Tuesday, June 3, 2014

Ambiguity Squared: U.S. Supreme Court finds test for Determining Patent Claim Invalidity Based on Claim Ambiguity, Ambiguous

Nautilus's uphill climb to avoid patent infringement may have gotten a bit easier yesterday in view of the U.S. Supreme Court's decision in Nautilus, Inc. v. Biosig Instruments, Inc.  The U.S. Supreme Court found that the test previously used to validate alleged infringement patent claims of Biosig, based on claim ambiguity, improper.  Ironically, the reason that the Supreme Court found the previous test for patent claim invalidity (based on claim ambiguity) improper was that the test, itself, was ambiguous.  The new test finds that a patent is invalid for indefiniteness if its claims, fail to inform, with "reasonable certainty", those skilled in the art about the scope of the invention.  This opens the door for Nautilus to (again) challenge the validity of the alleged infringed patent claims under this new test.  If successful, Nautilus can avoid patent infringement by invaliding the alleged infringed claims based on the patent claims being insufficiently clear (i.e.vague and indefinite under 35 U.S.C. §112, second paragraph).

Summary
In the patent suit at issue in this case, Biosig had accused Nautilus of infringing one of its patents.  Nautilus responded by asserting that the alleged infringed patent claims were insufficiently clear (e.g. vague and indefinite) and thus the alleged patent claims are invalid.  Although Nautilus was successful at the district court level in invalidity the patent claims, on appeal by Biosig, the Federal Circuit reversed the district court and found the patent claims were not indefinite and the claims were sufficiently clear based on a test which includes determining if the claims are "amenable to construction" or "insolubly ambiguous".  The U.S. Supreme Court found the Fed. Circuit's test improper.

The U.S. Supreme Court's rationale for finding the test improper was that the test "tolerates some ambiguous
claims but not others."  As a result, the Supreme Court determined that the prior test would find some patent claims valid even though there is uncertainty as to the exact meaning of the patent claims.  The Supreme Court said that this scenario is inconsistent with the statutory requirement that patent claims be sufficiently definitive to provide the public (including those skilled in the art) "reasonable  certainty" of the scope of the invention.  If not, the Court reasoned, the public would not have sufficient notice of the scope of a patent, and thus not have sufficient knowledge to avoid patent infringement.

Unlike prior Supreme Court patent cases, the Court announced a new test for determining patent claim definiteness.  The new test finds a "patent is invalid for indefiniteness if its claims, read in light of the specification delineating the patent, and the prosecution history, fail to inform, with reasonable certainty, those skilled in the art about the scope of the invention."

Take Home Lesson
For patent practitioners, the take home lesson from this decision is to draft patent claims and patent specifications with sufficient disclosure to ensure patent claims are definitive and not ambiguous, so that the public, and in particular, those skilled in the art, will have "reasonable certainty" of the scope of the patent claims.  In order to satisfy a balance between intentionally having broad patent claims to cover many different embodiments, the use of dependent claims directed to specific embodiments may help ensure that at least some patent claims survive an indefiniteness challenge.  Further, including many different embodiments in the patent specification may provide the public with reasonable certainty of the scope of the patent claims.

Finally, announcing a test is a departure from some prior U.S. Supreme Court patent cases, e.g. Bilski v. Kappos.   Often the Supreme Court remands patent cases back to the Federal Circuit to develop a test based on its instructions in its opinion.  This may signal a change in the Court and may mean that the Court will be more active in establishing its own tests rather than relying on the Federal Circuit to develop tests, later confirmed or found invalid by the Supreme Court. Observers of the Supreme Court, including us here at OP-IP anxiously await the decision in the other U.S. Supreme Court intellectual property cases this term, including patent cases, such as Alice Corp. v. CLS Bank.

© Stephen J. Weyer 2014
Send email feedback- sweyer@stites.com



Friday, April 4, 2014

Disney's "Frozen" in Hot Water Over Alleged Copyright Infringement

Disney has found itself in a bit of an icy situation. Last week Animator Kelly Wilson filed suit against Disney in the Northern District of California for copyright infringement. Wilson alleges that the teaser trailer of Disney's hit film Frozen is substantially similar, if not identical, to her short film The Snowman in plot, themes, dialogue, mood, setting, pace, characters, and sequence of events.  But does this "snowman" have a leg to stand on?

