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Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

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Page 1: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Indianapolis Bar Association:2009-2010 Year in ReviewPatent Law and Practice

Chuck Schmal

Sponsored by the Intellectual Property Law Section

Page 2: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Overview

• Patent Office Procedure

• Patent Term Adjustment

• Ownership

• Inequitable Conduct

• Ethics Rules

• Other Notable Cases

• Note: The following topics are just a small sample of recent cases and procedures. 

Page 3: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Patent Office Practice

Page 4: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Bilski

Most Important Change of the Year

Appeals RulesContinuation & Claims Rules

Page 5: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Most Important Change of the Year

August 13, 2009- David Kappos- New Director of the USPTO

Bilski

Appeals RulesContinuation & Claims Rules

Page 6: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Patent Office Highlights

• Change in Attitude

• Compact Prosecution

• Appeals

• Proposed Rules

Page 7: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Change in Attitude

• Launches a Blog and Increases Town Hall Meetings

• Claim and Con Rules Rescinded- October 8, 2009

• Ombudsman Program- April 6, 2010

• PKI Certificates- now can have multiple employees of your firm e-file or access private PAIR on your behalf (even at the same time)

– FAQs published.

Page 8: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Change in Attitude

On the subject of quality, there has been speculation in the IP community that examiners are being

encouraged to reject applications because a lower allowance rate equals higher quality. Let's be clear: patent quality does not equal rejection. In some

cases this requires us to reject all the claims when no patentable subject matter has been presented. It is our duty to be candid with the applicant and protect the

interests of the public. In other cases this means granting broad claims when they present allowable subject matter. In all cases it means engaging with the applicant to get to the real issues efficiently—

what we all know as compact prosecution.-- August 2009 email to Examiners

Page 9: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Rescinds Continuation and Claims Rules

The USPTO should incentivize innovation, develop rules that are responsive to its applicants’ needs and

help bring their products and services to market... ...These regulations have been highly

unpopular from the outset and were not well received by the applicant community. In taking the actions we

are announcing today, we hope to engage the applicant community more effectively on improvements that will help make the USPTO more efficient, responsive, and

transparent to the public. --October 08, 2009 Press Release: USPTO Rescinds Controversial Patent

Regulations Package Proposed by Previous Administration

Page 10: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Ombudsman Pilot Program

• Ombudsman- used when unable to resolve application-processing issue through USPTO's existing channels

– Example, Examiner and SPE do not address new argument or amendment and not returning phone calls.

– Recommended to contact the SPE first.

– Has to concern a specific application.

Page 11: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Ombudsman Pilot Program

• Fill out electronic form at: http://www.uspto.gov/patents/ombudsman.jsp

• When you first speak with Ombudsman, will be asked whether or not you want it to be confidential

– Confidential- Ombudsman will simply log the complaint (log used to look for trends)

Page 12: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Compact Prosecution

• Expanded and Revised 1st Action Interview Pilot Program

• Accelerated Examination

• Revised Examiner Count System

Page 13: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

1st Action Interview

• Had two versions- Original and Enhanced

• Sadly, ended April 1, 2010, but likely implement a similar program in the future.

• Expanded to all art units but had differing filing date requirements

Page 14: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

1st Action Interview• E-File the request for the 1st Action Interview Program

• Restriction- must elect

• Examiner Conducts Prior Art Search and Sends a list of prior art citation to the applicant

• Afterwards, Applicant has to within 1 month or 30 days: File a request not to have a 1st Action Interview Schedule Interview and file proposed

amendments

Page 15: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

1st Action Interview

Page 16: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

1st Action Interview

Page 17: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Accelerated Examination

• Green Technology- still available until December 10, 2010

• Small Entity- still available until June 30, 2010

Page 18: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Accelerated Examination- Green Technology

• Green Technology Pilot Program

• Introduced just before United Nations Climate Change Conference in Copenhagen, Denmark

• 1st 3,000 Green Technology Applications with petition receive accelerated examination

Page 19: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Accelerated Examination- Green Technology• Petition Must be filed before Dec. 10, 2010 (12 Month

Pilot Program)

• What is “Green” technology- application directed to: • environmental quality, • energy conservation, • development of renewable energy

resources or greenhouse gas emission reduction

• What you get- accelerated examination• Advanced out of turn without all of the

requirements of accelerated examination (e.g., ESD, etc.)

