IP Dragon Speaks at 3rd Global Forum on Intellectual Property, Singapore, January 6 and 7, 2011
Posted by: Danny Freidmann
from Patent Blog: IP Dragon
9/6/2010
IP Dragon is very honored he is invited by the IP Academy of Singapore to speak at the 3rd Global Forum on Intellectual Property, on January 6 and 7, 2011. This years theme is very actual: "Turbulent Times: Onwards and Upwards for Intellectual Property?"

I am very impressed by the learned line-up and I am very sure special things will happen when so much IP passionate scholars and practisioners fill up the same Singaporean space.

The Chairman of the IP Academy, professor David Llewelyn, and author of the book 'Invisible Gold in Asia' which will be reviewed on this blog soon, and the following IP scholars and practisioners will be present:
For an updated list of speakers, see here.

What Can A Famous Food Brand Do Against Footwear Using Its Mark?
Posted by: Danny Freidmann
from Patent Blog: IP Dragon
9/6/2010
As a vegetarian I do not frequent the many McDonald's fastfood joints that can be found in China and which turn the slim people obese, just as they did with the American and European populations. I am not really certain what is on sale inside a McDonald's, but when I was in Shenzhen near the beach I was surprised to see that McDonald's has been diversifying into toe slippers. You could say, well that is not really diversifying, because toes could be considered meat too, although not dead meat. Then again, maybe it was not the fast food chain's idea to put its trademark on the slippers. Let's assume that they did not. What could a(n) (in)famous company such as McDonald's do against such unauthorised use of their mark?

April 23, 2009, China's Supreme People's Court promulgated the 'Interpretation on the Application of the Law Concerning Several Issuels Regarding the Trials of Civil Disputes Relating to the Protection of Famous Trademarks' (Judicial Interpretation on Famous Trademarks judicial interpretation).

So since that time the judicial interpretation clarifies that a famous trademarks registered in certain product/service classes is protected against a mark that is identical or similar but on products/services that are dissimilar.
"If the plaintiff files a motion to enjoin the defendant from using a trademark, which is identical with or similar to its famous registered trademark, or enterprise name on dissimilar commodities, the people's court shall, in light of the concrete circumstance of the case, make a ruling after comprehensively taking into account the following factors:

1. the distinctiveness of the said famous trademark;
2. how well the famous trademark is known by the relevant general public that use the commodities using the trademark against which the lawsuit is filed or using the enterprise name;
3. the connection between the commodities using the famous trademark and the commodities using the trademark against which the lawsuit is filed or using the enterprise name;
4. other relevant factors."
This is based on China's WTO obligations to comply to TRIPs.
"Article 6bis of the Paris Convention (1967) shall apply, mutatus mutandis, to goods or services which ar not similar to those in respect of which a trademark is registered, provided that use of that trademark in relation to those goods or services would indicate a connection between those goods or services and the owner of the registered trademark and provided that the interests of the owner of the registered trademark are likeley to be damaged by such use."

This goes further than article 6bis of the Paris Convention of which China is a member since 1985.

(1) "The countries of the Union undertake, ex officio if their legislation so permits, or at the request of an interested party, to refuse or to cancel the registration, and to prohibitthe use, of a trademark which constitutes a reproduction, an imitation, or a translation, liable to create confusion of a mark considered by the competent authority of the country of registration or use to be well known in that country as being already the mark of a person entitled to the benefits of this Convention and used for identical or similar goods. These provisions shall also apply when the essential partof the mark constitutes a reproduction of any such well-known mark or an imitation liable to create confusion therewith.
(2) A period of at least five years from the date of registration shall be allowed for requesting the cancellation of such a mark. The countries of the Union may provide for a period within which the prohibition of use must be requested.
(3) No time limit shall be fixed for requesting the cancellation or the prohibition of the use of marks registered or used in bad faith."

So if we apply article 10 Judicial Interpretation on Famous Trademarks.
(1) I think we can come to the conclusion that McDonald's is a distinctive mark;
(2) And that it is well known to the relevant general public (because of its ubiquitous existence); (3) So what exactly is the connection between the commodoties of the famous mark and the dissimilar commodities of the mark that might infringe upon it? What is the connection between food and footwear? McDonald's could argue that the association with toe slippers is not conducive for fueling an appetite for its food, save for some foot fetishists. And this could dilute the brand.
(4) Other relevant factors, could be perhaps the popularity of the McDonald's toe slippers. Are they sold all over China, or just at the beach of Shenzhen. In other words the extend of the (potential) damage for the fast food chain.
Photo/text Danny Friedmann

Helping Entrepreneurs Succeed: Ron Conway and Mike Maples
Posted by: Scott Edward Walker of: Walker Corporate Law group
from Patent Blog: Walker
9/6/2010

To Our Clients & Friends: Welcome to our weekly series entitled “Helping Entrepreneurs Succeed.”  Each week, we post a short video clip of successful entrepreneurs, investors or business leaders on a variety of topics to help entrepreneurs succeed.

This week, we present legendary angel investor Ron Conway (commonly referred to as the “Godfather of Silicon Valley”) and super angel Mike Maples (managing partner of Floodgate).  In this interesting, three-minute clip (courtesy of Stanford University’s Entrepreneurship Corner), Ron and Mike provide strong, practical advice to startups, including the importance of (i) a low burn rate, (ii) a “lean, mean” team and (iii) a customer development strategy.  I hope you enjoy it.  Many thanks, Scott


Walker Twitter Highlights: August 29th – September 4th
Posted by: Scott Edward Walker of: Walker Corporate Law group
from Patent Blog: Walker
9/5/2010

I’m using Twitter as a form of micro-blogging to share interesting articles, blog posts and podcasts relating to entrepreneurship, startup and corporate law issues, and mergers & acquisitions.

For those of you who missed this week’s Twitter updates, below are my five most popular tweets (via bit.ly) and two most popular blog-related tweets.  If you’d like to see all of my tweets (or an RSS feed of them), you can do so here.  Many thanks, Scott

Read the rest of this entry »


Anglo-Chinese Memorandum of Understanding on Copyright
Posted by: Danny Freidmann
from Patent Blog: IP Dragon
9/5/2010

Intellectual property minister Wilcox and the president of the National Copyright Administration of China (NCAC) Liu Binjie signed a Memorandum of Understanding (MoA) on Copyright, read more on the UK Central Office of Information site here.



Mickey, Pokémon and Dooly Still Banned From Chinese Prime Time TV
Posted by: Danny Freidmann
from Patent Blog: IP Dragon
9/5/2010
September 30 to October 5, 2010, the second China International Animation Copyright Fair will be held in China's animation capital Dongguan, Guangdong province. Read an article by Tan Jing for News Guangdong here.

In 2010 foreign animations, such as Mickey Mouse (US), Pokemon (Japan) and Dooly (South Korean) have substantial mature industries, are still banned from prime time, a measure which started on September 1, 2006. The rationale behind the discriminatory measure is to support the fledgling domestic animation industry and to protect Chinese children from too much foreign exposure.

"The positioning of the second animation copyright fair will be clearer in order to focus on copyright protection and trade."

The American cartoon series The Transformers was provided to China Central TV (CCTV) free of charge, because they anticipate making money with the merchandise. Chinese animation companies are too small (at least in 2006), according to Crystal Wong of Asia Times, read here.

