October 2011

Patently-O Bits & Bytes by Lawrence Higgins

Patent

Apple and the Slide to Unlock Patents!

  • On October 25, 2011 the USPTO granted Apple a patent (8,046,721) for "Unlocking a device by performing gestures on an unlock image". Almost every touchscreen smartphone manufactured, uses slide to unlock technology. It seems like the Apple patent, could potentially be a problem for smartphone manufactures. However, many individuals propose that this patent should not have been issued because of the prior art that was available, such as the Neonode N1m which has been discontinued. It seems like many people forgot that Apple already has patented the slide to unlock feature, (Patent 7,657,849—which is cited in the "721" patent) so unless the Neonode has related prior art before December 23, 2005, the Neonode is not prior art. The "721" patent is a continuation of the "849" patent, therefore the "849" patent is not counted as prior art. As a result, the "849" patent is not invalid in light of the "721" patent, and most likely if the prior "721" patent has not been found invalid, nor will the "849" patent. [Patent] [Neonode] [Link]

Sony Buys Ericsson Patents and Holdings for $1.5 Billion

  • Sony Ericsson has ended its joint venture and the 2 companies will go their separate ways. Sony paid Ericsson nearly $1.5 billion for the mobile phone joint venture, which will give Sony rights to smartphone patents held by Ericsson. Sony now expects to try to increase their market share. Sony held a market share of 11 percent (by value) in the Android phone market in the last quarter, representing 80 percent of the company's third quarter sales. 2011 has been the year of billion dollar patent deals, and it can be expected that many more patent deals relating to smartphones will be made in the future. [Link] [Link]

Call for Papers!

  • The Third Annual Special Issue and Symposium for the Review of IP law (RIPL) will take place on April 19, 2012 in Chicago. The general theme will be "IP Law of China and the US" and subthemes cover the implementation of the new Chinese patent, copyright and trademark laws and theoretical or practical aspects of the cooperation of the IP laws of the US and China.

     

    The Special Issue and Symposium aims to gather professional and scholars from many disciplines including IP, international law, international business, ethics, and economic theory. The Symposium will bring an inspiring group of individuals to publish their writings and present their works at the symposium. [Link]

     

Patent Jobs:

  • Apple is seeking a patent portfolio manager, with a minimum 5 years of patent preparation experience. [Link]
  • Klarquist Sparkman, LLP is searching for litigation associates with 1-2 years of experience in IP litigation. [Link]
  • Klarquist Sparkman, LLP is looking for a biotechnology patent associate or patent agent with 3+ years of experience. [Link]
  • Bacon & Thomas is seeking a patent attorney with 1-4 years of experience and a mechanical or electrical background. [Link]
  • Global Patent Group is searching for a patent attorney or patent agent with a background in plant biology and a Ph.D. [Link]

Upcoming Events:

  • On October 28, the Annual Utah Cyber Symposium will take place. The Symposium will provide business and legal decision-makers in attendance from the business, academic, and legal communities a forum to learn more about legal and business challenges and opportunities facing the high tech industry today. Key business and legal leaders will instruct on how to improve your professional performance and bottom line, including the DOJ, Venture Capitalists, Professors, Business Leaders and Leading Attorneys. [Link]
  • The Chicago-Kent Intellectual Property Law Society is hosting the "Patent Wars Round Table" on November 2, 2011 at 5:30 PM. The event will include a panel discussion on current trends in IP law, namely, the recent paradigm shift in patent strategy and valuation in mobile device companies. Panelists include David Ruder of RPX, Ragnar Olson of Global IP, John Paniaguas of Katten Muchin, and Pat Burns of Greer, Burns & Crain, and will be moderated by Professor Christopher Seaman of Chicago-Kent. Cost is $20 and includes open bar and appetizers. [Link]
  • K&L Gates is holding a free webinar on Nov. 3 entitled "How the Patent Reform Act will Impact Your Business." The Act includes many changes, large and small, affecting subjects as far-reaching as the available appeals from reexaminations to the subject matter eligibility of tax planning methods and human organisms. The webinar will include a presentation and question and answer session. [Link]
  • Whittier Law School's Center for IP Law and Law Review will host the 29th Annual Law Review Symposium: The Law of the Smart Phone on November 4th. The symposium will feature presentations and panel discussions devoted to the privacy, regulation, economics, and intellectual property issues surrounding smart phone technology. Guest speakers include, Gerald Faulhaber, Mark Roark, Alan Friel, Susan Freiwald and many others. [Link]
  • World Research Group, an official Patently-O Jobs sponsor, is hosting the 3rd Annual Social TechNet Intellectual Property Forum Nov. 16-17 in New York. This conference provides solutions to the most prevalent in-house software and online IP protection and management issues. (Patently-O readers can save $200 by using promo code ABY668) [Link]
  • IBC will hold a Standards and Patents Conference in London on November 16th & 17th. The conference will analyze the interplay between standards, intellectual property and competition law. There will be 28 speakers representing various organizations, such as, the European Commission, Mr. Justice Floyd, IBM, Qualcomm Europe, Nokia, GE Healthcare and Intel. (Patently-O readers receive a 10% discount) [Link]
  • IBC will hold a US Patent Reform Congress Conference on November 18th in London. The conference will focus in the impact of the Leahy-Smith America Invents for the European practitioner, with expertise from the EPO, AIPLA, USPTO and more. (Patently-O readers receive a 10% discount) [Link]
  • The American Conference Institute's 2nd Annual Forum on: Paragraph IV Disputes will be held in San Francisco on December 7th. Experienced faculty of renowned litigators and judges will guide attendees through every stage of a Paragraph IV challenge to help them formulate offensive moves and defensive plays. (Patently-O readers can receive a discount by registering with code PO 200) [Link]
  • IBC Legal is holding a conference on International Patent Litigation 2011 in London on December 7th-8th. Use VIP Code FKW82249PO to get a 10% discount. [Link]
  • The WSBA IP Section, WSPLA, IEEE IP Professional Initiative, and the University of Washington School of Law's Law, Technology & Arts Group will be presenting an all day CLE at the University of Washington School of Law on Friday, December 9, 2011 on the impacts of the America Invents Act.

Contact Lawrence.Higgins@patentlyo.com with leads for future Bits and Bytes.

 

Patently-O Bits & Bytes by Lawrence Higgins

Patent

Apple and the Slide to Unlock Patents!

  • On October 25, 2011 the USPTO granted Apple a patent (8,046,721) for "Unlocking a device by performing gestures on an unlock image". Almost every touchscreen smartphone manufactured, uses slide to unlock technology. It seems like the Apple patent, could potentially be a problem for smartphone manufactures. However, many individuals propose that this patent should not have been issued because of the prior art that was available, such as the Neonode N1m which has been discontinued. It seems like many people forgot that Apple already has patented the slide to unlock feature, (Patent 7,657,849—which is cited in the "721" patent) so unless the Neonode has related prior art before December 23, 2005, the Neonode is not prior art. The "721" patent is a continuation of the "849" patent, therefore the "849" patent is not counted as prior art. As a result, the "849" patent is not invalid in light of the "721" patent, and most likely if the prior "721" patent has not been found invalid, nor will the "849" patent. [Patent] [Neonode] [Link]

Sony Buys Ericsson Patents and Holdings for $1.5 Billion

  • Sony Ericsson has ended its joint venture and the 2 companies will go their separate ways. Sony paid Ericsson nearly $1.5 billion for the mobile phone joint venture, which will give Sony rights to smartphone patents held by Ericsson. Sony now expects to try to increase their market share. Sony held a market share of 11 percent (by value) in the Android phone market in the last quarter, representing 80 percent of the company's third quarter sales. 2011 has been the year of billion dollar patent deals, and it can be expected that many more patent deals relating to smartphones will be made in the future. [Link] [Link]

Call for Papers!

  • The Third Annual Special Issue and Symposium for the Review of IP law (RIPL) will take place on April 19, 2012 in Chicago. The general theme will be "IP Law of China and the US" and subthemes cover the implementation of the new Chinese patent, copyright and trademark laws and theoretical or practical aspects of the cooperation of the IP laws of the US and China.

