Tag Archives: intellectual property

Financial services IP is focus of July conference in NYC; IPCU readers receive a $200 discount

FinTech, blockchain, cybercrime – intellectual property for the financial services industry today requires a balance of emerging technologies and rights, including patents and trade secrets. 

On July 24-25 in New York World Congress is holding the 16th annual “Protecting Innovations in the Financial Services Industry.” It will be convened at the Intercontinental Barclay, between Park and Lexington Avenues.

Speakers include USPTO Director Andrei Iancu, Microsoft Chief IP Counsel, Erich Andersen (pictured) and IP executives from American Express, MasterCard and Wells Fargo.

Hon. Joy Flowers Conti, Chief Judge United States District Court, Western District of Pennsylvania, also will present.

Program highlights include:

  • Discuss implications of the USPTOs recently announced guidance for subject matter eligibility under Section 101
  • Assess the impact of the revised guidance on Federal Court cases
  • Determine patentability of AI and blockchain technologies: Gain strategies to overcome patent eligibility rejection
  • Explore innovations in FinTech and their impact on financial services IP
  • Hear updates on CBM and IPR proceedings
  • Foster a culture of innovation and strengthen the IP ecosystem

 

For the full program, go here.

For the list of speakers, here.

To register, go here. IP CloseUp readers receive a $200 discount by including conference code, CLOSEUP.

 

Image source: worldcongress.com

 

‘Copyright is for losers,’ says street artist, Banksy; some trademarks not

Ubiquitous yet unknown, UK street artist, Banksy, not a fan of copyright protection, has resorted to the trademark law to stop unauthorized sale of his work in Italy. 

Banksy’s company, Pest Control, sued an Italian company for “selling unauthorized merchandise in connection to an art exhibition. In a provisional ruling, a court in Milan has ordered the company to stop selling the merchandise at hand.”

Banksy’s satiric images are among the most recognizable in the world, and he is among the most infamous artists, yet his identify is unknown. He has said that “copyright is for losers.” The Italian matter was the first time he had enforced his trademarks, perhaps not because of the lost income, as much as to maintain control and prevent over-commercialization.

That his company, Pest Control, sued a museum gift shop may not be an accident. ‘Exit Through the Gift Shop,’ Banksy’s 2010 Oscar-nominated documentary about street artists and how they work, not only illuminated their challenges but elevated the importance of their work. Some believe that the non-fiction film is hoax, or at best a staging, designed to perpetuate Banksy’s mystique.

Questionable IP Strategy

“What is most interesting about this [trademark] matter, writes Vittoria Romano an Australian lawyer on Lexology, “that in concealing his identity, Banksy limits his ability to enforce Copyright.

“Further, his deliberate opposition to using his brand in market puts him at risk of failing to show use. It seems the Pest Control team need to work on an IP strategy moving forward in order to protect the commercial side of his art, even if that is considered to go against his anti-establishment messages.”

Watch Banksy’s $1.2 million ‘Balloon Girl’ Self-Destruct at Sotheby’s in London

 

Prankster or Profit?

“Banksy’s painting of a girl and a balloon, which began shredding itself moments after it sold at auction, for $1.4 million, in London on Friday night, remains to be seen,” wrote art critic Andrea K. Scott in The New Yorker.

“Sotheby’s hasn’t disclosed the buyer’s identity. (Such opacity is business as usual in the art market.) If this person was shelling out for love of the image alone, I would suggest picking up a replacement at Target, where a print version is currently on sale for $36.79, down from forty-six dollars. But, if the painting was purchased as an investment, the buyer might as well follow through.

“The picture’s destruction, like that of Tinguely’s machine, was halted before the job was complete, and there is already speculation that the work in damaged form will become even more valuable than it was before. If the stunt was intended to mock the spectacle of art being reduced to a price tag, the joke might be on Banksy.

“But since it was clearly also a bid for more notoriety—for an artist bent on maintaining anonymity, Banksy does not shy away from the limelight—a cynic might call this is his best art work yet. Since Sunday, the spectacle [see video above] has been viewed nearly nine million times, in a video that Banksy posted to Instagram.” [His page is worth viewing.]

Experts speculated that the price of the shredded ‘Balloon Girl’ increased some 50% or $700K immediately upon partial destruction.

Banksy encourages us to regard vacant spaces and familiar images in humorous ways, and not to take art or ourselves too seriously.

For The New Yorker piece, go here.

The Pest Control website is chuckle-worthy, especially “What is Pest Control?”

