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GEARHART LAW 
IP-What to protect, when and 
where? 
Susanne Somersalo 
September 29, 2014 
41 RIVER ROAD, SUMMIT, NJ 07901...
GEARHART LAW 
Where do you want to be? 
41 RIVER ROAD, SUMMIT, NJ 07901 
WWW.GEARHARTLAW.COM 
(908) 273 0700 
START 
UP 
E...
GEARHART LAW 
What do you need right now: 
-Business idea 
-Space to work 
-People to work 
-Start up money -- sales from ...
GEARHART LAW 
Think the IP environment 
Estonian IP 
European IP 
US IP 
Global IP 
What is there to be protected? 
Formul...
GEARHART LAW 
Copyrights: - Generally cheap to file– make sure you own the copyrights 
Trademarks: - valid as long as mark...
GEARHART LAW 
Do I really need to have a patent? 
41 RIVER ROAD, SUMMIT, NJ 07901 
WWW.GEARHARTLAW.COM 
(908) 273 0700 
NO...
GEARHART LAW 
41 RIVER ROAD, SUMMIT, NJ 07901 
WWW.GEARHARTLAW.COM 
(908) 273 0700 
Where do I need to have a patent? 
You...
GEARHART LAW 
Establishing a business entity in the US and some practical points to consider 
Sales representative: solici...
GEARHART LAW 
41 RIVER ROAD, SUMMIT, NJ 07901 
WWW.GEARHARTLAW.COM 
(908) 273 0700 
Physical presence 
-branch– easier to ...
GEARHART LAW 
Type of entity: 
C- corporation 
S-corporation 
Limited Liability Corporation 
Limited partnership 
All of t...
GEARHART LAW 
Other important issues: 
Visa : -business visitor visa B--- allows participating meetings, conferences, nego...
GEARHART LAW 
41 RIVER ROAD, SUMMIT, NJ 07901 
WWW.GEARHARTLAW.COM 
(908) 273 0700
GEARHART LAW 
Freedom to operate and value of IP portfolio 
41 RIVER ROAD, SUMMIT, NJ 07901 
WWW.GEARHARTLAW.COM 
(908) 27...
GEARHART LAW 
41 RIVER ROAD, SUMMIT, NJ 07901 
WWW.GEARHARTLAW.COM 
(908) 273 0700 
Patent search 
• Is your invention 
pa...
GEARHART LAW 
Timing: 
Patent search before you file a patent 
Freedom to operate study: you get an idea from the patent s...
GEARHART LAW 
41 RIVER ROAD, SUMMIT, NJ 07901 
WWW.GEARHARTLAW.COM 
(908) 273 0700 
Costs: 
FTO may cost $4000-10 000 
But...
GEARHART LAW 
Direct infringement 
35 U.S.C. section 271(a): liability for direct infringement requires 
performance of al...
GEARHART LAW 
Induced infringement 
35 U.S.C. section 271(b): Whoever actively induces 
infringement of a patent shall be ...
GEARHART LAW 
Contributory infringement 
35 USC 271 (c ) “Whoever offers to sell or sells within the United States or 
imp...
GEARHART LAW 
What if you get a cease and desist letter? 
-can you change your product in a way that it is not infringing?...
GEARHART LAW 
41 RIVER ROAD, SUMMIT, NJ 07901 
WWW.GEARHARTLAW.COM 
(908) 273 0700 
Cost of Bata Bing patents 
Years 1-3 Y...
GEARHART LAW 
Portfolio Valuation* - 10 year product cycle 
Product Profit = $10 million over 10 years 
($1.00 per bottle ...
GEARHART LAW 
Where does the value of your patent come from? 
-can you keep competitors away? 
-can you sell with higher p...
GEARHART LAW 
41 RIVER ROAD, SUMMIT, NJ 07901 
WWW.GEARHARTLAW.COM 
(908) 273 0700
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What to consider regarding intellectual property when planning to enter us markets

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IP-What to protect, when and where?
IP environment
Do I really need to have a patent?
Establishing a business entity in the US
Freedom to operate and value of IP portfolio
What if you get a cease and desist letter?
