An Introduction to Patent

Legally, a patent is defined as a right to exclusive use of an invention.
• A patent for an invention is a grant of a property right to the inventor, issued by a Patent Office.
• In particular, the rights to exclude others from doing any of the following:
• Making . . . . . . . . a product that infringes your patent
• Using . . . . . . . . . a product that infringes your patent
• Selling . . . . . . . . a product that infringes your patent
• Offering to sell . . a product that infringes your patent
• Importing . . . . . . a product that infringes your patent
• Generally, the term of a new patent is 20 years.
• A patent is a territorial right.

Benefits of Patent
• Barrier to Entry
• Prevent second sourcing of product
• Ammunition against infringement

Few examples of money making patents
§ BIDIRECTIONAL PRINTER
§ DISKETTE
§ PRODIGY – OBJECT ORIENTED PROGRAMS
§ CRYPTOGRAPHY
§ CONSUMER BILL PAYING
§ DRIVE AND MEDIA DETECTOR
§ DIRECT MEMORY ACCESS
§ PARAGRAPH INDENTING
§ CURSOR CHANGING SHAPE AS IT MOVES
§ SIMULTANEOUS DISPLAY

Patent Strategies
Defensive:
• To protect against patent law suits
• Deterrent for competitors to infringe and sue

Offensive:
• To generate revenue out of one’s IP
• Barrier to entry
• Bartering

Companies also patent to get established as industry leader

Examples of Software Patentable Inventions
Graphical User Interface
Communication Protocols
Architecture Algorithms
Business Methods
Artificial Intelligence
Database and Data Structures


• For a technology organization, it is important to patent processes and tools which become unique business differentiators
• There is lot of IP intensive work done in the CoEs and technology domains in several organizations
• It is important to patent such IP and sell them to customers as unique solutions
• Even the patents on the enterprise end can be offered to the customers as part of an entire suite
• An IP more relevant for our customers should be patented for the customers thus confirming our belief in “Customer Value Management”
• A rich patent portfolio acts as a USP in customer wins for an organization

How a patent is different from an invention?
An invention is nothing more than a “solution to a problem”
If you have solved a problem – you have made an invention
e.g.
How did you make the circuit run faster?
What algorithm solved the problem?

Legal Requirements for Patent-ability
Novelty of the subject matter
Subject Matter
Non-Obviousness
• At the time the invention was made
• To a person having ordinary skill in art
Usefulness

Patent-ability Criteria for Software Patents
It should be tied to computer
Need some real world application
Software is patented as part of a process, as part of an apparatus
(with software embedded therein for a specific function in the apparatus)
Useful, concrete and tangible output
It can also be a software business method


Identifying whether a software invention is patentable or not
Performs independent physical acts (post computer process or activity)
A series of steps to be performed on a computer
Does it merely manipulate problem without any limitation to a practical application
Manipulate data representing physical objects or activities to achieve a practical application
A combination of existing technologies / products to come up with a new functionality (Examples)

Evaluate Business worthiness of invention
Are there ways to work around it?
Is it relevant for organization's line of business?
Is it desirable? Would others be willing to pay royalty for this?
Are there any alternatives (or is there a lack of alternatives)?
Does it have high licensing vale?
Is this an easy to detect invention?
Do other people also face similar problems?

Patent database locations
US Patents Database: http://uspto.gov/
European Patents Database: http://ep.espacenet.com

Duties of an inventor
• Early is Best (File it at the earliest possible date)
   • US is a first to invent system
   • One year grace period in US only
   • Rest of the world is first to file system (no grace period)
• Evidence of Date of Invention
    • Interference – Who Invented First?
• Bars of getting a patent
   • Show without restriction, offer for sale, publish
• Duty of disclosure
   • Disclose Prior Art, known references and publications
   • Teach how to practice the invention including the best mode
• Avoid disclosing the idea/invention to outsiders
   • If required to be discussed with an outsider (e.g. Customers), use a Non Disclosure Agreement (NDA)
• Failure to meet these obligations can result in forfeiting the patent