905 - IP Year in Review
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ACC’s 2010 Annual Meeting Be the Solution. Wednesday, October 27 9:00am-10:30am 905 - IP Year in Review Judy Powell Partner Kilpatrick Stockton Kelly Slavitt Counsel In Transition Lydia Cheuk General Counsel & Business Affairs Director Blue Man Productions, LLC Andrew Pham Associate General Counsel, Global Intellectual Property Verint Systems Inc. This material is protected by copyright. Copyright © 2010 various authors and the Association of Corporate Counsel (ACC). Materials may not be reproduced without the consent of ACC. Reprint permission requests should be directed to ACC’s Legal Resources Department at ACC: +1 202.293.4103, x338; [email protected] ACC's 2010 Annual Meeting Be the Solution. Session 905 Faculty Biographies Lydia Cheuk Lydia Cheuk is the general counsel and business affairs director for Blue Man Group. She works on business and legal issues relating to a variety of domestic and international creative projects, including theatrical productions, music albums, music scores for films and television, and film. She also represents and counsels various individual performers, musicians, writers, and artists. Prior to joining Blue Man Group, Ms. Cheuk was an associate at Goodwin Procter, where she worked on venture capital transactions as well as mergers and acquisitions. Ms. Cheuk received her undergraduate degree from the University of Michigan and law degree from the New York University School of Law. Andrew Pham Andrew T. Pham is the vice president and associate general counsel, global intellectual property and licensing, for Verint Systems Inc.-a leading provider of Actionable Intelligence(R) solutions for workforce optimization, IP video, communications interception, and public safety. He counsels Verint(R) on patent, trademark, copyright, open source and other intellectual property and technology issues including licensing and litigation. Mr. Pham's primary research and publication interests include the economics of patents and patenting, portfolio-based patent strategies and management, global patent protection, patent monetization, and corporate open source policy and management. Mr. Pham holds a JD from Marquette Law School, and a Bachelor of Science in Electrical Engineering and an MBA. Judy Powell Kilpatrick Stockton Kelly Slavitt Kelly M. Slavitt is a transactional intellectual property attorney. Until recently, she was in the Corporate Legal Department at General Electric counseling her lighting, appliances, energy, oil and gas, and Spanish television network clients on contract and transactional IP matters. Prior to joining GE, she was corporate counsel at The American Society for the Prevention of Cruelty to Animals (ASPCA) where she counseled the business on all corporate issues, ran the legal department and was the organizations first in-house IP counsel. Copyright © 2010 Association of Corporate Counsel 2 of 459 ACC's 2010 Annual Meeting Be the Solution. Session 905 Prior to joining the ASPCA, Ms. Slavitt was a transactional IP/IT associate at Skadden, Arps, Slate, Meagher & Flom and Thelen Reid & Priest in New York City, and a solicitor at Allens Arthur Robinson in Melbourne, Australia. Ms. Slavitt has been published numerous times in publications ranging from scholarly legal reviews to business law publications, and has spoken on panels at numerous conferences. Ms. Slavitt received her BA from The Pennsylvania State University, her Masters of Public Administration from New York University, her JD from Brooklyn Law School, and her LLM from The Benjamin N. Cardozo School of Law. Copyright © 2010 Association of Corporate Counsel 3 of 459 ACC's 2010 Annual Meeting Be the Solution. Many new issues, some we won’t have time to touch on but note: • David Kappos named as New Under Secretary of Commerce for Intellectual Property and Director of the USPTO • Litigations: In re Bose, Victoria’s Secret, Microsoft, RIM/ Visto, KSR, NFL logo licensing and antitrust, REDSKINS trademark, Citizens United • Increase in comparative advertising but not in litigation • Auction sites; keyword advertising • Social networking sites; FTC blogging regulations COPYRIGHTS Lydia Cheuk, Esq. General Counsel and Business Affairs Director Blue Man Productions, LLC Viacom v. Google “Red Flags” and “Safe Harbors” under the DMCA Copyright © 2010 Association of Corporate Counsel 4 of 459 ACC's 2010 Annual Meeting Be the Solution. YouTube claims “safe harbor” under 512(c) of DMCA, so it can’t be liable for posting users’ infringements; Viacom says YouTube can’t rely on 512 (c) because it had knowledge of “facts or circumstances from which infringing activity is apparent” “Subsection (c)(1)(A)(ii) can best be described as a ‘red flag’ test. As stated in subsection (l), a service provider need not monitor its service or affirmatively seek facts indicating infringing activity . , in order to claim this limitation on liability” Senate Report at 44-45 COURT: No “red flags” here because “The phrases ‘actual knowledge that the material or an activity’ is infringing, and ‘facts or circumstances’ indicating