October 2014- ISIN Breakfast Seminar Barry Moore bmoore@hmc-ip.com www.hmc-ip.com

“Patents are bad. People who hold them are trolls. When people try to collect royalties or file a lawsuit, they are merely trying to scab money from a more successful competitor. They are holding back the future. They are people to be shunned. So say all of us.” Michael Kanellos Forbes 4/12/2012

Dear Silicon Valley: Please Quit Whining about Patents

1. Thomas Edison- 2,332 patents worldwide 2. Google- licensed PageRank patents from Stanford 3. ARM- company based on patents and has profited through licensing Apple and Apple suppliers 4. HP, IBM, Microsoft- license and innovate March 2012 report for the USPTO states 75 IP-intensive industries in the U.S. accounted for $5 trillion, or 34%, of GDP in 2010 and that weekly wages were 42 percent higher.

Nothing good comes from patents

1. Defensive 2. Offensive 3. Crystallize intellectual property into company 4. Valuation purposes 5. Corporate America likes patents!

Why get patents

A- aware B-beware:

C- cash €€€€

Patents- the ABC’s

What does the patent application look like

• Background • Detailed Description • Claims

What does the patent application need to do

Prior art

Invention

Infringer

Technical

Claims

Timelines

1. ■ No Translation

2. ■ Claims Translation

3. ■ Full Translation

Present Situation

38 EP Countries

Future

With Unitary Patent

Will cover 25 EU countries - Spain and Italy will not be included

1. ■ no No translation

2. ■ Claims translation

3. ■ Full translation

So far, Austria, Belgium, Denmark, France and Sweden have ratified.

UK, France and Germany must ratify + 10 others.

UK ratification “not until 2nd half of 2015” 2nd Spanish legal challenge being considered

by CJEU. 2016 now looking more like the start

• Potential reduction in Post-Grant Costs. • Potential reduction in Renewal Costs. • No changes in present costs of Examination

and Grant. • Separate Patents in each country still

available in 13 EPO countries outside UP system.

Patents in each country still available in 13 EPO countries outside UP system.

could save a lot of money …

Present Future Cost Saving

Application, Examination, Grant € 7000 € 7000 0 %

Validation ( DE, GB, FR, IT, ES only)

€ 4500 € 4500

0%

Validation ( ALL 27 EU countries)

€ 32,000 € 5500 80 %

Renewals (E.g. 5th year, A27 EU countries)

€ 6000 € 850 85 %

ECJ ?

Court of Appeal

Luxembourg

Court of First Instance

Regional Division - LONDON Central Division - PARIS Regional Division - MUNICH

(Chemistry cases) (Electronics cases) (Engineering cases)

Patents in Europe will be easier to enforce, in new Unified Patent Court

In the near future, as well as Community Trade Mark and Design rights, a (near) Community Patent right will be available.

European patent rights will become readily enforceable.

Already NPEs are gearing up for the new regime. European patent density will increase towards

US levels. European patent proceedings will become more

common. Patents are here so be prepared!