Newegg trial: Crypto legend takes the stand, goes for knockout patent punch
arstechnica.com
arstechnica.com
"We've heard a good bit in this courtroom about public key encryption," said Albright. "Are you familiar with that?
"Yes, I am," said Diffie, in what surely qualified as the biggest understatement of the trial.
"And how is it that you're familiar with public key encryption?"
"I invented it."
"All of them."
Lead to this first article: http://arstechnica.com/tech-policy/2013/01/east-texas-courts... from the beginning of the year that adds a lot of details and nuance to the story. E.g. it's not a Rocket Docket anymore, not defense friendly in that summary judgement is seldom granted, trials are quick which can present difficulties in multi-defendant cases, but plenty of plaintiffs are losing big, like in the Eolas case. 4 day trial, found invalid, game over.
As for "largely non-technological", at this level I think pretty much every district is going to be the same, especially after each side rejects any domain experts or thereabouts that might be in the pool.
That is a statement/sentiment I have only heard from people who self identify as anarchists.
But perhaps my wording wasn't clear: I meant to limit it to "liberals" who are of the "property is theft" persuasion, or at least fairly strong in that direction.
'supporters of free market like private property, and patents and copyright are intellectual “property”. Hence, strengthening them is ideologically and politically consistent with the general principle that “private property is good for growth” ... [But patents are] not a “property” right but rather a “monopoly” right'
That's not what Fenster did. He went on the attack.
"You never completed a master's degree, correct?" he asked Diffie.
"That's correct," said Diffie.
"Other than the honorary degree, you don't have an earned doctorate or Ph.D. correct?"
"That is correct," said Diffie.
And even though he taught a few courses, "you never had a real professorship, correct?" asked Fenster.
"I never had a full-time academic job, no."
"I never had a full-time academic job, no, but have consulted with a number of PhD students as a knowledge resource in cryptography."
Is overanswering a bad thing in a court setting? It seems like lawyers always fish for information they can slant; full disclosure on a topic would seem to correct that failing?
Dr. Rhyne, who will lead the three-day Boot Camp, is a broadly experienced expert witness who has provided in-courtroom testimony in over three dozen federal patent cases and ITC hearings over the past thirty years. He will be joined by legal and technical staff members from Patent Calls, as well as selected guest lecturers.
Carefully designed to be a program that will be “Conducted by Experts for Experts,” Boot Camp participants will learn that serving as an expert witness is a unique and productive way to use their technical knowledge. “By their nature, patent trials are highly charged competitive environments for companies and attorneys who have a great deal at stake,” Dr. Rhyne has explained, “and an expert witness is often a key part of that process. I am pleased to have this opportunity to share my experience as a witness with others.”
Patent Calls’ Patent Expert Witness Boot Camp will provide an opportunity for individuals who have some patent expert witness experience – or who are aspiring to become an expert witness – to benefit from both intensive instruction and interactive training that are intended to increase their effectiveness and appeal to potential clients. Participants will receive a highly integrated combination of classroom instruction, team exercises, and simulated examination and testimony that will serve to challenge them and thus maximize their learning experiences.
http://www.businesswire.com/news/home/20101115007716/en/Pate...
Which contrasts nicely with the questions put to Diffie about his status as an expert witness:
Fenster noted that while Diffie was testifying in court for the first time, he had other expert witness work lined up. His rate varies from $500 to $600 per hour, and it's $700 for testifying in court.
"Your agent helps you to get expert witness jobs, is that right?"
"Actually, no," said Diffie. "My agent handles the arrangements with my clients. All of the jobs have come in directly through me."
I don't follow patent troll cases too closely because they make me so angry, especially given that so many of them end up with the troll winning, or at least going right back to doing what they were doing after losing in court in a specific instance, but not losing the patent (or they just continue attacking people with other patents in their portfolio in the rare event the patent is invalidated). So, when I see a positive story...and this one looks pretty positive to me.
I worry vaguely that the judge or jury might not recognize the vast difference between Diffie and some unknown asshole who makes his living testifying in court as an "expert witness" in patent cases.
The "unknown asshole" is an IEEE life fellow and former board member, with a long successful career in research, industry, and teaching in computer engineering, and authored a widely used award winning textbook on digital design.
