The Prior Art

Eben Moglen on Bilski, software patents, and big pharma

This interview is part of a series following the Supreme Court's Bilski decision, which left the laws on what you can get a patent on largely as they are, after a four-justice minority failed to ban "business method" patents.

Columbia Law School professor Eben Moglen heads the Software Freedom Law Center (SFLC) and wrote the group's amicus brief in Kappos v. Bilski. [PDF]

Moglen's position on the subject of software patents—that they should be banned—is, to say the least, outside the mainstream in legal circles. It has, however, garnered support among software developers and other techies, especially those who work in the world of open-source and free software.

Moglen's critique of the patent system extends well beyond the software issues he writes about, however. He suggests, for instance, that the 20-year monopoly granted by a patent is the product of a bygone era. And though he rejects the notion that he is "anti-patent," he says that the patent monopoly grant should be subject to a rigorous cost-benefit analysis, not simply handed out at the "monopoly window" that he believes the current Patent and Trademark Office represents.

The Prior Art interviewed Moglen about his views on the Bilski decision, the future of software patents, and how patents affect innovation.

Q: What's your opinion of the Bilski decision?

The decision is one of those that clearly shows why it has come down on the last day of the term after being argued early. When you see a case like that come down, one of the things that occurs to you is that a majority has fallen apart. The justices agreed about less than they thought.

What's so bad about "business method" patents? Small PR firms "goosed" by a patent on press releases

Those who have read the U.S. Supreme Court’s Bilski decision know that it involved a big "almost" — a four-justice minority that wanted to ban business method patents. While that's an ill-defined term, it's clear that such a ruling would have effectively invalidated many patents already involved in litigation.

Lawsuits asserting business method patents continue to be filed. In Marshall, Texas, a patent that seems to cover the act of distributing a press release online (No. 6,370,535) was used to sue six companies that are in that business; it was filed on Friday June 24—just three days before the Court ruled in Bilski decision that business methods will continue to be patentable. The plaintiff  behind the suit is a strangely named patent-holding company: Gooseberry Natural Resources, LLC.

One defendant targeted by Gooseberry who spoke with The Prior Art, eReleases owner Mickie Kennedy, reacted as many small companies do when hit with such a lawsuit—surprise that a patent claiming to cover what his business does could even exist.

The Post-Bilski landscape: Why some tried, but failed, to ban "business method" patents

It’s not a stretch to say that many members of the patent bar were relieved when the U.S. Supreme Court finally issued its decision in Bilski v. Kappos late last month. Considering that plenty of those lawyers—and the clients they represent—feared an opinion that would severely restrict what kind of technology is worthy of patent protection. As it turns out, those fears were misplaced.

Almost as soon as the decision came down Monday, The Prior Art’s inbox was filling up with e-mails from lawyers and law firm publicists offering expert commentary on what it all meant. (By the end, the number of pitches had hit nearly 40). One e-mail, from Goodwin Procter’s Stephen Schreiner, contained a statement that typified the joyous tone of the patent bar’s broader reaction. Schreiner said the Court had “launched the United States Patent System into the Information Age with the Bilski v. Kappos decision today....Rejecting the chorus from some demanding the Patent System be limited to Industrial Age technology, the Court answered with a flat ‘no,’ finding patents are available for software, business methods, medical diagnostic techniques, and other products of the Information Age.”

But while Justice Anthony Kennedy’s controlling opinion may not do much to change the status quo when it comes to the patent system, the more interesting Bilski story is one of an important "almost"—an "almost" that by all indications was hard-fought.

Indeed, for some folks—including those who hoped the Court would use the case to limit what they see as a plague of spurious patent litigation—this has to be a particularly painful “almost.”

Supreme Court Decides Bilski: Stevens and Allies Try to Ban "Business Method" Patents, but Fail to Get Fifth Vote

In the last batch of opinions to which he will ever contribute, retiring U.S. Supreme Court Justice John Paul Stevens fell one vote shy in his goal of moving methods of doing business outside the scope of the country’s patent system. And he marked the occasion by weighing in with a concurring opinion that reads an awful lot like a dissent.

Ultimately, despite widespread speculation that Stevens would cap his distinguished career by writing the majority opinion in Bilski v. Kappos, Justice Anthony Kennedy wound up as the author of the controlling opinion in the closely watched patent case.

While all nine justices agreed that the “invention” at issue in the case—a method for hedging weather-related risk in energy trading developed by Bernard Bilski and Rand Warsaw—was too abstract to merit patent protection, only four signed on to Kennedy’s opinion.

That opinion held that the "machine-or-transformation" test for patentability--created by the U.S. Court of Appeals for the Federal Circuit in its Bilski decision--was a "useful clue" when gauging a subject’s patentability but shouldn't be considered the only applicable test.

Read More: Court's Opinion (pdf)