Archive for August, 2009

Patent Case before the Supreme Court may affect medical research.

The Supreme Court justices will decide in Bilski v. Doll whether certain business methods regarding medical research are patentable. The case arose after the CEO of an energy company sued the USPTO after the office denied a patent on trading techniques of certain commodities. The two issues to be addressed are as follows:

(1) Whether the Federal Circuit erred by holding that a “process” must be tied to a particular machine or apparatus, or transform a particular article into a different state or thing (“machine-or-transformation” test), to be eligible for patenting under 35 U.S.C. § 101, despite [the Supreme Court's] precedent declining to limit the broad statutory grant of patent eligibility for “any” new and useful process beyond excluding patents for “laws of nature, physical phenomena, and abstract ideas.”

(2) Whether the Federal Circuit’s “machine-or-transformation” test for patent eligibility, which effectively forecloses meaningful patent protection to many business methods, contradicts the clear Congressional intent that patents protect “method[s] of doing or conducting business.” 35 U.S.C. § 273.

Generally, federal law bars the patentability of laws of nature, natural phenomena and abstract ideas. The 2008 CAFC decision that led to this Supreme Court case involved narrowing the standards for patenting a common principle being transformed into a novel development. Many medical and biotechnology groups are concerned that a conservative decision by the Supreme Court may limit medical innovations. Biotechnology Industry Organization General Counsel Tom DiLenge stated that the limitations “could jeopardize already-issued biotechnology claims and will create uncertainty surrounding future grants” of patents on biologic, diagnostic and genetic testing methods. Thus, the organizations are asking the Supreme Court to overturn the CAFC in favor of allowing the more flexible patentability standard that was enforced previously.


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Monday, August 31st, 2009

Permanent Injunction is issued against Microsoft

Judge Leonard Davis of the US District Court for the Eastern District of Texas issued a permanent injunction and total damages and interest of over $290 million against Microsoft in an infringement suit with i4i Inc.

This ruling of damages follows the decision on May 20 that Microsoft willfully infringed the i4i patent regarding a document system that relies on the XML custom formatting function. This sort of function removed the need for an individual by manually embedding command codes to control text formatting in electronic documents. Judge Davis ruled that Microsoft should pay an addition $40 million for the willful infringement of the i4i patent. Furthermore, the permanent injunction issued now prohibits Microsoft from selling or importing any Word products that can open .XML, .DOCX or .DOCM files containing the custom XML. The court requires Microsoft to comply with the injunction within sixty days.


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Monday, August 31st, 2009

Patent Reform Opponents Send a Letter to President Obama

Over 130 manufacturing companies in the United States endorsed a letter urging the Obama administration to stop patent reform.  The manufacturing companies are concerned about the patent reform proposals and the consequences that they would have to the competitiveness of the market. Although it is unclear exactly what reforms the Obama administration is planning on taking, this letter may simply be used as a reminder to President Obama of the support he received from labor and manufacturing sectors as he makes his decisions. Surely Obama will also receive letters supporting patent reform from other anti-patent organizations.

Many of the concerns of the manufacturers are as follows. The letter states that the manufacturers “feel strongly that the prosperity of a few companies within two industries should not come at the expense of a larger group of stakeholders.” They also turned to a recent student that focused on the impact of apportionment legislation and stated that this change would “put at risk up to 298,000 manufacturing jobs and reduce R&D by up to $66 billion. This would be a negative outcome even when our economy is strong; at a time of economic crisis, it would be tragic.” The letter also addresses the issue of increased patent litigation by stating that in fact there has been no explosion in litigation. “In 1993, lawsuits were 1.45% of patents granted. In 2007, lawsuits were 1.48% of patents granted.” The manufacturers also stated that there is no explosion in patent damage awards. “In constant dollars, the median was $3.9 million from 1995 through 2000, and $3.8 million from 2001 through 2007.” In closing the letter stated that “we do not oppose all legislative efforts to improve the patent system, but we feel that any legislative changes should benefit the broad spectrum of patent stakeholders.”