His profile is pretty typical for expert witnesses. Quite a large fraction of them are people who are retired (Rhyne retired in 1998) after having had a very successful and distinguished career in engineering or science, usually including research, industry, and academia.
Expert witness gigs are a nice way to pay for a new boat or RV without a lot of work. (One of the experts at the trial I was involved in was paying for a Tesla from a couple expert witness jobs). Many become registered patent agents, and then they can testify as both experts on the engineering aspects of the patent and on the patent aspects (e.g., prior art, infringement, interpretation of the specification, and such).
The workload is actually pretty light, compared to what their load was likely like before they retired. Basically, they write a report that analyzes the patent and the alleged infringement and explains why the patent is valid and why it is indeed infringed, get deposed, and testify about the report.
Me, I prefer to see data. Fortunately, there are a number of studies coming out about patent trolls. Unfortunately, there is no clear consensus. Also, things like the impact of baseless demand letters simply cannot be studied because they cannot be tracked and there is no data. This will hopefully will change soon.
But I'd much rather prefer analytical study over uninformed vitriol. Ars Techica is usually good, but not when it comes to patent matters. This is the same blog that painted CSIRO, a well known Australian research lab, as a patent troll because they claimed to invent WiFi and sued manufacturers over it. The comments on that article (many from posters down under, naturally) kept calling out Ars' incorrect rewriting of history, but they would not back down. I wouldn't want my news from somebody who won't accept the facts because they don't agree with their biases.
If someone is ambushing people in the street, hitting them over the head with a pipe, and robbing them, I don't need to see a double fucken' blind study to decide that this needs to stop.
You've reminded me of a meta-study published in some medical journal, analysing "parachute application to prevent trauma due to gravitational challenge", i.e. if it's worth wearing a parachute when jumping out of a plane. They found that little high-quality data exists to support parachute use, and recommended further study.
The papers I read indicate that trolls actually often have "strong" patents, but like you said, most of those settle out of court, so you never hear about them. The ones that go to court are the weak ones, and those are the ones you hear about, which creates an image that all trolls assert bogus patents.
I mean even NewEgg, who've been spouting a lot of "We Never Settle" rhetoric admitted, in this very case, that they've licensed a majority of patents that were asserted against them. The coverage on Ars is a bit brief, but it sounds like out of 80 assertions NewEgg has taken it to court only a handful of times. To me, that sounds like the system is not imbalanced.
> If someone is ambushing people in the street, hitting them over the head with a pipe, and robbing them, I don't need to see a double fucken' blind study to decide that this needs to stop.
Or maybe the alleged victims claiming to be robbed are lying because they don't want to pay money owed to the alleged assailant and they're hoping he gets put away? Are you going to believe individual he-said/she-said cases or data?
BTW the parachute study sounds hilarious. Link?
The fact that many of these idiot patents are legally strong is precisely the problem; that's why we need patent reform to kill them.
> We think that everyone might benefit if the most radical protagonists of evidence based medicine organised and participated in a double blind, randomised, placebo controlled, crossover trial of the parachute.
http://www.bu.edu/law/faculty/scholarship/workingpapers/Bess...
As for consensus...I don't need consensus to know what's ethical. I've been working in software all of my professional life. Software patents are a disaster for innovation.
That said, I'm pleased that we've finally gotten a number of jurists now who are better able to navigate the complexity of the Internet, programming, and 'process patents' when they involve Internet programming. I also find it remarkable that the Trolls have trained up a specific jurisdiction by over using it and are now at a disadvantage there. No doubt they will start looking for somewhere else to file soon but the effect will be the same as opinions and case law flow out of the east Texas courts.
I am perhaps an optimist, but I believe we have turned the corner on stupid patents. And more and more of them will be brought down and fewer of them will be of use to trolls. With luck in another 10 years people will be able to talk about the 'bad old days' of patent trolls as being behind them.
As far as Google Search goes, standard advice for any tech company to their employees is don't go searching for patents, just submit potentially patent-able ideas to legal. This is because if someone has a patent on something and you violate it and they can prove that you knew about the patent via subpoenaed records then you owe them three times as much as you would otherwise, so the more ignorant you are of existing patents the better.