Page 20: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Accelerated Examination- Small Entity• Program Apparently Extended to June 30, 2010

• Requirements Small Entity with 2 or more applications Applications filed before October 1, 2009 Expressly abandon one of the applications File a petition for accelerated examination

- ($130 fee waived)

• What you got- accelerated examination• Advanced out of turn without all of the requirements

of accelerated examination (e.g., ESD, etc.)

Page 21: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Revised Examiner Count System

Old System

New System

February 18, 2010

Page 22: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Proposed Procedural Change- Comment Requested

• Deferred Examination (light)– PTO floating “extension” to provisional period through

missing parts procedural change– After provisional, non-provisional filing receives notice

with 12-month non-extendable deadline– Notice demands search/exam fees, surcharge – Ideally, provides applicant with 24 months to decide

whether invention is commercially viable

Page 23: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Proposed Rules

• Non-provisional filing must– Include “basic” filing fee ($330; $165 small-

entity)– Have executed oath/declaration (eventually)– Be without or rescind nonpublication request– Be in condition for publication (37 CFR

1.211(c))

• No “tolling” of 12-month period under Paris Convention

Page 24: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Proposed Rules

• Asserted Advantages– More publications, i.e. provisionals that would

not be filed otherwise, non-provisionals w/o nonpublication requests

– Unneeded applications out of system, relieving applicants’ financial, PTO’s workload burdens

– Focus applicant resources on commercialization rather than non-provisional filing

Page 25: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Proposed Rules

• Potential Downsides– No “tolling” of 12-month period under Paris

Convention– Can get a longer period by filing a PCT

application– Search & Examination Fees are small in

comparison to attorney costs

Page 26: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Appeals

• Controversial Appeals Rules- reopened for comment

• Streamlined Noncompliant Appeal Brief Review Process

• Claims- how to handle appealed and non-appealed rejections/claims

Page 27: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Appeals

• Controversial Proposed Appeals Rules- reopened comments

• Streamlined Appeal Brief Review Process• Chief Judge of BPAI (or his designee) has now sole

responsibility for determining whether appeal briefs comply with regulations, and will complete the

• Hopefully, it will reduce the number of non-compliant appeal briefs

• Use checklist at: http://www.uspto.gov/ip/boards/bpai/procedures/guidance_noncompliant_briefs.jsp

Page 28: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Appeals• Claims Reviewed During Appeal• Proposed rule to treat non-appealed rejected claims

considered canceled.

• Ex Parte Frye: BPAI’s Standard of Review of Examiners’ Rejections

“the Board reviews the particular finding(s) contested by an appellant anew in light of all the evidence and argument on that issue.”

“[i]f an appellant fails to present arguments on a particular issue – or, more broadly, on a particular rejection – the Board will not, as a general matter, unilaterally review those uncontested aspects of the rejection,” and such unasserted arguments may be deemed to have been waived.

Page 29: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Patent Term Adjustment

Page 30: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Quick Patent Term Adjustment Refresher

• 35 U.S.C. §154(b)(1) Periods• (A) Guarantee of prompt USPTO responses- 14 months for

USPTO to send an Office Action or Notice of Allowance (plus various 4 month periods)- Examination Delays

• (B) Guarantee of no more than 3-year application pendency- USPTO fails to issue patent 3 years after actual filing date

• No Double Counting When Periods Overlap• § 154(b)(2)(A) "[t]o the extent that periods of delay attributable to

grounds specified in paragraph (1) overlap, the period of any adjustment granted under this subsection shall not exceed the actual number of days the issuance of the patent was delayed."

