United States

The US Drops Out of the Top 10 In Innovation Ranking (bloomberg.com) 102

An anonymous reader quotes a report from Bloomberg: The U.S. dropped out of the top 10 in the 2018 Bloomberg Innovation Index for the first time in the six years the gauge has been compiled. South Korea and Sweden retained their No. 1 and No. 2 rankings. The index scores countries using seven criteria, including research and development spending and concentration of high-tech public companies. The U.S. fell to 11th place from ninth mainly because of an eight-spot slump in the post-secondary, or tertiary, education-efficiency category, which includes the share of new science and engineering graduates in the labor force. Value-added manufacturing also declined. Improvement in the productivity score couldn't make up for the lost ground.

South Korea remained the global-innovation gold medalist for the fifth consecutive year. China moved up two spots to 19th, buoyed by its high proportion of new science and engineering graduates in the labor force and increasing number of patents by innovators such as Huawei Technologies Co. Japan, one of three Asian nations in the top 10, rose one slot to No. 6. France moved up to ninth from 11th, joining five other European economies in the top tier. Israel rounded out this group and was the only country to beat South Korea in the R&D category. South Africa and Iran moved back into the top 50; the last time both were included was 2014. Turkey was one of the biggest gainers, jumping four spots to 33rd because of improvements in tertiary efficiency, productivity and two other categories. The biggest losers were New Zealand and Ukraine, which each dropped four places. The productivity measure influenced New Zealand's shift, while Ukraine was hurt by a lower tertiary-efficiency ranking.

Graphics

Can A New Open Photo File Format Replace JPEGs? (cnet.com) 259

Got lossless compression? An anonymous reader quotes CNET: Google, Mozilla and others in a group called the Alliance for Open Media are working on a rival photo technology. In testing so far, the images are 15 percent smaller than Apple's HEIC photo format, said Tim Terriberry, a Mozilla principal research engineer working on the project. But smaller sizes are just the beginning... it's got a strong list of allies, an affinity for web publishing and modern features that could make it the best contender yet for overcoming JPEG's 1990s-era shortcomings... JPEG isn't just limited by needlessly large file sizes. It's also weak when it comes to supporting a wider range of bright and dark tones, a broader spectrum of colors, and graphic elements like text and logos...

The HEIC's new rival is from the Alliance for Open Media, a group whose top priority is a video compression technology called AV1 that's free of patent licensing requirements. It's got heavy hitters on board, including top browser makers Google, Microsoft, Mozilla and the most recent new member, Apple -- though Apple's plans haven't been made public. And it's got major streaming-video companies, too: Netflix, Amazon, Hulu, Facebook, videoconferencing powerhouse Intel and Google's YouTube. And with the support of chip designers Intel, Nvidia and Arm, AV1 should get the hardware acceleration that's crucial to making video easy on our laptop and phone batteries.

To use Apple's HEIC, "makers of software, processors and phones must jump through a lot of hoops to license patents," which CNET predicts "means HEIC will have trouble succeeding on the web: patent barriers are antithetical to the web's open nature."
Patents

Bank of America Tops IBM, Payments Firms With Most Blockchain Patents (bloomberg.com) 45

Bank of America may not be willing to help customers invest in Bitcoin, but that doesn't mean it isn't plowing into the technology underlying the cryptocurrency. From a report: The Charlotte, North Carolina-based lender has applied for or received at least 43 patents for blockchain, the ledger technology used for verifying and recording transactions that's at the heart of virtual currencies. It is the largest number among major banks and technology companies, according to a study by EnvisionIP, a New York-based law firm that specializes in analyses of intellectual property. "Based on what's publicly out there, the technology sector hasn't embraced blockchain as much as the financial-services industry," Maulin Shah, managing attorney for EnvisionIP, said in an interview. International Business Machines Corp., which has targeted blockchain and artificial intelligence for future growth, tied with Mastercard Inc. for second on the list, with 27 each.
Patents