To make her point, the Complaint includes the following screencaps:











The Snowman was relased in 2010, and has appeared on the Internet and in animated film festivals where Pixar employees "were present and competing" in the same category. Wilson alleges that Disney had been provided copies of The Snowman prior to the creation of Frozen as part of various job applications with Disney. The Snowman tells the story of a snowman near an icy lake who becomes friends with a group of rabbits trying to eat his carrot nose. Likewise, The Snowman the Frozen trailer depicts a snowman attempting to save his carrot nose before befriending his former foe.

Section 501 of the U.S. Copyright Act provides that anyone who violates any of the exclusive rights of a copyright owner is liable for copyright infringement. For Disney to be found liable for copyright infringement, Wilson must prove that Disney had access to The Snowman. She must also prove that Frozen is substantially similar to the The Snowman.

To us here at OP-IP Law Blog, it seems like you can check "substantially similar" off the list but you be the judge:
The Snowman 
Frozen trailer 
Wilson seeks a finding of infringement and profits gained from the exploitation of The Snowman in addition to damages and attorneys’ fees. Disney has not yet filed its Answer, so we must wait and see whether this matter will snowball.


© Mari-Elise Taube 2014
Send email feedback- mtaube@stites.com

Monday, March 17, 2014

Increasing wave of secret Internet communication

A new wave of apps are gaining popularity among young people.  Facebook has lost its caché as ones parents, and horror of horrors, even grandparents, are active members with posts appearing in young people's news feeds.  Twitter had became the anti-Facebook, with its short, 140 character tweets a way for young people to express themselves in short streams of consciousness.  Instead of personal profiles of likes, photos of life's milestone, relationships, high school and colleges, religion, hometown, residency etc., Tweeter allows one to just communicate brief ideas.  


However, the youth of the world finds even Twitter to be too constraining.  It forces you to identify yourself.  This leads to a whole host of concerns, including the need to watch what you say, and how you say it (including grammar and spelling) or suffer the scrutiny of your friends, "real" and virtual (online) ones.  Often young people feel that they cannot be themselves and have to conform to an image that others expect to see.

https://itunes.apple.com/us/app/whisper-share-express-meet/id506141837?mt=8
Secret or anonymous  apps such as Whisper Secret and Backchat allow users to post messages completely anonymously.  Sounds innocent enough, right?  Well, maybe not so fast.  Truly anonymous messages could lead to defamation claims with no recourse against the defamer.  True, if the alleged defamer does not identify himself or herself, it is less likely that others will believe the anonymous defamer.  However, prior anonymous sources have been scrutinized when what is said is deemed to have caused harm.  For example, the Virginia Court of Appeals recently ruled that Yelp was recently required to turn over the name of a writer who posted a negative review of a carpet cleaner.  


Here comes technology to the rescue.  Secret enforces its terms of use and policy of maintaining civility, by removing "defamatory, offensive or mean-spirited messages against its 'community standards'."  Secret has built-in "intelligence" which identifies potentially defaming messages and warns users before the message is sent.


Other legal issues of truly anonymous messages include possible copyright and trademark infringement and divulging trade secrets.  Anonymous posts could include copyrighted content, trademark material and trade secrets in which the owners of their intellectual property may have no recourse against the infringer.

Finally, a word of caution to the "would be" "secret" messanger, the "terms and conditions" of these “anonymous” apps may state that the app provider will turn over records and personal information if ordered by a court or other governing body.


© Stephen J. Weyer 2014
Send email feedback- sweyer@stites.com

Wednesday, January 8, 2014

iPhone "dressed" in Blackberry's clothing? The 'keys' to understanding a 'case' for trade dress infringement

Never let it be said that the arguably geeky CES (ConsumerElectronics Show) does not have widespread appeal.  And what electronics rollout would be complete if there were not a little controversy.  Thank you, Blackberry, and start-up tech company, Typo, for saving the day in an otherwise boring 2014 CES show.  I mean, after the first demonstration of a 100+ inch curved-screen ultrahigh definition television, do I really need to see another?
At the CES show, amiss the new TiVo devices and Roku® boxes, start-up company, Typo introduced its iPhone keyboard case which provides a "real" qwerty keyboard as an add-on to iPhone. (See picture to the right.)


