Source: http://www.inhouselawyer.co.uk/practice-areas/intellectual-property-third-edition/united-states-intellectual-property-3rd-edition/
Timestamp: 2019-12-09 21:50:14
Document Index: 207812681

Matched Legal Cases: ['§ 506', '§ 2320', '§ 1831', '§ 1832', '§ 101', '§ 102', '§ 103', '§ 112', '§ 285']

United States: Intellectual Property (3rd edition)
Patents are granted to any new and useful machine, process, or composition of matter, or any new and useful improvement thereof. A patent is issued by the US Patent and Trademark Office (USPTO). A patent grants the owner the right to exclude others from practicing the claimed invention (i.e., making, using, offering to sell, selling, or importing a patented invention in the U.S.). There are three types of patents: utility, design, and plant.
Laws of nature and abstract ideas are generally not patentable, as well as non-functional descriptive materials like books or music.
Trade secret protection is available for information that derives economic value from not being generally know or readily ascertainable to third parties who would economically benefit from knowing the secret information. Trade secret protects, e.g., formulas, patterns, compilations, programs, devices, methods, techniques, or processes. To obtain trade secret protection, the subject matter at issue must be used in business and provide an opportunity to obtain economic advantage over competitors without the information. Furthermore, the trade secret holder must implement measures to maintain secrecy. Trade secret protection is not available if the holder fails to implement such measures, the trade secret becomes released or otherwise generally known, or if the information is independently discovered by another.
Trademark protection is available for a word, phrase, symbol, or design, or any combination of these that identifies and distinguishes the source of the goods from others. Similarly, a service mark identifies and distinguishes the source of services from others.
A trademark owner can obtain protection through registration or use in a particular geographical area (“common law” rights). Registration of a mark with the USPTO provides a nationwide protection while common law rights are limited to the particular geographical area in which the mark is used.
Passing Off / Unfair Competition
Passing off occurs when a seller of goods or services misleads the public to think that its product or services are from another party. Reverse passing off occurs when a seller misleads the public to think that another party’s goods or services are its own. The rules regulating passing off and reverse passing off are governed by state, as opposed to federal, law.
Collective marks are essentially trademarks for cooperatives, associations, or collectives (e.g., unions, associations, or other organizations) to indicate their membership. A collective mark applicant must establish a proper basis for filing, either through actual use in commerce or bona fide intent to use the mark in commerce. The applicant must also specify the class of people who can use the mark, describe their relationship to the applicant, and state the nature of the applicant’s control or intended control over the use of the mark.
A certification mark is any word, symbol, device or combination that people other than the applicant can use. Specifically, certification marks are used to certify certain qualities of the users’ products or services, such as the geographic origin, material or mode of manufacture, quality or accuracy, conformity with certain standards or tests of competency. Certification marks do not indicate commercial source or distinguish goods or services of one person from another person but rather indicate that the goods/services of authorized users are certified as to a particular aspect of the goods/services.
To obtain a certification mark, an applicant must establish standards, prove objectivity, exclusivity of use, and non-discrimination.
Geographical indications identify a good as originating in a territory of a WTO member or a region or locality in that territory where a desirable quality, reputation or characteristic of a good is attributable to the geographic origin.
(c) Other creations, technology, and proprietary interests
Copyright protects works of authorship fixed in a tangible medium of expression. Copyright includes the right to reproduce and make copies of an original work, prepare derivative works based on the original work, distribute copies to the public by sale or another form of transfer, publicly perform the work, publicly display the work, and perform sound recordings publicly through digital audio transmission. Copyright registration with the US Copyright Office is optional because copyright arises as soon as an author creates an original work of authorship in a fixed medium. But only registered copyrights are enforceable through litigation.
Design patents protect ornamental features of an article of manufacture. For example, design patents can protect configuration or shape of a manufactured article or its surface ornamentation. Design patents do not protect features that serve structural or utilitarian features.
Graphic designs are copyrightable if they are original works fixed in physical objects, such as paper, signs, articles of clothing or digital media.
Semiconductor Topography Rights (Mask Work)
One can register a mask work with the US Copyright Office, including three-dimensional pattern of metallic, insulating, or semiconductor material. Rights granted to a mask work include the right to reproduce the mask work and distribute an integrated circuit made using the mask work.
Plant patents protect inventions or discoveries and asexually reproduces a distinct and new variety of plant, other than a tuber propagated plant or a plant found in an uncultivated state. To be eligible for a plant patent, the subject plant must have been created through breeding or other human efforts. Plant patent matters are governed by the federal law and must also satisfy the general patentability requirements.
