Jorgenson, who most recently served as the Group Vice President of Intellectual Property and Licensing at the Dallas, Texas, based STMicroelectronics, one of the world’s largest manufacturers of semiconductor products, will be relocating to the metropolitan DC area in order to take this position with AIPLA.
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EDITORIAL NOTE: This week the American Intellectual Property Law Association (AIPLA) is hosting their annual meeting at the Marriott Wardman Park Hotel in Washington, DC. Michelle Lee, who is the current Deputy Director of the USPTO and recently nominated to the position of Director, opened the public portion of the meeting on Thursday with a keynote address. Below are her remarks as prepared for delivery.
Thank you, Wayne, and good morning everyone. Before I begin, I just wanted to say, it’s been a busy week, and that I am beginning to lose my voice, but it means a lot to me to be here today and to speak to you all of you, so I hope you will bear with me and hopefully my voice will hold through the speech.
With that, I’d like to congratulate Q. Todd Dickinson for his successful leadership of AIPLA, and for his past service as Director of the United States Patent and Trademark Office.
We at the USPTO appreciate his support of our agency over the years, and I personally want to thank Todd for his warm welcome of me when I took the helm of the agency in January. I know we all wish him the very best in his future endeavors.
I also want to commend Vince Garlock for his recent stewardship of the Association, and congratulate Wayne for his successful tenure as the 106th president of AIPLA.
According to this poll the biggest barriers to innovation in the United States are, in order:
- Government regulation/bureaucracy 20%
- Immigration policies 16%
- Education 14%
- Talent shortage 10%
- Lack of diversity among tech executives 10%
- The need for patent reform 8%
- Lack of investment 6%
This survey shows what those in the industry have long known — patent trolls and the need for patent reform are NOT the biggest problems facing the high tech industry in the United States. In fact, 92% of respondents feel that there are other things that are more concerning and a bigger barrier to innovation. But how can this be? The public has been consistently fed the line that patents stifle innovation. How can something that stifles innovation not be the biggest concern, particularly when so many of the tech giants from Silicon Valley have for years blamed the patent system for all their woes? The simple answer is that patents do NOT stifle innovation, but rather patents foster innovation. Those who are intimately familiar with the industry know patents promote innovation regardless of the lies promoted to advance patent reform, vilify innovators and lay the blame for everything at the feet of patent trolls. See also Promoting Innovation: The Economics of Incentives.
Caterpillar Inc. (NYSE: CAT) is a global leader in the creation of heavy industrial equipment, including construction and mining vehicles, headquartered in Peoria, IL. Earlier this morning, Caterpillar released its latest quarterly earnings report, announcing third-quarter earnings of $1.72 a share, compared to $1.45 for the third quarter last year. Wall Street was expecting Caterpillar to announce earnings of approximately $1.32 per share. The full year expectation was revised by Caterpillar to between $6 and $6.50 per share.
The corporation has seen some turbulence in its executive ranks as of late after experiencing the retirement of the presidents of both its resource industries and customer and dealer support groups. Despite corporate challenges, some business analysts are forecasting some very positive gains in Caterpillar stock over the coming year, owing mainly to the diverse nature of the company’s business operations.
This corporation is a leader in the heavy industrial sector, making it a good candidate for the Companies We Follow series. Innovation is strong at Caterpillar and seemingly increasing in scope over the past few months. Some patent applications which we’ve discussed below include technologies for removing environmental pollutants, including nitrogen oxides, from machinery exhaust gas. Another patent application discusses a drive assist system for starting a heavy vehicle while parked on a hill. Many improvements to Caterpillar’s hardware, including an enhanced metallurgy process for casting metal parts, are also featured.
Procter & Gamble Co. (NYSE: PG), headquartered in Cincinnati, OH, is responsible for the sale of many popular consumer brands of soap, laundry detergent, makeup, toothpaste and many other personal care items. A successful American company for generations, P&G has been navigating rough business waters lately, having just given up the 12th-place spot on the S&P 500 in terms of market capitalization to JPMorgan Chase. However, better financial days may be just around the corner for the company, as is indicated by the buy rating extended to P&G stock by the Bank of America in early October. Recently, the corporation announced the release of it’s newly developed Tide Professional Coldwater System, which includes unique enzymes for stain removal that work in cold water environments, saving much of the energy that would have gone into heating the water.
