Posts Tagged: "Congressman Darrell Issa"

With all of this money, it seems the efficient infringer lobby has managed to find an unlikely ally in Congress — someone who made his money as an innovator who defended his patents as a patent plaintiff, which apparently makes him a patent troll. At the end of the day, it may not be entirely fair to characterize Congressman Darrell Issa as a patent troll. Instead, he seems more of a swamp creature of the type that President Trump campaigned against. An individual who has fed from those who are actively trying to muck up the U.S. patent system in favor of large, entrenched entities and to the disadvantage of small, innovative patent owners who have previously always been the driving force of innovation and job creation in America.

Issa decried Judge Gilstrap’s “overreach” in denying a motion to transfer venue in a case coming after the U.S. Supreme Court’s decision in TC Heartland LLC v. Kraft Foods Group Brands LLC, a decision which restricted the venue statute for patent infringement cases. “It is, in fact, an act that I find reprehensible by that judge,” Issa said… American Board of Trial Advocates (ABOTA) noted that Issa’s further assertion that Judge Gilstrap was motivated by personal bias to promote community interests “extended beyond a challenge of the legal precedent to a personal attack on Judge Gilstrap and his integrity as a jurist.”

“Wrongdoing should be punished more severely so that IP infringers will pay a heavy price,” Xi said. At a time when President Xi is actively moving China’s IP policy to a place where infringers are met with harsher penalties, U.S. leadership in Congress, especially in the House of Representatives, seems to be opening their arms yet again to the efficient infringer lobby. Congressman Bob Goodlatte (R-VA), chairman of the House Judiciary Committee, and Congressman Darrell Issa (R-CA), chairman of the House IP subcommittee, support legislation and poor narratives that continue attempts to further gut the U.S. patent system, allowing infringers a free holiday and the ability to infringe without consequence or penalty.

House IP subcommittee chair Rep. Darrell Issa (R-CA) led off the hearing by discussing the large number of interests who are often on Capitol Hill to discuss their issues with “patent trolls,” including the “genius ones” which have only been developed in recent years. Despite the intent of the America Invents Act (AIA) of 2011 to weed bad patents out of the system, “patent trolls” remain active. Issa felt there were a few reasons for this, including the fact that such entities make money and that good patents could still be used to assert unreasonable claims. “Why innovate when it’s far easier and more profitable to simply purchase a patent, acquire one, acquire the rights to a patent, perhaps one that has never been licensed, bully businesses into writing a check, go away without ever seriously litigating,” Issa said. He said that 80 percent of “patent troll” litigation focuses on small business. “Simply put, we should not confuse ‘Making America Great Again’ with ‘Making American Patent Trolls Richer Again,’” Issa said. Although Issa was pleased with the U.S. Supreme Court’s recent decision on patent venue in TC Heartland v. Kraft Foods Group Brands, he recoiled at what he felt was an “overreach” by Judge Rodney Gilstrap from the Eastern District of Texas (E.D. Tex.); Issa felt that Gilstrap misinterpreted the Supreme Court’s decision in TC Heartland by denying a motion to transfer venue from E.D. Tex. in Raytheon v. Cray. “It is, in fact, an act that I find reprehensible by that judge,” Issa said.

Only $128,000 collected from a combined 13 cases? That is less than $10,000 per case, which doesn’t even approach the nuisance value the truly bad actors, the true patent trolls that Issa himself and so many others rail against as extortion artists seek to collect. Indeed, the FTC report on Patent Assertion Entities from October 2016 suggested that settlements of less than $300,000 suggested malicious and malevolent behavior that should raise suspicions of patent trolling. If that is true, what does this say about the ongoing enforcement campaign of Issa’s own patents? It would certainly seem that there are all the indicia of patent trolling that Issa so frequently enjoys pontificating about when he witnesses the behavior displayed by others.

For the first 220 years of United States black letter law and precedent based directly on the U.S. Constitution, patents are property rights. Even the Republican Party Platform states that patents are property rights. Issa disagrees with all of that. Issa seems to believe that patents are instead some sort of public entitlement like food stamps as is evident in his bill, the America Invents Act, and his continuing actions even last week. Issa’s hypocrisy is so blatant, so obvious and so up front that I’m not sure he even understands what he just said, which is a very dangerous problem. So long as Darrell Issa remains in key lawmaking position in the Republican leadership in Congress, venture capital, patenting, new technologies, startups and jobs will continue to flee from the U.S. to China.