infringing activity, describe knowledge of specific and identifiable infringements of particular individual items. Mere knowledge of prevalence of such activity in general is not enough.” Copyright © 2010 Association of Corporate Counsel 5 of 459 ACC's 2010 Annual Meeting Be the Solution. COURT’S REASONING: the safe harbor is available to ISPs who do not monitor user postings; the safe harbor is not available to ISPs who ignore red flags; therefore ISPs who do not monitor cannot be held to have ignored red flags. The Internet and “Publication” Getaped.com v. Cangemi (2002): once a website goes “live” on the internet it is published for purposes of the Copyright Act. But WHERE is internet content “published”? Copyright © 2010 Association of Corporate Counsel 6 of 459 ACC's 2010 Annual Meeting Be the Solution. Moberg v. 33T LLC [N]o civil action for infringement of the copyright in any United States work shall be instituted until preregistration or registration of the copyright claim has been made in accordance with this title. 17 U.S.C. § 411(a) [A] work is a “United States work” only if … in the case of a published work, the work is first published … simultaneously in the United States and another treaty party or parties, whose law grants a term of copyright protection that is the same as or longer than the term provided in the United States. 17 U.S.C. § 101 Copyright © 2010 Association of Corporate Counsel 7 of 459 ACC's 2010 Annual Meeting Be the Solution. “To require plaintiff to register his photographs in the United States prior to initiating suit against a United States company and the registrants of U.S.-based websites for their violation of United States law, which protects plaintiff's copyrights, would flout United States law and the international union the U.S. has joined voluntarily.” Fairey v. Associated Press PATENTS Andrew T. Pham Associate General Counsel, Global Intellectual Property Verint Systems Inc. Copyright © 2010 Association of Corporate Counsel 8 of 459 ACC's 2010 Annual Meeting Be the Solution. Notable Cases • Bilski v Kappos (subject matter)130 S. Ct. 3218 (2010) – The ‘machine or transformation’ test is not the sole test for determining patentability of an invention under 35 U.S.C. §101. – The USPTO is currently working on a new multi-factor test for patentability that considers ‘machine or transformation’ as one of the factors and are soliciting public input in the decision. • Ariad Pharmaceuticals v. Eli Lilly & Co. (written description) 598 F.3d 1336 (Fed. Cir. 2010) – The Patent Act’s written description and enablement requirements are separate and distinct requirements. – The court's decision in Ariad set a flexible standard for assessing whether the inventor had “possession as shown in the disclosure” of the patent specification. • Golden Hour Data Systems v. emsCharts (joint infringement) 2010 U.S. App. LEXIS 16455 – Joint infringement will not be found when the evidence of “control or direction” is insufficient as a matter of law. – The decision likely results in future parties testing the boundaries of infringing use of system claims. Notable Cases • Tafas v. Doll (continuation limits, claims & RCE limits) – Confirmed that the USPTO Final Rules are within the agency's rulemaking authority and that the rules regarding requests for continued examination, claims, and examination support documents are consistent with the law. The court declined to vacate a ruling that the PTO lacked substantive rulemaking authority when it tried to implement controversial patent claims and continuation practice rules. – Because the PTO voluntarily withdrew the previous rules, then implemented new ones, they could not claim the mootness necessary to vacate the rulemaking authority holding, because the implementation of new rules was within the PTO’s control. • BlackBoard v. Desire2Learn (means plus function) 368 Fed. Appx. 111 – Means-plus-function claims require disclosure in the specification even if the means are already well known in the art. – The court rejected the argument that only specifying that a general purpose computer is programmed could provide adequate structure, per the court's decision in Aristocrat Technologies Australia Pty Ltd. v. International Game Technology, 521 F.3d 1328, 86 USPQ2d 1235 (Fed. Cir. 2008) • Wyeth and ElanPharma v. Kappos (patent term extension) – The Patent Office had been under-calculating the patent term adjustments (PTA) owed to patentees because of USPTO delays during prosecution and must add together the two different “periods of delay” to allow the proper extension. – The average PTA grant has increased by six-months — jumping from 14–months to 20–months. Patent Marking - The Forest Group v. Bon Tool • Forest Group brought an infringement suit when Bon Tool switched to a foreign producer of the exact same product (construction stilts). However, Forest Group’s product did not meet their own patent’s requirements, so the product that Forest Group was selling was falsely marked as patent protected. • The Court of Appeals held that a qui tam plaintiff may collect up to $500 for each falsely-marked product distributed.