Russell Jeide & Scott CromarThursday,February 28, 2013TVE2 IP SeriesClass 1: Intellectual Property andYour Startup
2© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.TVE2 Intellectual Property (IP) Series• Class 1: "What inte...
3© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Russell Jeide• Patent Attorney for 12 years• Partner at Kno...
4© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Scott Cromar• Patent Agent for 3 years; PatentAttorney for ...
5© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Disclaimer• This presentation is for information purposes o...
6© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Today:– What Is IP?– Quick Overview of the Primary Types Of...
©2012 Knobbe Martens, Olson & Bear, LLP all rights reserved.©2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved. ...
8© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Intellectual Property (IP)• Refers to a category of exclusi...
9© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Nature of the Exclusive Right• Typically the right to exclu...
©2012 Knobbe Martens, Olson & Bear, LLP all rights reserved.©2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved. ...
11© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Copyrights• Tools for protecting content• Provided to auth...
12© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Copyrights• No registration necessary, it’s automatic!• Ma...
13© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Trademarks• Tools that can greatly enhance marketing strat...
14© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Trademarks• Protects consumer from counterfeit goods• Last...
15© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Trade Secrets• Tools for keeping proprietary information c...
16© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Patents• Tools that help you obtain exclusivity in your ma...
17© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Utility Patents• Protection for functionality, how somethi...
18© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Design Patents• Protect ornamental appearance of an indust...
19© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Side Note: Provisional Patent Applications• An inexpensive...
©2012 Knobbe Martens, Olson & Bear, LLP all rights reserved.©2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved. ...
21© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Why File for a Patent?• Attract Capital• Licensing Revenue...
©2012 Knobbe Martens, Olson & Bear, LLP all rights reserved.©2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved. ...
23© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Considerations• Your budget– Early stage = provisional app...
©2012 Knobbe Martens, Olson & Bear, LLP all rights reserved.©2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved. ...
25© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Protect Your Company’s Value• Establish a legal entity– Ir...
26© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Protect Your Technology• Myth: I paid for it, therefore I ...
27© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Beware – Bar Dates – First-to-File• AIA changes the game a...
Russell JeideScott Cromarrussell.jeide@knobbe.comscott.cromar@knobbe.com
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What Intellectual Property Is, and Why It May Be Important To Your Startup

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Knobbe Martens’ patent attorneys Russell Jeide and Scott Cromar hosted a seminar series on intellectual property basics for Temecula’s business community. This presentation is from the first class giving a basic overview of patents, copyrights and trademarks.

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What Intellectual Property Is, and Why It May Be Important To Your Startup

