. 125

    IANAE, the problem of prior invention is independent of an expedited examination where the risk of a bad search and overbroad claim are shift heavily against the patent owner.

  52. 124

    take it one step further:

    Take it one step further. The US is first-to-invent, so let’s do away with filing altogether. You’re going to get your patent anyway, so who needs the PTO? Fire all the examiners – the purpose of the patent law is not to promote employment, after all.

    Sue whenever you want, on whatever claim you can dream up, and the defendant has to show that the claim is invalid over prior art that was in existence at whatever date of invention you can prove for that claim.

  53. 123

    Babel, take it one step further: examine such a patent application for formalities only. Provide by law that if any claim is invalid, over any art, the 50 disclosed or not, the whole patent is unenforeceable and that the patent owner must pay the attorney fees and costs of any accused infringer who litigates, either in court or in a interpartes reexamination, and wins. (This pretty much is the English rule.)

  54. 122

    “but what do you make of the argument that a new method of swinging on a general purpose swing creates a new special purpose swing? ”

    I make of it that you just granted me that the argument you are now presenting is false.

  55. 121

    ” it is the invention of the machine itself, which is to give a patent right, and not the application of it to any particular purpose, of which it is susceptible.”

    I’ll grant you that, but what do you make of the argument that a new method of swinging on a general purpose swing creates a new special purpose swing? Or that a new method of exercising a general purpose cat (if cats can be said to have a purpose at all) creates a new special purpose cat?

  56. 120

    You guys should really check this sht out. You’ve got the whole JPTOS avialable to you at that site. Vol 1 has some interesting things. Ol’ Thommy J “enunciates while in a reminiscent mood certain rules established by the board, such as that neither a mere change of material nor change of form should give title to an invention, and that (to use his own language) ” it is the invention of the machine itself, which is to give a patent right, and not the application of it to any particular purpose, of which it is susceptible.” These are now among the precepts of accepted practice and could only be uttered by one not merely learned in the law but vitally concerned in the progress of invention and in establishing a firm and philosophical basis for patent procedure.”

    Is that not some sht? It seems even ol’ Thommy J contemplated the question of the reprogrammed general purpose computer. At the very inception of the Board no less!

    I have to say Ping, they seemed to have lawls that made a great deal more sense than those which we have today do. I could almost see how progress was strictly promoted by them back in the day.

  57. 119

    That was odd, but a female bailliff from 6’s Court of Opinion just handed me a note.

    The note reads:

    6, Funny
    6 reading – That’s even Funnier
    6 reading History – Even Funnier yet.
    6 reading Historyand having any clue as to how that may relate to real world law? – Aint Goin. To. Happen.

    6, yous gotta control your wimin.

  58. 118

    An account of what happened just post-Great Depression in the Office and with attorneys is included at pg 751.

    Good stuff.

  59. 117

    Editor’s Page: Tentative Plan for Publishing Selected Decisions of the Board of Appeals. pg 271.

    Rich stuff.

  60. 116

    Look at page 167, “Inventions, Progress and Unemployment”

    “Current writings of the day frequently claim that inventions are the cause of unemployment. That is unfortunate.”

    LOL “That is unfortunate.”

    LOLOLOLOLOLOL

    Seems like people have been knowing about inventions producing unemployment for quite awhle now.

  61. 115

    If the applicant wants to cut his own throat, he can withhold anything he wants and deal with it in litigation. If he feels the reference is not analogous, he can withhold it and deal with it in litigation.

    If the applicant wants to threaten people with litigation on a patent that is clearly anticipated by a reference, he can withhold it and deal with it in litigation.

    Now, what are we going to do if the courts wind up with a backlog? Any infringement case pending for three years, the plaintiff can pay a fee and automatically win? Or let the defendant submit a list of 50 patents and have his infringement determined only with respect to those patents? It would save a lot of time.

  62. 114

    Guys check this sht out I just found. It’s a copy of the Journal of the Patent Office Society from 1934! It’s talking about business method patents!

    “Method of Doing Business” by Geo. E. Tew

    Here’s some excerpts:

    “There is no sufficient or inclusive definition in decided cases of what constitutes a patentable method or “art” under the Statute.”

    Look at that sht!

    It gets better!

    “A definition most often quoted or relied on is that in Cochrane v Deener, 94 U.S. 780 that-

    A process is a mode of treatment of certain materials to produce a given result. It is an act or series of acts performed upon the subject mater to be transformed and reduced to a different state or thing.”

    link to heinonline.org

    I had no idea that this debate could legitimately be said to be going on since my grandfather was a youngen.

    Check this gem:

    “As to methods of doing business we find such expressions as that in Ex parte Abraham, 1869 C. D. 59 — “it is contrary to the spirit of the patent law as construed by the Office for many years, to grant patents for methods or analogous systems of bookkeeping”

    Ned and that other dude who is all the time doing research around here will be very interested to find a list of business methods that were held not patentable and patentable on page 609!

    Quite a find for me I have to say. I’m down with me some history.

  63. 112

    Dear Mr Locke:
    You want an improved system? I’ll fix it for you.

    Re-write the code and CFR to eliminate all searching by the PTO.

    For his filing fee the applicant may present to the PTO up to 50 references that he wishes the application be be evaluated against. For additional fees he may present more.

    Re-examination remains an option in the event the patentee finds new references.

    The examiner’s job is to assess the application against only references provided by the applicant. Any patent that issues has a strong presumption of validity, but only against the references presented by the applicant.

    The courts should be severely restricted in challenging the patent as to the examined art. But there would be absolutely no inference of validity as to art that was not examined.

    The incentive is on the applicant to search the literature and provide the best references possible. Forget inequitable conduct. Forget non-analogous art arguments. If the applicant wants to cut his own throat, he can withhold anything he wants and deal with it in litigation. If he feels the reference is not analogous, he can withhold it and deal with it in litigation.

    Infringers can judge the strength of the patent against what art was not considered, which motivates them to do their own searching. This will keep Greg Aharonian happy and out of everybody’s hair.

    My invoice is enclosed.

    Respectfully,
    Babel Boy

  64. 111

    Thank you book publishers. You see what the others are missing.

    Once the dolt politicians extend the goals of the patent system to social objectives beyond the promotion of the arts and sciences, the sky’s the limit.

