Barnes and Noble's Common Sense Suggestions to the FTC and DOJ on Patent Trolls ~pj

Groklaw 2013-04-25

Summary:

The public comments sent to the FTC and DOJ on patent trolls are fascinating. I'd like to show you one outstanding submission, by Barnes & Noble [PDF], who has been sued by trolls, or politely Patent Assertion Entities, or PAEs, over 25 times in the last five years (and received an additional 20+ claims that didn't result in litigation) which meant it has spent tens of millions defending against the avalanche in those five years. They have yet to lose, so they ask what is the point of a company having to endure constant claims that are without merit? Nobody pays them back in full to make them whole, even when they were totally innocent.

Its submission begins: "The patent system is broken," having "lost its true north", adding that the AIA did not fix the troll problem. And so it suggests five common-sense solutions to fix the problems. One suggestion is that trolls should not be allowed to file with the ITC at all, because that agency is about protecting trade, and trolls are not in business. And it points out that the Constitution requires a change. Yes. The Constitution:

The Patent and Copyright Clause grants Congress the power "[t]o...promote the Progress of Science and useful Arts," not science fiction and litigious arts. (Article 1, Section 8, Clause 8 (emphasis added)). But the current system allows trolls to pursue fantastic allegations-claims that would be laughed out of the room in actual scientific or technical circles-in endless litigation that taxes and taxes true innovators while making no meaningful contribution to society.
If you enjoyed Barnes & Noble's revelations in court and to the ITC about what it called Microsoft's anticompetitive patent scheme against Android, you'll enjoy reading this new comment on trolls. They don't sugar coat. One of the claims it had to deal with was for using HTML. Wait. I'll let Barnes & Noble tell it:
Even the most plainly baseless lawsuits are expensive and can take years to defeat. In at least four cases, Barnes & Noble has faced litigation by patentees asserting the same theories on which they previously lost. In one case, for example, Barnes & Noble is alleged to infringe patents because BN.com uses the HTML language and returns search results other than exact matches. The patentee asserted these allegations against Barnes & Noble despite having tried and lost a case against other ecommerce retailers based on the same functional allegations levied against their websites....Barnes & Noble and other technology companies see countless lawsuits in which the asserted patents purport to cover products and technologies common to the entire industry. We face repeated allegations that anyone using Wi-Fi, anyone using 3G, anyone using MP3, anyone with an e-commerce website, anyone using Ethernet, and, recently, anyone using InfiniBand technology, to name a few, is infringing and must pay a hefty price to license purportedly essential patents. The allegations sweep far beyond specific innovations to which a patent might legitimately lay claim.
I guess I shouldn't be surprised that lawyers for a book company know how to write. Lawyers can be excellent lawyers without that skill, but when they've got that ability too, what a pleasure it is.

Link:

http://www.groklaw.net/article.php?story=20130424201754688

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Date tagged:

04/25/2013, 00:30

Date published:

04/24/2013, 21:03