[HN Gopher] Unified Patent Court is more expensive and an SME ki...
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       Unified Patent Court is more expensive and an SME killer
        
       Author : zoobab
       Score  : 99 points
       Date   : 2021-10-31 11:50 UTC (11 hours ago)
        
 (HTM) web link (ffii.org)
 (TXT) w3m dump (ffii.org)
        
       | mark_l_watson wrote:
       | I think this bias against small companies and individuals is
       | easily explained, at least in the USA where I live. This probably
       | applies to the EU also:
       | 
       | Large corporations buy influence via lobbying, revolving door
       | policies, etc. so expect governments to set in place policies to
       | protect large incumbents from smaller rivals. So many modern
       | problems would be reduced if we could get rid of the deep
       | systemic corruption.
        
       | zoobab wrote:
       | Court fee to invalidate a patent in Belgium is 165EUR,
       | Netherlands 667EUR, France around 400EUR, Italy around 500EUR,
       | Czech Republic 80EUR, Sweden 160EUR.
       | 
       | We are very far from those 20.000EUR.
        
       | _0ffh wrote:
       | > FFII says the proposed Unified Patent Court is an SME killer
       | with its super-expensive court fees of 20.000EUR. No small
       | company will be able to defend itself if it is accused of
       | violating a patent, the proposed UPC court fees will deny access
       | to justice for small companies, the cost being 100X more
       | expensive than the current situation in the different countries.
       | 
       | I can't help but wonder if this is really just an honest mistake
       | by the EU.
        
         | brezelgoring wrote:
         | >just an honest mistake
         | 
         | I wouldn't think so, these are legislations that have every
         | word and number fought for by the legislators, this is likely a
         | concession to some legislator that stands to gain from this.
        
         | jopsen wrote:
         | > I can't help but wonder if this is really just an honest
         | mistake by the EU.
         | 
         | Unlike software patents, it's less clear to me that this is
         | worse than the alternative.
        
       | mchusma wrote:
       | Not sure what to make of this.
       | 
       | Patents should be much more expensive. They are government
       | granted monopolies.
       | 
       | Most patents are also not really original too, so I'd expect the
       | world would be better off with 1/10th the number of patents.
       | 
       | They probably should ongoing gradually escalating fees (for
       | example maybe getting a patent for the first 5 years can be
       | $100k, next 5 years $1M, next 5 years $10M, last 5 years $100M).
       | 
       | But the fees for resolving disputes should come down (mostly
       | lawyers fees, not court fees). Probably the best way is to
       | eliminate the government granted Monopoly on attorneys (and
       | related restrictions on law).
        
         | emn13 wrote:
         | All of these suggestions are a right step. The fundamental
         | issue is that the current system is designed to issue when in
         | doubt; without considering the cost to society from inhibiting
         | progress by pointlessly throwing everything through the legal
         | grinder with extra sand (in the form of a patent minefield).
         | 
         | Ideally we'd start looking for an entirely different way to
         | encourage innovation, and just cease issuing patents entirely.
         | For example, patent-like systems with a more restrictive scope
         | (not exlusive access to pretty much "any idea", but exclusive
         | access to e.g. "medical approval"), so we don't accidentally
         | hit every future sector with this junk. And perhaps we'd look
         | for some system that's more self-regulating; i.e. where abuse
         | exists rather in the form of ripping of the taxpayer, and less
         | in the form of court cases. The justice system is so terribly
         | inefficient and _everything_ it touches, yet is just keeps on
         | growing until everything is some kind of zero-sum game.
        
       | patentatt wrote:
       | Luckily the UPC is a complete pipe dream and may never see the
       | light of day. It's been 'around the corner' for nearly a decade.
        
       | etothepii wrote:
       | It's not clear from this press release that there's a fee to
       | defend oneself. A 11k fee to file would surely make it less
       | likely there would be trolls?
        
         | newaccount74 wrote:
         | If someone attacks you with a bogus patent, then it would cost
         | 20.000EUR to request invalidation of the bogus patent.
         | 
         | From a quote near the bottom of the article:
         | 
         | > Typically, in response the sued company could be advised to
         | demand cancellation of the Unitary Patent by means of a
         | counterclaim but in that case, it will be required to pay a
         | court fee of EUR 20,000.
        
         | stepbeek wrote:
         | 11k is nothing to a patent troll like a FAANG (MAANG now?) but
         | quite a lot to the kind of SME that - afaik - doesn't engage in
         | this behavior to the same extent.
        
           | ByteJockey wrote:
           | > MAANG now?
           | 
           | I keep hearing MANGA
        
             | stepbeek wrote:
             | If we substitute Netflix for Microsoft (I'm never sure why
             | Netflix was chosen instead), we can have GAMMA which is my
             | personal favorite.
        
