What

are Patents? Patents in CIS Software Patent Debate

Pro

Patents Con Patents

Current Q

Events

&A

patent is an intellectual property right granted by the Government of the United States of America to an inventor. Excludes others from
making, using, offering

Source: http://www.uspto.gov/patents/index.jsp

for sale, selling the invention throughout the United States importing the invention into the United for a limited time.

 Utility

patents may be granted to anyone who invents or discovers any new and useful process, machine, article of manufacture, or composition of matter Design patents may be granted to anyone who invents a new, original, and ornamental design for an article of manufacture Plant patents may be granted to anyone who invents or discovers and reproduces any distinct and new variety of plant.
Source: http://www.uspto.gov/patents/index.jsp

 Software
"patent

Patent

on any performance of a computer realized by means of a computer program

Example:
"System

and method for influencing a position on a search result list generated by a computer network search engine Patent- filed by GoTo.com Goto.com sued Google for using a service called Adwords where companies could bid on appearing at the top of a search engine GoTo.com won!

 Exclusivity
Provides

the patent owner with the legal right to stop others from making, using, or selling the patented (i.e. claimed) invention and the right to collect damages for any such unlawful activity so long as the patent (i.e. claims) is not found invalid

Competitive
Prevent

Advantage

competitors from simply copying or reverse engineering the invention and thereby appropriating those R&D efforts for their own Source: Choksi, Bereskin & Parr; Website: http://www.ieee.ca/canrev/canrev32/choksi.pdf benefits

 Publicity
Valuable

for generating interest and investment in new and growing businesses may be licensed to other parties allowing these parties to exploit the invention in exchange for royalty payment

Licensing
Patents

Source: Choksi, Bereskin & Parr; Website: http://www.ieee.ca/canrev/canrev32/choksi.pdf

 Motivates

inventors Stimulates investment Can increase the value of companies Provides companies with a legal standing
NTP

suit against Research in Motion Lodsys suit against Smartphone application

http://

 Patent

Trolling Are They Inventions? Less Innovation

Anatomy of a Patent Troll

Buy patents Sue companies Profit!

Why East Texas?

Favorable juries Rocket docket All attorneys eligible

Remember the criteria:

Trivial Patent Example

A method for enabling a remote user to preview a portion of a pre-recorded music product from a network web site containing pre-selected portions of different prerecorded music products, using a computer, a computer display and a telecommunications link between the remote user's computer and the network web site, the method comprising the steps of (Patent 5963916, 1996)

Patentable subject manner Novel Useful Non-obvious (see example)

Should software qualify? Business methods? Rules are in flux

 Software

builds modularly Discourages start-ups Cost of playing the game Patent troll threats Patent portfolio arms race Governmental delays Video: http://youtu.be/TYbDfo4q5pw

United States Patent Office Internal Issues

Patent

Backlog 3 years to get patents processed

So what does poor patent quality mean? An innovator could go out of business in the time it takes to get patents approved. Their invention could be outdated by the time it is patented. They can make no money off their product. Less innovators mean: Less Jobs More Outsourcing Further Economic Collapse

Q&A