Patent Law for Engineers Sean D. Burdick, P.E. Patent Attorney What I’m Gonna Tell ‘Em: 1. About me 2. Career Paths in Law 3. Law School 4. Overview of U.S. Patent Law 5. Patent-Related Issues Facing Engineers 1.1 About me "He who represents himself has a fool for a client." - Abraham Lincoln ▪ Idaho Falls High School Class of 1983 ▪ B.S.E.E., University of Idaho, 1989 ▪ Ten years in commercial nuclear power ▪ P.E. License, California, 1999 ▪ U.S. Patent Bar, 2002 ▪ J.D., University of San Diego, 2003 ▪ California State Bar, 2003 ▪ Patent Attorney, Snell & Wilmer L.L.P. 2.1 Careers in Law Careers in Law United States Patent & Trademark Office James Madison Bldg., Alexandria, Virginia 2.2 Careers in Law You Can Be A Patent Examiner! ▪ B.S. from ABET accredited school ▪ Higher pay for GPA > 2.95, upper 1/3 class rank, honor society membership, graduate level coursework ▪ Recruitment bonus, flexible schedules, telecommuting, reimbursement for law school ▪ Specialized training provided ▪ Review applications for compliance with rules and legal standards for patentability ▪ Electrical/Computer Engr: $63k to $83k See: www.uspto.gov/go/ac/ahrpa/ohr/jobs/qualifications.htm 2.3 Careers in Law You Can Be A Patent Agent! ▪ No law degree needed to prosecute patents ▪ You just need to pass the Patent Bar ▪ Only engineers & scientists are qualified to take the Patent Bar ▪ B.S. from an accredited school, or passing the E.I.T. qualifies you to take the Patent Bar ▪ Computer-based exam offered every month; cost is $200 plus $40 application fee ▪ Patent Bar review course highly recommended ▪ Electrical/Computer Engr: $90k to $100k See: www.uspto.gov/web/offices/dcom/gcounsel/oed.htm; See: www.prometric.com 2.4 Careers in Law You Can Be A Patent Atty! ▪ Only lawyers who pass the patent bar can call themselves patent attorneys ▪ B.S. & LSAT score (+ $) gets you into law school ▪ engrs well-equipped for rigors of law school ▪ night school programs in law school ▪ $160k starting salary at top IP firms ▪ get into the highest ranked law school possible; check out U.S. News Rankings ▪ take electives in IP law ▪ pass the Patent Bar while in law school ▪ male-to-female ratio at law school about 50/50 TIP: don’t take the LSAT until serious; study for 2 months prior TIP: file a patent application – publication at 18 months is guaranteed 2.5 Careers in Law You Can Practice Law! ▪ Must pass a state Bar Exam ▪ Must pass Character & Fitness ▪ Continuing legal education ▪ Products liability ▪ Construction defects ▪ Energy ▪ Licensing / contracts ▪ Patent litigation 3.1 Law School Basic Requirements for Law School ▪ B.A. or B.S. from an accredited school ▪ Halfway decent GPA ▪ LSAT score 150 or better for top tier schools ▪ Tuition avg.: $12k to $15k per year Law School Admissions Test (LSAT) ▪ 4 times per year: June, September/October, December, February ▪ Five 35-minute multiple choice sections + One essay question ▪ Logical reasoning / Reading Comprehension / Analytical Reasoning ▪ Scored on a 120 to 180 scale 3.2 Law School Core Studies in Law School ▪ Contracts ▪ Property ▪ Torts ▪ Constitutional Law ▪ Civil Procedure ▪ Criminal Procedure ▪ Criminal Law ▪ Evidence 3.3 Law School The Socratic Method ▪ Professor asks questions to the student ▪ Every student will eventually be called on ▪ You learn by having to orally defend your position Costs / Rewards ▪ 3 years full time / 4 years part time ▪ $50k to $100k in total costs ▪ Juris Doctor (J.D.) degree ▪ research, writing, oral skills 4.1 Overview of U.S. Patent Law What is Intellectual Property (IP)? Patents, Trade Secrets IDEAS IP Design Patents IP SOURCE OF GOODS Trademarks, Goodwill IP ARTISTIC EXPRESSION Copyrights 4.2 Overview of U.S. Patent Law Constitutional Origin The Congreff shall have the Power … to promote the Progress of Science and the useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries. ▪ Title 35 USC §§ 1 to 376 (three volumes) ▪ 37 CFR §§ 1.1 to 1.995 (about 200 pages) ▪ MPEP (two volumes, 27 chapters, seven appendices ▪ thousands of decisions in the federal courts Article I, Section 8 4.3 Overview of U.S. Patent Law A Patent is a Legal Monopoly 1. right to exclude others from making, using or selling a product covered by the patent claims 2. enforceable only within the country that grants the patent right 3. the patent claims define the scope of the patentee’s rights 4. does not protect a patentee against infringement 4.4 Overview of U.S. Patent Law Some Basic Patent Law: ▪ anyone can apply for a U.S. patent ▪ property rights vest initially in the inventor ▪ the date of invention is the actual date of conception followed by diligent reduction to practice, not the filing date ▪ one year grace