 

Images source: marinimacuna.com; thetimes.co.uk; theverge.com; wemp.app

Intellectual property is at the core of World Press Freedom Day

May 3 is World Press Freedom Day. It is more important than ever to celebrate press freedom, to understand what it means and to assure it exists and is respected.

Press freedom is not something to be taken for granted — even in the most economically advanced democracies.

It is easy today to confuse perspective with fact, and credible journalism with promotion.

Intellectual property relies on a free and independent press to provide accurate, accountable reporting and information about IP rights and creators.

World Press Freedom Day was proclaimed by the UN General Assembly in December 1993, following the recommendation of UNESCO’s General Conference. Since then, 3 May, the anniversary of the Declaration of Windhoek is celebrated worldwide as World Press Freedom Day.

WPFD is an opportunity to:

  • celebrate the fundamental principles of press freedom;
  • assess the state of press freedom throughout the world;
  • defend the media from attacks on their independence;
  • and pay tribute to journalists who have lost their lives in the line of duty.

2019 Theme: Media for Democracy: Journalism and Elections in Times of Disinformation

Image source: unesco.org; pen.org

Trade Secrets: “What People Need to Know” — Sen. Coons, IP experts, scheduled to speak May 29

Trade secrets, or know-how, frequently in the news, are simultaneously among intellectual property’s most valuable and misunderstood rights.

A luncheon briefing designed to put these essential rights into clearer perspective will be held at United States Chamber of Commerce headquarters in Washington on May 29 – “Understanding the Secret to Trade Secrets: What People Need to Know Today.”

The briefing is being hosted by the Center for Intellectual Property Understanding (CIPU) in conjunction with the Global Innovation Policy Center (GIPC).

The event will clarify (1) what trade secrets are, (2) why they are more important now, (3) how they are used and (4) their impact on innovation, competition and trade.

Panel coverage includes:

  • Trade secrets’ role in promoting commerce and security
  • The hidden value of “negative” know-how
  • How trade secrets compliment patents and trademarks; their drawbacks
  • U.S., China and trade secrets today

In additional to Senator Chris Coons (D-DE), Vice-Chairman, Select Committee on Ethics and proponent of IP rights, speakers will include

  • F. Scott Kieff (U.S. International Trade Commission chief, 2013-2017)
  • James Pooley (Deputy Director General of the World Intellectual Property Organization, 2009-2014)
  • Brian Hinman (Aon IP Solutions; former Chief IP Executive, Philips and Verizon, and head of licensing at IBM)

“Trade secrets, or know-how, frequently comprise the most valuable part of a businesses’ IP portfolio,” says Marshall Phelps, former Vice President of IP Business and Strategy at Microsoft and IBM, and a member CIPU’s board of directors.

“Trade secrets can be as important as patents or trademarks. Despite the news coverage regarding IP and China, little known about how know-how works in practice.”

The Defend Trade Secrets Act of 2016 (DTSA) brought trade secret misappropriation under federal jurisdiction.

For the briefing agenda, go here.

To request an invitation, write registration@understandingip.org. Registration is free, but space is limited.

Image source: CIPU; foodsafetynews.com; GIPC

“IP impacts everyone” – Two-minute video explains “why?”

What is intellectual property? Why should I care?

These questions are frequently considered – if not asked – by a range of people of all ages, incomes and education levels.

Products of the mind (inventions, creative works, etc.) and the rights that protect them can be complex. But the answer to “why IP?” is simpler than many people would think – jobs, competition, prosperity, as well as culture and quality of life. IP helped to make American and other nations great and will continue to, if we permit it.

The Center for Intellectual Property Understanding (CIPU) recently produced a white board video that explains in a few words and images why and to whom IP is relevant. The video (below) is suitable for a wide range of audiences.

“Intellectual property is the foundation for the future,” said Bruce Berman, founder and chairman of CIPU, an independent non-profit focused on increasing awareness of IP rights and their impact on people’s’ lives. “IP rights are a bridge that enables freedom, as opposed to a legal requirement that inhibits it. Lack of understanding make it difficult for people to see it that way. Early awareness and education help. It is never too late, or early, for anyone to learn why IP maters.”

There are many animations available that explain IP’s importance to children, but employees, investors, teens, law enforcement professionals, parents and educators, too, need help understanding IP’s role and history.

 


IP is for Everyone

There are many animations available that explain IP’s importance to children, but employees, investors, teens, law enforcement professionals, parents and educators, too, need help understanding IP’s role and history. “What is intellectual property? Why should I care?” endeavors to help.