Q&A on Trademark Proactive (TP), Tipi and Indian Givers
Posted by: Danny Freidmann
from Patent Blog: IP Dragon
9/5/2010
I was delighted by the questions after I uploaded my Asia Pacific IP Forum presentation in Hong Kong to Slideshare: 'How Social Media Challenge the Brandscape for Trademark Holders' in which I propose a solution for trademark holders: Trademark Proactive (TP).

Below I will explain some key points of TP:

Why should a trademark holder give away some of its rights? Social media users will use or abuse trademarks, whether trademark holders want it or not. Because of the characterisics of Social Media the spreading of damaging content can hardly be stopped. However, with TP they do not give away any right. To be proactive a trademark holder engages with the Social Media users and regains some of its control by authorising some use of the trademark under certain conditions.

Why does service providers need to assume liability?
Service providers (such as Facebook, Twitter and Blogger) are more and more setting up the rules. Therefore it is fair they should also held liable for non-enforcement of these rules. This will be pushing service providers to come up with Terms of Use that are effectively enforceable. In other words, Social Media could become more or less restrictive than trademark law, on a contractual basis. So far the Social Media sites' business model is advertising paid by trademark holders. Therefore trademark holders it is justified that they get something in return: enforcement of their trademarks.

What makes an effective and efficient enforcement of trademark authorisations possible?
Social Media could automatically compare the request for a third level domain name or content which mentions a trademark, and a database in which trademark holders have given exactly what is possible with their trademarks and under what conditions. Enforcement could be also automatically, without elaborate notice and take down procedures.

What kind of trademark use and under what kind of conditions could a trademark holder proactively authorise to a Social Media user?
A trademark holder could for example proactively authorise that a Social Media user could use a trademarked logo online, to illustrate an article about the brand, under the condition that the logo is not altered, and that the logo is linked to the official website of the brand. Or the logo could altered, or used in parody, or used in comparative advertising (only in jurisdictions where this is allowed).

Why is the symbol of TP a tipi?
TP stands for Trademark Proactive, but can be pronounced as tipi. The tipi refers to a place where disputes can be solved. When the first Europeans came into contact with native Americans and for example they were cold, the Indians provided them with blankets. When they did not need the blankets anymore, the Indians wanted the blankets back. This lead to the misperception that the Indians wanted their presents back. That is how the saying: "Indian giver" came into being. Of course the Indians did not give a present, but just the right to use the blanket. TP should also give more clarity about how social media users are authorised to use trademarks.

What is next?
Feedback of trademark holders needs to be incorporated into a more definitive proposal.
Feedback to Danny Friedmann is welcome: ipdragon at gmail dot com


Uncreative Brand, Creative Brand in China
Posted by: Danny Freidmann
from Patent Blog: IP Dragon
9/4/2010
Uncreative Brand

In Yangshuo, next to Guilin, Guangxi province, you can see one of the most characteristic mountains of China. But if you bike through the village, you will notice some interesting shops as well. Almost next to each other you can see a shop that embodies the old copycat mentality and one that characterises the new creative brandbuilding mentality.

adivon, easily recognised as a blatant adidas clone, has some remarkable things to say on its corporate website about branding and trademarks:

"The company has always adhered to the marketing philosophy of human-oriented and loyalty-led and been upright and creditable. We are competing for first place in the industry and targeting for gold medal in the market as we are to create it into a Chinese famous trademark and international famous brand." See here.

It even has a webpage dedicated to "brand honor" which shows eight certificates including

- From 2008 the annual message trust the quality of the top ten brands";
- 500 Chinese brands
- Top Ten China Industry Brand Campaign
- Famous brand products in Fujian

Creative Brand
But only a few shops to the right one will find one of the most creative and esthetical Chinese brands I have ever seen: Mulinsen, a shoe brand, that wants to have a green image (the question is whether this is justified, since the shoe industry is a rather polluting industry with a big water footprint, read here) is of course because of the characters used. Mu 木 means tree; lin 林 means forest and sen 森 means many trees. So all characters amplify each other, sort of alliteration with Chinese characters, and then the logo with four times the character (or two times 林) is a very distinctive mark.

Mulinsen is also:

- Fujian famous brand
- Chinese famous brand

Photos/text Danny Friedmann

How Social Media Challenge the Brandscape for the Trademark Holders
Posted by: Danny Freidmann
from Patent Blog: IP Dragon
9/4/2010
Stan Abrams (China Hearsay), Chris Bailey (Rouse), Xie Lin (CUHK) and I gave presentations about the impact of Social Media on intellectual property (and vice versa).

My presentation focused on social media and trademark law. In this presentation I tried to shed light upon the challenges trademark holders are facing in these times of social media. With the solutions I propose I hope I can start a discussion about a more proactive role for trademark holders.

Your feedback is welcome (ipdragon at gmail dot com)
Danny

Board of Patent Appeals
Posted by: Dennis Crouch of: University of Missouri
from Patent Blog: PatentlyO
9/4/2010

Although the Board of Patent Appeals (BPAI) is working harder than ever, its backlog continues to rise. The first chart below shows the BPAI’s inventory of undecided appeals in ex parte cases. This only includes fully-briefed appeals whose dockets have been transferred to the BPAI and does not include the thousands of other applications where awaiting briefing. The average timing from notice-of-appeal to appellate decision is 29 months.

PatentLawPic1141

I spoke with BPAI officials who identified the jump in early 2009 as a one-time issue involving the bulk transfer of cases that had been previously delayed.

The next chart shows the number of Ex Parte cases decided each month. The average number of cases being decided each month continues to rise. However, the chart also reveals a high month-to-month variability. That variability is explained by the BPAI judge quota system. BPAI judge performance is primarily judged two times per year, and that process is reflected in a systematic incentive for the judges to do more work in Feburary and August and then less work in March and September.

PatentLawPic1142

Although the BPAI is deciding more cases than ever, inventory continues to rise because more appeals are being filed than ever.


Talking Quality
Posted by: David Kappos of: USPTO
from Patent Blog: USPTO
9/3/2010

With this blog I wanted to return to the topic of patent quality.  We talk all the time about how important it is.  There’s no question it is imperative to our agency and our applicants.  We've sought comments from the IP community on this topic, and we've held two roundtable meetings on it, all within the last 9 months.  But what is patent quality? That is, what constitutes a patent that is high in quality?

 

The answer to this question may depend on who you ask.  If you ask an attorney, she may say “A high-quality patent meets all statutory and regulatory requirements and will withstand legal challenges by competitors or other third parties.”  While true, such a description isn’t easy to apply in the examination process.

 

An inventor might say, “A high-quality patent is one that covers the full scope of my invention and no less.”  Well, perhaps that’s a bit more helpful.

 

As I said a number of times last year when we kicked off the joint PPAC-USPTO Quality Taskforce, our historical measurements of quality are long overdue to be revised.  We have concluded the first phase of the Quality Taskforce work, and we are on track to introduce some new quality metrics this coming fiscal year.  You’ll be hearing more about these metrics in the near future.

 

While the above represents good progress, and while our current quality metrics indicate that quality has been improving, I think it is fair to say we all want to do more relative to quality.  So while we continue with efforts stemming from the Quality Taskforce, I'd like to ask about quality from another viewpoint: how do patent examiners think about quality, and especially, what can USPTO management do to ensure that examiners are able to perform the highest quality examinations.

 

I know that IT is a big part of the quality challenge for examiners, and that we need to provide them with better tools to do their jobs.   We’re working on that.

 

Also, I know that quality output is, to a substantial degree, helped by quality input from you, our applicants.  And we look forward to continuing discussions with you in this regard.