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Monday, August 24th, 2009

Reformed doctrine of Inequitable Conduct

On August 4, the Federal Circuit decided Exergen Corp v. Wal-Mart Stores, Inc. In this case, the Federal Circuit restrains the use of the inequitable conduct doctrine.  Under FRCP 9(b) a claim must be pled with particularity, and this applies to the inequitable conduct defense. (The Federal Circuit first endorsed this proposition in Central Admixture v. Adv. Cardia Solutions, 482 F.3d 1347 (Fed Cir 2007)). The Court’s ruling on this issue in Exergen states that “A pleading that simply avers the substantive elements of inequitable conduct, without setting forth the particularized factual bases for the allegation, does not satisfy Rule 9(b)” Exergen at 21. The Court went on to say that the identification of who, what when, where and how the material was misrepresented must be identified before the USPTO. Furthermore, the Court stated that requisite intent must be shown or inferred through the underlying facts of the allegation. Id at 22. The requisite state of mind must be shown through an “individual [who] (1) knew of the withheld information or of the falsity of the material misrepresentation, and (2) withheld or misrepresented this information with a specific intent to deceive the PTO.” Id at 24-25.


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Monday, August 24th, 2009

Record Companies Prevail in Music Downloading Trial

On Friday, a jury ordered Joel Tenenbaum, a BU graduate student to pay $675,000 to various record companies after he illegally downloaded and distributed thirty songs. This amount of damages is significantly less than 4.5 million dollars which is what the companies would have received if the jury imposed the maximum per-song damages. Tenenbaum’s attorney, Harvard Law professor Charles Nesson,  tried to convince the jury that Tenenabum was addicted to downloading music and that he was merely taking advantage of the technology that was available to him. Nesson argued that Tenenbaum was not trying to take profits away from the record companies. He further stated that the record companies should better keep up with the changing technological advancement. “Progress happens, it’s not Joel who is responsible,” Nesson said. “There’s no reason for [the industry] to put their calamity off on kids.”

Tenenbaum admitted to being liable for the download and distribution of the songs at issue. The jury therefore merely had to decide whether such infringement was willful. Nesson stressed that because his client was not posting the first copy of the infringed matter but rather was distributing music already downloaded from others, that Tenenbaum was not adding to the lost profits of the record companies.

Plaintiff’s attorney, Reynolds, described Tenenbaum as a “hard-core, habitual, long-term infringer.” He also stated that as an undergraduate student at Goucher College, Tenenbaum downloaded 600-5000 songs onto a shared network at the school. Furthermore, Reynolds argued, that the situation with Tenenbaum must be used as an example to deter future infringers because illegal downloading has caused significant loss in profits for the record companies.



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Monday, August 24th, 2009

Michael Jackson’s estate confronts fake merchandise dealers

In Los Angeles there are many vendors selling t-shirts in honor of Michael Jackson’s death. However, two of the shirts have misinformation: the wrong date of death and the other no tag on the collar. As Jackson’s estate attorneys are battling to make sure his fortune is secure, they are trying to keep unauthorized Jackson memorabilia off of the streets. According to CMG Worldwide’s chief executive, Mark Roesler, there are tens of millions of dollars in annual merchandising royalties in these t shirts. CMG Worldwide also handles the licensing and revenue of other famous estates such as those of Marilyn Monroe, James Dean, etc. The estate of Michael Jackson has been selling licensed merchandise through the Universal Music Group’s retailing company, Bravado. Roesler stated that “In the piracy and anti-counterfeiting world, this is as big as it gets…it’s a daunting task for the rights holders to get on top of this.”

Since the day that Jackson died, many vendors are making fake merchandise and selling them on sites such as Amazon.com. However, the street vendors in cities such as New York and Los Angeles are more shameless in breaking the law. The estate’s administrators John Branca and John McClain told the Associated Press that the estate will take all legal action possible to prevent the unauthorized items from being sold. They stated that the sale of this illegal merchandise “provides nothing for the beneficiaries of his estate.”

The Los Angeles Police Department will not take legal action against the street retailers unless a trademark owner actually appears in court to claim that such items are fake. However, something that makes the situation even more complicated is that, according to the US PTO, the phrase “King of Pop” was not actually registered to Michael Jackson. Jackson had registered “Michael Jackson” as a trademark but only on sound and video involving his music. Common law allows for there to be a lack of trademark and still let Jackson establish ownership if used in commercial ventures.

Although the Jackson estate attorneys will try, it will be extremely difficult to get rid of every single illegal vendor.

Please read the full article for more information: http://www.ledger-enquirer.com/262/story/795440.html


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