To learn more about IP or identify materials and activities right for different audiences, please contact CIPU at administration@understandingip.org

For a link to the the IP CloseUp YouTube Channel that can be shared, go here: https://www.youtube.com/channel/UCZk165UL2V8fNiJjVcQtnmQ

 

 

Image source: understandingip.org; the Center for IP Understanding 

Expanded ‘IP CloseUp 30’ stock index features four new categories

Publicly traded patent licensing companies have significantly under-performed market indexes. Only a few of the original listed stocks remain. 

The IP CloseUp 30, a feature of this blog first published in 2013, was designed to provide IP investors a real-time snapshot of public patent licensing company performance and news.

Loss of patent certainty and value have made licensing less interesting to current equity investors. For that reason, the IP CloseUp 30 is evolving. It will be known as the IP CloseUp 50, and include several new categories of publicly traded, IP-focused businesses, including those that engage in brand and content licensing and defensive strategies.

The IP CloseUp 30 index is build on a Yahoo! Finance screen of earnings and other financial information —  stock price and market capitalization, as well as real-time news developments. It gives IP investors a efficient way to track relative performance of selected companies. For those observers more dubious about the sector, but who are interested in keeping tabs on certain patent holders, it provides a method of tracking potential threats.

Evolving Universe

When I coined the acronym, PIPCO, six years ago, it referred to an expanding sector of public companies whose primary source of revenue was patent licensing and, by default, litigation. At the time patent values and damages were much higher and many respectable non-practicing entities (NPEs) held promise. Yet to be felt were the full impact of the America Invents Act, passed in 2012, and the effects of several major court decisions affecting injunctive relief and patent eligibility.

Leading Brands Category

The IP CloseUp 50 is an alternative method for investors to track the influence if not impact of intellectual property. It introduces a larger context for considering IP performance. Patent monetization remains a viable business model for some owners, but perhaps for most businesses, less so as a public one with the pressure to provide investors with quarterly results.

The IPCU 50 is far from definitive and will require that companies be added and removed as market and IP conditions warrant. PIPCOs were never intended to be just about patent licensing. When damages awards for mobile telephony (Motorola, Nortel, et al.) and other technologies commanded hundreds of millions if not billions of dollars, it was only natural for licensing companies to become a source or investor fascination. But even at their most active these PIPCOs rarely generated much daily volume or market capitalization.

Enter PIPCO 2.0

If investors have learned one thing over the past decade about public IP companies it is that they are not synonymous with patent licensing. It is true that performance measures like licensing, settlements and public awards are easier to follow than return on risk mitigation or brand equity. Licensing and litigation are simply more graphic, especially if big tech companies are paying out.

Think of the IPCU 50 as IP CloseUp 2.0. It represents the next iteration of IP investment perspective – companies better equipped to adapt and survive because of their nature of their IP assets and their size. It includes patent, trademark and content-focused operating businesses where licensing may play a role in performance. The index will still consider leading patent licensing companies, but scale back the number. (For now, the index will not consider trade secrets directly.)

To be sure, the IPCU 50 is a work in progress, destined to be refined, but, nonetheless, provocative and worthy of periodic scrutiny.

The new IP CloseUp 50 categories:

  • Patents – Technology
  • Patents – Pharmaceuticals
  • Trademarks – Leading Brands
  • Media & Content Owners (Copyright)
  • Primarily Patent Licensing

Fuller Grasp

Using IP rights to mitigate risk and maintain market share is not new. Nor is brand or content licensing. In principle, using IP rights defensively does not necessarily diminish their significance. It is true that specific tech patents typically mean more to small businesses and individuals than to established players who can rely on other resources like brand equity and their ability to raise capital, and are unlikely to enforce infringed patents. A fuller grasp of what different types of IP mean to various businesses can quickly turn a seller into a buyer (and vice versa).

With some 85% or more of S&P 500 company value tied up in intangibles assets such as IP rights, shareholders need to be better informed about the use of and return on IP (call it, ROIP) and their role in performance. Questions investors should be asking, even if senior management and equity analysts are reluctant to:

  • Which are the most IP-rich businesses?
  • What rights do they own?
  • How are they being used?
  • What is the relationship of their IP to performance and shareholder value?

 

Work in Progress

To be meaningful the IP CloseUp 50 must change to reflect IP value and investor need. The businesses were initially selected by an informal panel of experts. We will do our best to accommodate requests to add or delete companies. The index is designed to render performance of IP-rich companies somewhat more transparent and easier to follow.

