Intellectual Property Primer

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<ul><li>1.Intellectual Property : Patents, Copyrights, Trademarks and Trade Secrets Robert S. MacWright, Ph.D., Esq. Executive Director and CEO University of Virginia Patent Foundation</li></ul> <p>2. What do we mean by Intellectual Property? </p> <ul><li>Of the intellect; created in the mind </li></ul> <ul><li>Intangible; value is derived from concepts, not a physical existence </li></ul> <ul><li>Subject to protection under the law </li></ul> <p>3. IP Rights Are Provided Forinthe U.S. Constitution </p> <ul><li>Article I, Section 8 : The Congress shall have power to promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries</li></ul> <p>4. The Key Forms of IP Protection </p> <ul><li>Patentscover compounds, machines and processes </li></ul> <ul><li><ul><li>Give the right to exclude others from making, using, offering for sale, selling, importing </li></ul></li></ul> <ul><li>Copyrightscover works of authorship reduced to a tangible means of expression </li></ul> <ul><li><ul><li>Give exclusive rights to copy, distribute, perform, display, make derivative works </li></ul></li></ul> <ul><li>Trademarksindicate source of goods and services </li></ul> <ul><li><ul><li>prevent others from passing off </li></ul></li></ul> <ul><li>Trade Secretsare legally protected secrets </li></ul> <ul><li><ul><li>misappropriation is unlawful, but reverse engineering is fair game </li></ul></li></ul> <p>5. Patents </p> <ul><li>Contract theory : the Government gives an inventor a period of exclusive use in exchange for full disclosure of the invention to the public </li></ul> <ul><li>Gives the right toexclude all othersfrom making, using, offering for sale, selling, or importing </li></ul> <ul><li><ul><li>Does NOT give a right to make or sell a product, e.g., a patent on making illegal drugs doesnt make them legal </li></ul></li></ul> <ul><li>Patent awarded only if invention is found useful, novel, and non-obvious </li></ul> <ul><li>Expire 20 years after the patent was applied for </li></ul> <ul><li>Cover U.S only; foreign patents may be needed</li></ul> <p>6. Types of Patents </p> <ul><li>Utility Patent : issued to protect any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof(USC 35101) </li></ul> <ul><li>Plant Patent : A sexuallyreproduced varieties of plants that are novel, distinct and nonobvious, e.g., hybrid corn</li></ul> <ul><li>Design Patent : issued to original, novel, nonobvious ornamental designs for articles of manufacture (term is only 14 years from date of issue). </li></ul> <p>7. What is Patentable? </p> <ul><li> Anything under the sun made by the hands of man </li></ul> <ul><li>New chemical compounds, e.g., drugs, pesticides </li></ul> <ul><li>Methods of producing new compounds </li></ul> <ul><li>New uses for old compounds </li></ul> <ul><li>Purified natural materials, e.g., DNA, enzymes </li></ul> <ul><li>New formulations or mixtures, e.g., alloys, shampoo </li></ul> <ul><li>Transgenic animals or plants (excluding humans) </li></ul> <ul><li>Methods of performing a function by computer software</li></ul> <ul><li>Methods of doing business </li></ul> <ul><li>Methods of processing digital signals </li></ul> <ul><li>Tire tread pattern, clothing (design patents) </li></ul> <p>8. How to Get a Patent </p> <ul><li>Youmayfile a provisional patent application, which gives you a priority date you canrely on for up to 1 year </li></ul> <ul><li>Two strategies: </li></ul> <ul><li><ul><li>If you only want a U.S. patent, file a regular patent application in the US Patent and Trademark Office (PTO) </li></ul></li></ul> <ul><li><ul><li>If you want US and foreign patents, file a Patent Cooperation Treaty (PCT) application </li></ul></li></ul> <p>9. Deadlines, Deadlines, Deadlines! </p> <ul><li>To benefit from the provisional application, you must file within 1 year of its filing date </li></ul> <ul><li>You must convert the PCT application into individual U.S. and foreign applications within 30 months of the earliest filing date </li></ul> <ul><li>You must respond to PTO correspondence within 3 months (but you can buy up to three one-month extensions!) </li></ul> <p>10. Parts of a Patent Specification </p> <ul><li>The Written Description (35 USC112) </li></ul> <ul><li><ul><li>Must describe the invention and the manner and process of making and using it </li></ul></li></ul> <ul><li><ul><li>Must be clear, concise, and exact</li></ul></li></ul> <ul><li><ul><li>Often includes examples and figures </li></ul></li></ul> <ul><li>The Claims </li></ul> <ul><li><ul><li>Numbered formal paragraphs at the end that define the boundaries of the patent monopoly you seek </li></ul></li></ul> <ul><li><ul><li>The claims are the battleground of examination! </li></ul></li></ul> <ul><li><ul><li>Whatever is not claimed in the final patent is dedicated to the public, and anyone can use it for free </li></ul></li></ul> <p>11. What a Patent Examiner Looks For </p> <ul><li><ul><li>Utility : Demonstrated use or proposed use one of ordinary skill in the art would believe( 101) </li></ul></li></ul> <ul><li><ul><li>Novelty : Not fully described inonepatent or publication&gt; 1 year before youfiled (the prior art)( 102a) </li></ul></li></ul> <ul><li><ul><li>Non-obviousness : One of ordinary skill notmotivatedtocombineprior art to reach theinvention( 103) </li></ul></li></ul> <ul><li><ul><li>Enablement : One of ordinary skill can carry it without undue experimentation( 112) </li></ul></li></ul> <ul><li><ul><li>Best Mode : Gives best known way of making and using it when application was filed( 112) </li></ul></li></ul> <p>12. A Typical Examination Process </p> <ul><li>1-4 YEARS before they read it! </li></ul> <ul><li>First office action rejects all claims</li></ul> <ul><li>Your amendment traverses rejections</li></ul> <ul><li>A FINAL office action rejects most claims again </li></ul> <ul><li><ul><li>some for old reasons, some for new reasons </li></ul></li></ul> <ul><li>You file a Request for Continued Examination, and amend the claims to overcome the rejections </li></ul> <ul><li>Another FINAL office action rejects most claims </li></ul> <ul><li>You request an interview with the examiner to haggle out some compromise claims </li></ul> <ul><li>You finally get a Notice of Allowance </li></ul> <ul><li>By now, it may be 3-6 YEARS since you applied! </li></ul> <p>13. Patenting Costs are BIG! </p> <ul><li>$1,000 to $10,000 to file a provisional </li></ul> <ul><li>$7,000 to $15,000 to prepare and file a PCT application </li></ul> <ul><li>$2,500 to nationalize in the US </li></ul> <ul><li><ul><li>$3,000 each for Canada, Australia </li></ul></li></ul> <ul><li><ul><li>$5,000 for Europe, $7,000 for Japan </li></ul></li></ul> <ul><li><ul><li>Over $100,000 to convert in all developed countries! </li></ul></li></ul> <ul><li>Downstream prosecution costs in the US, $5,000 to $10,000;and similar amounts in other countries! </li></ul> <ul><li>Issue fees of several $ thousand per country</li></ul> <ul><li><ul><li>each country in Europe collects separately! </li></ul></li></ul> <ul><li>Escalating maintenance fees of $450-4,000 in the US; annual annuities in most foreign countries!</li></ul> <p>14. Patent Term </p> <ul><li>Utility and plant patents last until 20 years after your earliest filing date </li></ul> <ul><li>If it takes 3-6 years to get your patent, it lasts 14 to 17 years </li></ul> <ul><li>You automatically get extensions for unreasonable PTO delays </li></ul> <ul><li>You can apply for extensions for delays in the FDA approval process </li></ul> <p>15. So, How Does a Company Benefit? </p> <ul><li>Market exclusivity justifies big investments in producing the patented product </li></ul> <ul><li><ul><li>New drugs are said to cost $400 million! </li></ul></li></ul> <ul><li><ul><li>New