Page 31: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Wyeth v. Kappos (Fed. Cir. 2009)

• Issue: When does the overlap occur?• USPTO

• 37 CFR § 1.703(f)- B guarantee period starts at the time of the filing of the application, not 3 years after the filing date.

• You only get the greater of the A or B periods

USPTO – 3 Years PTAOverlap Here

OverlapHere

Filing date

14 mo. date

Office Action issued

3 year date

Issue fee

paid

4 mos. from issue fee payment, patent should issue

Issue date

A Delay

B Delay

A Delay

Page 32: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Wyeth v. Kappos (Fed. Cir. 2009)

• Issue: When does the overlap occur?• Wyeth

• A & B Overlap only occurs after 3 years from the filing date. (A+B Formula)

1 Year USPTO – 3 Years PTA

Filing date

14 mo. date

26 mo. Office Action issued

3 year date

Issue fee

paid

4 mos. from issue fee payment, patent should issue

6 years issue date

A Delay

B Delay

A Delay

Overlap Here

Page 33: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Wyeth v. Kappos (Fed. Cir. 2009)

• Federal Circuit Agrees with Wyeth• "no 'overlap' happens unless the violations occur

at the same time," … "[b]efore the three-year mark, no 'overlap' can transpire between the A delay and the B delay because the B delay has yet to begin or take any effect." However, "[u]nder the PTO’s strained interpretation, B delay can occur anytime after the application is filed," which the Court determined "cannot be reconciled with the language of the statute" (emphasis by panel).

Page 34: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Wyeth v. Kappos (Fed. Cir. 2009)

• Federal Circuit

• A & B overlap only occurs after 3 years from the filing date. (A+B Formula)

1 Year USPTO – 3 Years PTA

Filing date

14 mo. date

26 mo. Office Action issued

3 year date

Issue fee

paid

6 years issue date

A Delay

B Delay

A Delay

Overlap Here

4 mos. from issue fee payment, patent should issue

Page 35: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Wyeth v. Kappos (Fed. Cir. 2009)

• USPTO Response• USPTO will be processing recalculation requests under

an interim procedure that is available to a patentee whose patent issues prior to March 2, 2010, and who requests it no later than 180 days after the issue date.

• This procedure is available only for alleged errors in calculation that are specifically identified in Wyeth.

• Information on requesting a recalculation of patent term is on the USPTO Web site at http://www.uspto.gov/patents/announce/pta_wyeth.pdf.

Page 36: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Wyeth v. Kappos (Fed. Cir. 2009)

• USPTO Wyeth PTA Form PTO/SB/131

Page 37: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Japan Tobacco Petition• USPTO Miscalculating Period B for PCT 371 National Stage Applications

• Originally, USPTO considered the B Period filing date= when an international applications fulfilled the requirements of 35 U.S.C. § 371 (e.g., filed signed Oath/Dec.).

• BUT, 37 C.F.R. § 1.702(b) states that "the term of an original patent shall be adjusted if the issuance of the patent was delayed due to the failure of the Office to issue a patent within three years after the date on which the application was filed under 35 U.S.C. 111(a) or the national stage commenced under 35 U.S.C. 371(b) or (f) in an international application.”

• Section 371(b) states that subject to § 371(f), "the national stage shall commence with the expiration of the applicable time limit under article 22 (1) or (2), or under article 39 (1)(a) of the [PCT].“ = 30 Month Chapter II Deadline

• So the B-Period filing date for 371 national stages should be the 30-Month Chapter II deadline (if filed under 371(b)-- more later)

Page 38: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Japan Tobacco Petition

• USPTO

• USPTO relents- B-delay should be calculated based on the date on which the national stage commenced, not the date on which the requirements of § 371(c) were fulfilled.

Chap II Deadline

(30 Months)

File Signed Declaration- satisfy 371(c)

3-Year B-Period

Page 39: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Japan Tobacco Petition

• PCT Patent Term Landmines

• B-Period Delay Landmine- Early 371 Nationalization• If Nationalize under 371 before 30-month chapter II deadline and

satisfy 371(c) requirements (e.g., pay fees, signed Declaration, etc.), you still need to expressly request early processing under 371(f) to get the nationalization date for B-Delay filing date.