The IP CloseUp 50 looks at top public IP holders primarily by:

 

  • Size, type and quality of IP portfolio and assets
  • Enterprise market value (typically >$500M)
  • Innovation reputation

For further explanation of the five sections and criteria for inclusion, visit the IP CloseUp 50 landing page, here. Consider bookmarking it or placing it on your home screen or desktop.

 

Image source: yahoo! finance; ipcloseup.com

Convergence is creating new value; IPBC Europe in Paris to explore

The fourth industrial revolution (4IR) presents new challenges and opportunities for European companies.

4IR is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres collectively referred to as cyber-physical systems.

Traditional ways of creating value from intellectual property are becoming unsustainable and a more integrated approach to the management of assets is necessary. A good example is 5G, which is at the forefront of 4IR. (5G performance targets high data rate, reduced latency, energy saving, cost reduction, higher system capacity, and massive device connectivity.)

Golden Opportunity

The Intellectual Property Business Congress Europe, in Paris for 2019, will help IP executives to look beyond patents, trademarks and copyrights to ensure they are factoring trade secrets and proprietary data rights into their strategy.

Europe has a golden opportunity to lead the field in devising new IP strategies for the 4IR age, as well as defining the regulatory and policy environment. IPBC Europe will take place in Paris at the Les Salons Hoche, March 27-28.

Keynotes speakers are EPO Chief Economist Yann Meniere, Ericsson IPR and Licensing VP Mathias Hellman and 2018 Inventor of the Year, Stefano Sorrentino.

For the program, go here.

For the full list of speakers, go here.

IP CloseUp readers use code IPCU200 to receive a 200 Euro discount. 

To register, please visit this link.

Image source: avantex-paris.fr.messefrankfurt.com; events.ipbc.com

 

Taylor Swift relies on clout and class to secure a unique streaming deal for fellow musicians

“With great power comes great responsibility.”

Whether it was Voltaire or Peter Parker (Spiderman’s Uncle Ben) who said it does not much matter. The important thing is the those responsible for generating and using intellectual property – the coin of the realm –  believe it.

Taylor Swift is one of the best-selling music artists of all time. She has already generated more than 130 million streams. But her pop-star status belies her intelligence and vision.

Swift has famously blacklisted Apple for not paying musicians and removed her content from Spotify because of their paltry pay-outs until she got a better deal for musicians. Recently, Swift locked down a highly lucrative record contract with Universal Music Group’s Republic Records, while securing an unprecedented streaming deal for thousands fellow singer-songwriters on the UMG label.

One stipulation of Swift’s new contract states that if UMG sells any of its shares in Spotify, which went public in April, that money must be redistributed to the label’s artists and cannot be recouped. UMG’s 3.5% stake in Spotify has been valued at as high as $1 billion.

Historic Tumblr Post

Swift reportedly prioritized that artists rights over negotiating for ownership of her highly valuable old masters and a bigger cash advance. Largesse of this kind is unprecedented. Swift stated in Tumblr post:

I [also] feel strongly that streaming was founded on and continues to thrive based on the magic created by artists, writers, and producers. 

There was one condition that meant more to me than any other deal point. As part of my new contract with Universal Music Group, I asked that any sale of their Spotify shares result in a distribution of money to their artists, non-recoupable.

‘Non-recoupable’ means that if a recording artist owes UMB money as a result of a cash advance from the label (often the case with younger artists) the proceeds from the sale of Spotify stock cannot be used to pay down the debt. That cash (Swift’s contract states) is to be used expressly for the musicians, many of whom have been paid almost nothing for their Spotify streams while helping build the company’s market value, which has been as high as $35 billion.

Spotify executives have been cashing in some of their valuable shares – why not the musicians who helped to build that value?

She demanded that Apple make sure artists were
compensated 
during Apple Music’s free trials in 2015; and went on a
three-year boycott of Spotify over royalty payouts

IP behavior matters 

“Taylor Swift has been consistent her whole career about protecting the value of music copyrights not just her own,” said David Lowery, lead singer of Cracker and publisher of the Trichordist in the January IAM magazine, here. “IP holders and users both can learn something from her: protecting IP as a matter of principle lifts all boats.”

Swift’s strategy with UMG and Spotify, as well as Apple, is not for effect – it is genuine. Her vision of the future reflects a keen sense of history and an uncanny instinct for survival. Without a truly viable music industry, she suggests, everyone will suffer, even if a handful of top artists may prosper for a while.

