Intellectual Property for the General Business Lawyer...Immix Law Group } IP Issues for the Business...
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} Intellectual Property for the General Business Lawyer Presented } Leigh Gill, Immix Law Group How to Spot Issues and Advise Your Client on IP
Transcript of Intellectual Property for the General Business Lawyer...Immix Law Group } IP Issues for the Business...
}IntellectualPropertyfortheGeneralBusinessLawyer
Presented} LeighGill,ImmixLawGroup
HowtoSpotIssuesand AdviseYourClientonIP
ImmixLawGroup}IPIssuesfortheBusinessAttorney
1 }Confidentiality—includingthenewDefendTradeSecretsact
2 }Avoidingmistakesandselectinganappropriate trademark
3 } Whoseideaisit?Securingrightsfromemployeesandcontractors
4 }Copyrightregistration
5 }DMCA andavailableprotectionfortechnologycompanies
6 } Advisingclientsaboutpatents,fromthenon-patentbarperspective
7 } Softwarelicensing
8 }Opensource
9 } Usinginternetimagesforcompanymaterials
10 } Sharingcredit:crosslicensing,jointdevelopmentandmarketdevelopment
ATop10for2016
ImmixLawGroup}IPIssuesfortheBusinessAttorney
Atissuewithconfidentialinformationistheintendeduseoftheinformation.Forthesametwoparties,confidentialitymaychangebothovertimeandwithdifferentprojects,contextsornegotiations.
1 } Confidentiality—preservingandmaximizingthevalueinideas
¨Identifytheaudience
¨Determinewhattoprotect
¨Practicalidentificationofprotection(e.g.,stampingdocuments“confidential”)
¨Remedies
ImmixLawGroup}IPIssuesfortheBusinessAttorney
Thereisnotradesecretwithout“effort...reasonableunderthecircumstancestomaintainitssecrecy.”ORS§646.461(4)(b).Acontractdescribingconfidentialityisgoodevidenceofeffortstomaintainsecrecy.
1 } Confidentiality(cont.)
¨ InOregon,ORS§§646.461to646.475providessomeprotectionoftradesecrets.Applicationoftradesecretslawreliesonmisappropriationandhasitsrootsintort.
¨ TradeSecretActisablunttoolandadditivetocustomizingconfidentiality.
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1 } Confidentiality(cont.)
¨ InMay2016,PresidentObamapassedtheDefendTradeSecretsAct,creatinganewfederalcauseofactionfortradesecretsmisappropriation.TradeSecretshavelongbeenprotectedunderstatelaw,butthenewlawprovidesachoiceofcourts.
¨ Asatransactionalmatter,theDefendTradeSecretsActrequireschangestodraftingforemployeeandindependentcontractoragreements.Agreementswith“employees”(broadlydefined)mustprovidenoticeofindividualprotections,includingfordisclosuretogovernment(whistleblowerprotection)
¨ TheDefendTradeSecretsActalsoprovidesanewremedyofcivilseizureoftradesecretmaterial.
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Justlikebabynamesinthecensus,popularwordsormarkschangeovertime.Enteringacrowdedspacemayseemlikeagoodidea,buttheinvestmentcostsofgreenfieldarerewardedbylong-tailifsuccessful.
2 } Avoidingmistakesandselectinganappropriate trademark
¨ Forinternet-agebusinesses,theprocessofselectingatrademarkisdominatedbywhetherthedomainnameisavailable.
¨ Descriptiveandsuggestivetrademarkshavelittleorlimitedprotection,butmayhavepracticalvalueinloweringadvertisingcosts.
¨ Thereisnewfoundattentiontotheinterstatecommercerequirementforfederaltrademarkregistration.
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2 } Avoidingmistakesandselectinganappropriate trademark(cont.)
¨Howmanypunsontheword“hops”canyouthinkof?
¨“Hoptoit?”– KereruBrewingCompany,NewZealand.
¨He’sgota“RyeWit?”– Freetail BrewingCompany,SanAntonioTX.
¨“Hopportunity Knocks?”- CalderaBrewingCompany,Ashland,OR.
¨“SockHop?”– SockHopMonkeyBrewery,SilverSprings,MD.
¨“Hoptimus Prime?”– RuckusBrewing,NewYork,NY.
¨“Don’tWorry,BeeHoppy?” – RiversideBrewery,WestBend,WI
¨“TheTiesthatBine?”– Available!ButRHIZINGBINESisaregisteredTMofDogfishHead,Milton,DE.
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2 } Avoidingmistakesandselectinganappropriate trademark(cont.)
¨InnovationBrewingisacraftbreweryinNorthCarolinathatdidasearchfortrademarks,gotthedomainname,andthenappliedfortrademarkregistration.
¨Bell’sisalargecraftbreweryinMichiganthatsellsbeerinNorthCarolina.TheycontactedInnovationandrequestedtheywithdrawtheirapplication.ThetrademarkhasnowmovedtoanextendedoppositionbeforetheTTAB.
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2 } Avoidingmistakesandselectinganappropriate trademark(cont.)