Non-patent intellectual property protection is available for new varieties of seeds and tubers through the US Department of Agriculture’s Plant Variety Protection Office (PVPO). The PVPO examines new applications and grant certificates that protect varieties for 20 years (25 years for vines and trees). Certificate owners obtain rights to exclude others from marketing and selling their varieties, manage the use of their varieties by other breeders, and receive legal protections.
Databases are eligible for copyright protection as compilations. But, under the Copyright statute, the compilation must consist of pre-existing materials or data that are selected and compiled in a way that constitutes an original work of authorship. The underlying facts themselves are not protected.
Utility and plant patents 20 years from the filing date of the earliest non-provisional U.S. or international (PCT) application to which priority is claimed
Design patent · Applications filed on or after May 13, 2015: 15 years from issuance
· Applications filed before May 13, 2015: 14 years from issuance
Trade Secret Perpetual if requirements for trade secrets are met
Trademark Perpetual if used in commerce and maintenance requirements are met
Copyright · Works created after January 1, 1978: 70 years after the death of the author
· Works made for hire: 95 years from the year of its publication or 120 years from the year of its creation, whichever expires first
Mask work 10 years from the date on which a mask work is registered or it is first commercially exploited anywhere in the world, whichever occurs first
In general, the first owner of a patent or copyright is the inventor, designer, or author who created the work. The first owner of a trademark is one who first uses the mark in commerce.
Under the “work made for hire” doctrine codified in the Copyright statute, a designer or author’s copyright may transfer to the employer if the requirements are met. While no similar codified law exists for patents and trademarks, employers and employees can sign contracts containing a “work made for hire” provision, which assigns the employee’s rights to patents or trademarks to the employer.
Patents (utility, design, and patent by the USPTO), registered trademarks (by the USPTO), registered copyright (by the US Copyright Office), and registered mask works are registered rights (by the US Copyright Office).
The inventor or anyone to whom the invention has been assigned or is under an obligation to assign the invention can file a patent application with the USPTO. Officers and employees of the USPTO are prohibited from applying or acquiring a patent.
An applicant can file a patent application with the USPTO directly or indirectly through a registered patent agent or patent attorney. For a utility patent, the applicant may file a provisional application to obtain a priority date to the invention but must subsequently file a non-provisional application within a year of the provisional filing date. If the non-provisional application meets the patentability requirements, the USPTO will issue a patent. If the application fails to meet certain requirements, a patent examiner will issue an office action identifying deficiencies in the application and/or claims in the form of objections and/or rejections. For example, the examiner may reject the claims of a patent application based on many grounds, including lack of novelty or failing to differ only in an obvious manner from what can be found in the prior art. The examiner may also issue a rejection for a lack of written description or failing to enable the claimed subject matter. The applicant must respond and cure problems with the application with the prescribed time limit. It is common for all or some of the claims of the application to be rejected or objected to in an office action. Applicants are rarely granted as filed. After the patent issues, the patent owner must pay maintenance fees to keep the patent alive.
Anyone, whether a person or an entity, who uses a mark in commerce or intends to use a mark in commerce can apply for a trademark. Of note, a foreign-domiciled applicant must be represented by a licensed U.S. attorney. A domestic applicant domiciled in the U.S. need not be represented by a licensed U.S. attorney, but the USPTO strongly encourages all applicants to hire an attorney who specializes in trademark law.
To obtain a trademark, a trademark applicant must file an application with the USPTO. The application should identify a mark format (i.e., a standard character mark, a stylized/design mark, or a sound mark) and goods and/or services to which the mark will apply. The application should also identify a proper filing basis, whether actual use or intent to use the mark in commerce. Before filing an application, however, the applicant should search the USPTO database to see if anyone has already claimed trademark rights in the wording or design of the mark of interest. Each application is assigned to an examining attorney at the USPTO, who reviews the application. If the application meets the requirements, the examining attorney will register the mark. If it fails to meet certain requirements, however, the examining attorney will issue an office action, explaining the grounds for rejection. The applicant must timely respond to the letter and cure the problems that prompted the office action. After registration, the registrant must file specific maintenance documents to keep the trademark alive.
Anyone who is the author of the original work or has obtained rights from the author can register copyright with the US Copyright Office.
To obtain copyright, an applicant must submit a completed application form, a non-refundable copy or copies of the work to be registered. The application can be filed electronically through the Copyright Office website. The applicant can submit an electronic copy of the work in a CD-ROM.
To register a mask work, an applicant must submit an application with the US Copyright Office. To secure protection, the mask work registrant must submit the application within two years after the date on which the mask work is first commercially exploited.
