FICPI ６ TH OPEN FORUM Yoshikazu Tani TANI & ABE No. 6-20, Akasaka 2-chome Minato-Ku, Tokyo 107-0052 TEL: +81-3-3589-1201/FAX: +81-3-3589-1206 E-mail: [email protected][email protected]

FICPI FICPI ６６ TH OPEN FORUMTH OPEN FORUM

Yoshikazu Tani

TANI & ABENo. 6-20, Akasaka 2-chome

Minato-Ku, Tokyo 107-0052

TEL: +81-3-3589-1201/FAX: +81-3-3589-1206

E-mail: [email protected]

©2001 Yoshikazu Tani, TANI & ABE

All Rights Reserved.

　　　　　　　　　　　　 Session 1.4“ Making bricks from straw

　　　　　　　　 – Claiming of business methods ”

15 November 200115 November 2001

mailto:[email protected]





CONTENTSSession 1.4 “Making bricks from straw –Claiming of business methods”

　　　　　 1. How to draft a business method patent application 　　　　 1.1 How to grasp a statutory inventive idea 　　　 1.2 How to draft statutory claims　　　 1.3 Claim strategy 　　　 1.4 Sufficient disclosure 　　　　　 1.5 Practical examples　　　 2. How to prosecute a business method patent application 　　　　　 2.1 Statutory invention　　　 2.2 Prior art database　　　 2.3 Patentability　　　 2.4 Problems　　　 3. How to enforce a business method patent 　　　　 3.1 Distributed transaction/processing 　　　　 3.2 Patent infringement litigation in Japan 　　　 3.3 Claim interpretation 　　　 3.4 Licensing problem 　　　 3.5 Global unification or differentiation?　　　 4. Future revisions of the Japanese patent law 　　　 4.1 Category of invention 　　　　　 4.2 Mode of working 　　　　　 4.3 Japanese translation of English PCT specification 　　　 4.4. IDS for available prior art

1. HOW TO DRAFT A BUSINESS METHOD PATENT APPLICATION 1.1 HOW TO GRASP A STATUTORY INVENTIVE IDEA

●§ ２ /JAPANESE PATENT LAW:

●EXAMINATION GUIDELINES:

NON-STATUTORY INVENTION

　　 STATUTORY INVENTION 　

Statutory invention = Technical idea utilizing natural laws

●Man-made rule, mathematical algorithm per se ●Business method per se

●Claim specifying the way how SW cooperates with HW resources

1. HOW TO DRAFT A BUSINESS METHOD PATENT APPLICATION

1.1 HOW TO GRASP A STATUTORY INVENTIVE IDEA

●Mere flashes of idea / Business scheme is not patentable.

●Add technical supports to business scheme.

Conception / Flashes of idea

Statutory invention

Technical supports:How to utilize HW resources( PC, NW )


1.2 HOW TO DRAFT STATUTORY CLAIMSNON-STATUTORY INVENTIONS:●Pure algorithm●Pure business method

CLAIM LANGUAGE:●How to utilize H/W resources●Breakdown of functions or utilization of H/W resources ●Mere reciation of H/W resources is not satisfactory

EMPHASIS ON:●Technical contribution ●Technical effects ●Technical application / field (utility)

STATUTORY INVENTION:●Algorithm-related invention●Business method inventionIn terms of apparatus / method / computer program product

1.3 CLAIM STRATEGY1. HOW TO DRAFT A BUSINESS METHOD PATENT APPLICATION

(1)USE COMBINATION + SUBCOMBINATION:●Entire system + Subsystem●Apparatus + Parts ●Method + Submethod

(2)CONSIDER 3 TYPES OF CLAIM:

●Apparatus / System claim●Method / Process claim●Computer program product claim

(3)CONSIDER VARIOUS APPLICATIONS:

●Draft claims in various fields to which the invention is applicable

(4)USE MULTI CLAIM SYSTEM:●More flexible than in other countries●Use multi dependence to save cost●Effective utilization of dependent claims●“Further comprising”claim●Combination of previous claims


1.3 CLAIM STRATEGY

MULTI CLAIM SYSTEM IN JAPAN

● The number of independent claims is not limited.

● Replacement type claim: An apparatus wherein element A in claim 1 is replaced with element B.

