Independent Clarification on Patent Laws
OK. So I am on so-called holiday but I managed to make a few vital phone calls while watching Wall-e at Vue in Harrow this morning.
It is relating to the USPTO. I didn’t get hold of NeoMedia (time difference) but I did get hold of a Lawyer who understands the barcode law.
So – I can’t name him but what he said was:
Patent rejection is normal. It is common to reject patents –but that does not mean that the IP of the company just vanishes. In many cases they are changed or adapted to meet requirements or to make them fairer.
He refused to comment on NeoMedia specifically but said that in the past a fair resolution is created.
What we think?
I am not an expert but it sounds more likely to work around a patent then to simply reject it – I have 2 patents and they weren’t cheap. So that money has to be for something – no?
More digging to come this week.
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12 Responses to “Independent Clarification on Patent Laws”
Good job Bena. When the facts come out this is a normal course of business. IMHO
Comment made on July 21st, 2008 at 4:11 pmWhat am I missing in this clarification? It seems to suggest the same thing some of us have been stating from day one.
As for rejections being normal, thats a matter of ones opinion, but the re-exam statistics published tend to differ. There are some re-exams where the patent survives in its entirety. There are others where there are rejections, and the patent holder modifies their claims, by making them narrower, or less broad, and then there are some that get rejected in their entirety.
At this point in time, in the case of Neom, as has been stated, they can address the 95 rejections, and modify the claims, as your attorney has suggested, and as we have stated from the beginning. The USPTO may then see the idea as patentable under the modified claims, and rule as such. Or their explanations or modifications may not suit the USPTO, and the rejections stand.
The odds that the USPTO will allow all 95 claims to stand at this point, as they are written is slim to nil.
So the question then becomes, what modifications were necessary, and then how strong does the patent remain in this space, after such modifications.
So really there has been no clarification from whats been said here that I can see, because it all depends on what claims Neomedia now submits to the USPTO, to get them to over ride their rejections. Then what impact that has on the market if they have to significantly narrow those claims.
This is all standard practice with the re-exam process, and no one will know the outcome, until Neomedia submits their response in the next 60 days, and the USPTO reviews that response and makes a new ruling. This process can go on for a very long time, with Neomedia responding to each new ruling and then the USPTO reviewing that response, until there is a final action ordered.
As for attorneys opinions, have you ever noticed, there is always two different views in every case, one on each side of the issue?
By the way, I have never heard a patent owner has to change their patent to make it fairer. Fairer to who? The US does not have a standard that requires a patent to be fair. Just the opposite. A patent is supposed to give the inventor exclusive rights to their invention, for a 20 year period, so they can profit off it exclusively during that time period to cover their expenses they incur in inventing the idea or object.
They do require that some patents claims be made narrower, because the broadness of the claim, covers areas already patented by others. Thats not to be fair, but so this patent does not impede the rights of the original prior art this patent is duplicating.
Comment made on July 21st, 2008 at 4:57 pmBena,
Here is a good comparison to NeoMedia’s current patent reexamination.
PTO Issues Initial Office Action on Tessera Patent
http://www.tessera.com/news/press_releases/?releaseId=1115224
March 4, 2008 — Tessera Technologies, Inc., a leading provider of miniaturization technologies for the electronics industry, today announced that the U.S. Patent and Trademark Office (PTO) has issued an initial office action regarding Tessera’s 6,133,627 patent (”627″) in ex parte reexamination. This initial action is non-final and will be subject to a lengthy review process, including the possibility of appeal. This issued patent is presumed to be valid, intact and enforceable during the reexamination process, which on average takes 24 months to complete, not including appeals.
“An initial, non-final office action in an ex parte reexamination is not a final decision and should not be characterized as such,” said Bruce McWilliams, chairman, president and chief executive officer, Tessera. “We are one year into the process and just received the first office action on the ‘627 patent. We believe in the strength and validity of our battle-tested patents and will continue to vigorously defend them.”
It is not unusual for the PTO to preliminarily reject claims during the reexamination process. Tessera has the right to argue, and will continue to argue, the merits of its position.
Comment made on July 21st, 2008 at 11:15 pmTessera Addresses Mischaracterizations of Patent Validity and Legal Process
http://www.tessera.com/news/press_releases/?releaseId=1115927
“Nothing issued by the U.S. Patent and Trademark Office (PTO) in these reexaminations has overturned our patents. We believe the market may have misunderstood the PTO’s terminology, and we are taking this opportunity to clarify the process,” said Scot Griffin, senior vice president and general counsel, Tessera. “Claims of a patent can not be invalidated in reexamination until the process is fully complete, including all appeals.”
The PTO recently issued office actions regarding claims in five Tessera patents, and the company anticipates an initial office action for a sixth patent sometime in the coming weeks. These office actions are a usual step in the PTO reexamination process and are in no way a final determination on the validity of the patents. Even after a final determination in the PTO, Tessera would have ongoing opportunities to appeal any decision; the patents would remain in force throughout all appeals. Tessera is very familiar with the prior art to the patents under reexamination because of its previous lawsuits, which were uniformly resolved in Tessera’s favor.
Comment made on July 21st, 2008 at 11:20 pmHow did I know you would post those talking points here to again mislead others.
If you read the PR’s which the company issued, unlike Neomedia, you will find that the USPTO in fact left many of the claims in their patents intact. Thus the patent is still enforceable because the USPTO after re-exam validated certain of the claims, while rejecting SOME of the claims.
Thats a far different situation then Neomedia is in when ALL of the claims have been rejected. There are no valid claims at this time that the USPTO has validated, that Neomedia could enforce against infringer’s like was the case in the other patent issue.
