The Rush to Meet the March 16th Patent Deadline

March 28th, 2013

USPTO Seal According to a chart released by the U.S. PTO, about 26,500 provisional and non-provisional patent applications were filed on March 15, up from the about 2,500 applications that are filed on a typical day.  The reason: inventors and their patent lawyers (including us) were racing to beat the March 16 deadline.

As we have said before in these newsletters, U.S. patent law changed on March 16.  Now, after March 16, patent rights are terminated and lost forever if (a) no patent application has been filed, and (b) there has been a sale or offer for sale of the invention, a public use of the invention, description of the invention in a printed publication, or the invention is ‘otherwise available to the public.’  If you have an invention and intend to take any of these actions, please contact us first so that you do not inadvertently lose your U.S. patent rights.

– Robert Yarbrough, Esq.

Terms of Service Didn’t Read

February 28th, 2013

Terms of Service If you thought reading privacy policies was a was a waste of time you were right. The Carnegie Mellon Institute calculated that it would take 10 minutes to read the privacy policies of the 75 most popular websites at the standard reading rate of 250 words per minute. The medium length of privacy policies from top websites was calculated to be 2514 words.  If you can do the math, it takes about 10 minutes to read each privacy policy. The Carnegie Mellon Institute estimated, based upon several sources, that the average American visits between 1354 and 1518 websites per year.  Assuming that you are an average Internet user, if you were to read every privacy policy on each website you visit, you would spend 25 days out of the year just reading privacy policies.  Carnegie Mellon “put a dollar amount on this massive time suck” and came up with an astonishing hypothetical cost of $781 billion per year!  According to the Atlantic, that’s more than the GDP of Florida.

It’s no wonder, that nobody reads web site privacy policies or terms of service. In fact, it’s a standard joke. Of course, because nobody reads them doesn’t mean that they aren’t important.  When you agree to a web site’s privacy policy you can be handing the web site owner your credit cards, personal information and other matters that you don’t wish to share with the public.  It’s really imperative that you insure that the web site owner protects your information. To make it easier to understand what rights you are giving up by visiting popular websites a new online project called Terms of Service Didn’t Read tries to make the process simpler. The project provides easy-to-read summaries of the privacy policies and terms of service of most popular websites. Although not all sites are rated yet, a quick visit provides some interesting observations:

Facebook

Thumbs Down: Very broad copyright license on your content.

Thumbs Up: You can give your feedback before changes: Facebook will solicit your feedback during the 3 or 7 days minimum preceding changes to their terms. However, the results are not binding unless 30% of the active users voted.

Wikipedia

All Thumbs Up – very good user policies.

Yahoo

Thumbs Down: Terms may be changed any time at their discretion, without notice to the user.

Dropbox

All Thumbs Up: Transparency on law enforcement requests and  Promise to inform about data requests.

Microsoft

Big X: Lawsuit and class action waiver. Arbitration for dispute resolution in the United States: a binding arbitration clause and class action waiver that affects how disputes with Microsoft will be resolved in the United States. This clause governs many of Microsoft’s online services – including your Microsoft account and many of their online products and services for consumers, such as Hotmail, SkyDrive, Bing, MSN, Office.com, Windows Live Messenger, Windows Photo Gallery, Windows Movie Maker, Windows Mail Desktop, and Windows Writer.

Evernote

Big X:  You cannot delete your account.

Terms of Service Didn’t Read should be required reading for anybody that uses the Internet.

–Adam G. Garson, Esq.

Ask Dr. Copyright…

February 28th, 2013

  copyright question Dear Doc:

I hear that soon, many Internet users will start getting warning notices if they illegally share copyrighted materials. Is this true? What happens if I get, say, 6 of these? How do they know?

Signed,

MovieAddict

Dear Addict:

The “Doc” has been watching this gathering storm for some time now.  The “Copyright Alert System” is not a loud tone played on the radio – it’s a big brother kind of system that involves AT&T, Verizon, Time Warner, Comcast and Cablevision – the “Big 5″ Internet service providers (ISPs). They have been working with the RIAA and MPAA (which collectively help to police music and movie rights) and have worried, since Napster was a little itty bitty nuisance, that their content was getting ripped off on the Internet.

