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Archive for July 2010

Through the Fuzzy Bilski Looking Glass: The Meaning of Patent-Eligible under 35 U.S.C. § 101

Posted: Thursday, Jul 22, 2010 @ 6:38 pm | Written by Eric Guttag | 74 comments
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Posted in: Bilski, Biotechnology, Business Methods, Computers, Eric Guttag, Federal Circuit, Guest Contributors, IP News, IPWatchdog.com Articles, Patentability, Patents, Software, US Supreme Court, USPTO

Alice enters another world through the looking glass

In Chapter 6 of Lewis Carroll’s Through the Looking Glass, Humpty Dumpty tells Alice scornfully “when I use a word, it means just what I choose it to mean – neither more nor less.”  After reading and compositing the various opinions by the nine SCOTUS Justices in USPTO v. Bilski, I, like many others, are still wondering what is a patent-ineligible “abstract idea” (other than Bilski’s claimed method for instructing buyers and sellers how to protect against the risk of price fluctuations in a discrete section of the economy, i.e., hedge against such risks) and especially what does “patent-eligible” really mean under 35 U.S.C. § 101.  The composite opinions by SCOTUS in Bilski concoct a standard for patent-eligibility that is as fuzzy and circular as the logic Humpty Dumpty employed on Alice.

As you might imagine, there are many takes on what the SCOTUS Bilski ruling actually says, including mine.  See Section 273 is NOT a Red Herring: Stevens’ Disingenuous Concurrence in Bilski where I waxed lyrical about now retired Justice Stevens’ disingenuous sophistry in his concurrence which treats 35 U.S.C. § 273 as if it didn’t exist, but which is, in fact, an implicit, if not explicit, recognition and acceptance by Congress that “business methods” (however you characterize them) ARE patent-eligible subject matter under 35 U.S.C. § 101.  See also Foaming at the Mouth III: And Then Came Bilski where I commented on the most recent “thunderbolt” from our Judicial Mount Olympus as SCOTUS summarily granted certiorari in Prometheus Laboratories, Inc. v. Mayo Collaborative Services and Classen Immunotherapies, Inc. v. Biogen Idec, and then vacated and remanded both cases to the Federal Circuit to reconsider (with equally “fuzzy” guidance) in light of SCOTUS’ ruling in Bilski.



Senate Holds Hearing on Rare and Neglected Pediatric Diseases

Posted: Thursday, Jul 22, 2010 @ 12:49 pm | Written by Gene Quinn | 14 comments
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Posted in: Biotechnology, Food & Drug Administration, Gene Quinn, IP News, IPWatchdog.com Articles, Pharmaceutical

It is becoming popular in some circles to beat up on companies that employ people, make a profit and actually have the audacity to patent their innovations. In this bizarro world the logic, what little of it seems to prevail, suggests that no incentives are necessary in order innovation because innovation will just happen naturally. This naive view of the world ignores the human condition, among many other things. An appropriate incentive structure promotes innovation and benefits society. Even the most irrational and illogical critic has to agree that not all incentives to innovate are evil. Exhibit 1 – the Orphan Drug Act of 1983.

Yesterday, John F. Crowley, CEO of Amicus Therapeutics (Nasdaq: FOLD) and a member of the Board of Directors of the Biotechnology Industry Organization (BIO), testified on behalf of BIO at the Senate Committee on Health, Education, Labor and Pensions. This full committee hearing focused on rare and neglected disease. Mr. Crowley, provided background and perspectives on the current state of drug development for orphan products, and made a series of recommendations to the Committee regarding the establishment of additional incentives for companies to develop more treatments for rare and neglected diseases.



Lots of Support at Patent Office Three Track Public Meeting

Posted: Wednesday, Jul 21, 2010 @ 7:56 pm | Written by Gene Quinn | 26 comments
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Posted in: Gene Quinn, IP News, IPWatchdog.com Articles, Patents, USPTO

Yesterday the United States Patent and Trademark Office held a public meeting on the so-called Three Track examination proposal, with everyone in agreement that the proposal is quite welcome, at least in principle.  On June 4, 2010, the USPTO published a Notice in the Federal Register setting out the preliminary Three Track proposal and setting Tuesday, July 20, 2010 as a date for the public to come to the Alexandria, Virginia campus to let PTO Officials hear their thoughts.  This public meeting proceeds the due date of written comments by a full month, and many of those who spoke explained they would continue to review the proposal and follow up with additional written comments.  For more information on the specifics of the proposal please see USPTO Announces New Examination Rules.

