Chipotle inc!

Protecting IP: Patents and Trade Secrets

Chipotle Inc!Tyler Fetters – CEO

Afton Winner – CIO

Apolo Aguirre– CFO

Kyung Shim - CTO

Noxid Recreation Center

Larger recreation center

Employing over 200 employee.

Have a few weight rooms, several basketball and racquetball courts, an indoor track, Olympic size pool and diving well, as well as an indoor climbing wall.

Problem DescriptionOne of the Noxid employees has created a

new machinePatenting and patent enforcementBest, fastest, and cost productive wayWhat are the costs associatedHow long does it take

How does Noxid create barriers to keep employees from taking their training and leavingHow do we keep our employees from using

us for training

Patents

Definition- A set of exclusive rights granted by a state to an inventor or his assignee for a fixed period of time in exchange for a disclosure of an invention

Invention- Must be New, Inventive, Useful or Industrially applicable.

Primarily on codified Federal Law

Utilization Patents Invention- Must be New, Inventive, Useful

or Industrially applicable. Noxid Recreation Center - Developed

new revolutionary machine Utility Patent1. General Utility2. Specific Utility3. Moral or beneficial utility

Patent Process1. Develop/Invent Idea2. Determine if it can be patented

i. Meet 3 Requirements:• Novelty• Non-Obviousness• Utility

3. Perform a patent search4. Apply for your patent (regular patent

requirements)i. 2 Parts

• Specification• Claims

Patent Cost and TimeUS Patent Office Fees

Utility Patent Application- $500 3 independent claims and 17 dependentAdditional more cost

Issue Fee- $700Total w/o attorney fees- $1,200Professional Patent drawings- $100 per

sheetMaintenance fees after issuance

3.5, 7.5, 11.5 years$450, $1,150, $1,900

IP: Patent– Professional HelpSvitek Law Group

Web Site

Ideal for Small businesses

Full service business law including patent help and no compete or any other business contract

Cost: Hourly RateBe organized a efficient all interaction is billed

Trade SecretsDefinition- Formula, practice,

process, design, instrument, pattern, or compilation of information - not generally known or reasonably ascertainable

“Confidential Information" or “Classified Information".

Based primarily on state law

Trade Secrets UtilizationMark computer files and documents with a

confidential warningRestrict access to the trade secret to only

those that really need to knowMake anyone you disclose information to

sign a non-disclosure agreementKeep information enclosed in a secured

areaImportant to retain key employees

Provide enough incentive for them not to “jump ship”

Attorneys fees Rough FiguresType of Invention

 Examples

 Cost

 Relatively Simple

 electric switch; coat hanger; paper clip; diapers; earmuffs;

ice cube tray

 $4,000 to $6,500

 Minimal Complexity

 board game; umbrella; retractable dog leash; belt clip for

cell phone; toothbrush; flashlight

 $6,500 to $9,000

 Moderately Complex

 power hand tool; lawn mower; camera; cell phone; simple

business method; microwave oven

 $9,000 to $12,000

 Intermediate Complexity

 ride on lawn mower; video game; simple RFID devices;

solar concentrator;

 $12,000 to $16,000

 Relatively Complex

 shock absorbing prosthetic device; internet implemented

business method with computer system

 $16,000 to $25,000

 Highly Complex

 MRI scanner; PCR; telecommunication networking systems

 $25,000 +

 

 

Total Cost and Time$5,000-30,000+Patent 20 years

from application date, not approval date

Trade Secrets – No competes Agreements

Becoming an increasingly popular way for employers to try to limit employees and former employees from working for a competitor, or from divulging trade secrets or other proprietary data

Employer also can be held liable for hiring an employee

Enforcement varies from State to State (ex. California vs. New York) due to Laws

Entered into with little, if any, negotiation between the employer and the employee

Limits future employment and prevents Self Employment

CostCost range from $10 to $45

Agreements Etc.Law Depot

Trade Secrets Vs. Patents Secret

Patent Trade Secrets

Who uses this strategy

GilleteAmazon.com

KodakCoca-Cola (7x)

What is being protected

Inventions (Tight Regulation)

Anything that wouldn’t want competitors know

How long does protection last?

20yrs from filling and a minimum of 17 years

Indefinitely

How much does it cost?

Approximately $5,000- $30,000 per invention

Establishing procedures and keeping key employees

Concept MapsApplying For a Patent

Patent Search

Machine New Idea

Write Specificati

onWrite Claim

Get Machine Patented

Machine Already

Patented

Trade Secret Protection

Protect and Secure Secret Documents

Hire Attorney

Employee Non-Disclosure

Agreements

Non-Compete Clauses

Case Study/Patent EnforcementPatent enforcement is the process of legally maintaining

one's patent grant. If an infringed patent is not enforced for many years, a patentee may lose the patent grant

Due diligence in preparation of enforcing a patent could save literally millions of dollars in legal fees

Due diligence in preparation of enforcing a patent could save literally millions of dollars in legal fees

GPCIWeb Page

Patent HawkWeb Page

Overall RecommendationsDecide whether you can afford legal

assistance or not.If so contact either your current lawyer or

Svitek Law and they will assist you along the way

Search the Patent database to ensure your invention qualifies

Fill out the paper work at the US Patent website

Create a no compete contractAll trade secret materials should be handled

as such and take due diligence to keep them secrets

Maintain your PatentsMake Millions!

QuestionsNoxid?

Class?

Dave?

V is for victory or defeat….

Eat Chipotle!