     

    The Special Issue and Symposium aims to gather professional and scholars from many disciplines including IP, international law, international business, ethics, and economic theory. The Symposium will bring an inspiring group of individuals to publish their writings and present their works at the symposium. [Link]

     

Patent Jobs:

  • Apple is seeking a patent portfolio manager, with a minimum 5 years of patent preparation experience. [Link]
  • Klarquist Sparkman, LLP is searching for litigation associates with 1-2 years of experience in IP litigation. [Link]
  • Klarquist Sparkman, LLP is looking for a biotechnology patent associate or patent agent with 3+ years of experience. [Link]
  • Bacon & Thomas is seeking a patent attorney with 1-4 years of experience and a mechanical or electrical background. [Link]
  • Global Patent Group is searching for a patent attorney or patent agent with a background in plant biology and a Ph.D. [Link]

Upcoming Events:

  • On October 28, the Annual Utah Cyber Symposium will take place. The Symposium will provide business and legal decision-makers in attendance from the business, academic, and legal communities a forum to learn more about legal and business challenges and opportunities facing the high tech industry today. Key business and legal leaders will instruct on how to improve your professional performance and bottom line, including the DOJ, Venture Capitalists, Professors, Business Leaders and Leading Attorneys. [Link]
  • The Chicago-Kent Intellectual Property Law Society is hosting the "Patent Wars Round Table" on November 2, 2011 at 5:30 PM. The event will include a panel discussion on current trends in IP law, namely, the recent paradigm shift in patent strategy and valuation in mobile device companies. Panelists include David Ruder of RPX, Ragnar Olson of Global IP, John Paniaguas of Katten Muchin, and Pat Burns of Greer, Burns & Crain, and will be moderated by Professor Christopher Seaman of Chicago-Kent. Cost is $20 and includes open bar and appetizers. [Link]
  • K&L Gates is holding a free webinar on Nov. 3 entitled "How the Patent Reform Act will Impact Your Business." The Act includes many changes, large and small, affecting subjects as far-reaching as the available appeals from reexaminations to the subject matter eligibility of tax planning methods and human organisms. The webinar will include a presentation and question and answer session. [Link]
  • Whittier Law School's Center for IP Law and Law Review will host the 29th Annual Law Review Symposium: The Law of the Smart Phone on November 4th. The symposium will feature presentations and panel discussions devoted to the privacy, regulation, economics, and intellectual property issues surrounding smart phone technology. Guest speakers include, Gerald Faulhaber, Mark Roark, Alan Friel, Susan Freiwald and many others. [Link]
  • World Research Group, an official Patently-O Jobs sponsor, is hosting the 3rd Annual Social TechNet Intellectual Property Forum Nov. 16-17 in New York. This conference provides solutions to the most prevalent in-house software and online IP protection and management issues. (Patently-O readers can save $200 by using promo code ABY668) [Link]
  • IBC will hold a Standards and Patents Conference in London on November 16th & 17th. The conference will analyze the interplay between standards, intellectual property and competition law. There will be 28 speakers representing various organizations, such as, the European Commission, Mr. Justice Floyd, IBM, Qualcomm Europe, Nokia, GE Healthcare and Intel. (Patently-O readers receive a 10% discount) [Link]
  • IBC will hold a US Patent Reform Congress Conference on November 18th in London. The conference will focus in the impact of the Leahy-Smith America Invents for the European practitioner, with expertise from the EPO, AIPLA, USPTO and more. (Patently-O readers receive a 10% discount) [Link]
  • The American Conference Institute's 2nd Annual Forum on: Paragraph IV Disputes will be held in San Francisco on December 7th. Experienced faculty of renowned litigators and judges will guide attendees through every stage of a Paragraph IV challenge to help them formulate offensive moves and defensive plays. (Patently-O readers can receive a discount by registering with code PO 200) [Link]
  • IBC Legal is holding a conference on International Patent Litigation 2011 in London on December 7th-8th. Use VIP Code FKW82249PO to get a 10% discount. [Link]
  • The WSBA IP Section, WSPLA, IEEE IP Professional Initiative, and the University of Washington School of Law's Law, Technology & Arts Group will be presenting an all day CLE at the University of Washington School of Law on Friday, December 9, 2011 on the impacts of the America Invents Act.

Contact Lawrence.Higgins@patentlyo.com with leads for future Bits and Bytes.

 

Patently-O Bits & Bytes by Lawrence Higgins

Patent

Apple and the Slide to Unlock Patents!

  • On October 25, 2011 the USPTO granted Apple a patent (8,046,721) for "Unlocking a device by performing gestures on an unlock image". Almost every touchscreen smartphone manufactured, uses slide to unlock technology. It seems like the Apple patent, could potentially be a problem for smartphone manufactures. However, many individuals propose that this patent should not have been issued because of the prior art that was available, such as the Neonode N1m which has been discontinued. It seems like many people forgot that Apple already has patented the slide to unlock feature, (Patent 7,657,849—which is cited in the "721" patent) so unless the Neonode has related prior art before December 23, 2005, the Neonode is not prior art. The "721" patent is a continuation of the "849" patent, therefore the "849" patent is not counted as prior art. As a result, the "849" patent is not invalid in light of the "721" patent, and most likely if the prior "721" patent has not been found invalid, nor will the "849" patent. [Patent]
    [Neonode]
    [Link]

Sony Buys Ericsson Patents and Holdings for $1.5 Billion

  • Sony Ericsson has ended its joint venture and the 2 companies will go their separate ways. Sony paid Ericsson nearly $1.5 billion for the mobile phone joint venture, which will give Sony rights to smartphone patents held by Ericsson. Sony now expects to try to increase their market share. Sony held a market share of 11 percent (by value) in the Android phone market in the last quarter, representing 80 percent of the company's third quarter sales. 2011 has been the year of billion dollar patent deals, and it can be expected that many more patent deals relating to smartphones will be made in the future. [Link]
    [Link]

Call for Papers!

  • The Third Annual Special Issue and Symposium for the Review of IP law (RIPL) will take place on April 19, 2012 in Chicago. The general theme will be "IP Law of China and the US" and subthemes cover the implementation of the new Chinese patent, copyright and trademark laws and theoretical or practical aspects of the cooperation of the IP laws of the US and China.

     

    The Special Issue and Symposium aims to gather professional and scholars from many disciplines including IP, international law, international business, ethics, and economic theory. The Symposium will bring an inspiring group of individuals to publish their writings and present their works at the symposium. [Link]

     

Patent Jobs:

  • Apple is seeking a patent portfolio manager, with a minimum 5 years of patent preparation experience. [Link]
  • Klarquist Sparkman, LLP is searching for litigation associates with 1-2 years of experience in IP litigation. [Link]
  • Klarquist Sparkman, LLP is looking for a biotechnology patent associate or patent agent with 3+ years of experience. [Link]
  • Bacon & Thomas is seeking a patent attorney with 1-4 years of experience and a mechanical or electrical background. [Link]
  • Global Patent Group is searching for a patent attorney or patent agent with a background in plant biology and a Ph.D. [Link]

Upcoming Events:

  • On October 28, the Annual Utah Cyber Symposium will take place. The Symposium will provide business and legal decision-makers in attendance from the business, academic, and legal communities a forum to learn more about legal and business challenges and opportunities facing the high tech industry today. Key business and legal leaders will instruct on how to improve your professional performance and bottom line, including the DOJ, Venture Capitalists, Professors, Business Leaders and Leading Attorneys. [Link]
  • The Chicago-Kent Intellectual Property Law Society is hosting the "Patent Wars Round Table" on November 2, 2011 at 5:30 PM. The event will include a panel discussion on current trends in IP law, namely, the recent paradigm shift in patent strategy and valuation in mobile device companies. Panelists include David Ruder of RPX, Ragnar Olson of Global IP, John Paniaguas of Katten Muchin, and Pat Burns of Greer, Burns & Crain, and will be moderated by Professor Christopher Seaman of Chicago-Kent. Cost is $20 and includes open bar and appetizers. [Link]
  • K&L Gates is holding a free webinar on Nov. 3 entitled "How the Patent Reform Act will Impact Your Business." The Act includes many changes, large and small, affecting subjects as far-reaching as the available appeals from reexaminations to the subject matter eligibility of tax planning methods and human organisms. The webinar will include a presentation and question and answer session. [Link]
  • Whittier Law School's Center for IP Law and Law Review will host the 29th Annual Law Review Symposium: The Law of the Smart Phone on November 4th. The symposium will feature presentations and panel discussions devoted to the privacy, regulation, economics, and intellectual property issues surrounding smart phone technology. Guest speakers include, Gerald Faulhaber, Mark Roark, Alan Friel, Susan Freiwald and many others. [Link]
  • World Research Group, an official Patently-O Jobs sponsor, is hosting the 3rd Annual Social TechNet Intellectual Property Forum Nov. 16-17 in New York. This conference provides solutions to the most prevalent in-house software and online IP protection and management issues. (Patently-O readers can save $200 by using promo code ABY668) [Link]
  • IBC will hold a Standards and Patents Conference in London on November 16th & 17th. The conference will analyze the interplay between standards, intellectual property and competition law. There will be 28 speakers representing various organizations, such as, the European Commission, Mr. Justice Floyd, IBM, Qualcomm Europe, Nokia, GE Healthcare and Intel. (Patently-O readers receive a 10% discount) [Link]
  • IBC will hold a US Patent Reform Congress Conference on November 18th in London. The conference will focus in the impact of the Leahy-Smith America Invents for the European practitioner, with expertise from the EPO, AIPLA, USPTO and more. (Patently-O readers receive a 10% discount) [Link]
  • The American Conference Institute's 2nd Annual Forum on: Paragraph IV Disputes will be held in San Francisco on December 7th. Experienced faculty of renowned litigators and judges will guide attendees through every stage of a Paragraph IV challenge to help them formulate offensive moves and defensive plays. (Patently-O readers can receive a discount by registering with code PO 200) [Link]
  • IBC Legal is holding a conference on International Patent Litigation 2011 in London on December 7th-8th. Use VIP Code FKW82249PO to get a 10% discount. [Link]
  • The WSBA IP Section, WSPLA, IEEE IP Professional Initiative, and the University of Washington School of Law's Law, Technology & Arts Group will be presenting an all day CLE at the University of Washington School of Law on Friday, December 9, 2011 on the impacts of the America Invents Act.

Contact Lawrence.Higgins@patentlyo.com with leads for future Bits and Bytes.

