The rights we have in the offline world–to speak freely, create culture, play games, build new things and do business–must be available to us online, as well. This core belief drives EFF’s work to fight the misuse of the patent system. 

Despite significant progress we’ve made over the last decade, patents, and in particular vague software patents, remain a serious threat to online rights. The median patent lawsuit isn't filed by what Americans would recognize as an ‘inventor,’ but by an anonymous limited liability company that provides no products or services, and instead uses patents to threaten others over alleged infringement. In other words, a patent troll. In the tech sector, more than 85% of patent lawsuits are filed by these “non-practicing entities.” 

That’s why at EFF, we continue to  help individuals and organizations fight patent threats related to everyday activities like using CAPTCHAs and picture menus, tracking packages or vehicles,  teaching languages,  holding online contests, or playing simple games online. 

Here’s where the fight stands as we move into 2025. 

Defending the Public’s Right To Challenge Bad Patents

In 2012, recognizing the persistent problem of an overburdened patent office issuing a countless number dubious patents each year, Congress established a system called “inter partes reviews” (IPRs) to review and challenge patents. While far from perfect, IPRs have led to the cancellation of thousands of patents that should never have been granted in the first place. 

It’s no surprise that big patent owners and patent trolls have long sought to dismantle the IPR system. After unsuccessful attempts to persuade federal courts to dismantle IPRs, they shifted tactics in the past 18 months, attempting to convince the U.S. Patent and Trademark Office (USPTO) to undermine the IPR system by changing the rules on who can use it. 

EFF opposed these proposed changes, urging our supporters to file public comments. This effort was a resounding success. After reviewing thousands of comments, including nearly 1,000 inspired by EFF’s call to action, the USPTO withdrew its proposal. 

Stopping Congress From Re-Opening The Door To The Worst Patents 

The patent system, particularly in the realm of software, is broken. For more than 20 years, the U.S. Patent Office has issued patents on basic cultural or business practices, often with little more than the addition of computer jargon or trivial technical elements. 

The Supreme Court addressed this issue a decade ago with its landmark decision in a case called Alice v. CLS Bank, ruling that simply adding computer language to these otherwise generic patents isn’t enough to make them valid. However, Alice hasn’t fully protected us from patent trolls. Even with this decision, the cost of challenging a patent can run into hundreds of thousands of dollars, enabling patent trolls to make “nuisance” demands for amounts of $100,000 or less. But Alice has dampened the severity and frequency of patent troll claims, and allowed for many more businesses to fight back when needed. 

So we weren’t surprised when some large patent owners tried again this year to overturn Alice, with the introduction of the Patent Eligibility Restoration Act (PERA), which would bring the worst patents back into the system. PERA would also have overturned the Supreme Court ruling that prevents the patenting of human genes. EFF opposed PERA at every stage, and late this year, its supporters abandoned their efforts to pass it through the 118th Congress. We know they will try again next year–we’ll be ready. 

Shining Light On Secrecy In Patent Litigation

Litigation in the U.S is supposed to be transparent, particularly in patent cases involving technologies that impact millions of  internet users daily. Unfortunately, this is not always the case. In Entropic Communications LLC v. Charter Communications, filed in the U.S. District Court for the Eastern District of Texas, overbroad sealing of documents has obscured the case from public view. EFF intervened in the case to protect the public’s right to access federal court records, as the claims made by Entropic could have wide-reaching implications for anyone using cable modems to connect to the internet. 

Our work to ensure transparency in patent disputes is ongoing. In 2016, EFF intervened in another overly-sealed patent case in the Eastern District of Texas. In 2022, we did the same in California, securing an important transparency ruling. That same year, we supported a judge’s investigation into patent owners in Delaware, which ultimately resulted in referrals for criminal investigation. The judge’s actions were upheld on appeal this year. 

It remains far too easy for patent trolls to extort and exploit individuals and companies simply for creating or using software. In 2025, EFF will continue fighting for a patent system that’s open, fair, and transparent. 

This article is part of our Year in Review series. Read other articles about the fight for digital rights in 2024.

Update 11/21/2024: The Senate Judiciary Committee voted 11-10 in favor of PREVAIL, and several senators expressed concerns about the bill. Thanks to EFF supporters who spoke out! We will continue to oppose this misguided bill. 

Good news: the Senate Judiciary Committee has dropped one of the two terrible patent bills it was considering, the patent-troll-enabling Patent Eligibility Restoration Act (PERA).

Bad news: the committee is still pushing the PREVAIL Act, a bill that would hamstring the U.S.’s most effective system for invalidating bad patents. PREVAIL is a windfall for patent trolls, and Congress should reject  it.

Take Action

Tell Congress: No New Bills For Patent Trolls

One of the most effective tools to fight bad patents in the U.S. is a little-known but important system called inter partes review, or IPR. Created by Congress in 2011, the IPR process addresses a major problem: too many invalid patents slip through the cracks at the U.S. Patent and Trademark Office. While not an easy or simple process, IPR is far less expensive and time-consuming than the alternative—fighting invalid patents in federal district court.

That’s why small businesses and individuals rely on IPR for protection. More than 85% of tech-related patent lawsuits are filed by non-practicing entities, also known as “patent trolls”—companies that don’t have products or services of their own, but instead make dozens, or even hundreds, of patent claims against others, seeking settlement payouts.

So it’s no surprise that patent trolls are frequent targets of IPR challenges, often brought by tech companies. Eliminating these worst-of-the-worst patents is a huge benefit to small companies and individuals that might otherwise be unable to afford an IPR challenge themselves. 

For instance, Apple used an IPR-like process to invalidate a patent owned by the troll Ameranth, which claimed rights over using mobile devices to order food. Ameranth had sued over 100 restaurants, hotels, and fast-food chains. Once the patent was invalidated, after an appeal to the Federal Circuit, Ameranth’s barrage of baseless lawsuits came to an end. 

PREVAIL Would Ban EFF and Others From Filing Patent Challenges

The IPR system isn’t just for big tech—it has also empowered nonprofits like EFF to fight patents that threaten the public interest. 

In 2013, a patent troll called Personal Audio LLC claimed that it had patented podcasting. The patent titled “System for disseminating media content representing episodes in a serialized sequence,” became the basis for the company’s demand for licensing fees from podcasters nationwide. Personal Audio filed lawsuits against three podcasters and threatened countless others.  

EFF took on the challenge, raising over $80,000 through crowd-funding to file an IPR petition. The Patent Trial and Appeals Board agreed: the so-called “podcasting patent,” should never have been granted. EFF proved that Personal Audio’s claims were invalid, and our victory was upheld all the way to the Supreme Court. 

The PREVAIL Act would block such efforts. It limits IPR petitions to parties directly targeted by a patent owner, shutting out groups like EFF that protect the broader public. If PREVAIL becomes law, millions of people indirectly harmed by bad patents—like podcasters threatened by Personal Audio—will lose the ability to fight back.

PREVAIL Tilts the Field in Favor of Patent Trolls

The PREVAIL Act will make life easier for patent trolls at every step of the process. It is shocking that the Senate Judiciary Committee is using the few remaining hours it will be in session this year to advance a bill that undermines the rights of innovators and the public.  

Patent troll lawsuits target individuals and small businesses for simply using everyday technology. Everyone who can meet the legal requirements of an IPR filing should have the right to challenge invalid patents. Use our action center today and tell Congress: that’s not a right we want to give up today. 

