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NCKU CSIE 2015 Spring
F723000@65105
Startup and Innovation in IT Industry
Class #17 發明與專利ABC
陳志光 Matt
TSMC公司律師
2015/06/17
...
Intellectual  Property  Fundamental  for  
Start  Up  
Patent  and  Trade  Secret
陳志光
June  17,  2015
IP  Rights  Overview
IP  Right What  It  Protects
PATENT INVENTION
COPYRIGHT EXPRESSION
TRADEMARK BRAND  REPUTATION
TRADE ...
IP  Rights  Overview
http://www.slideshare.net/ChrisNeumeyer/trade-­secret-­protection-­in-­taiwan
Patent  v.  Trade  Secret  
• Patent:
– A  limited  monopoly  (exclusive  right  to  make,  use,  sell,  
offer  for  sale...
Patents
• Theory  
• Subject  Matter
• Prosecution
• Exclusive  Rights
• Infringement
• Remedies
Patents:  Theory
• Patent  protects  new and  useful inventions
• Bargain  between  government  and  inventor  
– Governme...
Patents:  Subject  Matter
• Utility  Patents:  any  new  and  useful  (35  U.S.C.  §101)
– Process;;  Machine;;  Manufactu...
Patent:  Ownership
• Inventor  /  Assignor:  who  gets  the  idea
• Patentee  /  Assignee: who  owns  the  patent  right
•...
Patents:  Subject  Matter
• Ineligible  Subject  Matter:
– Abstract  Ideas
– Laws  of  nature
– Mathematical  formulas
– N...
Patents:  Prosecution
• First  to  Invent  v.  First  to  File
Patents:  Prosecution
• U.S.:  
– Before  March  16,  2013:  First  to  invent
– After  March  16,  2013:  First  Inventor...
Patents:  Prosecution
• U.S.  Patent  and  Trademark  Office  (USPTO)  requires
– Novelty  (35  U.S.C.  §102)
• Prior  Art...
Patents:  Exclusive  Rights
• Rights  to  exclude  others  from
– Make  within  the  U.S.
– Use  within  the  U.S.
– Sell ...
Patents:  Infringement
• Types  of  Infringement  (35  U.S.C.  §271)  
– Direct  Infringement:  make,  use,  sell,  offer ...
Patents:  Remedies
• Injunction  Relief:  forbidding  future  infringement  
– Easy  to  get  for  competitors
– Not  easy...
Trade  Secrets
• Definition
• Misappropriation
• Remedies
• Considerations
Trade  Secrets:  Definition
• TRIPS  Agreement,  Part  II,  Sect.  7:  Protection  of  
Undisclosed  Information,  Art.  3...
Trade  Secrets:  Definition
• Unif.  Trade  Secrets  Act  (UTSA)  § l(4)
– A  trade  secret  is  any  information,  includ...
Trade  Secrets:  Definition
• State  law,  NOT  Federal  law
– Statute:  Each  state  varies  but  similar
– Cases:  May  ...
Trade  Secrets:  Definition
• Examples:  
– Plans  or  designs  of  products
– Manufacturing  process
– Customer  lists
– ...
Trade  Secrets:  Definition
• Trade  Secrets  v.  Know-­how
– Know-­how:  Information  that  enables  one  to  accomplish ...
Trade  Secrets:  Misappropriation
• UTSA  § l(2):  Misappropriation  "  means:  
– (i)  acquisition of  a  trade  secret  ...
Trade  Secrets:  Misappropriation
• Trade  Secret  arises  from  either  one  of  both  theories:  
– Tort  Theory:    Acq...
Trade  Secrets:  Remedies
• Injunction  
– irreparable  injury  and  
– inadequate  remedy  at  law  
– Easier  to  meet  ...
Trade  Secrets:  Considerations
• Reasonable  efforts  to  protect  secrecy
– Security  procedures:
• Mark  “confidential ...
Trade  Secrets:  Considerations
• Non-­Disclosure  Agreement  (NDA):
– To  protect  trade  secret  and  other  confidentia...
Trade  Secrets:  Considerations
• Non-­Solicitation  Agreement:
– Not  to  solicit  customers  of  the  company
– Not  to ...
Patents  or  Trade  Secrets  :  Considerations
http://blogs.orrick.com/trade-­secrets-­watch/2014/10/15/on-­obtaining-­and...