 

CAFC: Patent Opinions Down, Rule 36 Affirmances Up

Patent

By Jason Rantanen

As I commented yesterday, the Federal Circuit's statistics page no longer provides information about the disposal of patent infringement appeals by merits panels.  To get a better picture of the CAFC's activity in this area, I put together a graph that illustrates the Federal Circuit's dispositions of appeals arising from the district courts over the past fiscal year. 

CAFC dispositions of patent infringement appeals FY 2011

The CAFC's graphs from previous years:

CAFC dispositions of patent infringement appeals FY 2010

CAFC dispositions of patent infringement appeals FY 2009
CAFC dispositions of patent infringement appeals FY 2008

As compared with the Federal Circuit's historical data, the FY 2011 graph reflects a significant rearrangement of the way in which the CAFC is resolving patent infringement appeals: many more appeals were disposed of this year via summary affirmances and the percentage of precedential opinions has dropped sharply.  The overall number of dispositions by merits panels is also down, although that may be a function of the overall decline in appeals filed over the past few years.

A few notes:

  • Because this data includes only appeals arising from the district courts; i.e.: patent infringement suits,  it does not reflect appeals arising from the PTO or ITC.
  • Similarly, it should not be taken by itself to evidence a decline in the CAFC's production: the court deals with several areas of law besides patent law, and any numerical representation of this sort necessarily does not take into account the complexity, quality, or length of individual opinions.  Overall, fewer high-quality precedential opinions may be more desirable than large numbers of low-quality precedential opinions.
  • For the past year, the Federal Circuit has been significantly under strength, which may explain some of the patterns noted above.  Currently only ten of the twelve seats are filled; as of last year at this time only nine of the twelve seats were filled.  Furthermore, while Judge Gajarsa assumed senior status this year, and continues to be an active participant on the court, the court lost the valued services of Judges Friedman and Archer. 
  • Thanks to my research assistant Alexandria Christian for revewing the CAFC's dispositions of appeals arising from the district courts – the data on which the first chart is based.

 

Federal Circuit Statistics – FY 2011

Patent, , ,

By Jason Rantanen

The Federal Circuit recently updated its statistics webpage with information for FY 2011 (October 2010-September 2011).  Unfortunately, much of the statistical information that the court previously provided has been removed and is no longer accessible.  Nevertheless, the available data does allow for at least a partial picture of the CAFC's activity.

In terms of overall caseload, one of the court's graphs indicates that it appears to be on the upswing after falling over the past few years:

CAFC overall caseload 1983-2011
Source: http://www.cafc.uscourts.gov/the-court/statistics.html 

This rise appears to largely be the result of a modest uptick in appeals of both district court and PTO rulings, as well as challenges to CAVC and MSPB determinations, as shown in another CAFC graph:

CAFC Caseload by Major Origin FY 2011

Source: http://www.cafc.uscourts.gov/the-court/statistics.html

Median time to disposition is holding fairly steady, although there is a slight upswing for appeals arising from the PTO:

 Federal Circuit Median Time to Disposition
Based on data obtained from http://www.cafc.uscourts.gov/the-court/statistics.html

While this information is unquestionably useful and well appreciated, statistical information that the CAFC previously provided is unfortunately no longer available.  This includes: data about merit and non-merit dispositions in patent suits (see also), affirmance and reversal rates for district court patent infringement appeals (Download 2001-2010 data), charts showing the number of appeals adjudicated by merits panels broken down by category type (IP, admin, and claims), data about merit and non-merit dispositions in all suits, the percentage of appeals terminated in 90 days or less, data showing the number of petitions for rehearing filed and granted (Download 2001-2010 data), and data showing the number of petitions for writ of certiorari filed and granted by the Supreme Court.  Some of this information may be derivable from the court's output, but much of it is difficult to obtain.

I gave the court clerk's office a call, and was told that this information had been removed and would not be updated.  The information that is currently on the website is the statistical information that will continue to be updated.  I have provided some of the court's past statistical data above; if any readers happen to have other old CAFC data in your possession (particularly information that is not available via review of the court's opinions themselves), please send me an email.

Update: The first two graphs will now open into larger views.

VS Tech v. Twitter: Patentable Subject Matter

Patent, Patent Cases 2011, Patentable Subject Matter, , ,

VS Tech v. Twitter, 11–cv-0043 (E.D. Virginia 2011)

Trial is set for this week in the patent infringement lawsuit between VS Tech and Twitter.  VS’s asserted U.S. Patent No. 6,408,309 claims a “method of creating an interactive virtual community of people in a field of endeavor” and has a February 2000 filing date.  The inventor is Dinesh Agarwal who has also been a patent attorney since 1985.  VS Tech was formed to pursue the lawsuit and is headquartered in Mr. Agarwal’s law office address. The first two claims of the patent are reproduced below:

What is claimed is:

1. A method of creating an interactive virtual community of people in a field of endeavor, comprising the steps of:
a) selecting a field of endeavor;
b) compiling a list of members in the selected field;
c) selecting a member from the compiled list of members based on a preselected factor;
d) obtaining biographical information about the selected member;
e) processing the biographical information in a preselected format to create a personal profile of the selected member;
f) publishing the profile of the selected member on a machine readable media; and
g) allowing the selected member to interact with the profile.

2. The method of claim 1, wherein the step (f) comprises publishing the profile of the selected member on a network of computers.

In his most recent judgment in the case, Judge Morgan denied Twitter’s motion for summary judgment of invalidity under 35 U.S.C. 101, 102 & 103 and non-infringement.

The section 101 decision is interesting in that the judge treated the machine-or-transformation test as a question of fact to be determined by the jury.  “In light of all of the foregoing considerations, the Court finds that the evidence is sufficient for a reasonable juror to conclude that the ‘309 patent is linked to a particular machine or apparatus.”  Like claim construction and obviousness, patentable subject matter is treated by the courts as a question of law. However, unlike claim construction, the appellate courts have never held that it must be the judge who decides section 101 issues.

When the case was filed in January, Patent Law reporter Joe Mullin wrote “The central role of patent lawyers in suits like this raises questions about the health of the U.S. patent system. Patent lawyers are insiders in this system, and an increasing number of them aren’t satisfied just with being very-expensive service providers to patent owners. They’re seeing the millions made by so-called patent trolls and are eager to get into the game themselves. The patent office simply isn’t set up to say no to a persistent applicant, and the patent lawyers know that as well as anybody.  Mike Masnick filed his story under the “bang-head-slowly dept.”

The following is the text of Twitter’s proposed jury instructions on what it terms “unpatentable subject matter”:

Even if an invention is both new and not obvious, a patent claim may be invalid if its subject matter is not patentable. The law establishes three categories that are not eligible for patents: laws of nature, physical phenomena, and abstract ideas.

Twitter contends that the asserted claims of the ‘309 patent claim an unpatentable abstract idea. Methods which can be performed mentally, or which are the equivalent of human mental work, are abstract ideas which cannot be patented. An abstract idea is unpatentable even if the patent claim limits the idea’s use to a particular technological environment, or adds insignificant post-solution activity. Systems that depend for their operation on human intelligence alone cannot be patented.

A useful and important clue for determining whether a patent claims unpatentable subject matter is whether the claim is tied to a particular machine or apparatus, or transforms a particular article into a different state or thing. This is called the “machine or transformation test.” To satisfy the machine prong of this test, the use of the machine must also impose meaningful limits on the claim’s scope. If the claim does not satisfy the machine-or-transformation test, this indicates that the claim may be invalid because it claims unpatentable subject matter.

 

 

Purchase my eBook: Mark-Up and Commentary on the Leahy-Smith America Invents Act

Patent

Patent2011040by Dennis Crouch

President Obama recently enacted the Leahy-Smith America Invents Act, Public Law No 112-29 (H.R. 1249). The new law makes a large number of changes to Title 35 of the US Code and other related statutes.

I have received a number of requests for an electronic mark-up of the recently passed patent reform act – the Leahy-Smith America Invents Act. In response, I have created a 230 page volume in eBook format that is intended to serve as a helpful tool in understanding the implementation of the new provisions and should be especially helpful for those wanting to understand how the law has been changed.

Blackline Amendments and Commentary: Each provision of the United States Code substantively impacted by the new law is included in legal blackline format. In this traditional format, added text is underlined and eliminated text is formatted with a strikethrough.  

Additional Material: The volume includes a chronological table of effective dates, excerpts from the House Judiciary Committee Report from June 2011, a Senate floor colloquy between Senators Leahy and Hatch attempting to explain implementation of the new provisions of section 102, and a table of contents.  I have also provided commentary on the majority of the amended and added provisions in a way that guides readers through an analysis of the amendments.

Copyright Notice: I give away almost all my writings by posting them online, either to Patently-O or to the SSRN website. However, I have decided to charge a fee to access this volume.  Profit on this work allows me to continue my academic pursuits without seeking corporate grants or clients and their consequential influence. 

The price is $21 per copy (single user license). A special rate is avaiable for entities intersted in purchasing multiple user licenses. The sales-page allows payment using a credit card or paypal. Contact me to pay with some other form of payment. (dcrouch@patentlyo.com). 

This week in patent law class

Bits and Bytes, Patent, Reissue
  • This week in patent law class: Left my students confused after discussing Benson, Flook, Chakrabarty, Diehr, and Bilski. I’m somewhat confused as well.
  • Traditionally, a patentee could seek reissue to correct problematic claims if the problems were created “through error without any deceptive intention.”  The new patent act eliminates the “without any deceptive intention” limitation. What’s the impact?