Blackberry has filed a lawsuit in the Northern District of California, alleging, among other things, that the Typo iPhone keyboard case infringes Blackberry's “trade dress.”  Taking a page from the Apple vs. Samsung design patent infringement cases, Blackberry alleges that instead of developing its own keyboard design, Typo chose to copy BlackBerry’s innovative style and design, including the keyboard layout and the surface shaping of the keys.”

Blackberry
To prevail on an alleged trade dress infringement claim, Blackberry must prove that Blackberry's keyboard features in the Typo cases are (1) non-functional, (2) distinctive* (inherently or have acquired "secondary meaning") , and that (3) there is a likelihood of confusion between Blackberry and the Typo trade dress based on the (1) non-functional and (2) distinctive features.

In its complaint, Blackberry alleges that its keyboard has non-functional and distinctive features, present in the Typo cases to produce a likelihood of confusion between Blackberry and the Typo trade dress.

From the Blackberry Complaint the alleged infringed trade dress includes:
a keyboard product configuration with:
  • a keyboard with an overall symmetrical design around the vertical center line, comprising several horizontal dividing bars above rows of sculpted keys, the last row of which is rounded on the bottom edge;
  • several horizontal bars in contrasting color and finish set above the horizontal rows of keys;
  • several top rows of roughly square shaped keys having little horizontal space between them;
  • a bottom row of roughly rectangular shaped keys having curved bottoms edges and little horizontal space between them;
  • keys with planar areas away from the vertical center line of the keyboard and sculpted curves closer to the center line;
  • one larger rectangular key in the center of the bottom row having a u-shaped planar area; and
  • keys having distinct lettering or graphical icons printed on the surface.

You be the judge...
Typo iPhone keyboard/case



Blackberry

Blackberry

Does the iPhone keyboard case have non-functional, distinctive features of the Blackberry keyboard or are the Blackberry identified features functional or common to other old school tackle keyboards from smartphones of yesteryear.  If the former, do the non-functional, distinctive features lead to a likelihood of confusion between the Blackberry trade dress and the Typo keyboard case's trade dress?

Mere similarity between the Blackberry keyboard and the Typo keyboard is not enough for trade dress infringement.  Typo is entitled to include non-functional, non-distinctive features of the Blackberry product.  And Typo can even include distinctive features of the Blackberry product to the extent that there is no likelihood of confusion between the trade dress of the Blackberry product and that the Typo product.

Take-home lesson:

Determining whether a case of trade dress infringement exists is not a simple task. Therefore, a prudent step when launching a new product is to seek legal counsel from an Intellectual Property attorney, especially if the new product is similar in function and design to that of a competitor's product.



© Stephen J. Weyer 2014
Send email feedback- sweyer@stites.com



Tuesday, December 31, 2013

Top Ten OP-IP Blog Posts of 2013

As 2013 comes to a close, the mainstream media, partially in an effort to reflect on the past year and partially to fill a news void in the period between Christmas and New Year's, compile a year in review.  We are once again inundated with stories of Edward Snowden, the healthcare.gov website roll-out debacle, etc.  Here at OP-IP, we too, look back on the memorable blog posts of 2013.

In the tradition of Casey Casum once again enjoy the Top Ten OP-IP blog posts of 2013:











Happy New Year 2014!


Tuesday, December 17, 2013

Déjà vu all over again: Patentablity of computer implemented software

The U.S. Supreme Court will weigh in (again) on what constitutes patent eligible subject matter (under 35 U.S.C. § 101) when it hears the case of Alice Corp. v. CLS Bank. Like the movie, Groundhog Day, the U.S. Supreme Court will once again decide what "things" are patentable. 

Distilling down the issue in CLS, the Supreme court will decide whether a general purpose computer (think PC, Mac, or server) programmed to conduct financial transactions is eligible for patenting.  Claim 1 (below) is exemplary of the patent claims in suit.

1. A data processing system to enable the exchange
of an obligation between parties, the system
comprising:
            a data storage unit having stored therein information
about a shadow credit record and
shadow debit record for a party, independent
from a credit record and debit record maintained
by an exchange institution; and
            a computer, coupled to said data storage unit, that
is configured to:
(a) receive a transaction;
(b) electronically adjust said shadow credit
record and/or said shadow debit record in order
to effect an exchange obligation arising
from said transaction, allowing only those
transactions that do not result in a value of
said shadow debit record being less than a
value of said shadow credit record; and
(c) generate an instruction to said exchange
institution at the end of a period of time to adjust
said credit record and/or said debit record
in accordance with the adjustment of said
shadow credit record and/or said shadow debit
record, wherein said instruction being an irrevocable time invariant obligation placed on said exchange institution.

