In a major step in the ongoing war against patent trolls, 50 trade associations, coalitions and public interest groups today sent an open letter to Congress to urge congressional leaders to take action “to address abuses of the legal system by certain patent assertion entities, commonly referred to as patent trolls.” The letter was conceived and organized by the Coalition for Patent Fairness which has been a leading voice in the effort to reform U.S. patent laws.
For months, we’ve written about our opposition of patent trolls and their attempts to extort hundreds of thousands—or even millions—of dollars from companies that actually create value. These patent-powered parasites kill innovation, drain the economy and strip away capital from businesses both large and small.
The patent abuse fight is picking up momentum, and we have new ammunition. Yesterday, the senior Senator from Texas, John Cornyn, introduced the Patent Abuse Reduction Act of 2013 (the “PAR Act”). My home state U.S. Senator has just taken a huge step to solve the patent troll epidemic. This bill is a breath of fresh air in the battle against patent trolls and their brazen abuse of the patent system. The PAR Act is designed to “deter patent litigation abusers without prejudicing the rights of responsible intellectual property holders,” Cornyn said in a statement.
For the past several months, we’ve exposed the flaws in the patent system and how they’re being exploited by opportunistic patent trolls looking to extort a quick buck – or hundreds of thousands of bucks, if you will – from businesses large and small. It’s a drain on innovation, a plague to all of technology and a drag on the economy.
For years Senator Charles Schumer of New York has been a driving force in the battle to abolish low quality business method patents, the type that patent trolls regularly use to attack businesses with vexatious lawsuits. He authored Section 18 of the America Invents Act, which is known as the transitional program for covered business method patents. The purpose of the program is to create an effective and fair post grant review for business method patents used in the “practice, administration, or management” of a financial product or service.
Score one for the good guys. Rackspace and Red Hat just defeated Uniloc, a notorious patent troll. This case never should have been filed. The patent never should have been issued. The ruling is historic because, apparently, it was the first time that a patent suit in the Eastern District of Texas has been dismissed prior to filing an answer in the case, on the grounds that the subject matter of the patent was found to be unpatentable. And was it ever unpatentable.