One thing can be said definitively: everyone thinks it is a good idea, no one has issues with accelerating applications (Track 1) or allowing them to remain on course as today (Track 2), but there were numerous concerns raised about applicants slowing applications down (Track 3).  The good news for the PTO, however, is that speaker after speaker highlighted the same or similar concerns, so it does appear as if there are a finite set of manageable considerations for the PTO to address.  In fact, the senior PTO Officials that I spoke with after the public meeting were extremely pleased and quite grateful.  I was told by one senior PTO Official that the points raised were all good and that the PTO intends to take them into consideration and address the concerns, along with whatever written feedback they receive.  What a refreshing change that will be!



Wall Street Journal Profiles Medical Marijuana, but not Important USPTO Issues

Posted: Monday, Jul 19, 2010 @ 11:25 pm | Written by Gene Quinn | 6 comments
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Posted in: Gene Quinn, IP News, IPWatchdog.com Articles, Patents, Trademark, US Economy, USPTO

Earlier today the Wall Street Journal gave front page space to a story relating to the United States Patent and Trademark Office.  Widely regarded as one of the “papers of record” in the United States, one might expect that the Wall Street Journal had brought its considerable clout to an important issue plaguing our time, such as an horribly under funded Patent Office that is holding innovation hostage, costing America perhaps millions of jobs.  NO!  Rather than educate itself and others, thereby exposing in real terms for the everyday observer the plight of the Patent Office and what it means to the United States economy, the Wall Street Journal wrote a front page article on the errant creation of a trademark class associated with medical marijuana.

Don’t get me wrong, every tabloid should have front page news story about pot, medical marijuana and have an image of a VW bus over the tag “the Canny Bus,” as the Journal did earlier today.  Call me crazy, but I expected more from the Wall Street Journal.



In Search Of a Definition for the term “Patent Troll”

Posted: Sunday, Jul 18, 2010 @ 11:46 pm | Written by Gene Quinn | 62 comments
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Posted in: Gene Quinn, IP News, IPWatchdog.com Articles, Patent Litigation, Patent Troll Basics, Patent Trolls, Patents

Over the last several weeks “patent trolls” have been back in the news. The mother of all patent trolls, NTP, which won over $600 million from Research in Motion as the result of a successful patent infringement litigation over the popular BlackBerry phone, is back at it again. NTP is now suing Apple, Google, Microsoft and others alleging that smart phone e-mail systems infringe its patents. See, for example Bad News for Tech Heavies? and NTP sues Apple, Google, Microsoft and others.

Not long ago Attorney John M. Desmarais, who was one of the attorneys who represented GlaxoSmithKline in their effort to stop the claims and continuations rules from becoming effective, left the practice of law. He acquired 4,500 patents and is going to throw his hat into the ring, presumably representing himself, going after those large companies that he believes are infringing his patents.  See Billion Dollar Lawyer Desmarais Quits Firm to Troll for Patents.

Just this past week, Kelley Drye & Warren, the firm that represented Dr. Tafas in the claims and continuations challenge, filed an $11.4 billion lawsuit on behalf of XPRT Ventures, LLC. Many in the popular press and in the blogging community are, like lemmings heading off a cliff, referring to XPRT as a patent troll. But what evidence do that have of that? As far as I can tell little or none; mostly none.  See eBay’s PayPal Sued for $11.4 Billion for Patent Infringement.



USPTO to Host Roundtable on Three-Track Patent Proposal

Posted: Saturday, Jul 17, 2010 @ 12:07 pm | Written by Gene Quinn | 8 comments
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Posted in: Gene Quinn, IP News, IPWatchdog.com Articles, Patents, USPTO

USPTO Headquarters, Alexandria, VA

The United States Patent and Trademark Office (USPTO) will be holding a public roundtable discussion on its proposed Enhanced Examination Timing Control Initiative, also known as “Three-Track,” currently under consideration by the USPTO. The purpose of the roundtable meeting is to solicit opinions from the public on the proposed initiative. The meeting will be held on Tuesday, July 20, 2010, from 1:30 p.m. to 5:30 p.m. at the USPTO headquarters in the Madison Building Auditorium, which is located at 600 Dulany Street, Alexandria, VA, 22314. The meeting will also be webcast. Web cast information is available on the USPTO’s website by visiting http://www.uspto.gov/patents/announce/3track.jsp.

The proposed ”Three-Track” initiative would provide applicants greater control over when their applications are examined and promote greater efficiency in the patent examination process. The proposal is designed to provide applicants with the timing of examination they need and to reduce pendency of patent applications.



USPTO Extends Comment Period for Draft Strategic Plan

Posted: Thursday, Jul 15, 2010 @ 1:12 pm | Written by Press Releases | 1 Comment »
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Posted in: IP News, IPWatchdog.com Articles, USPTO

WASHINGTON– The United States Patent and Trademark Office (USPTO) announced that the period for receiving public comments regarding the agency’s 2010-2015 draft Strategic Plan has been extended until August 2, 2010. The extension has been made to allow more time for the public to provide feedback to the agency about the plan.