And this also just goes to validate what I said earlier in response to that legal opinion from the attorney. Not all cases get all claims rejected, so all claims rejected is not a routine process. The USPTO will only reject the claims of a patent that they feel are covered under prior art.
This case illustrates that in that they rejected some and let others stand. In Neomedias case they feel the entire patent is covered by prior art and thus their initial action rejecting all claims.
You like to talk about apples and oranges, the differences in these two cases is just that apples and oranges. One the patent is still valid in respect to some of its claims, and therefore enforceable, while the process continues on the other claims rejected. The other the entire 95 claims have been rejected.
Comment made on July 21st, 2008 at 11:59 pmThe claims of a patent undergoing reexamination are
not invalidated until a reexamination certificate canceling the claims is issued.
In NeoMedia’s case, that hasn’t happened yet.
Comment made on July 22nd, 2008 at 12:12 amBena:
I have seen your underlying bias for Neomedia in the past (it may have something to do with them being a sponsor of gomonews, but that is besidues the point), but this latest post reeks.
You have nothing to add to the story. There is not “independent clarification” other than Neomedia is now fighting un uphill battle to either keep its patent, will have to narrow its patent,or will lose its patent. Until the final reximaination certificate is issued, we really dont know much, other than the burden now rests with Neomedia.
Comment made on July 22nd, 2008 at 7:10 amElin are you new to GoMo? Have you seen the articles I have written on Scanbuy re: Telefonica and pictures of Times Square? Or my interview with Jonathan Bulkeley?
If you feel that I am not indepentent then please just read something else. This is the second time this week I have been accused of this and its getting boring.
I fear you might even be the other person in disguise - as it seems as though only women have an issue with me.
Anyone that knows me knows that I am even harder to companies that I like as I want them to succeed.
With this - I have no idea of barcode laws and Dean wrote some strong comments that I had no idea about and I wanted to check them.
Believe me anyone can sponsor GoMo News - but this is my passion it is not my main source of income - but anything that comes in pays other bloggers to write for me.
I do this because I simply love it.
Comment made on July 22nd, 2008 at 8:32 amBena,
This whole debate has been ongoing because one of your posters claimed others were misleading the public, by not publishing all the facts, and therefore suggesting Neomedias patent has been canceled.
The fact is he is using the process as his basis for such a claim, because there has been no final action by the USPTO YET.
Regardless of whether there is a final action yet or not, the facts are not disputable, in that at this time the entire 95 claims of the patent are rejected by the USPTO on an official government document some 78 pages long.
This poster claimed the EFF and another blog mislead the public, because they did not explain that this was not a final action, and they should in his opinion be reporting the entire process to educate the public.
He was wrong on that account as well. The EFF on their official web blog, didn’t not publish any opinion. They published a link to the rejection document in its entirety for any one to read and draw their own conclusions.
Then on their associated web blog they published a post, which in fact did have an entire paragraph of what Neomedia’s options going forward are. Here is the paragraph in its entirety, outlining the very same basic opinions you got from your outside legal source. The same opinions I and others have expressed right here on this same blog. Their facts on their official website were 100 percent accurate, and their opinions on their web blog were also 100 percent accurate, non misleading and informative, contrary to the poster heres assessment.
http://www.eff.org/deeplinks/2008/07/u-s-patent-office-rejects-all-ninety-five-neomedia
“”"”"Now that the PTO has agreed with us that the patent claims weren’t novel, NeoMedia is in the difficult position of trying to explain what was so inventive about its ideas, in light of the prior art that EFF highlighted. Alternatively, NeoMedia can try to amend its claims to narrow them, and argue that the narrower claims were non-obvious, even if the original claims weren’t.”"”"
Comment made on July 22nd, 2008 at 4:11 pmIis not a question of you being independent. I just felt you were writing an article entirely based on assumptions, to cast the situation Neomedia is in in a favorable light, when we really do not know which way the pendulum will swing at this point.
But statements like:
Patent rejection is normal. It is common to reject patents –but that does not mean that the IP of the company just vanishes. In many cases they are changed or adapted to meet requirements or to make them fairer.”
and
“I am not an expert but it sounds more likely to work around a patent then to simply reject it – I have 2 patents and they weren’t cheap. So that money has to be for something – no?”
Don’t really add much. First of all, there is no such thing as fair resolution as others have pointed out. What will happen is Neomedia will have to narrow its patent down to something that is patentable. The problem is what they may be left with may be so narrow, that while it protects their process, it will not stop others from playing in the barcode process using their own methodology. And we all know that until now (that is until its patents were being reviewed) Neomedia’s only source of revenue, or potential was in suing other companies for infringement. Now that they see the writing on the wall, they made announcements that the patents wont be the focus of their business. So if that is the case, move on. They cant have it both ways. Either the patents are important, or they are not.
Also, what is you point, that the money has to be spent for something? This is just a false statement.
Comment made on July 22nd, 2008 at 7:57 pmI think that is because I am on official holiday this week but wanted to show that I cared and did what I could to get an independent view from a Lawyer.
I found out the name of the head of patents at NeoMedia and will phone him next week. I will also ask Kayawa, Abaxia and Scanbuy for their view.
But on Monday I was shopping in town and at the cinema with my two children and mother - when my phone starting pinging me comments on this and I wanted to react. I am no patent guru!
Comment made on July 23rd, 2008 at 7:42 amThanks for clearing the muddied air.
This was my impression also.
P.S. Keep on doing what you are doing. I am all for fair. But, I also have my opinions, so will others.
Comment made on July 25th, 2008 at 3:13 amLeave a Comment