Energy Industry Group Intellectual Property Group March 17, 2008 Global Green: New Eco-Patent Commons Initiative Provides Incentives for Environmentally Friendly Technology Exchange In response to the emerging push from large companies to support environmentally conscious policies, a group spearheaded by IBM Corp. has established a forum through which companies and other intellectual property holders can demonstrate their commitment to “going green.” Called the “EcoPatent Commons,” the initiative provides a central repository where companies can donate and view patents that provide “environmental benefits” to the public. Unveiled early this year, the initiative touts an open exchange of patented technology aimed at such environmentally friendly goals as reducing waste, pollution, global warming and energy demands. What is the Eco-Patent Commons? The Eco-Patent Commons is a program consisting largely of a worldwide database of eco-friendly patents. The Commons was created by the World Business Council for Sustainable Development (WBCSD), a “CEO-led global association of some 200 companies.” WBCSD fashioned the Eco-Patent Commons in an effort to encourage holders of patents to promote technology that protects the environment by pledging their innovative technology to the public. The Eco-Patent Commons allows patent-holders to designate to the community certain patents they feel would provide greater value in the public knowledge. By dedicating a patent to the Eco-Patent Commons, the owner of the patent asserts that it will not bring a cause of action against anyone making, using or selling the technology claimed by the patent, as it relates to providing an environmental benefit. However, the company dedicating the patent still remains the patent’s owner. From an intellectual property protection standpoint, this provides a notable benefit over simply releasing the patent to the public. The contributor is still able to assert the patent in certain defensive situations, maintaining value in the patent for the holder. The patents found on the Eco-Patent Commons are those that provide environmental benefits, either directly or indirectly. Touted as similar to the open-source software approach to intellectual property, the Eco-Patent Commons fulfills two goals: Promote innovation designed to facilitate and accelerate ways to protect the environment. Encourage cooperation between businesses dedicated to advancement and development of environmentally conscious technology. To date, the database consists of approximately 31 patents donated by IBM Corp., Pitney Bowes Inc., Sony Corp. and Nokia Corp. It is the goal of the Eco-Patent Commons to allow businesses to donate their intellectual property for the greater good, and at the same time benefit from the knowledge of others in the field. What are the Benefits of Contributing to Eco-Patent Commons? The WBCSD indicates a number of benefits for those who contribute one or more patents to the EcoPatent Commons. The most visible benefit is global recognition as a major contributor to the protection of the environment. Members of the initiative are noted in press releases and are recognized by both non-governmental and governmental agencies. Additionally, members engage in the exchange of information with others who may be facing similar issues. This exchange often gives rise to the potential for business collaboration. Contributing to the Eco-Patent Commons further allows companies to introduce their technology to a wide audience of potential customers, and the WBCSD is looking into potential tax benefits, as well. But the benefit driving the initiative stems from the hope that the free exchange of information related to the environment will lead to further research and increased solutions to the problems plaguing the environment today. What is Involved in Contributing to the Eco-Patent Commons? The decision of whether to contribute one or more patents to the initiative, as well as what patents would be beneficial, is entirely based upon each business’ unique situation. While patents in certain International Patent Classifications are allowed as a right, any patent that directly or indirectly protects or improves the environment may be contributed. Currently, becoming a member of the Eco-Patent Commons is free, but it is anticipated that there will eventually be a membership fee (though it is believed this fee will be modest). If you have any questions concerning the above, please contact Bob Barrett (312-807-4204 or rbarrett@bellboyd.com) or Jeana Lervick (312-807-4339 or jlervick@bellboyd.com) in Bell, Boyd & Lloyd LLP’s Intellectual Property Practice. This publication has been prepared by the Energy Group and the Intellectual Property Group of Bell, Boyd & Lloyd LLP for clients and friends of the firm and is for information only. It is not a substitute for legal advice or individual analysis of a particular legal matter. Readers should not act without seeking professional legal counsel. Transmission and receipt of this publication does not create an attorney-client relationship. © 2008 Bell, Boyd & Lloyd LLP All Rights Reserved www.bellboyd.com Bell, Boyd & Lloyd LLP 70 West Madison Street Chicago, Illinois 60602 t. 312-372-1121 f. 312-827-8000 Bell, Boyd & Lloyd LLP 1615 L Street, N.W. Washington, D.C. 20036 t. 202-466-6300 f. 202-463-0678 Bell, Boyd & Lloyd LLP 3580 Carmel Mountain Road San Diego, CA 92130 t. 858-509-7400 f. 858-509-7466