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Sagacious Research is an ISO Certified India based Global Patent Research & Analytics firm offering cost effective & multi-lingual Patent Searching, Patent Licensing, Patent Alerts & Watches, Patent Drafting, Trademark Searching & Design Searching Services in over 100 countries and in over 16 Asian/European languages. An ISO 9001:2008 and ISO 27001:2005 Certified Company 70+ Techno-legal Experts | 16+ Languages | 100 Countries | 5, 000+ Projects | 99% Client

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Page 1: Sagacious Research Newsletter-16 Dec-2013

© 2007 - 2013 Sagacious Research. All Rights Reserved.

www.sagaciousresearch.com

S A G A C I O U S U P D A T E S

Sagacious Research

Announces Pre-launch of

Its New Blog

Sagacious Research Blog

will now be much more

interactive and engaging

as the company

management announces

launch of a new blogging

platform. The Sagacious

team will keep the blog

updated with latest and

most relevant IP news,

expert articles, case

studies and whitepapers

bearing in mind the

interest of whole of the IP

fraternity.

Seven of those are agriculture-

based GIs while the rest are of

handlooms and handicrafts.

Note that GIs are nothing but

a sign that is used on a variety of goods/products (whether natural, agricultural or

manufactured) that indicates the qualities, reputation or characteristics that are

essentially attributable to their place of origin.

Benefit from GIs?

Since 2003, the Intellectual Property Office received 463 GI applications, of which

195 have been registered. Unfortunately only a handful could enjoy commercial

success. There has been problem in creating economic value for Indian GIs largely

because people are not aware of how to derive commercial benefit from the GI tag.

Then, unlike trademarks, all producers who make their products in the place

designated by a geographical indication and whose products share specified qualities

enjoy rights over it. Moreover, there have been many instances of 3rd parties

registering domains for certain renowned GIs with the intention of extracting money

by selling these domain names to the rights holders.

All in all, there are several problems which crop up in case of a GI just like with

trademarks. Thus, it is advisable that prior to planning entry in the market, GI tag right

holders register their GIs as domain names [top level domain names (tLDs) including country coded top level domain names (ccLDs)].

Also, they should be ready to deal with problems of market penetration, the economics of launching products, the multiplicity of labels and

Benefits of Official Registration of GIs

All the producers of a product with a GI tag enjoy exclusive commercial rights to

their geographical indications.

In India, Karnataka Tops with 32 GIs

Karnataka has notched the top slot among all Indian states with 32 GIs (Geographical

Indications) according to the Trade Marks & GI Registry attached to the

Intellectual Property Office of India.

Vol- 12, Date: 16th December, 2013

G E N E R A L N E W S

Follow Us at:

Page 2: Sagacious Research Newsletter-16 Dec-2013

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mixed notions of quality, and the threatening presence of substitutes and similar products. For that reason, adopting traditional marketing

strategies to enhance the distinctiveness and attractiveness of their products is a tested measure. Thus, if right holders issue press releases,

publish cautionary notices and advertise the geographical indication, it largely ensures protection of their geographical indication from any

kind of third party violation.

Moreover, before applying for a GI with patent office, hiring a

professional partner who is capable of conducting clearance

search of the Register of Geographical Indications and common

law searches (including the internet, market surveys, yellow

pages, directories, etc.) is recommended. This is to ascertain

whether any third party is not already using your geographical

indication and if so, to what extent. Also, it is recommended to

seek an alerts/watching search services to alert you

regarding publishing of a deceptively similar GI (mark) that

might be of concern to you.

Conclusion: All the producers of a product with a GI tag enjoy exclusive

commercial rights to their geographical indications. Yet, if someone else

violates their rights, it is possible to initiate an infringement action. To

avert such a situation, registration of geographical indication is highly

recommended. The certificate of registration is the prima facie evidence of

its validity and no further proof of the same is required.