TiVo Sues Comcast Again, Alleging Operator's X1 Infringes Eight Patents (variety.com) 57

TiVo's Rovi subsidiary on Wednesday filed two lawsuits in federal district courts, alleging Comcast's X1 platform infringes eight TiVo-owned patents. "That includes technology covering pausing and resuming shows on different devices; restarting live programming in progress; certain advanced DVR recording features; and advanced search and voice functionality," reports Variety. From the report: A Comcast spokeswoman said the company will "aggressively defend" itself. "Comcast engineers independently created our X1 products and services, and through its litigation campaign against Comcast, Rovi seeks to charge Comcast and its customers for technology Rovi didn't create," the Comcast rep said in a statement. "Rovi's attempt to extract these unfounded payments for its aging and increasingly obsolete patent portfolio has failed to date."

TiVo's legal action comes after entertainment-tech vendor Rovi (which acquired the DVR company in 2016 and adopted the TiVo name) sued Comcast and its set-top suppliers in April 2016, alleging infringement of 14 patents. In November 2017, the U.S. International Trade Commission ruled that Comcast infringed two Rovi patents -- with the cable operator prevailing on most of the patents at issue. However, because one of the TiVo patents Comcast was found to have violated covered cloud-based DVR functions, the cable operator disabled that feature for X1 customers. Comcast is appealing the ITC ruling.

Patents

Empirical Research Reveals Three Big Problems With How Patents Are Vetted (arstechnica.com) 94

An anonymous reader quotes a report from Ars Technica: If you've read our coverage of the Electronic Frontier Foundation's "Stupid Patent of the Month" series, you know America has a patent quality problem. People apply for patents on ideas that are obvious, vague, or were invented years earlier. Too often, applications get approved and low-quality patents fall into the hands of patent trolls, creating headaches for real innovators. Why don't more low-quality patents get rejected? A recent paper published by the Brookings Institution offers fascinating insights into this question. Written by legal scholars Michael Frakes and Melissa Wasserman, the paper identifies three ways the patent process encourages approval of low-quality patents:

-The United States Patent and Trademark Office (USPTO) is funded by fees -- and the agency gets more fees if it approves an application.
-Unlimited opportunities to refile rejected applications means sometimes granting a patent is the only way to get rid of a persistent applicant.
-Patent examiners are given less time to review patent applications as they gain seniority, leading to less thorough reviews.

None of these observations is entirely new. But what sets Frakes and Wasserman's work apart is that they have convincing empirical evidence for all three theories. They have data showing that these features of the patent system systematically bias it in the direction of granting more patents. Which means that if we reformed the patent process in the ways they advocate, we'd likely wind up with fewer bogus patents floating around.

Bitcoin

Bank of America Wins Patent For Crypto Exchange System (coindesk.com) 52

New submitter psnyder shares a report from CoinDesk: [The patent] outlined a potential cryptocurrency exchange system that would convert one digital currency into another. Further, this system would be automated, establishing the exchange rate between the two currencies based on external data feeds. The patent describes a potential three-part system, where the first part would be a customer's account and the other two would be accounts owned by the business running the system. The user would store their chosen cryptocurrency through the customer account. The second account, referred to as a "float account," would act as a holding area for the cryptocurrency the customer is selling, while the third account, also a float account, would contain the equivalent amount of the cryptocurrency the customer is converting their funds to. That third account would then deposit the converted funds back into the original customer account for withdrawal. The proposed system would collect data from external information sources on cryptocurrency exchange rates, and use this data to establish its own optimal rate. The patent notes this service would be for enterprise-level customers, meaning that if the bank pursues this project, it would be offered to businesses.
Businesses

