Other Barks & Bites for Friday, April 12: Bill to Rein in GAI Introduced; Amazon Owes Tech Rival $525 Million for Patent Infringement; USPTO Issues Guidance on the Use of AI for Filings

This week in Other Barks & Bites: three advocacy groups call on President Biden’s administration to use federal law to license the production and cut the price of an expensive cancer drug; an Illinois jury rules that Amazon owes Kove IO $525 million in a patent infringement case; and Representative Adam Schiff (D-CA) introduces legislation to House that would require tech companies to disclose what copyrighted material they use to train their generative AI programs.

Bites

USPTO Director Vidal Starts Week-long Visit to China

On Thursday, April 11, the U.S. Patent and Trademark Office (USPTO) announced that Under Secretary of Commerce for Intellectual Property and USPTO Director Kathi Vidal will travel to China from April 12-19 to meet with senior Chinese officials and U.S. business leaders. In the week-long visit Director Vidal will visit Beijing and Shanghai to engage in relevant IP issues facing U.S. business interests in China. The visit plans to build on U.S. Secretary Gina Raimondo’s trip to China in August 2023.

Jury Rules Amazon Owes Kove $525 Million for Patent Infringement

On Wednesday, April 10, an Illinois district jury awarded Kove IO $525 million in damages after Amazon Web Services was found to have infringed on the tech company’s data-storage patents. Kove succesfully argued that three of its patents had become essential technology to AWS, Amazon’s cloud service provider. Now, Amazon is planning to appeal the ruling.

Congressman Introduces Legislation Requiring Companies to Disclose Use of Copyrighted Materials Used as Training for AI Models

On Tuesday, April 9, Representative Adam Schiff (D-Calif.) introduced the Generative AI Copyright Disclosure Act which would require AI companies to disclose their use of copyrighted works as training materials for generative AI programs. If the new legislation was passed, companies would need to submit a notice to the Register of Copyrights before releasing a new generative AI system. “AI has the disruptive potential of changing our economy, our political system, and our day-to-day lives. We must balance the immense potential of AI with the crucial need for ethical guidelines and protections,” said Representative Schiff. Read full IPWatchdog coverage here.

Advocacy Groups Ask Biden Administration to Use Federal Law to Lower Cancer Drug Costs

On Tuesday, April 9, three advocacy groups, including Knowledge Ecology International, wrote a letter to the Centers for Medicare and Medicaid Services requesting the administrator use federal law to license third-party companies to make and sell a generic version of the prostate cancer drug enzalutamide. According to the letter, the drug costs $136.50 per 40 mg capsule and patients need to take 4 capsules a day. This results in costs of $546 per day or nearly $200,000 a year. “When using an authorization and consent clause in a contract, the federal government will eliminate the possibility of patent holders obtaining injunctions against the generic manufacturers to make, register and sell to persons covered by these federal programs,” wrote the advocacy groups.

Barks

CAFC Tosses Out Half Billion Dollar Patent Infringement Case Against Apple,

On Thursday, April 11, the U.S. Court of Appeals for the Federal Circuit (CAFC) dismissed Virnetx’s patent infringement lawsuit that asked for upwards of $500 million in damages from Apple. The case has lasted longer than a decade with Virnetx facing accusations of being a patent troll. In recent years, U.S. courts have dismissed a variety of patent infringement cases brought forward by Virnetx against Apple.

CAFC Confirms Victory for Samsung in Mobile Magnets Patent Dispute

On Thursday, April 11, the CAFC affirmed four Patent Trial and Appeal Board (PTAB) rulings that found four patents from Gui Global Products unpatentable, granting Samsung a victory in its patent dispute with the company. Samsung convinced the PTAB and CAFC that the four mobile magnet patents were unpatentable due to obviousness. Apple also received a similar ruling from the CAFC against Gui Global Products.

Wex Sues HP for Trademark Infringement 

On Thursday, April 11, software firm Wex filed a lawsuit against HP for patent infringement accusing the tech giant of misappropriating Wex’s brand and trademark. Wex claims that HP’s new HP Wex workforce-management platform is likely to confuse customers with Wex, a firm that sells information-management apps.  Wex did not include a specified damage amount, but said, “WEX and HP’s just-announced “WEX” have the same mission: to supply businesses with innovative solutions to their everyday workforce problems.”

USPTO Issues Guidance on Practitioners Using AI Before Office

On Wednesday, April 10, the U.S. Patent & Trademark Office (USPTO) issued new guidance on the use of AI tools by individuals involved in USPTO proceedings. In its guidance published to the Federal Register, the USPTO wrote, “ While the USPTO is committed to maximizing AI’s benefits and seeing them distributed broadly across society, the USPTO recognizes the need, through technical mitigations and human governance, to cabin the risks arising from the use of AI in practice before the USPTO.” At this point, the Office determined that its current rules are sufficient to protect the USPTO’s systems against the drawbacks of AI, but it reminded practitioners of its rules related to AI. Read further for full IPWatchdog coverage.

Office Action Issued After Eight Years on APPLE JAZZ Application

On Wednesday, April 10, the U.S. Patent & Trademark Office (USPTO) issued a Nonfinal Office Action on Charles Bertini’s trademark application to register the mark APPLE JAZZ, a case that made headlines when Bertini filed an opposition to Apple, Inc.’s application to register the mark APPLE MUSIC. Bertini’s application has been suspended since 2016.

This Week on Wall Street

FCC Launches Consumer-Friendly Labels for Internet Service Providers

On Wednesday, April 10, the Federal Communications Commission (FCC) announced the nationwide launch of a new label system for internet service providers akin to a nutrition label. According to the FCC, the new label provides consumers with information on costs, fees, and speed of broadband internet at the point of sale. “Today is an exciting day for consumers. Broadband Nutrition Labels are finally here. Consumers across the country can now benefit from consistent, transparent, and accessible point-of-sale information about broadband prices and services,” said FCC Chairwoman Jessica Rosenworcel.

FAA to Launch Investigation into Alleged Boeing 787 Dreamliner Defect Coverup

On Tuesday, April 9, The New York Times reported that the Federal Aviation Administration (FAA) is investigating the claims of a former Boeing engineer and whistleblower who previously told the newspaper that parts of Boeing’s 787 Dreamliner are improperly fastened together and could break apart mid-flight. The former engineer also claimed that the airplane manufacturer knew of the defects and attempted to cover it up. While a Boeing spokesperson claimed full confidence in the 787 Dreamliner, Boeing stock has dropped about 15% in the last month.

Quarterly Earnings – The following firms identified among the IPO’s Top 300 Patent Recipients for 2023 are announcing quarterly earnings next week (2023 rank in parentheses):

• Monday: None
• Tuesday: Johnson & Johnson (20), Bank of America (64)
• Wednesday: IBM (3), Abbott Laboratories (124), ASML (182)
• Thursday: Taiwan Semiconductor (5), Intuitive Surgical (187)
• Friday: Procter & Gamble (97)