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Bill Hulsey Patent Lawyer - Intellectual Property - Reasons for Protection

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Bill Hulsey Patent Lawyer outlines reasons for and benefits from identifying and protecting intellectual property with patents, trade secrets, trade marks, and company policies.

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Bill Hulsey Patent Lawyer - Intellectual Property - Reasons for Protection

  1. 1. IP RELEVANCE TO STARTUP SUCCESS: YOU CAN'T AFFORD TO IGNORE YOUR COMPANY'S INTELLECTUAL PROPERTY! HULSEY P.C. William N. Hulsey III, Esq. Principal, HULSEY PC Fellow, IC2 Institute, UT Austin
  2. 2. The Audience To whom does this presentation pertain?
  3. 3. The Question Is the global IP system that has held reasonably stable for 50 years relevant to your new growing business?
  4. 4. Why IP Matters • Intellectual assets now account for at least half of GDP in many advanced economies. • Innovation is driven primarily not by happenstance but rather by markets and the expectation of profit from securing the rights to new technologies.
  5. 5. Why IP Matters • IP rights also encourage the more rapid and efficient transfer of knowledge across firms and the allocation of resources throughout the economy. • Despite their grant of temporary exclusivity, IP rights are actually the most effective tool for knowledge-sharing and technology transfer ever devised.
  6. 6. U.S. Patent System Problems • Multi-Billion-Dollar Patent Wars • Doubts about Patent Quality • Decisions diminishing the availability of patenting for new technologies and processes, and • Role of “Patent Trolls”
  7. 7. U.S. Patent System Problems • Multi-Billion-Dollar Patent Wars • Doubts about Patent Quality • Decisions diminishing the availability of patenting for new technologies and processes, and • Role of “Patent Trolls”
  8. 8. The Costs of Litigating a Patent Lawsuit
  9. 9. U.S. Patent System Problems • Multi-Billion-Dollar Patent Wars • Doubts about Patent Quality • Decisions diminishing the availability of patenting for new technologies and processes, and • Role of “Patent Trolls”
  10. 10. Doubts about Patent Quality
  11. 11. Quality Problems at The USPTO >2015 OIG Patent Office Report< Four areas of concern: • The USPTO’s performance appraisal plan and related policies are ineffective at measuring whether examiners are issuing high-quality patents. • The USPTO’s official quality metrics may underrepresent the true error rate. • The USPTO is not collecting data that could improve patent quality. • The USPTO’s response to patent mortgaging may not discourage abuse.
  12. 12. U.S. Patent System Problems • Multi-Billion-Dollar Patent Wars • Doubts about Patent Quality • Decisions diminishing the availability of patenting for new technologies and processes, and • Role of “Patent Trolls”
  13. 13. Alice Corporation Pty. Ltd. v. CLS Bank International, el al. ("Alice Corp. ")
  14. 14. • The Federal Circuit issued an extraordinarily brief per curiam decision, which stated: Upon consideration en banc, a majority of the court affirms the district court’s holding that the asserted method and computer-readable media claims are not directed to eligible subject matter under 35 U.S.C. § 101. An equally divided court affirms the district court’s holding that the asserted system claims are not directed to eligible subject matter under that statute. • Thus, all of the asserted claims were deemed to be patent ineligible. Alice Corporation Pty. Ltd. v.CLS Bank International, el al. ("Alice Corp. ")
  15. 15. • June 19, 2014: US Supreme Court unanimous decision held that because the claims are drawn to a patent-ineligible abstract idea, they are not eligible for a patent under Section 101. • An intellectually bankrupt decision that never once used the word “software.” • Failure to mention software a single time is breathtaking, will render many hundreds of thousands of software patents completely useless. • The holding is about software because each of the ways software has been traditionally claimed were ruled to result in patent ineligible claims. Alice Corporation Pty. Ltd. v.CLS Bank International, el al. ("Alice Corp. ")
  16. 16. U.S. Patent System Problems • Multi-Billion-Dollar Patent Wars • Doubts about Patent Quality • Decisions diminishing the availability of patenting for new technologies and processes, and • Role of “Patent Trolls”
  17. 17. Role of “Patent Trolls”
  18. 18. Deep Challenges to IP System • The very premises of our intellectual property laws — the economic value of the intellectual property system itself — are now in deep dispute, not only in the U.S., but also worldwide. • Global anti-IP sentiment seems to be at its highest level since the late 1860s, when opponents of intellectual property rights succeeded.
  19. 19. What Are The Challenges • IP is “Intangible” • Digitalization seems to allow everyone to effortlessly make and use goods and information. • Making nearly, if not absolutely, perfect copies, at near zero cost, has become a reality. • A generation has been raised to see intellectual property as only an impediment to their ability to get and use these easily created copies.