Apple Accuses Qualcomm of Patent Infringement in Countersuit (reuters.com) 34

From a report: Apple on Wednesday filed a countersuit against Qualcomm, alleging that Qualcomm's Snapdragon mobile phone chips that power a wide variety of Android-based devices infringe on Apple's patents, the latest development in a long-running dispute. Qualcomm in July accused Apple of infringing several patents related to helping mobile phones get better battery life. Apple has denied the claims that it violated Qualcomm's battery life patents and alleged that Qualcomm's patents were invalid, a common move in such cases. But on Wednesday, in a filing in U.S. District Court in San Diego, Apple revised its answer to Qualcomm's complaint with accusations of its own. Apple alleges it owns at least eight battery life patents that Qualcomm has violated.
Facebook

'Break Up Google and Facebook If You Ever Want Innovation Again' (theregister.co.uk) 268

Hal_Porter shares a report from The Register: If the tech industry wants another wave of innovation to match the PC or the internet, Google and Facebook must be broken up, journalist and film producer Jonathan Taplin told an audience at University College London's Faculty of Law this week. He was speaking at an event titled Crisis in Copyright Policy: How the digital monopolies have cornered culture and what it means for all of us, where he credited the clampers put on Bell then IBM for helping to create the PC industry and the internet. Taplin told his audience that he'd been moved by the fate of his friend Levon Helm, The Band's drummer, who was forced to go back on the road in his sixties, after radiation therapy for cancer. Helm died broke. Today, Taplin points out, YouTube accounts for 57 per cent of all songs streamed over the internet, but thanks to a loophole returns just 13.5 per cent of revenue. "That's not a willing buyer-seller relationship," he said, referring to the UGC loophole that Google enjoys, one not available to Spotify or Apple Music. But it isn't just songwriters and musicians who are poorly paid. The average person "works for two hours a day for Mark Zuckerberg" generating a data profile. Taplin pointed out that Bell held patents on many technologies including the transistor, the laser and the solar cell, that it agreed to license, royalty free, as part of a 1956 consent decree.

Taplin saw history repeated with IBM. Under the 1956 (again) consent decree IBM was obliged to unbundle software from hardware in the 1960s. But competition authorities again opened up an investigation in 1969 which ran for 13 years. Caution made IBM ensure its first microcomputer, the IBM PC, launched in 1981, was an open platform. IBM chose three operating systems to run on the first PC but clearly favoured an outsider, from a tiny Seattle outfit originally called "Micro-Soft." Then Microsoft got the treatment. "Every 20 years we have this fight -- and we're about to have it again," Taplin told the audience. Antitrust was necessary "not because they're too big, but because there's no market solution" to Google and Facebook. The barriers to entry are now so high nobody is going bust open the ad duopoly. Taplin cited Snapchat an example of a company that tried to innovate, but refused to take Facebook's buyout offer. Facebook has simply copied its features.

Patents

Patent Trolls Are Losing More. Will America's Supreme Court Change That? (nytimes.com) 127

jespada writes: New York Times has an article warning that the Patent Appeal and Trial Board is being challenged on the basis that patents represent real property and that a government agency is not empowered to take real property.
Here's a quotes from the Times article. (Non-paywalled version here): In the five years since it began its work -- a result of the America Invents Act of 2011 -- the Patent Trial and Appeal Board has saved companies more than $2 billion in legal fees alone, according to Joshua Landau, patent counsel at the Computer and Communications Industry Association, offering an expeditious and relatively cheap avenue to challenge patents of doubtful validity. The benefits of stopping bad patents from snaking their way through the economy have been even greater. Companies no longer have to pay ransom so the threat of lawsuits over dubious royalty payments -- filed by aggressive litigants known as trolls -- will go away... But for all the benefits of culling faulty intellectual-property rights, the board is under existential threat. Next week, the Supreme Court will hear a challenge that the patent office's new procedure is unconstitutional...
Patents

EFF Beats 'Stupid' Patent Troll In Court (courthousenews.com) 70

An Australian court can't make a California advocacy group take down a web page, a U.S. federal judge just ruled on Friday. Even if that web page calls a company's patents "stupid." Courthouse News reports: San Francisco-based Electronic Frontier Foundation sued Global Equity Management, or GEMSA, in April, claiming the Australian firm exploited its home country's weaker free speech protections to secure an unconstitutional injunction against EFF. Kurt Opsahl, EFF's deputy executive director and general counsel, hailed the ruling as a victory for free speech. "We knew all along the speech was protected by the First Amendment," Opsahl said in a phone interview Friday. "We were pleased to see the court agree." Opsahl said the ruling sends a strong message EFF and other speakers can weigh in on important topics, like patent reform, without fear of being muzzled by foreign court orders.

