The End of Free Sharing in the Insurance Industry Mark Nowotarski, Patent Agent Markets, Patents & Alliances LLC John Love Director Business Methods John Love, Director Business Methods United States Patent and Trademark Office Tom Bakos FSA, MAAA Tom Bakos Consulting, Inc. ©2004

Outline Intellectual property overview Patent background Patent examination Patents in the P/C industry tom bakos consulting, inc. ©2004

Key Points Insurance inventions can now be protected with patents. Patents give the right to stop copying. You are an inventor. tom bakos consulting, inc. ©2004

Patents in the Insurance Industry The Land Rush is On tom bakos consulting, inc. ©2004

1998 State Street Bank Decision We take this opportunity to lay this ill conceived notion to rest … Since the 1952 Patent Act, business methods have been, or should have been, subject to the same legal requirements for patentability as applied to any other process or method. State St. Bank vs. Signature Financial (Fed. Cir. 1998) tom bakos consulting, inc. ©2004

tom bakos consulting, inc. Insurance Patent Activity State Street ©2004

Major Types of Intellectual Property Trademark Trade secret Copyright Patent tom bakos consulting, inc. ©2004

Intellectual Property Comparison tom bakos consulting, inc. ©2004 Filing CostTermValue Patent$10k – $20k20 yearsBillions Copyright$0.5k95 yearsBillions Trademark$1k - $2kAs long as you use it Billions Trade secret naAs long as its secret Billions

What is a Patent? tom bakos consulting, inc. ©2004

A Patent is a Publication A patent is a publication that describes a new invention. A patent owner has the right to exclude others from making, using or selling the claimed invention for 20 years. Patents are enforceable only in the countries they are issued in. tom bakos consulting, inc. ©2004

Two Parts to a Patent 1.Written Description: Instructions on how to make and use the invention. 2.Claims: Exact definition of the invention(s). tom bakos consulting, inc. ©2004

I claim as my invention: 1.An electric lamp … comprising a filament of carbon of high resistance …. tom bakos consulting, inc. ©2004 Written Description Claims T.A. Edison – Electric Lamp US 223,898 Jan 27, 1880

tom bakos consulting, inc. ©2004 I claim as my invention: 1.A carbon in combination with a lamp…. H. Woodward – Electric Light US 181,613 Aug. 29, 1876 Written Description Claims

Patentable Inventions 35 U.S.C. 101 Manufactured item Composition of matter MachineProcess tom bakos consulting, inc. ©2004

Not Patentable Contract Wish tom bakos consulting, inc. ©2004

Too Late to be Patentable Inventions For Sale Public Inventions tom bakos consulting, inc. ©2004

Key Points Insurance inventions can now be protected with patents. Patents give the right to stop copying. You are an inventor. tom bakos consulting, inc. ©2004