    The next thing we’ll get from them is that the primary objective of the patent system is to promote racial equality. Then it will be to promote gender equality. Then, once Israel has completed its hegemony of the US Congress, it will be to promote Zionism.

    Sky’s the limit.

  65. 110

    Well ping and IANAE, you fail to consider that for the first 40+ years of this country we did not have claims and we did not have examination for novelty.

    Right. And they saw fit to change that at some point.

    The problem at that time was that such patents were practically unenforeceable and the scope of the patent were the preferred embodiments you described, no more.

    Yeah, that must be why they changed it. Does that put a damper on your nostalgia for simpler times at all?

    I don’t really want a system where someone can file a patent application for the wheel, get it classified in an art unit where there’s a 4-year backlog, buy a rubber stamp three years later, and go around suing everyone. Examination is a good thing. Could be made a better thing, but it’s a good thing.

  66. 109

    Well ping and IANAE, you fail to consider that for the first 40+ years of this country we did not have claims and we did not have examination for novelty. The problem at that time was that such patents were practically unenforeceable and the scope of the patent were the preferred embodiments you described, no more. So, I actually do not think that all that many applicants would simply choose the get out of jail free card.

    But, one never knows. There are companies, like IBM for example, who seem to want large numbers of patents and who seem to not intend to enforce most. Such a system would be highly attractive to such a company.

  67. 107

    Okay, if you know the invention was made very recently it’s not an issue

    You never know whether someone else independently invented the thing (or some other thing that invalidates it) a year ago and published or filed it where you can’t find it. What’s more, most clients won’t pay you to go looking for it. It’s just as much as risk in FTI as in FTF.

    At least you’re safe from the inventor’s own art if the invention is relatively recent, but you’re always safe from that if you ask your client the right questions.

  68. 106

    Ned: But, just as the Office gets only two actions before you can appeal, they should get only three years to complete examination. If they don’t do it faster, the applicants should have an option of simply ending it with a fee.

    See, I would have addressed the pendency problem with more examination. What you propose is less. Guess we’ll have to agree to disagree.

    AI: It is an irrefutable, undeniable FACT that when a small Inventor/ entrepreneur is granted a patent that Inventor instantly creates one job for him/herself and is likely to create many more for his/her family, community and country.

    Irrefutable, undeniable fact, eh? Every time a small inventor is granted a patent he creates one job for himself? Poor guy must be exhausted after he gets his fifth patent.

    Also, the small inventor who asked Obama about his patent some time ago didn’t appear to be able to turn his patent into a job for himself.

    Claiming that every single small-inventor patent always undeniably turns into enough income to support the inventor is pretty creative, granted, but not the sort of thing that entitles you to call yourself an “actual inventor”.

    fish sticks: Which situation generates more U.S. jobs:

    That depends. If Americans just go about their business, I’d say situation (b) with 16 times as many foreign filings would employ a lot more US agents and examiners.

    If you’re talking about the patents themselves creating jobs, that depends on what the patents cover. A hundred patents that cover minor improvements to a single product people were going to buy anyway don’t create very many jobs at all.

  69. 105

    Ron Katznelson

    Excellent work!

    Can you shoot me copies of Tafas v. USPTO, 2007, Admin. Rcrd., A07170 and A04372? I’d like to get a better feel for how they calculate their abandonment rates. I want to make sure we are comparing apples to apples.

  70. 104

    “Which situation generates more U.S. jobs:

    (a) 80% of U.S. patents are held by foreigners and the rest by U.S. patentees; or

    (b) 80% of U.S. patents are held by U.S. patentees and the rest by foreigners?”

    Is that a trick question? At least in software, the answer is neither. Either way, they’re just taxes on legitimate business.

  71. 103

    Thankfully most of my corporate clients give me a target filing date, and I make sure to file before that date. Would be difficult to claim malpractice because I filed two weeks before their target date.

  72. 102

    American Cowboy – with regard to the issue of delay and malpractice, does this also apply in the situation where delay in filing leads to some publication (which, without the delay in filing, could have been avoided by showing prior invention) becoming 102(b) art?

    Okay, if you know the invention was made very recently it’s not an issue but if the date of invention could be a year ago how do you know that there isn’t a publication that the inventor doesn’t know about that was published 364 days ago? Does this mean that it must be treated as an emergency filing?

  73. 101

    Which situation generates more U.S. jobs:

    (a) 80% of U.S. patents are held by foreigners and the rest by U.S. patentees; or

    (b) 80% of U.S. patents are held by U.S. patentees and the rest by foreigners?

  74. 100

    Which situation generates more U.S. jobs:

    (a) 80% of U.S. patents are held by foreigners and the rest by U.S. patentees; or

    (b) 20% of U.S. patents are held by U.S. patentees and the rest by foreigners?

  75. 99

    I absolutely agree with you. I’ve been telling this to the ever-lurking patent teabaggers for quite a while.

    Using the patent system as a tool for job creation has got to be one of the stupidest ideas ever floated.

  76. 98

    Mark, to be more precise, I should note that abandonment rate after FAOM rejection is not that different from abandonment rate after all FAOM that I cite above because only 16% of FAOMs are allowances (see page 2 of “Office Action Trends” charts at link to works.bepress.com ) and because abandonments also occur after allowance (when applicants go out of business and do not respond to FAOM allowances).

  77. 97

    Mark Nowotarski : “Right now the abandon rate after first rejection is about 25%”

    Mark, your estimate is off by nearly a factor of two from USPTO-wide data. Beware of your small sample statistics!

    Although historically, abandonment rate after First Action On the Merits (FAOM) has increased slightly over the years as first action pendency rose, it is about 13%-14% across all first actions during the period you discuss. See Figure 5 of draft paper on Deferred Examination models (page 13 of Appendix A of my comments to USPTO at link to bit.ly ).

  78. 96

    Of course, it should enjoy no presumption of validity and may not actually be worth anything.

    Another worthless moment in IMHO-Ned Law history brought to you….

    the applicants should have an option of simply ending it with a fee.
    Applicants can end it end time without a fee. And it would be just as worthless as your suggestion above. I’d even be willing to split half the money I just saved all those applicants in the IMHO-Ned law land.

  79. 95

    It would be interesting to learn from a malpractice insurance carrier approximately how much rates would increase if FTF legislation were enacted.