-Dennis Crouch

Patently-O Bits & Bytes by Lawrence Higgins

Bits and Bytes, Patent, , ,

Samsung v. Apple: The Battle Continues

  • A Netherland court recently denied Samsung's request for an injunction banning Apple from selling iPhones and iPads. Samsung claims that Apple should not be allowed to sell devices with 3G technology because they infringe Samsung patents. The court stated that because the 3G technology is the industry standard, Samsung is obliged to offer Apple licenses under fair, reasonable, and nondiscriminatory (FRAND) terms. It seems that the licensing fee Samsung sought was not a FRAND offer and that if Samsung does make a FRAND offer and for some reason an agreement is not reach Samsung may file another patent suit and ask for a new injunction request. [Link]

UK IPO

  • Those who couldn't make it along to the UK IPO's event "Understanding the Use and Impact of Design Rights on the Design Sector" hosted by the Designs Council on 21 September 2011 can either listen to the presentations or download Word-format transcripts from this webpage. The event was a presentation of the economic research conducted for the IPO by the researchers, moderated by an expert panel and followed by a lively discussion. The research itself is published here. [Link]

Taiwan Will Form Patent Bank

  • The quasi-government agency, the Industrial Technology Research Institute (ITRI) announced the bank, saying it could be similar to existing defensive patent aggregators such as RPX and Allied Security Trust. The director of ITRI stated that the bank will assist Taiwanese manufactures with the creation of patent portfolios and patenting strategies during the manufactures' R&D periods and later assist in defending them from suits and in expanding their market share. HTC is a Taiwan based company, who has been in a heated patent infringement battle against Apple, and it would be to their advantage for an IP bank like this. [Link]

Patent Jobs

  • King & Spalding is searching for a patent attorney with 1-2 years of experience to work at their Houston office. [Link]
  • McDonnell Boehnen Hulbert & Berghoff is seeking a junior associate with 2-3 years of experience, to work in their electrical arts group. [Link]
  • Rambus is seeking a Senior Patent Counsel with 8+ years of experience and a BSEE or related degree. [Link]
  • Sheppard Mullin is searching for 2 attorneys: (1) an associate with at least 2 years of patent prosecution experience, and (2) an associate with 2-4 years of patent litigation experience. [Link]
  • The University of New Hampshire School of Law's Franklin Pierce Center for IP is seeking to hire a full-time professor of patent prosecution practice. [Link]

Upcoming Events:

  • The 2011 AIPLA Annual Meeting will be held October 20-22, in Washington, DC. The Annual Meeting will bring nearly 2,000 IP professionals together to meet, share, and connect with one another and provide insight into some of the most pressing issues facing our profession today! Over 100 IP Professionals, from corporations, law firms, universities, the courts, federal agencies, with expertise both domestically and internationally will be presenting on a varied landscape of IP issues. [Link]
  • Back to School: The New Patent Law Explained, conference will be hosted by Berkeley Center for Law and Technology on October 21 in Berkeley, California. Professors and practitioners will provide detailed explanations of the changes and discuss the impact on patent prosecution, counseling, and litigation. [Link]
  • American Conference Institute will be holding a FDA Boot Camp Device Edition conference on October 25th-October 26th in Chicago. (Patently-O readers can register with code PO 200 for a discount) [Link]
  • The University of Texas at Austin will hold its 16th Annual Advanced Patent Law Institute on October 27-28. The program will cover: recent developments in claims construction and claims drafting, cost savings in litigation, inequitable conduct after Therasense, and many other topics. [Link]
  • Whittier Law School's Center for IP Law and Law Review will host the 29th Annual Law Review Symposium: The Law of the Smart Phone on November 3rd. The symposium will feature presentations and panel discussions devoted to the privacy, regulation, economics, and intellectual property issues surrounding smart phone technology. Guest speakers include, Gerald Faulhaber, Mark Roark, Alan Friel, Susan Freiwald and many others. [Link]
  • IPMI is holding the IP Law & Management Institute on November 6th – 8th at the Rancho Las Palmas in Palm Springs, CA. Hailed as "One of the few programs geared to experienced in-house IP Counsel", the Institute is a CLE-accredited program designed to provide time-starved Heads of IP with the Opportunity to meet and network with their peers, learn from the best practices and validate solutions and services. [Link]
  • World Research Group, an official Patently-O Jobs sponsor, is hosting the 3rd Annual Social TechNet Intellectual Property Forum Nov. 16-17 in New York. This conference provides solutions to the most prevalent in-house software and online IP protection and management issues. (Patently-O readers can save $200 by using promo code ABY668) [Link]
  • IBC will hold a Standards and Patents Conference in London on November 16th & 17th. The conference will analyze the interplay between standards, intellectual property and competition law. There will be 28 speakers representing various organizations, such as, the European Commission, Mr. Justice Floyd, IBM, Qualcomm Europe, Nokia, GE Healthcare and Intel. (Patently-O readers receive a 10% discount) [Link]
  • IBC will hold a US Patent Reform Congress Conference on November 18th in London. The conference will focus in the impact of the Leahy-Smith America Invents for the European practitioner, with expertise from the EPO, AIPLA, USPTO and more. (Patently-O readers receive a 10% discount) [Link]
  • The American Conference Institute's 2nd Annual Forum on: Paragraph IV Disputes will be held in San Francisco on December 7th. Experienced faculty of renowned litigators and judges will guide attendees through every stage of a Paragraph IV challenge to help them formulate offensive moves and defensive plays. (Patently-O readers can receive a discount by registering with code PO 200) [Link]

Contact Lawrence.Higgins@patentlyo.com with leads for future Bits and Bytes.

Patently-O Bits & Bytes by Lawrence Higgins

Bits and Bytes, Patent, , ,

Samsung v. Apple: The Battle Continues

  • A Netherland court recently denied Samsung's request for an injunction banning Apple from selling iPhones and iPads. Samsung claims that Apple should not be allowed to sell devices with 3G technology because they infringe Samsung patents. The court stated that because the 3G technology is the industry standard, Samsung is obliged to offer Apple licenses under fair, reasonable, and nondiscriminatory (FRAND) terms. It seems that the licensing fee Samsung sought was not a FRAND offer and that if Samsung does make a FRAND offer and for some reason an agreement is not reach Samsung may file another patent suit and ask for a new injunction request. [Link]

UK IPO

  • Those who couldn't make it along to the UK IPO's event "Understanding the Use and Impact of Design Rights on the Design Sector" hosted by the Designs Council on 21 September 2011 can either listen to the presentations or download Word-format transcripts from this webpage. The event was a presentation of the economic research conducted for the IPO by the researchers, moderated by an expert panel and followed by a lively discussion. The research itself is published here. [Link]

Taiwan Will Form Patent Bank

  • The quasi-government agency, the Industrial Technology Research Institute (ITRI) announced the bank, saying it could be similar to existing defensive patent aggregators such as RPX and Allied Security Trust. The director of ITRI stated that the bank will assist Taiwanese manufactures with the creation of patent portfolios and patenting strategies during the manufactures' R&D periods and later assist in defending them from suits and in expanding their market share. HTC is a Taiwan based company, who has been in a heated patent infringement battle against Apple, and it would be to their advantage for an IP bank like this. [Link]

Patent Jobs

  • King & Spalding is searching for a patent attorney with 1-2 years of experience to work at their Houston office. [Link]
  • McDonnell Boehnen Hulbert & Berghoff is seeking a junior associate with 2-3 years of experience, to work in their electrical arts group. [Link]
  • Rambus is seeking a Senior Patent Counsel with 8+ years of experience and a BSEE or related degree. [Link]
  • Sheppard Mullin is searching for 2 attorneys: (1) an associate with at least 2 years of patent prosecution experience, and (2) an associate with 2-4 years of patent litigation experience. [Link]
  • The University of New Hampshire School of Law's Franklin Pierce Center for IP is seeking to hire a full-time professor of patent prosecution practice. [Link]

Upcoming Events:

