1. Copyright Ellis Horowitz 2011-2012 1 Short Description of Patents Prof. Ellis Horowitz

2. Copyright Ellis Horowitz, 2011-20122 Patents In the United States, a person may patent any invention that is new, useful and, non-obvious. Unlike copyrights, the inventor must register the patent with the United States Patent Office. If the Patent Office determines that the patentability requirements have been satisfied, then a patent will be granted. The owner of a patent has the right to exclude all others from making, using, selling, or importing the invention. This exclusive right is granted for 20 years for most patents. In order to pass the non-obvious, or novel, requirement, the invention must not have been revealed in some form of “prior art.” –Prior art is defined as the body of public knowledge that predates the date of invention. That is, the invention would not have been obvious to a person skilled in the art with which the invention is concerned at the time the invention was made. Prior art includes prior patents and publications and common knowledge in a field. In the United States, an application must be filed within one year of the date of first sale or offer of sale or the sale of anything incorporating the invention, within one year of a description of the invention, or within one year of a public or commercial use of the invention.

3. Copyright Ellis Horowitz, 2011-20123 Search Engine Ads are Governed by The ‘361 Patent Patent number Patent title Patent inventors Patent owner Patent filing date Patents are highly Structured documents That include: 1. Initial page 2. Abstract 3. Summary of Invention 4. Description of Invention 5. Claims

4. Copyright Ellis Horowitz 2011-2012 Patents are required to have figures; Every box is numbered and referred to in the body of the patent This figure is describing the system for maintaining ads and the amounts advertisers are willing to pay if their ad is clicked 4

5. Copyright Ellis Horowitz 2011-2012 5 Figure 7 of the Patent and Its Explanation

6. Copyright Ellis Horowitz 2011-2012 6 Patents include Claims; here is Claim 1 Claims may be independent or dependent Below claim 2 is seen to depend upon claim 1

7. Copyright Ellis Horowitz, 2011-20127 The System for Advertisers Described in the ‘361 Patent At any time an advertiser can log into a system for managing his ads, altering bid amounts, increasing the balance of the account, and reviewing the click history Google Adwords has adopted a very similar system current position of your ad if the search term is entered bids of your competitors click history

8. Copyright Ellis Horowitz, 2011-20128 Overture Sues Google http://www.evolt.org/article/Overture_Sues_Google/1/24115/index.html?format=print Patent suits are heard in US Federal Court, not State courts

9. Copyright Ellis Horowitz, 2011-20129 Yahoo and Google Settle http://www.realseo.com/archives/000508.html Google gives Yahoo 2.7 million shares of Google stock, worth approximately $300 million dollars