  80. 94

    Dear Secretary Locke II,

    Please appoint an PTO advisory board that has a wide range of viewpoints. Critically important are viewpoints that believe the current patent system is fundamentally sound and should only be changed narrowly, and with extreme care. Historically, our statutes have only attempted to codify Supreme Court case law, not reverse it. Even when we do this, we make mistakes that have unforeseen consequences. So, unless there is a compelling need for a change, no change should be made.

    But what is pending in congress is not only not a narrow change, it is a revolution. It is radical, a first of its kind patent system not known anywhere in the world. No one would seriously consider such radical legislation unless one fully intended to damage the American patent system knowing that radical change will inevitable bring chaos and disorder to American innovation.

    So we beg you to consult with those who can explain this to you in more detain. But most importantly, stop taking advice from one man who clearly has an agenda. You know of whom we speak.

    John Q. Public

  81. 93

    Dear Secretary Locke,

    There is nothing more critical to AI’s economic recovery than a strong patent system that embraces a wide areas of technological subject matter.

    That means all computer software programs and all technological processes, including those that conduct and enhance business/commerce MUST be eligible subject matter or else AI will remain uneconomically recovered.

    It is an irrefutable, undeniable FACT that when a small Inventor/ entrepreneur is granted a patent that Inventor instantly creates one job for him/herself (filling out the issue fee paperwork) and is likely to create many more for his/her family, community and country.

    (More Inventors, more patents, more new businesses, more jobs.)

    This is a formula that is certain to produce results (especially more perception amongst the public that our patent system is a joke).

    So make sure the PTO drops its old anti business method attitude and reject, reject, reject mentality because AI can’t seen to get business method patent issued and instead finds himself reject, reject, rejected.

    Give up the anti Bilski sentiments that led to the current court case and grant that Inventor’s patent if it is indeed is patent eligible, novel and non obvious.

    Not being AI myself I implore you to embrace all new technology that the 21st century has to offer and champion the Statutory Right all Inventors have to make an application for their inventions and discoveries.

    God Bless the US Patent System

    God Bless America.

    Sincerly,
    6

  82. 92

    IANAE, not “automatically.” The applicants who want no further examination can just take the application in its current state. Of course, it should enjoy no presumption of validity and may not actually be worth anything. But, just as the Office gets only two actions before you can appeal, they should get only three years to complete examination. If they don’t do it faster, the applicants should have an option of simply ending it with a fee.

  83. 91

    Dear Secretary Locke

    There is nothing more critical to our economic recovery and creating more jobs than a strong patent system that embraces a wide areas of technological subject matter.

    That means all computer software programs and all technological processes, including those that conduct and enhance business/commerce MUST be eligible subject matter.

    It is an irrefutable, undeniable FACT that when a small Inventor/ entrepreneur is granted a patent that Inventor instantly creates one job for him/herself and is likely to create many more for his/her family, community and country.

    (More Inventors, more patents, more new businesses, more jobs.)

    This is a formula that is certain to produce results.

    So make sure the PTO drops its old anti business method attitude and reject, reject, reject mentality.

    Give up the anti Bilski sentiments that led to the current court case and grant that Inventor’s patent if it is indeed novel and non obvious.

    As an Actual Inventor that actually creates jobs for a living I implore you to embrace all new technology that the 21st century has to offer and champion the God given and Constitutional Right all Inventors have to their inventions and discoveries.

    God Bless the US Patent System

    God Bless America.

  84. 90

    Ping
    Ask babel boy why he got beat up. Why do you think you were paid 1 million? Now why would any group pay someone that kind of money if there weren’t a lot to hide?
    And why has a lot of babel boys Trademarks come out of NWPA main office?
    Or did you know that already?

  85. 89

    Dear salivating rent-seeker, as a patent agent I can’t do litigation, but I would be allowed to do all this post-grant review work. Likewise, those litigators that don’t pass the patent bar (and to be fair, many already have, even absent any intent to do prosecution) or can’t (no technical background) will be closed out of it. Does that answer your question?

    This is assuming that the bill passes, and lots of reform bills have sunk without trace since I have had a registration number.

  86. 88

    What you’re not taking on board here is that once PTO gets the power to set fees, the small entity discount disappears.

    Good riddance.

  87. 86

    Maybe Kappos ought to consider some form get out of jail card for applications pending more than 3 years.

    You mean, automatically allow any patent that’s been pending for over 3 years? A lot of those haven’t even been examined yet.

  88. 84

    Maybe Kappos ought to consider some form get out of jail card for applications pending more than 3 years. You pay an appropriate fee and you get the card. Both money and backlog handled in one stroke.

  89. 83

    Small entity inventors create fewer jobs than Enron on a Sunday afternoon.

    Nonsense. Everyone keeps saying that small businesses create more jobs than big businesses. I think even Obama has said it, and he’s currently in charge of the government that runs the PTO.

    What you’re not taking on board here is that once PTO gets the power to set fees, the small entity discount disappears.

    Right. Next is death panels for patent applications. Who ever said or implied that they were taking away the small entity discount?

    In fact an undisclosed source close to Kappos — his kitchen cat — tells me Kappos has plans to charge small entities 2x as much as large in order to reduce the backload, which is the real goal Locke is talking about.

    His kitchen cat says he’ll charge small entities double? Sounds like fee-lyin’ to me.

    If you like undisclosed sources, I have several dozen that say he’ll make applications free for small entities. As long as we’re in agreement that we don’t have to disclose our sources.

  90. 82

    so they can start hiring again

    First they need to infiltrate the BIS. Then they start hiring…

    …in India.

  91. 81

    INANE: Furthermore, if the reform is designed to create jobs, that should make it relatively friendly to small inventors (who pay half price, in case you forgot),

    Nope, i didn’t forget.

    Small entity inventors create fewer jobs than Enron on a Sunday afternoon.

    What you’re not taking on board here is that once PTO gets the power to set fees, the small entity discount disappears.

    In fact an undisclosed source close to Kappos — his kitchen cat — tells me Kappos has plans to charge small entities 2x as much as large in order to reduce the backload, which is the real goal Locke is talking about. IBM needs to flush all those annoying small inventors out of the system to free up the big corps’ IP so they can start hiring again.