• If not, B-Delay filing date will be based on the Chapter II (30-month) deadline & not the earlier nationalization date.

• Contrast regular utility or bypass CON- B-Period filing date is the actual filing date of the application.

Page 40: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Japan Tobacco Petition

• B-Delay Period Landmine

• Nationalize PCT Application before the Chapter II Deadline- Satisfy 371(c)- file signed declaration, etc.- Expressly request early processing (check

the box on form)

Chap II Deadline

(30 Months)

3-Year B-Period

Nationalize

B-Delay filing date starts before Chapter II Deadline

Page 41: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Japan Tobacco Petition

• B-Delay Period Landmine– Nationalize PCT Application before the Chapter

II Deadline BUT Fail to satisfy 371(c) OR Fail to expressly request early examination

Chap II Deadline

(30 Months)

File Signed Declaration- satisfy 371(c)

3-Year B-Period

Nationalize

B-Delay filing date starts on Chapter II Deadline

Page 42: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Japan Tobacco Petition

• B-Delay Period Landmine- COMPARE

• Instead file via the bypass CON route BUT- Fail to file signed declaration OR- Fail to expressly request early

examination

Chap II Deadline

(30 Months)

File Signed Declaration

3-Year B-Period

Bypass CONFiling Date

B-Delay filing date starts before Chapter II Deadline

Page 43: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Japan Tobacco Petition

• PCT Patent Term A-Delay Landmines

• A-Delay Date is still based on fulfillment of national requirements under 371(c).

• For example, if you do not file a signed declaration when the PCT application is nationalized, you lose A-term until you file the signed declaration.

• Contrast to a regular utility or bypass CON- where you do not lose A-term so long as you file the signed declaration within 3-months of Notice to File Missing Parts

Page 44: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

• A-Delay Period Landmine

• Nationalize PCT application under 371- Fail to file signed declaration with

nationalization

Japan Tobacco Petition

Chap II Deadline

(30 Months)

File Signed Declaration

Nationalize

A-Delay- lose term- until file signed DeclarationLose Term

A-Period

Page 45: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Japan Tobacco Petition• A-Delay Period Landmine- COMPARE

• Instead file via the bypass CON route• Fail to file signed declaration when application filed• File signed declaration 1-month after missing parts deadline

Chap II Deadline

(30 Months)

File Signed Declaration w/ 1-Month EOT + surcharge

Bypass CONFiling Date

DO NOT LOSE ANY DO NOT LOSE ANY A-TERM!A-TERM!

2 Month Deadline For Missing Parts

A-Period

Page 46: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

PCT- 371 Nationalization or Bypass CON?

• What is the best way to nationalize a PCT ?• Answer: Bypass CON!!!

371 Nationalization

Bypass CON

Simplicity

PDX

Patent Term

US Restriction...

Page 47: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Assignments and Ownership

Page 48: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)• Patented Technology

o Method of quantifying HIV virus levels in human blood samples and correlating to the effectiveness of antiretroviral drugs.

•  Historyo One of the named inventors (Holodniy) of the patents at issue

signed a Copyright and Patent Agreement ("CPA") upon joining laboratory at Stanford.

o Holodniy visited Cetus to learn the technology.─ Holodniy signed a Visitor's Confidentiality Agreement

("VCA").o Research for the technology at Stanford was funded by the

National Institutes of Health ("NIH").o Stanford filed the applications for the patents at issue – the

'730, '705 and '041 patents.

Page 49: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)

Page 50: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)

• Procedural Historyo Stanford sues Roche for patent infringement.o Roche: Stanford lacks standing - Roche owns, has a

license for, and/or a shop right on the asserted patents.

• District Courto Roche's ownership was barred by California's statute of

limitation and the Bayh-Dole Act.o Roche's license claims fail because Stanford never

consented to Roche's acquisition of Cetus.o Roche lacked shop right to the patents.

