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B LAW 341

BUSINESS
LAW I
SECTION 005
INTRODUCTION TO
CONTRACTS,
Innovation
LIABILITY ISSUES &
INTELLECTUAL
Protection
PROPERTY
TOPIC OUTLINE
I. Trade Secrets
A. Qualifying Information
B. Misappropriation
II. Patents
A. Owning a Patent
B. Patent Infringement

2017 Daniel R. Cahoy


INVENTION
We give an incentive to invest by giving inventors the
right to be free from competition for a limited time
Patents

From competition to republication, the next step of TS is patents.

Patents are often worth nothing.90% patents are worthless.


It is starting point. Gotta make it practical. You gotta disclose it to
the public.
Go to this govern web.

A phone made from a ceramic. Patent by Apple. Foldable device.

Apple has some powers over it if it works out.


Mercade: use patent as the Ad

2017 Daniel R. Cahoy


TYPES OF PATENTS

2017 Daniel R. Cahoy


PROTECTING FUNCTIONAL
INFORMATION
Utility Patents
Useful inventions
Solve some problem
Entirely federal law
Granted by United States Patent & Trademark Office
Long and complex process
Rights only exist if PTO agrees
You are entitled to a patent unless:
1. Patentable Subject Matter
2. Not new
3. New, but obvious
4. Not useful (including that it doesnt work)

2017 Daniel R. Cahoy


WHAT SHOULD BE PATENTABLE?
Traditionally excluded categories
Natural phenomenon
Laws of Nature and mathematical algorithms
Abstract ideas

Not in the patent statute but said by the court.


Cant let people let capture. Preempt or rape other
innovation.
Computer software: algorithm.
Maybe or maybe not. Depends whether u do with the
info.

2017 Daniel R. Cahoy


ALICE V. CLS BANK, 134 S.CT. 2347
Alice Corp owns patents for mitigating settlement risk
(2014)
(potential only one party to a financial exchange pays)
Maintaining a shadow record of accounts at banks
Ensuring only funded transactions are allowed
Method, system and software medium
Prior Fed. Cir. decision produced multiple opinions
Preemption drives abstract exclusionary principle
But could swallow all of patent law

Alice two-step introduced


1. first determine whether the claims at issue are directed to a
patent- ineligible concept
2. next consider the elements of each claim both individually
and as an ordered combination to determine whether the
additional elements transform the nature of the claim into a
patent-eligible application.

2017 Daniel R. Cahoy


2017 Daniel R. Cahoy
BAD PATENTS, NOVELTY AND
OBVIOUSNESS
Most of the cases of ridiculous patents are resolved by
invention restrictions
Novelty
Its new if you filed first
Didnt steal it from another
And no one but you disclosed before you filed
You still have one year to disclose and file
Obviousness
Would one of ordinary skill in the art find the invention obvious when filed?
The PTO makes mistakes, but you can get rid of bad
patents
Invalid in litigation
Reexamination or post-grant

2017 Daniel R. Cahoy


PATENT EXCLUSIVE RIGHTS
Patents grant right to exclude others from
Making
Using
Selling or offering to sell
Importing
Your invention during the patent term
20 years from filing date (minus exam time)
Once patent expires (or patent is deemed invalid)
Everyone can use it
One product may be covered by multiple rights

2017 Daniel R. Cahoy


OVERLAPPING RIGHTS

2017 Daniel R. Cahoy


PATENT EXCLUSIVE RIGHTS
Patents grant right to exclude others from
Making
Using
Selling or offering to sell
Importing
Your invention during the patent term
20 years from filing date (minus exam time)
Once patent expires (or patent is deemed invalid)
Everyone can use it
One product may be covered by multiple rights
Licenses necessary

2017 Daniel R. Cahoy


PATENT INFRINGEMENT
Violation of patentees right to exclude others from
making, using, selling, etc.
Compare patent claims to infringing product
Damages possible
Injunction possible
But not automatic

2017 Daniel R. Cahoy