The dispute stems from an article EFF published in June 2016, featuring GEMSA in its "Stupid Patent of the Month" series. The GEMSA patent is for a "virtual cabinet" to store data. In the article, EFF staff attorney Daniel Nazer called GEMSA a "classic patent troll" that uses its patent on graphic representations of data storage to sue "just about anyone who runs a website." The article also says GEMSA "appears to have no business other than patent litigation."

The judge granted EFF a default judgment, saying the Australian court's injunction was not only unenforceable in the United States but also "repugnant" to the U. S. Constitution.
Iphone

Israeli Company Sues Apple Over Dual-Lens Cameras In iPhone 7 Plus, iPhone 8 Plus (macrumors.com) 56

Corephotonics, an Israeli maker of dual-lens camera technologies for smartphones, has filed a lawsuit against Apple this week alleging that the iPhone 7 Plus and iPhone 8 Plus infringe upon four of its patents. Mac Rumors reports: The patents, filed with the U.S. Patent and Trademark Office between November 2013 and June 2016, relate to dual-lens camera technologies appropriate for smartphones, including optical zoom and a mini telephoto lens assembly: U.S. Patent No. 9,402,032; U.S. Patent No. 9,568,712; U.S. Patent No. 9,185,291; U.S. Patent No. 9,538,152. Corephotonics alleges that the two iPhone models copy its patented telephoto lens design, optical zoom method, and a method for intelligently fusing images from the wide-angle and telephoto lenses to improve image quality. iPhone X isn't listed as an infringing product, despite having a dual-lens camera, perhaps because the device launched just four days ago.
Patents

Apple Wins $120 Million From Samsung In Slide-To-Unlock Patent Battle (theverge.com) 72

Apple has finally claimed victory over Samsung to the count of $120 million. "The Supreme Court said today that it wouldn't hear an appeal of the patent infringement case, first decided in 2014, which has been bouncing through appeals courts in the years since," reports The Verge. From the report: The case revolved around Apple's famous slide-to-unlock patent and, among others, its less-famous quick links patent, which covered software that automatically turned information like a phone number into a tappable link. Samsung was found to have infringed both patents. The ruling was overturned almost two years later, and then reinstated once again less than a year after that. From there, Samsung appealed to the Supreme Court, which is where the case met its end today. Naturally, Samsung isn't pleased with the outcome. "Our argument was supported by many who believed that the Court should hear the case to reinstate fair standards that promote innovation and prevent abuse of the patent system," a Samsung representative said in a statement. The company also said the ruling would let Apple "unjustly profit" from an invalid patent.
Businesses

Apple Is Designing iPhones, iPads That Would Drop Qualcomm Components (wsj.com) 131

An anonymous reader quotes a report from The Wall Street Journal (Warning: source may be paywalled; alternative source): Apple, locked in an intensifying legal fight with Qualcomm, is designing iPhones and iPads for next year that would jettison the chipmaker's components, according to people familiar with the matter. Apple is considering building the devices only with modem chips from Intel and possibly MediaTek because San Diego, Calif.-based Qualcomm has withheld software critical to testing its chips in iPhone and iPad prototypes, according to one of the people. Apple's planned move for next year involve the modem chips that handle communications between wireless devices and cellular networks. Qualcomm is by far the biggest supplier of such chips for the current wireless standard. The Apple plans indicate the battle with Qualcomm could spill beyond the courtroom feud over patents into another important Qualcomm business where it has the potential to send ripples through the smartphone supply chain.
The Courts