  92. 79

    Hey ping,
    I know now I have to put it out there. Imagine I share it and nothing happens. Statutes expire. And I share something else and then it expires. So obviously i am sharing it with the wrong people.
    The rabbit is in control of this situation… for now.

  93. 77

    I can imagine trying to convince a cop that he doesn’t legally have probable cause until I’ve done something or a situation gives it to him.

    Well yeah, but if you rob someone in front of the cop, he’s more than entitled to think you’re guilty of the crime before you’re actually convicted by due process of law.

  94. 76

    “Nobody enjoys that presumption in the court of your opinion. ”

    I generally afford individuals such a presumption.

    “Could you imagine trying to convince a cop that he can’t legally have probable cause until you’re found guilty by a jury of your peers?”

    I can imagine trying to convince a cop that he doesn’t legally have probable cause until I’ve done something or a situation gives it to him.

  95. 75

    American Cowboy writes; “So, every new application that does not appear to be an emergency is, in fact, an emergency in a FTF world.”

    And thus a potential malpractice issue.

  96. 74

    Ah, but if the client loses by one or two days and looks back at the paperwork and sees it took you six weeks to get on file, the temptation to point fingers will be mighty strong.

    If you take six weeks to file now, under FTI, and someone beats your client to the patent office, you should be contacting your insurer. You cost him either his patent, or half a million dollars plus who knows how much patent term if he chooses to provoke an interference to salvage his patent.

    But when a clients walks in the door and says I want a patent on my widget, how do you know that is an emergency? You don’t — until three years later when you learn that, totally unknown to you and the client, someone else was filing a competing application. Then in hindsight you realize it should have been treated as an emergency.

    That’s why a reasonable test for “reasonable” depends on the information you had at the time. I thought we were all fans of not using hindsight to reconstruct the result we seek.

    So, every new application that does not appear to be an emergency is, in fact, an emergency in a FTF world.

    As it is in an FTI world.

  97. 73

    Cowboy: I think a lot of malpractice cases do get tossed at SJ,…”That should prove to you that someone who wants to sue you for malpractice doesn’t need a legally valid reason. There’s always an excuse to sue someone if you’re not happy, and patent reform is neither the start nor the end of the problem.”

    Ah, but if the client loses by one or two days and looks back at the paperwork and sees it took you six weeks to get on file, the temptation to point fingers will be mighty strong.

    As you point out “If you’re in a practice where emergencies sometimes happen, you need to be reasonably ready to handle them.” But when a clients walks in the door and says I want a patent on my widget, how do you know that is an emergency? You don’t — until three years later when you learn that, totally unknown to you and the client, someone else was filing a competing application. Then in hindsight you realize it should have been treated as an emergency.

    So, every new application that does not appear to be an emergency is, in fact, an emergency in a FTF world.

  98. 72

    FtF forces drafters to get it right first time. That’s a very good principle, which you probably are busy urging on the PTO these days, aren’t you? …Must I go on?

    I am asking the same question – must you?

    Especially since you never did get back to your new pal Skeptical over at the Patent Docs. I think both he and Kevin advocated getting it right the first time being a proper focus (much more so than any silly additional post grant mechanism. Funny you should say sauce, – are you sipping it liberally?

    Another AnonPatent Atty,

    The American patent system works better than any other patent system on earth.

    A great big HE_LL YEAH to that.

    WheresMyLexus,

    Don’t we already have “post grant review” through reexamination practice? How would this be different?

    Good question. Let’s ask Maxie.

    Governments and their agencies enjoy no such presumption in the court of my opinion.

    It’s a damm good thing that no real law is ever discussed in that court.

    Do you have female bailiffs there, 6?

  99. 71

    Governments and their agencies enjoy no such presumption in the court of my opinion.

    Nobody enjoys that presumption in the court of your opinion. It only applies to judges and jurors.

    Could you imagine trying to convince a cop that he can’t legally have probable cause until you’re found guilty by a jury of your peers? I don’t think you would enjoy much success, but it would be fun to watch right up until the point where you get tased.

  100. 70

    “How does that fit in with the presumption of innocence until proven guilty?”

    Governments and their agencies enjoy no such presumption in the court of my opinion.

  101. 69

    anon: It is never a feature to wrongly deny someone something they are due under the law.

    Not to wrongly deny it, no.

    But we always try to claim the most we think we can possibly get. Why would we expect the PTO to rubber-stamp such claims without any resistance?

    Cowboy: No other country has the litigitious plaintiff’s bar looking for apparently deep-pocketed patent attorneys to sue, either.

    If they want to sue you, nothing is stopping them now anyway. The only thing you can ever stop is them winning.

    Cowboy: Plus, if you did take a day off to go see a cousin graduate (or how about one day lost because you were sleeping off a hangover?) and it turns out that that particular day was the extra day of delay that caused your client to be not the patentee but the infringer, will the client agree that you were “reasonably diligent?”

    Sleeping off a hangover on a weekday again? I can definitely see that being professionally negligent under the right circumstances. If you’re in a practice where emergencies sometimes happen, you need to be reasonably ready to handle them.

    Same goes for personal activities during work time. We all know that sometimes work has to get priority over whatever family thing happens to be scheduled at the same time. It’s part of your job. Always has been. Patent reform wouldn’t change that.

    Will the client agree? Who knows? Some clients always insist you should be doing more, no matter how diligent you are. The real question is whether you would be found liable.

    BJA: I asked because I didn’t want to use Gary when his legal name was otherwise, or use the wrong address or something, and say the guy had no registration when he did.

    Search for Locke as a family name and no other criteria. There are precious few of them. The only one with so much as an initial “G” is in Canada.

    Cowboy: I think a lot of malpractice cases do get tossed at SJ,

    That should prove to you that someone who wants to sue you for malpractice doesn’t need a legally valid reason. There’s always an excuse to sue someone if you’re not happy, and patent reform is neither the start nor the end of the problem.

  102. 68

    BJA, I think a lot of malpractice cases do get tossed at SJ, but that is after oodles of bucks are spent on discovery. Our local court seems to have the practice that they don’t decide SJ motions until within a week of when trial is scheduled to start. You can sure spend a lot of money till you get there. That in terrorum threat can be used to coerce settlements.

  103. 67

    prima facie guilty.