And on the legal side of things, IP lawyers just search the USPTO records directly, not through Google Search.
However, I've been researching the patent system quite a bit, and have come across a number of studies about patent quality [1-12], including "software" patents [1, 2, 3, finding that software patents are no worse than other patents]. Unfortunately, there are many problems with these studies:
1) Judging patent quality is hard and time-consuming, and doing it for a significant number of patents to get data is much more so. Hence many studies use proxies to judge patent quality, such as back-citations [4, 5], or more complex multi-variate models [10] . And then other articles point out flaws in using proxies like this, or actually showing that the metrics actually show the opposite of what they conclude [6]. And then other studies that propose new metrics [7, 8, 9]
2) Related to 1, the other problem is looking at not enough data, looking at different subsets of data, or using different methodologies. Studies are usually careful to highlight these shortcomings and try to logically make an argument for generalizing these results, but it's hard to reach a general conclusion, especially since there is no real consensus.
Now, back to your [Citation Needed]: Few studies convincingly evaluate USPTO (or other) patent quality over time. One study that does find an improvement over time [10] attributes it to the KSR decision rather than Google. Another says that EU patents are getting better over time, though not the US [11]. Another one does briefly argue that US patent quality has been increasing over time [12] based on a bunch of other studies, but some of these use metrics that are not fool-proof, as I mentioned in point 1).
And no, patent lawyers and examiners do absolutely use Google for search.
1. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=970083
2. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=650921
3. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2291603
4. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=426020
5. http://www.oecd.org/newsroom/scienceandtechnologyfallingpate...
6. http://hallingblog.com/oecd-patent-quality-measurement-%E2%8...
7. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1452862
8. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1709999
9. http://www.columbia.edu/~mr2651/A_New_Look_at_Patent_Quality...
10. http://www.ipo.org/wp-content/uploads/2013/03/PatentQualityi...
11. http://ec.europa.eu/internal_market/indprop/docs/patent/patq...
12. http://www.brookings.edu/~/media/research/files/reports/2013...
Also weren't most of the questions that the TQP lawyer asked ad hominem? I understand that he asked those to discredit Diffie, but they still seemed very disrespectful. Almost anyone in the crypto field would back up Diffie's reputation, so that was a rather stupid move on the part of the TQP lawyer IMO.
Unfortunately, the jury is very much not in the crypto field. As far as they know, he's just some guy who claimed to invent something, and the plaintiffs are making the most of it.
Similarly, aside from the ad homs about educational pedigree, the line about not being the "real" inventor is pretty critical. The point is "secret" (i.e. unpublished) inventions don't count as prior art in invalidity arguments. So even if you accept that GCHQ invented public key crypto, Diffie's patent is still valid. I imagine IP Nav wants to argue that private demos of Lotus Notes don't count as prior art.
Ad hominem is when you attack a logical argument based on the characteristics of the person making it. It's a logical fallacy because the logical argument is something that can be evaluated itself using logical reasoning.
But an expert witness does not present a logical argument that the jury can evaluate on its own merits. An expert witness presents an opinion and explains the evidence on which he relied to form that opinion. Facts that credit or discredit the witness help the jury determine whether to believe the opinion.
Incidentally, this is why the Federal Rules of Evidence are a better basis for internet arguments than the logical fallacies. These are rarely a matter of reasoning, but rather a matter of assessing the credibility of opinions. When you argue with someone about global warming, you're not presenting logical arguments that can be evaluated standing alone. You're arguing over which experts have more credible opinions and which sets of evidence you believe.
Attacking the credentials of a supposed expert witness is a perfectly legitimate strategy in court. He wouldn't really be representing his client well if he didn't try to discredit Diffie.
I am surprised he was allowed to get away with it.
You might call it "ad hominem" as it is an attempt to discredit Diffie, although that usually describes a logical fallacy - the personal attack doesn't affect the validity of the argument. In this context the main reason for having Diffie there is because of his status and achievements, so it's a reasonable counter to try to discredit him.
I would say that kind of attack is not very fair, and a little bit dishonest, but not a flaw of reasoning.
I would have loved to response to ""You never completed a master's degree, correct?" he asked Diffie." with "Just like Bill Gates and Steve Jobs, no I don't have a masters degree" (well apparently Bill eventually got one...). I assume the judge would be unhappy with this, which strikes me as unfair - surely I can defend my reputation?
