PATENT LAW Randy Canis CLASS 4 Statutory Bar; Patent Searching 1
Statutory Bars (Chapter 5) Statutory Bars 102. Conditions for patentability; novelty and loss of right to patent A person shall be entitled to a patent unless (b) the invention was patented or described in a printed publication in this or a foreign country or in public use or on sale in this country, more than one year prior to the date of the application for patent in the United States, or 2 3 Statutory Bars Under historic 102, encourages timely filing and disclosure of inventive activity. An inventor must file within a year of any public use or offer to sell the invention. Anyone, including individuals unknown to the inventor, can defeat tthe patent tby placing the invention in public use or sale. The 1-year grace period permits the inventor to weigh the advantages of patent protection, to perfect the invention, and to draft a patent application. Egbert v. Lippmann Not necessary to have more than one patented article publicly used. Whether the use of an invention is public or private does not necessarily depend upon the number of persons to whom its use is known. Some inventions are by their very nature only capable of being used where they cannot be seen or observed by the public eye. If its inventor sells a machine of which his invention forms a part, and allows it to be used without restriction of any kind, the use is a public one. Egbert v. Lippman, 104 U.S. 333 4 5 Egbert v. Lippmann Inventor No obligation of secrecy No condition or restriction Not presented for purposes of experimentation No testing of qualities Invention was complete Not further changed or improved Public Use Public use is use by the inventor, or by a person who is not under any limitation, restriction, or obligation of secrecy to the inventor. Patents and the Federal Circuit, 7 th Edition 6 7 1
Metallizing Engineering Co. v. Kenyon Bearing & Auto Parts Procedural Background Factual Background Issue: Does a secret, commercial use by an applicant for a patent more than one year before the filing of a patent invalidate the applicant s patent? Metallizing Engineering Co. v. Kenyon Bearing & Auto Parts if he does beyond [the 1 year period of probation], he forfeits his right regardless of how little the public may have learned about the invention; just as he can forfeit it by too long concealment, even without exploiting the invention at all. It is indeed true that an inventor may continue for more than a year to practice his invention for his private purposes of his own enjoyment and later patent it. But that is, properly considered, not an exception to the doctrine, for he is not then making use of his secret to gain a competitive advantage over others; he does not thereby extend the period of his monopoly. 8 9 Metallizing Engineering Co. v. Kenyon Bearing & Auto Parts Ruling The court reversed the district court s opinion that the patent was valid and infringed. Holding it is a condition upon an inventor s right to a patent that he shall not exploit his discovery competitively after it is ready for patenting; he must content himself with either secrecy, or legal monopoly. Dicta Who is Learned Hand? 1872-1961 Judge of U.S. District Court for the Southern District of New York, 1909-24 Judge of U.S. Court of Appeals for the 2nd Circuit, 1924-51 Very well renown for his decisions, especially his patent law decisions See http://www.conservativeforum.org/authquot.asp?id=915 http://www.hup.harvard.edu/catalog/gunlex.html 10 11 Experimental Use City of Elizabeth v. American Nicholson Pavement Co. Procedural Background Factual Background Issue: Was the invention in public use or on sale for more than the allowable period of time prior to patenting? 12 13 2
City of Elizabeth v. American Nicholson Pavement Co. Now, the nature of a street pavement is such that it cannot be experimented upon satisfactorily except on a highway, which is always public. When the subject of invention is a machine, it may be tested and tried in a building, either with or without closed doors. In either case, such use is not a public use, with the meaning of the statute, so long as the inventor is engaged, in good faith, in testing its operation. City of Elizabeth v. American Nicholson Pavement Co. So long as he does not voluntarily allow others to make it and use it, and so long as it is not on sale for general use, he keeps the invention under his own control, and does not lose his title to the patent. 14 15 City of Elizabeth v. American Nicholson Pavement Co. Ruling Holding Whilst the supposed machine is in such experimental use, the public may be incidentally deriving a benefit from it. But if the inventor allows his machine to be used by other persons generally, either with or without compensation, or if it is, with his consent, put on sale for such use, then it will be in public use and on public sale, within the meaning of the law. Dicta Lough v. Brunswick Corp. An evaluation of a question of public use depends on how the totality of the circumstances of the case comports with the policies underlying the public use bar. These policies include: (1) discouraging the removal, from the public domain, of inventions that the public reasonably has come to believe are freely available; (2) favoring the prompt and widespread disclosure of inventions; (3) allowing the inventor a reasonable amount of time following sales activity to determine the potential economic value of a patent; and (4) prohibiting the inventor from commercially exploiting the invention for a period greater than the statutorily prescribed time. 16 17 Lough v. Brunswick Corp. Experimental Use What factors are used in the totality of circumstances test? To determine whether a use is "experimental," a question of law, the totality of the circumstances must be considered, including various objective indicia of experimentation surrounding the use, such as the number of prototypes and duration of testing, whether records or progress reports were made concerning the testing, the existence of a secrecy agreement between the patentee and the party performing the testing, whether the patentee received compensation for the use of the invention, and the extent of control the inventor maintained over the testing. The last factor of control is critically important, because, if the inventor has no control over the alleged experiments, he is not experimenting. If he does not inquire about the testing or receive reports concerning the results, similarly, he is not experimenting. As a general rule, an experimental use only negates a statutory bar when the inventor was testing claimed features of the invention. Courts view the totality of the circumstances when determining whether an invention was on sale or in public use The experimental use exception does not include market testing. 18 19 3