  • The 2011 AIPLA Annual Meeting will be held October 20-22, in Washington, DC. The Annual Meeting will bring nearly 2,000 IP professionals together to meet, share, and connect with one another and provide insight into some of the most pressing issues facing our profession today! Over 100 IP Professionals, from corporations, law firms, universities, the courts, federal agencies, with expertise both domestically and internationally will be presenting on a varied landscape of IP issues. [Link]
  • Back to School: The New Patent Law Explained, conference will be hosted by Berkeley Center for Law and Technology on October 21 in Berkeley, California. Professors and practitioners will provide detailed explanations of the changes and discuss the impact on patent prosecution, counseling, and litigation. [Link]
  • American Conference Institute will be holding a FDA Boot Camp Device Edition conference on October 25th-October 26th in Chicago. (Patently-O readers can register with code PO 200 for a discount) [Link]
  • The University of Texas at Austin will hold its 16th Annual Advanced Patent Law Institute on October 27-28. The program will cover: recent developments in claims construction and claims drafting, cost savings in litigation, inequitable conduct after Therasense, and many other topics. [Link]
  • Whittier Law School's Center for IP Law and Law Review will host the 29th Annual Law Review Symposium: The Law of the Smart Phone on November 3rd. The symposium will feature presentations and panel discussions devoted to the privacy, regulation, economics, and intellectual property issues surrounding smart phone technology. Guest speakers include, Gerald Faulhaber, Mark Roark, Alan Friel, Susan Freiwald and many others. [Link]
  • IPMI is holding the IP Law & Management Institute on November 6th – 8th at the Rancho Las Palmas in Palm Springs, CA. Hailed as "One of the few programs geared to experienced in-house IP Counsel", the Institute is a CLE-accredited program designed to provide time-starved Heads of IP with the Opportunity to meet and network with their peers, learn from the best practices and validate solutions and services. [Link]
  • World Research Group, an official Patently-O Jobs sponsor, is hosting the 3rd Annual Social TechNet Intellectual Property Forum Nov. 16-17 in New York. This conference provides solutions to the most prevalent in-house software and online IP protection and management issues. (Patently-O readers can save $200 by using promo code ABY668) [Link]
  • IBC will hold a Standards and Patents Conference in London on November 16th & 17th. The conference will analyze the interplay between standards, intellectual property and competition law. There will be 28 speakers representing various organizations, such as, the European Commission, Mr. Justice Floyd, IBM, Qualcomm Europe, Nokia, GE Healthcare and Intel. (Patently-O readers receive a 10% discount) [Link]
  • IBC will hold a US Patent Reform Congress Conference on November 18th in London. The conference will focus in the impact of the Leahy-Smith America Invents for the European practitioner, with expertise from the EPO, AIPLA, USPTO and more. (Patently-O readers receive a 10% discount) [Link]
  • The American Conference Institute's 2nd Annual Forum on: Paragraph IV Disputes will be held in San Francisco on December 7th. Experienced faculty of renowned litigators and judges will guide attendees through every stage of a Paragraph IV challenge to help them formulate offensive moves and defensive plays. (Patently-O readers can receive a discount by registering with code PO 200) [Link]

Contact Lawrence.Higgins@patentlyo.com with leads for future Bits and Bytes.

Patently-O Bits & Bytes by Lawrence Higgins

Bits and Bytes, , ,

Samsung v. Apple: The Battle Continues

  • A Netherland court recently denied Samsung's request for an injunction banning Apple from selling iPhones and iPads. Samsung claims that Apple should not be allowed to sell devices with 3G technology because they infringe Samsung patents. The court stated that because the 3G technology is the industry standard, Samsung is obliged to offer Apple licenses under fair, reasonable, and nondiscriminatory (FRAND) terms. It seems that the licensing fee Samsung sought was not a FRAND offer and that if Samsung does make a FRAND offer and for some reason an agreement is not reach Samsung may file another patent suit and ask for a new injunction request. [Link]

UK IPO

  • Those who couldn't make it along to the UK IPO's event "Understanding the Use and Impact of Design Rights on the Design Sector" hosted by the Designs Council on 21 September 2011 can either listen to the presentations or download Word-format transcripts from this webpage. The event was a presentation of the economic research conducted for the IPO by the researchers, moderated by an expert panel and followed by a lively discussion. The research itself is published here. [Link]

Taiwan Will Form Patent Bank

  • The quasi-government agency, the Industrial Technology Research Institute (ITRI) announced the bank, saying it could be similar to existing defensive patent aggregators such as RPX and Allied Security Trust. The director of ITRI stated that the bank will assist Taiwanese manufactures with the creation of patent portfolios and patenting strategies during the manufactures' R&D periods and later assist in defending them from suits and in expanding their market share. HTC is a Taiwan based company, who has been in a heated patent infringement battle against Apple, and it would be to their advantage for an IP bank like this. [Link]

Patent Jobs

  • King & Spalding is searching for a patent attorney with 1-2 years of experience to work at their Houston office. [Link]
  • McDonnell Boehnen Hulbert & Berghoff is seeking a junior associate with 2-3 years of experience, to work in their electrical arts group. [Link]
  • Rambus is seeking a Senior Patent Counsel with 8+ years of experience and a BSEE or related degree. [Link]
  • Sheppard Mullin is searching for 2 attorneys: (1) an associate with at least 2 years of patent prosecution experience, and (2) an associate with 2-4 years of patent litigation experience. [Link]
  • The University of New Hampshire School of Law's Franklin Pierce Center for IP is seeking to hire a full-time professor of patent prosecution practice. [Link]

Upcoming Events:

  • The 2011 AIPLA Annual Meeting will be held October 20-22, in Washington, DC. The Annual Meeting will bring nearly 2,000 IP professionals together to meet, share, and connect with one another and provide insight into some of the most pressing issues facing our profession today! Over 100 IP Professionals, from corporations, law firms, universities, the courts, federal agencies, with expertise both domestically and internationally will be presenting on a varied landscape of IP issues. [Link]
  • Back to School: The New Patent Law Explained, conference will be hosted by Berkeley Center for Law and Technology on October 21 in Berkeley, California. Professors and practitioners will provide detailed explanations of the changes and discuss the impact on patent prosecution, counseling, and litigation. [Link]
  • American Conference Institute will be holding a FDA Boot Camp Device Edition conference on October 25th-October 26th in Chicago. (Patently-O readers can register with code PO 200 for a discount) [Link]
  • The University of Texas at Austin will hold its 16th Annual Advanced Patent Law Institute on October 27-28. The program will cover: recent developments in claims construction and claims drafting, cost savings in litigation, inequitable conduct after Therasense, and many other topics. [Link]
  • Whittier Law School's Center for IP Law and Law Review will host the 29th Annual Law Review Symposium: The Law of the Smart Phone on November 3rd. The symposium will feature presentations and panel discussions devoted to the privacy, regulation, economics, and intellectual property issues surrounding smart phone technology. Guest speakers include, Gerald Faulhaber, Mark Roark, Alan Friel, Susan Freiwald and many others. [Link]
  • IPMI is holding the IP Law & Management Institute on November 6th – 8th at the Rancho Las Palmas in Palm Springs, CA. Hailed as "One of the few programs geared to experienced in-house IP Counsel", the Institute is a CLE-accredited program designed to provide time-starved Heads of IP with the Opportunity to meet and network with their peers, learn from the best practices and validate solutions and services. [Link]
  • World Research Group, an official Patently-O Jobs sponsor, is hosting the 3rd Annual Social TechNet Intellectual Property Forum Nov. 16-17 in New York. This conference provides solutions to the most prevalent in-house software and online IP protection and management issues. (Patently-O readers can save $200 by using promo code ABY668) [Link]
  • IBC will hold a Standards and Patents Conference in London on November 16th & 17th. The conference will analyze the interplay between standards, intellectual property and competition law. There will be 28 speakers representing various organizations, such as, the European Commission, Mr. Justice Floyd, IBM, Qualcomm Europe, Nokia, GE Healthcare and Intel. (Patently-O readers receive a 10% discount) [Link]
  • IBC will hold a US Patent Reform Congress Conference on November 18th in London. The conference will focus in the impact of the Leahy-Smith America Invents for the European practitioner, with expertise from the EPO, AIPLA, USPTO and more. (Patently-O readers receive a 10% discount) [Link]
  • The American Conference Institute's 2nd Annual Forum on: Paragraph IV Disputes will be held in San Francisco on December 7th. Experienced faculty of renowned litigators and judges will guide attendees through every stage of a Paragraph IV challenge to help them formulate offensive moves and defensive plays. (Patently-O readers can receive a discount by registering with code PO 200) [Link]

Contact Lawrence.Higgins@patentlyo.com with leads for future Bits and Bytes.

Limiting Damages: $107 Million Interest Charge Improperly Awarded On-Top of Pre-Agreed Damages

Damages, License, Patent, Patent Cases 2011,

By Dennis Crouch

Sanofi-Aventis v. Apotex (Fed. Cir. 2011)

The case focuses on Sanofi’s patent covering clopidrogrel bisulfate tablets sold under the trade name Plavix. ($4.5 billion in annual sales). In 2001, the generic drug manufacturer Apotex filed an abbreviated new drug application (ANDA) with the FDA – requesting that it be allowed to manufacture a generic version on the drug and alleging that Sanofi’s patent was invalid. Sanofi sued for infringement.

Pre-Judgment Agreement to Limit Damages: May 2006, the parties came to a limited agreement that any actual damages for infringement would be limited to “50% of Apotex’s net sales.” The agreement stated that:

If the litigation results in a judgment that the ‘265 patent is not invalid or unenforceable, Sanofi agrees that its actual damages for any past infringement by Apotex, up to the date on which Apotex is enjoined, will be 50% of Apotex’s net sales of clopidogrel products . . . . Sanofi further agrees that it will not seek increased damages under 35 U.S.C. § 284.

Apotex subsequently began marking its generic product before being stopped a few weeks later by a preliminary injunction. After Sanofi won the infringement trial, the judge set damages for that infringement at 50% of net sales plus interest. In dollar figures, damages were $442 million and the interest charge was $107 million. The district court had agreed that it should be bound by the prior agreement between the parties, but held that the agreement only limited damages and did not limit interest.

Contract Specification: Of course the contract could have spelled-out whether the limitation applied to interest charges, and the parties most certainly considered that issue during negotiations. But, for whatever, reason, they chose not to specify in the contract whether interest charges should be limited. Thus, the court was forced to consider the proper default rule for this situation.

At the Federal Circuit, Apotex argues that the interest payment should be included as part of the damage award and that the judgment therefore exceeds the agreed upon 50% damage limitation. In a 2-1 decision, the Federal Circuit has sided with Apotex – holding that the phrase “actual damages” as used in the contract “include[s] all damages necessary to compensate Sanofi for Apotex’s infringement.”

