Patents IPatents IIntroduction to Patent LawIntroduction to Patent Law

Class Notes: February 19, Class Notes: February 19, 20032003

Law 507 | Intellectual Property | Spring Law 507 | Intellectual Property | Spring 20032003

Professor WagnerProfessor Wagner

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Today’s AgendaToday’s Agenda

1. Introduction to Patent Law

a) Brief History

b) The Structure of the US Patent System

• What is a patent?

• The patent prosecution process

• Patent litigation & the federal circuit

c) Theories of Patent Law

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History of the US Patent SystemHistory of the US Patent System

Article I, § 8, cl. 8:Article I, § 8, cl. 8:[to] promote the Progress of Science and useful Arts by securing for limited Times to Authors and Inventors the exclusive right to their respective Writings and Discoveries.

Patent Statute:Patent Statute:• 35 U.S.C. et seq.• Since 1790• Most recently re-enacted in 1952 (“The ‘52

Act”)

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The Structure of a US PatentThe Structure of a US PatentUS Patent No. 6,203,230US Patent No. 6,203,230

1. Specificationa) Front pageb) Abstractc)c) Written DescriptionWritten Description

1) Description of Technical Field

2) Background of the Invention

3) Summary of the Invention

4) Detailed Description of the Invention

2. Drawings3. Claims

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The Structure of the US Patent The Structure of the US Patent SystemSystem

Two Distinct PhasesTwo Distinct Phases

1.1. Prosecution Phase (also: Examination)Prosecution Phase (also: Examination)• Administrative Agency (USPTO)• End: an “Issued Patent” (enables

enforcement phase)

2.2. Enforcement PhaseEnforcement Phase• Private actions (civil suits, enforced by

patentees)• Litigation under federal law

o Where? 28 U.S.C. § 1338; 28 U.S.C. § 1295

• Appeals to the the Federal Circuit

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The Life of a US PatentThe Life of a US Patent

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The Requirements for The Requirements for PatentabilityPatentability

A valid patent must be . . .A valid patent must be . . .1. Fully disclosed (§ 112) (Feb. 21)2. Not subject to a statutory bar (§ 102) (Feb. 26)3. Novel (§ 102) (Feb. 26)4. Nonobvious (§ 103) (Feb. 28)

Validity analysis:Validity analysis:1. During prosecution phase (by USPTO

‘Examiners’)2. During enforcement phase - defense to

infringement (by Courts) … but, ‘presumption of validity’

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Patent Prosecution BasicsPatent Prosecution Basics

Key Points about ProsecutionKey Points about Prosecution

1. Ex parte process

2. Private/secret (for 24 months)

3. Procedures allow “continuing” applications

a) Around 90% of all applications eventually result in a

patent

b) Internal procedural incentives to issue patents

4. Two-stage appeals

1. Board Patent Appeals and Interferences (Board)

2. Federal Circuit (also: District DC + Fed. Cir.)

5. Reexamination (ex parte, inter-partes)

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The Federal CircuitThe Federal Circuit

1.1. Mandatory location of all appeals involving Mandatory location of all appeals involving cases “arising under” the patent laws.cases “arising under” the patent laws.

2.2. Also, appeals from denials of patent Also, appeals from denials of patent applications by the USPTO.applications by the USPTO.

Result:o Nationwide jurisdictiono Administrative oversight

Why structure the patent system this way?Why structure the patent system this way?• Will it really reduce forum shopping?• Is there some other theory at work?

o If so, what does this imply about the Federal Circuit’s mandate?

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Patent TheoriesPatent TheoriesWhy do you think the patent law is generally Why do you think the patent law is generally considered the most utilitarian of the IP regimes?considered the most utilitarian of the IP regimes?

If the patent law is all about incentives, then If the patent law is all about incentives, then consider what incentives the patent law creates?consider what incentives the patent law creates?

1. Invention2. Disclosure3. Commercialization4. Investment in R&D5. Design-Around

What are the costs of granting patents?What are the costs of granting patents?

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Patent TheoriesPatent Theories

Why not simply subsidize Why not simply subsidize invention/innovation directly?invention/innovation directly?

1. Government-sponsorship of research2. Cash rewards for inventive activity

Won’t these schemes create the same incentives, with less of the costs?

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