Developing/Protecting Your Idea Peter H. Durant Nixon Peabody LLP [email protected] March...

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Developing/Protecting Your Idea Peter H. Durant Nixon Peabody LLP [email protected] March 30/31, 2005 Copyright © 2005 Nixon Peabody LLP

Transcript of Developing/Protecting Your Idea Peter H. Durant Nixon Peabody LLP [email protected] March...

Developing/Protecting Your Idea

Peter H. DurantNixon Peabody LLP

[email protected]

March 30/31, 2005

Copyright © 2005 Nixon Peabody LLP

                             

                     

                                          

                 

                                          

                 

Clients

“We go to market in 10 minutes and

we need to copyright/patent/trademark

our drug/software/surgical technique.”

                             

                     

                                          

                 

                                          

                 

Me

                             

                     

                                          

                 

                                          

                 

Overview

Learn more than you wanted to know about:

– Patents & Copyrights

– Inventorship

– Bayh-Dole Act

– Issues/options to exploit your idea

                             

                     

                                          

                 

                                          

                 

Patents/Patent Rights

Machine, process, article of manufacture, chemical composition, plants, software, and improvements to any of the above

Right to exclude others 20-year term from filing, protracted

examination First to invent vs. first to file

                             

                     

                                          

                 

                                          

                 

Requirements For Patentability

Invention must be novel, non-obvious and useful

Enablement/Best Mode– Description must enable others to make

and use the invention

– Application must have best mode of practicing invention then known to inventor

• Duty to disclose all information known to be material to patentability, e.g., prior art, prior uses/publications, offers to sell, etc.

                             

                     

                                          

                 

                                          

                 

Inventorship

U.S. patent applications are filed in the name of inventor(s)– Determining ‘inventorship’ is …

determining who conceived thesubject matter at issue, whetherthat subject matter is … in aclaim in an interference.”

                             

                     

                                          

                 

                                          

                 

Inventorship (cont’d)

Ownership– No contractual obligation inventor is the

owner

– Contractual obligation can change ownership and/or rights

– Joint inventors have undivided interest in the whole invention with no duty to account to other inventors (absent a written agreement)

                             

                     

                                          

                 

                                          

                 

Joint Inventorship

Joint inventors need not physically work

together or at the same time JI’s need not contribute to same degree Inventive contribution to a single claim

is sufficient for joint inventorship Can usually correct inventorship unless

error made to manipulate ownership

                             

                     

                                          

                 

                                          

                 

Good Notebook Practices

Bound notebook Written in ink Dated/Signed Witnessed by non-inventor Explanation of

experimental work and its significance

                             

                     

                                          

                 

                                          

                 

Copyright

Copyright protects “tangible expression” of original creative work of authorship (not idea, process, or concept)

No protection against independent creation

Rights exist on creation of work– Legal registration enhances protection

Term – life of author + 70 years

                             

                     

                                          

                 

                                          

                 

RIT Students & IP Ownership

RIT does not own student’s IP unless:– Student paid by RIT to perform work

leading to IP

– IP resulted from grant/contract funding

– Student contractually argues, e.g., to take a particular cause

                             

                     

                                          

                 

                                          

                 

Work For Hire Employees

If employee is author and work is created within scope of employment employer (RIT) owns

RIT policy gives ownership to authors of articles/books

When in doubt, get a written assignment of copyright rights

                             

                     

                                          

                 

                                          

                 

Work for Hire Consultants

If work is commissioned, contractor is author only IF:– work is listed in the statute (collective work,

audiovisual work, translation, supplementary work, compilation, instructional text, test, test answers, or atlas) AND

– written agreement states work is to be considered a work made for hire

Practical result: Get assignment!

                             

                     

                                          

                 

                                          

                 

Bayh-Dole Act (1980)

Applies to federally-funded projects and resulting patentable inventions

Faculty/staff/employees must disclose IP to RIT and RIT must disclose IP to govt agency

RIT may elect to take title RIT cannot assign ownership of IP to third

parties (other than patent management firm)

                             

                     

                                          

                 

                                          

                 

Bayh-Dole Act (cont’d) Government receives royalty-free, non-

exclusive license (government use rights only)

Preference to small companies for licenses

RIT must share (no set amount) license fees/royalties with inventors - balance applied to scientific research/education

RIT cannot agree to royalties in advance

                             

                     

                                          

                 

                                          

                 

I.R.S. Rev. Proc. 97-14

Applies to IP developed at facility financed by tax-exempt bonds and says:

– RIT must own IP

– Cannot license IP to sponsor until IP exists

– Sponsor must pay fair market price

                             

                     

                                          

                 

                                          

                 

U.S. [Software] Export Controls

Extremely detailed area of law subject to constant change

5 Key factors– Tech characteristics of exported item

– Ultimate destination

– End-user

– End-use

– Other activities of receiving/importing party

                             

                     

                                          

                 

                                          

                 

What is Possible Illegal“Export” of Software?

Shipment of U.S. – origin software or products derived from such software

Visual look at code by foreign nationals Email/oral exchange of info re code Application abroad of knowledge or technical

experience code acquired in U.S. Downloading/other electronic transmission of

code to websites accessible outside U.S.

                             

                     

                                          

                 

                                          

                 

ConstitutionArticle 1, Section 8

Congress shall . . . promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive ___ ___ ___ ___ ___ to their respective Writings and Discoveries . . .