Because prejudgment interest is a form of compensatory damages, the district court erred by awarding additional prejudgment interest pursuant to 35 U.S.C. § 284.

In the majority opinion, Judge Moore relied both on the contractual language and on the history of compensatory damages that traditionally include both a reasonable royalty calculated at the point of infringement and interests charges for the delay in payment. Both of those elements are part of the “actual damages” calculation necessary to fully compensate the patent holder for past infringement. This follows the view espoused by the Supreme Court in its 1983 case involving General Motors where the court wrote:

An award of interest from the time that the royalty payments would have been received merely serves to make the patent owner whole, since his damages consist not only of the value of the royalty payments but also of the forgone use of the money between the time of infringement and the date of judgment.

Gen. Motors Corp. v. Devex Corp., 461 U.S. 648, 655 (1983).

Patent Act Damages: As usual, the language of the Patent Act is somewhat ambiguous on the meaning of damages. The first paragraph of Section 284 calls for an award of “damages adequate to compensate for the infringement but in no event less than a reasonable royalty for the use made of the invention by the infringer, together with interest and costs as fixed by the court.” One view of this provision would require damages to be, at a minimum, a combination of a reasonable royalty plus interests and costs. In my view, however, the better plain meaning interpretation of Section 284 is that a court is required to award damages (minimum of reasonable royalty) and in addition must award interest and costs.

The appellate panel rejected the parties’ analysis of the language of the patent act as irrelevant – holding instead that “actual damages” was a contract term and that the interpretation therefore does not depend upon any statutory language.

While interesting, these arguments neither illuminate nor resolve the issue before us – the meaning of “actual damages” in the May 2006 agreement. The agreed upon “actual damages” are a creature of contract and not of the Patent Act. By entering into the May 2006 agreement, the parties decided that the agreement itself – not § 271(e)(4)(C) or § 284 – would govern the appropriate measure of damages from Apotex’s infringement.

Writing in Dissent, Judge Newman would have applied the usual background rule that interest is different from damages as a primary driving factor in interpreting the contract. In that framework, the contractual limitation on damages would not apply to limit interest as well.

My colleagues err in reading the contract’s silence on interest for infringement as meaning that the parties intended and agreed to forgo the interest to which the patentee is entitled by statute and precedent. I must, respectfully, dissent

c

Telegram for the Federal Circuit: Electronic Case Filing Is Now Available

Guest Post, Patent, Patent Cases 2011, Petitions

By Andrew Dhuey

“I’m following your case at the Federal Circuit – would you please send me a PDF of the parties’ briefs? Thanks in advance.” Patent litigators and prosecutors throughout the nation have been sending emails with this request for years, relying on the kindness of strangers for a professional courtesy. They do this because there is usually no easy way for them to obtain Federal Circuit briefs. The reason for that is the Court – charged by Congress to resolve the most important technology disputes in the world – still does not have electronic case filing (ECF).

In the federal judiciary, ECF is now operational in all appellate and district courts, save two: the Supreme Court and the Federal Circuit. Some Supreme Court justices are comically unfamiliar with such cutting-edge technologies as texting and email, though the Chief Justice probably does know more about pagers than the typical 20-something today. Fortunately, the technological backwardness of the Supreme Court’s case filing system is of no consequence – you can get just about any petition or merits stage brief you might want from SCOTUSblog, the American Bar Association and other online sources.

At the Federal Circuit, however, odds are you have only three options when seeking a brief or motion: i) pay several hundred dollars for a messenger to go to the Court and copy it, ii) pay Westlaw or Lexis a similar amount to download it (if available) or iii) ask an attorney in the case for the favor of a PDF (tip: ask really nicely).

The Court’s long delay in implementing ECF is puzzling. In case after case, Federal Circuit judges and their law clerks demonstrate their ability to learn and analyze extremely complex technologies in widely disparate fields. Why then is the Court lagging behind every regional circuit court and all district courts in the nation when it comes to adopting technology in its own operations?

ECF is not a newcomer to the federal courts. District courts started using ECF in 2002; circuit courts in 2005. On June 28, 2007, then Chief Judge Michel announced that the Court hoped to utilize ECF in fall 2007. Since then, nothing. Well, slightly more than nothing. This message appears on Federal Circuit electronic docket sheets: “The following documents, filed after 8/13/07, are available for download: official caption, entry of appearance, certificate of interest. No other case documents are available electronically.” I can scarcely imagine any documents of less interest to others than captions, entries of appearances and certificates of interest, yet these are the ones you can obtain electronically.

The Federal Circuit’s lack of ECF is not merely a hassle for lawyers in search of briefs and motions. Scores of non-lawyers, including inventors, veterans, federal employees and vaccine-case claimants, represent themselves in Federal Circuit appeals. That rather challenging task would be less daunting if they had easy access to well-written appellate briefs of experienced counsel.

Federal Circuit judges, please consider this an amicus filing from someone who has great respect for you and the Court – it is time to roll out ECF.

Patently-O Bits & Bytes by Lawrence Higgins

Bits and Bytes, USPTO News,

Where Will the Patent Satellite Offices Open!

  • There currently is a lot of lobbying going on by politicians to bring the USPTO to their state. Lawmakers from Silicon Valley, Colorado and Texas are trying to win one of the two satellite offices, since Detroit already is entitled to an office under Leahy-Smith. Colorado Sens. Michael Bennet and Mark Udall, sent a letter to David Kappos trying to sell him on the Rocky Mountain State. Also California lawmakers Anna Eshoo and nine other from sent a letter to Obama making their pitch for Silicon Valley. [Link]

Beacon Navigation Files Suit Against Car Makers

  • On October 11th Beacon Navigation filed patent infringement suits against all the big name automobile manufactures. Beacon claims that automobile manufactures infringed either all or some of their patents including 5,819,201, 6,163,269, & 5,878,368. Beacon claims that because the GPS navigation systems in their products are specially adapted for an infringing use of each patent, and embody a material part of the inventions claimed in each patent. As noted by PriorSmart, Beacon is the first plaintiff to file a high volume of individual cases since the new joinder restrictions were enacted. [Complaint]

Mark T. Banner Scholarship

  • The Richard Linn American Inn of Court is proud to offer the Mark T. Banner Scholarship for law students. This scholarship is part of The Richard Linn American Inn of Court's commitment to fostering the development of intellectual property lawyers of high ethics, civility and professionalism, and especially those from diverse backgrounds. [Link]

Patent Jobs:

  • Harman International is seeking a patent attorney with at least 8 years of experience. [Link]
  • Klarquist Sparkman is searching for lateral patent associates or patent agents with at least 1-4 years of experience. [Link]
  • Klarquist Sparkman is searching for a patent attorney or patent agent with 3+ years of experience. [Link]
  • Lee & Hayes is looking for patent attorneys with at least 3 years of experience. [Link]
  • Withrow & Terranova is seeking patent attorneys or patent agents with at least one year of experience. [Link]
  • Trading Technologies is searching for a patent agent with 3-5 years of experience. [Link]
  • Trading Technologies is seeking a patent attorney with 3-5 years of experience. [Link]
  • Volpe and Koenig is looking for a Japanese patent paralegal with prior experience as a patent paralegal. [Link]

Upcoming Events:

  • The 2011 AIPLA Annual Meeting will be held October 20-22, in Washington, DC. The Annual Meeting will bring nearly 2,000 IP professionals together to meet, share, and connect with one another and provide insight into some of the most pressing issues facing our profession today! Over 100 IP Professionals, from corporations, law firms, universities, the courts, federal agencies, with expertise both domestically and internationally will be presenting on a varied landscape of IP issues. [Link]
  • American Conference Institute will be holding a FDA Boot Camp Device Edition conference on October 25th-October 26th in Chicago. (Patently-O readers can register with code PO 200 for a discount) [Link]
  • Licensing Executives Society (LES) will be holding their annual meeting on October 16-19 at the Manchester Grand Hyatt in San Diego. Guest speakers include, Martha Ries, VP of IP Management, The Boeing Company and Barbara Dalton VP, Venture Capital, Pfizer. [Link]
  • The University of Texas at Austin will hold its 16th Annual Advanced Patent Law Institute on October 27-28. The program will cover: recent developments in claims construction and claims drafting, cost savings in litigation, inequitable conduct after Therasense, and many other topics. [Link]
  • IPMI is holding the IP Law & Management Institute on November 6th – 8th at the Rancho Las Palmas in Palm Springs, CA. Hailed as "One of the few programs geared to experienced in-house IP Counsel", the Institute is a CLE-accredited program designed to provide time-starved Heads of IP with the Opportunity to meet and network with their peers, learn from the best practices and validate solutions and services. [Link]
  • World Research Group, an official Patently-O Jobs sponsor, is hosting the 3rd Annual Social TechNet Intellectual Property Forum Nov. 16-17 in New York. This conference provides solutions to the most prevalent in-house software and online IP protection and management issues. (Patently-O readers can save $200 by using promo code ABY668) [Link]
  • IBC will hold a Standards and Patents Conference in London on November 16th & 17th. The conference will analyze the interplay between standards, intellectual property and competition law. There will be 28 speakers representing various organizations, such as, the European Commission, Mr. Justice Floyd, IBM, Qualcomm Europe, Nokia, GE Healthcare and Intel. (Patently-O readers receive a 10% discount) [Link]
  • IBC will hold a US Patent Reform Congress Conference on November 18th in London. The conference will focus in the impact of the Leahy-Smith America Invents for the European practitioner, with expertise from the EPO, AIPLA, USPTO and more. (Patently-O readers receive a 10% discount) [Link]
  • The American Conference Institute's 2nd Annual Forum on: Paragraph IV Disputes will be held in San Francisco on December 7th. Experienced faculty of renowned litigators and judges will guide attendees through every stage of a Paragraph IV challenge to help them formulate offensive moves and defensive plays. (Patently-O readers can receive a discount by registering with code PO 200) [Link]

Contact Lawrence.Higgins@patentlyo.com with leads for future Bits and Bytes.

