Apple case shows need for patent reform

The Herald reports:

has been ordered to pay nearly $US533 million by a federal jury that found the company’s iTunes music store uses software that infringes on held by a Texas company.

An attorney for plaintiff Smartflash LLC praised the verdict. Apple immediately announced plans to appeal and said the case shows the need for Congress to reform the US patent system.

The case involves three patents that Smartflash holds for software used in storing data files and managing access through an online payment system. The outcome will likely add fuel to a broader debate over the federal patent system and complaints that it’s easily abused by companies that make most of their revenue through patent lawsuits.

“Smartflash makes no products, has no employees, creates no jobs, has no US presence and is exploiting our patent system to seek royalties for technology Apple invented,” Apple said in a printed statement.

The statement added: “We rely on the patent system to protect real innovation and this case is one more example of why we feel so strongly Congress should enact meaningful patent reform.”

I agree with Apple.The US should follow NZ and not allow patents for software. You have scores of companies that file patents on as much software as possible, just so they can then sue someone who comes along with a similar idea. As in this case, they never produce anything with their patents – they just use them for lawsuits.

It is likely the decision will be overturned on appeal, but it is a shame so much money is wasted on endless patent lawsuits between IT companies.

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