Copyright “Best Alternative to Patents” for Software Programs

Discover all the advantages of “Copyrighting” over” Patenting” for a Software

Until recently, copyright was not regarded as being of much relevance to the

software developers/inventors but things have changed drastically. Copyrighting

has become an extremely important weapon in preventing piracy of computer

software and preventing copying of various useful items to which “art” has been

applied. In this article, we will shed some light on using Copyright as a legal option

or an alternative to patents, for software programs.

Page 3: Sagacious Research Newsletter-16 Dec-2013

© 2007 - 2013 Sagacious Research. All Rights Reserved.

www.sagaciousresearch.com

Difficulties in Patenting Software Programs

Patents often offer a broader IP protection for a software program. However, requirement that the invention must be “new” and “non-

obvious” causes the most problems for software patent applications. On the other hand, it aids in analyzing as to whether one should

pursue patent or copyright protection for such an invention. Patent protection does not exist until a patent is issued. Generally, a patent

grant takes approximately 2 years (or more) from the date of filing a patent application. Additionally, in US, the cost of preparation

and prosecution of a software patent application may go up to $6,000-$15,000. Thus, one can clearly see the kind of leverage,

copyrighting software gives to the inventor.

Advantages of Copyrighting Over Patenting For A Software

1. The set criteria’s for getting a copyright are much less complex.Copyright protection is given on the expression, not the idea, of

any original work whether literary, artistic, dramatic, musical, and certain other intellectual works including software programs.

Copyright protection comes into being as and when the original work gets recorded in tangible form. However, copyright

registration is generally required to obtain damages in an infringement action against one who copies the work.

2. Copyright registration is a relatively simple procedure and does normally require submission of “identifying portions” of a

computer program, although “special relief” may be available, for e.g., a program that contains trade secret information. Its

other advantages include:

The ability to obtain attorney fees and statutory damages which may be important if one cannot prove economic damages

Registration provides prima facie evidence of the facts stated thereon

Protection is provided against an alleged subsequent deceitful assignment of rights in the work.

3. The term for a copyright is lengthier as against that of a patent (20 years in most cases) and in most cases, it is also extendable.

For e.g., in US, once it exists, for works created after January 1, 1978, copyright, in general, lasts for a period of 70 years from the

death of the inventor/creator. In the case of works made for hire, however, protection runs for a period of 95 years from

publication or 120 years from its creation, whichever comes first.

4. In US, copyright protection can generally be obtained in approx. 3 months.

5. Copyright infringement, unlike infringement of a patent, if carried out willfully and for purposes of commercial or private

financial gain, can be prosecuted as a crime as well as a civil wrong. The maximum penalty depends on the exact nature of the

defendants acts. In most egregious cases, there is also provision for imprisonment for up to 5 years.

6. Like patents, copyright is subject to national requirements. However, as most major countries are parties to the Berne and

Universal Copyright Conventions (effective since March 1, 1989), copyrights are much more easily enforceable around the

world.

Conclusion

Although, we have stated several advantages of copyrighting over patenting as far as the computer softwares are concerned, the most

important factor in deciding whether to seek copyright or patent protection for software is to weigh the degree of difficulty required in

obtaining the protection against the scope of protection afforded. And it is always recommended that if your software meets the

requirements for patent protection (as it is a significant advance in the domain of software engineering) patent protection shall be

pursued. However, if it is not the case, as for most softwares, copyrighting is the best legal and intellectual property protection available.

Page 4: Sagacious Research Newsletter-16 Dec-2013

© 2007 - 2013 Sagacious Research. All Rights Reserved.

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Further guidance can be taken from a professional (such as a patent attorney) who is capable of critically analyzing all the factors in

determining the appropriate form of IP protection for software.

Some of the websites offering crowdfunding services are:

Kickstarter.com

Peerbackers.com

Indiegogo.com

RocketHub.com

Equitynet.com

The process involves posting a project description on the internet and asking for pledges to complete the project. If the minimum amount

of pledges is received by a certain deadline, the project is initiated or else abandoned. There are several success stories to tell, however, we

would like to specifically enlist a few Kickstarter campaigns, the oldest crowdfunding platform that has raised $40M for 7,500 projects in 2

year time.