IPWatchdog’s Companies We Follow series has examined the innovations released by Procter & Gamble before, and our recent survey of patent applications published by the U.S. Patent and Trademark Office showed a preponderance of technologies related to skin and hair care. A couple of patent applications we share below discuss novel methods of detecting biomarkers for dandruff in an attempt to treat the issue in patients. One hair care innovation involves a method of coloring hair to achieve the same color effect that creates such a striking appearance in peacocks.
How many patent applications has your company filed today?
Facebook filed at least one patent application today, Oracle filed about 3, Google filed about 5, Microsoft and Apple filed more than 8 each, IBM filed nearly 30 patent applications just today. These are the recent averages per workday anyways. Currently Facebook has more than 450 pending applications, Google has about 3500, Oracle has 3700, Apple has 7000, and Microsoft has 30,000 pending applications. I picked these names to come up with the averages because these names have software heavy portfolios, the type of patents that have been feeling some pressure from both the anti-patent circles and from the Supreme Court – as has been amply covered by IPWatchdog.
If you are a typical new economy small tech company with software and internet centric technology or products, the number of patent applications your company filed today is probably zero. Of course filing and prosecuting patent applications is not cheap and that’s part of the explanation. However it is worth noting that most of the successful companies with software-heavy products, including those in the list above, have been filing patent applications from their very early days. An excellent recent article at IPWatchdog revealed that even an overtly anti-patent company such as Twitter has been indeed filing patent applications from its very early days and have been accumulating a large portfolio through further acquisitions. The fact is that patent protection is a hallmark of a successful innovative business, whether the product is software or not. So, it is startling to see the difference in attitude of the small innovators and the already successful large innovators when it comes to protecting their inventions.
Alternative forms of energy for the generation of electricity is a topic we focus on from time to time here at IPWatchdog. Recently, a team of scientists working at Ohio State University created the world’s solar battery, which includes a solar cell and a battery within a singly hybrid device. These batteries, which could achieve a length of charge comparable to other rechargeable batteries, achieves a cost reduction in utilizing solar energy of about 25 percent. It also reduces the need for any process of transmitting electricity from a solar cell to a battery, in which up to 20 percent of electrons are successfully transmitted to the battery.
The development of a solar battery, a major advancement in the field of solar energy utilization, is only one of the indicators of increased solar development in the past few months. Some municipalities in the United States are electing to develop community solar farms which can produce amounts of electricity that reach into the hundreds of thousands of kilowatts annually. Major solar panel manufacturers, such as SolarCity, are developing loan programs to help solar customers gain ownership of the solar panels outright over the course of years. Door to door sales of solar are also incredibly high, and Vivint Inc., a Utah-based solar developer, has sold units to 22,000 customers, mainly on the strength of house calls.
Computing technologies are the main field of development for Fujitsu Ltd. of Tokyo, Japan, and the corporation’s diverse scope of innovation involves the creation of microelectronics, telecommunications systems and cloud computing services. Recently, Fujitsu announced that it would partner with the Japanese government to design an exascale machine, a computing device operating at 1,000 petaflops, a computing speed which is 30 times faster than the industry leading supercomputer today. In a theme we’ll see repeated in today’s Companies We Follow column, Fujitsu is also deeply invested in the development of biometric technologies, including the creation of authentication technologies in casino and gambling environments. A coalition of organizations including Fujitsu has also just created an optical transmissions technology capable of transmitting data at speeds of 400 gigabytes per second up to distances of 10,000 kilometers.
We return to the patent databases of the U.S. Patent and Trademark Office to scope out recent innovation from Fujitsu in today’s article. In viewing Fujitsu’s recently filed patent applications, we saw a multitude of inventions in the field of information processing, whether for the analysis of computing processes or virtualization of computing resources on physical servers. A couple of biometrics innovations are discussed, including a system of electrodes meant to detect and prevent a vehicle driver from becoming drowsy. Methods for enhanced online classroom discussions are also explored.
