Posts in Guest Contributors

World Intellectual Property Indicators 2014: Design Patent Highlights

In 2013, 647,300 industrial design registrations were filed – a 6.4% drop from 2012. The decline in global registrations stems primarily from the slow-down of Chinese manufacturing, which produced 12% fewer registrations than the previous year. After seven years of consecutive growth, 2013’s global registrations of 919,100 designs represents a 3.3% decrease from 2012. In 2013, upwards of three million industrial design registrations were in force.

5 Essential Tips to Align Your IP Portfolio with Your Corporate Strategy

In a survey by IQPC (International Quality and Productivity Center) 52% of corporate respondents cited failure to align business strategy with IP coverage as one of the key risks to their company’s IP assets. It’s especially shocking when you know that the “top patents,” patents that are valuable because they have a commercial value (or will in the near future) are limited to 15% of a company’s patent portfolio.

Federal Circuit Should Reconsider Ariosa v. Sequenom: The Panel Decision Threatens Modern Innovation

As the amici correctly argue, the panel’s decision striking down Sequenom’s noninvasive prenatal test strikes at the very heart of the patent system. Revolutionary diagnostic testing methods that cost tens of millions of dollars to produce should be the flagship of the modern patent system. But the panel’s misapplication of Mayo calls into doubt many meritorious inventions that benefit us all. Moreover, the panel’s reasoning simply cannot be squared with several innovations that the Supreme Court has historically upheld as proper statutory subject matter. Hopefully the entire Federal Circuit will agree to take up this important case so that vital innovations such as Sequenom’s patented method continue to be produced.

USPTO Decision to Disclose Unpublished Patent Application is Judicially Reviewable

The Federal Circuit held that the structure and language of §122(a) indicate that Congress intended the exceptions to confidentiality to be narrow and reviewable. §122(a) contains two portions: a mandatory clause follows by two exceptions. The word ‘shall’ in the first portion of the provision made it mandatory for the PTO to maintain the confidentiality of patent applications. In addition, the word ‘necessary’ in the first exception indicated a narrow exception and afforded the agency no discretion. In light of this, coupled with the language of the second exception, the Court concluded that the PTO’s determination of “special circumstances” in the second exception is reviewable.

CAFC overturns jury verdict, patent obvious because prior art would yield a predictable result

Applying KSR, the Federal Circuit concluded that combining elements from the cited prior art would have yielded a predictable result, namely the system fan would activate periodically following the end of a heating or cooling cycle as claimed in the ‘017 patent. The Court further found motivation or rationale for combining the references in the nature of the problem addressed. The Federal Circuit also rejected ABT’s arguments regarding the objective evidence of nonobviousness, namely commercial success and long felt need.

Third-Party Use of Similar Marks Relevant to Strength of Opposer’s Trademark

The Federal Circuit explained that evidence of third-party use bears on the strength or weakness of an opposer’s mark. In this case, which arose as an appeal from the TTAB, the evidence demonstrated“ubiquitous use of paw prints on clothing as source identifiers. According to the Federal Circuit, given the widespread use of paw prints, consumers would know to look for additional indicia of origin rather than just the paw designs. The evidence, therefore, demonstrated that consumers are not as likely confused by different, albeit similar looking, paw prints.

Genuine Use: How much use is ‘genuine use’ in the European Union?

When an undertaking operates in more than one country of the European Union it is a wise legal choice to apply for a trademark on a community level. A community trademark allows the applicant to file for a trademark within 28 countries of the European Union instead of the expensive and time consuming method of independent national filings for each country. The downside of the Community trademark application is with respect to satisfying the requirement of genuine use in connection with goods and services. Within 5 years of trademark registration the mark must be used in more than one country of the European community. In Sofa Workshop Limited v. Sofaworks Limited, the judgment elucidated upon the term “Genuine Use” in respect of trademarks and the territory covered by them.