Take Action

Tell Congress: reject the prevail act

More on the PREVAIL Act: 

• EFF’s blog on how the PREVAIL Act takes rights away from the public
• Our coalition opposition letter to the Senate Judiciary Committee opposing PREVAIL
• Read why patients rights and consumer groups also oppose PREVAIL

Update 11/21/2024: The Senate Judiciary Committee voted 11-10 in favor of PREVAIL, and several senators expressed concerns about the bill. Thanks to EFF supporters who spoke out! We will continue to oppose this misguided bill. 

Update 11/14/2024: The PERA and PREVAIL patent bills were pulled at the last minute today, without getting a committee vote. Senators are right to have concerns with these deeply flawed bills. We hope to engage with the next Congress on real patent fixes—changes that will create a more fair system for small companies and everyday users of tech.  Thanks to all those who spoke out! If you haven't told Congress your opinion on these terrible patent bills, you can still do so using our action center linked below. Help us move the next Congress in a different direction. 

This week, the Senate Judiciary Committee is set to use its limited time in the lame-duck session to vote on a bill that would make the patent system even worse. 

The Patent Eligibility Restoration Act (S. 2140), or PERA, would undo vital limits on computer technology patents that the Supreme Court established in the  landmark 2014 Alice v. CLS Bank decision. Alice barred patent applicants from obtaining patents simply by adding generic computer language to abstract ideas. 

Take Action

Tell Congress: No New Bills For Patent Trolls

While Alice hasn’t fully fixed the problems of the patent system, or patent trolling, it has led to the rejection of hundreds of terrible software patents, including patents on crowdfunding, tracking packages, photo contests, watching online ads, computer bingo, upselling, and many others. 

PERA would not only revive these dangerous technology patents, but also expand patenting of human genes—a type of patent the Supreme Court essentially blocked in 2013. 

The Senate Judiciary is also scheduled to vote on the PREVAIL Act (S. 2220) that seeks to severely limit the public’s ability to challenge bad patents at the patent office. These challenges are among the most effective tools for eliminating patents that never should have been granted in the first place. 

Passing these bills would sell out the public interest to a narrow group of patent holders. EFF stands together with a broad coalition of patients rights groups, consumer rights organizations, think tanks, startups, and business organizations to oppose these harmful bills. 

This week, we need to show Congress that everyday users and creators won’t support laws that foster more patent abuse. Help us send a clear message to your representatives in Congress today. 

Take Action

Tell Congress to reject pera and prevail

The U.S. Senate must reject bills like these that would allow the worst patent scams to expand and thrive. 

In 2022, three companies with strange names and no clear business purpose beyond  patent litigation filed dozens of lawsuits in Delaware federal court, accusing businesses of all sizes of patent infringement. Some of these complaints claimed patent rights over basic aspects of modern life; one, for example, involved a  patent that pertains to the process of clocking in to work through an app.

These companies–named Mellaconic IP, Backertop Licensing, and Nimitz Technologies–seemed to be typical examples of “patent trolls,” companies whose primary business is suing others over patents or demanding licensing fees rather than providing actual products or services. 

However, the cases soon took an unusual turn. The Delaware federal judge overseeing the cases, U.S. District Judge Colm Connolly, sought more information about the patents and their ownership. One of the alleged owners was a food-truck operator who had been promised “passive income,” but was entitled to only a small portion of any revenue generated from the lawsuits. Another owner was the spouse of an attorney at IP Edge, the patent-assertion company linked to all three LLCs. 

Following an extensive investigation, the judge determined that attorneys associated with these shell companies had violated legal ethics rules. He pointed out that the attorneys may have misled Hau Bui, the food-truck owner, about his potential liability in the case. Judge Connolly wrote: 

[T]he disparity in legal sophistication between Mr. Bui and the IP Edge and Mavexar actors who dealt with him underscore that counsel's failures to comply with the Model Rules of Professional Conduct while representing Mr. Bui and his LLC in the Mellaconic cases are not merely technical or academic.

Judge Connolly also concluded that IP Edge, the patent-assertion company behind hundreds of patent lawsuits and linked to the three LLCs, was the “de facto owner” of the patents asserted in his court, but that it attempted to hide its involvement. He wrote, “IP Edge, however, has gone to great lengths to hide the ‘we’ from the world,” with "we" referring to IP Edge. Connolly further noted, “IP Edge arranged for the patents to be assigned to LLCs it formed under the names of relatively unsophisticated individuals recruited by [IP Edge office manager] Linh Deitz.” 

The judge referred three IP Edge attorneys to the Supreme Court of Texas’ Unauthorized Practice of Law Committee for engaging in “unauthorized practices of law in Texas.” Judge Connolly also sent a letter to the Department of Justice, suggesting an investigation into “individuals associated with IP Edge LLC and its affiliate Maxevar LLC.” 

Patent Trolls Tried To Shut Down This Investigation

The attorneys involved in this wild patent trolling scheme challenged Judge Connolly’s authority to proceed with his investigation. However, because transparency in federal courts is essential and applicable to all parties, including patent assertion entities, EFF and two other patent reform groups filed a brief in support of the judge’s investigation. The brief argued that “[t]he public has a right—and need—to know who is controlling and benefiting from litigation in publicly-funded courts.” Companies targeted by the patent trolls, as well as the Chamber of Commerce, filed their own briefs supporting the investigation. 

The appeals court sided with us, upholding Judge Connolly’s authority to proceed, which led to the referral of the involved attorneys to the disciplinary counsel of their respective bar associations. 

After this damning ruling, one of the patent troll companies and its alleged owner made a final effort at appealing this outcome. In July of this year, the U.S. Court of Appeals for the Federal Circuit ruled that investigating Backertop Licensing LLC and ordering its alleged owner to testify was “an appropriate means to investigate potential misconduct involving Backertop.” 

In EFF’s view, these types of investigations into the murky world of patent trolling are not only appropriate but should happen more often. Now that the appeals court has ruled, let’s take a look at what we learned about the patent trolls in this case. 

Patent Troll Entities Linked To French Government

One of the patent trolling entities, Nimitz Technologies LLC, asserted a single patent, U.S. Patent No. 7,848,328, against 11 companies. When the judge required Nimitz’s supposed owner, a man named Mark Hall, to testify in court, Hall could not describe anything about the patent or explain how Nimitz acquired it. He didn’t even know the name of the patent (“Broadcast Content Encapsulation”). When asked what technology was covered by the patent, he said, “I haven’t reviewed it enough to know,” and when asked how he paid for the patent, Hall replied, “no money exchanged hands.” 

The exchange between Hall and Judge Connolly went as follows: 

Q. So how do you come to own something if you never paid for it with money?

A. I wouldn't be able to explain it very well. That would be a better question for Mavexar.

Q. Well, you're the owner?

A. Correct.

Q. How do you know you're the owner if you didn't pay anything for the patent?

A. Because I have the paperwork that says I'm the owner.

(Nov. 27, 2023 Opinion, pages 8-9.) 

The Nimitz patent originated from the Finnish cell phone company Nokia, which later assigned it and several other patents to France Brevets, a French sovereign investment fund, in 2013. France Brevets, in turn, assigned the patent to a US company called Burley Licensing LLC, an entity linked to IP Edge, in 2021. Hau Bui (the food truck owner) signed on behalf of Burley, and Didier Patry, then the CEO of France Brevets, signed on behalf of the French fund. 

France Brevets was an investment fund formed in 2009 with €100 million in seed money from the French government to manage intellectual property. France Brevets was set to receive 35% of any revenue related to “monetizing and enforcement” of the patent, with Burley agreeing to file at least one patent infringement lawsuit within a year, and collect a “total minimum Gross Revenue of US $100,000” within 24 months, or the patent rights would be given back to France Brevets. 

