Legally Protecting Software: Benefits, Pitfalls, and Misconceptions
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Transcript of Legally Protecting Software: Benefits, Pitfalls, and Misconceptions
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Michael Leachman Blair Suire Jones Walker LLP
Legally Protecting Software: Benefits, Pitfalls and Misconceptions
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COPYRIGHTS
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TYPES OF INTELLECTUAL PROPERTY
Copyrights
Patents
Trade Secrets
Trademarks
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TYPES OF INTELLECTUAL PROPERTY
Artistic Expression
Inventive Concepts
Confidential Information
Brands
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TYPES OF INTELLECTUAL PROPERTY
Source & Object Code; Look and Feel
Novel Process
Implemented by Code
Source Code
Company Name; Logos
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COPYRIGHTS
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v Literary works (books, catalogues, printed advertising, websites, software)
v Musical works (music, lyrics, advertising jingles)
v Dramatic works (plays, musicals, operas)
v Pantomimes and choreographic works (ballets, other choreographed dance works, mime works)
v Pictorial, graphic and sculptural works (photographs, maps, paintings, stuffed animals, graphic art, cartoon strips)
v Motion pictures and other audiovisual works (movies, computer games, films, television shows, interactive multimedia)
v Sound recordings (music, sounds, lyrics)
v Architectural works (building design embodied in plans, or building itself, includes overall form, as well as arrangement of spaces and elements)
COPYRIGHTABLE SUBJECT MATTER
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REQUIREMENTS FOR COPYRIGHT
Original Work of Authorship
Fixed in a tangible medium
Copyrightable
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Exclusive Copyright Rights
Exclusive Rights to the Owner:
1. To reproduce the work 2. To prepare derivative works 3. To distribute copies to the public 4. To perform the work 5. To display the work 6. To perform the work publicly by means of digital audio
transmission (e.g., sound recordings)
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v Ideas, concepts, principles, discoveries
v Method of operations, procedures, processes (distinguished from explanation or description)
v Useful articles
v Facts (as opposed from an original expression of factual matter)
v Titles, names, short phrases (e.g. “March Madness”)
COPYRIGHTABLE
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COPYRIGHTABLE
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COPYRIGHTABLE
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COPYRIGHTABLE
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COPYRIGHTABLE
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v Default Rule: Author is the Owner
v Exception: “Works Made for Hire”
COPYRIGHT OWNERSHIP
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COPYRIGHT OWNERSHIP
Work-Made-for-Hire Definition: 1. a work prepared by an employee within the scope of his or her
employment or
2. a work specially ordered or commissioned for use: • as a contribution to a collective work, • as a part of a motion picture or other audiovisual work, • as a translation, • as a supplementary work, • as a compilation, • as an instructional text, • as a test, • as answer material for a test, or • as an atlas,
if the parties expressly agree in a written instrument signed by them that the work shall be considered a work made for hire.
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Transfer of Copyright
A transfer of copyright ownership is not valid unless an instrument of conveyance is in writing and signed by the owner of the rights conveyed.
RULE: GET IT IN WRITING!
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Copyrights—Fact or Myth?
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Copyrights—Fact or Myth?
I paid for it, so I own the copyright.
X
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Copyrights—Fact or Myth?
I can take just a little portion of the work.
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Copyrights—Fact or Myth?
I don’t need a license because I’m going to alter the work.
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Copyrights—Fact or Myth?
If I change at least 10% of the work, it’s not copyright infringement.
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Copyrights—Fact or Myth?
If I give credit to the copyright owner, it’s not copyright infringement.
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Limitations of Copyright Protection
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Limitations of Copyright Protection
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COPYRIGHT VS PATENT
v Copyright – protects expression
v Patent – protects inventive concepts & ideas
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PATENTS
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WHAT DO THESE COMPANIES HAVE IN COMMON?
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THE WAR OVER SOFTWARE PATENTABILITY
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THE WAR OVER SOFTWARE PATENTABILITY
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THE WAR OVER SOFTWARE PATENTABILITY
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EXCLUDED SUBJECT MATTER
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WHY ARE PATENTS VALUABLE?