Page 51: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)

• Federal Circuito Although Roche claiming ownership was barred by

California's statute of limitation, under California law, "a defense may be raised at any time, even if the matter alleged would be barred by a statute of limitations if asserted as the basis for affirmative relief" (citation omitted). 

─ Similar reasoning applies to laches and equitable estoppel.

o Thus, Roche can assert its ownership as a bar to Stanford's standing.

Page 52: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)

• Federal Circuito Which law to apply? 

─ Normally questions of ownership are state law issues.

─ Exception: questions of whether a patent assignment clause creates an automatic assignment or merely an obligation to assign - Federal Circuit Law applies. 

Page 53: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)

Page 54: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)

Page 55: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)

• Federal Circuito Was Holodniy's CPA with Stanford an automatic

assignment?─ Language: "I agree to assign and confirm in

writing to Stanford..." is a mere promise to assign.─ Stanford's invention rights policy supports this

conclusion: "Unlike industry and many other universities, Stanford's invention rights policy allows all rights to remain with the inventor if possible."

─ Stanford did not immediately gain title to the inventions.

Page 56: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)

Page 57: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)

Page 58: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)

• Federal Circuit o Was Holodniy's VCA with Cetus an automatic

assignment?─ Language: "I will assign and do hereby assign to

CETUS..." is a present assignment of Holodniy's future inventions.

─ Cetus immediately gained equitable title to Holodniy's inventions.

─ Cetus's equitable title converted to legal title when the parent application was filed on May 14, 1992.

─ This negated Holodniy's subsequently executed assignment to Stanford (May 4, 1995) because Holodniy no longer retained any rights.

Page 59: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)

Page 60: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)

Page 61: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)

• Federal Circuit o Was Stanford a Bona Fide Purchaser (BFP) under

35 USC § 261?─ "An assignment, grant or conveyance shall be

void as against any subsequent purchaser or mortgagee for a valuable consideration, without notice, unless it is recorded in the Patent and Trademark Office within three months from its date or prior to the date of such subsequent purchase or mortgage." 35 USC § 261

o Stanford was charged with notice of its employees' assignments (the VCA).

o Stanford was not a BFP.

Page 62: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)

Page 63: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)

Page 64: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)

• Bayh-Dole Act- 35 USC § 200+o US Government to take title under certain conditions.o The "contractor" universities or inventors can retain ownership

if US Government does not.

• Stanford (and District Court): Bayh-Dole allowed Stanford a "right of second refusal" after Government refrained to exercise its rights.o Holodniy could only keep title if Stanford did not elect to retain

title.

• Federal Circuit o Bayh-Dole does not void prior contractual transfers of rights.o Thus, Bayh-Dole did not automatically void the patent rights

Cetus received from Holodniy. 

Page 65: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)

• Federal Circuito Roche declaratory judgment of ownership barred by

California's statutes of limitation.o Stanford lacks standing because it cannot establish

ownership of Holodniy's interest.

Page 66: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Stanford v. Roche (Fed. Cir. 2009)

• Take Home Points:o Review the language in your assignments to make sure

that it contains a present assignment of patent rights. ─ "I do hereby assign"

o When collaborating, make sure that employees do not sign anything unless it is reviewed.

Page 67: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Inequitable Conduct

Page 68: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Therasense v. Becton Dickinson (CAFC 2010)

'551 PatentAllowed

'551 PatentMembraneless

Biosensor

USPTO '382 Patent

EPO

UnrelatedUSPTO

'636 PatentEPO

Counterpart

Anticipate/ Anticipate/ ObviousObvious

Affidavit/Resp.'382 Patent

Requires Membranefor Whole Blood Resp. in Revocation

ProceedingMembrane is optional

for Whole Blood

Statements Statements Never Cited Never Cited to USPTOto USPTO

Page 69: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Therasense v. Becton Dickinson (CAFC 2010)

• Federal Circuit- Failure to Cite EPO Statements was material- Inequitable Conduct

– “Applicant’s earlier statements about prior art, especially one’s own prior art, are material to the PTO when those statements directly contradict the applicant’s position regarding that prior art in the PTO. 37 CFR 1.56(b)(2) In any event, the representations to the PTO were not merely lawyer argument; they were factual assertions…of those skilled in the art provided in affidavit form.”