Burley Licensing LLC, run by IP Edge personnel, then created Nimitz Technologies LLC— a company with no assets except for the single patent. They obtained a mailing address for it from a Staples in Frisco, Texas, and assigned the patent to the LLC in August 2021, while the obligations to France Brevets remained unchanged until the fund shut down in 2022.

The Bigger Picture

It’s troubling that patent lawsuits are often funded by entities with no genuine interest in innovation, such as private equity firms. However, it’s even more concerning when foreign government-backed organizations like France Brevets manipulate the US patent system for profit. In this case, a Finnish company sold its patents to a French government fund, which used US-based IP lawyers to file baseless lawsuits against American companies, including well-known establishments like Reddit and Bloomberg, as well as smaller ones like Tastemade and Skillshare.

Judges should enforce rules requiring transparency about third-party funding in patent lawsuits. When ownership is unclear, it’s appropriate to insist that the real owners show up and testify—before dragging dozens of companies into court over dubious software patents. 

Related documents: 

• Memorandum and Order referring counsel to disciplinary bodies (Nov. 23, 2023) 
• Federal Circuit Opinion affirming the order requiring Lori LaPray to appear “for testimony regarding potential fraud on the court,” as well as the District Court’s order of monetary sanction against Ms. LaPray for subsequently failing to appear

Update 9/26/24: The hearing and scheduled committee vote on PERA and PREVAIL was canceled. Supporters can continue to register their opposition via our action, as these bills may still be scheduled for a vote later in 2024. 

The U.S. Senate Judiciary Committee is set to vote this Thursday on two bills that could significantly empower patent trolls. The Patent Eligibility Restoration Act (PERA) would bring back many of the abstract computer patents that have been barred for the past 10 years under Supreme Court precedent. Meanwhile, the PREVAIL Act would severely limit how the public can challenge wrongly granted patents at the patent office. 

Take Action

Tell Congress: No New Bills For Patent Trolls

EFF has sent letters to the Senate Judiciary Committee opposing both of these bills. The letters are co-signed by a wide variety of civil society groups, think tanks, startups, and business groups that oppose these misguided bills. Our letter on PERA states: 

Under PERA, any business method, methods of practicing medicine, legal agreement, media content, or even games and entertainment could be patented so long as the invention requires some use of computers or electronic communications… It is hard to overstate just how extreme and far-reaching such a change would be.

If enacted, PERA could revive some of the most problematic patents used by patent trolls, including: 

• The Alice Corp. patent, which claimed the idea of clearing financial transactions through a third party via a computer. 
• The Ameranth patent, which covered the use of  mobile devices to order food at restaurants. This patent was used to sue over 100 restaurants, hotels, and fast-food chains just for merely using off-the-shelf technology.  
• A patent owned by Hawk Technology Systems LLC, which claimed generic video technology to view surveillance videos, and was used to sue over 200 hospitals, schools, charities, grocery stores, and other businesses. 

The changes proposed in PERA open the door to patent compounds that exist in nature which nobody invented

A separate letter signed by 17 professors of IP law caution that PERA would cloud the legal landscape on patent eligibility, which the Supreme Court clarified in its 10-year-old Alice v. CLS Bank case. “PERA would overturn centuries of jurisprudence that prevents patent law from effectively restricting the public domain of science, nature, and abstract ideas that benefits all of society,” the professors write.  

The U.S. Public Interest Research Group also opposes both PERA and PREVAIL, and points out in its opposition letter that patent application misuse has improperly prevented generic drugs from coming on to the market, even years after the original patent has expired. They warn: 

“The changes proposed in PERA open the door to patent compounds that exist in nature which nobody invented, but are newly discovered,” the group writes. “This dramatic change could have devastating effects on drug pricing by expanding the universe of items that can have a patent, meaning it will be easier than ever for drug companies to build patent thickets which keep competitors off the market.” 

Patients’ rights advocacy groups have also weighed in. They argue that PREVAIL “seriously undermines citizens’ ability to promote competition by challenging patents,” while PERA “opens the door to allow an individual or corporation to acquire exclusive rights to aspects of nature and information about our own bodies.” 

Generic drug makers share these concerns. “PREVAIL will make it more difficult for generic and biosimilar manufacturers to challenge expensive brand-name drug patent thickets and bring lower-cost medicines to patients, and PERA will enable brand-name drug manufacturers to build even larger thickets and charge higher prices,” an industry group stated earlier this month. 

We urge the Senate to heed  the voices of this broad coalition of civil society groups and businesses opposing these bills. Passing them would create a more unbalanced and easily exploitable patent system. The public interest must come before the loud voices of patent trolls and a few powerful patent holders. 

Take Action

Tell Congress to reject pera and prevail

Documents: 

• EFF Coalition Letter Opposing PERA
• EFF Coalition Letter Opposing PREVAIL
• IP Law Academics Letter Opposing PERA
• US PIRG Letter Opposing PERA and PREVAIL
• Generation Patient, I-MAK, R Street, US PIRG Letter Opposing PERA and PREVAIL
• Association for Accessible Medicines Statement Opposing on PERA and PREVAIL

The U.S. patent system is broken, particularly when it comes to software patents. At EFF, we’ve been fighting hard for changes that make the system more sensible. Last month, we got a big victory when we defeated a set of rules that would have mangled one of the U.S. Patent and Trademark Office (USPTO)’s most effective systems for kicking out bad patents. 

In 2012, recognizing the entrenched problem of a patent office that spewed out tens of thousands of ridiculous patents every year, Congress created a new system to review patents called “inter partes reviews,” or IPRs. While far from perfect, IPRs have resulted in cancellation of thousands of patent claims that never should have been issued in the first place. 

At EFF, we used the IPR process to crowd-fund a challenge to the Personal Audio “podcasting patent” that tried to extract patent royalty payments from U.S. podcasters. We won that proceeding and our victory was confirmed on appeal.

It’s no surprise that big patent owners and patent trolls have been trying to wreck the IPR system for years. They’ve tried, and failed, to get federal courts to dismantle IPRs. They’ve tried, and failed, to push legislation that would break the IPR system. And last year, they found a new way to attack IPRs—by convincing the USPTO to propose a set of rules that would have sharply limited the public’s right to challenge bad patents. 

That’s when EFF and our supporters knew we had to fight back. Nearly one thousand EFF supporters filed comments with the USPTO using our suggested language, and hundreds more of you wrote your own comments. 

Today, we say thank you to everyone who took the time to speak out. Your voice does matter. In fact, the USPTO withdrew all three of the terrible proposals that we focused on. 

Our Victory to Keep Public Access To Patent Challenges 

The original rules would have greatly increased expanded what are called “discretionary denials,” enabling judges at the USPTO to throw out an IPR petition without adequately considering the merits of the petition. While we would like to see even fewer discretionary denials, defeating the proposed limitations patent challenges is a significant win.

First, the original rules would have stopped “certain for-profit entities” from using the IPR system altogether. While EFF is a non-profit, for-profit companies can and should be allowed to play a role in getting wrongly granted patents out of the system. Membership-based patent defense organizations like RPX or Unified Patents can allow small companies to band together and limit their costs while defending themselves against invalid patents. And non-profits like the Linux Foundation, who joined us in fighting against these wrongheaded proposed rules, can work together with professional patent defense groups to file more IPRs. 

EFF and our supporters wrote in opposition to this rule change—and it’s out. 

Second, the original rules would have exempted “micro and small entities” from patent reviews altogether. This exemption would have applied to many of the types of companies we call “patent trolls”—that is, companies whose business is simply demanding license fees for patents, rather than offering actual products or services. Those companies, specially designed to threaten litigation, would have easily qualified as “small entities” and avoided having their patents challenged. Patent trolls, which bully real small companies and software developers into paying unwarranted settlement fees, aren’t the kind of “small business” that should be getting special exemptions from patent review. 

