PATENTS AND OTHER IP:PATENTS AND OTHER IP:FROM BASICS TO STRATEGYFROM BASICS TO STRATEGY

David Jacobs, Esq.Gesmer Updegrove LLP

40 Broad StreetBoston, MA 02109

david.jacobs@gesmer.com

WHY PROTECT IP?WHY PROTECT IP?

• MAXIMIZE RETURN ON R&D• GENERATE REVENUE• COMPETITIVE ADVANTAGE• STIMULATE INVESTMENT• M&A CURRENCY• DEFENSIVE TOOL

FORMS OF IPFORMS OF IP

•KNOW-HOW•TRADE SECRETS•COPYRIGHTS•TRADEMARKS•PATENTS

TRADE SECRETSTRADE SECRETS

ANY FORMULA, PATTERN, DEVICE, OR COMPILATION OF INFORMATION WHICH IS USED TO ONE’S ADVANTAGE OVER COMPETITORS WHO DO NOT KNOW OR USE IT.

TRADE SECRETSTRADE SECRETS

NEED:

• AN INTERNAL PROTECTION PROGRAM

• EMPLOYEE AND CONTRACTORS SIGN NDA

• ACTUAL PROCEDURES TO MAINTAIN CONFIDENTIALITY

TRADE SECRETSTRADE SECRETS

TO PROFIT FROM:• USE BUT DON’T DISCLOSE

–RISK OF “REVERSE ENGINEERING”

OR

• LICENSE TO THIRD PARTIES• THEY PROMISE NOT TO DISCLOSE FURTHER • PAY YOU MONEY OR GIVE OTHER BENEFITS

IN RETURN

COPYRIGHTCOPYRIGHT

• PROTECTS THE “EXPRESSION” OF THE IDEA, NOT THE IDEA

• PROTECTS AGAINST COPYING• COMPUTER CODE

–NOT MENUS

• WRITTEN/PRINTED MATERIALS• ART (DESIGN OF ADVERTISEMENTS)• AUDIO• VIDEO

COPYRIGHTCOPYRIGHT

• PROTECTS “DERIVATIVE WORKS”• MODIFICATIONS, TRANSLATIONS,

NEW FORMS

COPYRIGHTCOPYRIGHT

• WORK MADE FOR HIRE• EMPLOYEES• CONTRACTORS – NEED A CONTRACT!

OR• ASSIGNMENT

COPYRIGHTCOPYRIGHT

REGISTRATION

• DESIRABLE BUT NOT NECESSARY

TRADEMARKSTRADEMARKS

• INDICATOR OF “SOURCE OF ORIGIN”• NAME• LOGO• SOUND (HARLEY-DAVIDSON )• COLOR (ORANGE AND GREEN

TROLLEYS)• NON-FUNCTIONAL DESIGN

ELEMENTS

TRADEMARKSTRADEMARKS

THE BRAND NAME CAN BE A VALUABLE ELEMENT OF THE TECHNOLOGY TO BE LICENSED/SOLD

TRADEMARKSTRADEMARKS

• MUST BE “CLEARED”

• CAN BE REGISTERED

• “TM” VS. “R”

• REGISTRATION IS NOT REQUIRED

• ENFORCEMENT: BY OWNER• NO “TRADEMARK POLICE”

PATENTSPATENTS

RIGHT TO EXCLUDE OTHERSFROM:

• MAKING, USING, OR SELLING

• THE INVENTION DEFINED BY THE PATENT CLAIMS

PATENTSPATENTS

• PROTECT SOFTWARE

 • PROTECT "BUSINESS METHODS"

• WHERE ARE WE NOW - POST-AMAZON/EBAY?

PATENTSPATENTS

PROTECT METHODS, APPARATUS,"COMPOSITIONS OF MATTER" IF:

• NEW

• USEFUL • NON-OBVIOUS

PATENTSPATENTS

• PRE-FILING DISCLOSURE MAY NEGATE RIGHTS– Talks/Colloquia

• U.S.: ONE-YEAR "CLOCK“• OVERSEAS: ABSOLUTE NOVELTY• PUBLICATION• "ON SALE"

• “EXPERIMENTAL USE”

PATENTSPATENTS

• SCOPE DEFINED BY "CLAIMS"

• CLAIMS MUST DISTINGUISH OVER "PRIOR ART"

PATENTSPATENTS

PURPOSES:

DEFENSIVE: PREVENT OTHERS FROM USING/DOMINATING

• KEEP ON THE SHELF?

OFFENSIVE:

• COVER EVOLVING TECHNOLOGIES• MAXIMIZE INNOVATION VALUE

PATENTS PATENTS

BENEFITS:

• PROTECT AGAINST INFRINGERS EVEN IF INDEPENDENT INVENTION

• PROMOTES FINANCING

• CLEAR IDENTIFICATION OF PROPERTY TO BE LICENSED

• ENHANCE OTHER IP

• DEFENSIVE CROSS-LICENSING

• BRACKETING - MULTIPLE FEATURES

PATENTSPATENTS

BURDENS:

• DISCLOSURE OF CORE IDEAS

• SIGNIFICANT INPUT FROM KEY PERSONNEL

• FINANCIAL EXPENDITURE• ENFORCEMENT BURDEN

PATENTSPATENTS

PLANNING/EVALUATING:

• DEFINE A PURPOSE

• LINKAGE WITH STRATEGIC OBJECTIVES

• PROBABLE SCOPE OF PROTECTION

• POTENTIAL FOR ENFORCEABILITY

• ENFORCEMENT BURDEN (COST, DISCLOSURE)

• ALTERNATIVE PROTECTION

PATENTSPATENTS

ACTION ITEMS:

• INVENTORY INTELLECTUAL ASSETS

• COUNSEL CONFER WITH KEY PERSONNEL

• IDENTIFY IP RISKS POSED BY OTHERS

• IP ASSETS PROTECTABLE BY PATENT

• COORDINATE PATENT WITH OTHER IP

• PATENT FILINGS/LICENSING

CASE STUDIESCASE STUDIES

• Ebay

• Eolas v. Microsoft

• SCO v. IBM

• FTC Reform Proposal

• Patent Insurance