 

And of course there is time -- high quality work requires time.  That is why we included increased up-front time for examination when we redesigned the count system last year.

 

Beyond the IT and applicant components, and the time component of quality, what can USPTO management do to help examiners to conduct high quality examinations?  Is more technology training the key?  Would more training on case law be helpful?   More training in search strategies?  Would more access to senior examiners who can help with tough issues be helpful?  Or more time available to SPEs for coaching?  How can our quality review processes change to help them do quality work? What other investments in our examining corps would be worthwhile toward achieving higher quality?

 

I look forward to your feedback and look forward to further discussions on quality over the coming weeks and months.


Motivational Clips for Entrepreneurs: “The Call of the Entrepreneur”
Posted by: Scott Edward Walker of: Walker Corporate Law group
from Patent Blog: Walker
9/3/2010

“People often say that motivation doesn’t last.  Well, neither does bathing – that’s why we recommend it daily.” -- Zig Ziglar

Welcome to our weekly series entitled “Motivational Clips for Entrepreneurs.”  Each week, we post a short video clip to inspire and motivate our fellow entrepreneurs.  Why?  Because it’s fuckn tough being an entrepreneur; and whether you’re launching your venture, trying to execute your business model or trying to raise funds, you need a little juice to help you push the ball forward.  I hope these videos are a little juice.  Cheers, Scott


Clean IP Blog Rates Solar P’s & Q’s
Posted by: Eric Lane of: Luce, Forward, Hamilton & Scripps
from Patent Blog: Green Patent Blog
9/3/2010

Justin Blows published the results of a recent study on his Clean IP blog regarding solar patent quality.  The study focuses on Australian patentees in particular but includes data from other countries as well.

Blows and his colleague George Mokdsi, both of the Griffith Hack law firm, attempted to measure the quality of patents relating to solar power technologies by using the number of times a patent was cited during prosecution of subsequent patent applications as a proxy for patent quality. 

The theory is that oft-cited patents are likely to involve foundational technologies that others in an industry may need access to.  These patents also provide strong protection to the patentee by forcing later patent applications to reduce their scope of protection:

A patent that discloses a technology with strong foundational characteristics is likely to be cited during the prosecution of a latter filed patent that discloses incremental advances on the same technology.  Often, the foundational patent will force down the scope of protection afforded by latter filed patents.  Thus, patents with high citation counts generally provide broad and robust protection.

The analysis was restricted to U.S. patents and the data was retrieved from the U.S. Patent and Trademark Office.  However, patentees from a number of countries were considered, including the U.S., Great Britain, Japan, Germany, France, Australia, Italy, China, Korea and Taiwan.

The study found that U.S. patentees have the highest quality solar power patents:

Patents from the US are on average cited the most, at 2.9 times per application.  By this metric, US solar patents have on average the highest quality. 

The study also notes trends in solar patent quality, with Japan’s quality increasing and the U.S.’s and Australia’s declining.

According to the study, the U.S. winner was U.S. Patent No. 6,297,539 (”‘539 Patent”), which was cited 181 times.  The ‘539 Patent, issued October 2, 2001, is entitled “Doped zirconia, or zirconia-like, dielectric film transistor structure and deposition method for same” and lists Sharp Laboratories of America as the assignee.

The Australian winner was U.S. Patent No. 6,429,037 (’037 Patent), cited 17 times.  The ‘037 Patent issued August 6, 2002 and is entitled “Self aligning method for forming a selective emitter and metallization in a solar cell”.   The ‘037 Patent lists Unisearch Limited, a Syndey company, as the assignee.


USPTO Issues Updated KSR Guidelines on Obviousness
Posted by: Peter Zura of: Kattern Muchin Rosenman
from Patent Blog: The 271 Patent Blog
9/2/2010

The USPTO recently published a 15-page notice updating the 2007 KSR Guidelines.  The update reviews all of the most relevant Federal Circuit caselaw (over 20 cases) dealing with obviousness since KSR, and distills the rulings down to a reader-friendly format that concludes each case with a handy "teaching point."

In a nutshell, the update covers (1) principles of obviousness, (2) the impact of the KSR decision, (3) obviousness examples from Federal Circuit cases, which includes

  • Combining prior art elements
  • Substituting one known element for another, and
  • The "obvious to try" rationale
Finally, the update includes Federal Circuit cases discussing consideration of evidence in cases of obviousness.

The USPTO is also seeking comments from the public, and is "especially interested in receiving suggestions of recent decisional law in the field of obviousness that would have particular value as teaching tools." Comments concerning the 2010 KSR Guidelines Update may be sent by email to KSR_Guidance@uspto.gov.

The 2010 update is a fantastic teaching tool, and should be read by every practitioner.  Some highlights from the update:

The Principles of Obviousness:
It is important for Office personnel to recognize that when they do choose to formulate an obviousness rejection using one of the rationales suggested by the Supreme Court in KSR and discussed in the 2007 KSR Guidelines, they are to adhere to the instructions provided in the MPEP regarding the necessary factual findings.

[I]t remains Office policy that appropriate factual findings are required in order to apply the enumerated rationales properly. If a rejection has been made that omits one of the required factual findings, and in response to the rejection a practitioner or inventor points out the omission, Office personnel must either withdraw the rejection, or repeat the rejection including all required factual findings.
The Impact of KSR:
Office personnel as well as practitioners should also recognize the significant extent to which the obviousness inquiry has remained constant in the aftermath of KSR.

[W]hen considering obviousness, Office personnel are cautioned against treating any line of reasoning as a per se rule . . . for example, automating a manual activity, making portable, making separable, reversal or duplication of parts, or purifying an old product may form the basis of a rejection. However, such rationales should not be treated as per se rules, but rather must be explained and shown to apply to the facts at hand. A similar caveat applies to any obviousness analysis. Simply stating the principle (e.g., ‘‘art recognized equivalent,’’ ‘‘structural similarity’’) without providing an explanation of its applicability to the facts of the case at hand is generally not sufficient to establish a prima facie case of obviousness.
Combining Prior Art Elements:
Even where a general method that could have been applied to make the claimed product was known and within the level of skill of the ordinary artisan, the claim may nevertheless be nonobvious if the problem which had suggested use of the method had been previously unknown. [In re Omeprazole Patent Litigation, 536 F.3d 1361 (Fed. Cir. 2008)]

Office personnel should note that in this case the modification of the prior art that had been presented as an argument for obviousness was an extra process step that added an additional component to a known, successfully marketed formulation. The proposed modification thus amounted to extra work and greater expense for no apparent reason. This is not the same as combining known prior art elements A and B when each would have been expected to contribute its own known properties to the final product.

[M]erely pointing to the presence of all claim elements in the prior art is not a complete statement of a rejection for obviousness. In accordance with MPEP § 2143 A(3), a proper rejection based on the rationale that the claimed invention is a combination of prior art elements also includes a finding that results flowing from the combination would have been predictable to a person of ordinary skill in the art. MPEP § 2143 A(3). If results would not have been predictable, Office personnel should not enter an obviousness rejection using the combination of prior art elements rationale, and should withdraw such a rejection if it has been made.
Substituting One Known Element for Another:

[I]f the reference does not teach that a combination is undesirable, then it cannot be said to teach away. An assessment of whether a combination would render the device inoperable must not ‘‘ignore the modifications that one skilled in the art would make to a device borrowed from the prior art.’’
"Obvious to Try":
Some commentators on the KSR decision have expressed a concern that because inventive activities are always carried out in the context of what has come before and not in a vacuum, few inventions will survive scrutiny under an obvious to try standard. The cases decided since KSR have proved this fear to have been unfounded. Courts appear to be applying the KSR requirement for ‘‘a finite number of identified predictable solutions’’ in a manner that places particular emphasis on predictability and the reasonable expectations of those of ordinary skill in the art.