EFF and our supporters opposed this exemption, and it’s out of the final rulemaking. 

Third, last year’s proposal would have allowed for IPR petitions to be kicked out if they had a “parallel proceeding”—in other words, a similar patent dispute—in district court. This was a wholly improper reason to not consider IPRs, especially since district court evidence rules are different than those in place for an IPR. 

EFF and our supporters opposed these new limitations, and they’re out. 

While the new rules aren’t perfect, they’re greatly improved. We would still prefer more IPRs rather than fewer, and don’t want to see IPRs that otherwise meet the rules get kicked out of the review process. But even there, the new revised rules have big improvements. For instance, they allow for separate briefing of discretionary denials, so that people and companies seeking IPR review can keep their focus on the merits of their petition. 

Additional reading: 

• EFF Comments on the 2024 Notice of Proposed Rulemaking
• EFF Comments on the 2023 Advance Notice of Proposed Rulemaking

It’s bad enough when a patent holder enforcing their rights in court try to exclude the public from those fights. What’s even worse is when courts endorse these secrecy tactics, just as a federal court hearing an EFF unsealing motion ruled in May. 

EFF continues to push for greater transparency in the case, Entropic Communications, LLC v. Charter Communications, Inc.,  and is asking a federal court of appeals to reverse the decision. A successful appeal will open this case to the public, and help everyone better understand patent disputes that are filed in the U.S. District Court for the Eastern District of Texas.

Secrecy in patent litigation is an enduring problem, and EFF has repeatedly intervened in lawsuits involving patent claims to uphold the public’s right to access court records. And in this case, the secrecy issues are heightened by the parties and the court believing that they can jointly agree to keep entire records under seal, without ever having to justify the secrecy. 

This case is a dispute between a semiconductor products provider, Entropic, and one of the nation's largest media companies, Charter, which offers cable television and internet service to millions of people. Entropic alleged that Charter infringed its patents (U.S. Patent Nos. 8,223,775; 8,284,690; 8,792,008; 9,210,362; 9,825,826; and 10,135,682) which cover cable modem technology. 

Charter has argued it had a license defense to the patent claims based on the industry-leading cable data transmission standard, Data Over Cable Service Interface Specification (DOCSIS). The argument could raise a core legal question in patent law: when is a particular patent “essential” to a technical standard and thus encumbered by licensing commitments?  

But so many of the documents filed in court about this legal argument are heavily redacted, making it difficult to understand. EFF filed to intervene and unseal these documents in March. EFF’s motion in part targeted a practice that is occurring in many patent disputes in the Texas district court, whereby parties enter into agreements, known as protective orders. These agreements govern how parties will protect information they exchange during the fact-gathering portion of a case. 

Under the terms of the model protective order created by the court, the parties can file documents they agree are secret under seal without having to justify that such secrecy overrides the public’s right to access court records. 

Despite federal appellate courts repeatedly ruling that protective orders cannot short-circuit the public’s right of access, the district court ruled that the documents EFF sought to unseal could remain secret precisely because the parties had agreed. Additionally, the district court ruled that EFF had no right to seek to unseal the records because it filed the motion to intervene and make the records public four months after the parties had settled. 

EFF is disappointed by the decision and strongly disagrees. Notably, the opinion does not cite any legal authority that allows parties to stipulate to keep their public court fights secret. As said above, many courts have ruled that such agreements are anathema to court transparency. 

Moreover, the court’s ruling that EFF could not even seek to unseal the documents in the first place sets a dangerous precedent. As a result many court dockets, including those with significant historic and newsworthy materials, can become permanently sealed merely because the public did not try to intervene and unseal records while the case was open. 

That outcome turns the public’s right of access to court records on its head: it requires the public to be extremely vigilant about court secrecy and punishes them for not knowing about sealed records. Yet the entire point of the presumption of public access is that judges and litigants in the cases are supposed to protect the public’s right to open courts, as not every member of the public has the time and resources to closely monitor court proceedings and hire a lawyer to enforce their public rights should they be violated.

EFF looks forward to vindicating the public’s right to access records on appeal. 

You’re not supposed to be able to litigate in secret in the U.S. That’s especially true in a patent case dealing with technology that most internet users rely on every day.

 Unfortunately, that’s exactly what’s happening in a case called Entropic Communications, LLC v. Charter Communications, Inc. The parties have made so much of their dispute secret that it is hard to tell how the patents owned by Entropic might affect the Data Over Cable Service Interface Specifications (DOCSIS) standard, a key technical standard that ensures cable customers can access the internet.

In Entropic, both sides are experienced litigants who should know that this type of sealing is improper. Unfortunately, overbroad secrecy is common in patent litigation, particularly in cases filed in the U.S. District Court for the Eastern District of Texas.

EFF has sought to ensure public access to lawsuits in this district for years. In 2016, EFF intervened in another patent case in this very district, arguing that the heavy sealing by a patent owner called Blue Spike violated the public’s First Amendment and common law rights. A judge ordered the case unsealed.

As Entropic shows, however, parties still believe they can shut down the public’s access to presumptively public legal disputes. This secrecy has to stop. That’s why EFF, represented by the Science, Health & Information Clinic at Columbia Law School, filed a motion today seeking to intervene in the case and unseal a variety of legal briefs and evidence submitted in the case. EFF’s motion argues that the legal issues in the case and their potential implications for the DOCSIS standard are a matter of public concern and asks the district court judge hearing the case to provide greater public access.

Protective Orders Cannot Override The Public’s First Amendment Rights

As EFF’s motion describes, the parties appear to have agreed to keep much of their filings secret via what is known as a protective order. These court orders are common in litigation and prevent the parties from disclosing information that they obtain from one another during the fact-gathering phase of a case. Importantly, protective orders set the rules for information exchanged between the parties, not what is filed on a public court docket.

The parties in Entropic, however, are claiming that the protective order permits them to keep secret both legal arguments made in briefs filed with the court as well as evidence submitted with those filings. EFF’s motion argues that this contention is incorrect as a matter of law because the parties cannot use their agreement to abrogate the public’s First Amendment and common law rights to access court records. More generally, relying on protective orders to limit public access is problematic because parties in litigation often have little interest or incentive to make their filings public.

Unfortunately, parties in patent litigation too often seek to seal a variety of information that should be public. EFF continues to push back on these claims. In addition to our work in Texas, we have also intervened in a California patent case, where we also won an important transparency ruling. The court in that case prevented Uniloc, a company that had filed hundreds of patent lawsuits, from keeping the public in the dark as to its licensing activities.

That is why part of EFF’s motion asks the court to clarify that parties litigating in the Texas district court cannot rely on a protective order for secrecy and that they must instead seek permission from the court and justify any claim that material should be filed under seal.

On top of clarifying that the parties’ protective orders cannot frustrate the public’s right to access federal court records, we hope the motion in Entropic helps shed light on the claims and defenses at issue in this case, which are themselves a matter of public concern. The DOCSIS standard is used in virtually all cable internet modems around the world, so the claims made by Entropic may have broader consequences for anyone who connects to the internet via a cable modem.

It’s also impossible to tell if Entropic might want to sue more cable modem makers. So far, Entropic has sued five big cable modem vendors—Charter, Cox, Comcast, DISH TV, and DirecTV—in more than a dozen separate cases. EFF is hopeful that the records will shed light on how broadly Entropic believes its patents can reach cable modem technology.