factories are sometimes needed </li></ul></li></ul> <ul><li>Claims that go beyond the planned product provide blocking to prevent others from making similar products </li></ul> <ul><li>Customers attracted by the proprietary product may buy other goods </li></ul> <p>16. Patents Are Often Licensed </p> <ul><li>A license is a contract in which the patent owner allows a company to make, use, offer for sale, sell, and/or import the patented article or use the patented method </li></ul> <ul><li>In exchange, the licensee company pays the patent owner royalties (usually a % of sales) and otherpayments (e.g., up-front, milestone fees) </li></ul> <ul><li>Even big companies today license out their un-used patents, through internal intellectual asset management (IAM) programs </li></ul> <ul><li>Royalties on huge products can be huge! </li></ul> <p>17. What CANT a Patentee Do? </p> <ul><li> Patent Misuse is requiring a licensee to: </li></ul> <ul><li><ul><li>Buy staple articles of commerce from the patentee (Tying) </li></ul></li></ul> <ul><li><ul><li>Pay royalties after the patent expires </li></ul></li></ul> <ul><li><ul><li>Agree not to sell competing products </li></ul></li></ul> <ul><li><ul><li>Include in the license patents they dont want </li></ul></li></ul> <ul><li><ul><li>Charge a certain price </li></ul></li></ul> <ul><li><ul><li>Restrain resale rights of buyers </li></ul></li></ul> <ul><li>All of these give the patent owner more market power than the patent laws intend, and may alsoviolate the antitrust laws </li></ul> <p>18. Types of Patent Infringement </p> <ul><li>Direct Infringement : to make, use, offer to sell or sell a patented article in the U.S., or import it into the U.S., during the term of the patent. </li></ul> <ul><li>Inducement : acting to cause, encourage or enable someone else to infringe (e.g., promoting a generic drug by saying it can be used for a patented use.) </li></ul> <ul><li>Contributory Infringement : Selling a component of a patented machine, knowing that it is specially adapted for use in infringement </li></ul> <p>19. Infringement Lawsuits </p> <ul><li>The only way to protect your patent rights </li></ul> <ul><li> Compulsory counterclaim ofinvalidity </li></ul> <ul><li>At Markman Hearing, judge interprets claims </li></ul> <ul><li><ul><li>often results in quick settlement </li></ul></li></ul> <ul><li>Legal fees for each side will be $2-4 MILLION! (Which is why 98% of patent suits get settled) </li></ul> <ul><li>If you win, you get: </li></ul> <ul><li><ul><li> reasonable royalty damages </li></ul></li></ul> <ul><li><ul><li> lost profits damages </li></ul></li></ul> <ul><li><ul><li>An INJUNCTION (some settle to get a license) </li></ul></li></ul> <ul><li><ul><li>If infringement was willful, TRIPLE damages! </li></ul></li></ul> <p>20. Avoiding Common Problems </p> <ul><li>Search for patentsbeforeyou develop products ( ) </li></ul> <ul><li>Get apatentability opinionbefore you file your patent </li></ul> <ul><li>Get aclearance opinionto identify any patents that may be in the way of selling a particular product </li></ul> <ul><li>If a patent is in your way,</li></ul> <ul><li><ul><li>Get anon-infringement and/or invalidity opinion </li></ul></li></ul> <ul><li><ul><li>Take a license </li></ul></li></ul> <ul><li><ul><li> Invent around</li></ul></li></ul> <ul><li>REMEMBER, PATENTS CAN OVERLAP! </li></ul> <ul><li><ul><li>JUST BECAUSE YOU HAVE A PATENT DOESNT MEAN YOU ARENT INFRINGING ANOTHER PATENT! </li></ul></li></ul> <p>21. What Copyrights Cover(17 USC102) </p> <ul><li>Coveroriginal works of authorship , e.g., literary works, music and lyrics, dramatic works, pantomimes, pictures, sculpture, motion pictures, sound recordings, architectural works, computer software </li></ul> <ul><li>Must be fixed in a tangible medium of expression , e.g., printed book,sound recording, videotape, script, handwritten notes (like yours!) </li></ul> <ul><li>Does