Looking Down on the Patent System from the Ivory Tower

The patent system is not a tool for entrenched interests to stifle competition, as so many professors seem to believe. Patents allow independent inventors and small companies to compete against better funded rivals, who would otherwise simply take away their inventions. Sadly, many publications, including The Economist, base anti-patent articles on the ill-conceived notions of academics. Alas, perhaps one reason our nation is in such distress is that so many policies are based on recommendations from those without any practical experience.

Are Patents Getting Their Mojo Back?

After a 13% decrease in patent litigation in 2014, we are currently back to the same level of activity that we saw historically, with 2015 shaping up to have an average of circa 5000 new cases. Now the REALLY interesting data point is that most cases (roughly 70%) were brought this year by an operating company… Although the pendulum has by no way stopped its course and there are still many forces at work that wish to push it to swing even further, its momentum has definitely slowed.

The Case that Launched 10,000 Patent Suits

The Polaroid-Kodak dispute involved patents covering instant photography, which at the time was among the most valuable technologies. It was the case that launched 10,000 patent suits, many by non-practicing entities. But as one observer pointed out, by the end of the long dispute, the Polaroid-Kodak battle was “little more than two aging giants dueling on the decks of the Titanic.” Digital photography would soon eclipse instant photography, and both litigants were on the road to insolvency.

ITC Has Jurisdiction Over Allegations of Induced Infringement of Method Claims

Reversing the panel en banc, the Federal Circuit found that the ITC does have jurisdiction to issue an exclusion order predicated on induced infringement. Under Chevron step two, the Court deemed that the ITC’s interpretation of Section 337 was reasonable because it was “consistent with the statutory text, policy, and legislative history of Section 337,” as “Section 337 contemplates that infringement may occur after importation.” Further, the panel’s interpretation of Section 337 would unnecessarily “eliminate relief for the unfair trade act and induced infringement” by allowing foreign entities “to circumvent Section 337 by importing articles in a state requiring post-importation combination or modification before direct infringement could be shown.”

Federal Circuit affirms rejection of trademark for refusal to disclaim descriptive term

The Federal Circuit affirmed the TTAB, noting that substantial evidence supported the TTAB’s findings. Where, as here, the disputed term is highly descriptive, the TTAB acted within its discretion in refusing to accept evidence of five years’ use as prima facie evidence of distinctiveness.

Federal Circuit affirms finding of no indirect infringement software provider

JVC is a member of two licensing pools for optical disc technology, one for DVD and one for Blu-ray. The asserted patents are included in both pools. The district court adopted JVC’s position that the asserted patents are essential to the licensed DVD and Blu-ray optical discs. Given the patent pool and licensing program, which covers any and all optical disc structures and uses that are essential under the patents, only the use of unlicensed optical discs would be an infringement – regardless of any third-party software used to manipulate the discs. JVC did not argue, and no evidence of record established, that unlicensed discs should be attributed to Nero, or the patent pool license should not encompass discs and end-users that implemented the Nero software.

Akamai v. Limelight: Defendant may directly infringe where steps performed by a third party

The en banc Court reversed the previous panel, and expanded the circumstances under which an alleged infringer may be liable under §271(a). In addition to circumstances identified by the panel, liability may arise if “an alleged infringer conditions participation in an activity or the receipt of a benefit upon performance of a step or steps of the patented method, and establishes the manner or timing of that performance.” When that standard is satisfied, the actions of a third party may be attributed to the alleged infringer, who thereby directly infringes under §271(a), even though there was no “mastermind” acting though a formal agent.

Sky is still blue for Skype trademark in Europe

In the decision dated 5th May, 2015, the General Court of the European Union concluded, upon examining the opposition by British SKY Broadcasting Group Plc (now SKY International) against Skype Ultd, that there is an existence of likelihood of confusion between the prior registered mark, “SKY” and the applied mark, “SKYPE” preventing the registration of the sign, SKYPE, in the European community.