For Swift, IP behavior matters. It begins by creating an environment conducive to quality and success.

Let us hope that her bold moves will not go unnoticed by those who generate and own inventions, authored works and other types of creative output. It’s a big IP world and we all have to live in it.

Image source: Irish Times; http://fr.fanpop.com

42% drop in writer income attributed to growth of new media, changing attitudes

Value associated with small content generators and copyright owners appear to be on a similar downward trajectory as independent inventors and patent holders. 

Decline in small book publishing and freelance opportunities for writers has resulted in a 42% decline in income for writers between 2017 and 2009.

The most comprehensive survey of writing-related income of U.S. authors ever conducted, recently published by the Author’s Guild, cites median pay for full-time writers as $20,300 in 2017; $6,080 for part-timers.

The findings included responses from more than 5,000 published book authors, across genres and including both traditional and self-published writers.

Fewer Opportunities

The decline in free-lance journalism and pay has meant less opportunity for authors who write for a living. Many of the best paying publications have dropped their rates or have folded. Content and copyright are increasingly the province of large providers like Conde Nast, whose own fortunes have been declining.

“The decline in earnings is also largely because of Amazon’s lion’s share of the self-publishing, e-book and resale market,” reported The New York Times. Amazon charges commissions and marketing fees for premium positioning, something smaller publishers cannot afford.

The Times quoted a source as saying the “The people who are able to practice the trade of authoring are people who have other sources of income.” This, the article said, creates barriers to entry and limits the types of stories that reach a wide audience.

Devaluation Crisis

“There is also a devaluation of writing in which it is often viewed as a hobby as opposed to a vocation.”

The Authors Guild calls the decline a ” crisis of epic proportions, especially for literary writers.”

SMEs and independent inventors take note: devaluation of creative output has not been limited to authored works.

What and how much audiences are willing to pay for intellectual property rights like patents have declined, as cheap or free-access has grown.

Some see it not only as an attitude towards authors, but as a strategy on the part of some content providers to cut costs and limit competition.

Amazon controls approximately 85% of the self-published market and so most self-published authors have no options other than to accept Amazon’s non-negotiable terms.

“Amazon,” says the Authors Guild, “but also Google, Facebook and every other company getting into the content business, devalue what we produce to lower their costs for content distribution, and then take an unfair share of the profits from what remains for delivering that reduced product.”

Among AG recommendations: “Publishers and self-published authors should be able to negotiate collectively with Amazon, Google and Facebook to equalize the bargaining power.”

For a summary of the Authors Guild survey findings and recommendations, go here.

For the full survey, go to the bottom of the page, here.

Image source: fairhaven.com; authorsguild.org

USTR warns of increasing attacks by China on US intellectual property, including cyber-attacks

A report released in late November the Office of the United States Trade Representative (USTR) states that China appears to be stepping up its attacks on U.S. intellectual property.

“China fundamentally has not altered its acts, policies, and practices related to technology transfer, intellectual property, and innovation, and indeed appears to have taken further unreasonable actions in recent months.”

Raymond Zhong in The New York Times reported that “something is unfolding right now that carries higher stakes than any other tech story on the planet.”

Zhong was referring to China having detained the third Canadian citizen in apparent retaliation for the arrest of Meng Wangzhou, a top executive at Huawei, the world’s leading maker of telecom networking equipment. Since, CFO Wangzho’s arrest, Canadian officials have reported that a total of 13 people have been arrested in China. Eight have been released.

It has been long speculated that Huawei’s products can be used for spying by the Chinese government.

The USTR report, released on November 20th, is called UPDATE CONCERNING CHINA’S ACTS, POLICIES AND PRACTICES RELATED TO TECHNOLOGY TRANSFER, INTELLECTUAL PROPERTY, AND INNOVATION.

“In the USTR report the U.S. accused China of continuing a state-backed campaign of cyber-attacks on American companies that were both intensifying and growing in sophistication,” Bloomberg News reported.

Chinese Claims

In response to questions about the report, a spokesman for China’s foreign ministry on Wednesday said U.S. officials should read a white paper published by the government in September that claims China ‘firmly protects’ intellectual property rights.

