Winner Winner, Apple Dinner: Federal Circuit Issues Injunction Against Samsung for Patent Infringing Devices

samsung-apple211By Vijay Kumar

Another chapter of the Apple/Samsung cell phone wars was written earlier this month when the Federal Circuit ruled that Apple Inc. should have been granted an injunction against Samsung Electronics Co. devices for certain patent-infringing features. The ruling is significant, not only because of its effect on the two biggest cell phone manufacturers, but also because it will likely have a significant effect on a patentee’s ability to get injunctions granted. Samsung is appealing the decision to a Federal Circuit en banc panel.

The technology at issue dealt with features of mobile phones including spelling correction, linking phone numbers in a document to a dialer, and slide-to-unlock features. This appeal stems from a May 2014 district court decision from the Northern District of California, in which Apple was awarded $120 million in damages, but denied an injunction. Continue reading

A New (Old) Sheriff: The FTC’s Authority on Cybersecurity Affirmed

chainsBy Julie Liu

As we know well from news coverage of hacks and leaked information, consumers and employees take a gamble whenever they give their personal information to a company. Consciously or not, these individuals count on the company’s technological savvy in combination with its data security policies to keep the information safe. While this status has not changed much since businesses first became digitized, regulations are gradually catching up. For the Federal Trade Commission (FTC), cybersecurity has been a top priority in recent years, and it will likely tighten its grip on businesses with inadequate security measures.

Late last month, the U.S. Court of Appeals for the Third Circuit issued its long-awaited ruling in FTC v. Wyndham Worldwide Corporation, a case which reevaluated the FTC’s authority to regulate cybersecurity. Litigation began in 2012 when the FTC sued Wyndham Worldwide, a hotel chain company, for unfair business practices. The FTC alleged that Wyndham’s inadequate data security led to three data breaches at Wyndham hotels in two years. According to the complaint, these breaches compromised more than 619,000 payment card accounts and caused over $10.6 million in fraud loss. Wyndham responded with a motion to dismiss the complaint, arguing that the FTC did not have the authority to bring the suit in the first place. The district court denied the motion last year, and the Third Circuit has now affirmed this order on interlocutory appeal.

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Artificial Nature: Will the astounding become common?

leafBy Robin Hammond

From artificial leaves to digital rodent brains, computer scientists are successfully implementing processes from the natural world. Does the Alice ruling on software patentability provide a glimpse into how these technologies will be treated in the future? In 15 years, will computer-implemented natural processes be patent-ineligible?

The utilization of natural processes in computing is astounding. Recently, researchers in Melbourne developed a solar-power device that is close to simulating photosynthesis. The Energy and Environmental Science journal published these details in an article; in the article, researchers claim “This simple and adaptable system addresses key criteria for the large-scale deployment of an artificial photosynthesis device” to “provide a cheap, clean and renewable source of hydrogen as the ultimately sustainable fuel.” In August, news broke that IBM had created a digital equivalent of a small rodent’s brain, a type of chip with neuro-synaptic architecture, called TrueNorth. Both the chips and subsequent software recreate a brain’s neurons and synapses. The TrueNorth chip is another leap forward for computing through ‘deep learning’. Deep learning operates in two stages: “First, companies … must train a neural network to perform a particular task. If they want to automatically identify cat photos, for instance, they must feed the neural net lots and lots of cat photos. Then, once the model is trained, another neural network must actually execute the task. You provide a photo and the system tells you whether it includes a cat. The TrueNorth, as it exists today, aims to facilitate that second stage.”

It has taken many years, but the courts are finally addressing the realities of software patentability. In Alice, the Supreme Court did an about-face in terms of the validity of business-method and software patents. No longer are ideas or processes patentable because a computer executes them. While the opinion did not itself mention software, it has heralded in a new age of hostility at the U.S. Patent and Trademark Office toward business-method and software patents, with many courts overturning patents under the new standard of Alice.