EFF is extremely grateful that Columbia Law School’s Science, Health & Information Clinic could represent us in this case. We especially thank the student attorneys who worked on the filing, including Sean Hong, Gloria Yi, Hiba Ismail, and Stephanie Lim, and the clinic’s director, Christopher Morten.

The U.S. Senate is moving forward with two bills that would enrich patent trolls, patent system insiders, and a few large companies that rely on flimsy patents, at the expense of everyone else. 

One bill, the Patent Eligibility Restoration Act (PERA) would bring back some of the worst software patents we’ve seen, and even re-introduce types of patents on human genes that were banned years ago. Meanwhile, a similar group of senators is trying to push forward the PREVAIL Act (S. 2220), which would shut out most of the public from even petitioning the government to reconsider wrongly granted patents. 

Take Action

Tell Congress: No New Bills For Patent Trolls

Patent trolls are companies that don’t focus on making products or selling services. Instead, they collect patents, then use them to threaten or sue other companies and individuals. They’re not a niche problem; patent trolls filed the majority of patent lawsuits last year and for all the years in which we have good data. In the tech sector, they file more than 80% of the lawsuits. These do-nothing companies continue to be vigorous users of the patent system, and they’ll be the big winners under the two bills the U.S. Senate is considering pushing forward. 

Don’t Bring Back “Do It On A Computer” Patents 

The Patent Eligibility Restoration Act, or PERA, would overturn key legal precedents that we all rely on to kick the worst-of-the-worst patents out of the system. PERA would throw out a landmark Supreme Court ruling called the Alice v. CLS Bank case, which made it clear that patents can’t just claim basic business or cultural processes by adding generic computer language. 

The Alice rules are what—finally—allowed courts to throw out the most ridiculous “do it on a computer” software patents at an early stage. Under the Alice test, courts threw out patents on “matchmaking”, online picture menus, scavenger hunts, and online photo contests. 

The rules under Alice are clear, fair, and they work. It hasn’t stopped patent trolling, because there are so many patent owners willing to ask for nuisance-value settlements that are far below the cost of legal defense. It’s not perfect, and it hasn’t ended patent trolling. But Alice has done a good job of saving everyday internet users from some of the worst patent claims. 

PERA would allow patents like the outrageous one brought forward in the Alice v. CLS Bank case, which claimed the idea of having a third party clear financial transactions—but on a computer. A patent on ordering restaurant food through a mobile phone, which was used to sue more than 100 restaurants, hotels, and fast-food chains before it was finally thrown out under the Alice rules, could survive if PERA becomes law. 

Don’t Bring Back Patents On Human Genes 

PERA goes further than software. It would also overturn a Supreme Court rule that prevents patents from being granted on naturally occurring human genes. For almost 30 years, some biotech and pharmaceutical companies used a cynical argument to patent genes and monopolize diagnostic tests that analyzed them. That let the patent owners run up the costs on tests like the BRCA genes, which are predictive of ovarian and breast cancers. When the Supreme Court disallowed patents on human genes found in nature, the prices of those tests plummeted. 

Patenting naturally occurring human genes is a horrific practice and the Supreme Court was right to ban it. The fact that PERA sponsors want to bring back these patents is unconscionable. 

Allowing extensive patenting of genetic information will also harm future health innovations, by blocking competition from those who may offer more affordable tests and treatments. It could affect our response to future pandemics. Imagine if the first lab to sequence the COVID-19 genome filed for patent protection, and went on to threaten other labs that seek to create tests with patent infringement. As an ACLU attorney who litigated against the BRCA gene patents has pointed out, this scenario is not fantastical if a bill like PERA were to advance. 

Take Action

Tell Congress To Reject PERA and PREVAIL

Don’t Shut Down The Public’s Right To Challenge Patents

The PREVAIL Act would bar most people from petitioning the U.S. Patent and Trademark Office (USPTO) to revoke patents that never should have been granted in the first place. 

The U.S. Patent and Trademark Office (USPTO) issues hundreds of thousands of patents every year, with less than 20 hours, on average, being devoted to examining each patent. Mistakes happen. 

That’s why Congress created a process for the public to ask the USPTO to double-check certain patents, to make sure they were not wrongly granted. This process, called inter partes review or IPR, is still expensive and difficult, but faster and cheaper than federal courts, where litigating a patent through a jury trial can cost millions of dollars. IPR has allowed the cancellation of thousands of patent claims that never should have been issued in the first place. 

The PREVAIL Act will limit access to the IPR process to only people and companies that have been directly threatened or sued over a patent. No one else will have standing to even file a petition. That means that EFF, other non-profits, and membership-based patent defense companies won’t be able to access the IPR process to protect the public. 

EFF used the IPR process back in 2013, when thousands of our supporters chipped in to raise more than $80,000 to fight against a patent that claimed to cover all podcasts. We won’t be able to do that if PREVAIL passes. 

And EFF isn’t the only non-profit to use IPRs to protect users and developers. The Linux Foundation, for instance, funds an “open source zone” that uses IPR to knock out patents that may be used to sue open source projects. Dozens of lawsuits are filed each year against open source projects, the majority of them brought by patent trolls. 

IPR is already too expensive and limited; Congress should be eliminating barriers to challenging bad patents, not raising more.

Congress Should Work For the Public, Not For Patent Trolls

The Senators pushing this agenda have chosen willful ignorance of the patent troll problem. The facts remain clear: the majority of patent lawsuits are brought by patent trolls. In the tech sector, it’s more than 80%. These numbers may be low considering threat letters from patent trolls, which don’t become visible in the public record. 

These patent lawsuits don’t have much to do with what most people think of when they think about “inventors” or inventions. They’re brought by companies that have no business beyond making patent threats. 

The Alice rules and IPR system, along with other important reforms, have weakened the power of these patent trolls. Patent trolls that used to receive regular multi-million dollar paydays have seen their incomes shrink (but not disappear). Some trolls, like Shipping and Transit LLC finally wound up operations after being hit with sanctions (more than 500 lawsuits later). Trolls like IP Edge, now being investigated by a federal judge after claiming its true “owners” included a Texas food truck owner who turned out to be, essentially, a decoy. 

There’s big money behind bringing back the patent troll business, as well as a few huge tech and pharma companies that prefer to use unjustified monopolies rather than competing fairly. Two former Federal Circuit judges, two former Directors of the U.S. Patent and Trademark Office, and many other well-placed patent insiders are all telling Congress that Alice should be overturned and patent trolls should be allowed to run amok. We can’t let that happen. 

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Tell Congress: Don't Work For Patent Trolls

At EFF, we believe that all the rights we have in the offline world–to speak freely, create culture, play games, build things and do business–must hold up in the digital world, as well. 

EFF’s longstanding project of fighting for a more balanced, just patent system has always borne free expression in mind. And patent trolls, who simply use intellectual property (IP) rights to extract money from others, continue to be a barrier to people who want to freely innovate, or even just use technology. 

Defending IPR 

The inter partes review (IPR) process that Congress created about a decade ago is far from perfect, and we’ve supported a few ideas that would make it stronger. But overall, IPR has been a big step forward for limiting the damage of wrongly granted patents. Thousands of patent claims have been canceled through this process, which uses specialized administrative judges and is considerably faster and less expensive than federal courts. 

And IPR does no harm to legitimate patent holders. In fact, it only affects a tiny proportion of patents at all. In fiscal year 2023, there were 392 patents that were partially invalidated, and 133 patents that were fully invalidated. That’s out of a universe of an estimated 3.8 million “live” patents, according to the U.S. Patent and Trademark Office’s (USPTO) own data. 

Patent examiners have less than 20 hours, on average, to go through the entire review process for a particular patent application. The process ends with the patent applicant getting a limited monopoly from the government–a monopoly right that’s now given out more than 300,000 times per year. It only makes sense to have some type of post-grant review system to challenge the worst patents at the patent office. 