[T]he Federal Circuit cautioned that an obviousness inquiry based on an obvious to try rationale must always be undertaken in the context of the subject matter in question, ‘‘including the characteristics of the science or technology, its state of advance, the nature of the known choices, the specificity or generality of the prior art, and the predictability of results in the area of interest.’’

Read/download the USPTO's 2010 KSR Updates here (link)

Read/download the original 2007 KSR guidelines here (link)

Visit the USPTO KSR Examination Training Materials site here (link)


USPTO Guidelines for Determining Obviousness
Posted by: Dennis Crouch of: University of Missouri
from Patent Blog: PatentlyO
9/2/2010

The USPTO has released a set of updated examination guidelines on the core patentability issue of obviousness. The 18–page guidelines do not have the force of law, but will impact how examiners judge obviousness in practice. The updates primarily focus on Federal Circuit opinions that interpret and implement the holdings of KSR v. Teleflex, 550 U.S 398 (2007). I have copied the following tables from the Federal Register. [http://edocket.access.gpo.gov/2010/pdf/2010-21646.pdf].

 

Combining Prior Art Elements

In re Omeprazole Patent Litigation, 536 F.3d 1361 (Fed. Cir. 2008).

Even where a general method that could have been applied to make the claimed product was known and within the level of skill of the ordinary artisan, the claim may nevertheless be nonobvious if the problem which had suggested use of the method had been previously unknown.

Crocs, Inc. v. U.S. Int'l Trade Comm'n., 598 F.3d 1294 (Fed. Cir. 2010).

A claimed combination of prior art elements may be nonobvious where the prior art teaches away from the claimed combination and the combination yields more than predictable results.

Sundance, Inc. v. DeMonte Fabricating Ltd., 550 F.3d 1356 (Fed. Cir. 2008).

A claimed invention is likely to be obvious if it is a combination of known prior art elements that would reasonably have been expected to maintain their respective properties or functions after they have been combined.

Ecolab, Inc. v. FMC Corp., 569 F.3d 1335 (Fed. Cir. 2009).

A combination of known elements would have been prima facie obvious if an ordinarily skilled artisan would have recognized an apparent reason to combine those elements and would have known how to do so.

Wyers v. Master Lock Co., No. 2009–1412, —F.3d—, 2010 WL 2901839 (Fed. Cir. July 22, 2010).

The scope of analogous art is to be construed broadly and includes references that are reasonably pertinent to the problem that the inventor was trying to solve. Common sense may be used to support a legal conclusion of obviousness so long as it is explained with sufficient reasoning.

DePuy Spine, Inc. v. Medtronic Sofamor Danek, Inc., 567 F.3d 1314 (Fed. Cir. 2009).

Predictability as discussed in KSR encompasses the expectation that prior art elements are capable of being combined, as well as the expectation that the combination would have worked for its intended purpose. An inference that a claimed combination would not have been obvious is especially strong where the prior art's teachings undermine the very reason being proffered as to why a person of ordinary skill would have combined the known elements.

   

Substituting One Known Element for Another

In re ICON Health & Fitness, Inc., 496 F.3d 1374 (Fed. Cir. 2007).

When determining whether a reference in a different field of endeavor may be used to support a case of obviousness (i.e., is analogous), it is necessary to consider the problem to be solved.

Agrizap, Inc. v. Woodstream Corp., 520 F.3d 1337 (Fed. Cir. 2008).

Analogous art is not limited to references in the field of endeavor of the invention, but also includes references that would have been recognized by those of ordinary skill in the art as useful for applicant's purpose.

Muniauction, Inc. v. Thomson Corp., 532 F.3d 1318 (Fed. Cir. 2008).

Because Internet and Web browser technologies had become commonplace for communicating and displaying information, it would have been obvious to adapt existing processes to incorporate them for those functions.

Aventis Pharma Deutschland v. Lupin, Ltd., 499 F.3d 1293 (Fed. Cir. 2007).

A chemical compound would have been obvious over a mixture containing that compound as well as other compounds where it was known or the skilled artisan had reason to believe that some desirable property of the mixture was derived in whole or in part from the claimed compound, and separating the claimed compound from the mixture was routine in the art.

Eisai Co. Ltd. v. Dr. Reddy's Labs., Ltd., 533 F.3d 1353 (Fed. Cir. 2008).

A claimed compound would not have been obvious where there was no reason to modify the closest prior art lead compound to obtain the claimed compound and the prior art taught that modifying the lead compound would destroy its advantageous property. Any known compound may serve as a lead compound when there is some reason for starting with that lead compound and modifying it to obtain the claimed compound.

Procter & Gamble Co. v. Teva Pharmaceuticals USA, Inc., 566 F.3d 989 (Fed. Cir. 2009).

It is not necessary to select a single compound as a ''lead compound'' in order to support an obviousness rejection. However, where there was reason to select and modify the lead compound to obtain the claimed compound, but no reasonable expectation of success, the claimed compound would not have been obvious.

Altana Pharma AG v. Teva Pharms. USA, Inc., 566 F.3d 999 (Fed. Cir. 2009).

Obviousness of a chemical compound in view of its structural similarity to a prior art compound may be shown by identifying some line of reasoning that would have led one of ordinary skill in the art to select and modify a prior art lead compound in a particular way to produce the claimed compound. It is not necessary for the reasoning to be explicitly found in the prior art of record, nor is it necessary for the prior art to point to only a single lead compound.

   

The Obvious To Try Rationale

In re Kubin, 561 F.3d 1351 (Fed. Cir. 2009).

A claimed polynucleotide would have been obvious over the known protein that it encodes where the skilled artisan would have had a reasonable expectation of success in deriving the claimed polynucleotide using standard biochemical techniques, and the skilled artisan would have had a reason to try to isolate the claimed polynucleotide. KSR applies to all technologies, rather than just the ''predictable'' arts.

Takeda Chem. Indus. v. Alphapharm Pty., Ltd., 492 F.3d 1350 (Fed. Cir. 2007).

A claimed compound would not have been obvious where it was not obvious to try to obtain it from a broad range of compounds, any one of which could have been selected as the lead compound for further investigation, and the prior art taught away from using a particular lead compound, and there was no predictability or reasonable expectation of success in making the particular modifications necessary to transform the lead compound into the claimed compound.

Ortho-McNeil Pharmaceutical, Inc. v. Mylan Labs, Inc., 520 F.3d 1358 (Fed. Cir. 2008).

Where the claimed anti-convulsant drug had been discovered somewhat serendipitously in the course of research aimed at finding a new anti-diabetic drug, it would not have been obvious to try to obtain a claimed compound where the prior art did not present a finite and easily traversed number of potential starting compounds, and there was no apparent reason for selecting a particular starting compound from among a number of unpredictable alternatives.

Bayer Schering Pharma A.G. v. Barr Labs., Inc., 575 F.3d 1341 (Fed. Cir. 2009).

A claimed compound would have been obvious where it was obvious to try to obtain it from a finite and easily traversed number of options that was narrowed down from a larger set of possibilities by the prior art, and the outcome of obtaining the claimed compound was reasonably predictable.