I wouldn't use Bill Gates nor Steve Jobs as examples of experts.
I'd be tempted to use the person within the organisation who's done lots of published research even without the diploma. But you make a good point - trials are about persuading the jury.
Facts that are ad hominem in the world of logical argument are vital determinants of credibility in the world of witness testimony. They help juries figure out who to believe. Thus the logic isn't "if you don't have a master's degree you likely can't be an expert in this field" but rather "the guy with the PhD is more likely to be a credible expert in this field." Which is a reasonable presumption. It's the job of the side presenting an expert with unique experience who doesn't have marks of academic qualification to convince the jury of the person's expertise regardless of the traditional indicators.
Which in this case, is a bit like discrediting Einstein for not having studied relativity in school.
"You don't know what you're talking about" is easily countered by "I invented these crypto systems; these have had no serious challenges in the X years since invented; I've defeated these crypto systems; I've published these papers in these peer reviewed journals; I have these honorary awards from these universities." etc etc.
It's a lot more troubling in other cases.
Reality is that the jury are only going to have a relatively limited understanding of the detail of these things so they're relying on expert witnesses. Part of that is whether that person has any right to call themselves an expert in the first place.
AFTER EDIT TO REPLY TO A QUESTION:
I was asked for a written account of transnational comparisons of intellectual property law and its effect on innovation. Here is one.
http://www.cambridge.org/us/academic/subjects/law/intellectu...
I have to go to a conference today for work, but perhaps other participants will join in with other comments on the international legal comparison issue. I have lived in two countries (the United States and Taiwan), and I lived in Taiwan before and after it developed intellectual property law enforcement, and it is plain to me that intellectual property rights encourage innovation (as contrasted with mere copying).
2. You can be first to market by developing it secretly, perhaps collaborating with a larger company in exchange for royalties. That may not earn you as much money as a patent-monopoly, but that's fine.
In any case, if I independently invent something I should have full rights to pursue it however I want. That someone else 'thought of it first' is unrelated to my inventing it. That's the free world I wanna live in.
These inventions are built on our shared knowledge. Nobody deserves a patent for it. Inventors will invent anyway.
That said, I'm not completely sold on whether patents are entirely useless. Certain types of invention seem to fit the model better than others.
Then again, I've heard of instances where patents, or something similar, could help innovation. One example is the business poaching I've heard of here, where someone starts exploring an idea as a service, only to shortly thereafter have a separate services company run with the idea, and put out a better executed version quicker than the originator because of more capital. At first glance that seems unfair to the originator but better for society, but if enough people think it's not worth entering the market because they'll be scooped, we all lose out on those ideas.
I don't have a solution, and I don't think the answer is simple.
There is a "little" difference, however, between these patent trolls and the guy tinkering sprinklers in his basement.
Volvo patented it in the 50's and made it freely available for use.
Obviously you can't trade secret law in a variety of contexts, but if you're making something physical and can hide the secret details inside a factory....
(Of course, I'm not talking about software patents, which are entirely bogus ... although many encryption patents seem to have a lot stronger basis for validity. In particular think of RSA, which seems so obvious in retrospect ... but Diffie, Hellman and Merkle didn't think of it, and used a system they knew was weak so that they could demonstrate a proof of concept.)
I am so sick of every political argument in the US being reduced to some kind of technocratic majoritarianism.
Part of what is interesting to me about open source is that it provides a system of development that is pretty competitive with the established protectionist models, so I am watching the open source hardware scene very closely.
To me the question isn't whether patents are good or bad in some absolute term, it is more whether they are becoming obsolete for many situations.
It was pretty clear to anyone with half a brain that the plaintiff had no actual case and the issue he was suffering from was related to preexisting degenerative arthritis and nothing to do with the product that supposedly injured his knee, but sadly based on nothing more than emotional manipulation by his (very good) lawyers of the jury he came very close to winning (ultimately it was a hung jury, but the majority of votes were in plaintiff's favor).
Sadly, people are right to doubt the fact that many of the jurors have the context to value Diffie's testimony over the plaintiff's expert witnesses in this case.