The project for manufacturing TikTok watch band mount for iPod nanos needed a minimum of $15,000 to launch and

crowdfunding raised $941,718.

Then, +POOL project that began with the goal of cleaning the entire river not only filtered the water it but allowed New Yorkers to

swim in clean river water for the first time in 100 years. The project raised $273,114 through Kickstarter to build a filtered, floating

swimming pool in the middle of the river.

Pros

Crowdfunding helps in evaluation of the market value of an invention

and a product that will be produced using that. If a project finds

investors, to a great extent it is confirmed that the idea/invention or

the product is worth exploring and you also get the resources to

initiate its production. The best part is that crowdfunding adds a new

source of funds to your conventional sources of funds that include

yourself, “friends and family”, and angel investors. It makes the

“initial consumers” pay you the much needed funds that eventually

become your guaranteed customer. They, in turn, get an exciting new

product. If the funds aren’t raised, you have a valuable market

feedback. Besides that, if crowdfunding is cautiously used, it makes your intellectual property especially your patents pay. You may

form a successful startup company, raise investment capital and even earn licensing fees on your invention.

Cons

The fundamental problem is that often individual artists, startups or small businesses who are involved in crowdfunding do not usually

attend to business and legal standards. This casual approach is forms the core of all problems related to crowdfunding. Some of them

neglect to pay taxes on contributed funds, others erroneously refer their project as a non-profit without fulfilling (or even applying for) that

Exploring The Connection B/w Intellectual Property &

Crowdfunding Discover all the advantages of “Copyrighting” over” Patenting” for a

Software

An inventor may now review the market worth of his invention much before

spending any money on its commercialization and securing IP protection for

it, thanks to the concept of crowdfunding. It is a promising new way worth

exploring to raise funds for both inventors looking to promote a new idea and for

backers looking to support new ideas.

Page 5: Sagacious Research Newsletter-16 Dec-2013

© 2007 - 2013 Sagacious Research. All Rights Reserved.

www.sagaciousresearch.com

status through the Internal Revenue Service. Lastly, they may ignore securities laws or compliance with other regulations. Also, most

crowdfunded projects, whether focused on arts or technology, involve intellectual property (patent, trademarks or copyrights) and public

disclosure of intellectual property can have a significant effect on its legal status.

With Patents

The America Invents Act has turned America to a “first to file” country and as such whoever files a patent first will have priority. If an

entrepreneur disclosed a new technology on a crowdfunding website and someone else filed a patent application before the entrepreneur

got around to it, the filer would own the invention. The entrepreneur could litigate ownership based on various legal theories, but the

outcome would be much less certain.

With Trademarks

Similarly, whoever files for a trademark first is presumed to have rights to that mark. A crowdfunded project that discloses a catchy new

slogan for which a federal trademark application has not yet been filed is at significant risk of having someone else file an application

for that trademark.

There also is the risk of ownership of ideas submitted by the public. Most crowdfunding websites permit members of the public to comment

on projects that are later included into the project as recommendations. While some websites, including Indiegogo, specifically defines that

the project creator owns rights to all submitted comments, other like Kickstarter does not define ownership, leaving the parties to negotiate

or litigate an answer if a project becomes highly successful. Thus, a project creator who uses publicly submitted ideas faces the risk that a

commenter will protest and create a public relations problem or even litigate ownership.

Terms of use for crowdfunding websites rarely mention in any detail the obligation requirements after funds are donated. So when large

donors follow up to ensure that donated funds are well spent and feel deceived, there arises a possibility of a class action lawsuit.

A Word of Caution

Prior to engaging in any crowdfunding project, make sure you read the contract, agreement or terms and conditions to familiarize yourself

with all the obligations and requirements. Yet, protecting your novel and inventive idea while your project is posted for the all the world to

see is also your own responsibility. So, file a provisional patent application i.e. an inexpensive way to make your invention “patent

pending” for 12 months while you are raising money. If your project meets its goals, then you move on to “non-provisional patent

application”. If not, then you’ve saved quite a bit of money in legal fees.