               | ectopod wrote:
               | Why not have both? "The GAMMAN companies" has a nice ring
               | to it.
        
               | fortran77 wrote:
               | I think it was originally for "Silicon Valley" companies,
               | and Microsoft was up in Seattle.
        
               | dlgeek wrote:
               | So's Amazon.
               | 
               | It was "high-growth large-cap tech stocks" at a specific
               | point (where MSFT was flat) - it was a Wall Street thing,
               | not a tech thing.
        
           | plumeria wrote:
           | It is being referred to as MANGA in other places
        
           | PeterisP wrote:
           | > (MAANG now?) FAANG still has G for Google, not A for
           | Alphabet. In a similar vein, we can (and perhaps should?)
           | simply ignore Facebook's rebranding attempt - names are a
           | social constrict, you don't get to unilaterally decide how
           | others will call you.
        
             | fortran77 wrote:
             | If only this were true! People wouldn't be kicked off open
             | source projects.
        
             | bryanrasmussen wrote:
             | >names are a social constrict,
             | 
             | typo as truth.
        
               | VBprogrammer wrote:
               | We can perhaps now just shorten it to "the man". I think
               | at one point it was generally used to refer to exciting
               | tech companies where people got paid really well and had
               | an almost unreasonable standard of employment (meals
               | provided for them etc).
               | 
               | For the most part those companies have grown up and stuff
               | like free coffee and fruit has become the standard across
               | most offices.
        
         | gruturo wrote:
         | Trolls have a reasonably large amount of money to burn if
         | necessary, and they normally try to get their victims to settle
         | _before_ things reach any court.
         | 
         | So no, this won't stop trolls, it will only deter a lot of
         | legitimate cases from SMEs.
        
         | [deleted]
        
       | JackFr wrote:
       | What is an SME?
       | 
       | Subject matter expert? Small and medium enterprise? Article could
       | do better.
        
         | [deleted]
        
         | wereHamster wrote:
         | https://en.wikipedia.org/wiki/Small_and_medium-sized_enterpr...
        
         | uberswe wrote:
         | Small to medium Enterprise (business)
        
           | whoopdedo wrote:
           | I've come to believe there's a rule similar to Betteridge's
           | Law of Headlines along the lines of: When an article says
           | "small-business" it can be substituted with "big-business" to
           | make the article more accurate.
           | 
           | Except in rare cases, policies that help smaller businesses
           | will also help larger ones proportionally. To hide the big-
           | business benefit, promoters of the bill will spotlight how it
           | helps the "little guy". Because SME/SMB have become
           | politically untouchable. Being accused of hurting small
           | business owners will get a congressperson out of a job. It's
           | a think-of-the-children argument. So when I see something
           | being touted as good for small business business, it sets off
           | warnings that a spin doctor is at work.
        
       | nceqs3 wrote:
       | The EU patent office is horribly unfair to individual inventors.
       | There are not even fee differences for a kid in their bedroom vs
       | Apple when filing a patent.
       | 
       | Take data also, EPO will charge you hundreds of thousands of
       | dollars for patent data. USPTO gives it to everybody for free.
        
         | iechoz6H wrote:
         | "Take data also, EPO will charge you hundreds of thousands of
         | dollars for patent data."
         | 
         | This appears to be wrong, the full dataset is available as a
         | free download: https://data.epo.org/linked-data/download/
         | 
         | There is also a freely available API, with documentation at:
         | https://data.epo.org/linked-data/documentation/api-overview....
        
           | nceqs3 wrote:
           | I am not talking about the patent images. That's not the data
           | that most people are interested in. I am talking about
           | ESpacenet, OPS, etc. which are the ones that people care
           | about.
        
             | iechoz6H wrote:
             | OPS data can be downloaded with a free account (up to 4GB
             | per week): https://www.epo.org/searching-for-
             | patents/data/web-services/...
             | 
             | ESpacenet appears to be available as at the very least a
             | completely free online search:
             | https://worldwide.espacenet.com/patent/
             | 
             | Am I missing something?
        
               | nceqs3 wrote:
               | 4GB is nothing for a dataset of that size and Espacenet
               | is certainly available online, but it is heavily rate
               | limited and they do not just allow you to download the
               | full thing.
               | 
               | The data was only a side point. My main frustration with
               | the EPO is the fee structure.
        
