© 2004, Sterne, Kessler, Goldstein & Fox P.L.L.C. 248067.ppt

Computer-Related Patent Law, Strategy and Trends- Release 1.8

by

Michael Messinger, Director

April 2, 2004

11

Strong Trends in Computer-Related Patents

Broader Reach of Subject MatterInternational HarmonizationIncreased Business Value

22

Patent Right

Exclusive Right to Prevent Others from Making, Using, or Selling InventionTerritorial20 Years from Date Application is Filed

33

Why?

Bargain TheoryNatural RightEconomic

44

U.S. Patent Law - Sources of Authority

U.S. ConstitutionCongress - StatutesFederal Agency - USPTO Rule MakingFederal Courts - Unique Role of Federal Circuit

55

Patentability Standards

Utility - 35 U.S.C. §101New - 35 U.S.C. §102Non-Obviousness - 35 U.S.C. §103– HPOSITA– Secondary Considerations

(long felt need, unexpected result, commercial success)

66

USPTO

Maturing Examination PracticeSoftware GuidelinesFiner Subject Matter ClassificationLayered ReviewReexaminationDuty of DisclosureFilings

Application-Year Comparison

0

1000

2000

3000

4000

5000

6000

7000

8000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Filing Date Year

U.S.

App

licat

ions

File

d

Class 705 (Data Processing: Business Processing, Management) Class 345 (Computer Graphics Processing, Operator Class 707 (Database and File Management) Class 706 (Artificial Intelligence)

99

Federal Courts

More Uniform Patent Law"Valid, Not Infringed"Markman PracticeStrong Remedies

1010

Watch Your Step

Wang v. AOL/Netscape (Fed. Cir. 1999)“displaying frames of data”

Microsoft v. Multi-Tech (Fed. Cir. 2004)“transmitting the outgoing packet stream”

1111

Strategy

Harvesting InventionsIdentifying Innovation of Value – Special Difficulties for Software

Nature of SoftwareNeed for Technical/Business/Legal

Increased Role of Computer-Related Patents in Company Life Cycle

1212

Hot Areas

Claim ConstructionQuality Patent Application DraftingMonetizing PatentsIndustry Practices: Standards, Open Source

1313

Innovate!