Secrecy Power Sinks Patent Case

Security Blanket Blog

Advancing technology is plunging the world of ideas into a runaway arms race. More ideas are being created, and more emphasis and wealth placed on the ownership of those ideas. As the same time, courts are expanding what can be patented. This forces many companies into a defensive maneuver to patent ideas they would not have otherwise. This in turn forces others to do the same. It has never been so crucial that our ideas are anchored in the law. I was involved with Wired magazine when Wired invented the click-through ad banner on the web. Even if any of us had known this idea was patentable, I do not think we would have patented it. If we invented it now, we would have been practically forced to patent it just so some other company wouldn’t. However, patents do not give you much protection if you are the little guy, especially in this case when you are up against a large corporation involved with a government agency. This situation is fairly complicated but I’ll try to briefly explain it for those who are not informed.
Philip French and two colleagues, Charles Monty and Steven Can Keiren, designed and patented a device called the Crater Coupler, which is a connector used to seamlessly link one pipe or cable to another, without standard hardware like nut threads or bolted flanges. After spending a year developing the technology with Lucent Technologies to use in an underwater environment, Lucent informed French that because the application was being used by a government agency for ’secret purposes’ they would not have to pay French for continued use of his design. Lucent eventually offered the inventors $100,000 for the right to produce 1,000 wetmate couplers. French, who had recently retired, was satisfied with the offer but his partners were not, so they bought him out for $30,000. The partners then sued Lucent for alleged patent infringement, trade-secret theft and breach of contract. The patent infringement charge was dismissed because, under federal law, a “company can’t be sued for infringement if the development was for the exclusive use of the government.” The government intervened and asserted the state secret privilege when the plaintiffs tried to subpoena 26,000 documents to support their claim. Crater was not allowed to pursue legal inquiry regarding the government’s use of their coupler because it could clue in adversaries of the United States to highly classified operations and programs which could greatly damage national security.
The state secrets privilege has been cited in a number of cases. Some of these for seemingly unjust purposes, but the privilege has led to the termination of litigation in almost every case in which it is invoked. I agree with Weaver that although it is a rare occasion that the privilege is invoked for evil purposes, the real problem is that we cannot tell when that is the case. As Coffin asserts, the increased use of the state secrets privilege illustrates that “information is a weapon in the modern day and age,” which is a major concern for national security.
I think that in a case like this one, Philip French made a wise decision to take his $30,000 and split, rather than trying to fight the government in a battle he could not win.

Inventing

Honestly, I don't see a real purpose for royalties on inventions - government use or not. I think that this is a constantly changing world and the idea of protecting the rights of inventions only inhibits our society to develop and evolve to its full potential. There are so many instances where someone can add onto a previous idea to make something even better but they can't because of copyright laws and trademarks. If everyone has free and unlimited access to ideas, and no one gets credit for inventions, the entire world would benefit instead of just one person looking for ten minutes of fame. Those who are genuinely interested in helping and developing society will still invent, but the rest of us won't be plagued with useless gadets and devices that someone spent three years trying to develop. Eliminating patents all together would promote the real purpose of inventing as opposed to a source of income.

Inventing

Honestly, I don't see a real purpose for royalties on inventions - government use or not. I think that this is a constantly changing world and the idea of protecting the rights of inventions only inhibits our society to develop and evolve to its full potential. There are so many instances where someone can add onto a previous idea to make something even better but they can't because of copyright laws and trademarks. If everyone has free and unlimited access to ideas, and no one gets credit for inventions, the entire world would benefit instead of just one person looking for ten minutes of fame. Those who are genuinely interested in helping and developing society will still invent, but the rest of us won't be plagued with useless gadets and devices that someone spent three years trying to develop. Eliminating patents all together would promote the real purpose of inventing as opposed to a source of income.

Continued thoughts...

I think I should probably clarify myself a bit on this issue. I agree that the inventors of the Crater coupler got the short end of the stick. I think they should have been notified before they spent a year working with Lucent in regards to the governmental use of their invention. They did have an idea of the situation, but it should have been presented to them completely before they agreed to work with Lucent. The issue with the 26,000 documents, some classified and some not, does in fact seem quite absurd. However, the documents were reviewed by the Judge Webber, who ruled that they were not to be used due to national security interests. A key point here could be that the operation was ongoing, so the government was extremely cautious about revealing information. I agree with Barlow’s comments about the stifling of innovation and the problem that arises for inventors. This quote touches on that concern: “The ruling is notable as a rare appellate interpretation of the state secrets privilege as it applies to patent holders. As such, it is a potentially worrying development for inventors -- particularly those developing weapons, surveillance and anti-terror technologies for government contractors -- who may find infringement claims dismissed without a hearing under the auspices of national security.” When I said French’s decision was wise, I was being a bit pessimistic. This whole situation that Crater was in was not fair by any means. The problem here is that if a judge weighs an inventor’s case against the interests of national security, I am pretty sure the security of a whole nation is going to be deemed more important. Some type of change needs to occur in the system to ensure that these inventors are rewarded for their hard work and encouraged to make new discoveries. In this situation, the problems seemed to arise because of the middle-man, Lucent technologies…

State Secrets

I have to agree with John Perry Barlow's comment. Cases like this are another example of federal laws imposing on innovation. It's interesting, and very alarming to me that the government would not allow Crater to prove his claim by subpoening the 26,000 documents or pursue legal inquiry into the government's use of the coupler, citing the potential for great damage to national security. Things like this don't encourage Americans to think and develop products. It also doesn't exactly encourage people to be "whistle blowers," either.

Fair compensation

If the creators of an invention are not allowed to profit from their discoveries if the government uses it, then pretty soon there'll be no one that'll be stupid enough to produce inventions exclusively. This will stifle innovation within the US government, and will hinder what the government wants to do in the first place, which is to keep the most promising new technologies from foreign hands. Inventors will just sell their inventions to the highest bidder. The government needs to guarantee inventors fair compensation so we can have the best inventions to protect this country.