[HN Gopher] Apple fails to overturn VirnetX patent verdict, coul...
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       Apple fails to overturn VirnetX patent verdict, could owe over
       $1.1B
        
       Author : clairity
       Score  : 49 points
       Date   : 2021-01-15 21:48 UTC (1 hours ago)
        
 (HTM) web link (www.reuters.com)
 (TXT) w3m dump (www.reuters.com)
        
       | [deleted]
        
       | akersten wrote:
       | Of course it's the Eastern District of Texas.
       | 
       | The intention of the patent system was to promote the useful
       | proliferation of the sciences and arts. Billion-dollar verdicts
       | to companies that do not even produce a marketable product are
       | the antithesis of that intention. It is not clear to me how to
       | solve this problem aside from tearing down the patent system and
       | never rebuilding it. Gone are the days when an inventor in their
       | garage is prevented from the exploitation of a large company by
       | virtue of a patent they filed for their invention. Now, holding
       | companies exist to absorb patents that describe the most abstract
       | and nebulous ideas in order to leech the maximal value from real
       | companies, and courts like this enable them.
       | 
       | End the patent system. (I'd be happy if we even just got rid of
       | software patents on the existing basis that math cannot be
       | patented, but while I'm on my soapbox, might as well go all the
       | way.)
        
         | joshspankit wrote:
         | Apple had to set up Facetime proxy servers because a company
         | had a patent on what was essentially "direct communication
         | between two devices on the internet".
         | 
         | Amazon's patent on "one-click" buying.
         | 
         | Just utter nonsense that any company would be allowed to hold
         | such a patent.
         | 
         |  _Apologies: I'm mobile rn and would otherwise research the
         | actual details, but it really gets me riled up and I had to
         | comment without citations._
        
         | loceng wrote:
         | I've liked the idea of an exponential cost to holding a patent
         | - as in, the cost to maintain it doubles every year. If you're
         | producing a product that's highly successful, profitable, then
         | you'll be able to afford to keep the patent for more years. If
         | you're a patent troll not producing anything, it's going to get
         | expensive quick.
        
           | joshspankit wrote:
           | From what we've seen from the Panama papers and huge mergers,
           | I feel like this approach would actually be more harmful as
           | those with _really_ deep pockets would then have a stronger
           | incentive to extort people "violating" the patents.
        
           | tehjoker wrote:
           | That changes the game only slightly. Large companies will
           | then be able to hold out over smaller ones far larger
           | reentrenching monopolist behavior. Basically, market
           | mechanisms always favor the rich. You need a fair system not
           | one based on money assuming you even think patents are
           | defensible.
        
           | akersten wrote:
           | If that could be implemented fairly (scaling costs based on
           | total revenue so small-time businesses aren't locked out of
           | the system, without giving non-producers/patent trolls a free
           | $0 patent) then that seems like a good compromise.
        
           | erk__ wrote:
           | But this will not solve anything else about patents, there
           | will be less reason to license them and such as the amount of
           | time they can run for without any special income through the
           | patent will be much less. Thus giving companies and inventors
           | with a large capital a larger one up on the people that
           | patents are also supposed to protect.
        
         | bhupy wrote:
         | Aren't software patents already all but abolished?
        
           | akersten wrote:
           | That would be (wonderful!) news to me. Not in the US, as far
           | as I know, they're alive and well.
        
           | monocasa wrote:
           | Alice Corp forbids patents for a normal, noncomputer action
           | just taken on a computer (calculate interest, but on a
           | computer!), but allows software patents otherwise.
        
         | lotsofpulp wrote:
         | The entire country should be united against the eastern
         | district of Texas. It's insane how much money and opportunity
         | those idiots have cost the entire populace.
        
       | thaumasiotes wrote:
       | > In a decision issued on Friday, U.S. District Judge Robert
       | Schroeder in Tyler, Texas rejected Apple's request for a new
       | trial and several other claims.
       | 
       | > These included that [...] jurors should have been told the U.S.
       | Patent and Trademark Office had deemed VirnetX's claims
       | "unpatentable."
       | 
       | This article really should have elaborated on _why_ jurors didn
       | 't need to be told that they were (apparently) awarding damages
       | for infringement of unpatentable claims. Or really why, if the
       | claims weren't patentable, the case wasn't thrown out of court.
       | 
       | Or perhaps the claims were patentable, and the article needed to
       | elaborate on exactly what Apple was trying to describe there.
       | 
       | Either way, this is absolutely worthless coverage.
        
       | BugsJustFindMe wrote:
       | > _In a decision issued on Friday, U.S. District Judge Robert
       | Schroeder in Tyler, Texas rejected Apple's request ... that ...
       | jurors should have been told the U.S. Patent and Trademark Office
       | had deemed VirnetX's claims "unpatentable."_
       | 
       | If the USPTO deemed them unpatentable, where did the patents come
       | from?
        
         | mikeyouse wrote:
         | Looks like it's a concurrent case that Apple is pursuing, so
         | VirnetX were granted the patents and sued Apple on that behalf.
         | Apple is fighting this patent infringement lawsuit, and at the
         | same time, seeking to invalidate the patents in a separate case
         | in front of the US PTO:
         | 
         | > _Apple contends that it is entitled to a new trial because
         | the Court excluded evidence from parallel PTO proceedings.
         | Docket No. 775 at 39. Apple suggests that the fact that the PTO
         | has issued final written decisions finding each claim
         | unpatentable over the prior art is relevant to damages._
         | 
         | > _The Court is not persuaded that exclusion of the PTO
         | proceedings warrants a new trial. VirnetX's appeals of those
         | proceedings are ongoing, and none of the asserted claims has
         | been cancelled. It is particularly unclear what probative value
         | the PTO proceedings have in light of the fact that invalidity
         | is not an issue in this case._
         | 
         | > _To the extent Apple argues the decisions are relevant to
         | damages, the relevance of the decisions is minimal because a
         | number of the "decisions" cited in Apple's offer of proof2 on
         | PTO proceedings were issued afterthe parties' alleged
         | hypothetical negotiation date of September 2013. Compare Docket
         | No. 721 at 18 ("If infringement is found, the date of the
         | hypothetical negotiation would be September 2013, when the
         | redesigned versions of VPN on Demand and FaceTime were
         | released."), with Docket No. 692 (Apple's offer of proof)._
         | 
         | > _Apple suggests that the evidence would have been relevant to
         | the utility and advantages of the patented property over old
         | modes or devices. Id. But, contrary to its assertions, Apple
         | was not precluded from introducing evidence that the claimed
         | invention "has no utility or advantages over old modes or
         | devices." Id. The Court only prohibited the use of the PTO
         | proceedings, and Apple was free to present whatever evidence
         | relating to Georgia-Pacific factors 9 and 10 it so chose._
         | 
         | > _Apple is not entitled to a new trial on this basis._
         | 
         | Page 36 here:
         | https://patentlyo.com/media/2018/09/Apple500MLoss.pdf
        
           | monocasa wrote:
           | > It is particularly unclear what probative value the PTO
           | proceedings have in light of the fact that invalidity is not
           | an issue in this case.
           | 
           | How can invalidity possibly not be a factor?
        
       | coolspot wrote:
       | Those are VirnetX US Patents No. 6,502,135 and No. 7,490,151 .
       | 
       | https://patents.google.com/patent/US6502135B1/en
       | 
       | https://patents.google.com/patent/US7490151B2/en
        
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       (page generated 2021-01-15 23:00 UTC)