Where does the value of your patent come from?

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  • DOWNLOAD FULL BOOKS, INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y3nhqquc } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
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What to consider regarding intellectual property when planning to enter us markets

  1. 1. GEARHART LAW IP-What to protect, when and where? Susanne Somersalo September 29, 2014 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700
  2. 2. GEARHART LAW Where do you want to be? 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700 START UP Estonia Europe USA Indonesia 1 year 3 years 5 years 7 years
  3. 3. GEARHART LAW What do you need right now: -Business idea -Space to work -People to work -Start up money -- sales from toothpaste, government grant, business angel, gift from a rich aunt -Business idea: BATA BING - vitamin supplement and weight loss formula for senior citizens; packed in a special container with tamper proof cap - distribution online via website; want to get into retail stores, huge potential market in medication management programs in US retirement homes 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700
  4. 4. GEARHART LAW Think the IP environment Estonian IP European IP US IP Global IP What is there to be protected? Formulation---- Patent? Trade secret? Special cap--- Patent? Design patent? Bata Bing– Trademark Website--- Copyright Software for medication management- copyright? Patent? The challenge is to make sure you have the rights you will need in the future! 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700
  5. 5. GEARHART LAW Copyrights: - Generally cheap to file– make sure you own the copyrights Trademarks: - valid as long as mark is used and properly renewed. Filing costs relatively low Design patents - limited protection, relatively fast to obtain and relatively low cost Patents:- long examination times, expensive, 20 years monopoly Trade secrets: no filing costs but managing the secrecy may be tedious 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700
  6. 6. GEARHART LAW Do I really need to have a patent? 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700 NO- -if the product is short lived - if you can keep the idea (e.g. formula) secret - if you can’t get a patent - if the patent is not enforceable YES especially: -if the product is such that others would and could copy if - if your plan is to license or sell your rights down the way
  7. 7. GEARHART LAW 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700 Where do I need to have a patent? Your manufacturing process takes place in Estonia– you should have a patent in Estonia Your plan is to start selling in Belgium--- you should have a patent in Belgium There is a potential likening partner in Italy– you should have a patent in Italy The big market is in the US but you will not enter there but in five years: you should file in USA– cannot wait five years You may have sales in Indonesia in seven years--- the additional cost of filing in Indonesia is low, however you may trust on trademark protection You don’t plan to sell in China but you are afraid competitors will go there—patent would give you basis for negotiation with competitors File a PCT – it gives you 30 months to figure out which countries to choose.
  8. 8. GEARHART LAW Establishing a business entity in the US and some practical points to consider Sales representative: solicit orders form U.S. customers that your company may accept or reject. Is paid on commission + Out of pocket costs to enter the U.S. are low. + Possibility to avoid U.S. taxes. - Usually geographically limited representation. - Rep. may represent many companies. Distributor: buys your products at a discount and resells at their own price. + Out of pocket costs to enter the U.S. are low. Usually exclusivity. + No U.S. taxes if you do not have presence in the U.S. -The business relationship with the client will be built by the distributor, not by you. - Probably less profit to you per sale than if you had a sales rep. Note: computer software is protected by copyright law. Under copyright law only the author of the software or its licensee is entitled to reproduce, modify or distribute the software. Therefore some type of license agreement would be needed. Also, when ever you want the business partner to be able to modify, manufacture, reproduce a patented (or copyrighted) technology, you should have a licensing agreement. 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700
  9. 9. GEARHART LAW 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700 Physical presence -branch– easier to set up but puts the assets of the foreign company at risk -subsidiary --- separate legal entity, liability limited to your investment US Subsidiary -location: where are the clients? West Coast, East Coast, Alaska? time difference state corporate taxes are different: ND, WA, WY 0%; PA 9.99%; NY 7.1%, CA 8.84% (maximum federal corporate tax is 35%)
  10. 10. GEARHART LAW Type of entity: C- corporation S-corporation Limited Liability Corporation Limited partnership All of these give protection against personal liability. LLC is easy to set up. Corporation has stricter rules 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700
  11. 11. GEARHART LAW Other important issues: Visa : -business visitor visa B--- allows participating meetings, conferences, negotiations - H1B visa --- specialty occupation -L1 visa – company transferee - E2 visa- substantial investment in the US business (usually 1 mil. Dollars) 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700 Insurances: liability insurance employee insurance has to comply with state and federal laws Product markings/ warranties etc.