period to file your patent application after initial public disclosure ▪ there can be multiple claims to a single invention ▪ there can be multiple inventors in a single patent ▪ the enforceable life of a patent is about 17 years 4.5 Overview of U.S. Patent Law What is patentable subject matter? Ans: Anything under the sun made by man that is a 1. new, 2. useful, and 3. non-obvious 4. process, machine, manufacture, or composition of matter 4.6 Overview of U.S. Patent Law The first U.S. Patent: 4.7 Overview of U.S. Patent Law Form of a U.S. Patent 1. Cover page (no., title, term, Abstract) 2. Drawings 3. Field & Background 4. Summary 5. Drawing Descriptions 6. Specification 7. Claims 4.8 Overview of U.S. Patent Law Example of a U.S. Patent 4.9 Overview of U.S. Patent Law Example of a U.S. Patent 400 402 416 428(a) 428(b) 420 2-CHANNEL NARROWBAND RECEIVER 464 476 480 SPECTRAL DENSITY MOVING WINDOW AVERAGE DYNAMIC SPECTRAL ANALYSIS A/D CONVERTER 462 472 470 466 460 468 474 404 478 490 482 484 M 440 496 M 486 492 DETECTION LOGIC USER INTERFACE 442 488 494 408 Fig. 4 4.10 Overview of U.S. Patent Law Example of a U.S. Patent 100 128(a) 102 108 128(b) 104 116 Fig. 1b 110 116 106(a) 120 104 112 108 124 118 106(b) 122 130 126 114 Fig. 1a 112 4.11 Overview of U.S. Patent Law Example of a U.S. Patent 4.12 Overview of U.S. Patent Law Example of a U.S. Patent 4.13 Overview of U.S. Patent Law Patent Facts: ▪ over 7 million patents have been granted in the United States since 1790 ▪ 426,000 utility patent applications were filed in the USPTO in 2006 (48% foreign) ▪ 196,000 utility patents were granted in the USPTO in 2006 ▪ it takes about 3 to 4 years to get a patent ▪ 5,500 patent examiners at the USPTO ▪ there are now over 760,000 patent applications pending at the U.S. Patent & Trademark Office 5.1 Patent-Related Issues Facing Engineers Patent–Related Issues Facing Engineers 5.2 Patent-Related Issues Facing Engineers Is My Idea Patentable? ▪ novelty and obviousness are the toughest hurdles ▪ any prior publication anywhere in the world can defeat novelty ▪ obviousness is based on a combination of references and the knowledge of “one skilled in the relevant art” ▪ before filing a patent appl., you may want to conduct a prior art search* yourself or hire a searching firm * See: http://www.uspto.gov/patft/index.html 5.3 Patent-Related Issues Facing Engineers Am I Infringing Somebody Else’s Patent? 1. Constructive Knowledge - the Marking statute: 35 USC §287 2. Actual Knowledge - cease and desist letter - lawsuit - failed licensing negotiation or other correspondence 3. No damages prior to knowledge 4. Treble damages for willful infringement: 35 USC §284 5. Costs and attorneys fees: 35 USC §285 5.4 Patent-Related Issues Facing Engineers If the product is patent-protected … How Do I Avoid The Monopoly? 1. get permission from owner or assignee (in writing!) - locate the current owner via: http://assignments.uspto.gov/assignments/q?db=pat 2. obtain a license - reasonable royalties – 2½ to 3½ % of sales? - you only need to license from a single owner 3. purchase the patent 4. work outside the jurisdiction 5. design around the claims 5.5 Patent-Related Issues Facing Engineers Designing around the claims ▪ the claims define the limits of the patent monopoly ▪ If the patent claims elements A + B + C ▪ you infringe if your product contains element A + B + C regardless of the presence of additional elements ▪ you don’t infringe if your product is missing any one of elements A or B or C ▪ e.g., a product comprising A + B + C + D infringes ▪ e.g., a product comprising A + C + D + E does not 5.6 Patent-Related Issues Facing Engineers What is a trade secret? ▪ not generally know to the public ▪ confers economic benefit to the holder ▪ holder makes reasonable efforts to maintain the secret The antithesis of a patent: ▪ legal protection is possible without disclosure of the secret ▪ secret maintained through NDAs and “Proprietary” designations ▪ theoretically indefinite life – perpetual monopoly ▪ BUT, no legal protection if someone else legally discovers the secret 5.7 Patent-Related Issues Facing Engineers Misappropriation of Trade Secret ▪ industrial espionage ▪ breach of NDA ▪ unauthorized disclosure of PROPRIETARY document Is there a legal way to discover a trade secret? ▪ holder fails to take reasonable efforts to maintain the secret ▪ REVERSE ENGINEERING !!! What I Told ‘Em: 1. About me 2. Career Paths in Law 3. Law School 4. Overview of U.S. Patent Law 5. Patent-Related Issues Facing Engineers Patent Law For Engineers Sean D. Burdick, P.E. Patent Attorney Snell & Wilmer, LLP 600 Anton Blvd. Suite 1400 Costa Mesa, CA 92626-7689 (714) 427-7000 sburdick@swlaw.com