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View Full Version : Constitutional error invalidates all patents in the last 8 years


Bill
05-07-2008, 05:45 PM
This seems fairly incredible - but is apparently true.

Who knows what will happen with it.

Guess it's going to the supremes

http://www.nytimes.com/2008/05/06/washington/06bar.html?ex=1367812800&en=c9a670108e8de8e8&ei=5124&partner=permalink&exprod=permalink

John F. Duffy, who teaches at the George Washington University Law School, is a different kind of law professor. He has discovered a constitutional flaw in the appointment process over the last eight years for judges who decide patent appeals and disputes, and his short paper documenting the problem seems poised to undo thousands of patent decisions concerning claims worth billions of dollars.

His basic point does not appear to be in dispute. Since 2000, patent judges have been appointed by a government official without the constitutional power to do so.

“I actually ran it by a number of colleagues who teach administrative law and constitutional law,” Professor Duffy said, recalling his own surprise at finding such a fundamental and important flaw. He thought he must have been missing something.

“No one thought it was a close question,” Professor Duffy said.

Charles Miller, a spokesman for the Justice Department, said the government had no comment. “There is really nothing we can say at this time,” he said.

But the Justice Department has already all but conceded that Professor Duffy is right. Given the opportunity to dispute him in a December appeals court filing, government lawyers said only that they were at work on a legislative solution.

They did warn that the impact of Professor Duffy’s discovery could be cataclysmic for the patent world, casting “a cloud over many thousands of board decisions” and “unsettling the expectations of patent holders and licensees across the nation.” But they did not say Professor Duffy was wrong.

If it was a legislative mistake, it may turn out to be a big one. The patent court hears appeals from people and companies whose patent applications were turned down by patent examiners, and it decides disputes over who invented something first. There is often a lot of money involved.

The problem Professor Duffy identified at least arguably invalidates every decision of the patent court decided by a three-judge panel that included at least one judge appointed after March 2000.

The appeals court, the United States Court of Appeals for the Federal Circuit, ducked the question in January, which was easy to do because the company on the losing side raised it only after the court had already issued its decision. The company, Translogic Technology, was frank in explaining the delay: it had not known of the issue until Professor Duffy published his article.

Last month, Translogic asked the Supreme Court to consider the question.

Some provisions of the Constitution are open to interpretation, but some are clear. The Constitution says, for instance, that some government officials may be appointed only by the president, the courts or “heads of departments” like the attorney general or the secretary of commerce.

But a 1999 law changed the way administrative patent judges are appointed, substituting the director of the Patent and Trademark Office for the secretary of commerce. Jennifer Rankin Byrne, a spokeswoman for the office, said 46 of the 74 judges on the patent court, the Board of Patent Appeals and Interferences, were appointed under the new law.

“That method of appointment is almost certainly unconstitutional,” Professor Duffy wrote in his paper, first published last summer on an influential patent law blog.

There are two possible contrary arguments. One is that the patent judges are not the sort of “inferior officers” to whom the Constitution’s appointments clause applies, but instead mere employees (and thus inferior to inferior officers). But the Supreme Court has already ruled, in Freytag v. Commissioner in 1991, that special trial judges of the tax court are inferior officers, and the patent judges have more power and discretion than they do.

The other possible argument is that the director of the patent office is entitled to appoint the judges because he is the head of a department. The Freytag decision “pretty clearly forecloses” that argument, Professor Duffy wrote. Freytag said the departments referred to in the Constitution are “executive departments like the cabinet-level departments.” But the patent office is part of the Commerce Department, and its director is an under secretary of the department — not its head.

The question of who gets to appoint “inferior officers” may seem a trivial one. But the Constitution’s framers cared about it.

The “manipulation of official appointments” was “one of the American revolutionary generation’s greatest grievances against executive power,” Justice Harry A. Blackmun explained in Freytag. The framers understood, he continued, “that by limiting the appointment power they could ensure that those who wielded it were accountable to political force and the will of the people.”

The Office of Legal Counsel at the Justice Department, which is supposed to catch constitutional problems in pending legislation, only last year published a 41-page memorandum on the importance and limits of the appointments clause. People who wield the delegated sovereign powers of the federal government are officers subject to the appointments clause, the memorandum said, and judges certainly wield such power.

“Appointments clause issues were our bread and butter,” said John O. McGinnis, a law professor at Northwestern who was deputy assistant attorney general in the Office of Legal Counsel from 1987 to 1991. Professor McGinnis said Professor Duffy’s analysis appeared correct.