Patents  or  Trade  Secrets  :  Considerations
• Consider:
– Value  of  information  
– Cost  of  patent  filing  &  maint...
3131
Case  Study:  Apple  v.  Samsung
http://www.vanityfair.com/business/2014/06/apple-­samsung-­smartphone-­patent-­war
3232
Apple  v.  Samsungv.
• Apple’s  patent  claims
Sample  Design  Patents Patented  Design
U.S.  Pat.  No.  D593,087,  
...
3333
Apple  v.  Samsungv.
http://blog.thomsonreuters
.com/index.php/tag/ip/
3434
Apple  v.  Samsungv.
• Samsung’s  patent  claims
Sample  Patents Asserted
U.S.  Pat.  No.  6,928,604,  Turbo Encoding...
3535
Apple  v.  Samsungv.
3636
Apple  v.  Samsungv.
http://blog.thomsonreuters.com/index.php/tag/lawsuit/
3737
Apple  v.  Samsungv.
• On  remand,  the  district  court  granted  Apple’s  request  
for  preliminary  injunction  w...
3838
Apple  v.  Samsungv.
http://appleinsider.com/articles/11/09/16/samsung_files_patent_case_against_apple_in_australia
_...
3939
Apple  v.  Samsungv.
http://www.fosspatents.com/2013/09/german-­court-­dismisses-­apple-­lawsuit.html
4040
Intellectual  Property  
from  the  Start-­up’s  Perspective
Intellectual  Property    =        High  Cost  Services ...
4141
Outline
• Tip  #1  -­ Develop  an  IP  Strategy  Early  and  
Review  Regularly
• Tip  #2  – Allocate  IP  budget  wi...
4242
Set  IP  Benchmarks  and  Goals
• Goal:    Create  an  IP  Portfolio  that  is  relevant
1. Relevant  to  technology ...
4343
Consider  all  forms  of  IP
• Patent  – protects  new  and  useful  products  and  
processes
• Design  Patent  – pr...
4444
Form  a  plan
• At  a  minimum,  the  plan  should  include:
– Plans  for  a  patent  committee  that  meets  regular...
4545
Know  your  business
• Knowing  how  to  build  your  portfolio  depends  on  
your  business,  the  marketplace  and...
4646
Know  your  potential  investors
• Investor  interest
– Will  numbers  matter?
– Will  quality  matter?
– Will  juris...
4747
Understand  how  the  IP  will  be  used
• What  will  the  technology  and  IP  do?
– Support  a  proprietary  devic...
4848
Outline
• Tip  #1  -­ Develop  an  IP  Strategy  Early  and  Review  
Regularly
• Tip  #2  – Allocate  IP  budget  wi...
4949
Generating  a  Budget
• IP  can  be  core  value  of  start-­up  or  early  stage  
endeavor
• Budget  should  be  re...
5050
Avoid  narrow  focus  of  patents
• Building  a  portfolio  is  a  process  not  a  check  list
• Avoid  focusing  so...
5151
Avoid  short  cuts  and  detours
• Beware  of  perfunctory  provisional  patent  
applications
– Provisional  applica...
5252
Avoid  overspending  on  protection  in  non-­
relevant  jurisdictions
• Plan  for  international  filings,  avoid  l...
5353
Outline
• Tip  #1  -­ Develop  an  IP  Strategy  Early  and  Review  
Regularly
• Tip  #2  – Allocate  IP  budget  wi...
5454
Trademark  and  domain  name  searches
• Trademark  and  Domain  Name  searches  are  
relatively  cheap
• Secure  pr...
5555
Outline
• Tip  #1  -­ Develop  an  IP  Strategy  Early  and  Review  
Regularly
• Tip  #2  – Allocate  IP  budget  wi...
5656
Who  owns  the  IP?
• Make  sure  that  the  company,  not  the  employees  or  
principals,  own  the  IP.
• Protect...
5757
Outline
• Tip  #1  -­ Develop  an  IP  Strategy  Early  and  Review  
Regularly
• Tip  #2  – Allocate  IP  budget  wi...
5858
Disclosure  is  a  double-­edged  sword
• To  promote  your  idea  and  company,  you  have  to  
share  your  ideas ...