Despite this, patent trolls and other large, aggressive patent holders are determined to roll back the IPR process. This year, they lobbied the USPTO to begin a process that would allow wrongheaded rule changes that would severely threaten access to the IPR process. 

EFF, allied organizations, and tens of thousands of individuals wrote to the U.S. Patent Office opposing the proposed rules, and insisting that patent challenges should remain open to the public. 

We’re also opposing an even more extreme set of rule changes to IPR that has been unfortunately put forward by some key Senators. The PREVAIL Act would sharply limit IPR to only the immediately affected parties, and bar groups like EFF from accessing IPR at all. (A crowdfunded IPR process is how we shut down the dangerous “podcasting” patent.) 

Defending Alice

The Supreme Court’s 2014 decision in Alice v. CLS Bank barred patents that were nothing more than abstract ideas with computer jargon added in. Using the Alice test, federal courts have kicked out a rogue’s gallery of hundreds of the worst patents, including patents claiming “matchmaking”, online picture menus, scavenger hunts, and online photo contests. 

Dozens of individuals and small businesses have been saved by the Alice precedent, which has done a decent job of stopping the worst computer patents from surviving–at least when a defendant can afford to litigate the case. 

Unfortunately, certain trade groups keep pushing to roll back the Alice framework. For the second year in a row, we saw the introduction of a bill called the Patent Eligibility Restoration Act. This proposal would reverse course not only on the Alice rule, but also authorize the patenting of human genes that currently cannot be patented thanks to another Supreme Court case, AMP v. Myriad. It would “restore” the absolute worst patents on computer technology, and on human genes. 

We also called out the U.S. Solicitor General when that office wrote a shocking brief siding with a patent troll, suggesting that the Supreme Court re-visit Alice. 

The Alice precedent protects everyday internet users. We opposed the Solicitor General when she came out against users, and we’ll continue to strongly oppose PERA. 

Until our patent laws get the kind of wholesale change we have advocated for, profiteers and scam artists will continue to claim they “own” various types of basic internet use. That myth is wrong, it hurts innovation, and it hurts free speech. With your help, EFF remains a bulwark against this type of patent abuse.

This blog is part of our Year in Review series. Read other articles about the fight for digital rights in 2023.

The U.S. Senate Subcommittee on Intellectual Property will debate a bill this week that would dramatically limit the public’s right to challenge bad granted patents. The PREVAIL Act, S. 2220 would bar most people from petitioning the U.S. Patent and Trademark Office (USPTO) to revoke patents that never should have been granted in the first place. 

If the bill passes, it would be a giant gift to patent trolls, who will be able to greatly increase the extortionate toll they demand from small businesses, software developers, and everyday internet users. EFF opposes the bill, and we’re reaching out to Congress to let them know they should stand with technology makers and users—not patent trolls. 

The PREVAIL Bill Will Ban Most People From Challenging Bad Patents 

Every year, hundreds of patent lawsuits are filed over everyday internet activities–“inventions” like watching ads (online), showing picture menus (online), sharing sports data (online), selling binders or organic produce (online), or clocking in to work (online). 

The patents are usually controlled by “patent assertion entities,” also called patent trolls, which don’t actually do business or use the ideas themselves. 

There are two main ways of fighting back against these types of bogus patents. First, they can be invalidated in federal court, which can cost millions of dollars. Second, they can be challenged at the U.S. Patent and Trademark Office, usually in a process called an inter partes review, or IPR. The IPR process is also expensive and difficult, but this quasi-judicial process is much faster and cheaper than district courts. IPR has allowed the cancellation of thousands of patent claims that never should have been issued in the first place. 

The PREVAIL Act will limit access to the IPR process to only people and companies that have been directly threatened or sued over a patent. No one else will have standing to even file a petition. That means that EFF, other non-profits, and membership-based patent defense companies like Unified Patents won’t be able to access the IPR process at all. 

EFF used the IPR process back in 2013, when thousands of our supporters chipped in to raise more than $80,000 to fight against a patent that claimed to cover all podcasts. EFF was able to present prior art (earlier technology), and the judges at the Patent Office agreed that the so-called “podcasting patent,” which belonged to a patent troll called Personal Audio LLC, should never have been granted. The patent was knocked out and although the patent owner appealed all the way to the Supreme Court, our win was upheld at every stage. 

We’re not the only non-profit to use IPRs to protect users and developers. The Linux Foundation, for instance, funds an “open source zone” that uses IPR to knock out patents that may be used to sue open source projects. Hundreds of patents per year are litigated against open source projects, the great majority of them being owned by patent trolls. 

Challenges Matter Because Most Software Patents Were Wrongly Granted

Patents are a government-granted monopoly that lasts 20 years. The owners of those monopoly rights often want payment from those who use the method or system they claim to “own.” These are vast and broad claims–particularly the ones used by patent trolls, which will sue dozens of companies that have very different ways of doing things. 

When a patent troll comes along like Lodsys, which threatened hundreds of independent app developers over online payment technology, software makers shouldn’t have to wait until they get a threat letter in the mail to fight back. What’s more, funding defensive measures like IPRs through crowdfunding or membership-based systems are critical to making them accessible to everyday people. 

The government gives out software monopolies in the name of spurring innovation. But the Patent Office gets it wrong very, very often. Roughly half of patents litigated to judgment are found invalid (even though the legal standard heavily favors issued patents), and one study found the most heavily-litigated patents win in court only 11% of the time. 

There’s a growing body of evidence that patents don’t work to spur software innovation, and in fact do harm. The least we should be allowed is the right to bring evidence forward to challenge the most abused monopoly rights. 

The PREVAIL Act Tilts The Table In Favor Of Trolls At Every Step 

The bill tweaks the patent challenge system in other ways too, nearly all of which favor patent trolls and a few large patent-owners. 

First, the PREVAIL Act greatly raises the standard of evidence needed to invalidate a patent. If it passes, the Patent Trial and Appeal Board will presume that the patent claims are valid unless the challengers carry a heavy burden to show otherwise. Right now, the legal standards for inter partes review are roughly aligned with the standards for issuance of proposed patent claims. That alignment is what makes IPR a true opportunity for the PTO to reconsider the issuance of patent claims. 

Second, the bill would require parties that file IPR challenges to give up their right to fight in federal court. This doesn’t make any sense. Certain arguments, like arguing that a patent is abstract and ineligible under the Alice precedent, can only be made in district court. Choosing to present prior art arguments at the Patent Office shouldn’t bar someone who has been targeted by a patent troll from being able to properly defend themselves in court. Ultimately, it’s only a judge or jury that can decide a patent has been infringed—and award damages. Anyone accused of patent infringement must have all defenses available to them when they face such a proceeding. 

Third, when patents get invalidated, PREVAIL allows patent owners to simply add new claims that avoid the issues presented before the court. The owners get to do this with the benefit of years of hindsight, and new information about what real innovators have found to be successful in the market. Combined with the waiver of the ability to later challenge validity in court, this is clearly a raw deal for the public and anyone on the receiving end of a patent threat.

Finally, the bill gives the USPTO Director the power to throw out petitions in cases where more than one petition challenges the same patent. But it makes perfect sense for there to be multiple challenges over the most controversial, heavily litigated patents. The same patent or group of patents is often used to threaten hundreds–or even thousands–of small businesses. There shouldn’t be a race to the door where only the first challenger (who might not be the best challenger) gets their case heard. 