    How does that fit in with the presumption of innocence until proven guilty?

  104. 66

    Cowboy, IANAE has also missed the fact that you would lose 100’s of thousands or millions on every client who was beat to filing. Name one judge that tosses malpractice cases at summary judgment.

    Apparently deep pockets? If you mean appearances can be deceiving, (and draw lawsuits) then we’re in agreement.

  105. 65

    IANAE, are you sure that Mr. Locke is unregistered? I asked because I didn’t want to use Gary when his legal name was otherwise, or use the wrong address or something, and say the guy had no registration when he did. Basically, I just didn’t want to malign the guy before being absolutely certain that he had absolutely no idea what he was talking about.

  106. 64

    Ianae says ” You’d have to be in a very fast art to require a one-day turn-around. Nobody does that now in the jurisdictions that are already first-to-file. And if nobody else is doing it, you don’t have to do it either.” No other country has the litigitious plaintiff’s bar looking for apparently deep-pocketed patent attorneys to sue, either.

    “No client is going to make a malpractice case stick if you were reasonably diligent in getting the application filed.” See above. Plus, if you did take a day off to go see a cousin graduate (or how about one day lost because you were sleeping off a hangover?) and it turns out that that particular day was the extra day of delay that caused your client to be not the patentee but the infringer, will the client agree that you were “reasonably diligent?”

    “As Max astutely points out, you’re in much deeper trouble if you file too soon and mess up the spec in a way you can’t fix.” That is another problem with FTF. Filing too soon and messing up the spec in a way you can’t fix is the danger that the first to file incentive pushes you closer to.

  107. 63

    “You can’t blame the PTO for what inventions people are claiming.”

    I can. Being a party to actions that should have been a crime, or at least disallowed by “lawl”, a long time ago makes them prima facie guilty.

  108. 62

    Even if self-funding doesn’t pass, the Senate Appropriations committee deserves more scrutiny. Why is there so little commentary on this aspect of the funding process?

  109. 61

    Another AnonPatent Atty says, “just file a CIP and claim priority back.”

    No. With the publication rules, your original app will normally count as prior art against you. You ONLY get prioirity for claims FULLY supported and enabled by the original disclosure, not for claims that contain ANY additional matter.

    You SHOULD be able to get priority for SUBJECT MATTER in the original application and file a TD on it, but that is NOT the law as it currently stands.

  110. 60

    >>And those opportunities would themselves >>present opportunities for innovation that are >>also not being explored (at least not here in >>the US) and which don’t involve socially >>useless crapola like “identifying a birthday >>card for your e-friend based on your e->>friend’s recent Amazon purchases.”

    Yeah, just go ask MM’s aunt which birthday card to purchase. His aunt can help you learn to brake around turns too for those that are having trouble (and she can teach you how to accelerate properly too.) In fact, for any information processing algorithm, just go to MM’s aunt. You can recognize her as she and MM wear the same pink slippers with the bunny ears.

  111. 59

    One thing not discussed here is the complete dishonesty of the legislation’s new “grace period.” It requires a public disclosure before one’s filing date. Everyone knows that the rest of the world does not have such a grace period and that such a public disclosure will result in abandoning virtually all foreign patent rights.

    Today, US inventors only need to show prior invention to take advantage of the grace period. He does not have to shoot himself in the foot.

    How the new system allegedly advantages American inventors is a wonder. It clearly does exactly the opposite.

  112. 58

    IANAE responds “That’s not a bug, it’s a feature.” to the comment “We’ve had to fight the PTO for years now just to make them issue patents to us.

    My first reaction is to think that this belies a belief in the reject, reject, reject culture that is being ushered out. Note that the implied message in “fight” is that the patents are indeed worthy and deserving of being patents, but that the Office is recalcitrant in allowing issueance for non-legal reasons.

    It is never a feature to wrongly deny someone something they are due under the law.

    My second reaction is to think that IANAE is simply being overprotectionistic about examiners again, and may take the “fighting” comment more in line with an applicant’s belief that they deserve a patent “just because”.

    IANAE, do you care to clarify?

  113. 57

    IANAE said, “staff: Second, in the existing re-exam procedure the PTO grants 95% of requests even though the law requires a “substantial new question of patentability”. The PTO seems to have become a rubber stamp for large infringers to harass small entities.

    Do you have any reason to believe that those cases don’t actually raise a substantial new question of patentability? For all you know, they’re all legit. After all, pretty much every litigated patent has to stare down a substantial new question of patentability.”

    IANAE, what appears to be happening at the request stage is a preliminary examination for sufficiency, i.e., has the requestor made out a prima facie case for at least one claim. In this examination, the requestor’s statements about the reference and the claims, including their implied claim construction, and whether the references are cumulative or not, are taken at face value.

    If the examiner deciding whether to grant a request has already handled, or is in the midst of, a prior reexamination on the same patent, one then gets a much better filter on sufficiency as the examiner will know whether the references are cumulative or not, i.e., whether they in fact raise substantial new issues.

    It is somewhat easy to lay out a prima facie case with a “new” or even an “old” references. Without, though, any real analysis of “cumulativeness,” almost all requests seem to be granted.

  114. 56

    and which don’t involve socially useless crapola like “identifying a birthday card for your e-friend based on your e-friend’s recent Amazon purchases.”

    Fair point. But the content of a patent application is entirely up to the applicant. If the applicant has money to throw at his new method for naming a cat, the PTO has to at least have sufficient resources to reject that application in a reasonably timely manner, lest it stand ahead of the real inventions in the queue. Especially now that the PTO will be fully funded by patentees – it won’t cost the government a thing.

    You can’t blame the PTO for what inventions people are claiming. Until the claims get allowed, anyway.

  115. 55

    IANAE Also, it wouldn’t hurt the system any to create a few thousand more jobs for examiners.

    No doubt. In fact, it would surely help, particularly if the hires are taken from the pool of highly technically skilled and English language competent folks who aren’t working right now.

    Still, if the goal is to put people to work, there are plenty of great opportunities for repairing and improving this country’s infrastructure that are not being pursued. And those opportunities would themselves present opportunities for innovation that are also not being explored (at least not here in the US) and which don’t involve socially useless crapola like “identifying a birthday card for your e-friend based on your e-friend’s recent Amazon purchases.”