Sanofi-Synthelabo v. Apotex, Inc., 550 F.3d 1075 (Fed. Cir. 2008).

A claimed isolated stereoisomer would not have been obvious where the claimed stereoisomer exhibits unexpectedly strong therapeutic advantages over the prior art racemic mixture without the correspondingly expected toxicity, and the resulting properties of the enantiomers separated from the racemic mixture were unpredictable.

Rolls-Royce, PLC v. United Technologies Corp., 603 F.3d 1325 (Fed. Cir. 2010).

An obvious to try rationale may be proper when the possible options for solving a problem were known and finite. However, if the possible options were not either known or finite, then an obvious to try rationale cannot be used to support a conclusion of obviousness.

Perfect Web Techs., Inc. v. InfoUSA, Inc., 587 F.3d 1324 (Fed. Cir. 2009).

Where there were a finite number of identified, predictable solutions and there is no evidence of unexpected results, an obvious to try inquiry may properly lead to a legal conclusion of obviousness. Common sense may be used to support a legal conclusion of obviousness so long as it is explained with sufficient reasoning.

   

Consideration of Evidence

PharmaStem Therapeutics, Inc. v. ViaCell, Inc., 491 F.3d 1342 (Fed. Cir. 2007).

Even though all evidence must be considered in an obviousness analysis, evidence of nonobviousness may be outweighed by contradictory evidence in the record or by what is in the specification. Although a reasonable expectation of success is needed to support a case of obviousness, absolute predictability is not required.

In re Sullivan, 498 F.3d 1345 (Fed. Cir. 2007).

All evidence, including evidence rebutting a prima facie case of obviousness, must be considered when properly presented.

Hearing Components, Inc. v. Shure Inc., 600 F.3d 1357 (Fed. Cir. 2010).

Evidence that has been properly presented in a timely manner must be considered on the record. Evidence of commercial success is pertinent where a nexus between the success of the product and the claimed invention has been demonstrated.

Asyst Techs., Inc. v. Emtrak, Inc., 544 F.3d 1310 (Fed. Cir. 2008).

Evidence of secondary considerations of obviousness such as commercial success and long-felt need may be insufficient to overcome a prima facie case of obviousness if the prima facie case is strong. An argument for nonobviousness based on commercial success or long-felt need is undermined when there is a failure to link the commercial success or long-felt need to a claimed feature that distinguishes over the prior art.


Sun Pharmaceuticals v. Eli Lilly: The Creeping Expansion of the Doctrine of Obviousness-Type Double Patenting
Posted by: Chris Holman of: University of Missouri
from Patent Blog: Holman's Biotech IP
9/2/2010
In Sun v. Eli Lilly, a panel of the Federal Circuit held a Lilly patent claiming use of the drug gemcitabine (GEMZAR) for the treatment of cancer invalid for obviousness-type double patenting, in view of an earlier Lilly patent claiming the drug per se and its originally discovered use as an antiviral agent. The invalidated patent was set to expire on November 7, 2012, 2.5 years after the expiration of the patent claiming the drug active ingredient (May 15, 2010), so this could result in a substantial reduction in Lilly’s period of marketing exclusivity. Lilly is currently seeking en banc reconsideration by the Federal Circuit.

Sun represents the most recent in a series of Federal Circuit decisions expanding the scope of the judge made doctrine of obviousness type double patenting. In this article, I briefly summarize the history of the expansion, and outline why I think the court should take this opportunity to reconsider the implications of these cases en banc.

Eli Lilly's patent prosecution decisions that resulted in a finding of obviousness type double patenting

It is informative to review the facts of the case. In the early 1980s, a Lilly scientist invented a method for synthesizing a genus of chemical compounds including gemcitabine, something others had previously attempted but failed to accomplish. He also showed that the compound had antiviral activity. Lilly filed a patent application disclosing the genus of chemical compounds and their use as antiviral agents.

The original inventor of the compound, along with a second Lilly inventor, then discovered that gemcitabine has anticancer activities, so these inventors filed a second application claiming methods of using the drug to treat cancer. This application did not claim priority to the first application.

On the same day Lilly filed the second application, it also filed a CIP of the first application. In retrospect, this was a critical mistake. The CIP was apparently filed to expand upon the definition of the disclosed genus of compounds, basically by adding to it species wherein certain R groups could be hydrogens. Significantly, this added disclosure was not necessary in order to patent gemcitabine, since gemcitabine was disclosed in the originally filed patent application.

At that time, there was some uncertainty with respect to the extent to which it was necessary to update the best mode when filing a CIP application (this uncertainty was ultimately addressed in 1994 in Transco). In any event, presumably in an attempt to ensure compliance with the best mode requirement, Lilly also added disclosure of the anticancer properties of the chemical compounds in the CIP.

Ultimately, the CIP application resulted in a patent claiming the drug active ingredient as a composition of matter, and also methods of using it as an antiviral agent. Later, the second patent application issued with claims to methods of using the drug to treat cancer. In Sun v. Lilly, it was the disclosure of anticancer activity added to the first patent by means of the CIP application which was used as the basis for invalidating the second patent claiming that use. In the next section, I explain why this represents a significant expansion of the doctrine of obviousness type double patenting.

The creeping expansion of obviousness type double patenting

The Federal Circuit has established a two-step process for analyzing obviousness type double patenting. First, the court construe the claims in the earlier patent and the claims in the later patent, and determines the differences. Second, it determines whether those differences render the claims patentably distinct.

One fundamental distinction between analysis for obviousness under section 103 and obviousness type double patenting is that when analyzing for double patenting only the claims of the two patents are to be considered. As the Federal Circuit stated in 1992 in General Foods v. Studiengesellschaft Kohle, its "precedent makes clear that the disclosure of a patent cited in support of a double patenting rejection cannot be used as though it were prior art.”

However, in the 2002 decision of Geneva v. GSK, the Federal Circuit began chipping away at this prohibition against using the written description of the earlier patent to invalidate the second patent, and embarked upon what has become a creeping expansion of the doctrine. In that case, the earlier patent claimed a drug active ingredient. The written description portion of the earlier patent also describes a method of using the drug to treat a disease, but significantly, this use of the drug is never mentioned in the patent claims. Nonetheless, the panel used this disclosure in the written description of the first patent to invalidate a second patent claiming that method of use.

This seems to fly in the face of General Foods and the controlling case law. However, the Geneva panel justified its decision to go outside the claims of the first patent in its analysis by reasoning that the claim in the earlier patent "is drawn to a compound having a certain physical property," and thus, "[s[tanding alone, that claim does not adequately disclose the patent will bounce of the invention. Therefore, this court examines the specifications of those patents to ascertain any overlap in the claim scope for the double patenting comparison."

Although the Geneva panel states that it needed to refer to the written description of the first patent to determine the extent of overlap between the claims in the two patents, this explanation does not appear to survive close scrutiny. The claims in the first patent broadly recite chemical compound, with absolutely no limitation respecting the use of the compound. It is black letter law that a patent claiming a chemical compound dominates all uses of the compound as defined by the claims, including methods of using the compound that are not disclosed in the patent specification, and methods that were nonobvious and not even contemplated at the time the patent was filed. While it is undoubtedly appropriate to consult the entire specification in construing the scope of a patent claim, it is unnecessary to consult the specification for methods of using a compound when ascertaining the scope of a patent claim directed to the compound as a composition of matter.

