Posts in Business

Ray Young started RightsLedger.com to give creators control of their content and opportunities for IP monetization, using blockchain technology to authenticate ownership. His latest venture, Milio.io, is the first social media platform to fairly share advertising revenue with users, and already has over a million users. Young spent over two years, since Dec 2019, in Manila working on the company’s launch and is focused on rewarding small and independent content creators with the ability to both protect and monetize their IP. I spoke with Young to better understand how he is helping creators to safeguard and profit from their content online.

Summer has been historically associated with celebrating the enactment of the Trademark Act of 1946 (the “Lanham Act”). Accordingly, Congress now annually introduces resolutions celebrating July, along with Independence, as “anti-counterfeiting awareness month.” These non-binding resolutions are an important reminder of the national importance of trademarks—and a reminder that counterfeiting, and related bad faith trademark misconduct, negatively impacts U.S. small businesses, American jobs, the U.S. economy, and erodes our international competitiveness. Increasingly, brand owners are fighting numerous trademark issues around bad faith registrations and more artful counterfeiting every day of every month. Fortunately, one important element of the solution for restoring the integrity of the register are the tools made possible by responsible artificial intelligence and machine learning (AI/ML) image recognition technology that can fight the fakes.

Recently published research conducted by Vital Transformation shows legislative provisions similar to those found in the Inflation Reduction Act of 2022, which allows the U.S. Government to “negotiate” drug prices under a set framework based upon the amount of time a drug has spent on the market, would have significant, negative effects on patient access to new therapies because funding would be severely curtailed for research and development. According to Vital Transformation, the reduction of net earnings due to government price fixing would substantially reduce the amount of research and development of small biotech firms, which would negatively impact future drug discovery and development. The model used in the study estimates that with government price fixing “only 6 of 110 previously approved therapies would be considered ‘not at risk’ of being cancelled, or at very least divested.”

One of the most frustrating questions I get from clients asks “what is the difference between ‘confidential’ and ‘proprietary’ information?” Or, “how do I help employees distinguish between either of those terms and real ‘trade secrets?’” Then there are people, including some judges, who trivialize the importance of some useful business information by saying it doesn’t “rise to the level of a trade secret.” That last one makes no sense these days, as we’ll see shortly. But first let’s identify the source of this nomenclature problem: it’s an outfit you’ve probably never heard of called the American Law Institute.

With the advent of augmented reality systems, unique opportunities exist for retail businesses. The ability to provide dynamic and layered advertisements can add a new dimension and effectiveness to attracting consumers to a brick-and-mortar retail location. However, a number of intellectual property pitfalls appear to be awaiting those retailers that utilize the emerging augmented reality platform to reach and attract customers. For instance, a retailer may find that they do not own the exclusive rights to display augmented reality content to customers despite the customers being physically present in their own store.

Corporate espionage is as old as the day is long. The modern digital world has made it easier than ever to gain access to sensitive “secret sauce”, such as software, customer and vendor lists, business methods, techniques, formulas and recipes. With a significant shift to a remote working environment and the relative ease of employee portability, protecting and defending confidential information and trade secrets must be at the top of the priority list for any organization. In May 2022, in Appian v. Pegasystems, a jury awarded likely the largest sum in the history of Virginia state court proceedings, finding that Pegasystems was liable for $2 billion-plus in damages to Appian for planting a corporate spy at Appian for over 10 years…. While the facts of the Appian case are not particularly unusual, the measure of damages is quite stunning.

A company’s knowledge of IP trends and its own internal IP strategy is crucial to a wide range of issues the company may face—including litigation, business expansion, and retaining its talent. Being prepared for IP issues your company may face externally, as well as developing a strategic plan internally for your company’s IP portfolio, will better position your organization on multiple fronts. Below are 10 reasons your company should pay attention to these IP trends.

A small business owner is suing Meta Platforms, Inc., formerly known as Facebook (Facebook), accusing the internet giant of “brazenly violating fundamental intellectual property rights enshrined in U.S. law to obliterate a small business.” METAx, LLC (Meta) was founded in 2010 by Justin “JB” Bolognino, who is described in the complaint filed in the U.S. District court for the Southern District of New York, as a respected figure in the virtual creator community and “a true pioneer of the industry involving immersive and experiential technologies, including augmented reality (“AR”), virtual reality (“VR”), and extended reality (“XR”).” Meta has continuously used the term “META” as part of a composite mark, and has been commonly referred to as Meta in trade and commerce, since 2010.