  116. 54

    Michael R. Thomas: He clesrly needs to view my website to get the full picture.

    According to your website, you’re the inventor of everything. According to the PTO website, you’re the patentee of nothing.

    If you’re not going to take advantage of the current system, what do you care if it changes?

  117. 51

    The only constitutional purpose of the patent system is the promotion of the arts and science. Article I, Sec. 8 doesn’t say squat about creation of jobs being a goal or purpose of patents.

    It’s not a goal of the patent system, but it’s a goal of government in general, and one that we all too often hold them accountable for not achieving.

    Furthermore, if the reform is designed to create jobs, that should make it relatively friendly to small inventors (who pay half price, in case you forgot), particularly those who depend on patents to obtain financing to create their own job. Also, it wouldn’t hurt the system any to create a few thousand more jobs for examiners.

    To say that the patent system will improperly create jobs (whatever that means), and at the same time imply that PTO fees will be raised so high that nobody will be able to afford patents is at best disingenuous.

    Get the progress promoted and the jobs will come along behind.

    I agree, but I don’t see under all the fearmongering any indication that “create more American jobs” means anything other than this sentiment.

  118. 50

    BB When the creation of jobs become the metric for judging the patent system, everybody bend over and grab your ankles.

    Agreed. I’ve been telling this to the ever-lurking patent teabaggers for quite a while.

    Using the patent system as a tool for job creation has got to be one of the stupidest ideas ever floated.

  119. 49

    Seconding Babel Boy, I am reminded of many things about creating jobs, including:

    i) a visit to east Berlin 30 years ago. Everybody had jobs but nobody had any enterprise.

    ii) those commentators who keep on reminding us that we can all have jobs if we each hold the door open for the other, or each do each other’s washing etc etc. but is that what we want?

    More chickens, but this time eggs as well. Get the progress promoted and the jobs will come along behind. The other way round, not. Asia understands that very well.

  120. 48

    In agreement w/ Les and Defector, giving the PTO carte blanche to set fees is telling the small inventor to bend over and grab ankles. Locke is to small inventors what Arizona is to Mexicans.

    But here is the scariest thought from Locke’s essay:
    “As we move forward on reforming our patent laws, we need to remember that the ultimate goal is to create more American jobs. . .”

    This should make your blood run cold. The only constitutional purpose of the patent system is the promotion of the arts and science. Article I, Sec. 8 doesn’t say squat about creation of jobs being a goal or purpose of patents. When the creation of jobs become the metric for judging the patent system, everybody bend over and grab your ankles.

  121. 47

    In a FTF world is must be the very day that the client discloses the invention to the attorney.

    See, that strikes me as a gigantic paranoid overreaction. You’d have to be in a very fast art to require a one-day turn-around. Nobody does that now in the jurisdictions that are already first-to-file. And if nobody else is doing it, you don’t have to do it either. Besides which, being the first to file is already pretty important in the current system, as people keep pointing out and you keep ignoring.

    No client is going to make a malpractice case stick if you were reasonably diligent in getting the application filed. As Max astutely points out, you’re in much deeper trouble if you file too soon and mess up the spec in a way you can’t fix.

  122. 46

    Cowboy, something here does not compute.

    On the one hand, when I suggest that Art 54(3) EPC is neded because there will be independent acts of invention occurring within the 18 mointh black hole between filing and A publication, I am told I am being ridiculous.

    Then you tell me that filing even one day after receiving a submission from an inventor exposes an attorney to the risk of a malpractice suit.

    Crikey, I had no idea of the risks I was running, in making sure with client that my filing event was “doing it once and doing it right”.

    For F’s sake, do you not realise that under FtF there are greater malpractice risks in filing too soon rather than too late?

    Anybody would think there are no risks to attorneys in private practice in the USA today, operating under FtI, in filing one day too late.

    What’s your real name, Cowboy? Let me guess. Chuck Little.

  123. 45

    Don’t we already have “post grant review” through reexamination practice? How would this be different?

  124. 43

    “Are you saying that there never comes a time when you say to yourself “enough reviewing this patent application, time to get my client a filing date”?”

    Of course there comes such a time. However, now that time can be when the attorney judges it to be correct. In a FTF world is must be the very day that the client discloses the invention to the attorney. In a FTF set of rules in the US, if the attorney causes the delay for any reason (for any of various reasons: because she is trying to get it right, because she wants to leave early to go see her kid’s soccer game, because she has asked for more info from the inventor and has not yet heard from the inventor whether it will be available or not) and the inventor loses out to another’s application because of the delay, the attorney can face a malpractice claim.

    Maybe she can defend successfully, maybe not.

  125. 42

    Well, one thing for certain, the good secretary is reading the words written by Kappos, ex of IBM. Read the IBM company line and you know what the secretary said.

    Kappos is still representing IBM.

  126. 41

    Cowboy, no call for an apology. As to your drafts, you remind me of all those artists who are still perfecting their artistic expressions years after the moment of conception. A painting, for example. It’s never really finished, is it. Every time the artist contemplates it, he finds he can make some small improvement. But have we all got the time to stand around waiting, till his assymptote (sic) approaches 100% clarity and precision? I suggest we don’t.

  127. 40

    Are you saying that waiting two weeks to get the text right makes the information that is disclosed stale and no longer novel?

    In journalism, certainly. In patents, possibly.

    Are you saying that there never comes a time when you say to yourself “enough reviewing this patent application, time to get my client a filing date”?

  128. 39

    “And yet, two weeks later your draft has become bad journalism, no matter how many errors you correct in that time. Same goes for patents. Their value is in their novelty, and prompt disclosure is of the essence.”

    I don’t get your point. Do you want journalists writing patent applications? Are you saying that waiting two weeks to get the text right makes the information that is disclosed stale and no longer novel?

  129. 38

    AAPA: “Does Mr. Locke have a registration number” says Bad Joke Ahead.
    My very thoughts exactly.

    Two people thought it, but nobody bothered to check? It’s not like the PTO’s database of registered agents is difficult to access.

    He’s not registered, by the way.

    staff: We’ve had to fight the PTO for years now just to make them issue patents to us.

    That’s not a bug, it’s a feature.

    staff: Second, in the existing re-exam procedure the PTO grants 95% of requests even though the law requires a “substantial new question of patentability”. The PTO seems to have become a rubber stamp for large infringers to harass small entities.