Although the Geneva panel’s use of disclosure in the written description as a basis for invalidating the second patent is questionable, at least the panel provided a policy justification for his decision. The panel correctly noted that in order for chemical compound to be patentable, the patent applicant must disclose a utility for the compound. Since the earlier patent only identified a single utility for the claimed drug, the disclosure of that use was necessary for the patentability of the chemical compound. Thus, while it was incorrect for the panel to suggest that the disclosure of the method of use in the written description was relevant to the question of claim scope, it was clearly relevant to the question of patentability.

The Geneva panel stressed that since the earlier patent disclosed only a single utility of the compound, the claims of the second patent reciting nothing more than that disclosed utility as a method was not patentably distinct. In essence, the panel's decision can be rationalized as a policy of not allowing a second patent on a method of use if that method of use was critical to the patentability of the first patent claiming the molecule per se.

Five years later, the Federal Circuit again was faced with an allegation of double patenting involving a first patent claiming a drug active ingredient and a second patent claiming methods of using the drug active ingredient. In Pfizer v. Teva, the panel once again went beyond the language of the patent claims, and invalidated the second patent because the method of use claimed was disclosed in the written description section of the earlier patent.

Significantly, in Pfizer the first patent disclosed multiple uses of the composition, and the invalidated claims encompassed only some subset of those uses. Thus, the facts of Pfizer are distinguishable from those in Geneva, where the method of use claim was directed to the sole utility disclosed in the earlier patent, and thus presumably necessary takedown to the validity of the first patent. Thus the rationale to justify the Geneva decision, i.e., that the claimed method of use was critical to the patentability of the first patent, does not appear to exist in Pfizer. In effect, Pfizer expanded the rule set forth in Geneva, by holding that the disclosure of multiple uses of a molecule in the first patent renders unpatentable later claims directed towards any of those methods.
The Pfizer decision provides no policy justification for this expansion of the Geneva doctrine, and fails to even acknowledge the expansion. Nonetheless, one might justify it on policy grounds by pointing out that by disclosing multiple methods of use in the original patent application, the inventor was able to stake a claim of priority to these multiple uses by securing an early effective filing date. By choosing to avail itself to this earlier effective filing date, the patent applicant (arguably) should be limited to a single term for all of the patents issuing out of this single priority document.

We then come to the Sun v. Lilly decision, in which the panel further expands the holdings in Geneva and Pfizer by interpreting those decisions as creating a bright line rule that any use disclosed in a patent claiming a drug active ingredient precludes the owner of the patent from obtaining any second patent on one of the disclosed method of use, regardless of whether the claimed method of use was disclosed in the original patent application which provides the effective filing date for the first patent. Unlike the earlier cases, the method of use claimed in the second patent was not disclosed in the originally filed application to which the first patent claims priority.

Note that putative policy justifications for the Geneva and Pfizer decisions do not appear to be present in Sun. Unlike Geneva, the second patent does not claim a method of use that was critical to the patentability of the first patent. The first patent disclosed use of the compound as an antiviral agent, and the patent office issued patent claims directed towards use of the compound as an antiviral, raising a presumption that this is a valid practical utility which would confer patentability on the compound, regardless of the later disclosure of the anticancer activity. Furthermore, unlike the case in Pfizer, the later claimed method of use (anticancer) was not disclosed in the originally filed patent application that led to the first patent, so this first patent application was not available to Lilly to provide an effective priority date for the method of treating anticancer.

In fact, Lilly only ran afoul of obviousness type double patenting because it voluntarily chose to update and supplement the disclosure of the first filed patent application with the disclosure of anticancer activity. They could have avoided the problem by simply prosecuting the originally filed patent application to obtain patent claims covering the drug active ingredient, which it seems clear did not require disclosure of the additional material added by amendment to the CIP. If they wanted to expand the genus of chemical compounds, they could have filed the CIP as a divisional, thereby avoiding the need to add disclosure of the anticancer activity to the gemcitabine composition of matter patent.

In short, if Lilly had a crystal ball and could have foreseen the recent expansion of obviousness type patenting, it could have easily avoided obviousness type double patenting by simply altering its patent filing procedure. But this illustrates how the holding in Sun elevates form over substance.

The decision seems to conflict with 35 USC 103(c)

Congress amended the patent statute by introducing 35 USC 103(c), which basically shields companies from having the inventions of a company’s inventors rendered obvious by prior art created by other inventors at the same company. Congress’s intent was to encourage follow-on innovation and intra-company collaboration.

Originally, 103(c) only included 102(f) and 102(g) prior art, but it was subsequently amended to also include 102(e). In effect, Congress explicitly decided that commonly owned inventions should not be subject to invalidation for obviousness based on subject matter disclosed in a commonly assigned earlier filed patent application. Sun stands congressional intent on its head. By ignoring General Foods, it effectively allows the court to invalidate a patent based on a finding that it claims subject matter that is obvious in view of subject matter disclosed in the specification of an earlier filed commonly assigned patent application. But it goes even farther than that, for in Sun invalidity was based on subject matter added after the effective filing date, and thus not available as 102(e) prior art.

The biotech industry would benefit from en banc review of this issue


A number of issues raised by this and decision that would seem to warrant en banc review. There is clearly a tension between General Foods and Sun and its predecessors. While General Foods states that only the patent claims are to be compared, Geneva opened up the door to using the written description of the earlier patent to invalidate a later patent. In Pfizer and Sun, the door has opened wider and wider. The Federal Circuit should acknowledge this expansion of judge made law and consider whether it is justified by public policy considerations. If the court chooses to go down this route, it should delineate the boundaries of the expanded doctrine.

For one thing, it is unfair to patent owners to change the laws of patentability in a manner that invalidates a valuable patent for patent prosecution decisions made based on the case law at the time. In Festo, the Supreme Court stressed the importance of not altering the law in a way that undercuts the investment backed expectations of the inventive community.

Moving forward, some clarity on the issue would be very helpful. Today's inventors should understand the consequences of adding disclosure to a patent application, in order to rationally decide when to file a patent application, what to include in the disclosure, and when to invest in follow-on research.

For example, based on the Sun decision the wisest course for drug companies would be to file their original composition of matter patent application with a minimal disclosure of methods of using the compound sufficient to satisfy the utility requirement. There is an incentive to prioritize follow-on research on uses not disclosed in the original application, because presumably those uses will not be precluded from being patented separately. Companies might be less inclined to pursue research and development of methods of use disclosed in the earlier patent application, but perhaps that is a reason for the court to rethink the course it has embarked upon.

But who is to say for sure that the doctrine will not be expanded in subsequent decisions to cover methods of use that are not even disclosed in the earlier specification? It would certainly be consistent with the progressive expansion we have seen in going from Geneva to Pfizer to Sun. Uncertainty with respect to the availability of patent protection is a disincentive to future investment in innovation, and it would be nice if the en banc Federal Circuit would clarify the boundaries of the obviousness type double patenting doctrine sooner rather than later.

Successor Corporation Held Liable for Default Infringement Judgment Against Predecessor
Posted by: Dennis Crouch of: University of Missouri
from Patent Blog: PatentlyO
9/1/2010

DaewooFunai Electric Company v. Daewoo Electronics Corp. (Fed. Cir. 2010)

In 2004, Funai Electric sued four Daewoo entities for infringement of its patents covering various improved video cassette recorders (VCRs). Funai is a Japanese manufacturer of AV equipment. Daewoo was a historic Korean chaebol that splintered after a financial collapse in the late 1990’s.