Book Review: Justifying Intellectual Property

Book Review, Patent

By Dennis Crouch

Excellent practitioner guides are often described as the “Bible for ___.” Peter Menell’s “Patent Case Management Judicial Guide” might fit into this category as the patent litigator’s Bible.  However, I see some disconnect in the bible naming process.  Although the Christian Bible does include rules of practice, it turns out that those rules are regularly ignored. Many practicing Christians instead see the Bible as more simply providing a source of faith as well as some general guidance.

justifying-intellectual-property-robert-p-merges-hardcover-cover-artIt is in this broader context that that I see Professor Rob Merges’ new book Justifying Intellectual Property as a new Bible for Intellectual Property. In his 2011 Harvard University Press book, Merges explains his faith in intellectual property and how the basis for his faith provides general guidance for the structure of a well designed intellectual property system.

Merges is an excellent writer, but the reading is still dense – largely because Merges bases his arguments on the philosophic writings of John Locke, Immanuel Kant, and John Rawls. In reading the book, I am continually referring to the original sources (via the public domain and an internet search).  This takes time, energy, and active reading, but will be rewarding for any patent attorney looking to live a purpose filled life.

Merges also believes that utilitarianism is important to intellectual property. However, that justification has always lacked power because proof that the IP system really works has turned out to be “impossibly complex.” In the end, utilitarianism or consequentialism offer only a hollow purpose. As Merges writes in his introduction “[m]aximizing utility, I have come to see, is not a serviceable first-order principle of the IP system. It is just not what IP is really all about at the deepest level.” It makes sense to me that any true right needs more justification than can be provided by an econometrician. (My conclusion may well be based on the large number of economists that I know with failed moral compasses.) To be clear, Merges argues that the IP system should be designed efficiently and in a way that generally benefits society. His point, however, is that utilitarianism does not fully justify the property rights. Rather, for Merges, concerns of efficiency, along with proportionality, dignity, and non-removal are all “midlevel” principles that, though important, are not fundamental justifications. At the fundamental level, Merges relies upon deontological ethics derived from Locke (justification for appropriation), Kant (individual freedoms), and Rawls (distributive justice).  By threading together these historic lines of thought, Merges provides an ethical foundation both for the establishment of property rights for creative contributions to society as well as for substantive limits to those rights.

Justifying Intellectual Property is a fascinating book and I will likely post a second discussion of the book after I finish reading the second half.  The book does not have all the answers and, in my view, is not always correct.  It does, however offer a new framework for understanding intellectual property with a particular focus on why it makes sense to offer property rights for creative enterprises. 

Info:

  • Author: Robert P. Merges, Faculty Director, Berkeley Center for Law & Technology; Wilson Sonsini Goodrich & Rosati Professor of Law and Technology
  • Hardcover: 422 pages
  • Cost: $60 list price
  • Publisher: Harvard University Press (June 13, 2011)

Law Jobs: Patent Prosecution Professor at UNH

Patent

Univ. of New Hampshire School of Law in Concord, N.H. (formerly Franklin Pierce) is looking to hire a new full-time professor of patent prosecution practice. As many patent attorneys know, patent prosecution is already a major component of UNH’s patent law program.

“The person who is hired for this position must be able to teach and continue to develop a program of instruction that provides students with the skills needed to prosecute patent applications, including claims drafting and patent application preparation and procedures. The course includes a weekly lecture component that is given by the patent prosecution professor and small sections with practicing patent attorneys that are managed by the patent prosecution professor. By the end of this two-semester program, students will have drafted a complete patent specification and claims, responded to various USPTO Office Actions, and learned to prepare additional documents for filing with the USPTO.”

UNH is also willing to accommodate individuals interested in combining teaching responsibilities with an ongoing law practice or other professional obligation.

Links:

Patent Issues Arising from the US-Korea Free Trade Agreement

Patent, Patent Legislation, Transnational

This week, US Congress ratified a negotiated free trade agreement with (South) Korea. The agreement includes a major section on intellectual property law.

Agreed to terms include the requirements that each nation:

  • Make patents available for any invention, whether a product or process, in all fields of technology, provided that the invention is new, involves an inventive step, and is capable of industrial application.
  • May only exclude inventions from patentability when it is necessary to protect public order or morality; or when the invention is a diagnostic, therapeutic, and surgical procedure for the treatment of humans or animals. However, the fact that a particular practice is against the law of a nation may not be used as a reason to deny patentability.
  • May only revoke a patent on grounds that would have justified a refusal to grant the patent.
  • Shall not allow third-party oppositions of pending patent applications (pre-grant).
  • Will offer at least a 12-month pre-filing grace period for disclosures authorized by or derived from the patent applicant.

The agreement must also be ratified by the Korean National Assembly. Read the US-Korean agreement here: /media/docs/2011/10/asset_upload_file273_12717.pdf. US Congress also passed similar agreements with the Latin American Nations of Panama and Columbia.

Design Registration? The agreements all additionally call for the parties to “make all reasonable efforts to ratify or accede to … the Hague Agreement Concerning the International Registration of Industrial Designs (1999) and the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks (1989).” The United States is not currently a signatory to either of these agreements.

Further agreements in the air: The US passage of the Leahy-Smith America Invents Act has been taken as a signal that further harmonization efforts may also be successful. In particular, it appears that many nations would be willing to implement a new US-style grace period at least if they are limited activities subsequent to a non-commercializing public disclosure authorized by or derived from the patent applicant or inventor.

 

Guest Post: Industrial Designs – the Wonder Weapon for the German Blitzkrieg?

Design Patent, Guest Post, Patent

PatLit is part of a family of excellent IPKat blogs created by UK attorney Jeremy Phillips. As you might guess, the website has a European focus, although not exclusively so. In a recent post, Michael Thesen wrote about the ongoing patent litigation between Samsung and Apple – with a focus on a German preliminary injunction based upon a European Design Registration. The following is reproduced with permission.

* * *

IgunA preliminary injunction granted on the request of Apple for preventing the sales of Samsung's Galaxy Pad in most of Germany has recently caused a fairly big swivet in the IP community. This 1st instance case, featuring an industrial design and a defendant citing somewhat flimsy evidence, has even found its way to the hall of fame of "patent wars" in minimum time.

What is surprising from a patent litigator's point of view is how simple this is. How is it possible that a preliminary injunction is granted based on an unexamined right? [DDC Note: Unlike US Design Patents, Europe Design Rights are registered without substantive examination.] 

As everywhere, the decision to grant a preliminary injunction requires a careful balancing of the right owner's interest in preventing damages of irreparable nature and the defendant's interest in a fair procedure. For any kind of protective right, doubts in the validity and doubts in the question of infringement will lead to a refusing decision in order to safely avoid erroneous judgments due to precipitate action. 

In patent matters, even a successfully completed examination procedure is not necessarily sufficient to prove the enforceability with a sufficient degree of certainty (at least in Germany). Rather, additional conditions have to be met. In the case of unexamined utility models, the burden of substantiating the enforceability is at the plaintiff's side, which must produce at least the results of a professional search carried out on the subject-matter of the utility model or a positive decision of an invalidity procedure.

Nothing of this kind can be found in the judgment of the Düsseldorf court – the reason being fairly simple: the validity is legally presumed in Art. 85(1) of the Community Design Regulation (CDR), i.e. the court has to treat the community design as valid. This legal presumption may be challenged by way of a counterclaim. However, this shifts the burden of proof/substantiation to the defendant's side. The applicability of Art. 85(1) CDR to interim relief has been questioned, but is generally accepted as far as the author of this note knows.

In practice, the short time scale of procedures in interim relief, the lack of search possibilities comparable to those available for patents and utility models and an official search result to start with leaves the defendant defenseless. This has a further crucial effect on the question of infringement because the defendant has practically no possibility to substantiate the existing design corpus such that the judge has to presume a high degree of freedom of the designer and thus a large scope of protection (cf. Art 10(2) CDR).

Further, the Hagen District court holds that the damages caused by infringements of industrial designs are more likely to be of irreparable nature as compared to patents because the industrial value of the former lies primarily in its individual character, which would be "diluted" when admitting counterfeits during the procedure of the merits, whereas the value of the patent basically lies in its technical advantages which are, as such, not affected by counterfeits on the market.

In particular in the world of telecommunication patent wars there is one further feature of industrial designs which makes them frightening weapons: they are not essential for standards and, thus, not subject to FRAND agreements. As a matter of course, there is no way to obtain interim relief against a global competitor on the basis of a standard-relevant patent. 

In other words, you need not bother with being fair, reasonable and non-discriminative when using industrial designs.