¨Lagunitas isthefifthlargestcraftbrewerybyvolumeandSierraNevadaisthesecond.In2015,Lagunitas suedSierraNevadaalleginginfringementofits“large,bold,black,centralized‘IPA’lettering.”
¨TwodaysafterthecasewasfiledintheNorthernDistrictofCalifornia,Lagunitas announceditwouldvoluntarilydismissthecaseduetonegativepublicity.
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2 } Avoidingmistakesandselectinganappropriate trademark(cont.)
¨ Rightstoatrademarkarenotcreatedbyregistrationofatrademark.IntheU.S.,rightsaccruethroughuse,althoughtheymayberecognized(andmaypreventaccrualbyothersofcompetingrights)throughregistration.
¨ SomerecentTTABdecisionshaveaffirmedtheimportanceofmaterial,interstateuseinestablishingregistration.(e.g.,AdidasAGv.ChristianFaithFellowshipChurch, CancellationNo.92053314(TTAB2015),Doctor’sAssociatesvJanco,LLC,OppositionNo.91217243(TTAB2016))
¨ Unknownasofthedateofthispresentationisthefateof“scandalous”trademarkslike“Redskins,”“Slants”and“ChiefWahoo”(logofortheClevelandIndians),asSCOTUShasgrantedcertforLeev.Tam.
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ItisinvariablymoreexpensiveanddifficulttosecurerightsafterdiscoveringthatcertainIPisvaluablethanitistosecurerightspriortotheactivitiescreatingthatIP.
3 } Whoseideaisit?Securingrightsfromemployeesandcontractors
¨Thecopyrightdefaultisrightstotheauthor.The“Author”isanindividual,withfewexceptions.(Workmadeforhire).
¨Patentrightsariseintheinventor,although“shoprights”maygiveanemployersomerights.
¨ItisimperativethatcontractorssignanagreementwithclearIPownership.
ImmixLawGroup}IPIssuesfortheBusinessAttorney
Copyrightregistrationfeesincreasedin2014.ThereisanewlibrarianofCongress,andtheRegisterofCopyrightshasbeenremoved.Thereisanincreasedfocusondigitalrecordsandsoftwaretools,soweexpectproceduralchangestocomesoon.
4 } Copyrightregistration
¨Copyrightsaredevelopedatfixation;trademarksaccruethroughuse.
¨Thereareimportantbenefitstotheownerwithregistration,includingpresumptionsofvalidity,statutoryrights,etc.
¨Copyrightregistrationisnearlyado-it-yourselfexercise.
¨Changestotheregistrationsystemarelikelytocomesoon.
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AproposedchangetoDMCAregistrationofagentswouldretirethe“interim”designationofagentformwithonlineprocess,frequentrenewals.https://www.federalregister.gov/documents/2016/05/25/2016-12227/designation-of-agent-to-receive-notification-of-claimed-infringement
5 } Using DMCA noticeandtakedownprocedures
¨DMCAisnotnewbutremainsaneffectivetoolforestablishingsafeharbor.
¨Recentdecisionshaveemphasizedtheobligationsoftechnologycompaniestoexercisejudgementandnotblanketpolicies.
¨Activediscussioninindustryandatthecopyrightofficeaboutthe“balance”betweentechnologycompaniesandcontentcompanies.
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https://s3.amazonaws.com/public-inspection.federalregister.gov/2016-26257.pdf
ProfessorEricGoldmanisamongcriticswhoarguetheformalityofregistrationshouldnotbedeterminativeofthebenefitofsafeharbor:http://blog.ericgoldman.org/archives/2016/10/copyright-office-gratuitously-kills-the-dmca-safe-harbor-for-thousands-of-websites.htm
5 } Using DMCA noticeandtakedownprocedures
¨TheCopyrightOfficeissuedfinalregulationsonNovember1,ineffectDecember1,2016,forregisteredagentsunder§512(c)
¨ElectronicregistryofagentmustbemadenolaterthanDecember31,2017
¨Aregistrationwillhaveadurationof3years.Acompanywhichhasanexpiredregistrationispresumedtonolongereligibleforsafeharborunder§512(c)
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Aseverwithpatents,andparticularlyinlightoffirst-to-fileintheU.S.,actingquicklyiscriticalifthereistobeeffectiveprotectionoftheinvention.
6 } Advisingclientsaboutpatents,fromthenon-patentbarperspective
¨The2011AmericaInventsActisnowfullyimplementedfornewapplications.Firsttofilemeansaninventormustdecidetopatentornot.
¨SoftwareandbusinessmethodpatentsarelessreadilygivenandmayhavedecreasedscopeinlightofcaseslikeBilski andAlice.ButseecontraEnfish v.Microsoft.
¨Cost-benefitanalysisisstillessential.Payattentiontothenatureoftheinvention.
¨Designpatentsappeartobeontherise,butSCOTUStohearSamsungv.Apple
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TheproposedFRCPrevisionstorule26mayoffersomereductioninthecosttosmallbusinessdefendantswhofindthemselvessubjecttoapatentinfringementclaim.
6 } Advisingclientsaboutpatents(cont.)
¨NPE(orPAE)activitiesremainanimportantissueforsmallbusinesses.