But that’s exactly what will happen if PREVAIL passes. Even a patent that’s been used dozens of times will only have to face one challenger at the USPTO, even if the two challengers bring forth very different arguments and evidence. Given that there are so few limitations on who patent owners can threaten and sue, it’s unfair to place harsh limits on the comparatively few people or companies that have the desire, and the resources, to fight back against wrongly granted patents. 

Congress Should Allow More Challenges to U.S. Patents, Not Fewer 

The PREVAIL Act proceeds from a misguided, evidence-free belief system that attributes innovation and economic success to government idea-monopolies. The evidence is growing that the U.S. software industry thrives in spite of software patents, not because of them. 

There are useful ways we could change the IPR system. In 2021, EFF supported a bill brought by then-Senator Patrick Leahy brought forward a bill that would have updated the IPR system and closed four loopholes in the system. Importantly, that bill expanded access to IPR–it didn’t shrink it. 

In fact, the public benefits from challenging bad patents. We could go even further in expanding patent challenges, and it would be to the public’s benefit. For instance, we could allow patent challengers to explain when a patent shouldn’t have been issued because it claims abstract ideas, which aren’t patentable per Section 101 of the Patent Act. Those arguments currently aren’t allowed during IPR proceedings. 

The forces behind this bill represent patent trolls and other large-scale patent enforcers. In the end, the IPR process has benefited the public, but it’s been a net loss for a small group of people and companies that have made a lot of money from asserting patent threats. That’s why we’ve seen continuous efforts to destroy the IPR process, including misguided court challenges and pushing harmful rule changes at USPTO to limit its effects. 

The PREVAIL Act will do far more harm than good, and we’ll be calling on lawmakers in Congress to oppose this bill. 

Landmark Technology’s U.S. Patent No. 7,010,508, and its predecessor, are very likely two of the most-abused patents in U.S. history. These patents, under two different owners, have been used to threaten thousands of small businesses since 2001. 

In just one 18-month period, the ‘508 patent was the subject of more than 1,800 patent demand letters sent to more than 1,100 different businesses. All of these businesses were told to pay up—typically $65,000—for using basic e-commerce technology like home pages, customer login pages, and product-ordering pages. 

Now the ‘508 patent’s threat is likely dead, thanks to a recent ruling by a North Carolina federal judge in a case that started after Landmark threatened the website Binders.com for selling binders (but, you know, on the Internet). NAPCO, the company that owns Binders.com, responded to Landmark’s $65,000 demand by challenging Landmark’s patent in court. After more than two years of litigation, the judge issued a ruling stating that the ‘508 patent’s disputed claim is invalid because it is ‘indefinite.’ Specifically, it purported to cover network technology that could perform various functions but failed to describe a way those functions could be achieved. While not at issue here, similar terms in the patents’ other independent claims are likely invalid for the same reasons.

“[T]he company broadly and aggressively misuses the patent claims, targeting virtually any small business with a website, seemingly at random,” is how the Washington State Attorney General describes Landmark’s business model. 

The Washington State Attorney General’s office sued Landmark in 2021, claiming its aggressive patent trolling violated state consumer protection laws. That case has been removed to federal court and is ongoing. 

We hope to never see the ‘508 patent—or any patent related to it—in a threat letter again. Landmark’s long, punishing campaign against small businesses who simply used basic online tools is, hopefully, over. It’s a good moment to take stock of how we got here. Unfortunately, many elements of our broken patent system continue to encourage behavior like Landmark’s. 

Courts Let “Functional Claiming” In Software Patents Get Out Of Control

The ‘508 patent involves “means-plus-function” claims. This is a type of patent that allows for broad, functional claiming. As explained by the Federal Circuit, the nation’s top patent court, this type of patent allows “patentees to express a claim limitation by reciting a function to be performed rather than by reciting structure for performing that function.” 

The Federal Circuit, the nation's top patent court, has explicitly allowed this type of patent claim, and they are most used in software patents. Allowing broad “functional” claiming is part of what’s led software patents to become the disaster they have for developers and ordinary internet users. 

As patent scholar Mark Lemley explained in a 2012 research paper on functional claiming, it’s similar to allowing a pharmaceutical inventor to claim “an arrangement of atoms that cures cancer,” and assert their patent against any chemical, in any form, that achieves the purpose of curing cancer. “Indeed, the whole idea seems ludicrous,” he wrote. 

Lemley’s paper goes through the history of functional claiming, which has had ups and downs throughout American history. The idea of a “means-plus-function” claim is that functional claiming is allowed, as long as it’s connected to a “structure” described in the specification of the patent. 

Functional claiming has taken off in software patents. The Federal Circuit established rules that disclosing an “algorithm” would constitute the type of structure that could allow a patent. But the court set the bar for what an “algorithm” is to be shockingly low. You don’t have to send in a mathematical formula at all; prose or even a flow chart is sufficient. 

Would-be patent owners have definitely taken advantage of the idea that a flow chart can constitute an “algorithm.” It’s allowed patent trolls to get patents on things like using mathematical proofs, using a lyrics website, and clocking in to work.  

The law on software patents is so bad it requires real reforms. In our Defend Innovation whitepaper discussing patent reform ideas, EFF proposed installing strong limits on functional claiming and requiring those who want software patents to provide running code for each patent claim. Those are still good and necessary ideas. 

The ‘508 Patent’s “Algorithm”

The ‘508 patent’s supposed “algorithm” is truly a nothingburger. Its primary claim just describes a bunch of things computers do, strung together. Yet Landmark’s lawyers argued that the patent contained a “detailed six-step algorithm” with the following steps. (The “station” here is a general-purpose computer.)

1. The station reading textual data from memory; 
2. The station reading graphical data from memory;
3. The station accepting user input; 
4. Displaying, after accepting user input, textual data along with mutually-related graphical data describing more than one transaction option; 
5. Analyzing data provided by the user of the station or data received from a remote location; 
6. Depending on the result of the analysis, retrieving additional data from mass memory. 

In other words, getting data and analyzing it. 

Of course, “processing” or “accepting” data and “analyzing” it are simply generic verbs that don’t tell you how to do anything. That was exhaustively pointed out in the 66-page order finding Landmark’s patent claim to be invalid. Landmark’s citations “contain no explanation of how that data is ‘analyzed’ or how one would program the ‘processor’ to conduct such processing,” explained District Judge Thomas Schroeder. 

Landmark History 

At some point in 2019, Landmark Technology stopped filing lawsuits, and a new entity called “Landmark Technology A” began using the ‘508 patent, again targeting small businesses. Litigation has revealed that while inventor Lawrence Lockwood owned the original entity, Landmark Technology A—the newer company that has been sued by the state of Washington— is wholly owned by an IP consultant named Raymond Mercado. 

The Washington State Attorney General was able to identify more than 1,800 businesses threatened by Mercado, but the number may be much higher. And while this stupid patent was filed in 1995, it is related to an even earlier stupid patent, which won our Stupid Patent of the Month award a few years ago, for terrorizing even more small businesses. 

Lawrence Lockwood used these patents to terrorize hundreds of small businesses, demanding that any sized e-commerce operation: bakers, brownie shops, an organic farm, and many others, all pay him a royalty payment for making basic use of the internet economy. 

Adding insult to injury is the fact that there’s no evidence that “inventor” Lawrence Lockwood made any contribution whatsoever to software. Lockwood, a former travel agent, started his long patent trolling career by suing American Airlines for their software system. In that litigation, Lockwood admitted under oath that he had “never, for any length of time, used a personal computer.” When asked what he did for a living, he said that he simply litigated patents, according to a 2003 profile of Lockwood in the Los Angeles Times. 

