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The U.S. Patent and Trademark Office's fiscal year 2009 annual report indicates declining revenue and patent filings. Notably, there was both a dip in the backlog of patent applications and an increase in the time it takes for the agency to issue a patent. Some lawyers believe the former can be attributed in part to applicants abandoning applications because of the economic downturn.

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In-house lawyers can do great good for their companies by deploying IP assets to realize direct monetary return for their companies, but they are under more pressure to reduce expenses because of the inaccurate perception that IP-related expenses do not add to the bottom line, a perception that stems from accounting conventions.

The USPTO recently announced that it would implement internal changes to RCE docketing on Nov. 15, 2009, and will implement internal changes to the examiner count system by early 2010. These changes may significantly delay further examination of an application in which a RCE is filed, and consequently the ultimate issuance of a patent. To mitigate the effects of these changes, patent applicants may need to alter patent prosecution strategies going forward.

In a move signaling a heightening of evidentiary scrutiny for patent infringement damage calculations, the Court of Appeals for the Federal Circuit, in <i>Lucent Techs. v. Gateway, Inc.</i>, vacated and remanded an almost $358 million award to Lucent based on Microsoft's infringement of U.S. Patent 4,763,356, entitled "Touch screen form entry system.

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When the New York Court of Appeals issued its decision in <i>Consolidated Edison Company v. Allstate Insurance Co.</i>, the issue of allocating liability for continuing losses among multiple insurers consecutively liable for the loss appeared to be all but settled. This approach to allocation has been called into question, however, by the recent decision of the Delaware Court of Chancery in <i>Viking Pump, Inc. v. Century Indem. Co.</i>

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Highlights of the latest franchising cases from around the country.

Features

While franchise disclosure documents and their attendant agreements are the "glue" applied to the initial franchisor/franchisee relationship, the question of "who constructed the paperwork" is both a touchy and legitimate concern for those immersed in the franchise industry.

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The American Arbitration Association is reporting that its pilot program to reduce commercial arbitration fees has been popularly received, and AAA is increasing its promotion of the new fee structure. The program began in July 2009 and has been utilized in 1,000 to 2,000 disputes to date, reflecting claims totaling nearly $3 billion, according to India Johnson, an AAA senior vice president. The number of those disputes related to franchising is unknown.