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Welcome to

Fame, Fortune, and Exploitation: The History of Patents and

Patent Trolls

B.S.E.E., MIT J.D., University of Chicago

Licensed to practice law in California, Nevada, Colorado, & South DakotaAdmitted to practice before U.S. Patent & Trademark Office

Of Counsel Holland & Hart LLP 5441 Kietzke Lane Reno NV 89511 775-327-3010 hrschulze@hollandhart.com

Herbert R. (Dick) Schulze

Inventions – protected by patents

Works of Authorship – protected by copyright

Trademarks – protected by the law of unfair competition

Trade Secrets – protected by not telling, and by Federal and state statutes

Four Kinds of Intellectual Property

Better term is “non-practicing entity”

An entity that acquires patents and then licenses them

Manufactures no products and creates no jobs (except for its attorneys)

Patent Troll

December 26,1882Williams

U.S. Patent 269,766

What is a patent?

A limited monopoly granted by the U.S. Government

“Section 8 … Congress shall have Power …

8: To promote the Progress of … Useful Arts, by securing for limited Times to … Inventors the exclusive Right to their … Discoveries;

What can a patent cover?

Section 101 of the Patent Act: Article of manufacture, Machine, Composition of matter, Process, or Improvement thereof

U.S. Supreme Court:Anything under the sun that is made by man

What does a patent give?

The right to exclude others from:

Making, Using, Selling, Offering for sale, or Importinga patented product

Practicing, or Importing a product made bya patented process

First U.S. PatentJuly 31, 1790

Issued when I was bornU.S. Patent 2,395,178Feb 19, 1946Irving Fiori

Issued last weekU.S. Patent 9,583,932Feb 28, 2017Gerd Zuber (Ford Motor Co.)

Samuel MorsePatent No. 1647June 20, 1840

Claim 8 of Morse’s Patent

The use of the motive power of the electric current,which I call electromagnetism,for printing intelligible characters at a distance,being a new application of that powerof which I claim to be the discoverer.

Paraphrased:

Using electric current to print characters at a distance.

U.S. Patent 5,983,411DemoretNovember 16, 1999

Quick Quiz

Famous Patented Processes

Charles Goodyear Method of making rubber 1844

Henry Bessemer Method of making steel 1856

Charles Birdseye Method of packaging frozen food 1930

Louis Pasteur Method of ----- ? ----- 1873

The ProblemHow to send more than one telegram at a time over a single pair of wires?

Three Inventors

Philipp Reis’s “Telephone”

Bell’s PatentU.S. Patent 174,465March 7, 1876

Claim 5 of Bell’s patent

The method of; and apparatus for, transmitting vocal or other sounds telegraphically, as herein described, by causing electrical undulations, similar in form to the vibrations of the air accompanying the said vocal or other sound, substantially as set forth.

Paraphrased:

Transmitting sounds telegraphically, as described, by causing electrical undulations.

Emile Berliner’s MicrophoneU.S. Patent 463,569November 17, 1891

Thomas Edison

Thomas EdisonU.S. Patent 223,898January 27, 1880

George Westinghouse

Scan-to-email patentU.S. Patent 8,488,173July 16, 2013Laurence C. Klein

MPHJ v. RicohNo. 2016-1243Federal CircuitFebruary 13, 2017

Quick Quiz

Famous Patented Machines

William Burroughs Adding machine 1892

Walter Hunt Safety pin 1849

Joseph Glidden Barbed wire 1874

Chester Carlson ----- ? ----- 1940

Chester Carlson

U.S. Patent 4,235,472R. Sparks & G. SpectorNovember 25, 1980

Thank you