The draft plan includes the USPTO’s mission statement, vision statement and a description of the strategic goals, objectives and significant actions that the USPTO plans to take in order to accomplish its mission and achieve its vision over the next five years. The final plan will be posted on the Web site by September 30, 2010.



E.D. of TX Rejects Design Patent Point of Ornamentality Test

Posted: Thursday, Jul 15, 2010 @ 11:35 am | Written by Tracy Durkin & Jeffery Fougere | Comments Off
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Posted in: Guest Contributors, IP News, IPWatchdog.com Articles, Patent Litigation, Patents

Fig. 1, the only figure in D498322

In a recent decision, the Eastern District of Texas has clarified the proper role of functionality in claim construction for design patents. By statute, design patents must be directed to “ornamental designs for an article of manufacture.” As a result, courts have struggled with how and when functional aspects of a design should be considered when construing a patent claim. The Federal Circuit addressed this issue earlier this year in Richardson v. Stanley Works, 2010 WL 774334 (Fed. Cir. 2010), in whch it appeared to direct district courts to factor out the functional aspects of designs during claim construction.

The claim at issue in Good Sportsman v. Li & Fung Limited, 2010 WL 2640385 (E.D. Tex. 2010), was for a clip-on book light. Plaintiff Good Sportsman proposed the claim construction of “an ornamental design for a clip light as shown in Figure 1 of the picture.” Defendant Li & Fung Limited sought a more limiting construction based on Richardson, which expressly discounted “functional” elements of the design, such as the design’s clip, headlamp, on-off switch, and flexible wire. Ultimately, the court adopted Good Sportsman’s approach, holding that the claimed design is best represented by the illustration contained in the patent and refused to provide limiting language regarding functionality in its claim construction.



Nick Godici Part 3: Funding Crisis ’09, Furloughs & Fun Stuff

Posted: Thursday, Jul 15, 2010 @ 8:30 am | Written by Gene Quinn | 2 comments
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Posted in: Interviews & Conversations, IP News, IPWatchdog.com Articles, USPTO

Nick Godici

Nick Godici, the former Acting Director of the United States Patent and Trademark Office, sat down with me on Tuesday, June 29, 2010, for an extended interview. Nick is one of a select few who have seen the Patent Office on every level, from patent examiner, to SPE, to Group Director, Commissioner for Patents and ultimately Acting Director. In Part 1 of the interview we discussed his philosophy on examining patent application, the historic allowance rate vs. the depressed allowance rate of the pre-Kappos PTO and a variety of other topics. In Part 2 we discussed how President Obama’s approach to revitalizing the USPTO under Director Kappos’ direction parallels President Reagan’s attempts under Gerry Mossinghoff. We also discussed building relationships between patent examiners and the patent bar, what the PTO is likely doing to announce 101 guidelines in the wake of Bilski v. Kappos, and what it is like to be Director of the USPTO.

In this final installment of my interview with Nick Godici we learn just how close the Patent Office was to sending out 9,000 furlough notices (to all those on the patent side of the building) during the Summer of 2009 as a result of lack of funds. We also discuss the historic patent allowance rate versus the 42% rate the Patent Office got down to during the Q1 of 2009.  Godici also humors me by answering the fun questions and we learn that he was the primary examiner on a somewhat famous (or infamous) patent relating to a bird trap and a cat feeder, and he goes off the board with an interesting selection for most famous fictional inventor.



Patent Trolls: A Conspiratorial Story of Symbiosis

Posted: Wednesday, Jul 14, 2010 @ 8:31 am | Written by Gene Quinn | 5 comments
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Posted in: Gene Quinn, IP News, IPWatchdog.com Articles, Patent Litigation, Patent Troll Basics, Patent Trolls, Patents

On Friday, July 9, 2010, Garmin International Inc., a unit of Garmin Ltd. (NASDAQ: GRMN), issued a press release touting the fact that they had managed to win a Motion for Summary Judgment in the Northern District of Illinois, with the Federal District Court granting Garmin’s motion in SP Technologies, LLC v. Garmin International, Inc. and TomTom, Inc. The Memorandum Opinion and Order, issued by Federal District Court Judge Rebecca R. Pallmeyer, hands famous, notorious and/or infamous (depending on your viewpoint) attorney Ray Niro a defeat. Niro, a favorite attorney of those alleged to be patent trolls, represented SP Technologies.

The Order granting Summary Judgment in favor of Garmin, which issued on July 7, 2010. explains that all asserted claims of U.S. Patent 6,784,873 are invalid. The did not decide the matter of non-infringement, finding it to be mooted as a result of the invalidity determination of the ‘873 patent. Nevertheless, wining on validity, or invalidity as the case may be, is still and win, and this marks the third consecutive patent suit that Garmin has successfully concluded by aggressively attacking invalid patents asserted by non-practicing patent holding companies, also known as patent trolls in some circles.