5959
What  to  do?
• Consider  early  filing  of  patent  application(s)
• If  early  filing  is  impossible  for  time/fi...
6060
Benefits  from  a  well  thought  through  
intellectual  property  plan
• Control  Costs
• IP  aligned  with  busine...
6161
Final  Thoughts
• IP  is  a  critical  aspect  in  the  growth  cycle  of  an  
early  stage  endeavor.
• IP  plan  s...
Questions?
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F723000_Class#17 發明與專利ABC 陳志光 (TSMC公司律師)

2015/6/17
NCKU CSIE F723000 第十七堂課
講者:陳志光律師

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F723000_Class#17 發明與專利ABC 陳志光 (TSMC公司律師)

  1. 1. NCKU CSIE 2015 Spring F723000@65105 Startup and Innovation in IT Industry Class #17 發明與專利ABC 陳志光 Matt TSMC公司律師 2015/06/17 姓名標⽰示─⾮非商業性─禁⽌止改作 本授權條款允許使⽤用者重製、散布、傳輸著作,但不得為商業⺫⽬目的之使⽤用,亦不得修改該著作。使⽤用時必須按照著作⼈人指定的⽅方式 表彰其姓名。
  2. 2. Intellectual  Property  Fundamental  for   Start  Up   Patent  and  Trade  Secret 陳志光 June  17,  2015
  3. 3. IP  Rights  Overview IP  Right What  It  Protects PATENT INVENTION COPYRIGHT EXPRESSION TRADEMARK BRAND  REPUTATION TRADE  SECRET VALUABLE  INFORMATION
  4. 4. IP  Rights  Overview http://www.slideshare.net/ChrisNeumeyer/trade-­secret-­protection-­in-­taiwan
  5. 5. Patent  v.  Trade  Secret   • Patent: – A  limited  monopoly  (exclusive  right  to  make,  use,  sell,   offer  for  sale,  and  import)  in  exchange  for  publicly   disclosing  information • Trade  Secret: – Confidential  information  from  which  the  owner  derives   an  economic  benefit  by  preventing  it  from  being   publicly  known   • Patent  v.  Trade  Secret: – Mutually  exclusive       – Alternative  protection
  6. 6. Patents • Theory   • Subject  Matter • Prosecution • Exclusive  Rights • Infringement • Remedies
  7. 7. Patents:  Theory • Patent  protects  new and  useful inventions • Bargain  between  government  and  inventor   – Government  grants  limited  monopoly  in  exchange  for  disclosure  of   invention  to  the  public   – Meant  to  encourage  innovation   • Constitutional  Basis:  Article  1,  Section  8 – “The  congress  shall  have  power…  To  promote  the  progress  of   science  and  useful  arts,  by  securing  for  limited  times  to  authors  and   inventors  the  exclusive  right  to  their  respective  writings  and   discoveries.”   – To  promote  the  progress  of  science  and  useful arts – exclusive  right – limited  times   – discovery  (new)
  8. 8. Patents:  Subject  Matter • Utility  Patents:  any  new  and  useful  (35  U.S.C.  §101) – Process;;  Machine;;  Manufacture;;  Composition  of  matter     • Design  Patents:  non-­functional  aspects  of  a  product  design – User  Interface – ICON • New  Models:   – Not  in  U.S.