  12. 12. GEARHART LAW 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700
  13. 13. GEARHART LAW Freedom to operate and value of IP portfolio 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700
  14. 14. GEARHART LAW 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700 Patent search • Is your invention patentable? • Novelty, obviousness • Any disclosure • Any where in the world Freedom to operate • Can you make, use, sell your invention? • Infringement scenarios • Valid patents, claims • The geographic area you are entering into
  15. 15. GEARHART LAW Timing: Patent search before you file a patent Freedom to operate study: you get an idea from the patent search detailed study before seeking funding, before making any major steps to enter new market 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700
  16. 16. GEARHART LAW 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700 Costs: FTO may cost $4000-10 000 But: you avoid triple damages if you have well done FTO has to address the three types of infringement
  17. 17. GEARHART LAW Direct infringement 35 U.S.C. section 271(a): liability for direct infringement requires performance of all steps of a method patent to be attributable to a single party 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700
  18. 18. GEARHART LAW Induced infringement 35 U.S.C. section 271(b): Whoever actively induces infringement of a patent shall be liable as an infringer The Supreme Court held 2014 in Limelight v. Akamai that Limelight was not liable for inducing infringement under section 271(b) because no one had directly infringed under section 271(a). Because all the steps of the patent claim were not performed by one party, there is no direct nor induced infringement. (Limelight did not tag the data itself) 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700
  19. 19. GEARHART LAW Contributory infringement 35 USC 271 (c ) “Whoever offers to sell or sells within the United States or imports into the United States a component of a patented machine, manufacture, combination or composition, or a material or an apparatus for use in practicing a patented process, constituting a material part of the invention, knowing the same to be especially made or especially adapted for use in an infringement of such patent, and not a staple article or commodity of commerce suitable for substantial noninfringing use, shall be liable as a contributory infringer." 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700
  20. 20. GEARHART LAW What if you get a cease and desist letter? -can you change your product in a way that it is not infringing? -file re examination? -can you invalidate other party’s patent? 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700
  21. 21. GEARHART LAW 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700 Cost of Bata Bing patents Years 1-3 Years 3 -10 FTO Prov. appl PCT Nat. filings total Pros. Annuities etc Total Formulation 5000 5000 4500 14000* 28500 8000 10 000 46 500 Container 5000 5000 4500 4000** 18 500 4000 1000 23500 * USA, EPO, China, Indonesia ** USA, Estonia Total: 70 000
  22. 22. GEARHART LAW Portfolio Valuation* - 10 year product cycle Product Profit = $10 million over 10 years ($1.00 per bottle profit x 1,000,000 bottles/yr = $1 M/yr x 10 years = $10 million) Patent Value 25% rule – 25% of estimated net profits = $2,5 million Total Patent Cost = $70 000 Trademark cost = $5000 (protects 100K in branding) Total IP Cost = $70K + 5K = $ 75,000 Total IP Value = 2.5 million Potential return on IP Investment: Value/ Cost ~ 33X *The Tools presented herein for IP Valuation are tools for generating estimates only, and the actual value could vary widely based on the actual facts of your situation. The assumptions and speculative nature of these estimates should be brought to the attention of any investor they are discussed with. 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700
  23. 23. GEARHART LAW Where does the value of your patent come from? -can you keep competitors away? -can you sell with higher price? -do you have wide protection? -Have you covered variatons/alternatives? -Can you license out what you don’t use your self? -Clever license agreements (PCR patent – e.g. Stanford Univ. made over $250 mil. with cheap nonexclusive licenses) 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700
  24. 24. GEARHART LAW 41 RIVER ROAD, SUMMIT, NJ 07901 WWW.GEARHARTLAW.COM (908) 273 0700

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