S O M E O T H E R T O P N E W S I N T H I S C A T E G O R Y:

Tips for Inventors/Startups Who Wish To Secure IP Protection For Their Inventions in A Low Budget Read: http://bit.ly/IJfQdX Kuwait Achieves Best-ever Rate of Annual Growth in U.S. Patents Among GCC Countries in 2013 Read: http://bit.ly/18QgGPK India: CGPDTM Issues Public Notice With Respect To Patent Renewal Certificates & Related Facilities Read: http://bit.ly/1bJp4NN QUT Patent Database “The Lens” Receives $1.8M Funding From Bill & Melinda Gates Foundation Read: http://bit.ly/197KOss Global Patent Filings See Fastest Growth in 18 Years Read: http://bit.ly/1jaM81S

Page 6: Sagacious Research Newsletter-16 Dec-2013

© 2007 - 2013 Sagacious Research. All Rights Reserved.

www.sagaciousresearch.com

lately they have been spending a lot of their time and resources

attempting to mitigate patent and intellectual property risk related to their software inventions. However, as we dig deeper, and look

for weakness in the US patent system, especially, with respect to the software patents, what surfaces is the problems with the very

nature of software patents and not just the US patent laws. In this regard, the argument put forth by Nathan Myhrvold, President of

Intellectual Ventures, a prominent patent licensing firm, is of great value. He brings to notice the flaws in the software patents and

argues that, “The US Patent System isn’t broken.”

For better understanding this, take the case of pharmaceutical patents. Patents in the pharmaceutical and chemical industries produce

considerable net value and work particularly well largely due to the fact that these have well defined boundaries (not only because they have

a longer patent term). It is relatively easy to determine what a chemical/biological compound is, and what it is not. Thus, every drug

company relies on patents and takes those occasional patent litigation lawsuits as part of the game and do not ever blame the patent system

for it.

In contrast, it is nearly impossible to determine what the valid boundaries of a software patent are. Moreover, ascertaining the meaning

of patent claims of software patents and their scope is quite a task. Also, while the US patent system is as old as 200 years, software

became eligible patent subject matter in recent times and since then there has been a flood of such patents at PTO that nothing could have

been done to either deny examination of such applications or improvise the examination procedure. Subsequent result is higher litigation

rates and a high frequency of appeals against software patents, especially by those technology companies, who have been innovating and

applying for patents for a longer period of time, against those who simply copy their work.

Some very simple remedies are recommended below, applying which would largely decrease the problems related to

software patents-

Make software patent claims transparent or unambiguous by defining ways to write them and keep record of the same for reference of

innovators so that they have all the information on patent boundaries. This includes strong limits on patent “continuation

applications” as well, a tactic that is used to keep patent claims away from public eye for extended periods.

Enforcing strong limits against overly abstract claims. At least patent law should prevent software patents from claiming technologies

far beyond what was actually disclosed as the patented invention. For this, some subject-matter tests like the “tangible test for

patent-eligibility for business method patents” may also be introduced to limit the range of software inventions that can be patented.

Make prior-art searches feasible by including a strong requirement that patents should not be granted on obvious inventions

coupled with substantially higher renewal fees.

Discourage renewal of low-value patents thereby reducing the cost of FTO searches

Conclusion

There is, indeed, a problem of deterioration of patent “quality” and invalid software patents are

blocking standards besides creating a lot of legal and financial risks that most companies in Silicon

Valley can’t afford. However, not all software patents are bad patents (lacking novelty or

obviousness), as the general perception is. So, though patent reform is the need of the hour, the

flaws in the patent system are not to be blamed for it completely. In lieu, there is a need to address

Why Software Patents Are Troubling Silicon Valley

Businesses?

As we dig deeper, and look for weakness in the US patent system,

especially, with respect to the software patents, what surfaces is

the problems with the very nature of software patents and not

the US patent laws.

