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What about IP?
Considerations for Startups

       May 30, 2012
stratuslaw.com




Patrick Hansen, Partner      Leil Abdi, Partner   Viraj Tipnis, Patent Agent

Electrical/Software Engineers
                        Big Patent Firm Experience
           Small Firm Service and Flexibility
Intellectual Property
o   Trademarks
o   Trade Dress
o   Copyrights
o   Proprietary Data
o   Trade Secrets
o   Patents                             Photo by Arva Adams




    CASTING A SHIELD FOR YOUR INNOVATIONSTM
Patents
o In return for disclosure to public, patent gives
  statutory right to exclude others from
  making, using or selling invention for a limited
  time.

o Patent application is a written description with
  drawings, including claims defining the legal
  scope of the invention.

o If application is granted by USPTO, patent can
  be licensed or sold. It can also be challenged.
You may have heard...
"Software patents are useless. There are too many patents that
   cover trivial things."

"Software patents are dangerous."



"I am a coder, a hacker. I do not believe in patents."

                   "The patent system is broken."
Playing Catch Up
Google has been sued by many, including Oracle
over Android for billions. As a young company, it had
far fewer patents than other tech giants.

Google was bidding $4 billion for 6,000 of Nortel's
wireless patents.

Page said Google is buying Motorola Mobility for
$12.5 billion, in part, for its patent portfolio.
patents matter to facebook

Facebook was sued by Yahoo. Yahoo had 1,000
patents. Facebook had 21.

Facebook bought 750 patents from IBM. Facebook is
paying $550 million for 650 of the 925 patents Microsoft
bought from AOL for $1 billion.

Six of the eight patents used in Facebook's countersuit
of Yahoo were purchased.
Do Patents Apply To My Business?

o Consult with a patent attorney who can provide
  expert analysis. There may or may not be
  patentable concepts.

o Must be a category of invention that can be
  patented, and it must be novel over existing
  public information.

o General considerations of patentability.
You may have heard...


"Yeah, get some patents after about a year in.”
Big Mistake To Wait Too Long
o Lose priority date to competitors. First-to-invent
  system. First-to-file system on March 16, 2013.

o You can lose the right to file a patent if you wait
  more than a year after public disclosure, on
  sale, use or otherwise made available to the
  public.

o Need to protect yourselves as you talk with
  investors and build a team.
You may have heard...
"I'm a VC. Tell me the details of your idea.”

                          "VCs don't sign NDAs.”
Common Mistakes to Avoid
o
o Fully disclosing inventive ideas to the public or
  untrusted VCs before filing a patent application.

o Not having a solid NDA signed by third party
  developers, employees, investors or
  collaborators.
Common Mistakes to Avoid
o
o Relying on a provisional application you filed
  yourself.
Common Mistakes to Avoid
o Not maintaining a clean chain of title.

                  Who owns the IP?

    •   Inventorship is a legal determination of who
        conceived the claimed invention.
    •   Inventors assign the patent application to your legal
        entity.
    •   Get agreements to assign from employees and third
        party developers.
You may have heard ...


"Patents take years to obtain."
Typical Patent Process
o 2-3 years before receive first Office Action from the
   USPTO after filing a non-provisional application.

o Have 3-6 months to respond - maybe amend claims.
   May interview patent examiner. Will receive a Final
   Office Action or Notice of Allowance several months
   later.

o If multiple rounds, could be years before application
   issued or abandoned. Patent examiner rejections can
   be appealed to the Patent Trial and Appeal Board and
   to the Federal Circuit Court of Appeals.
Patent Reform Track 1 Timeline

o
o Pay a fee to the USPTO to prioritize your patent
  application.

o Patent application can reach a final disposition
  or issue as a patent within one year.
Patent Strategies
o Build a patent portfolio

o File some Track 1 applications

o Track competitors, consider strategic
  continuation applications

o File internationally
Questions?



patrick@stratuslaw.com

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Stratus IP Law Group at District I/O on May 30

  • 1. What about IP? Considerations for Startups May 30, 2012
  • 2. stratuslaw.com Patrick Hansen, Partner Leil Abdi, Partner Viraj Tipnis, Patent Agent Electrical/Software Engineers Big Patent Firm Experience Small Firm Service and Flexibility
  • 3. Intellectual Property o Trademarks o Trade Dress o Copyrights o Proprietary Data o Trade Secrets o Patents Photo by Arva Adams CASTING A SHIELD FOR YOUR INNOVATIONSTM
  • 4. Patents o In return for disclosure to public, patent gives statutory right to exclude others from making, using or selling invention for a limited time. o Patent application is a written description with drawings, including claims defining the legal scope of the invention. o If application is granted by USPTO, patent can be licensed or sold. It can also be challenged.
  • 5. You may have heard... "Software patents are useless. There are too many patents that cover trivial things." "Software patents are dangerous." "I am a coder, a hacker. I do not believe in patents." "The patent system is broken."
  • 6. Playing Catch Up Google has been sued by many, including Oracle over Android for billions. As a young company, it had far fewer patents than other tech giants. Google was bidding $4 billion for 6,000 of Nortel's wireless patents. Page said Google is buying Motorola Mobility for $12.5 billion, in part, for its patent portfolio.
  • 7. patents matter to facebook Facebook was sued by Yahoo. Yahoo had 1,000 patents. Facebook had 21. Facebook bought 750 patents from IBM. Facebook is paying $550 million for 650 of the 925 patents Microsoft bought from AOL for $1 billion. Six of the eight patents used in Facebook's countersuit of Yahoo were purchased.
  • 8. Do Patents Apply To My Business? o Consult with a patent attorney who can provide expert analysis. There may or may not be patentable concepts. o Must be a category of invention that can be patented, and it must be novel over existing public information. o General considerations of patentability.
  • 9. You may have heard... "Yeah, get some patents after about a year in.”
  • 10. Big Mistake To Wait Too Long o Lose priority date to competitors. First-to-invent system. First-to-file system on March 16, 2013. o You can lose the right to file a patent if you wait more than a year after public disclosure, on sale, use or otherwise made available to the public. o Need to protect yourselves as you talk with investors and build a team.
  • 11. You may have heard... "I'm a VC. Tell me the details of your idea.” "VCs don't sign NDAs.”
  • 12. Common Mistakes to Avoid o o Fully disclosing inventive ideas to the public or untrusted VCs before filing a patent application. o Not having a solid NDA signed by third party developers, employees, investors or collaborators.
  • 13. Common Mistakes to Avoid o o Relying on a provisional application you filed yourself.
  • 14. Common Mistakes to Avoid o Not maintaining a clean chain of title. Who owns the IP? • Inventorship is a legal determination of who conceived the claimed invention. • Inventors assign the patent application to your legal entity. • Get agreements to assign from employees and third party developers.
  • 15. You may have heard ... "Patents take years to obtain."
  • 16. Typical Patent Process o 2-3 years before receive first Office Action from the USPTO after filing a non-provisional application. o Have 3-6 months to respond - maybe amend claims. May interview patent examiner. Will receive a Final Office Action or Notice of Allowance several months later. o If multiple rounds, could be years before application issued or abandoned. Patent examiner rejections can be appealed to the Patent Trial and Appeal Board and to the Federal Circuit Court of Appeals.
  • 17. Patent Reform Track 1 Timeline o o Pay a fee to the USPTO to prioritize your patent application. o Patent application can reach a final disposition or issue as a patent within one year.
  • 18. Patent Strategies o Build a patent portfolio o File some Track 1 applications o Track competitors, consider strategic continuation applications o File internationally