    Do you have any reason to believe that those cases don’t actually raise a substantial new question of patentability? For all you know, they’re all legit. After all, pretty much every litigated patent has to stare down a substantial new question of patentability.

    Cowboy: And I disagree with your unidentified journalists. I can go through several drafts of a text and improve it each time. Then I put it down and come back two weeks later and see a whole slew of errors that I never saw before.

    And yet, two weeks later your draft has become bad journalism, no matter how many errors you correct in that time. Same goes for patents. Their value is in their novelty, and prompt disclosure is of the essence.

  130. 37

    Max, I apologize if I have maligned the European patent system by my choice of the word “concede.” My point was that that you agreed that FTF works in Europe because so many other standards for reviewing patents are different from American standards, too. If the US only changes this one aspect of its patent law we will wind up with many more patents that the courts find fault with.

    And I disagree with your unidentified journalists. I can go through several drafts of a text and improve it each time. Then I put it down and come back two weeks later and see a whole slew of errors that I never saw before. I don’t think my experience in this regard is at all unusual.

  131. 36

    “First, Congress will grant fee-setting authority to the patent office…”

    First, after the last set of proposed rules which would have slain small entities we do not trust the PTO. We’ve had to fight the PTO for years now just to make them issue patents to us. Second, in the existing re-exam procedure the PTO grants 95% of requests even though the law requires a “substantial new question of patentability”. The PTO seems to have become a rubber stamp for large infringers to harass small entities. We just don’t trust them anymore. It appears they play for pay.

    Patent reform is a fraud on America. It is patently un-American.
    Please see link to truereform.piausa.org for a different/opposing view on patent reform.

  132. 35

    Cowboy: There is nothing wrong with first-to-file. It works just fine. If you develop the invention further, file another application including the additional matter, and claim priority back to the first filed case.

    On the main point, you can always tell that the real intent it to gut the system whenever somebody stands up and says “America’s patent system isn’t working”.

    Maybe what they really mean to say is something more along the lines of “my client”, or “my campaign contributor”, or worse “someone who has taken advantage of my lack of knowledge about patent law”, “is an unrepentant serial patent infringer and doesn’t like the idea that it might be held to account.”

    The American patent system works better than any other patent system on earth. Enough of these sorcerer’s apprentices monkeying with it. We’ve just lived through the reign of terror. Give it a rest.

    In due course, calmly and quietly, let people who care about patent law, and who understand it inside out, be the ones to propose logical, thoughtful, careful improvements.

    “Does Mr. Locke have a registration number” says Bad Joke Ahead.
    My very thoughts exactly.

  133. 34

    Cowboy how does the statement “FtF works in Europe” amount to a concession? Given what you report, that the US courts are catatonic, where is the mischief, in FtF or in those courts?

    What is really “anti-patent” in the long run is anything that brings disrepute upon our beloved patent system. A race to the patent office is inherent in any patent system, if only to get to be senior in an interference. Ergo, a race to the PTO, as such, does not bring disrepute on our beloved patent system.

    Other professions have to perform with despatch. Journalists say it produces better copy.

    FtF forces drafters to get it right first time. That’s a very good principle, which you probably are busy urging on the PTO these days, aren’t you? Sauce for the goose? Vested interests? Putting the interests of lawyers above those of their clients? Must I go on?

  134. 33

    Frankly, I’m surprised every sixth one is abandoned at any stage,

    Me too. Can anyone shed some light on the decision process to abandon a pending gene patent application?

  135. 32

    FTF makes the inventor and the attorney rush to file before fully developing the invention, the written description and claims particularly pointing out the invention.

    FTI should make the inventor rush just as much. When the question of FTI actually comes up, the first filer pretty much always wins. Not only that, but you run the risk of being drawn into an interference because you sat on your invention long enough for someone else to file first. Not only will that interference be dozens of times more expensive than prosecuting your patent application, but you’ll have to rely on various informal documents to prove your invention date that are just as prone to error and more prone to legal insufficiency than a patent spec.

    At least in FTF you make an effort to produce a legally sufficient document instead of being complacent, and being first to invent means you have a head start in your race to the patent office.

  136. 31

    Lionel says: “There is nothing anti-patent about first-to-file”

    Sure there is. FTF makes the inventor and the attorney rush to file before fully developing the invention, the written description and claims particularly pointing out the invention.

    As a result of having to rush to file, errors are more likely and those errors inevitably are anti-patent. And the recent Ariad case informs us that a priority claim to a “speculative” example that you may throw in to a provisional won’t buy you a loaf of bread.

    Max Drei and I had a dialog about this topic a couple of months ago, and Max conceded that FTF works in Europe because the Europeans are more relaxed about numerous requirements that American courts (e.g. FedCir in Ariad) go catatonic about.

  137. 29

    Suppose applicants could get a refund of their filing fees if they abandoned their applications before a first office action on the merits.

    I don’t think this would do much, because (1) the deadline for “requesting” the refund is unclear and unpredictable, and (2) it’s hard to get people to take active steps to get a refund of money they’ve already spent – see “mail-in rebates”.

    Giving the PTO authority to raise filing fees so high no one files a patent application, so that the PTO can claim to have addressed the backlog, is NOT the way to address the problem.

    While we’re throwing around wacky improbable apocalyptic scenarios, it should be noted that patent death panels are not the answer to the backlog either.

    The lowest abandon rate per office action I’ve found so far is for nucleic acids (e.g. DNA, class 435/006). That had an abandon rate of 17-19% per office action. That class also had the highest allowance rate per response to an office action, 21-28%.

    Nucleic acids seem to be about the least likely technology for a garage inventor to dabble in. If every single sequence is filed by a large and well-funded company or research organization, and such organizations don’t take lightly a decision to abandon a pending application, your numbers sound entirely plausible.

    Frankly, I’m surprised every sixth one is abandoned at any stage, unless there are so many people on the gene-patenting project that this percentage represents the overlap from second-to-invent filings.

  138. 28

    It is the economy.

    You may be right, but the abandon rate I quoted, 25% per office action, was an average for several different classes examined over the past 10 years. It doesn’t capture recent trends.

