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Patent/IP for Entrepreneur HSUANYEH CHANG, PHD, ESQ. PATENT ATTORNEY & ATTORNEY AT LAW HSUANYEH LAW GROUP, PC 1 © 2016 Hsuanyeh Law Group PC

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Patent/IP  for  EntrepreneurHSUANYEH   CHANG,   PHD,  ESQ.

PATENT   ATTORNEY   &  ATTORNEY   AT   LAWHSUANYEH   LAW  GROUP,   PC

1©  2016  Hsuanyeh  Law  Group  PC

“Business  Is  War,  Patent  Is  Sword”

2

I  am  the  best  seller!

We  protect  the  best  seller!

©  2016  Hsuanyeh  Law  Group  PC

Overview  of  Intellectual  Property  Rights  (1/2)

Copyright (©)  ◦ Protects  original  works  of  authorship  

fixed  in  tangible  medium  of  expression

Trademark (TM,  SM,  ®)◦ Protects  marks  that  identify  and  

distinguish  source  of  goods/services

Trade  Secret◦ Protects  secret  information  that  derives  

economic  values  from  being  misappropriated

3©  2016  Hsuanyeh  Law  Group  PC

Overview  of  Intellectual  Property  Rights  (2/2)Patent  – new and  useful product  and  process

4

Android,  allegedly  infringingiPhone

©  2016  Hsuanyeh  Law  Group  PC

Invalidated,  Feb.  26,  2016

OutlineWhat  is  a  Patent?

Why  entrepreneur   needs  a  Patent?

What  can  entrepreneur   do  with  a  Patent?

How  to  get  a  Patent?

Some  Examples

5©  2016  Hsuanyeh  Law  Group  PC

What  is  a  Patent?Patent  is  Disclosure◦ Quid  Pro  Quo  (“this  for  that”)  – In  return  to  applicant’s  disclosureof  the  invented  new technology,   the  government  grants  applicant  an  exclusive  right  for  a  certain  time  period   to  prevent  others  from  making  and  using  the  same  invention

Patent  is  Personal  Property◦ Inventorship (Conception/Creation)  – Patent  rights  are  granted  to  the  inventors  who  first  file  (after  AIA)  an  application

◦ Ownership (Possession)  – Ownership  of  a  patent  is  determined  by  contract.  An  inventor  is  presumed  the  owner  but  not  necessarily  true  in  all  cases.  Most  employment   contracts  require  employees  to  transfer  patent  ownership  to  their  employer  

Patent  is  Right  to  Exclude◦ Patent  claims set  forth  the  patent  scope  (“metes  and  bounds”)

6©  2016  Hsuanyeh  Law  Group  PC

Types  of  PatentUtility  Patent  (20  years  from  filing)◦ New  and  useful  process,  machine,  manufacture,  or  composition  of  matter

Design  Patent  (15  years  from  issuance)◦ New,  original,  and  ornamentaldesign  for  an  article  of  manufacture

Plant  Patent  (20  years  from  filing)◦ Asexually reproduced  new  variety  of  plant

7©  2016  Hsuanyeh  Law  Group  PC

Why  entrepreneur  needs  a  Patent?Protect  ideas  – ideas  worth  nothing  until  some  legal  protections  are  obtained

Attract  venture  capital  investment  – although  getting  a  patent  does  not  guarantee  venture  investments,   the  inability  to  get  one  shows  likelihood  of  failure

Increase  company  value – startups  with  patents  are  normally  valued  20-­‐50%  higher  than  without  a  patent

8©  2016  Hsuanyeh  Law  Group  PC

What  can  entrepreneur  do  with  a  Patent?Legal  barrier  – Patents  create  a  high  barrier   to  prevent  competitors  from  entering  into  the  market

Licensing – Startups  can  earn  income  by  entering  into  a  patent  licensing  agreement  with  partners   (e.g.,  B2B  customers,  OEM  providers,  etc.).

Business  loan  – Sometimes,  startups  can  use  patents  as  collateral  to  secure  a  business   loan

9©  2016  Hsuanyeh  Law  Group  PC

How  to  get  a  Patent?File  an  application  in  the  Patent  Office

If  the  application  is  not  granted  outright,  amend  the  application  and/or  argue  with  the  Patent  Office  for  patentability

Conditions  of  Patentability◦ Utility  (Sec.  101)  – new  and  useful,  not an  abstract  idea◦ Novelty  (Sec.  102)  – not  anticipated  by  prior  art◦ Nonobviousness (Sec.  103)  – not  obvious  to  one  of  ordinary  skill  in  the  art  at  the  time  of  invention/filing

10©  2016  Hsuanyeh  Law  Group  PC

Patent  Application  Process

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Allow?