● Combination type claim: An apparatus comprising element A as claimed in claim 1 and element B as claimed in claim 2.


1.4 SUFFICIENT DISCLOSURE(1)SPECIFY:●Field of technology ( Industrial applicability, utility)

(2)DESCRIBE:●Background of the invention●Objects of the invention ●Resulted operations and technical effects●“Problem-solution approach” 　 in Japan

(3)EXPLAIN:●The invention in full, clear, concise and exact terms ●Embodiments satisfying enablement ●Best mode●The relationship between software and hardware●With effective reference to the drawings ●With effective use of detailed flowcharts and pseudo code listings instead of program listings / microfiche

(4)APPEND:●Glossary of technical jargons, terms, abbreviations symbols, rules, functions, commands, task blocks and so on 　

(5)NOT RECOMMENDED ：●Program listings / microfiche


1.5 PRACTICAL EXAMPLES

－ Combination of advertisement information with map information 　

●JP 2,756,483 ( June 13, 1998 )“Method of supplying advertisement and method of registering advertisement”

1. HOW TO DRAFT A BUSINESS METHOD PATENT APPLICATION1.5 PRACTICAL EXAMPLES

－ Prepaid card type charging system utilizing charging server and authentication server－ Licensing offer unsuccessful. Preliminary injunction filed, but denied, because of narrow scope of claim 　

●JP 2,939,723 ( June 18, 1999 ) “Time-based charging system for internet ”

PCMODEM

NetWork

PCMODEM

MODEM

MODEM

MODEM

TerminalServer

AuthenticationServer

AuthenticationData base

ChargingServer

Password The Number of Connections

1. HOW TO DRAFT A BUSINESS METHOD PATENT APPLICATION1.5 PRACTICAL EXAMPLES

－ The system enables a creditor to receive automatic notice of settlement of money transfer by debtors(payers) by means of virtual accounts as meta accounts assigned to payers.－ Licensing arrangements－ Three opposition cases field

●JP 3,029,421 ( February 4, 2000 ) “Money transfer processing system ”

Transfer Receiving Process

Meta AccountSearched ?

Add MetaAccount Number And/Or

Meta AccountRelated Information

To Account/Receivable Ledger

Convert Meta Account Number Into Specified Account Number

Regular A/R Ledger Processing

A/R Ledger

EBService

Feedback

A/R LedgerFeedback

YES

NOS302

S304

S306

S308

S312

S314

Claim1: A transfer system in a bank system for transferring money using a plurality of related (meta) accounts to payers,comprising: 　 a unit for performing a receiving process on a specified account to collectively receive money transferred into a plurality of related accounts; an output unit for outputting transfer information for the related account by adding to it account related information about an account related to a payer and/or a number specifying the related account; and a unit storing the outputted transfer information as the transfer information about the specified account.


1.5 PRACTICAL EXAMPLES●JP 2,141,163 ( December 3, 1999 )“Electronic money system ”－ Citibank patent－ Many of Japanese banks were triggered to be more involved in patent protection first time. － USP 5,453,601

●JP 2,874,341 ( January 14, 1999 )“Money transfer system ”－ Mondex Money－ USP 5,623,547 ； USP 5,778,067－ EP 479,982


1.5 PRACTICAL EXAMPLES

●PENDING APPLICATIONS－ Hub and spoke financial service configuration / Signature Financial Group Inc.－ Amazon’s one click ordering system－ Buyer driven conditional purchase offers ( Reverse auction )

●BAD EXAMPLE●JP 2,804,933 ( July 24, 1998 ) “Automatic Cafe”Claim: An automatic café characterized in that a customer visiting the café inserts coins( ) into an ⑧ automatic tableware rental machine( ) to rent tableware( ), food/beverage is dispensed into the① ⑦ tableware by a dispenser( ), and the customer carries the tableware( ) with food/beverage to④ ⑦ table （⑥） to eat/drink it.

1

8

2 3

5

7

46

7

2.1. STATUTORY INVENTION

2. HOW TO PROSECUTE A BUSINESS METHOD PATENT APPLICATION

● Emphasis on technical nature of the invention

● Drafting claims by following the Examination Guidelines

－ How to cooperate SW with HW resources

● Claim should be supported by disclosure.