  9. 9. Patent:  Ownership • Inventor  /  Assignor:  who  gets  the  idea • Patentee  /  Assignee: who  owns  the  patent  right • Invention  made  on-­duty  (職務發明) – Inventor:  Declaration,  Assignment – Ownership:  Assignee
  10. 10. Patents:  Subject  Matter • Ineligible  Subject  Matter: – Abstract  Ideas – Laws  of  nature – Mathematical  formulas – Naturally  occurring  articles • Examples: – DNA/RNA  (cDNA;;  Myriad);;    Cloned  creatures  (Harvard  mice) – Medical  treatments  (Mayo) – Software  algorithm  (Alice) – Business  method  (Bilski)
  11. 11. Patents:  Prosecution • First  to  Invent  v.  First  to  File
  12. 12. Patents:  Prosecution • U.S.:   – Before  March  16,  2013:  First  to  invent – After  March  16,  2013:  First  Inventor  to  File • Rest  of  the  World  (ROW):   – First  to  File
  13. 13. Patents:  Prosecution • U.S.  Patent  and  Trademark  Office  (USPTO)  requires – Novelty  (35  U.S.C.  §102) • Prior  Art:  Prior  to  effective  filing  date • Not  already  published  or  patented • Not  already  publicly  known  by  others – Non-­obviousness  (35  U.S.C.  §103)   • People  Ordinary  Skilled  in  the  Art  (PHOSITA) – Specification/Disclosure  (35  U.S.C.  §112)   • Written  Description:  Describe  Inventor’s  regard  invention • Enablement:  Enable  PHOSITA  to  practice  the  invention • Best  Mode:  No  longer  required  (America  Invent  Act,  AIA) • Definiteness:  Clearly  defining  what  is  being  claimed
  14. 14. Patents:  Exclusive  Rights • Rights  to  exclude  others  from – Make  within  the  U.S. – Use  within  the  U.S. – Sell  within  the  U.S. – Offer  for  sale  within  the  U.S. – Import  to  U.S.   • Terms  of  exclusive  right – Utility  Patent:  20  years  from  filing – Design  Patent:  14  years  from   being  issued
  15. 15. Patents:  Infringement • Types  of  Infringement  (35  U.S.C.  §271)   – Direct  Infringement:  make,  use,  sell,  offer  for  sale,  import – Indirect  Infringement:  (NOT in  Taiwan) • Induced  Infringement:  Inducing  some  to  infringe • Contributory  Infringement:  making,  selling,  offering  for  sale,  or   importing  a  non-­staple  component  that  has  no  non-­infringing  use – Divided/Joint  Infringement  (Akami):  still  not  protected • Activities  outside the  U.S.  can  be  infringement – Making  a  product  by  a  patented  process  and  imported  into  U.S. – Within  U.S.  (e.g.,  “control  and  beneficial  use”;;  )   • A  license is  an  agreement  not  to  sue for  infringement – But  you  may  still  be  sued  for  infringing  others  patents
  16. 16. Patents:  Remedies • Injunction  Relief:  forbidding  future  infringement   – Easy  to  get  for  competitors – Not  easy  for  “patent  trolls” • Damages:  Monetary  adequate  to  compensate  patent  owner – Lost  profits:  but  …  for  … – No  less  than  a  reasonable  royalty – Punitive  damages:  can  be  up  to  three  times  if  infringement  is  willful • Attorney’s  fee:  Only  in  “exceptional  cases”
  17. 17. Trade  Secrets • Definition • Misappropriation • Remedies • Considerations
  18. 18. Trade  Secrets:  Definition • TRIPS  Agreement,  Part  II,  Sect.  7:  Protection  of   Undisclosed  Information,  Art.  39,  Par.  2,  1994 – Natural  and  legal  persons  shall  have  the  possibility  of  preventing   information  lawfully  within  their  control  from  being  disclosed  to,   acquired  by,  or  used  by  others  without  their  consent  in  a  manner   contrary  to  honest  commercial  practices  so  long  as  such   information: – Is  secret in  the  sense  that  it  is  not,  as  a  body  or  in  the  precise   configuration  and  assembly  of  its  components,  generally  known   among  or  readily  accessible  to  persons  within  the  circles  that   normally  deal  with  the  kinds  of  information  in  question;; – Has  commercial  value  because  it  is  secret;;  and – Has  been  subject  to  reasonable  steps  under  the  circumstances,  but   the  person  lawfully  in  control  of  the  information,  to  keep  it  secret.