The Silicon Valley entrepreneurs have been quick to reach to a

conclusion that the patent system in US is flawed, possibly because

T E C H N O L O G Y

Page 7: Sagacious Research Newsletter-16 Dec-2013

© 2007 - 2013 Sagacious Research. All Rights Reserved.

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broader improvements, like in patent notice (that notify the public of the existence of the patent) so that the patent examination is

facilitated and takes place on clearer, predictable patent boundaries. That will not only address the problem of the patent

litigation “explosion” but would also effectively control it.

Germany, and other parts of Europe. The rulings for many of these infringement suits are out and Nokia has successfully beaten the

Taiwanese smartphone maker in most of these cases. Most recent is Nokia’s win in UK where court has banned HTC One, company’s

flagship Android handset. In fact, a number of HTC devices breach the same patent, including the HTC One, One Mini, One Max, 8S and

Desire 601. These HTC handsets use a technology patented by Nokia patent ‘024 relating to Broadcom BCM4239, BCM4330, BCM4334,

and Qualcomm WR1605 chips. These chips and the allied technology are designed to assist broadcast voice and text messaging used in

almost every smartphone that is available in the market today.

Also note that Nokia paid more than $1 billion to Qualcomm in royalties since the early 1990s only to later become biggest customer for

its chips by entering in a 15Y licensing agreement back in 2008. Similarly, Broadcom Corporation also became Nokia’s proud EDGE

partner by supplying advanced single-chip cellular baseband processors and its companion power management unit (PMU) for Nokia’s

selected EDGE mobile phones. So, it is quite evident that Nokia had the foresight to accumulate patents related to futuristic technologies.

To gather such an insight of pattern of patenting activity in this technology domain, as we have mentioned in one of our other blog article

“Nokia vs. Apple: An Epic Patent War B/w Two Tech Giants” , Nokia must have invested in state-of-the-art searches or

landscape analysis.

The court order would make HTC vulnerable up to March 2014, when it will release a successor to the HTC One. Thus, court has given

the company time to appeal its decision till December 6, 2013. And if HTC can’t win its appeal, if it submits one, it’s possible many of its

devices will disappear from store shelves up and down the UK. Nokia requested an injunction on October 30, 2013 over EP No. 0998024.

And despite of knowing that it is facing a claim for infringement of the Nokia patent, HTC launched HTC One smartphone.

S O M E O T H E R T O P N E W S I N T H I S C A T E G O R Y:

Google Glass Copycat Version In Making, Hints Apple’s Patent on Video Goggles Read: http://bit.ly/1hQMclN Samsung Files New Patent Application with USPTO for Smartphone Eye Scanner Read: http://bit.ly/1aM5HaJ Apple Patents Tech For Curved iOS Device Displays Read: http://bit.ly/19lWhme Equipped With Artificial Intelligence, Robots Might Solve Problems Related To Excessive Copyright Protections Read: http://bit.ly/1dbaxwR JPMorgan Patents Bitcoin-Like Digital Payment System Read: http://bit.ly/IJg7Oi

Massive Blow to HTC – Sale Ban on HTC One in UK on

Infringement of Nokia’s Patent In UK, court has banned HTC One, company’s flagship Android handset on

account of infringing Nokia’s European patent “024.

In our blog article titled “Nokia is on a Suing Spree”, we explored many of

the patent wars initiated by Nokia over European Patent number 0998024 and

its other patents. HTC emerged as the biggest victim of Nokia’s infringement

lawsuits as in past 2 to 3 years; Nokia has filed approx. 50 different breaching

claims against HTC in the U.S., UK, Germany, and other parts of Europe.

Page 8: Sagacious Research Newsletter-16 Dec-2013

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Medicines Patent Pool’s Other Agreements:

Back in August 2013, MPP and Roche have entered an agreement to increase access to valganciclovir, a key oral medicine to

treat cytomegalovirus (CMV), a viral infection that can cause blindness in people living with HIV.

MPP also collaborated with ViiV Healthcare – a joint venture of GlaxoSmithKline, Pfizer, and Shionogi to facilitate greater

availability of key pediatric HIV medicine, abacavir.

