By August 16, 2009, the Federal Trade Commission (FTC) and the U.S. Department of Heath and Human Serivces (DHHS) are expected to issue interim final rules that establish new federal notification requirements for security breaches involving protected health information and personal health records.  Although many states currently have security breach notification laws, these new regulations will establish a federal standard for the health care industry, and they will cover certain entities who are not currently subject to the requirements of the Health Insurance Portability and Accountability Act of 1996 (HIPAA).

Sharon Klein and Rebekah Monson of Pepper Hamilton have detailed the upcoming requirements in an article published in the June 2009 issue of the Privacy & Data Security Law Journal.  As they explain in the article, so far:

  • the new requirements arise from the Health Information Technology for Economic and Clinical Health (HITECH) Act of February 2009;
  • in April 2009, the DHHS issued guidance that describes the HITECH Act’s breach notification requirements for HIPAA-covered entities and their business associates, as well as notification requirements under proposed FTC regulations for vendors of personal health records and other non-HIPAA covered entities;
  • also in April 2009, the FTC proposed regulations covering breach notification requirements for personal health record vendors who are not covered by HIPAA.

The full article, with more details about the proposed FTC rules and DHHS guidance, is available here.

Today the U.S. Court of Appeals for the Federal Circuit re-ignited the long-running saga regarding the legality of the USPTO’s proposed limits on claims and continuations in U.S. patent applications. 

The USPTO originally proposed the rules in 2007, and a summary of the proposal is available in a previous post on this site.   In a 2008 opinion, the Eastern District of Virginia enjoined the rules on the basis that they were substantive, and not merely procedural, because they altered rights given to applicants under the Patent Act.  In March 2009, the Federal Circuit overturned the District Court’s decision and upheld many portions of the USPTO’s proposed rules (see Tafas v. Doll).

Today, July 6, 2009, the Federal Circuit agreed to rehear the case en banc.  Thus, the Court vacated its March 2009 decision and re-opened the appeal in Tafas v. Doll.   The parties’ first round of briefing the revived appeal will begin August 6, 2009.

Last week a committee assembled by Chief Judge Paul Michel of the U.S. Court of Appeals for the Federal Circuit released a set of model jury instructions for patent infringement cases.  The instructions have not yet been officially endorsed by the Federal Circuit or any other court, but instead “are intended to provide a simple and easy-to-understand set of model jury instructions that will be helpful to judges and lawyers across the country.”

The model instructions address many items that are unique to patent cases, such as:

  •  What is a patent and how is one obtained?
  • A glossary of patent terms
  • Various instructions relating to types of infringement (direct, indirect, inducement, contributory infringement, means-plus function claims, and more)
  • Various instructions relating to invalidity (including best mode, enablement, anticipation and obviousness)
  • Various instructions relating to damages (including lost profits, and a definition of “reasonable royalty”)

The complete model instructions are available at www.nationaljuryinstructions.org

The National Patent Jury Instructions Project included members of both the bench and bar:  Kenneth C. Bass III, Donald R. Dunner, Pamela Banner Krupka, Judge Roderick R. McKelvie, Teresa Stanek Rea, Edward R. Reines, Judge Patti B. Saris, Judge John T. Ward, and Judge Ronald M. Whyte.

Special thanks to my partner Josh Slavitt for the information for this post.

I recently had the opportunity to read Robert Plotkin’s new book, Genie in the Machine.  Patent attorneys, inventors and current patent laws have long considered “invention” to be an activity that is performed by humans.  For example, Section 101 of the U.S. Patent Act states:

Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor.

Section 115 of the Patent Act states:

The applicant shall make oath that he believes himself to be the original and first inventor of the process, machine, manufacture, or composition of matter, or improvement thereof, for which he solicits a patent.

In The Genie in the Machine, Plotkin asks how patent laws may treat an invention that is conceived by a computer, if the human operator merely presents the computer with a problem to be solved.  In other words, who is the inventor –  and should we award a patent to the invention  — if the human merely presents a “wish”, and the computer generates the invention based on that wish? 