Successor Liability: Two of the Daewoo defendants are predecessor companies of the other two defendants. One predecessor-successor pair includes Korean companies and the other pair includes their American counterparts.  At the time of the lawsuit, the two predecessor companies had legally transferred assets to their successors but had not yet ceased operations.  About one-year into the lawsuit, the two predecessor companies stopped participating in the litigation. The district court ordered a default judgment and awarded $8 million in default damages.  Funai then asked that the successor companies be held liable for the liabilities of their predecessors. The district court applied Korean corporate and contract law to hold that there is no successor liability. 

On appeal, the Federal Circuit reversed that judgment — holding that US successor-liability law (actually, New Jersey law) should apply when determining whether the American successor company is liable for the actions of its predecessor. Under New Jersey law, a successor company is liable when the business transfer is simply a “new hat” for the business. Since that was the case here, the Federal Circuit determined that the successor is liable for the default judgment.

The 50–page opinion (including a concurrence by Judge Linn) discussed several other issues. Notably, the opinion provides another example of a prosecution amendment made for purposes “tangential to patentability” and that therefore avoids prosecution history estoppel.

Prosecution History Estoppel: Funai argued that one of its asserted claims was infringed under the doctrine of equivalents (DOE).  Daewoo countered that DOE should be limited under the doctrine of prosecution history of estoppel based on a narrowing amendment made during prosecution of the application. In particular, the patentee had cancelled claims 1 and 2 and then added limitations from those claims into a former dependant claim.  The original claim 1 did not spell-out how insulation would take place while the amended claim indicated that a bearing holder would be “made of an insulating material.”

Under the Supreme Court’s Festo decision, an amendment made during prosecution does not implicate a prosecution history estoppel bar if the “rationale underlying the amendment [bears] no more than a tangential relation to the equivalent in question.”  On appeal, the Federal Circuit recognized the amended claim set as being narrowed, but held that “no estoppel exists” because amendment relating to the insulating material was made for purposes merely tangential to the patentability of the claim. 

It is apparent that the nature of the insulating material was not a factor in the allowance of claim 4, for this aspect was not at issue during prosecution. This limitation is in the category that the Court called “merely tangential” to the prosecution, as discussed in Festo.

The court therefore affirmed the holding of infringement under the doctrine of equivalents.


Law Review Case Note Topics for 2010-2011
Posted by: Dennis Crouch of: University of Missouri
from Patent Blog: PatentlyO
9/1/2010

Dear Law Review Editors: Please send me a note (dcrouch@patentlyo.com) to let me know about patent law focused articles that you publish in your journal so that I can highlight them on Patently-O.

Student Note Topics: Here are some suggestions for patent law focused law review topics for 2010-11 that I would like to see for my own edification. Please send me an e-mail if you choose one of these.


INJUNCTION BARRING ESC RESEARCH FUNDING APPEALED
Posted by: Warren Woessner
from Patent Blog: Patents 4 Life
9/1/2010

The Justice Department has appealed the injunction levied by Judge Lamberth of the D.C. District Court that would negate President Obama’s executive order, issued in 2009, that repealed President Bush’s order of 2001, barring Federal funding of research on embryonic stem cells (ESCs) except on a few lines. In my previous post, I reviewed some of the history of these executive orders. Repealing the Obama order has thrown the ESC research community into turmoil, as it is not even clear if research permitted under the restrictive Bush order can be funded, or even continued. This is because the basis for the Judge’s order is his belief that the Obama order conflicts with the Congressional amendment, renewed each year, that absolutely bars the use of Federal funds to support research that would destroy human embryos, even those that would be discarded by fertility clinics with the permission of all of the parties involved in their “creation.”

The best hope is probably the legislative fix proposed by Representative Diana DeGrette, who was able to get a bill permitting funding for ESC research passed by the House and the Senate twice during the Bush years. Each time, the President vetoed it. She has stated that she intends to offer the bill again, and hopes for (relatively) quick passage this fall.

Reuters – Justice Department Appeals Injunction on Stem Cell Funding


False Marking Claims: Standing
Posted by: Dennis Crouch of: University of Missouri
from Patent Blog: PatentlyO
9/1/2010

By Jason Rantanen

Stauffer v. Brooks Brothers, Inc. v. United States (Fed. Cir. 2010)

Raymond Stauffer brought an action against Brooks Brothers claiming that bow ties sold by the defendant were falsely marked with patents that expired in 1954 and 1955.  Stauffer is a patent attorney who purchased some of the marked bow ties.  The district court granted Brooks Brothers' motion to dismiss for lack of standing, and subsequently denied the United States' motion to intervene.  Stauffer and the United States appealed.

Section 292 states:
(a) . . .
Whoever marks upon, or affixes to . . . any unpatented article, the word “patent” or any word or number importing that the same is patented, for the purpose of deceiving the public
. . .
Shall be fined not more than $500 for every such offense.
(b) Any person may sue for the penalty, in which event one-half shall go to the person suing and the other to the use of the United States.

(emphasis added).  This type of language is called a "qui tam" provision, by which the government  essentially asigns its rights to a private party (the qui tam "relator").  Because the relator is standing in the place of the United States, he or she must prove that the government, as opposed to the relator, satisfies the requirements for standing.  Central to this case was the district court's determination that Stauffer failed to sufficiently allege that the United States suffered an injury in fact from Brooks Brothers' alleged false marking. 

On appeal, the Federal Circuit concluded that the district court had erred on this point:

Congress has, by enacting section 292, defined an injury in fact to the United States. In other words, a violation of that statute inherently constitutes an injury to the United States. In passing the statute prohibiting deceptive patent mismarking, Congress determined that such conduct is harmful and should be prohibited. The parties have not cited any case in which the government has been denied standing to enforce its own law. Because the government would have standing to enforce its own law, Stauffer, as the government’s assignee, also has standing to enforce section 292.

Slip Op. at 9.

The panel rejected Brooks Brothers' reliance on Lujan v. Defenders of Wildlife, 504 U.S. 555, 560–61 (1992), which denied plaintiffs standing under a citizen-suit provision, as relating only to suits against the government itself.  It also rejected the argument that Stauffer's standing depends on whether the alleged injury is proprietary or sovereign, concluding that both types of injury are sufficient to confer standing on the government, and therefore on the relator. 

With respect to the Government's request to intervene, the Federal Circuit determined that the district court  erred in concluding that the government lacked an interest sufficient to intervene as a matter of right under Rule 24(a)(2).  The panel stated that:

Contrary to Brooks Brothers’ position, the government has an interest in enforcement of its laws and in one half the fine that Stauffer claims, disposing of the action would “as a practical matter impair or impede the [gov-ernment’s] ability to protect its interest,” and Stauffer may not adequately represent that interest....As an initial matter, Brooks Brothers does not contest the government’s assertion that Stauffer does not adequately represent the United States’ interest in this case.

Furthermore, the government would not be able to recover a fine from Brooks Brothers if Stauffer loses, as res judicata would attach to claims against Brooks Brothers for the particular markings at issue....Thus, even though, as the district court noted, “the issue of the government’s ability to bring an action pursuant to section 292” in general was not presented,[] the United States’ ability to protect its interest in this particular case would be impaired by disposing of this action without the government’s intervention. We there-ore reverse the district court’s decision denying the government’s motion to intervene.

Slip Op. at 15-16 (internal citations omitted).