¨CostsoffilingsuithasgoneupwithAIA(joinder rules).
¨SettlementremainsagoodbusinessdecisionifasmallbusinesswinstheNPElottery.Litigationcostsarehighandissuedpatents,includingbusinessmethodandsoftwarepatents,haveapresumptionofvalidity.
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FromtheFTCReport:Thereportfoundthat,amongthePAEsinthestudy,LitigationPAEsaccountedfor96percentofallpatentinfringementlawsuits,butgeneratedonlyabout20percentofallreportedPAErevenues.
6 } Advisingclientsaboutpatents(cont.)
¨ThereappearstobeconsensusdevelopingthattheAIAchangesdidnotgofarenoughtocontrol“PatentTrolls”
¨ArecentFTEreportonNPEsidentifiedtwotypesofactors:(1)PortfolioNPEsand(2)LitigationNPEs
¨Whatisa“reasonable”incentivetoinnovation,againstaweightagainstinvention,ishotlydiscussed
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7 } Softwarelicensing
¨ServicessuchasOffice365andSalesforcemakesoftwareauditslessofanissue,butanybusinesswhichhasmultipleworkstationsmayhavelicensingrequirementstocomplywith.
¨Businessescontractingforappdevelopment,customsoftwaredevelopment,orevenconfigurationservicesneedstocarefullyconsidercompliance.
¨AbusinesswithoutanITdepartmentshouldensurethatitscontractwithoutsourcedITresourceincludesresponsibilitiesintheeventofasoftwareaudit.
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Whenrelyingonacontractor(graphicdesigner,developer,systemsarchitect,etc.),companiesshouldinvestigatetheuseofcommonlicensedelements.Withserver-sideinstallthisislessfrequentlyatissue.However,standardsbecomeincreasinglyimportant.
8 } Opensource,creativecommons,andstandards
¨Forsmallcompanies,useofcommonlicensedworks(e.g.,opensource)canbeawonderfulacceleratortogrowth.
¨Licensescopeisbetterunderstood.Payattentiontolicenseterms.
¨“Non-commercial”termisthemostdifficulttoapplytothefacts.
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Asdisruptivetechnologiesandinnovativeservicesaredevelopedbysmallbusinesses,theytendtoaffectestablishedlicensingmodels.
8 } Opensource,creativecommons,andstandards(cont.)
¨SmallcompaniesareincreasinglyencounteringstandardsandcommonIPelements.Theseareofteneitherunregulatedorself-regulatedspaces.
¨Usecase:smallcompanybuildsahealthappwhichmedicalserviceproviderswouldliketouse.Serviceprovidersrequestanintegrationbetweenhealthappandbillingsoftware.CPTcodesareregisteredcopyrightoftheAmericanMedicalAssociationanddefacto standard.
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Googlesearchbyimage,forexample,allowsausertouploadanimageandsearchforonlineimagesthatcontainmatchingelements.
9 } Usinginternetimages forthebusinesswebsite
¨ “Stockfootage”canbeadeceptiveterm,moresowhenanon-internetbusinesshiresagraphicdesignerorwebdeveloper.
¨ Itcanbeverydifficulttodeterminetheprovenanceofdigitalimages.
¨ Algorithmicimagesearchescaneasilyidentifylikelyinfringingimages.
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Aspartofamoviecampaign,
photosincludingactorVince
Vaughnwereofferedasthe
“freephotooftheweek.”
Thelicensewasforan
“editorialuse,”whichonclose
reviewexcludescommercial
use.
9 } Usinginternetimages forthebusinesswebsite(cont.)
ImmixLawGroup}IPIssuesfortheBusinessAttorney
Companiesusingonlineimagesneedtopaycloseattentiontotheirsource.Awarrantyfromthewebdevelopermaybegood,butinadequate.Infringementoccursbycopying,notbyintention.
9 } Usinginternetimages forthebusinesswebsite(cont.)
¨Inarecentcase,aDCpatentattorneysettledcopyrightinfringementclaimswithMasterfile Corporationfor$8,000.Masterfile claimedrightstotwophotographsthatitallegedappearedontheattorney’swebsite.
¨ GettyImages,withalibraryofmorethan80millionimages,acquiredasoftwarecompanyPicScout toidentifymatchingimages.
IPIssuesinSmallBusiness
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10 } Sharingcredit:crosslicensing,jointdevelopmentandmarketdev
¨Smallcompaniesoftenhavetroublepenetratingmarkets,orhavelimitedresources.Joiningforcesmakessense,butunderstandwhoownstheIP.
¨Portfoliorights(todisplaytheworkinaportfolio)canbeveryvaluable.Companiesdesiringthisneedtheconfidentialityprovisiontosupportthis.
¨Ifonecompanyisresponsiblefordevelopingamarketorpotentialclient,theyneedadequatetrademarkrightstodoso.
UnderstandingthecompetenciesofthebusinessesinvolvedisrequiredtoadequatelyprovideforsharedIPuse.Inmostcasesa“sub-contractor”typerelationshipiseasiertomanagethananyjointproject.
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END } Thankyou
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