It has been challenging for software developers to figure out the best path to ensuring their investment in software development is protected. Recent setbacks for software patentability have caused developers to rethink their approach. This presentation outlines strategies for successfully patenting software along with alternative IP strategies software companies can follow to protect their software.

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Compiling Solutions To
PROTECT IP
IN SOFTWARE

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The New Reality For
SOFTWARE
PATENTABILITY

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The Supreme Court
Changed Everything
Alice Corp. v. CLS Bank, 134 S.Ct. 2347 (2014)

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1 Is the claim directed to
an abstract idea?

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2
Do the claim elements
add significantly more
than the abstract idea?

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CONFUSED?
(Most are)

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Here’s What We Know

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1It’s brutal out there for
software patent owners
Post Alice Federal Circuit
decisions related to software
patentability:
(It’s worse at the district court)

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2
Fundamental economic
and financial processes
are abstract
Alice Corp. v. CLS Bank, 134 S.Ct. 2347 (2014)

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3Data structures are
probably abstract
Content Extraction v. Wells Fargo, 776 F.3d 1343 (Fed. Cir. 2014)

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4
Traditional ways of
doing business are
abstract
Ultramercial v. Hulu, 772 F.3d 709 (Fed. Cir. 2014)

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5
If it can be done with a
pencil and paper, it’s
abstract
Synopsys v. Mentor Graphics, 2015 U.S. Dist. LEXIS 6333 (N.D.
Cal. Jan 20, 2015)

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6
Computer automation
will not overcome an
abstract idea
Synopsys v. Mentor Graphics, 2015 U.S. Dist. LEXIS 6333 (N.D.
Cal. Jan 20, 2015)

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7
Using typical building
blocks will not
overcome abstract idea
Open Text v. Box, 2015 U.S. Dist. LEXIS 6309 (N.D. Cal.
Jan 20, 2015)

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It Can Feel
HOPELESS
For Software Developers

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What Software Developers
Can Do To Protect IP

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1
Focus on claims that
solve technology
problems
DDR Holdings v. Hotels.com, 773 F.3d 1245 (Fed. Cir. 2014)

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2
Highlight counter-
intuitive uses of known
technologies
DDR Holdings v. Hotels.com, 773 F.3d 1245 (Fed. Cir. 2014)

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3
Incorporate hardware
elements into your
software claims
Bascom Research v. LinkedIn, 2015 U.S. Dist. LEXIS 4606 (N.D.
Cal. Jan. 2, 2015)

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4
Be detailed in your
specification and
claims
HP v. ServiceNow, 2015 U.S. Dist. LEXIS 29384 (N.D. Cal. Mar.
10, 2015)

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5
Keep focus on
specialized algorithms
and data structures
HP v. ServiceNow, 2015 U.S. Dist. LEXIS 29384 (N.D. Cal. Mar.
10, 2015)

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6 Do not forget about
copyright

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Consider choosing to
protect software as a
trade secret

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Protecting Software As A
TRADE SECRET

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What Exactly Is A Trade Secret?

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1 The information needs
to be secret (shocker!)

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2
It derives “independent
economic value” from
being secret

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3 There are reasonable
efforts to keep it secret
Unif. Trade Secrets Act § 1.4

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4
Provides a right to limit
the dissemination of the
information
Altavion, Inc. v. Konica Minolta Sys. Lab. Inc., 226 Cal.App.4th 26
(Cal. App., 2014)

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Keys To Protecting
Software Trade Secrets

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1
Make it clear in the
code that it is
confidential
Huawei Techs. Co., Ltd. v. Motorola, Inc., 2011 U.S. Dist. LEXIS
17165 (N.D. Ill. Feb. 22, 2011)

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2Use confidentiality
agreements
Lincoln Park Sav. Bank v. Binetti, 2011 U.S. Dist. LEXIS 7320
(N.D. Ill. Jan. 26, 2011)

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3Control who can view
the source code
Lincoln Park Sav. Bank v. Binetti, 2011 U.S. Dist. LEXIS 7320
(N.D. Ill. Jan. 26, 2011)

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4
Silo your confidential
and non-confidential
source code

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5Train your employees

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6Create a rapid
response team
Lockheed Martin Corp. v. L-3 Commc’ns Corp., 2008 U.S. Dist.
LEXIS 109615 (N.D. Ga. Sept. 30, 2008)

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Seth A. Northrop
Silicon Valley
SNorthrop@robinskaplan.com
650.784.4012