Page 70: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Therasense v. Becton Dickinson (CAFC 2010)

• Dissent (Judge Linn) – “The question for purposes of materiality here is not whether Abbott’s arguments to the PTO were meritorious (i.e., that the word “preferably” in the ‘382/’636 patent would actually have been interpreted…to mean “required”); rather, the question is whether anything in Abbott’s EPO submissions “refutes, or is inconsistent with,” its arguments to the PTO. Even if this information were material, however, the individuals who owed a duty of disclosure to the PTO produced a good faith explanation as to why they withheld the EPO submissions…Such an explanation will defeat a charge of inequitable conduct if it is “plausible”.” “The question, thus, is not whether it is plausible that the information is immaterial – a question asked under the objective materiality prong- but rather, whether it is plausible that the individuals subjectively believed that the reference was immaterial at the time they withheld it – a question presented under the subjective intent prong.”

Page 71: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Therasense v. Becton Dickinson (CAFC 2010)

• New- Being reviewed en banc (April 26, 2010 order)

• Six questions to be briefed:

• 1. Should the materiality-intent-balancing framework for inequitable conduct be modified or replaced?

• 2. If so, how? In particular, should the standard be tied directly to fraud or unclean hands? [citations omitted] If so, what is the appropriate standard for fraud or unclean hands?

• 3. What is the proper standard for materiality? What role should the United States Patent and Trademark Office’s rules play in defining materiality? Should a finding of materiality require that but for the alleged misconduct, one or more claims would not have issued?

Page 72: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Therasense v. Becton Dickinson (CAFC 2010)

• Six specific questions to be briefed:

• 4. Under what circumstances is it proper to infer intent from materiality? See Kingsdown Med. Consultants, Ltd. v. Hollister Inc., 863 F.2d 867 (Fed. Cir. 1988) (en banc).

• 5. Should the balancing inquiry (balancing materiality and intent) be abandoned?

• 6. Whether the standards for materiality and intent in other federal agency contexts or at common law shed light on the appropriate standards to be applied in the patent context.

Page 73: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Ethics

Page 74: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Ethics

• Indiana is Revising its Rules Regarding Attorney Advertising

• Not yet implemented

• Some Key Areas• Clarifies the Specialty Language in Rule 7.4- e.g., “Patent

Attorney” or “Proctor in Admiralty”• Use of Trade Names with field of law, geographic location,

and language proficiency will be allowed

Page 75: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Ethics- Old Rule• 7.4 Communication of Specialty Practice• When communication otherwise meets the requirements of Rules,

7.2, 7.3, and 7.5, a lawyer may:• (a) communicate the fact that the lawyer does or does not

practice in particular fields of law, but may not express or imply any particular expertise except as otherwise provided in Rule 7.4(b)

• (b) communicate that the lawyer is certified as a specialist in a field of practice when the certification and communication are authorized under Admission and Discipline Rule 30 [regarding Continuing Legal Education in Indiana].

• (c) Notwithstanding subsection (b), a lawyer admitted to engage in patent practice before the United States Patent and Trademark Office may use the designation “Patent Attorney” or a substantially similar designation, and a lawyer engaged in Admiralty practice may use the designation “Admiralty,” “Proctor in Admiralty” or a substantially similar designation.

Page 76: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Ethics- New Rule• 7.4 Communication of Specialty Practice• (a) A lawyer may communicate that the lawyer does or does not

practice in particular fields of law.• (b) A lawyer admitted to engage in practice before the United States

Patent and Trademark Office may use the designation “Patent Attorney” or a substantially similar, non-misleading, designation.

• (c) A lawyer engaged in Admiralty practice may use the designation “Admiralty,” “Proctor in Admiralty” or a substantially similar, non-misleading, designation.

