The Apple vs. Samsung Verdict Actually Demonstrates that Patents Do Promote Product Innovation

In the time that the Apple vs. Samsung patent fight has been underway, we have been inundated with an untold number of articles on how Apple is stifling innovation in the SmartPhone world.  (Haven’t seen these:  just do a Google search for “Apple stif . . .” you don’t have to type any more than this–the search auto-completes itself.) I often take a contrarian view from that stated by most “expert” commentators–be they members of the press or actual patent professionals, and the Apple v. Samsung verdict is no exception:  I think the result actually demonstrates that the patent system is working just fine in this instance, thank you very much.  But how can this be when Samsung got hit with more than a BILLION US DOLLAR jury verdict last week?!?  Doesn’t the fact that Samsung could not make a product without infringing Apple’s multitude of patents mean that Samsung is effectively prevented from competing with Apple in the Smartphone market? Not necessarily, as is shown by this great post from The Verge entitled:  “How Android has evolved while steering clear of Apple’s designs”.  What is most interesting to me about this article is how we see that while making Continue Reading →

How to Improve your Innovation ROI with Early Stage Patent Expertise: In Depth Management Article

This article, How to Improve your Innovation ROI with Early Stage Patent Expertise,  was published in late 2010 as a pay for download article in Innovation Management Magazine.  It later became free for download, and I can share it with readers in this link.  I hope those responsible for creating value from IP in their organizations can find the insights in this article helpful.  Here is a synopsis: Innovation teams are often removed organizationally from a company’s patent matters. This can mean that corporate innovation processes move forward with little or no consideration of whether competitors can legally “knock off” the resulting consumer offering. Companies may then not attain expected ROI because competitors can legally copy the innovation—be it a product, technology or otherwise—without incurring legal liability. It may not always be necessary to protect innovation efforts with patents, such as where a product has a short shelf-life or where the company may desire to maintain trade secret protection for the technology. However, for innovation endeavors where go-forward financial models assume exclusivity, companies often require patent protection. Also, the absence of patent insights at an early stage frequently means that innovations are not properly scoped for potential infringement risk until significant Continue Reading →

Patent “Expert” Opinion on Reasons for Google Tender Offer for Groupon Reveals Fundamental Problems with IP Professionals

After several years of writing about how business leaders need to wrest control of their IP matters from lawyers, today brought a revelation that illuminated why this seems to be such a hard point to get across.  It should be a no brainer:  it has been shown time and time again that when a company aligns its IP strategy with its business strategy, value creation opportunities abound.  So, why is it so hard to get business people to sign onto something that is unquestionably in the best interests of their shareholders?  It’s simple–patent experts wholly lack credibility with business people on these issues.  This lack of credibility is compounded by the fact that these experts are given a forum to trumpet these views through use of their firms’ large marketing budgets, as well as by haphazard journalists who give them a forum to expound their self-interested views without counterpoint. To this end, my realization was caused by a blog post from my friend Patrick Anderson, the proprietor of the great GameTime IP blog.  He posted an excerpt of an article in the National Law Journal, authored by Amanda Bronsted, where Patrick Arnold, a patent attorney at the Chicago law firm Continue Reading →

We’re Measuring the Wrong Things: Inventiveness and Patents Do Not Equal Innovation

Few things infuriate me more than supposed experts who make statements along the lines of “patents are critical to innovation.”  I have avoided stating my views widely in this forum because I didn’t want to get into a contest of one upmanship with my patent lawyer peers.  However, in the last couple of weeks, several pieces of information have hit my radar screen that make this seem like the right time to go public with my views. Let my position be very clear:  we create a false dichotomy when saying “innovation is not possible without patents.”  The issue is much more complex and nuanced than this:  in a particular instance, patents may be critical to innovation, but they might also be only slightly important or–likely in the majority of situations–they might be wholly irrelevant to innovation.  (I talk more about this in this recent interview in Innovation Management Magazine.) Unfortunately, where you stand also depends on where you sit, and sitting behind a desk writing or examining patents may color your belief that patents are the cure for America’s innovation ills.  (The cynic would likely note that relying on a patent practitioner or the Commissioner of the US Patent Office Continue Reading →

GSU Corporate IP Roundtable on November 4 and 5: A Great IP Event at a Great Discount

Many of you who read my blog also follow my Tweet Streams when I am at conferences.  Last Fall, I blogged from the Georgia State University Corporate IP Institute.  Several people admonished me for not letting them know beforehand that the event was occurring, so this year I am giving everyone advance notice, as well as providing folks with the ability to attend using my discount code. The 2010 GSU Corporate IP Institute will be on November 4-5 at Georgia State University.  Unlike most IP-related CLE’s, this event generally is light on the case law citations, and heavy on practical tips for those who view IP as a primary form of business value today.  (Editorial note:  if you are a case law geek, then this is not the event for you–but if you are a caselaw geek, why the heck are you reading this blog anyway?!) The full details are in this brochure, but one super highlight is that on the 4th, Ray Niro will go up against Dan McCurdy to discuss IP monetization–those in the know will recognize that this is like having matter and anti-matter in the same room!   This will be my 4th year attending this event, Continue Reading →