Apple, Samsung Face New iPhone Damages Trial (reuters.com) 46

An anonymous reader quotes a report from Reuters: U.S. District Judge Lucy Koh in San Jose, California issued her order late on Sunday, 10 months after the U.S. Supreme Court set aside a $399 million award against Samsung, whose devices include the Galaxy. The three Apple patents covered design elements of the iPhone such as its black rectangular front face, rounded corners, and colorful grid of icons for programs and apps. Koh's order is a setback for Apple, which called a retrial unnecessary and said the award should be confirmed. The $399 million represented profit from Samsung's sales of infringing smartphones, though the South Korean company has said it deserved reimbursement if it prevailed in the litigation. It was part of a $548 million payment that Samsung made to Apple in December 2015. The legal dispute concerned whether the "article of manufacture" for which Samsung owed damages included its entire smartphones, or only parts that infringed Apple patents.
Transportation

Amazon Patents Drones That Recharge Electric Vehicles (cnet.com) 58

slash.jit shared an article from Futurism: Amazon has been granted a patent for an ambitious new method of maintaining a charge in electric vehicles. The company wants to use drones to allow drivers to top up their vehicles without having to visit a charging station. Drivers would request a top up from a central server, which would dispatch a charging drone to their location. The drone would then dock with the vehicle and start transferring power, without the car ever needing to come to a stop. This solution isn't meant to administer a full charge to the car's battery, it would only supply enough power to get the driver to a charging station, which are still in somewhat limited supply.
"Amazon first applied for this patent back in June 2014," reports CNET, noting it was finally granted this month. "Like many other patents, there's no guarantee that Amazon will actually create a product based on the design. It could merely be an attempt to stop competitors from doing so."
Patents

Activision Patents Pay-To-Win Matchmaker (rollingstone.com) 133

New submitter EndlessNameless writes: If you like fair play, you might not like future Activision games. They will cross the line to encourage microtransactions, specifically matching players to both encourage and reward purchase. Rewarding the purchase, in particular, is an explicit and egregious elimination of any claim to fair play. "For example, if the player purchased a particular weapon, the microtransaction engine may match the player in a gameplay session in which the particular weapon is highly effective, giving the player an impression that the particular weapon was a good purchase," according to the patent. "This may encourage the player to make future purchases to achieve similar gameplay results." Even though the patent's examples are all for a first-person-shooter game, the system could be used across a wide variety of titles. "This was an exploratory patent filed in 2015 by an R&D team working independently from our game studios," an Activision spokesperson tells Rolling Stone. "It has not been implemented in-game." Bungie also confirmed that the technology isn't being used in games currently on the market, mentioning specifically Destiny 2.
Patents

Tribal 'Sovereign Immunity' Patent Protection Could Be Outlawed (arstechnica.com) 92

AnalogDiehard writes: The recent -- and questionable -- practice of technological and pharmaceutical companies selling their patents to U.S. native Indian tribes (where they enjoy "sovereign immunity" from the inter partes review (IPR) process of the PTO) and then the tribes licensing them back to the companies is drawing scrutiny from a federal court and has inspired a new U.S. bill outlawing the practice. The IPR process is a "fast track" (read: much less expensive) process through the PTO to review the validity of challenged patents -- it is loved by defendants and hated by patent holders. Not only has U.S. Circuit Judge William Bryson invalidated Allergan's pharmaceutical patents due to "obviousness," he is questioning the legitimacy of the sovereign immunity tactic. The judge was well aware that the tactic could endanger the IPR process, which was a central component of the America Invents Act of 2011, and writes that sovereign immunity "should not be treated as a monetizable commodity that can be purchased by private entities as part of a scheme to evade their legal responsibility." U.S. Senator Claire McCaskill (D-Mo.) -- no stranger to abuses of the patent system -- has introduced a bill that would outlaw the practice she describes as "one of the most brazen and absurd loopholes I've ever seen and it should be illegal." Sovereign immunity is not absolute and has been limited by Congress and the courts in the past. The bill would apply only to the IPR proceedings and not to patent disputes in federal courts.
Android