On Sale Pfaff v. Wells Electronics, Inc. Procedural Background Factual Background Issue: Does the commercial marketing of a newly invented product mark the beginning of the 1-year grace period even though the invention has not yet been reduced to practice? 20 21 Pfaff v. Wells Electronics, Inc. Plaff did not make and test a prototype of the new device before offering to sell it in commercial quantities. Pfaff v. Wells Electronics, Inc. Invention inventor s conception rather than a physical embodiment of the idea How does reduction to practice come into play? an invention may be patented before it is reduce to practice 22 23 Pfaff v. Wells Electronics, Inc. On Sale Test 1) The product must be the subject of a commercial offer for sale 2) The invention must be ready for patenting Proof of reduction to practice before the critical date; or Proof that prior to the critical date the inventor had prepared drawings or other descriptions of the invention that were sufficiently specific to enable a person skilled in the art to practice the invention Pfaff v. Wells Electronics, Inc. Ruling Judgment of the Court of Appeals is affirmed. Holding Dicta 24 25 4
Single Sale Can a single sale bar patentability? Experimental Use/On Sale Can a use still be found to be experimental if a sale was made? 26 27 Sale of Rights What about sale of the rights to the patent before the critical date? Third Party Activities What are the implications of someone other than the inventor putting the invention into the public use or on sale before the critical ca date? 3 categories: Uses which themselves inform others about the invention Uses which by their nature do not inform others about the invention Secret uses 28 29 Electric Storage Battery Co. v. Shimadzu [T]he evidence is that the petitioner has continuously employed the alleged infringing machine and process for the production of lead oxide powder used in the manufacture of plates for storage batteries which have been sold in quantity. Procedural Background: 1999: Appeal before U.S. Court of Appeals for Fed. Circuit Factual Background: Abbott sued, Novopharm, and Invamed for infringement of the '207 patent after each of them filed an Abbreviated New Drug Application (ANDA) at the United States Food and Drug Administration seeking approval to market a generic version of Hytrin containing the Form IV anhydrate.1 The defendants each raised the affirmative defense of patent invalidity under the on-sale bar of 35 U.S.C. 102(b), asserting that Form IV was anticipated because it was sold in the United States more than one year before the '207 patent's filing date, October 18, 1994. Issue: 30 31 5
It is an act of patent infringement under certain circumstances to file an ANDA seeking approval to commercial manufacture, use or sell a drug claimed in a patent before the expiration date of such patent. See 35 U.S.C. 271(e)(2)(A). What is the difference between a question of law and a question of fact and why does it matter? What is a standard for review? What does do novo mean? 32 33 Test Before the critical date, the invention must both be the subject of a commercial sale or offer for sale and be ready for patenting. [T]here is no requirement that a sales offer specifically identify all the characteristics of an invention offered for sale or that the parties recognize the significance of all of these characteristics at the time of the offer. 34 35 If a product that is offered for sale inherently posses each of the limitations of the claims, then the invention is on sale, whether or not the parties to the transaction recognize that the product possesses the claimed characteristics. 36 Ruling [T]he district court properly granted summary judgment of invalidity, we affirm. Holding During an offer for sale, it is irrelevant as to whether another knew that the novel aspect was part of the sale to trigger the on sale bar. Dicta 37 6
Theft as a Prior Use The prior-public-use proviso was enacted by Congress in the public interest. It contains no qualifications or exception which h limits it the nature of the public use. How do you feel about this line of reasoning? Is it fair to the inventors? Is it fair to the public? W.L. Gore & Associates v. Garlock The secret commercialization of a product or method by a third party does not provide a statutory basis to bar an applicant from obtaining a patent on the product or method. 38 39 W.L. Gore & Associates v. Garlock As between a prior inventor who benefits from a process by selling its product by suppresses, conceals, or otherwise keeps the process from the public, a later inventor who promptly files a patent application from which the public will gain a disclosure of the process, the law favors the latter. Printed Publications Fundamental issue is the printed publication publically accessible? 40 41 Knowledge of Publications a [patent reference] on display for public view in remote cities in a far-away land may create a burden of discovery for one without the time, desire, or resources to journey there e in person or by agent to observe that which is registered and protected under [foreign] law. Such a burden, however is by law imposed upon the hypothetical person of ordinary skill in the art who is charged with knowledge of all the contents of the relevant prior art. Does actual knowledge matter? 42 In re Hall Procedural Background Factual Background Issue: When does a thesis count as prior art? 43 7