Note: The Federal Circuit expressly declined to address several issues, including  the constitutionality of Section 292(b) (an issue that was raised by amicus Ciba Vision Corporation), whether section 292 addresses a proprietary or a sovereign injury, or both, and whether Stauffers alleged injuries to himself, or his asserted injuries to competition, give him standing.  In addition, in its remand the panel explicitly instructed the district court to consider Brooks Brothers' motion to dismiss pursuant to Rule 12(b)(6), which argued that the complaint fails to allege an intent to deceive the public with sufficient specificity.



Fundraiser -- Race for the Cure
Posted by: Dennis Crouch of: University of Missouri
from Patent Blog: PatentlyO
9/1/2010

Kv_komen_logo_COUI recently agreed to help raise funds to support efforts to fight breast cancer.  The funds that we are raising go toward educational, treatment, and screening programs.  As part of the effort, I will be running in the 2010 “Race for the Cure” — a 5K race here in Columbia Missouri on September 19. Please use the link listed below to join me as a sponsor of the run.

Thank you!

Dennis Crouch
dcrouch@patentlyo.com


Licensing Executives Society Annual Meeting in Chicago: Sept. 26-29
Posted by: Peter Zura of: Kattern Muchin Rosenman
from Patent Blog: The 271 Patent Blog
9/1/2010

The LES is expecting over one thousand of the world’s leading intellectual property (IP), licensing and business development professionals a the upcoming Licensing Executives Society (USA & Canada), Inc., Annual Meeting at the Chicago Sheraton Hotel & Towers September 26-29. Themed ‘Deals, Deals and more Deals’ the meeting will focus on the critical role IP plays in today’s most successful business strategies and will explore ways to leverage IP to maximize deal-making and profitability.


Attendees will be able to tailor the meeting to suit their needs by attending interactive plenary discussions and selecting from over 50 workshops designed to focus not only on issues that are timely and relevant to individual industry sectors, but that also encourage cross-sector discussions.

Plenary Highlights

The SuperFreakonomics of IP Licensing – Do Patents Slow Innovation? - Steven Levitt, co-author of the New York Times best-seller Freakonomics and its recent follow-up SuperFreakonomics, will present a keynote address on the unintended impact of the patent system on innovation. He will also discuss his groundbreaking research on the effects of incentives on economics and market behavior as they relate to innovation. A book signing will follow Mr. Levitt’s presentation.

Is the U.S. Patent System Under Siege: Congress, the PTO, the FTC and the Supreme Court -The Honorable Judge Paul Michel, retired Chief Judge of the United States Court of Appeals for the Federal Circuit will look at the many challenges facing the U.S. patent system including the reform legislation currently pending in Congress, the USPTO’s efforts to reduce backlogs and improve the quality of issued patents, and increased scrutiny by the Supreme Court and FTC.

IP as a National Responsibility: A Global Outlook for Strategies, Policies and Laws -- Economist and Former Vice Presidential Candidate Pat Choate, will join John Whealan, Associate Dean of Intellectual Property Law at George Washington University Law School and Suzanne Michel, Deputy Director of FTC’s Office of Policy Planning to discuss how the United States, Europe, Asia and developing countries might leverage IP to secure future wealth and what this could mean for commercial collaboration across national boundaries.

IP100 Recap: IP Hot Topics 2010 -- Over the course of 2010, LES has hosted innovative IP100 forums comprised of high-level IP leaders who have analyzed several hot IP topics. This panel will revisit the topics, review previous findings and discuss what we’ve learned from the world-class IP100 panels about best practices in licensing. Key ‘take-aways’ will be included in a white paper available after the meeting for attendees.

Highly Anticipated Announcements

Groundbreaking Royalty Rate Survey Results -- LES will release two highly anticipated survey reports that address elusive gaps in industry-specific data on deal terms:

  • Global BioPharma Royalty Rates and Deal Terms Survey
  • CEEM Royalty Rate and Deal Terms Survey.
The new data will provide valuable benchmarks for all aspects of deal-making across the life sciences, chemicals, energy and related industries.

IP Deals of Distinction Award -- LES will present its annual Deals of Distinction™ Awards to the best IP deals of the year in five industry sectors.

Frank Barnes Mentoring Award -- The LES Foundation will present the Frank Barnes Mentor Award to recognize an LES member who has made significant contributions to the field of licensing through their professional mentorship.


For more information, visit the LES website.

[Blogger Note - I will be attending the meeting and look forward to seeing you there!]


How Do I Value My Startup?
Posted by: Scott Edward Walker of: Walker Corporate Law group
from Patent Blog: Walker
9/1/2010

Introduction

This post was originally part of my weekly “Ask the Attorney” series which I am writing for VentureBeat (one of my favorite websites for entrepreneurs).  Please shoot me any questions you may have in the comments section – or feel free to call me directly at 415-979-9998.  Many thanks, Scott

Read the rest of this entry »


Microsoft (Again) Asks Supreme Court to Lower Clear and Convincing Standard
Posted by: Dennis Crouch of: University of Missouri
from Patent Blog: PatentlyO
8/31/2010

Microsoft Corp. v. I4I Limited Partnership (on petition for writ of certiorari 2010)

In 2009, an Eastern District of Texas jury awarded $200 million + interest to i4i after finding that Microsoft willfully infringed the Canadian company’s patent. Judge Davis subsequently added-on $40 million for willful infringement.  The judge also issued an injunction ordering Microsoft to stop selling Word Products with the capability of using “custom XML.” That injunction was stayed by the Federal Circuit pending appeal.  On appeal, the Federal Circuit affirmed the lower court’s findings of validity, willful infringement, enhanced damages, and permanent injunctive relief. In the meantime, the USPTO has concluded its reexamination of the i4i patent — confirming that the claims at issue are patentable. In addition, Microsoft apparently patched its software to prevent someone from using custom XML in Word.

Microsoft has now moved-on to the Supreme Court — asking the high court to reject the “clear and convincing” evidence standard for proving a patent valid. As Microsoft writes in its petition for writ of certiorari, the question is “Whether the court of appeals erred in holding that Microsoft’s invalidity defense must be proved by clear and convincing evidence” even when the prior-art was not considered by the USPTO. This is essentially the same question that Microsoft raised in its 2008 petition in z4. That petition was withdrawn after the parties settled.

The patent statute (35 U.S.C. § 282) indicates that an issued patent is “presumed valid” and that the “burden of establising invalidity” rests with the party asserting invalidity. The Federal Circuit has held that the presumption of validity is properly realized by a clear and convincing standard.  The Supreme Court has not directly ruled on the issue. However, in KSR v. Teleflex, the Supreme Court did note that the “the rationale underlying the presumption — that the PTO, in its expertise, has approved the claim — seems much diminished” in cases where the patentee “fail[ed] to disclose” the key prior art to the PTO.

By Dennis Crouch

File Attachment: 10-290_Microsoft_i4i_cert_petition.pdf (172 KB)


Count System Initiatives to Continue Through FY2011
Posted by: Anonymous
from Patent Blog: Just An Examiner
8/31/2010

The Office distributed a memo today informing the examining corps that the Joint Count System Task Force had arrived at an agreement to continue the new count system [the provisions of which were discussed in a past post] through the end of FY2011.

There are two tweaks to the system for next year. Examiners' production time adjustment (meant to make up for time lost due to reduced counts for RCEs) will be recalculated based on RCEs received by each individual examiner during the first 24 bi-weeks of FY2010. They are also relaxing the 6-month time window within which examiners must work for applications on their regular new docket.

The details will be in the new memorandum of understanding, yet to be released.

According to the memo, the Task Force agreed that since significant provisions of the Count System Initiative were not implemented until mid-February, it was simply too soon to make more substantive changes.


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