Good News: US Patent Office Now Rejecting A Lot More Software Patents

from the good-news-all-around dept

The impact of the Supreme Court's ruling in Alice v. CLS Bank continues to reverberate around the industry. We've already noted that courts have been rapidly invalidating a bunch of patents, and that related lawsuits appear to be dropping rapidly as well. And, now, a new analysis from a (pro-patent) law firm suggests that the US Patent Office is rejecting a lot more software patents as well.

Following the ruling, the US Patent Office issued new rules for examiners, and even withdrew some notices of allowances. And it appears all of this is having an impact. The link above is Vox summarizing some findings from patent lawyer Kate Gaudry of law firm Kilpatrick Townsend, who argues that the data suggests the USPTO is rejecting software patents at a much higher rate. In short, back in January, art units at the USPTO rejected applications based on Section 101 of US Patent law only about 24% of the time. Section 101 covers what is patent eligible, and was the key part in the decision in the Alice case. Effectively, in the Alice ruling, the Supreme Court said that just doing something on a generic computer wasn't patent eligible under Section 101. Following that ruling, in July, the rejection rate jumped to 78%. Yes, from 24% in January to 78% in June. That's massive. The data also shows that units that focus on "other kinds of technology saw little change in their rejection rates."

As the Vox story notes, Gaudry is freaked out that this will destroy innovation. "Without incentive, say goodbye to the quick pace of innovation we enjoy." But that's ridiculous, as anyone who actually works in software innovation knows. Patents have long been a drag on innovation in the field, setting up minefields and tollbooths that have worked to limit the pace of innovation, not speed it along. The idea that without patents there are no incentives is pure ignorance. The incentive is building a useful tool or service and being able to monetize it in a variety of ways. The idea that competition destroys incentives is simply ignorant of the history of innovation and basic economics.

The rapid decline in software patents is a huge boon for innovation.
Hide this

Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.

Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.

While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.

–The Techdirt Team

Filed Under: business method patents, patents, rejections, software patents, uspto
Companies: alice, cls bank


Reader Comments

Subscribe: RSS

View by: Time | Thread


  1. identicon
    Anonymous Coward, 29 Oct 2014 @ 12:12pm

    Does this mean many eBay patents are invalid?

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here



Subscribe to the Techdirt Daily newsletter




Comment Options:

  • Use markdown. Use plain text.
  • Remember name/email/url (set a cookie)

Follow Techdirt
Special Affiliate Offer

Essential Reading
Techdirt Insider Chat
Recent Stories

This site, like most other sites on the web, uses cookies. For more information, see our privacy policy. Got it
Close

Email This

This feature is only available to registered users. Register or sign in to use it.