As they have explained what they intend to do, it amounts to watching all of the files that are being shared on the Net, and automatically sending nasty notes to anyone sharing what they believe is copyright-protected content.  As they have said, “Initial alerts are merely educational, letting the user know that unauthorized content sharing was detected on their Internet account.”

There are two additional “alert levels” for repeat sharers: an “acknowledgement” that requires the recipient to fill out a form, and a “mitigation” which means that the user’s connection speed may be reduced unless he watches an informative video about piracy. A notice may be appealed if a user feels that it was sent in error, but filing that appeal costs $35.

You can find out a lot about how this all works by going by clicking here.

Of course, it’s not right to infringe copyrights, and owners of content have every right to protect their property.  It remains to be seen whether their big brother programs are accurate, or also sweep in unrelated files with similar names (maybe I just want to call my home video of my Carnival Cruise “Titanic”), fair uses such as student projects, and the like. Time will tell, but it will cost $35.

–Lawrence A. Husick, Esq.

PAY ATTENTION: Crucial Deadline for Inventors Is Looming!!

February 28th, 2013

USPTO Seal We’ve said it before, but there is an absolutely crucial patent deadline coming up on March 17, 2013 due to a change in U.S. patent law.  Contact us immediately to avoid complete and permanent loss of your patent rights if (a) you have an invention for which you have not yet filed a patent application, and (b), you performed any of the following actions within the last year:

1. You used the invention in public.  That means that you used the invention where someone who does not owe you a duty of secrecy could see you use it.

2. You sold or offered to sell the invention to anyone.

3. The invention was ‘otherwise available’ to the public.

Do any of these situations apply to you?  Contact us immediately.  There still is time to protect your invention before March 17.

Even if the above situations do not apply to you, how do you protect your inventions on or after March 17, 2013?  To avoid instant and complete loss of your patent rights, do not disclose your invention or use your invention where it can be seen by anyone unless that person has signed a non-disclosure agreement or otherwise owes you a duty of secrecy.  Also, do not sell or offer your invention for sale unless you have first filed a patent application.

These laws are new, so no one knows exactly how they will be interpreted; however, there are common situations that we can anticipate now to avoid tragedy later.

Employees: If you have employees, do you have employment agreements with those employees?  Do those employment agreements specify that the employee has the duty to keep company information secret, including information relating to inventions by the employee or by other employees?

Contractors:  Do you utilize private contractors, such as engineers, designers, plumbers and the cleaning crew?  Do your contracts specify that the contractor and employees of the contractor have the duty to keep company inventions secret?

Visitors:  Do visitors come to your facility?  If a visitor, say, walks into a room at your plant where a new invention is in operation, operation of the invention could be considered use of the invention in public or could be considered making the invention ‘otherwise available’ to the public, instantly terminating your patent rights.   You can avoid this result by having visitors sign non-disclosure agreements for the privilege of entering your building.  As a less-intrusive option, incorporate a non-disclosure paragraph into a sign-in sheet and require that all visitors and contractors sign the sheet.

Customers:  As noted, do not sell or offer your invention for sale until the patent application is filed.  A sale or offer of sale will immediately terminate patent rights even if the customer signed an agreement to keep the invention secret.

The patent world changes on March 17, 2013.  Please protect yourself so that you do not lose your patent rights.

– Robert Yarbrough, Esq.

The Berne Convention: Mother of All Copyright Treaties

February 28th, 2013

copyright You may have never heard of the Berne Convention but it’s a very import international treaty governing copyrights.  Here’s a brief overview.  The Berne Convention was first adopted in Berne, Switzerland in 1886 and requires its signatory countries to safeguard the copyrights of a work created in other signatory countries as it would protect those of its own country.

This means that if a work is protected by copyright in one Berne Convention nation it is automatically protected in all other Berne Convention nations. Currently, there are 165 countries that are party to the Convention including the United States, which joined on March 1, 1989. Initially, the United States declined to become a party as it would have required drastic changes in its copyright law particularly with regards to moral rights, removal of the general requirement of registration of copyrighted works and elimination of the mandatory copyright notice.