The length of the registration procedure varies depending on the right and the subject matter of the application. Applications that prompt rejections from the USPTO or the Copyright Office have longer processing time than those that are not rejected.
Patents: Approximately 22 months from the filing date
Trademarks: Approximately 6 months to a year
Copyrights: Approximately 4 months to 28 months
Patents: Using a preissuance submission, a third party may submit patents, published patent applications, or other printed publications of potential relevance to the USPTO with a concise description of their relevance to the examination. Such submission may be made (1) before 6 months after the application at issue is published or before the date of a first office action on the merits rejecting any claims, whichever comes later; or (2) before the date of a notice of allowance, if the notice issues before (1).
A protest can also be filed by any member of the public against a pending patent application. Any information which would make the grant of the patent improper can be relied upon in a protest. A protest must be served and filed prior to the date the application is published or the date a Notice of Allowance is mailed, whichever occurs first. The only exception to this is if one obtains consent of the applicant, a protest may be filed during prosecution of the application.
Trademarks: When an examining attorney preliminarily approves a trademark application, the application publishes for 30 days, during which any member of the public can oppose the mark. An opposer must show a real interest in the proceedings and a reasonable basis for believing that the registration will cause damage. Permissible grounds for opposition are likelihood of confusion or mere descriptiveness.
Copyrights: There is no formal process for a third party to partake or comment on the registration of copyright. Once a registration certificate issues, however, a third party may file a petition to the Copyright Office to correct any error on the certificate.
If the maintenance fee is paid within 6 months of the deadline, then the patent holder must pay a surcharge of $160, $80 for a small entity, or $40 for a micro entity. If the patent holder fails to pay within six months of the deadline, then the patent will expire. If it expires, the patent holder can file a petition to revive the expired patent. To revive the expired patent, the patent holder’s failure to pay the maintenance fee on time must have been unintentional.
Failure to file Section 8 declaration will result in cancellation of the registration. If the applicant missed the filing dates of the Section 8 declaration or Section 9 application, then the applicant must file a new registration application to reclaim the cancelled trademark.
Assigning ownership of Intellectual Property rights operates generally as a contract. To assign a patent, trademark, or copyright, the assignment should: 1) be in writing; 2) clearly identify the parties; 3) identify the patent, trademark, or copyright; and 4) recite exchange of consideration, though the consideration can be nominal. In addition, if the assignment is with an individual rather than a corporation, it is recommended that the agreement be notarized. With respect to trademarks, the assignment must also include the goodwill associated with the mark.
A party may assign its entire interest or a share to another party. A party may also assign its rights in a patent for a geographic region.
Under U.S. law, there are no formal requirements for a license of IP. Licenses can be granted both in writing and orally. Moreover, licenses can be implied in certain circumstances based on the conduct of the parties.
Different types of IP may also require specific provisions. With respect to trademark licenses, the license must generally include provisions providing for quality control of the licensee’s products. Failure to provide for adequate quality control can result in a “naked license,” which can lead to loss of trademark rights. Agreements involving trade secrets obviously need to include confidentiality provisions to maintain the trade secret. Most licenses will also include provisions regarding consideration, scope of the license (products and territories), termination, etc.
There is no requirement to register a license of patents, trademarks, or copyrights. Moreover, recordation of such a license will have no legal effect.
Exclusive and non-exclusive licensees are given different rights for enforcement. A non-exclusive license is generally just a covenant not to sue the licensee for infringement. Therefore, the licensee has no inherent property right and no right to enforce the property.
An exclusive licensee may be granted the right to enforce the IP right. But typically, the exclusive licensee will have to sue jointly with the IP owner. If the exclusive license represents a transfer of "all substantial rights" in the property, and is therefore tantamount to an assignment, the exclusive licensee sue on its own. For trademarks, a non-exclusive licensee has been found to have standing to sue when the licensee is the exclusive distributor for a product sold under the trademark.
Criminal sanctions are available for certain types of copyright and trademark infringement, but not available for patent infringement. For copyright, 35 U.S.C. § 506(A) governs when criminal sanctions are appropriate. Under the statute, a party may be criminally charged when a person wilfully reproduces or distributes a work for purposes of commercial advantage or private financial gain.
Trademark enforcement is still primarily civil, but a party may be criminally liable under 18 U.S.C. § 2320(d)(1). This statute is reserved for trademark infringement connected to trafficking goods or services using the infringing mark, such as counterfeiting.
Trade Secret misappropriation can also be prosecuted as a criminal offense. Under 18 U.S.C. § 1831, trade secret misappropriation is punishable if it is done to benefit a foreign government, instrumentality, or agent. Common commercial theft or trade secret misappropriation, however, is punishable under 18 U.S.C. § 1832.