       | pclmulqdq wrote:
       | The 20k and 11k fees here are for invalidating and proving
       | infringement respectively. The second one should dissuade trolls
       | who want to target small users. The 20k fee is not to defend
       | yourself from an infringement claim, it is to invalidate a
       | patent. That is very different than defending yourself.
       | 
       | The equivalent filing in the US is about the same price, and the
       | process of invalidating a patent is long and complicated, so in
       | any jurisdiction you should expect to pay hundreds of thousands
       | in legal fees for that process. On top of those fees, 20k isn't
       | that much.
        
         | indymike wrote:
         | > On top of those fees, 20k isn't that much.
         | 
         | If we are comparing apples to apples, the actual court filing
         | fees and such in the US are pretty small ($350 to sue in
         | Federal court + $400 to file documentation), and if you cannot
         | afford these fees the court has the power to waive them. For a
         | small business with a clear case,this means your $20K is
         | _possibly_ enough to pay the lawyer and see the case though.
         | Just recently, on this site, we had an article about SparkFun
         | rebuffing a patent troll in US Federal Court for less than (or
         | close to, as I recall) the EU filing fee.
         | 
         | > On top of those fees, 20k isn't that much.
         | 
         | Yes, the issue is when the fees are charged. A filing fee
         | prevents discovery from ever happening. It is basically saying,
         | you are too small, too poor to dispute a patent. That is not
         | justice.
        
         | marcinzm wrote:
         | Isn't invalidating the patent one of the defenses you have
         | against a patent troll? If they don't back off you may cost
         | them all future business for that patent. This makes that
         | potentially much more expensive to do.
        
           | pclmulqdq wrote:
           | It is, but it's a VERY aggressive line of defense. The OP was
           | saying that this is an "SME killer" and that "No small
           | company will be able to defend itself" against a patent suit.
           | This is far from the case. A small company was never going to
           | try to invalidate a patent to defend itself either way.
        
         | rwmj wrote:
         | Shouldn't invalidation of a patent simply be a matter of
         | presenting evidence of prior art? I can imagine that you'd want
         | to mandate that the evidence is presented in a certain format
         | and possibly charge a very nominal fee (both to avoid time-
         | wasters) but nothing more. The bias should always be towards
         | invalidating patents, given the damage they do to competition.
        
           | pclmulqdq wrote:
           | There are a lot of different ways of invalidating a patent,
           | and that is the simplest. However, that is also nominally
           | what the examiner did during the issuance of the patent, so
           | unless there was gross incompetence (eg the "shopping cart"
           | patents), it's not that simple.
        
             | rwmj wrote:
             | I've filed several patents and never seen any evidence that
             | the examiner did anything apart from stamping paperwork.
        
               | AlbertCory wrote:
               | Echo the other answer to this. If you know where to look,
               | you can find what they searched.
               | 
               | I'm not saying it was a _thorough_ search, but it was a
               | search.
        
               | btrettel wrote:
               | Type the application number into Global Dossier if it's
               | published, and take a look at the "file wrapper" (term
               | for all the documents listed). You'll get a better idea
               | of what the examiner did.
               | https://globaldossier.uspto.gov/
               | 
               | In the US at least, they typically put time stamped
               | search logs in the patent file wrapper, so you can get a
               | fairly good idea of what was searched and how long that
               | took. It seems to me, however, that few patent attorneys
               | will look at anything other than the "office actions",
               | and they will look only at parts of those. Other
               | jurisdictions don't seem to put anywhere near as many
               | documents in patent file wrappers as the US does.
        
               | rwmj wrote:
               | Here's the first patent I filed (and wrote(!)) which was
               | in the UK. Can I search what the examiner did on this?
               | https://patents.google.com/patent/WO1998024208A2
               | 
               | The latest one I coauthored is a US patent which might
               | easier to research:
               | https://uspto.report/patent/app/20210034401
        
               | btrettel wrote:
               | On Google Patents you can get a shortcut to the USPTO
               | Global Dossier if you search for "External Links". Looks
               | like the USPTO Global Dossier is down for WIPO documents
               | right now but the Espacenet Global Dossier is up: https:/
               | /register.epo.org/ipfwretrieve?apn=GB.9703212.W&lng=e...
               | 
               | You can see the search report for the WIPO document you
               | linked to there. Often the descriptions are inaccurate,
               | so in this case even though it just says "Published
               | International Application" for all 3 documents, it's not
               | necessarily that. The one dated 05.11.1998 is the search
               | report. This one is not very detailed.
               | 
               | The EPO version has a lot more: https://register.epo.org/
               | application?tab=doclist&number=EP97...
               | 
               | For the second one you mention, the USPTO Global Dossier
               | lists a bunch of documents: https://globaldossier.uspto.g
               | ov/#/details/US/16530248/A/7839...
               | 
               | You can get there by changing the "Type" drop-down menu
               | to "Pre-grant Publication" and typing in 20210034401. You
               | can look at a lot of search logs for this one. You can
               | also read the "Notice of Allowance and Fees Due
               | (PTOL-85)" to see why the examiner issued this patent.
        
