This week in Other Barks & Bites: the European Commission fines Teva Pharmaceutical $503 million for misusing the patent system to block competition to its multiple sclerosis drug; former USPTO Director Andrei Iancu endorses Donald Trump for President; and a study finds tech giants and the semiconductor industry are leading patent growth.

Bites

EU Fines Teva Over $500 Million for Misuse of Patent System to Block Competition

On Thursday, October 31, the European Commission fined Teva Pharmaceutical €462.6 million ($503 million) for misusing the patent system to delay competition to its multiple sclerosis drug Copaxone. According to the Commission, Teva “artificially extended the patent protection of Copaxone and systematically spread misleading information about a competing product to hinder its market entry and uptake.” Teva allegedly deployed these practices in seven EU countries over a time period ranging from four to nine years depending on the country. Executive Vice-President Margrethe Vestager said, “today’s decision to impose an antitrust fine on Teva for disparagement and misuse of the patent system reaffirms the Commission’s commitment to competition enforcement in the pharmaceutical sector.

Former USPTO Director Endorses Trump Week Before Election

On Wednesday, October 30, Andrei Iancu, U.S. Patent and Trademark Office (USPTO) Director from 2018 to 2021, endorsed Donald Trump for the presidency in a commentary piece for Fortune. Iancu, now co-chair of the Council for Innovation Promotion (C4IP), emphasized China’s growing technological capacity and Vice President Harris’s “hostility” to AI and the biotech industry. “The United States needs policy reforms that enable entrepreneurs and small businesses to achieve their potential. It’s time to make America competitive again,” wrote Iancu.

Study Finds Big Tech Companies and Semiconductors Leading Patent Growth

On Wednesday, October 30, R&D World published a data analysis of patent generation that found the biggest tech companies and the semiconductor industry are growing in terms of share of patent generation. According to the study, the largest 14 tech firms are obtaining patents at a much higher rate than the entire automotive and aerospace industries. Semiconductor companies were second in the analysis and have seen an uptick in patent generation in recent years.

USCO Right to Repair Copyright Exemption Garners Attention Due to McDonald’s Ice Cream Machines

On Monday, October 28, the U.S. Copyright Office (USCO), as part of its final rule adopting exemptions under Section 1201 of the Digital Millennium Copyright Act (DMCA), granted a copyright exemption giving restaurants the “right to repair” broken machines by bypassing digital locks that prevent anyone but the manufacturer from repairing them. The rule has gained media attention for its connection to McDonald’s often-broken ice cream machines which could be positively impacted by the new ruling. Taylor Company is the exclusive provider of ice cream machines to the fast-food giant and were the only people legally allowed to repair the machines. Chair of the Federal Trade Commission (FTC) Lina Khan posted a tweet that went viral detailing the FTC’s support for the change.

Barks

USPTO’s New Rule on Director Review Process Now in Effect

On Thursday, October 31, the U.S. Patent and Trademark Office’s (USPTO) new rule formalizing the interim Director Review process went into effect. The USPTO finalized the rule in September that allows a party to request Director Review in an AIA proceeding of a decision of institution, a final decision, a rehearing decision, or another decision that concludes an AIA proceeding.

UK Court Rules YouTube Shorts Is Not Copyright Infringement

On Thursday, October 31, a United Kingdom court ruled that Google is allowed to use the word “Shorts” for its short-form video platform. Shorts International Limited attempted to argue that Google should not be allowed to use the name because it infringed on its copyright. However, the court ruled, “None of Google’s uses of signs including the word “shorts” gives rise to a likelihood of confusion as to origin.”

Oracle Sues Software Company for Stealing Trade Secrets

On Friday, October 25, Oracle sued software company Procore Technologies for stealing its trade secrets to attract clients. According to the lawsuit, a former Oracle employee took “thousands of trade secrets that encompass Oracle’s years of hard work and many millions of dollars in investment” using his Google Drive and iCloud. Oracle is asking for damages and asking for Procore to stop using the files.

Songwriters Sue Chris Brown and Drake for Copyright Infringement

On Friday, October 25, two songwriters filed a lawsuit against Chris Brown and Drake accusing the musical artists of copyright infringement. The songwriters claimed that Chris Brown and Drake’s No Guidance copied the chorus of their 2016 song I Got It. Additional defendants in the lawsuit include Google, YouTube, and various music labels.

This Week on Wall Street

China Factory Expands for First Time Since April

On Thursday, October 31, China’s National Bureau of Statistics released data that showed the country’s factory capacity increased for the first time since April. The numbers buoyed the stock market and come a month after China’s President Xi Jinping announced plans to strengthen the country’s fiscal policy support in reaction to potential worsening economic numbers.

Reddit Profitable for the First Time with Stock Jumping on AI News

On Tuesday, October 29, social media site Reddit announced third-quarter revenue that showed the company’s first profit at $29.9 million and a 68% increase in revenue after going public earlier this year. The company also reported monthly users at a high of 97.2 million in part thanks to their AI strategies and partnerships. In a letter to shareholders, CEO Steve Huffman said, “This year, we started using AI to translate Reddit’s corpus into other languages, making it more accessible for non-English speakers to enjoy in their native languages.” 

Quarterly Earnings – The following firms identified among the IPO’s Top 300 Patent Recipients for 2023 are announcing quarterly earnings next week (2023 rank in parentheses):

• Monday: NXP Semiconductors (106), Palantir (219)
• Tuesday: None
• Wednesday: QUALCOMM (4), Toyota (7)
• Thursday: None
• Friday: Baxter International (232)