1. PatentEng-Berkeley-LavianWeek 2: Recognizing Intellectual Property1 Patent Engineering IEOR 190G CET: Center for Entrepreneurship &Technology Week 2 Dr. Tal Lavian (408) 209-9112 Tlavian@cs.berkeley.edu 321 Haviland Mondays 4:00-6:00

2. PatentEng-Berkeley-LavianWeek 2: Recognizing Intellectual Property2 Innovation: long-term health You need a healthy root system for the tree to flourish! Innovation! Patents Software Ideas Knowledge Work Processes Creativity Skills Trade Secrets Inventions Secret sauce Concepts

3. PatentEng-Berkeley-LavianWeek 2: Recognizing Intellectual Property3 Patent History Created by Congress in 1790 –“…to promote the progress of science and the useful arts by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries.” Article 1, Section 8 July 31, 1790 – 1 st Patent –Samuel Hopkins patents potash –Cost : $4.00 Reviewed by Cabinet Members –Thomas Jefferson – Secretary of State –Henry Knox – Secretary of War –Edmund Randolph – Attorney General –George Washington – President www.uspto.gov, www.ipo.org

4. PatentEng-Berkeley-Lavian4 The Golden Age of Patents Presumption of validity strong Large verdicts / settlements abound Federal Circuit is unpredictable Threat of injection is real Week 2: Recognizing Intellectual Property

5. What is Intellectual Property? "Intellectual property" ("IP") is a catch-all term that includes patents, trademarks, copyrights, and trade secrets. In the most general terms, IP is any product of the human mind which the law protects against unauthorized use by others. "Congress shall have power...to promote the progress of science and useful arts by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries." Article I, Section 8 U.S. Constitution. Copyright © 2008 Duane R Valz. All Rights Reserved PatentEng-Berkeley-Lavian5

6. Week 2: Recognizing Intellectual Property Why is IP Important? Fend off Aggression from Competitors Higher Value Products Negotiation Leverage with Suppliers & Customers Deal Leverage for Acquisitions or Spinouts Stronger Market Position Better Access to Capital Prestige for Company & Its Employees Copyright © 2008 Duane R Valz. All Rights Reserved PatentEng-Berkeley-Lavian6

7. Recognizing Intellectual Property 10,000 foot view Patents Invention that is new and useful Trademarks Logos & symbols Copyrights Right to reproduce an idea or information Includes software Trade Secrets Non-disclosed information that is valuable PatentEng-Berkeley-Lavian7Week 2: Recognizing Intellectual Property

8. Fliesler Meyer LLP8 "So let's not use a stylus, we're going to use the best pointing device in the world -- our fingers. We have invented a new technology called multi- touch. It works like magic, you don't need a stylus, far more accurate than any interface ever shipped, it ignores touches, multi-finger gestures, and BOY have we patented it!” Steve Jobs CEO Apple, Inc. MacWorld Jan 2007 PatentEng-Berkeley-Lavian8Week 2: Recognizing Intellectual Property

9. Fliesler Meyer LLP9 “We've been pushing the state of the art in every facet of this design. We've got the multi-touch screen, miniaturization, OS X in a mobile device, precision enclosures, three advanced sensors, desktop class applications, and the widescreen video iPod. We filed for over 200 patents for all the inventions in iPhone and we intend to protect them." Steve Jobs CEO Apple, Inc. MacWorld Jan 2007 PatentEng-Berkeley-Lavian9Week 2: Recognizing Intellectual Property

10. PatentEng-Berkeley-LavianWeek 2: Recognizing Intellectual Property10 What is a Patent? A form of intellectual property A grant of property right to an inventor by the government Prevents the invention from others for the duration of the patent In return, the inventor must fully disclose the details of the invention to the public

11. PatentEng-Berkeley-LavianWeek 2: Recognizing Intellectual Property11 What is a Patent? (Cont.) Right to Exclude the Making, Using, Selling, Offering for Sale or Importation of a Specified Invention –Limited Time (Typically 20 Years from date of filing with USPTO) –Limited Geographic Territory (issuing country) Monopoly awarded by the Government for sharing the Invention with the public

