mars best practices: ip best practices for ice companies - henry ohab

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MaRS Best Practices_ Intellectual Property

Henry Ohab Thursday, February 24, 2011


What Is Intellectual Property ?

•  Patent •  Trademark •  Copyright •  Industrial Designs •  Trade Secret


Intellectual Property Protection

Patent Protects new & useful concepts; strong protection rights

Trademark Protects the source & reputation of the goods

Industrial Design Protects ornamental features of products

Copyright Protects artistic work including drawings, compilations,

manuals, etc. Trade Secrets

Protected to the extent kept confidential. No recourse against independent development.


Patents

•  Provides the right to exclude others from making, using, and selling a product or process during the term of the patent

•  Awarded in exchange for a fully enabling disclosure of the “best mode” of practicing the invention

•  Term of the issued patent is 20 years from date of filing

•  Patent rights are territorial


Why Patent?

•  Competitive advantage to prevent copying •  Blocking patents as barrier to market entry •  Royalty stream •  Attract investment •  Deter lawsuits from competitors •  Negotiating for possible cross-Licensing •  Increase value of the company for acquisition


Deciding What to Patent

•  As a business asset, value depends on other factors beyond just technical merit

•  Is the invention so novel that broad claims are likely to issue?

•  Blocking - effectively preclude others from copying?

•  Difficult for competitors to “design around”?

•  Can infringement be easily detected?


Where to File ?

Value is increased if protection is obtained in multiple jurisdictions

•  Where is the market for the product? •  20 year term •  Growing Economies

•  Where is the product manufactured? •  Prevent manufacture of product in strategic locations •  Import/Export Regulations

•  Where are my competitors? Where is the R&D market? •  Which jurisdictions are strong in enforcing patent rights?

•  Importation •  Policing •  Litigation/Damages


What is Involved?

•  Inventor interview •  Drafting the patent application •  Prosecution of the application


Inventor Interview

•  Public disclosure or other possible bars apply ? •  Determine inventorship •  Understand the invention


Be Aware of Potential “Bars” to Patenting

•  Public disclosure, public use or offer for sale may be a bar to obtaining a patent

•  1 -year grace period in US; Europe and most other jurisdictions require absolute novelty

•  Any of “bar” actions start the clock ticking •  Use Non-Disclosure Agreements with appropriate

description •  Using NDAs also avoids the potential for the other

party filing for a patent on the same or similar ideas •  File the patent application early


Determine Inventorship

•  Who contributed to the subject matter of the claims ? •  What is their relationship with the company, e.g.

employee, contractor •  When was the invention created? •  Joint inventors – anyone who contributed to at least

one claim •  Naming the correct inventors is important – a patent

that fails to identify the true inventors may be held invalid and unenforceable


Ownership

•  Increased value when IP is owned by a single entity

  Employment Agreements in place before IP is generated   Assignment Agreements before research is done by third party   Joint Collaborations – IP considerations

•  All ownership of IP should be determined before the research is conducted and before patents are filed.


Prior Art Searching?

•  No duty to search for prior art •  But must disclose relevant prior art of which you’re

aware •  Searching patent publications prior art may have

implications related to willful infringement for patents found, since considered “on notice”


Drafting the Patent Application

•  Understand the invention both technically and in its commercial context

•  Prepare a sufficient and enabling disclosure; do not characterize the prior art

•  Provide claims of varying scope; less vulnerable to prior art cited during prosecution and even after issuance, and thereby highly enforceable

•  The claims of the issued patent define the legally enforceable scope of the patentee’s rights

•  Draft different types of claims (product, system, method) as appropriate to the invention


Patent Applications

•  U.S. Provisional Application Consider filing if a public disclosure/ sale is imminent Should be as detailed as possible to support claims once converted Avoid unless absolutely necessary

(Patent Cooperation Treaty) PCT Application International Application holding a filing date and place in nearly every country in the world

30 month deadline for selecting jurisdictions in which to obtain protection

Patentability report by IEA. •  European Application

Single examination for EU Member Countries If granted, can select countries for validation


First Filing

•  Typically, Canadians file first in US •  Can file a Provisional application for lower fees while

preserving early “priority date”; convert to Regular application within next 12 months; delays examination, however.

•  The Specification of the Provisional application as filed must provide support for claims once converted

•  File early to take advantage of the presumption that first to file is the first inventor


Prosecution

•  A well prepared specification and claims can make prosecution “cleaner”

•  Be aware of File Wrapper Estoppel in US •  Duty of candor in US applies during entire pendency

of application


Maneuverability - Pending Applications

Ability for owner to modify the scope of the claims to increase the value of the patent.

•  Amendment to claims must be supported by the specification as originally filed or must be reasonably inferred from the specification as originally filed.

•  Allows for amending the claim scope of the pending application.

•  Amending claims of allowed patent very much more restricted.


Post-Filing Timeline

Originating application filed

12 Months – PCT Application/Regular Application

18 Months – Publication of First application

30 Months – National Phase Entry of PCT Application


Post-Filing Strategy

Timeline for selecting jurisdictions: •  1 year from priority date – regular filed application •  30 months from priority date – PCT application

Delay in time allows for: •  Funding •  Confirming Market Acceptance •  Research/Test Results •  Partnering/Selling


U.S. Considerations

•  Continuation practice •  Obtain allowed claims to narrow scope and then file

continuation patent directed to broader claim scope. Allows patentee to adjust the claims based on actions of competitors.

•  Terminal Disclaimers/Double Patenting.

•  Continuation-in-Part Applications for improvements.


Trademarks

•  A word, a symbol, a design or any combination thereof used to identify the origin of goods and the customer’s expectation associated therewith

•  Standard for infringement: likelihood of confusion •  Actual use can establish rights under common law,

but prior registrations may result in infringement of the rights of others outside the limited geographical scope

•  Have a search done before investing in a particular name/design

•  15 years, renewable indefinitely


Copyright

•  Automatically vests with the author of the work •  Protects expression not underlying functionality •  Prevents copying, not independent creation •  Long term life of author plus 50 years (70 in US) •  Can be registered for a nominal fee •  Registration allows damages for infringement •  Infringement: any unauthorized copying, distribution,

performance or display of a work


Industrial Designs

•  Cover the shape, configuration and ornamentation of an article

•  Not function •  Typically useful for consumer products of high

volume that may be subject to foreign knock offs. •  Relatively cheap, but provides limited protection, total

10 years available in Canada


Trade Secrets

•  Can be anything the company considers valuable and has not made publicly known •  customer list, product plans •  formulas (Coke) •  manufacturing process (3M post-it notes)

•  Must take reasonable measures to protect the confidentiality

•  Once disclosed, protection is lost

mars best practices: ip best practices for ice companies - henry ohab

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