         | VBprogrammer wrote:
         | Invalidating a patent to me is an admission that the patent
         | shouldn't have been granted in the first place. I appreciate
         | that there is a long legal battle to get there but the patent
         | authority then charging a fee feels like them getting money for
         | their own failings. If anything they should be paying those
         | people who's business was in legal limbo compensation for their
         | error.
        
           | pbhjpbhj wrote:
           | So then, instead of accepting that patent offices can't find
           | all relevant prior art/prior use (disclosed anywhere in the
           | World) you require perfection in the discovery of relevant
           | 'art' (closely related technical documents).
           | 
           | That shifts the problem from "occasionally a patent is
           | granted that isn't valid" to "it will cost $billions for even
           | a single patent just to do a complete search" (more
           | realistically this isn't possible you'd have to exhaustively
           | search all prior publications).
           | 
           | IMO if you want a patent system you have to make it work
           | without expecting perfection from patent offices.
        
             | AlbertCory wrote:
             | > "occasionally a patent is granted that isn't valid"
             | 
             | ROTFL. It's more like "with software, the patent is
             | virtually _always_ invalid. "
             | 
             | I'm sure there are people better than I am, but I can
             | invalidate practically any software patent. And I did it
             | for Google, including in Germany in the Google Maps case of
             | 2014.
             | 
             | The average time an examiner is given for a patent is a day
             | and a half (old data). That is not nearly enough time to
             | find the "relevant prior art." So what the patent offices
             | are doing is handing out worthless government "monopolies"
             | and making tons of money in fees while they're doing it.
        
               | pbhjpbhj wrote:
               | >ROTFL. It's more like "with software, the patent is
               | virtually always invalid." //
               | 
               | Yes, the establishment of prior art is particularly hard
               | for software IMO, but that's mainly not an EPO issue (per
               | the OP) as software patents in Europe are much more
               | restricted compared to before the USPTO.
               | 
               | Your timing is broadly right IME, probably a bit generous
               | for less complex areas (though it varies and EPO spend a
               | bit longer).
               | 
               | Note that in part it's an industry issue - if software
               | companies wanted to help them they can point out prior
               | art before parents are granted (it's part of the process
               | in EPO and USPTO jurisdictions).
               | 
               | >I'm sure there are people better than I am, but I can
               | invalidate practically any software patent. //
               | 
               | EPO _granted_ patents? I'm highly doubtful you can do
               | that in the normal search period (0.5-1.5 days).
               | 
               | If you want to argue that far more resources should be
               | devoted to patent examination; that's possible but in EPO
               | countries the balance seems about right -- countries have
               | a hard job arguing for thousands more civil servants to
               | save only a few (!?) court cases. In USPTO you need an
               | overhaul of the court system, massive increase in
               | examining staff I don't think we'll fix it.
               | 
               | All just my opinion of course.
        
               | AlbertCory wrote:
               | > "EPO _granted_ patents? I'm highly doubtful you can do
               | that in the normal search period (0.5-1.5 days)."
               | 
               | "In the normal search period" is the key phrase here. If
               | you're granting a government monopoly which is extremely
               | costly to challenge (as the article demonstrates), then
               | you owe us more than a cursory look at the prior art.
               | 
               | In any case, this is probably an argument for just making
               | software nearly impossible to patent, even more than the
               | EPO already does. As (I think) Joel Spolsky said, no more
               | than 5 or 6 per year sounds about right.
        
             | VBprogrammer wrote:
             | The remark about paying compensation was slightly in jest.
             | I do think it's unreasonable for there to be a fee for
             | issuing a patent as well as invalidated one though.
             | Expecting perfection is a long way from expecting their
             | incentives to be aligned with the desired outcomes.
        
           | AlbertCory wrote:
           | Correct. The PTO (speaking of the US here) takes in way more
           | money in fees than it spends, and doesn't even get to keep
           | that money to improve its searching.
        
       | ATsch wrote:
       | If there's one thing I've learned from the world of think tanks
       | it's that you have to be extremely critical when someone starts
       | arguing about the woes of SMEs.
        
       | civilized wrote:
       | Annoying that politicians feel entitled to set enormous fees for
       | government services as a form of social engineering or
       | profiteering, rather than simply providing the services at cost.
        
       | mannykannot wrote:
       | This is a problematic proposal, but, unfortunately perhaps, I do
       | not think one can plausibly say that it raises the specter of "EU
       | economic suicide". I would characterize it more along the lines
       | of being a step in the refeudalization of the developed world.
        
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