The day’s hearing focused on the patent troll narrative despite the lack of a substantive connection between that narrative and the TC Heartland case… Rep. Darrell Issa (R-CA), chairman of the House IP subcommittee, started his remarks by asking to what degree the Supreme Court’s decision in TC Heartland fixed a decade-old problem. Noting that new lawsuits have hit consumer electronics giant Apple (NASDAQ:AAPL) in the Eastern District of Texas (E.D. Tex.), Issa went on to say that “patent trolls, in my opinion, are the scourge of the patent world. We have time and time again attempted to stop patent trolls while in fact being objected to by genuine innovators who feel that they will be trampled in our effort to stop the worst of the worst.” Issa also opined that the TC Heartland decision now likely makes businesses of all kinds avoid the jurisdiction of E.D. Tex. “Why set up shop in Eastern Texas if it creates venue for patent infringement,” he said.

Michelle Lee seems to still be Director. She is signing patents and Federal Register Notices, but both Commerce and USPTO decline comment on her status… Presumably at some time we will be told who is the Director of the United States Patent and Trademark Office, but until then that information is being protected as if it is a State secret. Information on who is running the USPTO seems to be on a need to know basis and I guess the public just doesn’t need to know.

The subcommittee convened a hearing to discuss issues of judicial transparency and ethics which affect the system of U.S. federal courts. Republican members of the subcommittee mainly focused on ways of making the Public Access to Court Electronic Records (PACER) system and a wide array of court proceedings more available to the public… Perhaps the most contentious was Osterreicher’s support for increased electronic communications, especially where it involved cameras in the courtroom… Aside from privacy, some Members were concerned that introducing cameras into the courtroom would encourage grandstanding and playing to the camera.

According to an update given by Issa to Politico, Lee has been held over by the Trump Administration and she might be in line for some Administration position outside of the Patent Office… All of this cloak and dagger secrecy surrounding Michelle Lee and the circumstances relating to her resignation and/or being held over is extraordinarily weird. The mixed signals and continued refusal to comment, coupled with the Director’s position being either vacant or held by Lee are leading some to question what is going on, and whether there is a much more serious problem lurking.

The House Judiciary Committee will set the agenda for any intellectual property legislative reforms that will arise over the next two years during the 115th Congress, and the Subcommittee on Courts, Intellectual Property, and the Internet will take the lead for the full House Judiciary Committee. Congressman Bob Goodlatte (R-VA) is once again Chair of the House Judiciary Committee, and in that role will continue to have tremendous influence on any intellectual property related matters… At the start of the 114th Congress, Congressman Darrell Issa was made Chair of the Subcommittee on Courts, Intellectual Property, and the Internet. Despite being an inventor himself, the bombastic Issa has aligned himself with Google and other Silicon Valley elites. Issa is not viewed as a friend of independent inventors, and instead lambasts patents trolls as often as he can. While no one likes a patent troll, Issa has taken the unusual step to equate patent trolls with all patent owners who enforce their patents.

Going to DEFCON 1 has no doubt begun, and will only continue, as those who are opposed to Lee staying continue to publicly explain why she must go. As this story continues to drag out there will be more of this, and if she is nominated to serve as Director those that oppose her will be extremely well organized and will mount a significant challenge to her confirmation. The groundwork is already being laid. It could get very ugly I’m afraid, which would only divide the industry and seriously wound whoever is ultimately given the job.

How much longer can there be no official announcement regarding the status of Michelle Lee? The continued silence raises very serious questions, particularly given that there have been public announcements made regarding others who have been specifically held over to serve in the Trump Administration. Undoubtedly, at some point continued silence about Lee’s status will mature into questions about her authority and whether any actions she takes are legal or perhaps simply void ab initio… If no answer is forthcoming in very short order someone will need to speak up, at least internally, because from the outside the facts give reason to suspect the possibility that a former USPTO Director may be refusing to relinquish power and the rest of the agency is just going along with it.

If Lee did not resign and she has been asked to stay on as Director why has the Patent Office declined to comment? Further complicating matters, if you visit the Department of Commerce leadership webpage, the position of Under Secretary for Intellectual Property and Director of the United States Patent and Trademark Office is listed as “Vacant.”

We just don’t need another lawyer or lobbyist to run the USPTO. We need more this time. We need someone from the grassroots who understands the very real hurdles facing America’s most innovative segment. Congressman Thomas Massie (R-KY) comes to mind. He has built a company based on his patents and is a strong advocate for strong patents for startups. Hans Høeg, Congressman Massie’s Chief of Staff, also comes to mind. He is an inventor with a couple dozen patents and a startup built on patents. He also has four years navigating Congress and the government in his role working for Massie. He understands how patents work at the grassroots level, he understands the processes of the USPTO, he is experienced in patent law and licensing, and he understands how to navigate politically.