NOT cover any idea, procedure, process, system, method of operation, concept, principle, or discovery </li></ul> <p>22. Duration of Copyright </p> <ul><li>Subsists from the moment of creation </li></ul> <ul><li>Term: </li></ul> <ul><li><ul><li>For works by individual author(s),</li></ul></li></ul> <ul><li><ul><li><ul><li>For the authors life and 70 yrs after death </li></ul></li></ul></li></ul> <ul><li><ul><li>For works for hire, anonymous or pseudonymous works,</li></ul></li></ul> <ul><li><ul><li><ul><li>120 yrs from creation or 95 yrs from first publication, whichever expires first </li></ul></li></ul></li></ul> <p>23. Rights Under Copyright Law (17 USC106) </p> <ul><li>Reproduce the work in copies or phonorecords </li></ul> <ul><li>Prepare derivative works </li></ul> <ul><li>Distribute copies or phonorecords by sale, rental, lease or lending </li></ul> <ul><li>Perform the work publicly (e.g., movies, songs) </li></ul> <ul><li>Display the work publicly (e.g., sculpture, photos) </li></ul> <p>24. Copyright Notice Basics </p> <ul><li>Notice is optional, but is advisable </li></ul> <ul><li>Serves as a no trespassing sign </li></ul> <ul><li>One mark covers everything no need for many </li></ul> <ul><li>Several appropriate forms: </li></ul> <ul><li> 2005 UVA Patent Foundation </li></ul> <ul><li>Copyright 2005 UVA Patent Foundation </li></ul> <ul><li>Copr. 2005 UVA Patent Foundation </li></ul> <ul><li>Adding ALL RIGHTS RESERVED may provide greater protection, e.g., in South America </li></ul> <p>25. Copyright Registration </p> <ul><li>Not required to protect copyright, which exists from the moment of creation </li></ul> <ul><li>Required prior to filing an infringement lawsuit </li></ul> <ul><li>If you file registration BEFORE infringement occurs, you can </li></ul> <ul><li><ul><li>Obtain statutory damages up to $200K</li></ul></li></ul> <ul><li><ul><li>Obtain award of attorneys fees </li></ul></li></ul> <ul><li>Very cheap!Fee is only $40 </li></ul> <p>26. How to Register </p> <ul><li>Simple you can do it yourself! </li></ul> <ul><li><ul><li>A two-page form </li></ul></li></ul> <ul><li><ul><li>Must send in 2 copies of most works </li></ul></li></ul> <ul><li><ul><li><ul><li>One for deposit, other for Library of Congress </li></ul></li></ul></li></ul> <ul><li>See Copyright Office website for forms, instructions ( ) </li></ul> <ul><li>Cheap insurance - File on each new version or edition </li></ul> <p>27. Copyright Fair Use </p> <ul><li>Exempts certain acts from copyright infringement </li></ul> <ul><li>Applies to criticism, comment, news reporting, teaching, scholarship, or research </li></ul> <ul><li>Applied on a case-by-case basis, considering: </li></ul> <ul><li><ul><li>Commercial or non-commercial purpose</li></ul></li></ul> <ul><li><ul><li>Nature of the work </li></ul></li></ul> <ul><li><ul><li>Substantiality of portion used </li></ul></li></ul> <ul><li><ul><li>Effect on potential market for the original work </li></ul></li></ul> <p>28. Copyright Infringement Lawsuits </p> <ul><li>Central issue : The copyright owner must prove derivation, e.g., that their work was copied </li></ul> <ul><li>Often clear-cut, e.g., bootleg music recordings, internet MP3 file sharing </li></ul> <ul><li>Sometimes very complicated! </li></ul> <ul><li><ul><li>Sophia Stuart sued Warner Bros. and 20 thC. Fox, saying her 41-page story The Third Eye was basis for the Terminator and Matrix </li></ul></li></ul> <ul><li><ul><li>The 1971 Beatles hit, My Sweet Lord was found to infringe the 1962 Chiffons song Hes so Fine due to subconscious copying </li></ul></li></ul> <p>29. Music Copyrights </p> <ul><li>Subject tocompulsory licensing:others can perform your songs, subject to paying you a royalty, which is determined by a Royalty Judge</li></ul> <ul><li>If you play a radio in your restaurant, you have to pay royalties for each song! </li></ul> <ul><li>Royalties are policed