  19. 19. Trade  Secrets:  Definition • Unif.  Trade  Secrets  Act  (UTSA)  § l(4) – A  trade  secret  is  any  information,  including  a  formula,  pattern,   compilation,  device,  method,  technique,  or  process,  that: – derives  independent  economic  value,  actual  or  potential,   – from  not  being  generally  known to,  and  not  being  readily   ascertainable  by  proper  means  by,  other  persons  who  can  obtain   economic  value  from  its  disclosure  or  use,  and – is  the  subject  of  efforts that  are  reasonable under  the  circumstances   to  maintain  its  secrecy • See  also,   – Restatement  (Third)  of  Unfair  Competition,  § 39   – Restatement  of  Torts,  § 757  comment  b
  20. 20. Trade  Secrets:  Definition • State  law,  NOT  Federal  law – Statute:  Each  state  varies  but  similar – Cases:  May  be  very  different  (e.g.,  California) • Example:  Non-­Competition  Agreement – Restriction  of  time  period,  geographic  range,  position,  etc. – Most  states  consider  restrictions  reasonable,  so  the  agreement  is   enforceable – But  in  California,  generally  unenforceable  
  21. 21. Trade  Secrets:  Definition • Examples:   – Plans  or  designs  of  products – Manufacturing  process – Customer  lists – Employee  lists • No  pre-­determined  limit  on  the  length  of  protection – Cola-­cola  recipe
  22. 22. Trade  Secrets:  Definition • Trade  Secrets  v.  Know-­how – Know-­how:  Information  that  enables  one  to  accomplish  a  particular   task  or  to  operate  a  particular  device  or  process.  Not  a  legal  term  of   art.  (McCarthy’s  Desk  Encyclopedia  of  Intellectual  Property,  Second   Edition,  p.236) – NOT  synonyms.  Secrecy  is  critical • Trade  Secrets  v.  Patent – Supreme  Court  (Kewanee  Oil,  1974):  perfectly  viable  alternatives. – “Inextricably  intertwined”:  Most  R&D  data  and  collateral  know-­how   cannot  and  need  not  be  included  in  patent  applications  — grist  for   trade  secrets. – All  patents  are  born  as  trade  secrets.    Trade  secrets  precede,   accompany  and  follow  patents
  23. 23. Trade  Secrets:  Misappropriation • UTSA  § l(2):  Misappropriation  "  means:   – (i)  acquisition of  a  trade  secret  of  another  by  a  person  who  knows  or   has  reason  to  know  that  the  trade  secret  was  acquired  by  improper   means;;  or   – (ii)  disclosure or  use of  a  trade  secret  of  another  without  express  or   implied  consent  by  a  person  who   (A)  used  improper  means  to  acquire  knowledge  of  the  trade   secret;;  or   (B)  at  the  time  of  disclosure  or  use  knew  or  had  reason  to  know   that  his  knowledge  of  the  trade  secret  was  (I)  derived  from  or  through   a  person  who  has  utilized  improper  means  to  acquire  it;;  (II)  acquired   under  circumstances  giving  rise  to  a  duty  to  maintain  its  secrecy  or   limit  its  use;;  or  (III)  derived  from  or  through  a  person  who  owed  a  duty   to  the  person  seeking  relief  to  maintain  its  secrecy  or  limit  its  use;;  or   (C)  before  a  material  change  of  his  position,  knew  or  had  reason   to  know  that  it  was  a  trade  secret  ad  that  knowledge  of  it  had  been   acquired  by  accident  or  mistake.
  24. 24. Trade  Secrets:  Misappropriation • Trade  Secret  arises  from  either  one  of  both  theories:   – Tort  Theory:    Acquiring the  trade  secret  by  improper  means;; – Contract  Theory:  Disclosing or  Using the  trade  secret  without   consent  when  the  trade  secret  was  received  under  the   circumstances  where  there  was  a  duty  to  keep  secrecy • When  learning  a  trade  secret  is  NOT  misappropriation: – Independent  invention – Reverse  engineering – Observation  in  public  use – Observation  in  public  literature
  25. 25. Trade  Secrets:  Remedies • Injunction   – irreparable  injury  and   – inadequate  remedy  at  law   – Easier  to  meet  the  requirements • Damages – Lost  profits – Reasonable  Royalty – Profits  made  by  person  misappropriating  trade  secret • Criminal  Prosecution: – Federal  Crime  (Economic  Espionage  Act) – State  Law http://s.hswstatic.com/gif/white-­collar-­crime-­7.jpg