Patent Pools

It is a consortium of at least two companies who have decided to offer a joint license for their patents that are essential to the practice of

a defined specification. In simple words, it is a joint licensing program where a number of firms pool all their relevant patents that

pertain to a particular technology/specification.

Benefits – Patent pools are exemplary in the sense that they unite the members of an otherwise competitive industry to join a common

cause to create some resource that is to their collective benefit. The other benefits of patent pools are-

Helps in the deployment of new technologies to the marketplace and set a market rate for Essential Patents. This encourages

licensors to join the program and encourages licensees to obtain license. Thus, it saves time and effort in getting access to some

Essential Patents

Helps in integrating complementary technologies and reduce transaction costs for both licensors and licensees thereby removing

any uncertainty about the availability of patent licenses and their costs

Besides saving transaction costs for both licensee and patentee, in case of blocking patents, patent pools are possibly the only

reasonable method for making the invention available in the public domain.

Patent pools do not completely eliminate risk. However, if patent holders (of other patent pools) and those outside the pool pose

threat of a patent infringement lawsuit, being a part of a patent pool does help as all its member share common interests.

L I F E S C I E N C E S

BMS & Medicines Patent Pool Collaborates Over HIV Drug “Atazanavir”

BMS has agreed to enter a joint patent licensing program with United Nations-backed Medicines Patent Pool (MPP) and

share intellectual property rights of HIV drug, “Atazanavir” (brand name Reyataz)

By 2016, there will be approx. 1 M HIV patients who will need second-line AIDS treatment as offered by Bristol-Myers Squibb’s HIV

drug, “Atazanavir” (brand name Reyataz). Taking that in serious consideration, BMS has agreed to enter a joint patent

licensing program with United Nations-backed Medicines Patent Pool (MPP) and share intellectual property rights of this

vital HIV/AIDS drug. The agreement was announced on 12 December, 2013. It will enable generic drug firms around the world to

produce Atazanavir’s affordable versions thereby making AIDS treatment widely and easily available in poor countries. The Medicines

Patent Pool offers a public-health driven business model that aims to lower the prices of HIV medicines and facilitate the

development of better-adapted HIV medicines in developing countries. It was founded in 2010 through the WHO-based financing

mechanism UNITAID.

S O M E O T H E R T O P N E W S I N T H I S C A T E G O R Y:

FDA Approval for Gilead’s Sofosbuvir Attracts Patent Battle Read: http://bit.ly/18IncIe Post Patent Expiry, US FDA Approves Generic Version of Eli Lilly’s Blockbuster Drug “Cymbalta” Read: http://bit.ly/1dFqb49 EPO Defines Patentability Criteria For Methods Involving Human Embryos Read: http://bit.ly/JxHz2e

Page 9: Sagacious Research Newsletter-16 Dec-2013

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Inval id i ty/

Opposi t ion Searches

Patents Mining

Claim Construct ion

Infr inger Ident i f icat io

n

Claim/EoU Chart ing

Reverse Engineer ing

Patentabi l i ty/ Novel ty Searches

FTO/ Clearance Searches

Patent I l lustrat ions/

Drawings

Patent Landscape

Studies

Compet i t ion/ Technology

W atches

Structure/ Sequence Searches

Paralegal Support

Patent Proofreading

IDS Preparat ion

Patent Docket ing

Other Services

Global Trademark Searches

Design Searches

Patent Translat ions

Prosecut ion W atch

A B O U T S A G A C I O U S R E S E A R C H

Sagacious Research is an ISO Certified India based

Global Patent Research & Analytics firm offering

cost effective & multi-lingual Patent Searching, Patent

Licensing, Patent Alerts & Watches, Patent Drafting,

Trademark Searching & Design Searching Services in

over 100 countries and in over 16

Asian/European languages.

An ISO 9001:2008 and ISO 27001:2005

Certified Company

70+ Techno-legal Experts | 16+ Languages |

100 Countries | 5, 000+ Projects | 99% Client

Retention

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