Article 2 of the Convention, which governs the type of work protected, applies to “every production in the literary, scientific and artistic domain, whatever may be the mode or form of its expression.” The Berne Convention primarily authorizes two groups of protective rights for copyright works: economic rights and moral rights rooted in the copyright work itself.

Under the Berne Convention, all works are protected for at least 50 years after the author’s death with the following exception: (1) for photography, the minimum term is 25 years from the year the photograph was created; and (2) For cinematography, the minimum term is 50 years after first showing, or, if the work has never been shown, 50 years from the creation date.

The Berne Convention may be thought of as the mother of copyright treaties. Articles from the Berne Convention have been incorporated in several other international copyright treaties. For example, Article 9(2) of the Berne Convention, which addresses the exclusive rights of reproduction has been directly implemented and extended into the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), the WIPO Copyright Treaty, the EU Copyright Directive and the WIPO Performances and Phonograms Treaty. TRIPS Article 30, covering limitations and exemptions to patent law, is also derived from the Berne Convention.

If you would like to learn more about the convention, a good place to start is Wikipedia.

– Ash Tankha

But I Already Paid for That!

January 31st, 2013

We are anonymousThe United States Federal Government does a lot with tax dollars. One of those things is that it funds research in many areas that lead to published papers in basic science, medicine, engineering, and many more fields. Another is that it runs the Federal Court system, which publishes orders, rules, opinions, and the like. What do all of these publications have in common?  It’s that even though your tax dollars paid to create them in the first place, you will almost certainly have to pay again if you want to read them. You may pay a journal publisher thousands of dollars per year for a subscription, or pay $20-$45 for a copy of a single article.  You may pay 10¢ per page to PACER, the online court system operated by the government, but you’ll pay.

Some argue that if tax dollars are used to create a document, then taxpayers should not have to pay to read it.  Certainly, this was the argument of young Aaron Swartz, when he downloaded a significant slice of the PACER database and put it online for free. He also argued that the JSTOR database of articles was largely the result of publicly funded work, and should be freely available. JSTOR, a nonprofit organization, is a database of scholarly publications, including thousands journals that cost thousands of dollars each per year in subscription fees – and that publish taxpayer-funded research.

According to the famous “hacker ethic”, information wants to be free.  This ideal, often in conflict with the proprietary rights regimes of patent and copyright, sets in motion a conflict that, in the case of Mr. Swartz, led to his prosecution and the threat of crushing legal fees, heavy fines, and a potential prison sentence far longer than if he had killed someone while driving under the influence of alcohol. In the face of these penalties, Mr. Swartz, age 26, took his own life.

The hacktivist group “Anonymous” has expressed its collective disgust with this situation using its recognizable Guy Fawkes masked persona, by inserting a message onto the website of the Federal Sentencing Commission. Their message, hacked into the website stated, in part,

There must be reform of outdated and poorly-envisioned legislation, written to be so broadly applied as to make a felony crime out of violation of terms of service, creating in effect vast swathes of crimes, and allowing for selective punishment. There must be reform of mandatory minimum sentencing. There must be a return to proportionality of punishment with respect to actual harm caused, and consideration of motive and mens rea. The inalienable right to a presumption of innocence and the recourse to trial and possibility of exoneration must be returned to its sacred status, and not gambled away by pre-trial bargaining in the face of overwhelming sentences, unaffordable justice and disfavorable odds. Laws must be upheld unselectively, and not used as a weapon of government to make examples of those it deems threatening to its power.

This crie de coeur goes beyond making information free, and the delivery method, hacking a website, is, itself, criminal, but the message rings true to those who remember the social activism of the 1960s and who lived through the Pentagon Papers, Watergate and Iran Contra. Even some intellectual property attorneys (but not many) have come to recognize that our present laws punish what used to be considered artistic creativity, and thus impoverish our culture and our civil discourse.