  26. 26. Trade  Secrets:  Considerations • Reasonable  efforts  to  protect  secrecy – Security  procedures: • Mark  “confidential  information”  or  “Do  Not  Copy”  on  documents • Don’t  cc’d  to  broad  email  list  (“need  to  know”  basis) • Security  guards,  badges,  cameras • Camera  and  storage  device  prohibited • Locked  room  with  limited  authority  to  access • Recorded  access  to  sensitive  information • ID  and/or  password  for  photocopiers  and/or  computers • Routine  shredding  procedure – Contracts   • non-­disclosure  agreement • non-­competition  agreement • non-­solicitation  agreement
  27. 27. Trade  Secrets:  Considerations • Non-­Disclosure  Agreement  (NDA): – To  protect  trade  secret  and  other  confidential  information – Easier  to  enforce  than  non-­competition  agreement  and  non-­ solicitation  agreement – Often  include  “Assignment  of  Inventions”  clause  to  ensure  the   company  (not  employee)  owns  trade  secret  and  other  confidential   information • Non-­Competition  Agreement – An  agreement  to  not  engage  in  activities  compete  with  those  that   delineated  in  the  agreement – Often,  employees  agree  not  to  work  for  a  direct  competitor  for  a   certain  amount  of  time  after  leaving  the  company – Must  be  reasonable  in  duration,  territory,  and  the  scope  of   prohibited  activities – Not  enforceable  in  all  jurisdictions
  28. 28. Trade  Secrets:  Considerations • Non-­Solicitation  Agreement: – Not  to  solicit  customers  of  the  company – Not  to  solicit  other  employees  of  the  company – After  the  employee  stop  working  for  the  company – Usually  directed  to  managers  of  the  company – Some  terms  may  be  construed  as  a  “non-­competition  agreement” – Not  enforceable  in  all  jurisdictions http://blog.ericgoldman.org/archives/shutterstock_128228135.jpg
  29. 29. Patents  or  Trade  Secrets  :  Considerations http://blogs.orrick.com/trade-­secrets-­watch/2014/10/15/on-­obtaining-­and-­asserting-­both-­trade-­secret-­and-­patent-­protection-­ the-­itc-­and-­federal-­circuit-­weigh-­in/
  30. 30. Patents  or  Trade  Secrets  :  Considerations • Consider: – Value  of  information   – Cost  of  patent  filing  &  maintain – Easy  of  reverse  engineering   or  not – Easy  of  detection  or  not – Easy  to  prove  infringement  or  not – Easy  to  maintain  secrecy  or  not – Life  span  of  its  economic  value
  31. 31. 3131 Case  Study:  Apple  v.  Samsung http://www.vanityfair.com/business/2014/06/apple-­samsung-­smartphone-­patent-­war
  32. 32. 3232 Apple  v.  Samsungv. • Apple’s  patent  claims Sample  Design  Patents Patented  Design U.S.  Pat.  No.  D593,087,   Electronic  Device U.S. Pat.  No.  D504,889,   Electronic  Device
  33. 33. 3333 Apple  v.  Samsungv. http://blog.thomsonreuters .com/index.php/tag/ip/
  34. 34. 3434 Apple  v.  Samsungv. • Samsung’s  patent  claims Sample  Patents Asserted U.S.  Pat.  No.  6,928,604,  Turbo Encoding/Decoding  Device  and  Method  for   Processing  Frame  Data  According  to  QOS U.S. Pat.  No.  7,050,410,  Apparatus  and  Method  for  Controlling  a  Demultiplexer  and   a  Multiplexer  Used  for  Rate  Matching  in  a  Mobile  Communication  System
  35. 35. 3535 Apple  v.  Samsungv.
  36. 36. 3636 Apple  v.  Samsungv. http://blog.thomsonreuters.com/index.php/tag/lawsuit/
  37. 37. 3737 Apple  v.  Samsungv. • On  remand,  the  district  court  granted  Apple’s  request   for  preliminary  injunction  without  a  hearing  on   6/26/2012,   imposing  a  temporary  ban  on  the  sale  of   Samsung  Galaxy  Tab  10.1.   – Samsung  has  appealed  the  order  to  the  Federal  Circuit.   D’889  Patent
  38. 38. 3838 Apple  v.  Samsungv. http://appleinsider.com/articles/11/09/16/samsung_files_patent_case_against_apple_in_australia _over_iphone_ipad
  39. 39. 3939 Apple  v.  Samsungv. http://www.fosspatents.com/2013/09/german-­court-­dismisses-­apple-­lawsuit.html
  40. 40. 4040 Intellectual  Property   from  the  Start-­up’s  Perspective Intellectual  Property    =        High  Cost  Services   requiring  considerable  input   and  time  from  company   personnel Start  up  =      Limited  Resources  and  Time Just  how  does  the  start-­up  or  early  stage  project   address  intellectual  property  concerns…..
