Official Explanation
1. Which of the following cautions does the passage offer to companies that are engaged in the development or public use of software in some capacity?
Difficulty Level: 700+
Explanation
This is a Retrieval question, as indicated by the phrase does the passage offer. The task is to determine [w]hich cautions…the passage offer[s]. The subject of the question is cautions…to companies that are engaged in the development of public use of software in some capacity. In order to answer the question, determine what the passage states about the subject and evaluate the answer choices, eliminating any choice that cannot be supported by the text. The main caution to software developers comes at the end of the first paragraph. According to the passage, when multiple patents exist for a single idea, there has sometimes been sufficient evidence to award one patent holder damages from companies that have designed software using an idea expressed in another, similar patent. The last paragraph amplifies this warning with an actual example of a “patent troll” that profited from lawsuits based on undue claims of patent infringement.
Choice A: No. The concept that companies that file patents may have difficulty with legal defense in infringement cases may make this choice seem appealing. However, this choice is only a memory trap. The example at the end of the passage indicates that some companies may opt for out-of-court settlement to avoid the financial burden of legal defense. It does not follow that companies might not be able to use their patents as a legal defense.
Choice B: No. The phrase financial setback of…a lawsuit if they choose to take their cases to trial is reminiscent of the text at the end of the fourth paragraph in describing the outcome of patent infringement lawsuits for the use of streaming video. However, this choice is too extreme to be supported by the text. In the example given in the fourth paragraph, for most companies the financial burden of waging a legal defense made an out-of-court settlement the more pragmatic option. The choice by most companies to settle these particular cases out of court does not support the general idea that companies that choose to take their cases to trial would seldom recover financially.
Choice C: No. The reference to companies that design software to be compatible with existing devices may be tempting, recalling ideas from the third paragraph, but this choice is only a memory trap. While the passage associates the idea of significant cost with intellectual property lawsuits, it makes no recommendation that companies ought to obtain the rights to patented ideas, and the costs of such transactions are never discussed in the passage.
Choice D: Correct. This choice is supported by the passage. The statement at the end of the first paragraph that there has sometimes been sufficient evidence to award one patent holder damages from companies that have designed software using an idea expressed in another, similar patent, indicates that companies that hold patents may not be sufficiently protected by those patents.
Choice E: No. The language of companies that utilize common software features on their websites may make this choice appealing, as it recalls ideas from the second paragraph. However, the word inevitably is extreme, and the prediction made in this answer choice is not supported by the passage. The passage refers to situations that resulted in lawsuits but does not indicate that lawsuits are always the outcome of [utilizing] common software features.
The correct answer is choice D.
2. The passage most clearly implies that which of the following is true concerning website features, the concepts of which are eligible for patent protection?
Difficulty Level: 700
Explanation
The word implies in the question stem indicates that this is an inference question. The task of the question is indicated by the phrase which of the following is true. The subject of the question is website features, the concepts of which are eligible for patent protection. In order to answer the question, determine what the passage states about website features whose concepts are eligible for patent protection. Then, evaluate the answer choices, eliminating any choice that is not supported by the text. Web-based features are discussed in the second paragraph, which states that it is not unusual to see identical interactive features on dozens of websites across a single industry. The abundance of web-based consumer transactions makes it unreasonable to stipulate that unrestricted use of a convenient feature, such as an online shopping cart, be limited to the website of the company whose developer first conceptualized it.
Choice A: No. Extreme language, such as their patents are void, should raise suspicion about choice A. According to paragraph one, when multiple patents exist for a single idea, there has sometimes been sufficient evidence to award one patent holder damages from companies that have designed software using an idea expressed in another, similar patent. Thus, it is not the case that patents covering website features are necessarily void when there is more than one patent that covers the same general concept.
Choice B: No. The phrase their patents are so vague is an example of extreme language. The passage does not suggest that patents for website features are always vague, so choice B makes too strong a claim. Moreover, according to paragraph four, companies sometimes opt to settle out of court because of the financial burden of waging a legal defense. Thus, a company holding a patent for website features might be able to motivate another company to offer a settlement, even if the patent is vague.
Choice C: No. This is a no such comparison answer. Choice C states that website features are more likely than other patent-protected software concepts to be the subject of infringement lawsuits brought by “patent trolls.” Nowhere does the passage make such a comparison.
Choice D: Correct. According to paragraph two, as the importance of maintaining a consumer-friendly web presence has grown, it is not unusual to see identical interactive features on dozens of websites across a single industry. The abundance of web-based consumer transactions makes it unreasonable to stipulate that unrestricted use of a convenient feature . . . be limited. This supports the idea that website features are likely to be considered essential components of doing business effectively within certain industries.
Choice E: No. The phrases so unreasonable and no company are examples of extreme language. Paragraph two considers restrictions on the use of convenient website features unreasonable. However, patents covering less-convenient website features may be reasonable. Thus, the idea that they are so unreasonable that no company is able to independently defend its patent ownership rights in a jury trial is too strong a claim.
The correct answer is choice D.