Provisional

Non-­‐Provisional(12  months)

Publication(18  months)

Patent!  J

Rejection Amendment  and  Response/RCE

Appeal

Foreign/PCT  Appl.(12  months)

PCT  National  Stages(30  months)

Yes

No

Abandon  L

©  2016  Hsuanyeh  Law  Group  PC

Example  1:    Bladeless  Fan

12©  2016  Hsuanyeh  Law  Group  PC

Example  1:  Prior  Art

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ò Originally  filed  Claim  1.    A  bladeless  fan  assembly  for  creating  an  air  current,  the  fan  assembly  comprising:

ò a  nozzle  and  a  device  creating  an  air  flow  through  the  nozzle,  the  nozzle comprising:  

ò an  interior  passage,  

ò a  mouth  for  receiving  the  air  flow  from  the  interior  passage,  and

ò a  Coanda surface  located  adjacent  the  mouth  and  over  which  the  mouth  is  arranged  to  direct  the  air  flow.

Prior  Art  –1981,  Toshiba

©  2016  Hsuanyeh  Law  Group  PC

Example  1:    Patented ClaimUS  Patent  No.  8,308,445  (Issued  November  13,  2012)

Patented  Claim  1.    A  bladeless   fan  assembly  for  creating  an  air  current,  the  fan  assembly  comprising:  ◦ a  nozzle,  and  a  device  creating  an  air  flow  through  the  nozzle,  the  nozzle  comprising  

◦ an  interior  passage,  formed  between  a  first  wall  and  a  second  wall,  wherein  a  distal  end  of  the  first  wall  overlaps  a  distal  end  of  the  second  wall  to  form,  near  the  distal  ends  of  the  first  and  second  walls,  

◦ a  mouth  for  receiving   the  air  flow  from  the  interior  passage,  ◦ a  tapered  region,  located  downstream  from  the  mouth,  and  ◦ an  outlet,  located  downstream  of  the  tapered  region,  for  releasing   the  air  flow  from  the  nozzle,  

wherein  a  distance  between  the  first  wall  and  the  second  wall  is  greater  at  the  mouth  than  at  the  outlet,  and  

◦ a  Coanda surface  located  adjacent  the  outlet,  wherein  the  first  wall  is  curved  proximate  to  its  distal  end  to  direct   the  air  flow  over  the  Coanda surface,  and  wherein  a  thickness  of  the  first  wall  decreases  near  the  distal  end,  and  a  thickness  of  the  second  wall  increases  near  the  distal  end.

Substantially  narrowed  in  scope  by  adding  the  textual   language   in  red.

14©  2016  Hsuanyeh  Law  Group  PC

Example  2:  Thumb  Drive

15©  2016  Hsuanyeh  Law  Group  PC

Example  2:    Prior  ArtExemplary  Claim  1.  A  portable  memory  device,  comprising:◦ a  USB  connector;◦ a  flash  memory  module  for  storing  data;  and◦ a  USB  controller  coupled  between  the  USB  connector  and  the  flash  memory  module.

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Prior  Art  -­‐ 1

Prior  Art  -­‐ 2

©  2016  Hsuanyeh  Law  Group  PC

Example  2:    Patented ClaimUSP  6,148,354  (Issued  November  14,  2000)

Claim  1.  A  USB  flash  memory  device  for  connecting  to  a  USB-­‐defined  bus,  the  flash  memory  device  comprising:  ◦ (a)  at  least  one  flash  memory  module  for  storing  data;  ◦ (b)  a  USB  connector  for  connecting  to  the  USB-­‐defined  bus  and  for  sending  packets  on,  and  for  receiving  packets  from,  the  

USB-­‐defined  bus;  ◦ (c)  a  USB  controller  for  controlling  said  at  least  one  flash  memory  module  and  for  controlling  said  USB  connector according  to  

at  least  one  packet  received  from  the  USB-­‐defined  bus,  such  that  data  is  written  to  and  read  from  said  at  least  one  flash  memory  module;  

◦ (d)  an  electrical  interface  for  connecting  to  said  USB  connector  and  for  receiving  said  packets  from  said  USB  connector  as  a  plurality  of  electrical  signals;  

◦ (e)  a  logical  interface  for  connecting  to  said  electrical   interface  and  for  translating  said  plurality  of  electrical  signals  to  logic  signals,  said  logic  signals  being  passed  to  said  at  least  one  flash  memory  module;  

◦ (f)  a  functional  interface  for  receiving  said  logic  signals  such  that  if  said  logic  signals  represent  a  USB  functional  packet,  said  functional  interface  sends  a  USB  command  to  said  USB  controller  according  to  said  USB  functional  packet;  

◦ (g)  an  application  packet  extractor  for  connecting  to  said  logical  interface  and  for  receiving  said  logic  signals,  said  application  packet  extractor  extracting  at  least  one  packet  from  said  logic  signals;  and  

◦ (h)  an  application  command  interpreter  for  receiving  said  at   least  one  packet  and  for  determining  a  command  according  to  said  at   least  one  packet,  said  command  being  passed  to  said  USB  controller.

Substantially  narrowed  in  scope  by  adding  the  textual   language   in  red.

17©  2016  Hsuanyeh  Law  Group  PC

Contact  Information

Hsuanyeh  Chang,  PhD,  Esq.

張宣業博士律師

Patent  Attorney  &  Attorney-­‐at-­‐[email protected](617)  599-­‐8282  (direct)www.hsuanyeh.com

18©  2016  Hsuanyeh  Law  Group  PC