“The nine most terrifying words in the English language are: I’m from the Government, and I’m here to help,” said President Ronald Reagan during a press conference on August 12, 1986. This is one of President Reagan’s most often quoted quips, and for a reason. The Government can certainly help people in times of need, but it can also be a scary bureaucracy, particularly when it shows up unannounced and uninvited. Fast forward 31 years and the 12 most terrifying words in the English language for any business should be: “I’m from China, and my company would like to partner with yours.”

During the last Presidential campaign, then candidate Biden famously promised to end fossil fuels. True to his commitment, President Biden has attempted to make the oil and gas industry less attractive to both corporations and investors. Unfortunately, clean energy is not ready as a solution for 21st century economies. But if the Biden Administration does want an alternative energy future, it better figure out how to fix a broken American patent system where virtually nothing is patent eligible, and it better also figure out how to keep the United Nations and developing countries from stealing proprietary rights of innovators. On the heels of the Biden Administration siding with developing nations in their effort to appropriate vaccine technology, UN Secretary-General Antonio Guterres is calling for all intellectual property on clean energy technologies to be busted, and the innovations handed over to developing nations for free.

There are not many trademark cases that are of equal interest to high fashion, the art world and cutting-edge tech. The ongoing “MetaBirkin” lawsuit is unusual, however, in that it involves a designer brand and two of the latest, trending topics – non-fungible tokens (NFTs) and the metaverse. In a case that has bagged global attention, luxury design house Hermès is suing artist Mason Rothschild in New York for trademark infringement and dilution, misappropriation of its BIRKIN trademark, cybersquatting, false designation of origin and description, and injury to business reputation.

Today, many companies make the business decision to infringe patented technology instead of paying a royalty to license it—so called efficient infringement. The calculation is that it will ultimately be less expensive to ignore the patent rights of innovations than to take a license in an arm’s length negotiation. Over the last 15 years, that calculus has largely proven correct, with changes to numerous laws and the introduction of additional administrative processes all conspiring to make it easier to challenge issued patents. This means that litigation is often the only way for an innovator to protect valuable intellectual property and to stop infringement. Unfortunately, lacking leverage and financial resources, many patent owners cannot stop infringement—in some instances, even after a jury trial.

Earlier this month, e-commerce giant Amazon.com issued its latest Brand Protection Report detailing steps taken by the tech titan to reduce the tide of counterfeit products being sold to consumers around the globe. While the report identifies several concrete steps taken by Amazon to prevent knock-offs from being listed for sale, there are plenty of questions that yet remain as to whether Amazon is genuinely committed to eliminating sales of fake branded products that the company has been known to ignore.

At this moment, there is a fellow riding a bus in London who will determine the fate of your secrets. To be more precise, he’s on the Clapham bus; but he has no name. In fact, he’s a fictional character originally imagined by 19th Century journalist Walter Bagehot, who thought that “public opinion” was best described as the “opinion of the bald-headed man at the back of the omnibus.” The idea was picked up by the English courts as a metaphor for the “reasonable person” standard that is applied in all sorts of cases, from criminal to personal injury to contract interpretation. It also has special application to trade secrets, which we’ll get to in a minute.

Following a week of round-the-clock deliberations, the World Trade Organization (WTO) this morning announced a deal on waiver of IP rights for COVID-19 vaccine technologies under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). The final text has made almost no one happy and largely mirrors the draft text going into negotiations, with a few key changes. With respect to open questions in the draft text, the final agreement indicates that all developing country WTO Members will be considered eligible to take advantage of the waiver, but that those with “existing capacity to manufacture COVID-19 vaccines are encouraged to make a binding commitment not to avail themselves of this Decision.” This language is primarily targeted at China, which has publicly stated that it would not use the waiver provision but had objected to language based on percentage of global vaccine exports that would have categorically excluded it. The draft text had encouraged members with vaccine export capabilities to opt out rather than to make a binding commitment.