We’ve lived with ultra-aggressive patent trolls like Landmark and its predecessor, PanIP, for more than two decades now. Congress needs to think about how to reel them in and must reject proposed bills that would actually help trolls get more broad patents, and ruin our existing legal defenses against them. 

• NAPCO v. Landmark Technology A Complaint
• NAPCO v. Landmark Technology A Opinion And Order 

The majority of high-tech patent lawsuits are brought by patent trolls—companies that exist not to provide products or services, but primarily have a business using patents to threaten others’ work. 

Some politicians are proposing to make that bad situation worse. Rather than taking the problem of patent trolling seriously, they want to encourage more bad patents, and make life easier—and more profitable—for the worst patent abusers. 

Take Action

Congress Must Not Bring Back The Worst Computer Patents

The Patent Eligibility Restoration Act, S. 2140, (PERA), sponsored by Senators Thom Tillis (R-NC) and Chris Coons (D-DE) would be a huge gift to patent trolls, a few tech firms that aggressively license patents, and patent lawyers. For everyone else, it will be a huge loss. That’s why we’re opposing it, and asking our supporters to speak out as well. 

Patent trolling is still a huge, multi-billion dollar problem that’s especially painful for small businesses and everyday internet users. But, in the last decade, we’ve made modest progress placing limits on patent trolling. The Supreme Court’s 2014 decision in Alice v. CLS Bank barred patents that were nothing more than abstract ideas with computer jargon added in. Using the Alice test, federal courts have kicked out a rogue’s gallery of hundreds of the worst patents. 

Under Alice’s clear rules, courts threw out ridiculous patents on “matchmaking”, online picture menus, scavenger hunts, and online photo contests. The nation’s top patent court, the Federal Circuit, actually approved a patent on watching an ad online twice before the Alice rules finally made it clear that patents like that cannot be allowed. The patents on “bingo on a computer?” Gone under Alice. Patents on loyalty programs (on a computer)? Gone. Patents on upselling (with a computer)? All gone. 

Alice isn’t perfect, but it has done a good job saving internet users from some of the worst patent claims. At EFF, we have  collected stories of people whose careers, hobbies, or small companies were “Saved by Alice.” It’s hard to believe that anyone would want to invite such awful patents back into our legal system—but that’s exactly what PERA does. 

PERA’s attempt to roll back progress goes beyond computer technology. For almost 30 years, some biotech and pharmaceutical companies actually applied for, and were granted, patents on naturally occuring human genes. As a consequence, companies were able to monopolize diagnostic tests that relied on naturally occurring genes in order to help predict diseases such as breast cancer, making such testing far more expensive. The ACLU teamed up with doctors to confront this horrific practice, and sued. That lawsuit led to a historic victory in 2013 when the Supreme Court disallowed patents on human genes found in nature. 

If PERA passes, it will explicitly overturn that ruling, allowing human genes to be patented once again. 

That’s why we’re going to fight against this bill, just as we fought off a very similar one last year. Put simply: it’s wrong to let anyone patent basic internet use. It hurts innovation, and it hurts free speech. Nor will we stand idly when threatened with patents on the building blocks of human life—a nightmarish concept that should be relegated to sci-fi shows. 

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Some Things Shouldn't Be Patented

This Bill Destroys The Best Legal Defense Against Bad Patents 

It’s critical that Alice allows patents to be thrown out under Section 101 of the patent law, before patent trolls can force their opponents into expensive litigation discovery. This is the most efficient and correct way for courts to throw out patents that never should have been issued in the first place. If the patent can’t pass the test under Alice, it’s really not much of an “invention” at all. 

But the effectiveness of the Alice test has meant that some patent trolls and IP lawyers aren’t making as much money. That’s why they want to insist that other areas of law should be used to knock out bad patents, like the ones requiring patents to be novel and non-obvious. 

This position is willfully blind to the true business model of patent trolling. The patent trolls know their patents are terrible—that’s why they often don’t want them tested in court at all. Many of the worst patent holders, such as Landmark Technology or some Leigh Rothschild entities, make it a point to never even get very far in litigation. The cases rarely get to claim construction (an early step in patent litigation, where a judge decides what the patent claims mean), much less to a full jury trial. Instead, they simply leverage the high cost of litigation. When it’s hard and expensive for defendants to file a motion challenging a patent, the patents often don’t even get properly tested. Then trolling companies get to use the judicial system for harassment, making their settlement demands cheaper than fighting back. For the rare defendant that fights back, they can drop the case. 

This Bill Has No Serious Safeguards

The bill eliminates the Alice test and every other judicial limitation on abstract patents that has formed over the decades. After ripping down this somewhat effective gate on the worst patents, it replaces it with a safeguard that’s nearly useless. 

On page 4 of the bill, it states that: 

“performing dance moves, offering marriage proposals, and the like shall not be eligible for patent coverage, and adding a non-essential reference to a computer by merely stating, for example, ‘‘do it on a computer’’ shall not establish such eligibility.” 

The addition of “do it on a computer” patents is an interesting change to last year’s version of the same bill, since that’s a specific phrase we used to critique the bill in our blog post last year. 

After Alice, EFF and others rightly celebrated courts’ ability to knock out most “do it on a computer” patents. But “do it on a computer” isn’t language that actually gets used in patents; it’s a description of a whole style of patent. And this bill specifically allows for such patents. It states that any process that “cannot be practically performed without the use of a machine (including a computer)” will be eligible for a patent. 

This language would mean that many of the most ridiculous patents that have been knocked out under Alice in the past decade will survive. They all describe the use of processors, “communications modules” and other jargon that requires computers. That means patents on an online photo contest, or displaying an object online, or tracking packages, or making an online menu—could once again become part of patent troll portfolios. All will be more effective at extorting everyday people and real innovators making actual products. 

“To See Your Own Blood, Your Own Genes”

From the 1980s until the 2013 Myriad decision, the U.S. Patent and Trademark Office granted patents on human genomic sequences. If researchers “isolated” the gene—a necessary part of analysis—they would then get a patent that described isolating, or purified, as a human process, and insist they weren’t getting a patent on the natural world itself.

But this concept of patenting an “isolated” gene was simply a word game, and a distinction without a difference. With the genetic patent in hand, the patent-holder could demand royalty payments from any kind of test or treatment involving that gene. And that’s exactly what Myriad Genetic did when they patented the BRCA1 and BRCA2 gene sequences, which are important indicators for the prevalence of breast or ovarian cancer. 

Myriad’s patents significantly increased the cost of those tests to U.S. patients. The company even sent some doctors cease and desist letters, saying the doctors could not perform simple tests on their own patients—even looking at the gene sequences without Myriad’s permission would constitute patent infringement. 

This behavior caused pathologists, scientists, and patients to band together with ACLU lawyers and challenge Myriad’s patents. They litigated all the way to the Supreme Court, and won. “A naturally occurring DNA segment is a product of nature and not patent eligible merely because it has been isolated,” the Supreme Court stated in Association for Molecular Pathology v. Myriad Genetics. 

A practice like granting and enforcing patents on human genes should truly be left in the dustbin of history. It’s shocking that pro-patent lobbyists have convinced these Senators to introduce legislation seeking to reinstate such patents. Last month, the President of the College of American Pathologists published an op-ed reminding lawmakers and the public about the danger of patenting the human genome, calling gene patents “dangerous to the public welfare.”  

As Lisbeth Ceriani, a breast cancer survivor and a plaintiff in the Myriad case said, “It’s a basic human right to see your own blood, your own genes.”

We can’t allow patents that allow internet users to be extorted for using the internet to express themselves, or do business. And we won’t allow our bodies to be patented. Tell Congress this bill is going nowhere. 

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Reject Human Gene Patents