Perhaps the young Congressional staffer who suggested that we rebalance the interests of publishers and the public they used to serve was on the right track after all – just before he was fired for suggesting that copyrights ought to be a bit shorter than a century!

Lawrence A. Husick Esq.

PTO Patent Fees for the ‘Micro Entity’

January 31st, 2013

microscope

As an individual or small business inventor, do you feel really, really small?  The good news: after March 16, 2013 you may qualify as a ‘micro entity’ and be entitled to patent fee discounts from the PTO of 75% off large entity rates.  The bad news: large and small entity rates are going up at the PTO.

An application is subject to reduced ‘micro entity‘ fees if all of the inventors or inventions owners can certify to the following:

1. The applicant or inventor is a ‘small entity;’ that is, the applicant generally has fewer than 500 employees.

2. The applicant or inventor is named as an inventor on no more than four prior utility patent applications, not counting provisional applications, applications in foreign countries, or applications assigned to a previous employer.

3. Neither the applicant nor a person to whom the applicant had a duty to assign the invention had a gross income of not more than three times the median household income for the year prior to the filing date and the applicant is not obligated to assign the invention to a person with an income greater than that amount.  The PTO cites 2011 U.S. Census Bureau statistics for a median household income of $50,054.00. The maximum gross income of the ‘micro entity’ applicant therefore cannot exceed $150,162.00.  The gross income ceiling effectively limits  micro entity status to individual inventors.

A false micro entity certification is fraud on the patent office and will invalidate any resulting patent and likely lead to sanctions against any patent attorneys or agents involved.  An honest mistake can be rectified upon submission of appropriate certifications and payment of the fees owed.

Colleges and universities automatically qualify as ‘micro entities’ without meeting the above criteria.  An employee of a college or university also qualifies without meeting the above qualifications.

Qualifying as a ‘micro entity’ will be valuable.   After March 16, 2013.  The filing fees to file a new utility patent application with the PTO for a large entity will be $1,600.00.  A ‘small entity’ (fewer than 500 employees) will pay $800.00.  A ‘micro entity’ will pay $400.00. The PTO estimates that 31% of applications will be filed by ‘micro entities.’

–Robert Yarbrough, Esq.

Check Those Employee Handbooks!

January 31st, 2013

nlrb

There have been a spate of reporting about the National Labor Relations Board’s (NLRB) recent decisions about the use of social media by employees.  You may think that an employer should have absolute control over its employees’ right to talk about the employer or its customers on the Internet, but that is not the case.  In fact, if an employee’s online speech can be even broadly interpreted to be protected under Sections 7 and 8 of the National Labor Relations Act (NLRA),  such speech is permissible.  Sections 7 and 8 of the NLRA protect a worker’s “right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection….”

The New York Times recently reported the trend in NLRB decisions under the headline, “Even if It Enrages Your Boss, Social Net Speech is Protected.”  Similarly, the PBS network just aired a report on NLRB decisions entitled “Can Facebook Posts Get You Fired?”  The message presented by these reports is clear: employers must give careful consideration before firing an employee for what he or she says on the Internet.  We strongly recommend that employers review these reports and also consider the implications of the rulings for employee handbooks.

A recent decision this month involving DirectTV provides an object lesson.  In that case, DirectTV’s employee handbook contained several rules that the NLRB found objectionable because they imposed blanket prohibitions against employees from contacting the media and law enforcement about the employer or its employees.  The “Confidentiality” section of the handbook broadly prohibited employees from contacting the media about the company, its business and customers or from talking with law enforcement without pre-authorization and to “never discuss details about your job, company business or work projects with anyone outside the company” and to “never give out information about customers or DirectTV employees.” The rule provided detailed instructions about where employees should not discuss DirectTV business, including “public venues, such as seminars and conferences, or via online posting or information data sharing forums, such as mailing lists, websites, blogs, and chat rooms.”

According to the NLRB, such prohibitions could reasonably be understood by employees to restrict discussion of their wages and other terms and conditions of employment. That the handbook’s rules suggested that the confidentiality prohibitions applied to discussions about customers, company business and other items did not save the rules from the Board’s “condemnation.” The Board held that the confidentiality rule violated section 8 (a)(1) of the NLRA. What’s the lesson?  Avoid the cost of litigation, review your employee handbooks now.