  41. 41. 4141 Outline • Tip  #1  -­ Develop  an  IP  Strategy  Early  and   Review  Regularly • Tip  #2  – Allocate  IP  budget  wisely • Tip  #3  -­ Conduct  Trademark  and  domain  name   searches  early • Tip  #4  -­ Establish  proof  of  invention/ownership • Tip  #5  – Be  aware  of  what  you  tell  others
  42. 42. 4242 Set  IP  Benchmarks  and  Goals • Goal:    Create  an  IP  Portfolio  that  is  relevant 1. Relevant  to  technology  in  development 2. Relevant  to  the  product  and  business 3. Relevant  to  the  market  place  and  competitors • Result:    An  IP  portfolio  that: 1. Directly  contributes  to  the  valuation  of  the  business 2. Supports  the  commercialization  of  the  technology  and   product 3. Posses  barriers  of  entry  for  competitors
  43. 43. 4343 Consider  all  forms  of  IP • Patent  – protects  new  and  useful  products  and   processes • Design  Patent  – protects  ornamental  features   (including  GUIs)get  t • Copyright  – protects  expression • Trademark  – protects  brand  and  logo • Domain  Name  – establishes  identity  on  the  Web • Trade  Secret  – what  you  don’t  want  the  word   knowing • Know-­how  – what  you’ve  learned  along  the  way
  44. 44. 4444 Form  a  plan • At  a  minimum,  the  plan  should  include: – Plans  for  a  patent  committee  that  meets  regularly • At  least  once  a  quarter – A  realistic  budget   – Filing  schedules  and  goals – Identification  of  technologies  to  be  protected  and  the  type  of  IP   (e.g.,  patents,  trademarks,  copyrights,  or  trade  secrets)  that   will  best  protect  the  products  and  other  IP  assets.   • A  company  can  waste  time  and  money  by   randomly  trying  to  protect  IP  that  does  not   conform  to  a  clear  strategy • IP  strategies  must  be  tailored  to  the  company
  45. 45. 4545 Know  your  business • Knowing  how  to  build  your  portfolio  depends  on   your  business,  the  marketplace  and  how  the   technology  is  used  in  you  business  and  the  larger   market.
  46. 46. 4646 Know  your  potential  investors • Investor  interest – Will  numbers  matter? – Will  quality  matter? – Will  jurisdictional  breadth  matter? – Will  timing  matter?
  47. 47. 4747 Understand  how  the  IP  will  be  used • What  will  the  technology  and  IP  do? – Support  a  proprietary  device,  compound,  process,  or   method – Support  a  licensing  model – Discourage  knock-­offs  and  counterfeits – Attract  investment,  partners – Monetize  fields  of  use  not  aligned  with  business – Defensive  war  chest – Offensive  war  chest – Provide  value  if  start-­up  is  not  successful – All  of  the  above
  48. 48. 4848 Outline • Tip  #1  -­ Develop  an  IP  Strategy  Early  and  Review   Regularly • Tip  #2  – Allocate  IP  budget  wisely • Tip  #3  -­ Conduct  Trademark  and  domain  name   searches  early • Tip  #4  -­ Establish  proof  of  invention/ownership • Tip  #5  – Be  aware  of  what  you  tell  others
  49. 49. 4949 Generating  a  Budget • IP  can  be  core  value  of  start-­up  or  early  stage   endeavor • Budget  should  be  realistic   – Make  all  IP  related  decisions  with  IP  budget  in  mind – Consider  budgeting  for  initial  IP  protection  (foundational   IP)  separately  from  the  quarterly  or  yearly  budget • Consider  IP  budgeting  separately  from  other  legal   costs – This  can  help  focus  your  IP  efforts  and  show   commitment  to  protecting  your  company’s  intellectual   property
  50. 50. 5050 Avoid  narrow  focus  of  patents • Building  a  portfolio  is  a  process  not  a  check  list • Avoid  focusing  solely  on  your  technology,  product   or  market • Work  toward  broad  but  detailed  disclosure • Include  multiple  embodiments  and  ways  to   commercialize • Continuation  practice • Re-­alignment  with  technology,  market,  business   strategy
  51. 51. 5151 Avoid  short  cuts  and  detours • Beware  of  perfunctory  provisional  patent   applications – Provisional  applications  have  a  purpose – Risk  in  filing  a  narrow  or  incomplete  disclosure • Beware  of  IP  filings  that  are  not  part  of  an  overall   strategy • Beware  of  unnecessary  or  premature  product   clearance  and  prior-­art  studies
  52. 52. 5252 Avoid  overspending  on  protection  in  non-­ relevant  jurisdictions • Plan  for  international  filings,  avoid  last  minute   decisions  regarding  international  portfolio   development – Provide  a  method  for  deciding  the  countries  in  which  the   invention  will  be  protected  based  on  its  importance,  cost   and  the  availability  of  protection  under  local  law.