In 15 years, will natural processes that are merely implemented by computers be novel enough to qualify for patents? Or will the two-step inquiry applied in Alice be similarly interpreted once these processes become commonplace? The analysis under Alice begins with the question: does the invention consist in significant part of a patent-ineligible concept—for example, a law of nature, natural phenomenon or abstract idea? If so, the invention is patent-eligible only if the remaining parts of the invention have an “inventive concept”—one or more elements that ensure a patent on the invention amounts in practice “to significantly more than a patent upon the ineligible concept itself. In Alice, the patents at issue were for computerized escrow. The court decided that the abstract idea of escrow was patent-ineligible and performing escrow on a computer was not sufficient to provide an inventive concept: “A mere instruction to implemen[t an abstract idea] on … a computer … cannot impart patent eligibility.”

Does the shift in the patentability of software patents in Alice foretell the future of the patentability of artificial nature? One could foresee a future where the idea of brain functioning (arguably a natural phenomenon) is in itself not patentable, and the mere implementation of specific neuro-synaptic architecture by a computer would not rise to the level of inventive concept. Or will future courts embrace Judge Rader’s broad interpretation of the applicability of §101? Where natural laws are restricted to “universal constants created, if at all, only by God, Vishnu, or Allah”; “even gravity is not a natural law“; and the slightest bit of labor mixed with nature is property under Lockean reasoning.

Image source: http://maxmania.pl/nauka/syntetyczny-lisc-wytwarzajacy-tlen/.

The Continuing Saga of Cell Phone Tracking

cell phone, blog post

By Kelsey O’Neal

We count on our cell phones to be fast. We hate waiting for a call or a text. Our cell phones constantly emit signals to the closest cell tower. These fast signals instantly gratify us. But as you carry your phone, it creates a mass of data called cell site location information (CSLI). You don’t even have to use your phone; just having it on creates the cell site location information. U.S. federal law is divided on whether the government needs a warrant to get this information. On July 29th, 2015, U.S. District Court Judge Lucy Koh issued an opinion which requires that a government agency get a warrant before it requests 60 days of cell site location information.

Judge Koh wrote that tracking cell phones with historical cell site location information is particularly dangerous because law enforcement can use the cell site information to look into people’s homes and learn detailed information about an individual’s personal life. Judge Koh ruled that the government must obtain a search warrant to access these personal details because: (1) people expect privacy from government intervention when they are at home; (2) people have a higher expectation of privacy when it comes to long-term surveillance, and (3) cell phone location data can reveal a great deal about an individual because everyone turns on their cell phone and carries it with them. Twelve states agree with Judge Koh; six states already have a law that requires the police to get a warrant, and six are trying to get one.

However, not all states or courts agree with Judge Koh. Early this year, an 11th Circuit panel held that the police do NOT have to get a warrant to look at CSLI. Additionally, a 6th Circuit panel in Cincinnati held that you do not have a reasonable expectation of privacy if you accidentally butt-dial, ahem, pocket-dial, somebody. Why? The court compared it to leaving your curtains open; while there is still a privacy interest, it’s not nearly as strong because you are letting people look in your home. It would be simple to protect your privacy by shutting your curtains, or, by password protecting your phone.

It looks like this particular fight could head toward the Supreme Court, and the result could impact all cell phone users. Until that time, you should probably put your phone in airplane mode the next time you rob a bank.

Image source: http://thesceneisdead.com/2013/04/08/edc-vegas-protip-75-do-not-expect-cell-phone-service/.

An Action-Packed Summer for PTAB

uspto_seal_full_colorBy Don Wang

If you spent this past summer looking forward to the most recent Fantastic Four movie, I am deeply sorry for the utter disappointment. However, if you have been following the news of the Patent Trial and Appeal Board (PTAB) instead, this has been a truly great summer! Following the roll-out of the American Invents Act, the United States Patent and Trademark Office (USPTO) started to solicit public comments for a proposed rule change package for trials before the PTAB and has proposed a pilot program to have a single Administrative Patent Judge determine the institution of an Inter Partes Review. Continue reading