and collected by ASCAP, the American Society of Composers, Authors and Publishers </li></ul> <ul><li><ul><li>calculated statistically, based on type of music played </li></ul></li></ul> <p>30. Trademarks </p> <ul><li>A trademark is a word, phrase, symbol, design, slogan, or combination thereof </li></ul> <ul><li>It identifies and distinguishes the source of goods or services</li></ul> <ul><li>Protected under State law and under Federal law </li></ul> <ul><li><ul><li>TM marking is a no trespassing sign under State common law </li></ul></li></ul> <ul><li><ul><li>SM indicates a state law service mark, usually a slogan </li></ul></li></ul> <ul><li><ul><li>indicates Federal registration has been granted </li></ul></li></ul> <p>31. Some Well-known Tradmarks </p> <ul><li>McDonalds, WalMart, IBM, GM, Mariott, Delta, Microsoft, Dominos, Budweiser, Polo, Mattel </li></ul> <ul><li>The Golden Arches, an apple with a bite out of it, five interlocking rings, 2 overlapping Rs </li></ul> <ul><li> You deserve a break today, The Greatest Show on Earth, "All the world loves a Coke, The Big Apple, What's up, Doc?, Got Milk?</li></ul> <ul><li>Shape of the Heinz catsup bottle, shape of the original Coca-Cola bottle (trade dress) </li></ul> <p>32. Unusual Trademarks </p> <ul><li>Owens Corning has a trademark on the color pink for fiberglass insulation </li></ul> <ul><li>AOL has a trademark on the sound of Youve got mail when e-mail arrives </li></ul> <ul><li>American Family Life Assurance Co. has a trademark on the sound of a duck quacking"AFLAC </li></ul> <ul><li>In 1991 the first trademark registration was issued on a smell!The trademark on scented sewing thread and embroidery yarn describes the smell as "a high impact, fresh, floral fragrance reminiscent of plumeria blossoms."</li></ul> <p>33. Federal Trademark Registration </p> <ul><li>Granted only if: </li></ul> <ul><li><ul><li>there is no likelihood of confusion</li></ul></li></ul> <ul><li><ul><li>mark is unique or has secondary meaning </li></ul></li></ul> <ul><li>Covers limited categories of goods and services </li></ul> <ul><li>Trumps State law rights of others </li></ul> <ul><li>Must be renewed every 5 years </li></ul> <p>34. Federal Registration(Contd) </p> <ul><li>Only for important marks with wide-spread or long-term value </li></ul> <ul><li>Not cheap: $370 or$740 fee just to file, plus attorneys fees</li></ul> <ul><li>Seewww.uspto.govfor Forms and instructions </li></ul> <ul><li>Decide which classes, subclasses you want </li></ul> <ul><li>Probably best to hire a trademark lawyer </li></ul> <ul><li><ul><li>Simple forms, complex rules </li></ul></li></ul> <ul><li><ul><li>Rejections require formal written answers </li></ul></li></ul> <p>35. Trademark Clearance </p> <ul><li>Before adopting a mark,SEARCH </li></ul> <ul><li><ul><li><ul><li>Trademark registry (at , phone books, internet </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Thompson &amp; Thompson searches are the gold standard, and not too expensive </li></ul></li></ul></li></ul> <ul><li><ul><li>Considerlikelihood of confusion </li></ul></li></ul> <ul><li><ul><li>Check to see if they are active or expired </li></ul></li></ul> <ul><li><ul><li>Consider contacting owners of close marks about a concurrent use agreement </li></ul></li></ul> <ul><li><ul><li>(Hint - you may want to clear the mark you pick for the company in your class project!) </li></ul></li></ul> <p>36. Pick Your Own Marks Carefully! </p> <ul><li>Poor picks are expensive in the long run </li></ul> <ul><li><ul><li>Challenges can be stressful and expensive </li></ul></li></ul> <ul><li><ul><li>Changing later means lost good-will, reputation </li></ul></li></ul> <ul><li>Ask friends about how marks sound </li></ul> <ul><li> live with a few before choosing </li></ul> <ul><li>Watch out for un-intended meanings!</li></ul> <ul><li><ul><li>The Chevrolet Nova didnt sell in South America </li></ul></