• (d) A lawyer shall not state or imply that the lawyer is certified as a specialist in a particular field of law, unless:

• (1) The lawyer has been certified as a specialist by an Independent Certifying Organization accredited by the Indiana Commission for Continuing Legal Education pursuant to Admission and Discipline Rule 30 [regarding Continuing Legal Education in Indiana]; and,

• (2) The certifying organization is identified in the communication.• (e) [ Indiana Commission for CLE vested with authority to accredit

Independent Certifying Organizations mentioned in (d)(1) ]

Page 77: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Ethics- Old Rule• 7.5 Professional Notices, Letterheads, Offices, and Law Lists• (a) A lawyer or law firm shall not use or participate in the use of

professional cards, professional announcement cards, office signs, letterheads, telephone directory listing, law lists, legal directory listings, or a similar professional notice or device if it includes a statement or claim that is false, fraudulent, misleading, deceptive, selflaudatory or unfair within the meaning of or that violates the regulations contained in Rule 7.2.

• (b) A lawyer shall not practice under a name that is misleading as to the identity, responsibility, or status of those practicing thereunder, or is otherwise false, fraudulent, misleading, deceptive, self-laudatory or unfair within the meaning of Rule 7.2, or is contrary to law. In that it is inherently misleading, a lawyer in private practice shall not practice under a trade name. However, the name of a professional corporation or professional association may contain “P.C.” or “P.A” or similar symbols indicating the nature of the organization, and if otherwise lawful a firm may use as, or continue to include in, its name, the name or names of one or more deceased or retired members of the firm or of a predecessor firm in a continuing line of succession.

Page 78: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Ethics- New Rule• 7.5 Firm Names and Letterheads• (a) A lawyer shall not use a firm name, letterhead or other

professional designation that violates Rule 7.2. A trade name may be used by a lawyer in private practice if it does not imply a connection with a government agency or with a public or charitable legal services organization and if it is not otherwise in violation of Rule 7.2 Trade names are subject to the following requirements:

• ...• (3) Words that identify the field of law in which the firm

concentrates its work, words that describe the geographic location of its offices, and words that indicate a language fluency may be used, so long as the firm name includes the name of a lawyer, or the name of a deceased or retired member of the firm, or of a predecessor firm in a continuing line of succession, as set forth in subparagraph (2) above.

Page 79: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Ethics- New Rule• Comment:• [1] A firm may be designated by the names of all or some of its members,

or of deceased members where there has been a continuing succession in the firm’s identity. A trade name may also include words identifying the field of law in which the firm concentrates it work, the geographic location of its offices and words that indicate a language fluency. Examples would be “De la Mirada Employment Law Firm of Greenwood” written in Spanish, or “Anderson’s Auto Accident Law, P.C.,” assuming that De la Mirada and Anderson are or have been members of these respective firms. A lawyer or law firm may also be designated by a distinctive website address or comparable professional designation. Although the United States Supreme Court has held that legislation may prohibit the use of trade names in professional practice, use of such [trade] names in law practice is acceptable so long as it is not misleading. If a private firm uses a trade name that includes a geographical location such as “Springfield Legal Clinic,” an express disclaimer that it is not a public legal aid agency may be required to avoid a misleading implication, furthermore the name of the firm must also include the name of at least one of its members or deceased members. ...

Page 80: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Ethics- New Rule• Potential New Law Firm Name Under

Proposed Rules:

Doll and Schmal Patent and Trademark Law Firm of Indianapolis, LLP

Page 81: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Other Notable Cases

• Ariad Pharmaceuticals, Inc. v. Eli Lilly & Co. (Fed. Cir. 2010, en banc)• Written Description and Enablement are Separate

Requirements

• European Patent Office Rules

• Bilski- TBD

Page 82: Indianapolis Bar Association: 2009-2010 Year in Review Patent Law and Practice Chuck Schmal Sponsored by the Intellectual Property Law Section

Want to know more?Chuck SchmalPatent Attorney

Woodard, Emhardt, Moriarty, McNett & Henry LLPChase Tower

111 Monument Circle, Suite 3700Indianapolis, IN 46204

[email protected]