The New Patent Law: What Should Management Do Now?

568 views
517 views

Published on

"The New Patent Law: What Should Management Do Now?" presented by Ted Sabety, Manny Schecter and Peter Schechter on February 1, 2012 at the CUNY Graduate Center. Event organized by the New York Technology Council.

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
568
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
12
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

The New Patent Law: What Should Management Do Now?

  1. 1. “ The New Patent Law: What Should Management Do Now ? " Ted Sabety (Moderator) February 1, 2012 NOT LEGAL ADVICE (C) 2012 Ted Sabety All Rights Reserved
  2. 2. <ul><li>Fundamentally Changed the U.S. Patent Statute. </li></ul><ul><li>Enacted September 16, 2011 </li></ul><ul><li>Effective Dates are Staged </li></ul><ul><li>These changes have business strategic implications for technology companies. </li></ul>“ American Invents Act” February 1, 2012 NOT LEGAL ADVICE (C) 2012 Ted Sabety All Rights Reserved
  3. 3. Focus on Four Aspects <ul><li>First to File Wins the Race </li></ul><ul><li>Trade Secret Dynamic Changes </li></ul><ul><li>Some Inventions Ineligible </li></ul><ul><li>More Third Party Involvement in Prosecution Process </li></ul>February 1, 2012 NOT LEGAL ADVICE (C) 2012 Ted Sabety All Rights Reserved
  4. 4. First Inventor to File <ul><li>The First Inventor to File a Patent Application on an Invention gets the Patent over the earlier inventor who files later. </li></ul><ul><li>Getting a Filing Date becomes even more critical. </li></ul><ul><li>Effective March 16, 2013. </li></ul>February 1, 2012 NOT LEGAL ADVICE (C) 2012 Ted Sabety All Rights Reserved
  5. 5. First to File Moves Up Prior Art <ul><li>Any public use, sale or disclosure of the Invention before the filing date is prior art. </li></ul><ul><li>Or described in a competing patent application filed before the filing date . </li></ul><ul><li>Expands prior art to anything around the world, not just the US. </li></ul>February 1, 2012 NOT LEGAL ADVICE (C) 2012 Ted Sabety All Rights Reserved
  6. 6. What’s Left of the One Year Grace Period? <ul><li>Exception: Inventor has a one year grace period for “disclosures” either “made by the inventor” or “another who obtained the subject matter ... from the inventor....” </li></ul><ul><li>OPEN LEGAL QUESTION: does “disclosures” include “public use” or “sale” ? </li></ul><ul><ul><li>“ Textualist” Supreme Court might say “no.” </li></ul></ul><ul><ul><li>House Report doesn’t say. (See pg. 40-43). </li></ul></ul><ul><ul><li>Orrin Hatch cryptically said yes. </li></ul></ul>February 1, 2012 NOT LEGAL ADVICE (C) 2012 Ted Sabety All Rights Reserved
  7. 7. Trade Secrets in Balance with Patents <ul><li>Always a strategic tension between maintaining a trade secret and filing for a patent: </li></ul><ul><ul><li>Disclosure to the public with the risk of either no patent issuing or patent invalidity vs: </li></ul></ul><ul><ul><li>Risk of reverse engineering or independent invention. </li></ul></ul>February 1, 2012 NOT LEGAL ADVICE (C) 2012 Ted Sabety All Rights Reserved
  8. 8. Prior User Defense <ul><li>“ Prior User” refers to a trade secret user who decided not to file a patent. </li></ul><ul><li>The “Prior User” cannot be liable if a first filer obtains a patent over the same invention. </li></ul><ul><li>Caveats: </li></ul><ul><ul><li>Use must be over 1 year prior to the later filing date. </li></ul></ul><ul><ul><li>On going, bona fide use in the United States. </li></ul></ul><ul><ul><li>Personal to the entity practicing. </li></ul></ul><ul><ul><li>Doesn’t apply to University or Federally funded inventions. </li></ul></ul>February 1, 2012 NOT LEGAL ADVICE (C) 2012 Ted Sabety All Rights Reserved
  9. 9. Lack of “Best Mode” will not Invalidate <ul><li>The “best mode” is typically the valuable trade secret: the “secret sauce.” </li></ul><ul><li>The patent disclosure must include a description of the “best mode” of practicing the invention. </li></ul><ul><li>Now, there is no basis to bring an invalidity claim for failure to disclose the “best mode.” </li></ul>February 1, 2012 NOT LEGAL ADVICE (C) 2012 Ted Sabety All Rights Reserved
  10. 10. Some Inventions Ineligible: <ul><li>Tax preparation or tax strategy patents </li></ul><ul><li>Patents encompassing a human organism </li></ul><ul><li>Limitations on “business method” patents. </li></ul><ul><ul><li>Precludes financial transaction inventions </li></ul></ul><ul><ul><li>It may also preclude other computer related inventions. </li></ul></ul>February 1, 2012 NOT LEGAL ADVICE (C) 2012 Ted Sabety All Rights Reserved
  11. 11. Third Party Involvement <ul><li>Third party submission of prior art during prosecution is now permitted and the art will be considered. </li></ul><ul><li>Post Grant Review proceedings: </li></ul><ul><ul><li>Post Grant Review (estoppel applies) </li></ul></ul><ul><ul><li>Inter Partes Review (estoppel applies) </li></ul></ul><ul><ul><li>Ex Parte Reexam </li></ul></ul><ul><li>Supplemental Examination </li></ul><ul><ul><li>Permits attorney to repair prosecution problems. </li></ul></ul>February 1, 2012 NOT LEGAL ADVICE (C) 2012 Ted Sabety All Rights Reserved
  12. 12. Strategic Concerns <ul><li>How will IP management practices change? </li></ul><ul><li>How will product announcement, beta-testing or product roll-out timing change ? </li></ul><ul><li>Are there things small companies should be doing that are different from large companies ? </li></ul><ul><li>How much more should companies expand their involvement in their competitor’s patent prosecution processes? </li></ul><ul><li>Can we expect new kinds of contractual terms in licenses? </li></ul><ul><li>How will this affect risk allocation in acquisitions? </li></ul><ul><li>What new things should small companies be doing to maintain their IP attractiveness to larger companies? </li></ul>February 1, 2012 NOT LEGAL ADVICE (C) 2012 Ted Sabety All Rights Reserved
  13. 13. Our Panel <ul><li>Manny W. Schecter </li></ul><ul><li>Chief Patent Counsel </li></ul><ul><li>IBM Corporation </li></ul><ul><li>Peter C. Schechter </li></ul><ul><li>Partner </li></ul><ul><li>Edwards Wildman Palmer LLP </li></ul><ul><li>Ted Sabety (moderator) </li></ul><ul><li>Principal </li></ul><ul><li>Sabety +associates, PLLC </li></ul>February 1, 2012 NOT LEGAL ADVICE (C) 2012 Ted Sabety All Rights Reserved
  14. 14. February 1, 2012 NOT LEGAL ADVICE (C) 2012 Ted Sabety All Rights Reserved Get Competitive Advantage from our Strategic Viewpoint

×