Posts Tagged: "patent strategy"

Knowing when to give up on a patent application is one of the most critical questions facing for any patent applicant… When faced with the decision regarding whether to file an RCE or file an Appeal, the desire to not give up and to hopefully obtain a patent can easily lead any application to elect to the file a Request for Continued Examination (RCE). This is true for the cost reasons already stated, but also because filing an RCE you will undoubtedly get treatment much faster than going on the appeal track, and there is always hope that additional time working with the patent examiner will yield patentable claims. Of course, sometimes filing that next RCE is going almost certainly accomplish nothing.

Just as most of society wrongly considers doctors as “gods”, many patent clients wrongly think that patent attorneys will help them achieve these business objectives simply by filing a patent. To be fair, patent attorneys are not being hired to study the client’s market, nor their competitive position within the market. They are not hired to develop the client’s internal IP budget, nor to help the company strategically develop an IP portfolio that could boost exit value. Such an engagement could be fraught with conflicts and confusion. Unless attorneys make clear the limited and narrow scope of their services, and unless and until clients become more IP-savvy, clients will continue to incorrectly assume that all is fine in their Patent La-La Land; nothing is further from the truth.

Whenever there is interesting IBM news of a patent variety Schecter has been gracious enough to make time to chat. The news of IBM’s patent supremacy wasn’t just any run-of-the-mill news, at least not in my opinion. The commitment to innovation and belief in the patent system has served IBM well for many decades, and twenty years as #1 at anything is astounding in a world dominated by parity and antitrust regulators that don’t want any single company to succeed too much. We discuss the commitment to excellence required to stay #1 for twenty years, the process for deciding which patents to keep paying maintenance fees on, what may change once the U.S. converts to first-to-file on March 16, 2013, how Watson is being put to use and the parting of USPTO Director David Kappos.

Despite the reality that history teaches about the high-tech industry, shareholders/investors and the popular press will dive in and report what is being said by the newsmakers. Little is ever done, however, to figure out what all this actually means. Perhaps this is because the very nature of preparing a patent strategy is something that requires both understanding of the patent laws and a healthy understanding of business realities and evolving technologies, and not just business realities or technological advances in the abstract. Rather, in order to truthfully plot a course calculated to succeed company leaders need to be cognizant of the actual business realities facing the company, not the talking points of lobbyists or those who write SEC filings. Furthermore, a comprehensive understanding of the companies own research and development, as well as where the industry is heading, is crucial when attempting to create the patent strategy.

It is also critical for inventors and entrepreneurs to have a strategy to succeed, which seems simple enough, but is typically anything but simple for the creative types that are so good at inventing. The goal is not to create an invention that is cool, the goal is not to get a patent, the goal is almost universally to make money. The cool invention and patent are a means to the end, not the end in and of themselves. If you approach your patent activities appropriately you can lay the foundation of a business plan, at least insofar as the technology and technological advancement of your innovation is concerned. But like almost everything in life, there is a cost associated with succeeding. The cost is hard work to be sure, but there will also be significant financial requirements as well. While you may need to bootstrap your invention and business, as you move forward you will invariably need funding. From Angel investors to start, and maybe from Venture Capitalists eventually.

What if you could have a crystal ball looking inside the United States Patent and Trademark Office to easily determine an array of statistical information related to a particular Art Unit or even a specific Patent Examiner? Can you imagine the types of strategic consultations you could engage in with clients? Clients hate being surprised with additional fees and unexplained and/or unexpected delays. What if you could with a few clicks of your mouse find out all kinds of information about a Patent Examiner and/or Art Unit? The amount of cases requiring an RCE, the average number of office actions, how often appeals are successful, how long it takes on average to get a patent, among much more information? Thanks to a new system created by patent attorneys Chris Holt and Joseph Kelly — the PatentCore™ system — you can obtain actionable and immediate intelligence on any patent examiner and on any Art Unit.

Under the “first to file” AIA regime, the effective prior art date is what prior art exists before the U.S. patent filing date. In other words, the U.S. patent applicant no longer has the luxury of that potential up to one year “window” after the invention date. Instead, the danger of intervening prior art by others steadily (and potentially exponentially) increases as time passes between the invention date and the U.S. patent filing date. Put differently, U.S. patent applicants are now really in a “race to the U.S. Patent & Trademark Office (USPTO)” to minimize the ever increasing danger of intervening (and accumulating) prior art coming into play. For the Goliaths, they’ve been existing in this situation for many years because the rest of the world (ROW) is “first to file.” But for the American Davids, “first to file” under the AIA is going to be culture shock of the worst, and most expensive kind, with time pressure that these Davids aren’t prepared or trained to handle.

Patents provide a competitive advantage, and those sophisticated in business know enough to look for and exploit whatever competitive advantage exists. Patents are the 800 pound gorilla of competitive advantage, but realize if you are going to want and need significant sums of money from investors rarely does a single invention or patent command attention. No one wants to invest significant funds into a company that has a one-and-done approach to innovation. You need to understand the road is long. Take a lesson from Apple, Inc. Innovate and then churn your innovation for all its worth, re-purposing the technology, expanding into products and services, constantly push the envelope and milk the golden goose for all its worth!

Last week I gave an interview to Mark McCarty at Medical Device Daily, which published on Monday, August 17, 2009.  We had a good conversation for almost two hours about all kinds of patent topics.  Sometimes when you talk to reporters you never really know whether they are following what you are saying, whether they will wait for that one…