● Clearly show utility of the invention

－ Field of the invention

2.2. PRIOR ART DATABASE


● Insufficient prior art database in the field of SW and business method● Conduct prior art search to evaluate the invention● Volunteer to disclose prior art references located● Educate and cooperate with examiner to expedite examination and hopefully guide examiner to the invention

2.3 PATENTABILITY


● Inventive step is more important than statutory subject matter

　 issue.

● Inventive step in the case of new business method

○○New

Known ？NewKnown

×Computer

Processing

Business methodInventive step


2.4. PROBLEMS

● Less number of patent attorneys and examiners in business fields

● Longer pendency

● Solution

－ More detailed disclosure － Better comparison of the invention with prior art

3. HOW TO ENFORCE A BUSINESS METHOD PATENT

3.1. DISTRIBUTED TRANSACTION / PROCESSING

● System claim comprising server, network and user terminal:

● Joint Tort Issue Server, network and user terminal are partly involved in the entire infringement act. ● Cross border issue ● Enforceable claims directed to each part of the entire system

Network Server

User terminal


3.2. PATENT INFRINGEMENT LITIGATION IN JAPAN● Expedited court proceedings － 1-2 years － Exchange of information between JPO and courts

● Partial shift of burden of proof to defendant － The defendant should show evidences of Non-infringement at an earlier stage.

● Trade secret protection － No protective order － Only in-camera system

● Amount of damage － Reasonable royalty － Lost profit － (Amount of product by defendant) ×(Unit profit by plaintiff) － Hypothetically licensed royalty

● Preliminary injunction － More frequently affirmed than in the past － Powerful to plaintiff. Serious influence to defendant.

● Validity issue can be reviewed by a court since April, 2000.


3.3. CLAIM INTERPRETATION●Doctrine of equivalents(1)Doctrine of equivalents is applicable when the difference between the patented

invention and the accused device is not a substantial part of the patented invention.(2) Interchangeability(3) Ease of interchange at the time of manufacturing the accused device(4) Exclusion of the publicly know prior art or its obvious version from the scope of the claim.(5) File wrapper estoppel confirmed.

● File wrapper estoppel

● Functional claim－ Functional means/step is not limited to those disclosed in the specification, if the term is clear by itself.－ If the term is not clear, the term may be construed by referring to the specification.－ No §112 paragraph 6 requirement


3.4. LICENSING PROBLEM

● How to evaluate royalty － The number of products to be manufactured

－ The number of services enjoyed by implementing

the invention


3.5. GLOBAL UNIFICATION OR DIFFERENTIATION ?

● Different patent practices among various countries

－ Examination can be harmonized.

－ Claim interpretation can be hardly harmonized.

－ Court judgment can be hardly harmonized.

● It would be easier to make international cyber law to harmonize

international issues on cross border patent enforcement.

It would be difficult or almost impossible to change traditional

national enforcement practices or court system.

4. FUTURE REVISIONS OF THE JAPANESE PATENT LAW

4.1. CATEGORY OF INVENTION

● Two categories － Article (apparatus, system, product) － Method / Process ● Article covers even an intangible product such as program without storage medium. Signal per se is not patentable.


4.2. MODE OF WORKINGCurrent definition of working:

－ Product : “manufacturing”, “using”, “assigning”, “leasing”, “importing”, “offering” for assignment or “lease” the product

－ Method : “using” the method

－ Manufacturing method : “using” the method, using, assigning, “leasing”, “importing” or “offering” for assignment or “lease” the product manufactured by the method

Future definition may exclude “assign” and “lease” and add : “Supply” (including “assign” and “lease” and “offer” via information network).


4.3. JAPANESE TRANSLATION OF ENGLISH PCT SPECIFICATION

● Entry into Japan should be within 30 months from the first filing date (priority date).

● Two-month grace period for submitting Japanese translation after 30 months.


4.4. IDS FOR AVAILABLE PRIOR ART

● Encouraged to submit IDS

● Available prior art

● For better development of prior art database

Documents

FICPI ６ TH OPEN FORUM Yoshikazu Tani TANI & ABE No. 6-20, Akasaka 2-chome Minato-Ku, Tokyo 107-0052 TEL: +81-3-3589-1201/FAX: +81-3-3589-1206 E-mail: [email protected][email protected]