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Patent Prosecution Luncheon
March 2014
White House Patent Reform: Executive Actions
• Draft rule to ensure patent owners accurately
record and regularly update ownership
information – limit shell company use
• Increase scrutiny on function claims –
glossary pilot program
• Online toolkit to help downstream users with
common litigation questions
• Expand outreach (Edison Scholars)
White House Patent Reform: Executive Actions
• Crowdsourcing prior art – including increased
use of 3rd party submission program
• Examiner training – Call for “innovators” to
volunteer
• Expanding Pro Bono program for inventors
Business and Ownership issues
• Sale of business – Owner may lose ability to
claim privilege regarding pre-sale
communications
– Great Hill Equity Partners v. Sig Growth Equity
Fund, LLP (C.A. No. 7906 (Nov. 15, 2013)
• Divorce – Spouse might retain rights in
invention, despite assignment by other spouse
– Be careful in “community property” states
– Hricik article, Enovsys LLC v. Nextel Com., Inc.,
614 F.3d 1333 (Fed. Cir. 2010).
De Novo Review of Claim Construction Upheld
• Lighting Ballast Control LLC v. Philips Electronics N.A.
Corp. (Fed. Cir. 2014) (En banc)
• No reason to change, majority (Newman)
opinion based on stare decisis:
– Newman: Promotes national uniformity, finality
• Concurrance by Lourie, additional reasoning:
– Claim construction does not involve assessing
historical facts
– Federal Circuit will not ignore district court
De Novo Review of Claim Construction Upheld
• O’Malley Dissent
– Agrees Judge should decide claim construction,
but says it involves questions of fact, so
deference should be shown
New Examination Guidelines Re Section 101
• Based on Myriad Decision
• Supersedes previous 2013 guidance re
natural products
• Does NOT impact previous guidance
regarding abstract ideas
Overall Process for Subject Matter Eligibility Under
35 U.S.C. 101
Factors that weigh toward eligibility
(significantly different):
• a) Claim is a product claim reciting something that initially appears to be a
natural product, but after analysis is determined to be non-naturally occurring
and markedly different in structure from naturally occurring products.
• b) Claim recites elements/steps in addition to the judicial exception(s) that
impose meaningful limits on claim scope, i.e., the elements/steps narrow the
scope of the claim so that others are not substantially foreclosed from using
the judicial exception(s).
• c) Claim recites elements/steps in addition to the judicial exception(s) that
relate to the judicial exception in a significant way, i.e., the elements/steps
are more than nominally, insignificantly, or tangentially related to the judicial
exception(s).
• d) Claim recites elements/steps in addition to the judicial exception(s) that do
more than describe the judicial exception(s) with general instructions to apply
or use the judicial exception(s).
• e) Claim recites elements/steps in addition to the judicial exception(s) that
include a particular machine or transformation of a particular article, where
the particular machine/transformation implements one or more judicial
exception(s) or integrates the judicial exception(s) into a particular practical
application. (See MPEP 2106(II)(B)(1) for an explanation of the machine or
transformation factors).
• f) Claim recites one or more elements/steps in addition to the judicial
exception(s) that add a feature that is more than well-understood, purely
conventional or routine in the relevant field.
Factors that weigh against eligibility
(not significantly different):
• g) Claim is a product claim reciting something that appears to be a
natural product that is not markedly different in structure from
naturally occurring products.
• h) Claim recites elements/steps in addition to the judicial
exception(s) at a high level of generality such that substantially all
practical applications of the judicial exception(s) are covered.
• i) Claim recites elements/steps in addition to the judicial
exception(s) that must be used/taken by others to apply the
judicial exception(s).
• j) Claim recites elements/steps in addition to the judicial
exception(s) that are well-understood, purely conventional or
routine in the relevant field.
• k) Claim recites elements/steps in addition to the judicial
exception(s) that are insignificant extra-solution activity, e.g., are
merely appended to the judicial exception(s).
• l) Claim recites elements/steps in addition to the judicial
exception(s) that amount to nothing more than a mere field of use.

