The full U.S. Senate Judiciary Committee held a hearing Tuesday, titled “From Genes to Machines: the Patent Eligibility Debate,” during which witnesses testified about the pros and cons of reforming U.S. patent eligibility law, with human genome patentability featuring as a key sticking point. While the hearing became heated at times—mostly over the peripheral topic of drug pricing—witnesses and Committee members ultimately seemed willing to work together on language that might move the bill forward.
The mythology surrounding the act of invention tends to concentrate on the breakthrough moment. There is a flash of insight, a sketch is made on a cocktail napkin, the prototype is assembled in a garage to prove the brilliance of the concept. Unfortunately, commercial markets are considerably less romantic. They do not reward ideas merely because they are clever, patentable or even technically superior. They reward products that work, solve a problem customers recognize, can be manufactured at an economically sustainable price and generate an acceptable return for whoever assumes the risk of bringing them to market.
The U.S. Court of Appeals for the Federal Circuit (CAFC) issued a decision Monday in Google LLC v. Parus Holdings, Inc., vacating a Patent Trial and Appeal Board (PTAB) final written decision that upheld two claims of a voice browsing patent owned by Parus Holdings, Inc. The court found that the Board made multiple errors under the Administrative Procedure Act (APA) in rejecting Google’s obviousness challenge and remanded the case for further proceedings.
Magistrate Judge Virginia K. DeMarchi in the Northern District of California, San Jose Division, last week granted in part and denied in part a professional trumpet player’s motion for leave to amend his complaint that challenges Apple’s APPLE trademark for entertainment services. Judge DeMarchi concluded that the standard had only been met in limited respects and ruled that Bertini may pursue two narrow fraud claims, while his remaining theories were rejected.
This week on IPWatchdog Unleashed, I spoke again with Fran Cruz, Senior Vice President of IP Solutions for Juristat. Our conversation was about a topic that should be top of mind for every patent prosecution firm, every in-house IP department, and every legal operations professional trying to make sense of the current market for patent related legal work. Where is patent prosecution work going, when does work move from firm to firm, when it does move, where is it moving, and what will firms have to do to win—or keep—the patent preparation and prosecution work?
The mythology surrounding the act of invention tends to concentrate on the breakthrough moment. There is a flash of insight, a sketch is made on a cocktail napkin, the prototype is assembled in a garage to prove the brilliance of the concept. Unfortunately, commercial markets are considerably less romantic. They do not reward ideas merely because they are clever, patentable or even technically superior. They reward products that work, solve a problem customers recognize, can be manufactured at an economically sustainable price and generate an acceptable return for whoever assumes the risk of bringing them to market.
In any patent dispute, the strength of the patent still matters. But increasingly, it is not the only thing that matters—or even, in some cases, the thing that matters most. That means where a patent dispute takes place cannot be a tactical afterthought or viewed as a choice of federal district courts in the United States alone. This is true today more than ever because despite patents ostensibly being property—at least according to the Patent Act—which tribunal and which judges make the ultimate decisions affecting the patent often matter most of all because patents and patent enforcement have become driven by ideology and the type of fervor normally reserved highly emotionally charged discussions, like religion and politics.
As the full Senate Judiciary Committee prepares to hold a major hearing on the state of U.S. patent eligibility law tomorrow, Amy Semet, Associate Professor of Law at the University at Buffalo School of Law, through her affiliation with the IP Policy Institute, has published a research paper providing the first empirical data on subject matter eligibility issues for artificial intelligence (AI) patents asserted in U.S. district court litigation. The research paper finds that not only are AI inventions invalidated at a higher rate than non-AI inventions, but also, unexpectedly, that obviousness invalidations for AI patents are low due to an incredibly high rate of subject matter eligibility invalidations in the sector.
The U.S. Court of Appeals for the Federal Circuit (CAFC) issued a per curiam decision today in Tramec Sloan LLC v. Surti, dismissing an appeal brought by patent owner Tarun N. Surti after finding it lacked jurisdiction to review the district court’s order. Chief Judge Moore and Circuit Judges Lourie and Hughes decided the case per curiam, and no concurring or dissenting opinion accompanied the ruling.
When the Senate Judiciary Committee examines the Patent Eligibility Restoration Act (PERA) this week, lawmakers won’t simply be debating patent law. They’ll be deciding whether America remains the best place in the world to invent tomorrow’s technologies. That question has taken on new urgency following a series of Supreme Court decisions. In the wake of those rulings, inventors, investors, and even judges have struggled to determine whether many groundbreaking discoveries qualify for patent protection.
Patent monetization is often discussed as if the hard part begins when a patent owner makes the decision to license, sell, finance, or enforce its patent assets. That is a mistake and demonstrates a lack of understanding of the difficulties and complexities of patent monetization. By the time a patent owner is sitting across the table from a potential licensee, buyer, lender, litigation funder, or accused infringer, much of the outcome has already been fully determined. The real work begins years earlier in preparation for monetization.
The United States patent system is not failing because Americans have stopped inventing. It is failing because the legal and institutional architecture built to protect invention no longer operates as a coherent innovation framework. Over time, the system has become a patchwork of overlapping tribunals, inconsistent legal standards, procedural inefficiencies, and doctrinal barriers that make it harder to obtain, defend, enforce, license, and rely upon even high-quality patent rights covering innovations of extraordinary consequence. Now in the coming months we will move forward with a candid, serious, historically grounded, and focused conversation on building—not merely patching—the next American patent system.
When I sat down with former USPTO Director Andrei Iancu for this week’s episode of IPWatchdog Unleashed, I expected a serious conversation about the condition of the U.S. patent system. Instead of rehashing everything that has gone wrong with the U.S. patent system from the perspective of an innovator over the last two decades, what took place was a deep and revealing conversation about whether the legal architecture that once made the United States the world’s innovation leader is still fit for purpose in an economy increasingly defined by software, artificial intelligence, data, biotechnology, and other intangible assets.
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