President Obama finally signed the long-debated patent reform bill (Leahy-Smith America Invents Act) into law last month, after seven years of failed Congressional attempts at reforming the patent system.  The bill hopes to reduce patent litigation costs, provide greater certainty to patent owners, increase efficiency at the USPTO, and limit the powers of patent trolls, which are companies whose sole purpose is to buy patents and sue others without making any tangible product themselves.

Here are some notable changes to the current patent law:

First to File Wins: The law will switch from a first to invent system to a first to file system for patent applications filed on or after March 16, 2013.  If the inventor makes certain public disclosures, then he will have a one year grace period to file the patent application.  This change puts us in-line with the patent laws of many other countries, which also use a first to file system. As a corollary, this removes the complex “interference proceedings,” but has spawned “derivation proceedings” to handle disputes.

In this change, the key dates are actually the inventor’s filing date OR the inventor’s earlier public disclosure date.  If the inventor discloses first then files within a year, the patent actually goes not to the first to file, but to the first to publicly disclose.

Overall Fee Increase: The law provides for a 15% increase in a lot of USPTO fees as of last month.

Smaller Fees for Micro Entities: The law provides for a micro entity status, which allows for a 75% discount on USPTO fees. You have to qualify first as a small entity, the inventor cannot have more than four previously filed patent applications, and the applicant’s gross income must be less than the designated level.

Prioritized Examination: For about $5,000, you can have the option to have your patent examined ahead of other applications.

More Satellite USPTO Offices: The law authorizes the USPTO to open more satellite offices through the country. The USPTO previously announced plans to open one in Detroit.

New Good Faith Prior Use Defense: The law creates a new defense to patent infringement.  There is no infringement of a patent if the subject matter was a process, machine, manufacture, or composition of matter that was used in good faith commercially in the U.S. at least one year before the effective filing date of the patent of public disclosure of the invention.  This defense only applies to patents issued after September 16, 2011.  This defense cannot be assigned to another entity but does extend to customers through the application of the patent exhaustion doctrine. Basically, innocent infringement done in private, under certain circumstances, will not be penalized.

No More Best Mode Defense: The law removes the best mode defense to patent infringement. An inventor is still required to set forth the best mode to obtain the patent, but failure to do so is no longer a basis for invalidating or rendering an issued patent unenforceable.  Of course, this is only effective after the filing date.

Willful Infringement: The law states that failure to obtain an opinion of counsel regarding patent non-infringement cannot be considered when determining a finding of willful infringement.

Posted: 10-6-2011

 

As a consumer, I love deal sites such as Groupon or LivingSocial. In fact, most people I know are hooked! According to most consumers, these sites are a win-win situation for the consumer and the business. Consumers buy great deals, and businesses use this marketing tactic to reach many people, spread their name, and make a profit.

A recent article in USA Today presents a different side to this picture. For small businesses, these deal sites can do more harm than good. Although these sites offer small businesses great exposure, they also bring to them customers who are not looking to pay full price for services or products. Providing deals through these sites also means splitting approximately 40% of the revenue with them. So, at the end of the day, a small business ends up sharing what they earned and struggling to make profit.

The article continues to offer small businesses some great suggestions to help them profit from dealings with these sites. Although the suggestions are great, they too have their disadvantages. For instance, offering more experience-oriented deals than products may help businesses profit since they do not have to pay for goods. The other side to that is that people buy more goods than services on a daily basis. Therefore, it is likely that a business will sell less of the experience-oriented deals, making less of a profit after splitting the earnings with the site.

Another interesting suggestion was to accumulate the contact information of the customers who frequently buy your deals, and market to them separately based off of what deals they looked at. The problem here is that a lot of people do not like targeted marketing efforts because “it freaks them out.”

A perfect example of this is the reaction to targeted online marketing efforts. When people found out that companies were buying information from certain browsers that track a person’s search history, so that companies can provide targeted ads on the side while a person surfs online, they were angry. Many felt that their privacy was being invaded because information regarding their search history was being tracked and sold to companies. Others felt annoyed having items they had previously viewed pop up on the side while they surf the net. Overall, people did not like the idea of being “watched while online” so that companies can learn what they looked at, and then target their ads accordingly.

Similarly, many may feel annoyed knowing that businesses are personally targeting them based on what deals they looked up online. After all, people are becoming very sensitive to keeping their online activity private. One thing businesses should remember is that the key to building a loyal following is not be to make people feel as if their online search history is being tracked and used for the business’s advantage.

Of course, the suggestions in the article, being some amongst many, do provide practical solutions to the issue that small businesses face with these deal sites. It is just important to look at all suggestions and solutions objectively, and see if it works for your business.

As a last resort, even in the age of the internet, one of the most effective marketing strategies is still word of mouth. Perhaps businesses should not lose faith on the power of having others spread your name for you. Perhaps online deal sites should be an alternative resort to the good-ole-fashioned technique of spreading your business’s name one person at a time.

By: Neha Sareen

https://arilaw.com/2011/10/06/online-deal-sites-yay-or-nay-for-small-businesses/

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