“You have to understand that O.L.C. looks at just an enormous number of bills,” he added. “A line attorney might just miss it.”

The Supreme Court will soon decide whether to take up the question, in the case involving Translogic, one with $86 million at stake.

“An improperly constituted tribunal should not be deciding the case,” said a lawyer for Translogic, Robert A. Long of Covington & Burling in Washington. “You have to go back and have the decision made by a properly constituted panel.”

disrupter
05-07-2008, 05:56 PM
Considering the huge number of 'garbage' patents the patent office has issued over the past decade or so, this only stands to reason.

Currently patent workers are given a bonus for each patent they approve, which means there is a whole lot of garbage that doesn't even pass the minimal standards the patent office requires getting patented.

'Plasma flying saucers' without an actual working technology that backs it up?
It is complete science fiction, not a credible or worthwhile patent system.

And then add to that the crap the Drug companies, Monsanto & others patent to game the system & not adding real inventive power, just legal dodges.

Did you know monsanto has patented chunks of your human DNA?
Your public domain inheritance from a Billion years of evolution.
Wait till they start charging you for having it or worse DEMAND that you EXTRACT that chunk of DNA from every cell in your body.

Then there are the corporations that buy potentially useful patents,
ONLY TO SIT ON THEM, denying anyone from implementing their usefulness.
To me it should be 'USE IT OR LOSE IT.' with patents.

Our whole patent system needs MAJOR overhaul.

Moby
05-08-2008, 01:32 AM
My understanding of this article is that the patents issued could still be valid. However, any court decision since 2000 could be under question. If a patent never came up in court then it shouldn't be affected.

I could be way wrong on this as I'm not a lawyer. I think I still have a few buds at the patent office though. I'll see if I can track any of them down.

stefan segal
05-08-2008, 11:24 AM
My brother is a lawyer here in Philadelphia, and in the 70's he fought to achieve a patent for quadasonic sound...a new concept at that time.

He was stalled and thwarted and lied to for a couple of years until RCA patented a varient of his client's invention.

The patent office is not an "honest broker"...they are subject to gifts and graft.

I am in perfect alignment with Disruptors post, but he didn't consider the corruption existant.

Stefan

kres24GT
05-08-2008, 11:57 AM
The Constitution is not really valid anymore, all that matters is what judges say. As you said this will go the SCOTUS, they will decide what to do. The Constitution won't factor in.

stefan segal
05-08-2008, 03:38 PM
The Constitution is not really valid anymore, all that matters is what judges say. As you said this will go the SCOTUS, they will decide what to do. The Constitution won't factor in.

It's a sad but essentially true statement...what Constitutionally correct laws that are aheared to are those laws benefitting those who interpret it for us.

Not to start a firefight, I believe this latest trend in Constitution bashing will end with President Obama and then begin to revert to traditional realities.

Stefan

kres24GT
05-08-2008, 04:00 PM
It's a sad but essentially true statement...what Constitutionally correct laws that are aheared to are those laws benefitting those who interpret it for us.

Not to start a firefight, I believe this latest trend in Constitution bashing will end with President Obama and then begin to revert to traditional realities.

Stefan


There is a reason we never amend the constitution anymore, its easier just to ignore. Most of our federal government is unconstitutional.

Not sure what you are talking about with Obama, he is in favor of ignoring the Constitution as much as any other politician in Washington.

stefan segal
05-08-2008, 06:18 PM
Not sure what you are talking about with Obama, he is in favor of ignoring the Constitution as much as any other politician in Washington.


kres...Obama loves the Constitution.....where are you gathering your information?

Stefan

kres24GT
05-08-2008, 06:48 PM
kres...Obama loves the Constitution.....where are you gathering your information?

Stefan


Like most politcians he loathes the 10th amendment. Obama wants a huge federal government like all the rest. Like the rest he will have to ignore state's rights and the 10th.

stefan segal
05-09-2008, 11:38 PM
Kres...this is no time to give up on our system...it's all we got, and it needs fixing.

Obama taught Constitution, it is his mainstay. Our country is large and complex and requires a lot of government to keep america America.

We all have a different assortment of what things are most important and because we live in a representive structure as compaired to a Democratic structure and are only individual between the confines of judical law and social mores, we require many avenues of feedback to our government for it to serve the needs of the people...all the people in all the States.

A humungous government is required to do this. I'm not speaking of a predatory government like this butch debacle, but a government without the neocons and big business dollars...an Obama government.

Stefan