3. The final paragraph of the passage accomplishes which of the following tasks?
Difficulty Level: 700+
Explanation
The phrase the passage accomplishes indicates that this is a structure question. The task of the question is indicated by the phrase which of the following tasks. The subject of the question is the final paragraph of the passage. In order to answer the question, determine the flow of ideas in the final paragraph. Then, evaluate the answer choices, eliminating any choice that does not match the structure of the final paragraph. The final paragraph introduces a particularly egregious case of patent abuse, in which one company sued dozens of well-known companies for the use of streaming video. Although the “patent troll” ultimately lost its case . . . it had already earned millions from its claim. The example of this particular company is used to make the point that for most companies the financial burden of waging a legal defense made an out-of-court settlement the more pragmatic option.
Choice A: No. Choice A is a memory trap. While the final paragraph does include a case study, the study demonstrates the dangers posed by a “patent troll” engaging in lawsuits based on undue claims of patent infringement. It is not at all clear that the well-known companies sued were innovative companies of the type discussed in previous paragraphs. Moreover, the final paragraph does not review information already given in the passage.
Choice B: No. Choice B is a memory trap. While the paragraph might be thought to describe a risk faced by companies met with infringement lawsuits (namely, the financial burden of waging a legal defense), it does not offer suggestions about the risks that companies should take into consideration when debating a course of action.
Choice C: No. Choice C is a memory trap. The phrase gross instance of patent abuse is reminiscent of the phrase a particularly egregious case of patent abuse in the final paragraph. The phrase affected some companies differently than it did others recalls the claim in the final paragraph, that while a handful of companies were willing to take the case to trial, for most companies . . . an out-of-court settlement was more pragmatic. However, there is nothing in the paragraph to indicate that the case was surprising to the author for that reason.
Choice D: No. Choice D is a memory trap. The first paragraph presents an additional quality unique to software patents that makes them particularly vulnerable to abuse. Namely, innumerable software patents . . . also protect the concept behind the software. The third paragraph expands upon this idea by considering a hypothetical startup that develops a smart phone application. The startup could be sued and bankrupted even though the application itself was a novel idea. However, these are not tasks accomplished by the final paragraph.
Choice E: Correct. Choice E matches the structure of the final paragraph, which recounts a specific example of a problem that arose from impractical circumstances that are explained more generally elsewhere in the passage. The specific example of a problem refers to the egregious case of patent abuse. The impractical circumstances from which this problem arose include the fact that some companies generate revenue by pursuing patent infringement cases, and that the patenting of concepts can actually stifle the innovation that patents should encourage.
The correct answer is choice E.
4. It can be inferred from the passage that which of the following provides sufficient grounds for one company to file a lawsuit against another for patent infringement?
Difficulty Level: 700
Explanation
The phrase it can be inferred indicates that this is an inference question. The task of the question is indicated by the phrase from the passage. The subject of the question is indicated by the phrase sufficient grounds for one company to file a lawsuit against another for patent infringement. In order to answer the question, determine what the passage states about the grounds that would be sufficient for one company to file a lawsuit against another for patent infringement. Then, evaluate the answer choices, eliminating any answer that is not supported by the text. According to the passage, sufficient grounds include unauthorized use of the exact language of a software code or of the concept behind the software. Additional grounds include cases in which multiple patents exist for a single idea, and in which the theory behind the compatibility of . . . an application had been patented . . . even though the application itself was a novel idea.
Choice A: No. Choice A constitutes a reversal of the information in the passage. According to paragraph two, the abundance of web-based consumer transactions makes it unreasonable to stipulate that unrestricted use of a convenient feature . . . be limited to the website of the company whose developer first conceptualized it. Therefore, utilizing the same interactive web features on its consumer-facing website does not provide sufficient grounds for a company to file a lawsuit.
Choice B: No. Recycled language, such as patent portfolio and operating system, should raise suspicion about choice B. The passage laments the fact that a number of companies have sprung up for the sole purpose of amassing software patent portfolios. However, the fact that a company has a substantial patent portfolio does not by itself provide sufficient grounds for one company to file a lawsuit against another for patent infringement.
Choice C: No. Choice C is a memory trap. Its reference to a startup recalls the discussion of a hypothetical startup in paragraph three, and the fact that the startup also has a contract with a competitor for a similar product recalls the discussion, in paragraph one, of software designed using an idea expressed in another, similar patent. However, choice C makes no mention of patents that could be used to file a lawsuit, and the fact that the startup has contracts with two companies does not by itself provide sufficient grounds for one company to file a lawsuit against another for patent infringement.
Choice D: Correct. Paragraph three discusses a hypothetical startup. If a startup developed an application that was compatible with that operating system, but the theory behind the compatibility . . . had been patented . . . the startup could be sued and bankrupted even though the application itself was a novel idea. Thus, a company that develops a unique, interactive web feature that is based on a theory that is already patented provides sufficient grounds for one company to file a lawsuit against another for patent infringement. The owner of the patent is irrelevant.
Choice E: No. Recycled language, such as the U.S. Patent and Trademark Office, should raise suspicion about choice E. In paragraph one, the author mentions the U.S. Patent and Trademark Office, and also refers to what can happen when multiple patents exist for a single idea. However, this answer states only that a company submits an application to . . . patent a software concept, and not that the patent was approved. Merely submitting an application for a patent is not referred to by the author as sufficient grounds for one company to file a lawsuit against another for patent infringement.
The correct answer is choice D.