    The lowest abandon rate per office action I’ve found so far is for nucleic acids (e.g. DNA, class 435/006). That had an abandon rate of 17-19% per office action. That class also had the highest allowance rate per response to an office action, 21-28%.

  139. 27

    Giving the PTO authority to raise filing fees so high no one files a patent application, so that the PTO can claim to have addressed the backlog, is NOT the way to address the problem. Furthermore, it will transfer funds from application preparation to fee payment. Accordingly, it will have a detrimental effect on “patent quality”.

    Whats worse, “first to file” will lead to a rush to the patent office, leaving even less time to be spent in application preparation and providing a further detrimental effect on “patent quality”.

    Spare us the B.S.

  140. 24

    If fees are to be raised, I suggest an equal across the board percentage increase (e.g. 10% ) of all fees and not monkey with raising one fee more than another. Yes, that makes the final maintenance fee very expensive but by then the patentee knows (or should know) whether his patent is worth maintaining.

  141. 23

    Patent litigation is so horribly expensive because of the discovery games that go on for years sometimes. The judges let it happen hoping that one of the sides will grow tired of the wasteful attorney expenses and throw in the towel.

  142. 22

    “Right now the abandon rate after first rejection is about 25%.”

    It is the economy.

  143. 21

    Right now the abandon rate after first rejection is about 25%. I suspect those applications were abandoned because the applicants thought the ideas in them were no longer worth pursuing, not because of the reasons for rejection.

    Suppose applicants could get a refund of their filing fees if they abandoned their applications before a first office action on the merits.

    Would that free up 25% of the USPTO resources and cure the backlog?

  144. 20

    no requestor obligation if the patent owner has accused the requestor of infringement

    That’ll teach them small patent owners. Theys can have patents, but theys better not try to enforce them. No wait. Huh?

  145. 19

    “doubling the budgets of agencies like the National Science Foundation so they can better support the basic research that spawns new products and services.”

    quadrupling would be better

    corporations do not seem to be doing the amount of basic research which they did many decades ago

  146. 18

    can’t grasp syllogistic logic or understand the plain literal meaning of a statutory provision. I suppose some revision of the qualifying exam is in order.

    Syllogis-wha?

    Yeah, What IANAE says.

  147. 17

    would go far in suppressing economically wasteful patenting activity.

    Because everyone knows that patenting activity does not promote anything that even remotely is related to the economy.

    OK sunshine.

  148. 16

    As I said before, and I am surprised the Secretary did not mention it, post grant review was considered by Congress once before — in the 1940s. They killed it then because of the extreme costs it would impose on the small inventor and business at a time they cannot afford it.

    In a different thread, I suggested a remedy to the cost issue: have the requestor pay for the reasonable attorney fees of the patent owner. To this I would also add an exception, there should be no requestor obligation if the patent owner has accused the requestor of infringement (of the patent or patent application).

    But, without these restraints, the system is open for enormous abuse. Big pocket companies can effectively prevent any small inventor from patenting in his area of technology by opposing all impecunious comers. The same big company could target a smaller rival and oppose all their patents as they issue. This will certainly damage them and could drive them out of business.

    To ignore such potentiality for abuse is truly remarkable, considering that Congress has recognized its potentiality once before.

  149. 15

    Including only hiring examiners with a firm and comprehensive grasp of the English language including writing skills; say at least 12th grade high school level.

    Of course, we’ll have to weed out the registered agents who can’t grasp syllogistic logic or understand the plain literal meaning of a statutory provision. I suppose some revision of the qualifying exam is in order.

  150. 14

    Bad Joke’s right; PGR will do nothing to reduce litigation; anymore than re-exams do/have.

    Instead, such political capital should be spent (no; invested) in giving the examiners the time, tools, and training (when & where needed) they want and need.

    Including only hiring examiners with a firm and comprehensive grasp of the English language including writing skills; say at least 12th grade high school level.

    Mr. Kappos and his team look like they’re on the right track.

  151. 12

    PGR won’t kill litigators. Where do you think the whole thing will go after post grant review. It’ll just add another layer and expense to the ultimate resolution of the case.

  152. 11

    Wage and price controls would go far in suppressing economically wasteful patenting activity.

    How can it be economically wasteful if for-profit organizations make a business decision to do it in the hope (or expectation, if seen from a portfolio level rather than as individual patents) of ultimately realizing a profit?

  153. 10

    Is it too soon to suggest that the PTO be given the authority to impose price controls on all patent prosecution activity? Wage and price controls would go far in suppressing economically wasteful patenting activity.

  154. 9

    Well, the Enhanced Post-Grant Review will kill the patent litigators.

    Who cares? The patent system exists to benefit the inventor directly and the public indirectly. Any benefit to agents or litigators is purely incidental.

  155. 8

    “Well, the Enhanced Post-Grant Review will kill the patent litigators.”

    Who will get the Post-Grant Review work? Prosecutors? (Former) litigators? I assume there will be just as much, if not more, of this PGR work than there currently is patent litigation. Am I right?

  156. 7

    “”Fee setting authority” potentially means “punitive fee structure” like Dudas tried to implement. ”

    Wootles?

  157. 6

    American Cowboy says “Other than allowing the PTO to have enough funds to issue patents more promptly, I don’t see anything in the “reform” bill that helps innovation. To the contrary, the anti-patent attitudes of the boom times are still reflected in first to file and post-grant review.”

    I agree.

  158. 5

    “Fee setting authority” potentially means “punitive fee structure” like Dudas tried to implement. I agree that the Patent Office needs to use fee revenue to expand to handle its backlog. But I don’t trust the PTO with broad fee setting authority, which could be used to artificially limit filings and the size of filings to bring down pendency without improving service.

  159. 4

    Other than allowing the PTO to have enough funds to issue patents more promptly, I don’t see anything in the “reform” bill that helps innovation. To the contrary, the anti-patent attitudes of the boom times are still reflected in first to file and post-grant review.

  160. 3

    I have been attending meetings in the US regularly for the last 11 years. Patent reform has always been on the agenda.

    Will it happen in the next 10 years? Heisenberg is uncertain.

  161. 2

    Well, the Enhanced Post-Grant Review will kill the patent litigators.

  162. 1

    >>It’s not the role of the federal government to >>predict or dictate exactly how this new >>economy will take shape.

    No that is what MM does.

    (coughs)

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