The U.S. Food and Drug Administration argues that, “American consumers benefit from having access to the safest and most advanced pharmaceutical system in the world.” The system set in place to approve pharmaceutical drugs, medications and vaccines provides for immense scrutiny of the effects of the medication on a subject well before that drug ever comes up for sale. Although the FDA and its Center for Drug Evaluation and Research do not conduct pharmaceutical testing themselves, they require testing and review data from these studies that are attached to new drug applications, or NDAs.
The system is good at developing effective pharmaceuticals, from vaccines to antibiotics. It is not good at producing those products either cheaply or quickly. One of the world’s biggest current issues is how to develop a solution to the growing threat posed by the recent Ebola epidemic in West Africa. Efforts to develop an Ebola vaccine, along with other effective treatments, have been gaining steam at research laboratories in America and across the globe.
In the past, researchers have developed an Ebola vaccine for monkeys and macaques, which are also affected by strains of the Ebola virus. The vaccine is so effective that many monkeys can be brought back to health even when injected with 100 times the lethal dose of Ebola after vaccination. However, with HIV, tuberculosis and many other diseases claiming more lives every year, research focus on Ebola has been low in recent years. So how long does it take a typical vaccine to go from concept to reality?
The process of developing a drug is incredibly expensive and costs have skyrocketed over the past few decades. According to the Pharmaceutical Research and Manufacturers of America (PhRMA), the cost for developing a single new drug, including money spent on researching unsuccessful drugs which don’t pass FDA screening, was $1.2 billion in the early 2000s, up from about $140 million during the 1970s. Estimates released in August 2013 by Forbes indicate that the price of developing a single drug is about $5 billion per medicine accepted by the FDA.
A large reason for these high costs is the incredibly high rate of failure during drug development. About 95 percent of all pharmaceuticals researched for use in humans fail to achieve the effectiveness and safety standards required for FDA approval, according to Forbes estimates. During 2013, the companies represented by PhRMA spent a total of $48.5 billion on research and development activities related to pharmaceutical drugs.
Another reason for the high costs associated with taking a drug to market is the fact that there is a complicated regulatory process. According to the Burrill Report , the rising costs associated with drug development can be explained, at least in part, due to regulatory barriers in place that slow approval and place many hurdles between the drug and the marketplace. “In the 2000s, that time grew to 13.5 years from just 6 years in the 1970s,” the Burrill Report explained.
From time to time I am asked to help spread the word about various things. At the present we don’t have an efficient mechanism to do this, but we are currently redesigning the website and will have more flexibility soon.
In any event, here are a few announcements and events worth knowing about.
Happy Hour with Gene Quinn
Tuesday, October 21, 2014, 5pm to 7pm, Morristown, NJ
I will be attending meetings in Morristown, NJ, on Tuesday, October 21, 2014. One of my sponsors, Innography, will be sponsoring the free happy hour event. If you are interested in attending please RSVP here.
Innography, offers a proprietary suite of products combines unique correlation and visualization technologies to seamlessly integrate patent data with financial, litigation, market, and other key business information. The programs are always excellent, and the event will likely attract close to 2,500 attorneys from all over the world, as well as many service providers.
Although many inventors believe otherwise, drafting a patent application is not an easy endeavor. Indeed, the United States Supreme Court has described a patent application as one of the most difficult legal instruments to create. There are a great many pitfalls and perils that face anyone who drafts a patent application, particularly inventors who are not intimately familiar with the patent laws and regulations that will apply.
Attorneys are frequently very good at telling would-be entrepreneurs exactly what they should do, but if you have never been an entrepreneur it can be easy to lose sight of the universal truth that no matter how well funded you may be there is never enough money to afford to do everything that needs to be done. Indeed, even if you carefully plan a budget as an entrepreneur you really have to multiple whatever you think you need by a factor of at least 2 or 3 because things will cost more than you assume even if your projections are conservative. For example, it will come as a shock for many entrepreneurs that the cost of electricity for a business is far greater than the cost of the same electricity for a residential customer.