But we all (including the Supreme Court) have seen the exercise of determining patent subject matter eligibility before.  For example, Gottschalk v. Benson, 409 U.S. 63 (1972) (decimal to binary number converting programmed computer); Parker v. Flook, 437 U.S. 584 (updating an alarm); Diamond v. Dierh, 450 U.S. 175 (1981) (curing rubber) ; Bilski  v.Kappo, 130 S.Ct. 3218 (2010) (hedge fund business method); Mayo v. Prometheus, 566 U.S. ___ (2012) (correlating drug metabolism); and Association for Molecular Pathology v. Myriad Genetics, 569 U.S. ___ (2013) (isolated DNA).  So what is new here to decide?

The en bank Fed. Cir. (lower court decision that is the subject of the CLS appeal), found the above claim 1 ineligible for patenting (articulated in the plurality opinion as a machine/computer/apparatus that purportedly implements an abstract financial method and subsumes the entire general abstract idea).  This all sounds eerily familiar.  It echoes to the past as if from the ghost of Supreme Court Justice Douglas past (Douglas being the opinion writer in Benson finding that implementing a mathematical principle on a physical machine, e.g. a computer, is not a patentable application of that principle).

If I were to predict the outcome in CLS, based on the most recent S.Ct. patent cases, I would say that the Supremes will (1) find the CLS computer implementing financial transactions (apparatus/data system/"machine") claims are invalid under § 101 as being abstract (per se) as subsuming the general abstract financial transaction "idea", citing Benson, and the other aforementioned S.Ct. decisions above, and (2) find the Fed. Cir. plurality opinion regarding the specific framework and/or standard for analyzing an apparatus claim for § 101 patent subject matter eligibility (i.e. extraction of the general idea of a claim and then determine whether the idea is abstract and subsumes the general idea) is not valid.

Happy Christmas!



Send email feedback- sweyer@stites.com

Thursday, August 8, 2013

Patent Wars: Episode III- Laissez-faire Strikes Back

Patent Wars: Episode III- Laissez-faire Strikes Back


Michele Boldrin and David K. Levine of the Federal Reserve Bank of St. Louis, Research Division, last fall published a "working paper" entitled, "The Case Against Patents."  These authors "make a case" that market forces (e.g. lead time/ being the first one to the market) and less government involvement are the keys to innovation and economic development, not a strong patent system.

The opening paragraph of the working paper states,


The case against patents can be summarized briefly: there is no empirical evidence that they serve to increase innovation and productivity, unless the latter is identified with the number of patents awarded– which, as evidence shows, has no correlation with measured productivity.  This is at the root of the “patent puzzle”: in spite of the enormous increase in the number of patents and in the strength of their legal protection we have neither seen a dramatic acceleration in the rate of technological progress nor a major increase in the levels of R & D expenditure...


...there is strong evidence, instead, that patents have many negative consequences. Both of these observations, the evidence in support of which has grown steadily over time, are consistent with theories of innovation that emphasize competition and first-mover advantage as the main drivers of innovation and directly contradict  Schumpeterian” theories postulating that government granted monopolies are crucial in order to provide incentives for innovation....

...The initial eruption of small and large innovations leading to the creation of a new industry – from chemicals to cars, from radio and TV to personal computers and investment banking – is seldom, if ever, born out of patent protection and is, instead, the fruits of highly competitive-cooperative environments. It is only after the initial stages of explosive innovation and rampant growth end that mature industries turn toward the legal protection of patents, usually because their internal grow potential diminishes and the industry structure become concentrated.
Are Boldrin and Levine correct?  Are patents more a hindrance to innovation and economic development than an aid?  Was Thomas Jefferson wrong when he drafted the U.S. Constitution, Article I, § 8, clause 8), giving Congress the power to "promote the useful arts" (i.e. inventions) "by securing for limited Times to ... Inventors the exclusive Right to their respective ... Discoveries?
Is it laissez-faire time?


Send email feedback- sweyer@stites.com