The new book explores developing technologies — such as Stephen Thaler’s “Creativity Machine” — that automate many of the activities that are normally associated with invention.  It raises interesting questions about our concept of invention, and how that concept may change in the future.

Beginning Saturday, June 13, 2009, the Facebook social networking site will allow its members to create customized URLs for their Facebook home pages (e.g., www.facebook.com/username).

Trademark owners may register their trademarks with Facebook to prevent the marks from being used in custom usernames.  To register your trademarks, Facebook’s registration form is available here.  For more information, Facebook’s FAQ site is available here.

When a patent, copyright, or trademark holder wins a judgment for infringement of that IP, and the court awards extra damages because the infringement is willful, the judgment could be at risk if the infringer enters into bankruptcy.  A recent article by my colleagues Mike Reed and Tony Lovensheimer explains that when determining whether to discharge a willful infringement judgment in bankruptcy, the court examines not only whether the infringement was willful, but also whether the infringement was malicious.  These standards are not necessarily the same as the standard that applies to willfulness under intellectual property laws.  As the article explains: (more…)

The U.S. Court of Appeals for the Federal Circuit and the U.S. District Court for the Central District of California recently issued two decisions that patent owners should consider when licensing their patents to others.

In the Federal Circuit decision, Corebrace LLC v. Star Seismic LLC, the Court considered whether a license to “make” a patented invention inherently includes the right to have the invention made by a third party contract manufacturer.  License agreements are typically interpreted under state law, but the Court found no precedent in the jurisdiction (Utah) governing the contract.  So, the court looked at its own precedent, along with that of state courts in California, and determined that

a “have made” right is implicit in a right to make, use and sell, absent express contrary intent.

In the C.D. California decision, Ronald A. Katz Technology Licensing v. Earthlink, the defendant (Earthlink) had purchased interactive voice response services from a third party (West).  The services were covered by a patent, and West was a licensee of the patent holder (Katz).  Katz sued Earthlink for patent infringement, arguing that Earthlink was not a licensee, and that West’s license did not cover West’s customers.  Earthlink argued that the doctrine of patent exhaustion applied, and that when West received the license, Katz’s rights were exhausted. 

The court agreed with Earthlink and held that the doctrine of patent exhaustion applies to services:

once a patented service is lawfully sold, . . . the patentee should [not] be able to prevent the purchaser from enjoying the use of the service.

However, the court denied Earthlink’s motion for summary judgment, noting that an issue remained as to whether West’s service “embodied the essential features” of the patented invention (thus triggering exhaustion), or whether Earthlink provided some of the essential features itself.

Today the U.S. Supreme Court granted a petition for certiorari in the appeal of In re Bilski, the 2008 Federal Circuit opinion which altered the standard for patentability of processes under U.S. patent law. 

In Bilski, the Federal Circuit rejected previous caselaw stating that a process could be patented merely because it produced a “useful, tangible and concrete result.”  Instead, the Court held that a patent-eligible process must satisfy the “machine or transformation” test, meaning that the process must be either (i) tied to a particular machine, or (ii) transform a particular article into a different state or thing.  Additional detail about the Federal Circuit’s Bilski opinion is available here.

In their petition, co-appellants Bernard Bilski and Rand Warsaw asked the Supreme Court to determine whether the Federal Circuit erred in holding that a process must be tied to a particular machine or apparatus, or else transform a particular article into a different state or thing, in order to be eligible for patenting.

The use of an automated system to obtain personal data about Facebook members not only violates Facebook’s terms of use;  it also may constitute copyright infringement, according to a recent decision from the US District Court for the Northern District of California. 

In Facebook, Inc. v. Power Ventures, Inc. (N.D. Cal. 5/11/09), the defendant operated Power.com, a website that allows users to aggregate their data from various social networking sites into one location.  (more…)

Gene Quinn of IP Watchdog has compiled a list of 50 top blogs that discuss patent issues.  He is hosting a quick two-question survey that allows readers to vote for their favorites.

To take the survey and vote for your favorite patent blogs, click here.

To read Gene’s insightful IP Watchdog blog, click here.

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