  53. 53. 5353 Outline • Tip  #1  -­ Develop  an  IP  Strategy  Early  and  Review   Regularly • Tip  #2  – Allocate  IP  budget  wisely • Tip  #3  -­ Conduct  Trademark  and  domain  name   searches  early • Tip  #4  -­ Establish  proof  of  invention/ownership • Tip  #5  – Be  aware  of  what  you  tell  others
  54. 54. 5454 Trademark  and  domain  name  searches • Trademark  and  Domain  Name  searches  are   relatively  cheap • Secure  product  and  company  names  and  logos   early • Risks: – Added  expense – Wasted  effort – Rebuilding  brand  identification  and  goodwill – Litigation
  55. 55. 5555 Outline • Tip  #1  -­ Develop  an  IP  Strategy  Early  and  Review   Regularly • Tip  #2  – Allocate  IP  budget  wisely • Tip  #3  -­ Conduct  Trademark  and  domain  name   searches  early • Tip  #4  -­ Establish  proof  of  invention/ownership • Tip  #5  – Be  aware  of  what  you  tell  others
  56. 56. 5656 Who  owns  the  IP? • Make  sure  that  the  company,  not  the  employees  or   principals,  own  the  IP. • Protect  your  company’s  IP  with  proper  agreements – Require  employees  to  assign  IP  to  the  company  in   employment  agreements – Applications  should  be  explicitly  assigned  to  the   company. – Confidentiality  agreements  to  protect  company  trade   secrets – Non-­compete  agreements  to  prevent  employees  from   leaving  company  and  taking  valuable  know-­how  to  a   competitor – Consider  IP  ownership  in  agreements  with  partners
  57. 57. 5757 Outline • Tip  #1  -­ Develop  an  IP  Strategy  Early  and  Review   Regularly • Tip  #2  – Allocate  IP  budget  wisely • Tip  #3  -­ Conduct  Trademark  and  domain  name   searches  early • Tip  #4  -­ Establish  proof  of  invention/ownership • Tip  #5  – Be  aware  of  what  you  tell  others
  58. 58. 5858 Disclosure  is  a  double-­edged  sword • To  promote  your  idea  and  company,  you  have  to   share  your  ideas  with  others • But,  beware  of  Statutory  Bars – Your  own  activities  can  prevent  you  from  obtaining  a   patent – Beware  of  publication  (paper,  speech,  presentation)  of   invention – Beware  of  commercial  use  (offer  for  sale)  of  invention – In  U.S.,  a  patent  application  must  be  filed  within  one   year – “absolute  novelty”  system:  any  publication  or  offer  for   sale  prior  to  filing  =  complete  bar
  59. 59. 5959 What  to  do? • Consider  early  filing  of  patent  application(s) • If  early  filing  is  impossible  for  time/financial   reasons – Consider  whether/what  you  really  need  to  disclose – Consider  whether  an  non-­disclosure  agreement  (NDA)   is  possible
  60. 60. 6060 Benefits  from  a  well  thought  through   intellectual  property  plan • Control  Costs • IP  aligned  with  business  and  technology • Flexible  IP • Validation • Tangible  expression  of  complex  ideas/technology   for  evaluation  in  diligence
  61. 61. 6161 Final  Thoughts • IP  is  a  critical  aspect  in  the  growth  cycle  of  an   early  stage  endeavor. • IP  plan  should  be  done  early  and  relied  upon  when   developing  IP
  62. 62. Questions?

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