–Adam G. Garson, Esq.

Privacy in the Age of Apps

December 31st, 2012

Anonymous

If you use or develop online software or smartphone “apps” then you need to know about CalOPPA.  No, that’s not some form of steam-driven musical device from an old-time carousel. It’s the California Online Privacy Protection Act, and it has very real consequences for any company that does business online. This month, the State of California sued Delta Airlines for failure to comply with CalOPPA, and the suit seeks $2.500 for EACH TIME the Fly Delta mobile app was downloaded!

To comply with CalOPPA, you need to figure out if your online system or app collects any personally identifiable information (“PII”) such as a name, email address, physical address, telephone number, IP address, current location, or sensitive information such as a social security number.  Next, you have to know the target age range for your web page or app. If it’s under 13, you need to talk to an attorney ASAP. There are special rules that apply.

Next you need a list of every party that will have access to the PII that you collect.  You then need to specify how the user can control that PII.  Can they view what you’ve collected, edit it, and delete it from your database? You then need a written policy that you will display to anyone from whom you collect PII that explains what you collect, how you intend to use it, with whom you may share it, and what the user can do to view, change or delete his own PII in your systems. You may want to review the sample policies available from the Center for Democracy and Technology, which has a very complete template, and then have your attorney review your policy after you’re done drafting it.  Finally, you may wish to get certified by a third party like TrustE so that you tell your users that you’re trustworthy with their PII.

Compliance with privacy regulations also varies in other countries, but these basic steps are the minimum necessary for any developer. If you need a hand, the attorneys at Lipton, Weinberger & Husick can help to draft these kinds of policies, and others. Give them a call.

–Lawrence A. Husick, Esq.

Notice or Not: ©

December 31st, 2012

copyrightIn late November, David Pogue of the New York Times wrote about a hoaxer who plastered Facebook sites with an unsolicited message that stated:

In response to the new Facebook guidelines, I hereby declare that my copyright is attached to all of my personal details, illustrations, comics, paintings, crafts, professional photos and videos, etc. (as a result of the Berner [sic] Convention).

For commercial use of the above my written consent is needed at all times.

Facebook is now an open capital entity. All members are recommended to publish a notice like this, or if you prefer, you may copy and paste this version.

Pogue was correct in referring to the posting as a “hoax”, noting that the warning or notice makes no difference to the legal status of your illustrations, comics, paintings, crafts, professional photos and videos. But why was he correct?

Under the Berne Convention, an international copyright treaty, authors and creators are not required to post a copyright notice or warning as a prerequisite to enforcing their copyrights. Before adoption of the Berne Convention in 1988, if a copyright owner in the United States failed to place a copyright notice — the ubiquitous © — the owner would lose all his rights in the work should there be an infringement. Click this link to review the official word of the U.S. Copyright Office on this subject. Adoption of the Berne convention brought the United States into sync with the rest of world’s copyright practice.  So, in summary, Copyright is a “self-executing” right that arises as soon as a work is “fixed in a tangible medium.” The rights created by copyright law are no longer predicated upon the author’s posting or marking his work with a copyright notice.

Nonetheless, lawyers sill advise their clients to apply a notice. That’s because it still serves a purpose. In the United States, a copyright owner has the right to obtain “statutory damages” for infringement. These are damages that are set forth in the U.S. Copyright Statute and which are set at different amounts for intentional and unintentional (“innocent”) infringement. If you apply a copyright notice to your work, an infringer cannot claim “innocent infringement.”  That’s because the infringer was on notice that you were the copyright owner. In an infringement action this could mean the difference between receiving as much as $100,000 dollars per intentional infringement versus $200 dollars per innocent infringement.

So, like David Pogue said, you don’t need a fancy notice to enforce your rights (“registration” helps but that’s a subject for another newsletter article). However, using the © symbol along with the date and your name serves a purpose.

© 2012 Lipton Weinberger & Husick

–Adam G. Garson, Esq.