Want to Know More about IP Strategy? A Selection of Posts for In-House and Outside Counsel

This week, I am speaking at the Midwest IP Institute.  I will be participating in a “fire side chat” with my good friend, Edna Vassilovski of Stoel, Rives LLP. Our session is entitled “How Patent Prosecutors and In-House Counsel Can Provide Work Product Better Aligned with Client’s Business Needs.”  Specific topics we will discuss include: How clients’ views of IP and intangible assets are changing and ways both inside and outside counsel can stay relevant to clients today; What you can do to help clients obtain meaningful patents at reduced cost; How to really understand clients’ business goals and how to help make those happen; and How to help clients monetize their patents I am really looking forward to sharing my passion for IP business strategy with in-house lawyers and outside counsel, especially since I will be doing this with someone like Edna who I think has a great grasp on client service from a business perspective.  In preparation for this talk, and for the benefit of those attending the the session who would like to learn more about my perspective, I thought it made sense to revive some previous blog posts from the past couple of years where I Continue Reading →

R & D Tax Credits Mean Little to Businesses That Do Not Competently Manage Their Intangible Assets

This week, President Obama will announce a $100 billion proposal to stimulate the economy, where much of the focus is to be placed in the area of R & D tax credits. In addition to making the R & D tax credit permanent, Obama will seek increasing one of the credits available from 14 to 17 percent. This announcement brought to mind a blog post that I wrote almost 2 years ago addressing how I believe that many companies fail to capture all they are entitled with respect to existing R & D tax credits due to the fact that most companies do a poor job identifying, capturing and protecting their intangible assets.  So, irrespective of one’s opinion of whether this new stimulus plan will help the economy, it is my strong belief that many–if not most–corporations, both large and small alike, will fail to fully capitalize on the tax credits available to them because their organizations do not possess the accounting methodologies necessary to identify, capture and protect their organization’s intangible assets.  Without such infrastructures, which are known generally as “intellectual asset management” systems, it is virtually impossible to accurately assess an organization’s entitlement to tax credits associated with Continue Reading →

How the Northeastern Indiana Amish Serve as a Business Lesson about Patents

I have been spending time in Northeastern Indiana–the land of my roots–to introduce my children to their aunts, uncles and many, many cousins.  Catching up with extended family has made it difficult to formulate a post in the past couple of weeks, but I have a few moments this morning and wanted to capture a thought that has been rattling around in my head since I arrived here. Anyone who has spent time in this part of the U.S. will be familiar with the presence of the Amish as part of the cultural landscape.  My children, as city kids, are fascinated whenever they see a carriage with families traveling along the side of the roads.  However, I invariably consider about how stifling I would find it to not be able to interact with the outside world in the way that is familiar to me.  In short, I wonder what it would be like not to be able to be part of the modern world and immediately subtract all of this from my “happiness quotient”, which is the same view I have held of the Amish lifestyle since I was a child. Earlier this week, I was sitting with my uncle, Continue Reading →

Much Ado About Patent Marking: Why It is So Hard for Corporations to Get It Right and Why False Marking Lawsuits Might be a Good Thing Overall

It is fairly rare for patents to make hit the radar screen of mainstream news outlets but, recently, there has been much space allotted to the issue of patent mis-marking and lawsuits being brought by third parties for “violation” of the law requiring that products cannot be marked with an incorrect patent number.  Indeed, the usually substance-free local paper in my mother’s Southwest Florida community reported about the flood of patent mis-marking lawsuits.  And, it is no wonder that the undoubtedly arcane issue of patent marking has reached the status of “news” in a small-town paper given the huge number of cases currently pending in the federal courts.  It seems as if patent marking litigation may be the new business model for trial lawyers who are looking for a new “gravy train” to extract substantial legal fees from corporations whose activities violate the letter (but not necessarily the spirit) of the law. First, an explanation:  U.S. patent law expressly dictates that products should be marked with the number of patent(s) with claims that cover that same product.  If one does not mark the product, the patentee cannot obtain damages for infringement that occurs either prior to its giving “actual notice” Continue Reading →

Innovation Professionals–Take Charge of Patents to Ensure ROI of Your Efforts (includes a case study)

Recently, I have been spending considerable time working with innovation professionals to demonstrate the value-creation opportunities available by embracing IP strategy as an aspect of their processes, and why patent drafting should be an aspect of their roles and responsibilities.  More specifically, my efforts have focused on why and how patents matter to the ROI of corporate innovation today.  Most business people would likely acknowledge that patents are important to protect their products from competition, however, the vast majority of the innovation professionals whom I meet have no idea how critical patent strategy can be to the success of their business plans. Modern innovation processes typically start with identification of a consumer need or the like.  In so doing, the innovation team undertakes detailed research to draw dimension around a product that will solve this consumer need.  This research will be directed toward identifying the multiple ways the consumer need can be addressed.  For a number of reasons–some of which will be related to specific competencies of the company–only one of these ways will be selected as the go-to-market product strategy.  By the time the product is fleshed out, these myriad alternative ways to solve the consumer need will be Continue Reading →