  1. 1. Russell Jeide & Scott CromarThursday,February 28, 2013TVE2 IP SeriesClass 1: Intellectual Property andYour Startup
  2. 2. 2© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.TVE2 Intellectual Property (IP) Series• Class 1: "What intellectual property is, and why it maybe important to your startup"• Class 2: "How to enter the patent world strategicallyand economically"• Class 3: "How to file for a patent"• Class 4: "The meaning of patent infringement andpatent litigation"• Class 5: "How to use copyrights, trademarks, andtrade secrets to your advantage"• Class 6: TBA (probably continuation of Class 5)
  3. 3. 3© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Russell Jeide• Patent Attorney for 12 years• Partner at Knobbe Martens• B.S. Electronics EngineeringTechnology• Specializes in patent prosecution,legal opinion work, and licensing• Experience in telecommunicationsystems, computer architecture,computer software, Internet businessmethods, and mechanical devices
  4. 4. 4© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Scott Cromar• Patent Agent for 3 years; PatentAttorney for 1• Associate at Knobbe Martens• B.S. Electrical Engineering;M.S. Electrical and ComputerEngineering• Specializes in IP counseling andpatent preparation and prosecution• Experience with software,computers, electronics, andsemiconductors
  5. 5. 5© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Disclaimer• This presentation is for information purposes only anddoes not constitute legal advice.• This presentation does not establish any form ofattorney-client relationship.
  6. 6. 6© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Today:– What Is IP?– Quick Overview of the Primary Types Of IP• Copyrights, Trademarks, Trade Secrets• Utility & Design Patents– Why File for a Patent?– Evaluating the Importance of IP to Your Startup– IP Hygiene
  7. 7. ©2012 Knobbe Martens, Olson & Bear, LLP all rights reserved.©2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved. 7What Is Intellectual Property (IP)?
  8. 8. 8© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Intellectual Property (IP)• Refers to a category of exclusive rights created bystatute, including:– Copyrights– Trademarks– Trade Secrets– Utility Patents– Design Patents• Others: Trade Dress, Mask Works, …
  9. 9. 9© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Nature of the Exclusive Right• Typically the right to exclude or prevent someonefrom doing something• Usually req. gov’t registration; Enforce it in court• As business tools:– Copyrights: protect content; expression– Trademarks: enhance marketing strategies– Trade Secrets: keep proprietary info confidential– Patents: obtain exclusivity in your market niche• Utility: functionality; Design: appearance
  10. 10. ©2012 Knobbe Martens, Olson & Bear, LLP all rights reserved.©2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved. 10Quick Overview of the Primary Types of IP
  11. 11. 11© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Copyrights• Tools for protecting content• Provided to authors of “original works of authorship”• Exclusive right to a work of expression, such as awritten story, a photograph, or a computer program• Not for things that are functional (that’s utility patents)• Protection lasts for a very long time– 70 years after death; 95+ years for corporate author
  12. 12. 12© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Copyrights• No registration necessary, it’s automatic!• Mark to provide notice:© 2012 Company NameAll Rights Reserved• Register with copyright office to sue
  13. 13. 13© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Trademarks• Tools that can greatly enhance marketing strategies• Is any symbol capable of identifying anddistinguishing its owner’s products from those ofothers
  14. 14. 14© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Trademarks• Protects consumer from counterfeit goods• Lasts as long as you continue using it• Standard of infringement: “consumer confusion”• How to get a trademark?– Start marking sold goodsTM – common law– For ® - register with USPTOSearch before you invest!
  15. 15. 15© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Trade Secrets• Tools for keeping proprietary information confidential• Just keeping it secret– NDAs, confidentiality agreements• Make sure you can keep it secret!– Once the cat is out of the bag…
  16. 16. 16© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Patents• Tools that help you obtain exclusivity in your marketniche• Right to exclude others from practicing your invention– Not a right to use, make, or sell– You may still infringe others’ patents• Two types:– Utility Patent: protect functionality (how it works)– Design Patent: protect ornamental appearance
  17. 17. 17© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Utility Patents• Protection for functionality, how something works• Invention must be useful and novel and nonobvious(e.g., not an obvious variation on something)• Examined by USPTO• Last for 20 years from data of priority (usually the filingdate)• Takes 3-5 years to issue typically, but…– Faster tracks available for a fee• Example
  18. 18. 18© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Design Patents• Protect ornamental appearance of an industrial article• Must be novel and nonobvious (i.e., not an obviousvariation on something)• Examined by USPTO, but issue quickly• Lasts 14 years (soon to be 15 years)• Differ from copyrights– Different standards for grant and infringement(independent creation not an issue)– Presumption of validity• Example
  19. 19. 19© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Side Note: Provisional Patent Applications• An inexpensive, informal filing at USPTO• Not examined• Kept secret• Turn into regular application within a year• Gets you a priority date
  20. 20. ©2012 Knobbe Martens, Olson & Bear, LLP all rights reserved.©2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved. 20Why File for a Patent?
  21. 21. 21© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Why File for a Patent?• Attract Capital• Licensing Revenue• Enhance Company Value• Reduce Likelihood/Impact of Employee Theft• Stop Competition• Protect Your Niche By Excluding Competition– Stop others from making, using, selling, importing• Support Sales– After filing = “Patent Pending”
  22. 22. ©2012 Knobbe Martens, Olson & Bear, LLP all rights reserved.©2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved. 22Evaluating the Importance of IPto Your Startup (or Business)
  23. 23. 23© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Considerations• Your budget– Early stage = provisional application (usually)• Your technology area– Ease of copying– Types of protection available• Speed of innovation• Who are your customers?– TM may be more valuable if selling directly to consumers• Where are your customers?
  24. 24. ©2012 Knobbe Martens, Olson & Bear, LLP all rights reserved.©2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved. 24IP Hygiene
  25. 25. 25© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Protect Your Company’s Value• Establish a legal entity– Iron out partnership/corporate agreement• Searching (much more on this in coming months)– Name: not trademarked– Product: Freedom to Operate
  26. 26. 26© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Protect Your Technology• Myth: I paid for it, therefore I own it.• Employee Agreements & IP Assignments/Licenses• NDAs & Confidentiality Agreements• Independent Consultant Agreements• Patents vs. Trade Secrets
  27. 27. 27© 2013 Knobbe, Martens, Olson & Bear, LLP all rights reserved.Beware – Bar Dates – First-to-File• AIA changes the game a little on March 16, 2013– First to file generally entitled to patent– Uncertain 1 year grace period for filing in U.S.• If you disclose your invention before filing…– Lose all foreign rights– Maybe lose U.S. rights• Best course of action = file before you disclose
  28. 28. Russell JeideScott Cromarrussell.jeide@knobbe.comscott.cromar@knobbe.com
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