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March 2014 Prosecution Luncheon

  • 2. White House Patent Reform: Executive Actions • Draft rule to ensure patent owners accurately record and regularly update ownership information – limit shell company use • Increase scrutiny on function claims – glossary pilot program • Online toolkit to help downstream users with common litigation questions • Expand outreach (Edison Scholars)
  • 3. White House Patent Reform: Executive Actions • Crowdsourcing prior art – including increased use of 3rd party submission program • Examiner training – Call for “innovators” to volunteer • Expanding Pro Bono program for inventors
  • 4. Business and Ownership issues • Sale of business – Owner may lose ability to claim privilege regarding pre-sale communications – Great Hill Equity Partners v. Sig Growth Equity Fund, LLP (C.A. No. 7906 (Nov. 15, 2013) • Divorce – Spouse might retain rights in invention, despite assignment by other spouse – Be careful in “community property” states – Hricik article, Enovsys LLC v. Nextel Com., Inc., 614 F.3d 1333 (Fed. Cir. 2010).
  • 5. De Novo Review of Claim Construction Upheld • Lighting Ballast Control LLC v. Philips Electronics N.A. Corp. (Fed. Cir. 2014) (En banc) • No reason to change, majority (Newman) opinion based on stare decisis: – Newman: Promotes national uniformity, finality • Concurrance by Lourie, additional reasoning: – Claim construction does not involve assessing historical facts – Federal Circuit will not ignore district court
  • 6. De Novo Review of Claim Construction Upheld • O’Malley Dissent – Agrees Judge should decide claim construction, but says it involves questions of fact, so deference should be shown
  • 7. New Examination Guidelines Re Section 101 • Based on Myriad Decision • Supersedes previous 2013 guidance re natural products • Does NOT impact previous guidance regarding abstract ideas
  • 8. Overall Process for Subject Matter Eligibility Under 35 U.S.C. 101
  • 9. Factors that weigh toward eligibility (significantly different): • a) Claim is a product claim reciting something that initially appears to be a natural product, but after analysis is determined to be non-naturally occurring and markedly different in structure from naturally occurring products. • b) Claim recites elements/steps in addition to the judicial exception(s) that impose meaningful limits on claim scope, i.e., the elements/steps narrow the scope of the claim so that others are not substantially foreclosed from using the judicial exception(s). • c) Claim recites elements/steps in addition to the judicial exception(s) that relate to the judicial exception in a significant way, i.e., the elements/steps are more than nominally, insignificantly, or tangentially related to the judicial exception(s). • d) Claim recites elements/steps in addition to the judicial exception(s) that do more than describe the judicial exception(s) with general instructions to apply or use the judicial exception(s). • e) Claim recites elements/steps in addition to the judicial exception(s) that include a particular machine or transformation of a particular article, where the particular machine/transformation implements one or more judicial exception(s) or integrates the judicial exception(s) into a particular practical application. (See MPEP 2106(II)(B)(1) for an explanation of the machine or transformation factors). • f) Claim recites one or more elements/steps in addition to the judicial exception(s) that add a feature that is more than well-understood, purely conventional or routine in the relevant field.
  • 10. Factors that weigh against eligibility (not significantly different): • g) Claim is a product claim reciting something that appears to be a natural product that is not markedly different in structure from naturally occurring products. • h) Claim recites elements/steps in addition to the judicial exception(s) at a high level of generality such that substantially all practical applications of the judicial exception(s) are covered. • i) Claim recites elements/steps in addition to the judicial exception(s) that must be used/taken by others to apply the judicial exception(s). • j) Claim recites elements/steps in addition to the judicial exception(s) that are well-understood, purely conventional or routine in the relevant field. • k) Claim recites elements/steps in addition to the judicial exception(s) that are insignificant extra-solution activity, e.g., are merely appended to the judicial exception(s). • l) Claim recites elements/steps in addition to the judicial exception(s) that amount to nothing more than a mere field of use.