In re Hall [P]ublic accessibility has been called the touchstone in determining whether a reference constitutes a printed publication bar under 35 U.S.C. 102(b) The proponent of the publication bar must show that prior to the critical date the reference was sufficiently accessible so that such a one by examining the reference could make the claimed invention without further research or experimentation. In re Hall Ruling Affirmed Board s decision to reject claims. Holding The proponent of the publication bar must show that prior to the critical date the reference was sufficiently accessible, at least to the public interested in the art, so that such a one by examining the reference could make the claimed invention without further research or experimentation. Dicta 44 45 Other Possible Publications More on AIA Paper delivered orally, 500 persons having ordinary skill in the art heard the presentation, and at least six copies of the paper were distributed ib t d Public use? 46 47 New 102 After AIA New 102 After AIA (a) NOVELTY; PRIOR ART.--A person shall be entitled to a patent unless-- (1) the claimed invention was patented, described in a printed publication, or in public use, on sale, or otherwise available to the public before the effective filing date of the claimed invention; or (2) the claimed invention was described in a patent issued under section 151, or in an application for patent published or deemed published under section 122(b), in which the patent or application, as the case may be, names another inventor and was effectively filed before the effective filing date of the claimed invention. 48 (b) EXCEPTIONS.-- (1) DISCLOSURES MADE 1 YEAR OR LESS BEFORE THE EFFECTIVE FILING DATE OF THE CLAIMED INVENTION.- -A disclosure made 1 year or less before the effective filing date of a claimed invention shall not be prior art to the claimed invention under subsection (a)(1) if-- (A) the disclosure was made by the inventor or joint inventor or by another who obtained the subject matter disclosed directly or indirectly from the inventor or a joint inventor; or (B) the subject matter disclosed had, before such disclosure, been publicly disclosed by the inventor or a joint inventor or another who obtained the subject matter disclosed directly or indirectly from the inventor or a joint inventor. 49 8
New 102 After AIA New 102 After AIA (2) DISCLOSURES APPEARING IN APPLICATIONS AND PATENTS.--A disclosure shall not be prior art to a claimed invention under subsection (a)(2) if-- (A) the subject matter disclosed was obtained directly or indirectly from the inventor or a joint inventor; (B) the subject matter disclosed had, before such subject matter was effectively filed under subsection (a)(2), been publicly disclosed by the inventor or a joint inventor or another who obtained the subject matter disclosed directly or indirectly from the inventor or a joint inventor; or (C) the subject matter disclosed and the claimed invention, not later than the effective filing date of the claimed invention, were owned by the same person or subject to an obligation of assignment to the same person (c) COMMON OWNERSHIP UNDER JOINT RESEARCH AGREEMENTS.--Subject matter disclosed and a claimed invention shall be deemed to have been owned by the same person or subject to an obligation of assignment to the same person in applying the provisions of subsection (b)(2)(c) if-- (1) the subject matter disclosed was developed and the claimed invention was made by, or on behalf of, 1 or more parties to a joint research agreement that was in effect on or before the effective filing date of the claimed invention; (2) the claimed invention was made as a result of activities undertaken within the scope of the joint research agreement; and (3) the application for patent for the claimed invention discloses or is amended to disclose the names of the parties to the joint research agreement. 50 51 New 102 After AIA How Will the Grace Period Work? (d) PATENTS AND PUBLISHED APPLICATIONS EFFECTIVE AS PRIOR ART.--For purposes of determining whether a patent or application for patent is prior art to a claimed invention under subsection (a)(2), such patent or application shall be considered to have been effectively filed, with respect to any subject matter described in the patent or application-- (1) if paragraph (2) does not apply, as of the actual filing date of the patent or the application for patent; or (2) if the patent or application for patent is entitled to claim a right of priority under section 119, 365(a), or 365(b), or to claim the benefit of an earlier filing date under section 120, 121, or 365(c), based upon 1 or more prior filed applications for patent, as of the filing date of the earliest such application that describes the subject matter. Inventor must disclose the invention publically first Less than one year before filing Before a third-party discloses How will proof of disclosure be measured? Don t know Is experimental use still a viable exception? Don t know 52 53 Grace Period Examples Patent Searching 54 55 9
Patent Searches When should a patent search be performed? Prior to drafting an application Before filing an application During the drafting of an application After issuance; possible reexamination Patent Searches Why should a search be performed? Worthwhile investment Identify possible scope Draft around the art 56 57 Patent Searches Where/how should the search be performed? Performed online Search patents and published patent applications Search for other possible art Patent Searches Type of Searching Key word search Inventor search Assignee search Limitation of what s listed without separate assignment search Classification Search 58 59 Patent Searches How is prior art disclosed to the patent office? IDS Program Completed All course materials - Copyright 2002-12 Randy L. Canis, Esq. 60 61 10