Ernest's 3/21 presentation for Mobile March 2013

1. ip crash course for
mobile startups:
a practical approach
ernest grumbles
adams monahan llp
3.21.2012

3. start with hardware

4. then the software…

5. how about interface design…

6. or interface functionality
(Apple multi-touch patent app…)

7. a method of location-based messaging
(MS patent)

8. brands….

9. attachments….

10. what is ip?

11. ip types
 patent
 tradesecret
 trademark
 copyright

12. 9 things about patents

13. patents-#1
what?
 exclude others from use of an
invention.
 reward inventors for a limited
period
 all countries have patent systems

14. patents-#2
why?
 market exclusivity
 strategic tool against competitors
 Licensing
 value in business – “patent pending”
 investment, acquisition

15. patents-#3
examples

16. patents-#4
process
 identify inventions
 maintain secrecy
 gather information and prepare an
application
 file with the pto
 hang on the wall

17. patents-#5
time to get
 18 months to 5 years from filing of
application.
 length varies by technology
 software patents – up to 5 years
 Claims may never issue.

18. patents-#6
cost
 $500 to $5000 for provisional application
 $4000-$18,000 for non-provisional
application
 depends on technology, business goals
and timing

19. patents-#7
duration
 20 years from filing
 once it dies, it’s dead
 but:
 continuation-in-part applications

20. patents-#8
enforcement/defense
 search before new tech release
 patent litigation ain’t cheap
 $3 million in fees/costs would be a good
deal for an active case
 cases can last 2-5 years

21. The
Moile
Patent
Wars
2011

22. patents-#9
best practices
 do you know your IP?
 does the company own the ip??
 what tech drives revenue?

23. patents-#9….
best practices
 confidentiality
 provisional = quick “patent pending”
 periodically review R&D

24. philosophical interlude:
choose one -
* patents rock!
* patents s-ck!

25. 9 things about trade secrets

26. trade secrets-#1
what?
 confidential information that has value
from not being generally known
 protection only as long as secret kept –
like the Coke formula
 statute (like Uniform Trade Secrets Act)
and contract

27. trade secrets-#2
why?
 value in business – proprietary
formulas/processes
 preserve market advantage
 keep secret forever – can’t with patents
 preserve patentability of inventions

28. trade secrets-#3
examples
MARKET PLANS,
FINANCIALS,
SUPPLIER LISTS,
CUSTOMER LISTS

29. trade secrets-#4
process
 maintain secrecy of data
 identify inventions
 control access
 consider a log

30. trade secrets-#5
time to get
 you own as soon as you create
 no formal filing process

31. trade secrets-#6
cost
 cost of development
 cost of maintaining secrecy

32. trade secrets-#7
duration
 perpetual – if it can be maintained
as such
 coke formula
 the rabbit has to stay in the hat

33. trade secrets-#8
enforcement/defense
 when to sue?
 complex litigation
 often bundled with employee-related
disputes (coke-pepsi)
 injunctions…!
 costs - $400k-$3 million

34. trade secrets-#9
best practices
 confidentiality policies (“CP’s”)
 use NDA’s when possible
 mark “confidential” materials as
such
 protect sensitive materials (or
facilities)

35. 9 things about trademarks

36. trademarks-#1
what
 exclusive use of brand for specified
goods or services
 rights based on use in the marketplace
 U.S. federal and state level (statutes and
common law)
 all countries have trademark systems

37. trademarks-#2
why
 market exclusivity for brands – unique
association
 promote customer loyalty (TONY THE
TIGER)
 prevent customer confusion
 strategic tool against competitors
 build value in business – ®

38. trademarks-#3
examples
 word mark: EXXON
 stylized word mark:
 design mark: TONY THE TIGER
 color: yellow for sticky note pads (“Post-
Its”)
 product shape: the Coke bottle

39. trademarks-#4
process
 identify brands (incl. future brands)
 evaluate market significance/strength of
mark
 search!
 federal v. state
 file application
 prosecute to registration

40. trademarks-#5
time to get
 common law – rights upon use
 federal registration process - can
take 18 months
 state registrations – much quicker

41. trademarks-#6
cost
 trademark search - ~$700
 U.S. tm app. - ~$1000 (single class).
 up to $2K in additional prosecution costs
 state tm’s – much cheaper
 foreign applications - generally more

42. trademarks-#7
duration
 perpetual???
 registrations indefinitely renewable
 STELLA ARTOIS – claims rights back to
1366
 when marks die – ASPIRIN, ZIPPER,
DRY ICE, ESCALATOR (generic terms)

43. trademarks-#8
enforcement/defense
 sue for likelihood of confusion
(similar mark on similar goods)
 trademark litigation ~$400K-$2M.
 most disputes settled
 cases can last 1-3 years.

44. trademarks-#9
best practices
 communicate with
marketing/product teams on brands
 search before you sell!
 prioritize revenue-driver brands

45. trademarks-#9
best practices
 file Intent to Use (ITU) applications
for quick protection
 maintain uniformity of use
 enforce rights

46. copyrights
 protects writings/images/sounds
 inexpensive to register
 protection lasts over 100 years

47. copyrights, cont….
 register soon after public release
 protected by U.S. statutes
 good for company code, manuals,
images
 litigation – not cheap

48. copyrights: best practices
 use stuff you own or have licensed
(incl. creative commons)
 make sure you own stuff you’re
paying for – images, code, narrative
(agreements!)
 use Copyright Office process for
source code registration

49. the end
egrumbles@adamsmonahan.com
www.ernestgrumbles.com
651.491.3643