Ø A patent prevent others from: • making, • using, and • selling the patented invention
Ø Term – 20 years from filing date of patent application
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PATENT BASICS
Ø A patentable invention is any process, machine, manufacture, or composition of matter that is:
§ Patentable subject matter § Useful § Adequately described § New (novel) § Non-obvious
Determined by the application
Determined by the prior art
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PATENTABLE SUBJECT MATTER
Ø Process Ø Machine Ø Manufacture Ø Composition of matter
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PATENTABLE SUBJECT MATTER
Ø Process Ø Machine Ø Manufacture Ø Composition of matter
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EXCLUDED SUBJECT MATTER—LAWS OF NATURE
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EXCLUDED SUBJECT MATTER-PHYSICAL PHENOMENA
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EXCLUDED SUBJECT MATTER
Abstract ideas
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CLS BANK V. ALICE CORP
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CLS BANK V. ALICE CORP
The Patent Ø Various method and system claims to a computerized
currency trading platform used by banks as a low-risk way to reconcile pending transactions, particularly across different time zones
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CLS BANK V. ALICE CORP
The District Court Decision Ø Summary judgment that the claims were directed to abstract
ideas and thus ineligible for patent protection under 35 U.S.C. §101
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CLS BANK V. ALICE CORP
Questions before the Federal Circuit Ø What is the test for determining if a computer-implemented
invention is a patent-ineligible abstract idea? Ø When, if ever, can a computer in a claim lend patent
eligibility to an otherwise ineligible idea? Ø Should it matter to patent eligibility that the computer
implemented invention is claimed as a method, system, or storage device?
Ø Should such claims be considered equivalent for determining patent eligibility?
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CLS BANK V. ALICE CORP.
Method Media System
1 Lourie Not Eligible Not Eligible Not Eligible
2 Dyk Not Eligible Not Eligible Not Eligible
3 Prost Not Eligible Not Eligible Not Eligible
4 Reyna Not Eligible Not Eligible Not Eligible
5 Wallach Not Eligible Not Eligible Not Eligible
6 Rader Not Eligible Not Eligible Eligible
7 Linn Eligible Eligible Eligible
8 Moore Not Eligible Not Eligible Eligible
9 O’Malley Eligible Eligible Eligible
10 Newman Eligible Eligible Eligible
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PATENT ELIGIBILITY: BEST PRACTICES
Software qualifies for patent protection when: Ø does not preempt an abstract idea Ø involves a human contribution that adds additional
limitations narrowing the claims to cover significantly less than the full abstract idea
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PATENT BASICS
Ø A patentable invention is any process, machine, manufacture, or composition of matter that is:
§ Patentable subject matter § Useful § Adequately described § New (novel) § Non-obvious
Determined by the application
Determined by the prior art
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DESCRIPTION REQUIREMENTS
Ø Application must describe invention and manner of making and using it
Ø Description must be sufficiently specific and clear that it enables a programmer to make and use it
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DESCRIPTION REQUIREMENTS & SOFTWARE
Software patent should describe: Ø software details Ø algorithms Ø software module to execute each step Ø data passed between modules Ø flowcharts Ø hardware
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DESCRIPTION REQUIREMENTS & SOFTWARE
Ø Not necessary to include code
Ø Description should enable a programmer to write code
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DESCRIPTION REQUIREMENTS & TIMING
v Important to file as early as possible, but not at expense of filing with an inadequate disclosure
v Once filed, no new matter may be added
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PATENT BASICS
v A patentable invention is any process, machine, manufacture, or composition of matter that is:
§ Patentable subject matter § Useful § Adequately described § New (novel) § Non-obvious
Determined by the application
Determined by the prior art
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NOVELTY
Patent not allowed if, before your filing date, your invention was: Ø patented Ø described in a publication Ø in public use, on sale, or otherwise available Exceptions: Disclosures made 1 year or less before your filing date are not prior art if: Ø your disclosure Ø disclosure was after your public disclosure
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NOVELTY
Patent not allowed if, before your filing date, your invention was: Ø described in a patent application naming another inventor that
has an earlier filing date Unless: Ø the other inventor’s application is not published and no patent
issues from it Ø information was obtained from you Ø you publicly disclosed the same information before the other
inventor’s application was filed Ø your invention and the disclosed information were owned by the
same person not later than your filing date
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TIMING
Ø U.S. Grace Period: In the United States, a patent application can still be filed within 1 year of your: § first publication § first offer for sale, or § first public use of the invention
Ø In most foreign countries, public
disclosure=forfeiture of patent rights
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EVENTS TRIGGERING ONE-YEAR CLOCK
Ø Beta tests
Ø Demonstrations
Ø Web sites
Ø Internal use for commercial purpose
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PATENT BASICS
Ø A patentable invention is any process, machine, manufacture, or composition of matter that is:
§ Patentable subject matter § Useful § Adequately described § New (novel) § Non-obvious
Determined by the application
Determined by the prior art
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NON-OBVIOUSNESS
Patent not allowed if: Ø claimed invention would have been obvious to a
skilled artisan before the effective filing date
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KEY POINTS - COPYRIGHT
Ø Copyright protects expression of an idea, not the idea itself.
Ø Transfer of copyright ownership must be in writing.
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KEY POINTS - PATENT
Ø Patent law is unsettled on issue of whether software qualifies for patent protection.
Ø Not necessary to include code in a software patent application, but the application should enable a programmer to write the code.
Ø Patent application should be filed before public disclosure of the invention.
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Questions?
“Legally Protecting Software: Benefits, Pitfalls and Misconceptions” Presented by: Michael Leachman([email protected]) Blair Suire([email protected]) Jones Walker LLP