On August 18, 2017, the Office of the U.S. Trade Representative (USTR) initiated a Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. 3

On the date of initiation, USTR requested consultations with the Government of China concerning the issues under investigation.4 Instead of accepting the request, China’s Ministry of Commerce expressed “strong dissatisfaction” with the United States and decried the investigation as “irresponsible” and “not objective.”5

The primary four points of the report (IPCU’s boldface):

1. China uses foreign ownership restrictions, such as joint venture (JV) requirements and foreign equity limitations, and various administrative review and licensing processes, to require or pressure technology transfer from U.S. companies.

2. China’s regime of technology regulations forces U.S. companies seeking to license technologies to Chinese entities to do so on non-market based terms that favor Chinese recipients.

3. China directs and unfairly facilitates the systematic investment in, and acquisition of, U.S. companies and assets by Chinese companies to obtain cutting-edge technologies and intellectual property and generate the transfer of technology to Chinese companies.

4. China conducts and supports unauthorized intrusions into, and theft from, the computer networks of U.S. companies to access their sensitive commercial information and trade secrets.7

“Further Unreasonable Actions”

The USTR report concluded: “China fundamentally has not altered its acts, policies, and practices related to technology transfer, intellectual property, and innovation, and indeed appears to have taken further unreasonable actions in recent months.

“USTR intends to continue its efforts to monitor any new developments and actions in this area.”

The full report can be found here.

Since 2014 Chinese venture capital investment in the U.S. totals $31 billion. The report cites analyst that estimate “Chinese investors participated in 10-16% of all venture deals in the United States between 2015 and 2017.”

Image source: USTR Update

 

IP CloseUp surpassed 200,000 views in 2018

In 2018, IP CloseUp broke though the 200,000 view level, generating a total of 207,868 on 373 posts since it was first published. 

Among the most popular posts for 2017:

By far the most read post on IPCU is Kearns’ son still fuming over wiper blade fight”. Since 2014 it has generated 77,844 visits.

In 2018 IP CloseUp was read in more than 100 countries. Since 2015 IPCU has generated 154,653 views.

IP CloseUp has been rated by Feedspot among the top-fifty IP blogs. It began publication as IP Insider in 2011.

To receive IP CloseUp weekly follow @IPCloseUp, connect to LinkedIn via publisher Bruce Berman or by subscribing at the right of this page under the Franklin Pierce tile.

 

Image source: ipcloseup.com

Et tu, TechCo? Some potential patent licensees should be outed for abusive behavior

What is the appropriate response to a legitimate request for patent licensing?

If you are an information technology company comfortable taking full advantage of confusion in the patent system, and unfettered by business ethics, it may be tossing the offer in the garbage can — just because you can.

Can a business simply ignore a reasonable licensing offer or does it have an obligation, ethical or otherwise, to take seriously a reasonable request to consider a license to an invention it requires or may already be using?

For an executive at one inventor-owned business, Personalized Media Communications, being totally ignored when a legitimate request to discuss a patent license is presented is an abusive practice and a threat to innovation that must be stopped.

The Real Issue

“Too often, this abusive behavior is conflated with ownership models to deflect attention from the real problems,” said Aaric Eisenstein, VP Licensing Strategy. “PR efforts targeting ‘trolls’ have warped stories of threats to mom & pop businesses to cast large companies as the equally helpless victims of these ruthless predators… the real issue is abusive behavior, and that’s what needs to be targeted…

“The responsibility for ending abuse rests not only with the Patent Office and the federal courts but also with the stakeholders in the patent system themselves. The stakeholders cannot simply complain and lobby for one-sided solutions. They must work together to improve the system upon which they all depend.

“The responsibility for ending abuse rests not only with the Patent Office and the federal courts but also with the stakeholders in the patent system themselves.”

“Following these rules eliminates both problems: skimpy-to-ridiculous notice packages and throwing legitimate packages in the trash.  It doesn’t matter whether the companies are large or small or whether they’re direct operating competitors or have completely different ownership models. The critical point is that these standards are targeted to prohibit abusive behavior per se

“The US patent system was the envy of the world for generations.  It can be again if we’re honest about its shortcomings and address them in direct and balanced ways.”

The TROL Act in the House of Representatives reintroduced legislation with apparent bi-partisan support that would give the Federal Trade Commission and the state attorneys general authority to issue civil penalties up to $5 million for sending misleading or bad faith letters demanding patent licenses.

There is no indication that penalties will also be instituted for bad faith on the part of businesses that ignore legitimate offers to license good patents, forcing owners to file suit.

Eisenstein is grateful to USPTO Director Andrei Iancu for having “reminded patent system stakeholders what US inventors have given the world and the right way to enhance the system.”

For the full article, go here.

Image source: seapine.com

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