Posts Tagged ‘litigation’

What good are patent method claims?

Wednesday, April 8th, 2009

Many inventors and companies wonder about the value of method claims in patent applications. Conventional wisdom holds that it’s typically harder to detect and to prove infringement of a method claim than it is for an apparatus or composition claim. Why, then, would you want to include such claims in an application directed at an apparatus/composition “invention?”

I can think of several reasons, but learned of another after reading the Federal Circuit’s decision in Crown Packaging Technology v. Rexam Beverage Can (08-1284). The district court had dismissed the defendant’s infringement counterclaim for failure to comply with the marking requirement of 35 U.S.C. § 287(a). The Federal Circuit reversed the dismissal on appeal, though, explaining that the marking statute was not applicable because the defendant had asserted only the method claims of a patent that included both method and apparatus claims:

“In this case and Hanson, the patentee only asserted method claims despite the fact that the patent contained both method and apparatus claims. In American Medical, in contrast, both apparatus and method claims of the ‘765 patent were asserted. Because Rexam asserted only the method claims of the ‘839 patent, the marking requirement of 35 U.S.C. § 287(a) does not apply. Consequently, we reverse the district court’s grant of Crown’s motion for summary judgment dismissing Rexam’s counterclaim for infringement of the ‘839 patent.” (emphasis added, internal quotations omitted, citation omitted)

A method claim, then, might preserve your ability to file an infringement claim when your marking practices have been less than perfect.

Reading the Crown Packaging Technology opinion gives you the sense that this might not always be the case. Judge Moore, the author of the opinion of the court, phrased the court’s holding – both in the opinion’s introduction and in the conclusion of the section relating to the marking issue – as one that is mandated by precedent:

[B]ecause we are bound by our holding in Hanson v. Alpine Valley Ski Area, Inc., 718 F.2d 1075 (Fed. Cir. 1983)—that the marking requirement of 35 U.S.C. § 287(a) does not apply when only method claims are asserted—we reverse the district court’s grant of summary judgment dismissing Rexam’s counterclaim based on a failure to mark.” (emphasis added)

Judge Moore’s disagreement with the rule of Hanson is clear.

Read the PTP review of Crown Packaging Technology for a detailed analysis of the court’s opinion.

Friday fun – the most interesting things I read this week

Friday, January 23rd, 2009

1. Patent infringement filings take a nosedive

A review of Stanford’s IP Litigation Clearinghouse revealed a sharp decline in patent infringement filings in 2008.

According to this National Law Journal article, new infringement suits fell by 8% in 2008 as compared to 2007. The last five months of the year saw a 23% decrease over the same period in 2007.

The cause for the drop?

“Several patent litigators attributed the decrease to clients clamping down on legal costs associated with some patent cases, which tend to be more costly than standard lawsuits. But other factors could have contributed to the decline, including a general shift from federal district court to filing patent cases before the U.S. International Trade Commission (ITC), as well as longer times to trial in some of the nation’s traditionally busiest districts, the Central District of California and the Eastern District of Texas.”

Hmmm…something tells me they they missed one – the new found difficulty in hearing the words “valid and infringed.”

2. Adam Smith – (patent) Lessons from the Depression

Bruce MacEwen expands on the McKinsey Quarterly’s Innovation Lessons from the 1930s.

The McKinsey subtitle – “History suggests that even the deepest downturns can create huge opportunities for companies with money and ideas.”

Bruce adds: “Not only may your competitors be battening down the hatches, but investment assets (talent, primarily) may be cheaper than they have been for a long time.”

3. TechDirt – The cultural gulf between lawyers and technologists on patent law

The author notes his observations on the differing views between patent attorneys and technologists on patent law, following last week’s Brookings Institution conference on “The Limits of Abstract Patents in an Intangible Economy.”

“I was struck by the dramatic differences between the views of lawyers on the one hand (who made up the majority of the panelists and audience members) and the handful of technologists on the other….[P]atent attorneys and law professors who write about patent law are overwhelmingly in favor of patents on software, and prefer to argue about how to fine-tune patent law to get fewer “bad” software patents without invalidating the “good” ones. In contrast, a lot of computer programmers simply wish the patent system would leave them alone.”

“As a consequence, the two communities have radically different views of how well the patent system is working. The lawyers certainly acknowledge that there’s a problem, but they seem to find it incomprehensible that there could be a major American industry that’s better off without patent protections. Techies understand that patents are not an important part of the software industry, and so they’re much more likely to say that their industry would be better off without them.”

4. Quality v. quantity debate and the rise of Asian companies in list of top US patent earners – Japanese system emphasizes quantity over quality

Last week’s report from IFI on the top us patent recipients generated a lot of buzz for its observation that “the scales of patent-quantity supremacy may be shifting away from corporate America in favor of companies overseas, especially to those in Asia.”

The cause for the shift? Foreign companies garnered 51% of new patents in 2008, meaning American companies grabbed less than half.

This BusinessWeek article suspects there’s more to it than just numbers, though:

The problem with the Japanese system is that it emphasizes quantity over quality. Figuring out a patent’s value can be tricky because it can take years to turn a good idea into a winning product. So the solution in Japan has been simply to give a bonus for every little incremental invention. And why submit one solid patent when you can get more money for filing five? The result: There’s more of an incentive to file a lot of patents than to come up with one that’s hard for rivals to copy (plus a few tweaks to discourage a court battle).

If American companies continue to react to recent caselaw pressures by focusing on quality over quantity, it seems likely that this “shift” is likely to continue.

5. The Obama administration immediately adopts a wide-open robots.txt file

On Tuesday, President Obama sent a swift technological signal that he’s serious when saying “transparency and the rule of law will be the touchstones of this presidency.” What did he do? The new whitehouse.gov website seemed to appear even as Chief Justice Roberts and then-(President? Senator?) Obama were wrestling with the oath, and with it came a brand new, wide-open, 2-line permissive robots.txt file that invites search engine bots everywhere to enter the site, and crawl and index everything (save one directory). The new file replaced a 2400-line restrictive robots.txt file used by the Bush administration.

In the patent world, this sends an immediate signal to the PTO, which currently uses the restrictive style on servers housing BPAI decisions.

BTW, I liked this find so much, I wrote a full post about it.

This find came to me from @gahlord via @nipper on Twitter.