For patent and copyright issues, federal courts are the main jurisdiction to decide substantive issues of law. State courts, which exist in parallel to the federal courts, can decide issues such as ownership of the intellectual property, assignment, and license disputes. For trademark and trade secret disputes, an owner can pursue civil action in federal or state court depending on the rights they are seeking to enforce.
Owners may also pursue action at the International Trade Commission to exclude the importation of goods involved in “unfair methods of competition,” encompassing each of the intellectual property rights described in section A. Although not enforcement, but related to patent litigation, a party may also challenge the validity of a patent at the USPTO. For alternative dispute resolution, the U.S. code does provide a “voluntary arbitration” provision, but ADR may be included in an agreement.
For District Court proceedings, the length of patent litigation varies depending on the jurisdiction and complexity of the case. On average, cases take over two years to reach trial after filing the complaint. On average, trademark, copyright, and trade secret cases generally take slightly less than two years from filing the complaint to reach trial. The average cost of bringing a civil claim in federal court varies depending on the complexity of the case and the overall value of the property.
Federal and state courts can hear various IP disputes depending on the right and the substance of the complaint. For federal courts, filing a complaint starts the litigation process. After the Defendant answers the complaint, the court will hold a Case Management Conference where the schedule leading up to trial is established. Next, the parties engage in discovery where each side exchanges information followed by expert discovery where the parties exchange materials and reports developed by technical experts. After discovery has closed, the parties engage in motion practice to resolve evidentiary issues before trial during pre-trial proceedings. Last, the trial is held followed by post-trial proceedings. The complexity of facts can affect the time to judgment, but typically a case can be resolved from start to finish in approximately two years.
The type of relief customarily requested is monetary and injunctive relief When a trial court decision is final, issues may be appealed to the appropriate Court of Appeals, which for patent cases is the Court of Appeals for the Federal Circuit, and for other non-patent cases can be the regional appellate court.
The International Trade Commission (ITC) is a government agency that determines if goods that are being imported or exported violate IP protections under U.S. law. If an action is filed with the ITC, the party can ask for an exclusion order which would prohibit the infringing goods from being exported or imported into the U.S. U.S. Customs and Border Protection enforces ITC exclusion orders at the various ports of importation in the United States.
In the United States, there are no mandatory non-court enforcement options for IP disputes.
Parties are able to settle a dispute any time during the litigation. The parties’ settlement can take the form of a customary IP license or agreement. Private parties also frequently use binding arbitration or voluntary mediation to settle intellectual property disputes.
a ) Is there a technical judge, a judge with technical experience, a court appointed expert, an expert agreed by the parties, and/or parties' expert witness evidence?
Parties normally employ their own experts that help inform the court about technical issues. There is no technical judge, however, some judges do have technical backgrounds. Due to the rules regarding jurisdiction, certain judges have more experience with IP specific disputes than others. The collection of knowledge normally develops when a jurisdiction is home to a certain industry, or where many companies are incorporated, like Delaware.
b ) What mechanisms are available for compelling the obtaining and protecting of evidence? Is disclosure or discovery available?
In the United States, the parties may compel the opposing party to reveal any relevant information they have, subject to only limited protection for attorney-client privileged and confidential information. The discovery process is designed to prevent surprises when the parties reach trial. Privileged evidence typically applies to information shared between a client and their attorney, or material that is prepared in view of litigation. This evidence should be properly marked and designated as privileged under attorney client or work product.
Before trial, parties can make preliminary motions to exclude or restrict the use of certain evidence. For example, parties can make a “Daubert motion” to keep the fact finder from hearing certain proposed expert witness testimony. Parties can also make a “motion in limine” to exclude or restrict other factual evidence.
During trial, each party can enter evidence relevant for the fact finder. Each party can offer documentary or testimonial evidence through live witnesses. The evidence can be scrutinized by the opposing party through cross-examination at trial, or through the introduction of other evidence that may reduce its weight.
For example, if a witness gives direct testimony, he or she will be subject to cross-examination from the opposing party. Additionally, if documentary evidence is introduced, the opposing party may introduce evidence that negates the documentary evidence, or which might reduce the relevancy of the documents. This practice normally forces the judge or jury to make a credibility determination before deciding on the merits. Additionally, to the extent the court plans to accept designated deposition testimony into evidence, the court will also allow the opposing party to introduce counter-designated testimony, placing the designated deposition testimony in proper context.
Patents: The most common defenses to patent infringement include showing that a defendant does not literally infringe the elements of the claim (in other words, that not every element of the claimed invention is present in the challenged product), or that the patent itself is invalid and thus cannot be enforced.