12. PatentEng-Berkeley-Lavian US Patent Counts 1980-2002 (All Slides are Based on US Utility Patents) Source: 2002 CHI International Indicators (TP2) Database 12Week 2: Recognizing Intellectual Property

13. PatentEng-Berkeley-Lavian Who Produces US Patents 1998- 2002? Source: 2002 CHI International Indicators (TP2) Database 13Week 2: Recognizing Intellectual Property

14. PatentEng-Berkeley-Lavian Who Produced US-Invented US Patents 1998-2002? Source: 2002 CHI International Indicators (TP2) Database 14Week 2: Recognizing Intellectual Property

15. PatentEng-Berkeley-LavianWeek 2: Recognizing Intellectual Property15 Protecting the Idea Protecting the idea, not the embodiment Allowed to claim broader than the physical embodiment Protection: –Limited rights during the life of the patent Filing to end Issue to end

16. Week 2: Recognizing Intellectual Property16 Patents can be in any field Examples of Actual Title of Patents –Method, system, and storage medium for managing computer processing functions –Dynamic residential construction cost estimation process –Construction method for prestressed concrete girder bridges –Structural building panels, apparatus and method for fabricating structural building panels –Integrated finance risk manager and financial transaction modeling device –Personal finance organizer –Surgical system and procedure for treatment of medically refractory atrial fibrillation –Three-dimensional interior design system –System and method for managing real estate –Method for advertising real estate over the internet PatentEng-Berkeley-Lavian

17. Trademarks What is a mark? A word, name, symbol or device used to identify the source of a product or service PatentEng-Berkeley-Lavian17Week 2: Recognizing Intellectual Property

18. Trademarks May include Words: PatentEng-Berkeley-Lavian18Week 2: Recognizing Intellectual Property

19. Trademarks Places you’ll find trademarks: Your clothes: - Your Car PatentEng-Berkeley-Lavian19Week 2: Recognizing Intellectual Property

20. Trade Secrets Trade secrets are generally any info that is confidential and valuable, such as: Customer lists Sales or profit data Product weakness Internal design, processes, and procedures formula for Coke or processing algorithms Is “supposed” to be marked or identified as confidential, but not necessarily. Can be a generally known & used by others – the fact that the company uses it also may also be a trade secret. A trade secret is anything a company says it is. Must have some benefit; e.g. competitive advantage. PatentEng-Berkeley-Lavian20Week 2: Recognizing Intellectual Property

21. Trade Secrets Examples of places engineers find trade secrets: Products: Formulation, algorithms, database schema Data eg: translation tables Manufacturing processes Business Practices: Schedules Suppliers & partners Engineering processes: Tools & how they are used. Development Cycles Testing processes and results PatentEng-Berkeley-Lavian21Week 2: Recognizing Intellectual Property

22. Copyright A copyright protects “original works of authorship” from being copied without the owner's permission for several years. The term of a copyright varies depending on when the author(s) are individuals or a company. The term for an individual author is the life of the author plus 70 years, and for anonymous, psuedoanonymous, and works made for hire is 95 years from publication or 120 years from creation, whichever expires first. Advertisements, packaging, screen prints, jewelry, brochures, manuals, videotapes, music, figurines, photographs, books, decorative parts of merchandise, and any other creative works can all be protected by copyright. Ingredients, raw data, facts, titles, names, common geometric shapes and useful articles (tools, clothes, machines, etc.) are normally not protected by copyright, although there are exceptions to this rule. PatentEng-Berkeley-Lavian22Week 2: Recognizing Intellectual Property

23. Copyright Software Software Copyright is an extension to copyright law Applies to machine readable software Restricts use : proprietary or open source “May” include: Program structure & design Graphics & sounds (audiovisual work)‏ “look and feel” of elements of interface Fair Use – copy & modify for your own use PatentEng-Berkeley-Lavian23Week 2: Recognizing Intellectual Property