  20. 20. Today's Patent Challenges • Outsourcing and the growing separation of R&D from manufacturing pose challenges. • Loss of public confidence in the patent system. • A new “best practice” in legal circles also contributing to a growing disrespect for IP rights. • Public confidence eroded because licensing can be so constricted by high transaction costs and legal risks may exclude small and mid-sized businesses.
  21. 21. Today's Patent Challenges • Small and mid-sized businesses in the U.S. see patents as ticking time bombs of perceived infringement. • These companies feel unable to access the 2.3 million active U.S. patents to improve their products and services. • The patent system was expressly designed to foster technological disclosure, yet few companies actually encourage their engineers and R&D managers to read and apply the knowledge contained in patents.
  22. 22. Conclusion: We must develop a much more robust set of education efforts to explain the powerful role played in today’s knowledge economy by intellectual assets, including IP. In 2013, the WEF held dialogues among stakeholders in two markets—the United Kingdom and Indonesia—to understand concrete dynamics and contextualize the debate on intellectual property.
  23. 23. Rethinking IP in the Digital Age: Agreed Principles • Foster and reward creativity • Build an ecosystem for innovation • Expand access to content • Inform users about ownership rights • Give creators and rights owners control and choice • Enable people to be creators • Strengthen global collaboration
  24. 24. Patent Reform 2015 Senate Bill S. 1137 The PATENT Act House Bill HR. 9 The Innovation Act
  25. 25. Patent Reform 2015 • Sens. Grassley, Leahy, Cornyn, Schumer, Lee, Hatch, and Klobuchar, sponsored the"Protecting American Talent and Entrepreneurship Act of 2015" ("PATENT Act ") (S. 1137) • The legislation has already cleared markup in the Senate Judiciary Committee and has a clear path to a floor vote in a Republican-controlled Senate. • Rep. Goodlatte reintroduced the Innovation Act (H.R. 9) on February 5, 2015. The bill has 19 co-sponsors, made up of 10 Democrats and 9 Republicans. The bill was reported out of committee and a floor vote is likely by the fall. • Patent reform has loud detractors of all stripes, but it also enjoys overwhelming support on both the left and right. • The Electronic Frontier Foundation supports its passage.
  26. 26. IC2-Hulsey IP Lunch & Learn • Panel Discussion on Patent Reform Issues involved and what they mean to emerging growth technology companies – IC2 Institute, 2815 San Gabriel, Austin – September 10, 2015, 11:30 to 1:00 p.m.
  27. 27. Why Should You Protect Your IP: Provisional Protection • You can apply precaution to the patent process. • Learn if you can successfully take your invention to market. • A provisional patent – an abridged application that safeguards the filing date but allows one year to file the full non-provisional application. • The provisional application provides time to research the market and prepare a full application. • It allows you to decide if it’s worth the investment to seek a full patent.
  28. 28. • Many small companies don't seek IP protection due to perceived significant costs. • Microentity status and electronic filing systems help lower costs and expedite the process. • The U.S. system has shifted from “first- to-invent” to “ first inventor-to-file” in an attempt to reward entrepreneurs for protecting IP. Why Should You Protect Your IP: It’s never been easier.
  29. 29. • Why leave your intellectual accomplishments unclaimed? • The law is designed to protect your right to exclusively control your ideas and intangible assets. • This helps ensure that you will profit from your work with reduced fears of exploitation by competitors or inadvertent copycats. • Trademarks, copyrights, trade dress (a product’s look and feel), and even website addresses also are part of your intellectual property portfolio. Why Should You Protect Your IP: Claim Your Accomplishments!
  30. 30. • Globalization has made it critically important for small businesses to pursue and protect their IP rights, both domestically and abroad. • You can file separate, simultaneous applications in every country you want to protect your invention. • For some countries, regional patents are available. • You also have the option to file through the Patent Cooperation Treaty (PCT) to electronically file one simple, streamlined international application and simultaneously seek legal protection for an invention in 148 countries. Why Should You Protect Your IP: America is 4% of The World
  31. 31. • Competition – legitimate or predatory— rewards the “first to file” and may strip your ability to profit from the invention in question. • You need to take control of your great idea and own it outright. • Just as your insure important assets, such as your home, business, and health, it’s equally important to protect your ideas. Why Should You Protect Your IP: Our Competitive, Entrepreneurial World
  32. 32. Conclusion • There are domestic and global pressures on today's IP systems. • There are changes afoot in Congress to address some of the most concerning issues re: patent trolls • Strong reasons exist for protecting your company's IP • Protecting your company's IP is highly relevant to your current and planned operations and success.

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