Trademarks: A common defense to allegations of trademark infringement is showing that the accused infringing mark is different enough from the registered mark to not result in consumer confusion. Also common is showing that the trademark itself is not a protectable mark because it has become generic or lacks other characteristics of registrability. Depending on the context, an accused infringer may also be able to show that their use of a mark is protected speech under the First Amendment of the U.S. Constitution.
Copyrights: Common defenses to copyright infringement include showing that the matter alleged to have been copied was not actually copyrightable (for example that it lacked originality), or that accused infringing use was actually “fair use.” A fair use defense depends on the purpose and character of the use, including whether the use is commercial or educational purposes, the nature of the copyrighted work, the amount of the copied work in relation to the whole, and the effect on the market for or value of the copyrighted work. In certain contexts, an accused infringer may be able to show that their use is protected speech under the First Amendment of the U.S. Constitution.
Trade Secrets: Defenses to charges of trade secret misappropriation include showing that the material that is subject to the trade secret was publicly known or otherwise disseminated by the plaintiff (for example by showing that a product available on the market can be reverse-engineered). Additionally or alternatively, a defendant may be able to show independent development of the product.
Patents: Accused infringers can challenge patent rights as a defense. Third parties can also challenge patent rights in proceedings before the United States Patent and Trademark Office through the use of ex parte reexamination, inter partes review, post grant review, and to a limited extent covered business method review.
Trademarks: Accused infringers can challenge trademark rights as a defense. Third parties can also challenge trademark rights in proceedings before the United States Patent and Trademark Office through the use of cancellation proceeedings.
Copyrights: Certain rights to copyrightable material attach as soon as a work is completed. However, an accused infringer may challenge the registrability of a copyright in legal proceedings.
Trade Secrets: Generally, and as a practical matter, accused infringers will challenge the sufficiency of trade secrets during legal proceedings.
Patents: Patent rights can be challenged in federal district court, at the U.S. Patent and Trademark Office, or at the International Trade Commission which deals in importation of allegedly infringing goods. As a procedural matter, challenges to patent rights in court or at the International Trade Commission occur as defense to infringement. Affirmative challenges at the U.S. Patent and Trademark Office can take the form of requests for post-grant proceedings to cancel patent rights. A patent may be invalidated or not issued if it is found not to conform with statutory requirements such as not directed to patentable subject matter (35 U.S.C. § 101), not being new or novel (35 U.S.C. § 102), obvious over the prior art (35 U.S.C. § 103), or failing to properly describe or enable the invention (35 U.S.C. § 112).
Trademarks: Trademark rights can be challenged in court, at the U.S. Patent and Trademark Office, or at the International Trade Commission. At the time of proposed registration, a party can file an opposition. After a grant, a party can file for cancellation of a mark. In defense to a charge for infringement, a party can challenge the trademark registration. To show that a trademark should be cancelled, a challenger must show that the mark fails to meet statutory requirements.
Copyrights: Generally, a challenge to copyrights occurs in response to allegations of infringement. A party may challenge a copyright by showing that it fails to meet common law or federal requirements for copyrightable material (for example, the alleged rights are actually to the particular utility of a copyright and not the work itself).
Trade Secrets: Challenges to trade secrets occur in response to allegations of misappropriation, in state or federal court as well as the International Trade Commission.
In general, obtaining a license to use particular intellectual property will limit the ability of the owner to file an infringement suit against a defendant. If a party is accused of infringement of an intellectual property right, that may be sufficient to trigger a case or controversy such that a court of competent jurisdiction will hear and adjudicate an affirmative declaratory judgment claim for non-infringement or invalidity of the challenged intellectual property right.
The costs of a proceeding vary greatly depending on the type of the proceeding, its complexity, and forum, among other things. In general, administrative proceedings tend to have lower total costs than litigation in court or the International Trade Commission. Under the American Rule of attorneys’ fees, each party bears their own costs for attorneys’ fees except under special circumstances where a party may be able to seek payment for its attorneys’ fees. For example, in patent cases, under 35 U.S.C. § 285, a “court in exceptional cases may award reasonable attorney fees to the prevailing party.” What constitutes an “exceptional case” is dependent upon the specific facts of a case, but can include taking unreasonable litigation positions or vexatious increases in litigation costs.
Brian Kacedon, Partner
brian.kacedon@finnegan.com
adriana.burgy@finnegan.com
Marcus Childress, Associate
marcus.childress
@finnegan.com
Samhitha Medatia, Associate
samhitha.medatia
Christina Yang, Associate
christina.yang@finnegan.com