The result is that industrial designs are tools which are largely underestimated in the portfolio of most of the IP right holders. Design rights are not expensive, powerful, can be enforced rapidly, easy to understand even for less experienced judges or customs officers, not susceptible for translation errors even in China, and deserve a decent fraction of every company's IP budget.

The original post can be found here: http://patlit.blogspot.com/2011/10/industrial-designs-wonder-weapon-for.html. 

Bosch v. Pylon: jettisoning the presumption of irreparable harm in injunction relief

Injunctions, Patent, Patent Cases 2011, ,

By Jason Rantanen

Robert Bosch LLC v. Pylon Mfg. Corp. (Fed. Cir. 2011) Download 11-1096
Panel: Bryson (dissenting-in-part), O'Malley (author), Reyna

This is a very important Federal Circuit decision that firmly eliminates the presumption of irreparable harm in the context of injunctive relief.  While laying this issue to rest, however, the court offers an alternative idea: that even post-eBay, courts should (and implicitly must) consider the fundamental nature of patents as property rights when conducting an injunction analysis.

Wiper bladeThis case involves wiper blade technology.  Bosch, the patent holder, sued Pylon for infringement of a set of wiper blade patents.  At the trial court level, Bosch prevailed on a jury finding of validity and infringement before requesting entry of a permanent injunction.  The district court denied the injunction and Bosch sought interlocutory appeal of the denial while the damages determination was pending.

The presumption of irreparable harm is dead. Much attorney and commentator ink has been spilled over whether the presumption of irreparable harm following judgment of infringement and validity survived eBay Inc. v. MercExchange, L.L.C.  The Federal Circuit's opinion in Bosch v. Pylon should put an end to any further debate.  "We take this opportunity to put the question to rest and confirm that eBay jettisoned the presumption of irreparable harm as it applies to determining the appropriateness of injunctive relief."  Slip Op. at 10.  Although not expressly stated by the court, the unequivocal implication is that this is as true for preliminary injunctions as it is for permanent injunctions.

Long live the requirement that courts acknowledge the fundamental nature of patents as property rights! While affirming the death of the presumption of irreparable harm, Bosch simultaneously suggests an alternative approach that perhaps may turn out not all that different: the importance of recognizing that patents are property rights when performing the injunction analysis.

Although eBay abolishes our general rule that an injunction normally will issue when a patent is found to have been valid and infringed, it does not swing the pendulum in the opposite direction. In other words, even though a successful patent infringement plaintiff can no longer rely on presumptions or other short-cuts to support a request for a permanent injunction, it does not follow that courts should entirely ignore the fundamental nature of patents as property rights granting the owner the right to exclude.

Slip Op. at 11. In other words, "While the patentee’s right to exclude alone cannot justify an injunction, it should not be ignored either."  Id. 

In the end, however, Bosch makes little use of this new approach, instead focusing on other types of errors committed by the district court.   Thus, it remains to be seen whether a failure to consider the "fundamental nature" of patent rights will be grounds for reversal. 

Reversal of district court denial of permanent injunction: In reversing the denial of an injunction, the court applies an approach reminiscent of the Supreme Court's own jurisprudence in recent years. 

Over the past quarter-century, this court has encountered many cases involving a practicing patentee seeking to permanently enjoin a competitor upon an adjudication of infringement. In deciding these cases, we have developed certain legal standards that inform the four-factor inquiry and, in particular, the question of irreparable harm. While none of these standards alone may justify a general rule or an effectively irrebuttable presumption that an injunction should issue, a proper application of the standards to the facts of this case compels the conclusion that Bosch is entitled to the injunction it seeks. It is in ignoring these standards, and supplanting them with its own, that the district court abused its discretion.

Slip Op. at 12.  Under this precedent, the court identifies two related legal errors and an error of judgment; taking the all the factors together, the majority concludes, compels the entry of a permanent injunction. The legal errors consisted of the district court's conclusions that the presence of additional competitors in the market, without more, cuts against a finding of irreparable harm, as did the non-core nature of Bosch's wiper blade business in relation to its business as a whole.  "Injuries that affect a “non-core” aspect of a patentee’s business are equally capable of being irreparable as ones that affect more significant operations."  Slip Op. at 16.  Ultimately, the trial court's error "arises from its conclusion that, if a fact supports the granting of an injunction, its absence likely compels the denial of one.  That is not the law, however."  Slip Op. at 17. 

Dissenting in part, Judge Bryson disagreed with the majority's decision to remand with instructions to enter an injunction.  While Judge Bryson would not have affirmed the denial of an injunction, nor would he have expressly reversed, instead preferring to remand the matter back to the district court for further findings of fact and a reweighing of the equities.  

Guest Post: First Patent Reform, Now Trade Secret Reform?

Patent, Trade Secret

By David S. Almeling

Last month, President Obama signed into law the America Invents Act, enacting the most significant reform to patent law in a half-century. Last week, Senators Herb Kohl and Christopher Coons introduced an amendment to the Currency Exchange Rate Oversight Reform Act (the "amendment"), which would, for the first time, provide a federal right of civil action for trade secret owners. In a press release announcing the amendment, Senator Coons stated it "would allow for a single, uniform, nationwide cause of action instead of the patchwork of state laws now in place, and would elevate trade-secret intellectual property on the same level as copyright, trademark and patent violations."

Although it's a step in the right direction, the amendment falls short. This article summarizes the amendment and explains why it's not a complete solution to the problems it seeks to solve.

Our State-Based Trade Secret Regime

Unlike trademarks, copyrights, and patents, trade secrets are not governed primarily by federal statute. Each state retains its own autonomous trade secret law. The inevitable result is that trade secret law differs from state to state. For example:

  • Forty-six states have enacted some or all of the Uniform Trade Secrets Act ("UTSA"). Those states aren't a unified bunch, though, as state legislatures made modifications to the UTSA and state courts adopted various interpretations of even the same provisions. The four states that don't follow the UTSA — Massachusetts, New Jersey, New York, and Texas — rely instead on the 1939 Restatement of Torts and other sources.
  • Some states, such as Illinois, embrace the inevitable-disclosure doctrine, under which a court can enjoin an employee from working for a new company when that employee had access to her former employer's trade secrets and has responsibilities at the new employer that make it inevitable that she would disclose those trade secrets. Other states, such as California, reject the doctrine. Many states haven't decided one way or another.
  • Most states have a statute of limitations that lasts three years (e.g., California). Other states have statutes as short as two years (e.g., Texas) and as long as five (e.g., Illinois).

With these interstate discrepancies comes a host of problems. A case's outcome may depend on the state in which suit is brought; the result in Kansas City, Missouri, may be different from the result across the river in Kansas City, Kansas. Another problem is the additional burden on plaintiffs and defendants, who must research which jurisdiction's laws are most favorable to their case, and on courts, which must decide between the competing laws. Such differences also create uncertainty, and thus cost, about which court will decide the dispute and what law that court will apply. Such differences impose further costs on trade secret owners who operate in multiple states, as they must protect trade secrets in a way that complies with the laws of each state.

The Amendment

The amendment would amend the federal Economic Espionage Act ("EEA"), which criminalizes certain types of trade secret misappropriation, to include a right of civil action for anyone "aggrieved by a violation of section 1832(a)." Section 1832(a) is one of the two types of conduct prohibited under the EEA, and it applies to misappropriating trade secrets related to or included in a product that is produced for or placed in interstate commerce knowing or intending that the misappropriation will injure the trade secret owner.

This new right of action would be limited to trade secret owners who provide a "sworn representation . . . that the dispute involves either substantial need for nationwide service of process or misappropriation of trade secrets from the United States to another country."

The amendment provides various forms of relief, including injunctive relief, damages, exemplary damages, and reasonable royalties. Significantly, the amendment also authorizes a court to issue a seizure order for property "used or intended to be used . . . to commit or facilitate the commission of the violation alleged in the civil action."

The amendment would not preempt any other law: "Nothing in the amendments made by this section shall be construed to modify the rule of construction under section 1838 of title 18, United States Code, or to preempt any other provision of law."

The Amendment is Limited

Among the amendment's limitations:

  • It doesn't "preempt any other provision of law." Translation: the amendment doesn't replace the current state-based regime, but instead adds a new law to the mix.
  • It applies only to one of the two categories of misappropriation prohibited by the EEA, and that category does not include many forms of misappropriation.
  • It applies only to trade secrets that are "related to or included in a product" — a subset of all trade secrets, which broadly include any information that is secret, derives economic value from that secrecy, and is the subject of reasonable measures to maintain its secrecy.
  • It applies only if the case involves either the need for nationwide service of process or the misappropriation of trade secrets from the U.S. to another country. Only a small percentage of cases fall into those categories.
  • By amending the EEA, the amendment incorporates the EEA's substantive requirements, including intent, that are in addition to the usual elements necessary to establish a prima facie case of trade secret misappropriation.

I spoke with a member of Senator Kohl's staff, who said that one purpose of the amendment is to expand the current framework of the EEA by providing a limited federal right of civil action. That is a laudable first step, but the amendment won't fix the patchwork problem because the only way to eliminate differences among states is to preempt state laws.

So if the amendment won't work, what law will? One that provides a private right of action for all types of trade secret misappropriation and that preempts inconsistent state law. One, quite simply, that replaces the current state-based trade secret regime with a federal one.

David Almeling is a counsel with O'Melveny & Myers in the firm's San Francisco office. This article does not purport to represent the views of O'Melveny or its clients.