Essential Is Getting Sued For Allegedly Stealing Wireless Connector Technology (gizmodo.com) 43

"Keyssa, a wireless technology company backed by iPod creator and Nest founder Tony Fadell, filed a lawsuit against Essential on Monday, alleging that the company stole trade secrets and breached their nondisclosure agreement," reports Gizmodo. Keyssa has proprietary technology that reportedly lets users transfer large files in a matter of seconds by holding two devices side by side. From the report: According to the lawsuit, Keyssa and Essential engaged in conversations in which the wireless tech company "divulged to Essential proprietary technology enabling every facet of Keyssa's wireless connectivity," all of which was protected under a non-disclosure agreement. More specifically, the lawsuit alleges that Keyssa "deployed a team 20 of its top engineers and scientists" to educate Essential on its proprietary tech, sending them "many thousands of confidential emails, hundreds of confidential technical documents, and dozens of confidential presentations." Essential ended this relationship after over 10 months and later told Keyssa that its engineers would use a competing chip in the Essential Phone. But Keyssa is accusing Essential of including techniques in its phone that were gleaned from their relationship, despite their confidentiality agreement. Central to this lawsuit is one of the Essential Phone's key selling points: the option to swap in modular add-ons, made possible thanks to the phone's unique cordless connector. In short, if Keyssa's claims hold water, then one of the phone's defining factors is a product of theft.
Patents

Apple To Appeal Five-Year-Long Patent Battle After $439.7 Million Loss (theverge.com) 69

Appel has been ordered to pay $439.7 million to the patent-holding firm VirnetX for infringing on four patented technologies that were apparently used in FaceTime and other iOS apps. According to The Verge, Apple plans to appeal the ruling -- continuing this long-running patent battle, which began back in 2012. From the report: VirnetX first filed suit against Apple in 2010, winning $368 million just two years later. It then sued again in 2012, which is the suit that's being ruled on today. Apple initially lost the suit, then filed for a mistrial. It won a new trial, lost that trial, was ordered to pay around $300 million, then lost some more and is now having that amount upped even further. That's because a judge found Apple guilty of willful infringement, bumping its payment amount from $1.20 per infringing Apple device to $1.80 per device. Those include certain iPhones, iPads, and Macs. VirnetX says the ruling is "very reasonable." Apple didn't issue a statement other than to say that it plans to appeal. While $440 million isn't a lot of money for Apple, there's principle at stake here: VirnetX is a patent troll that makes its money from licensing patents and suing other parties. The company's SEC filing states, "Our portfolio of intellectual property is the foundation of our business model."
Businesses

Qualcomm Seeks China iPhone Ban, Escalating Apple Legal Fight (bloomberg.com) 36

Qualcomm filed lawsuits in China seeking to ban the sale and manufacture of iPhones in the country, the chipmaker's biggest shot at Apple so far in a sprawling and bitter legal fight. From a report: The San Diego-based company aims to inflict pain on Apple in the world's largest market for smartphones and cut off production in a country where most iPhones are made. The product provides almost two-thirds of Apple's revenue. Qualcomm filed the suits in a Beijing intellectual property court claiming patent infringement and seeking injunctive relief, according to Christine Trimble, a company spokeswoman. "Apple employs technologies invented by Qualcomm without paying for them," Trimble said. An Apple spokesman didn't immediately respond to a request for comment on Friday. Qualcomm's suits are based on three non-standard essential patents, it said. They cover power management and a touch-screen technology called Force Touch that Apple uses in current iPhones, Qualcomm said. The inventions "are a few examples of the many Qualcomm technologies that Apple uses to improve its devices and increase its profits," Trimble said. The company made the filings at the Beijing court on Sept. 29. The court has not yet made them public.

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