Software Patents Group E :Haithem Ben BouzidLewin Ritter

Problem Statement

Is the decrease of the software patent length a potential solution

to stop patent trolls?

Content 1. Introduction

2. Software patents & patent trolls

3. Changes in design of software patents

4. Conclusion

1 Introduction

2 Software Patents and Patent Trolls 2.1 The Special Situation of Software Patents

Sensitive situation around the notion of patentability of software

Abstraction and Vagueness in the definition software patents

Unclear legal situation of property rights for software patents , As noted by Bessen and Meurer (2008), the software industry and its excesses should be treated differently and require special attention

2 Software Patents and Patent Trolls 2.2 The Patent Troll Crisis is really a Software Patent Crisis

Source: Bessen, J. and Meurer, M., J. (July 2013); The direct costs from NPE disputes; in: Boston University School of Law & Economics Research Paper No. 12-34; retrieved 24/11/2013 from: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2091210; Page 48

Aggregate Accrued Direct Costs of NPEs and Number of Defenses in United States

2 Software Patents and Patent Trolls 2.3 Developments in the Software Industry and Software Patents

Software patents issued in the U.S

Source: Own calculations from: Center for Global Innovation/Patent Metrics (2013); Statistics on U.S. and Global Patent Quality; Excel Spreadsheet; retrieved 23/11/2013 from: http://www.bustpatents.com/statistics.html

The major players in the field of new patenting are Samsung and IBM, both having been issued more than 6.000 patents in 2012.Even though the software industry has grown rapidly, the average software patent quality has decreased

2 Software Patents and Patent Trolls 2.4 Should Software Patents be Abolished?

Aggregate Profits from Patents and Aggregate Litigation Costs for U.S. Public Firms

Source: Bessen, J. and Meurer, M., J. (2008); Patent Failure – The particular problem of software patents; Princeton University Press; retrieved 24/11/2013 from: http://press.princeton.edu/chapters/s8634.pdf; Pages 15

2 Software Patents and Patent Trolls 2.4 Should Software Patents be Abolished?

Motives for Patenting: The Computer Industry versus Other Industries (in percent of respondents)

Source: Klemens, B. (2006); Math you can’t use – Patents, Copyright and Software; Brookings Institution Press, Washington D.C.; Chapter 5, Page 83 

3 Changes in Design of Software Patents3.1 Investment Cycle and Payback Period in the Software Industry

The software industry has a short investment cycles of 2 to 5 years.

A short payback period

Is a software patent protection after a certain period of time still necessary ?

3 Changes in Design of Software Patents3.2 Patent Suits in Last Years before Patent Expiration

Source: Love, B. (2011); Page 1337

Years from Each Suit’s Filing to Patent-in-Suit’s Expiration

3 Changes in Design of Software Patents3.3 Optimal Patent Length

4 Conclusion