Litigating the Business Method Patent: Pitfalls for Unwary Defendants
August 31, 2006
The lion's share of business method and e-commerce patents is grouped in the now infamous Class 705 at the U.S. Patent and Trademark Office ('USPTO'). This specialized class that encompasses data processing involving financial, business practice, management, and cost/price determination has experienced a surge in popularity rivaled only by the likes of nanotechnology. From 2001 to 2005, more than 5000 U.S. patents were issued in Class 705. Growth in 705 patenting has been so pronounced that this 5-year period has produced about the same number of new patents as the previous 15-year period.
The Computer Fraud and Abuse Act
August 31, 2006
In a recent decision written by Judge Richard Posner, The United States Court of Appeals for the Seventh Circuit determined that the Computer Fraud and Abuse Act (CFAA) may be used to bring a private cause of action against a former employee who permanently erased confidential data from his company-issued laptop before returning it to the company. <i>International Airport Centers, L.L.C. v. Citrin</i>, (Slip Op.) No. 05-1522 (7th Cir. March 8, 2006). In so holding, the Seventh Circuit has joined the current tide of federal courts that have permitted companies to use the CFAA as a means with which to defend themselves against the malicious and competitive acts of departing employees.
IP News
August 01, 2006
Highlights of the latest intellectual property news from around the country.
Use It or Lose It: Can Residual Goodwill Avert Abandonment?
August 01, 2006
The notorious legal battle over the right to use the MUSTANG RANCH trademark for legal brothel services illustrates the 'use it or lose it' adage as applied to trademark rights and the difficulty of establishing an excuse for nonuse. <i>Burgess v. Gilman</i>, 78 U.S.P.Q.2d 1773 (D. Nev. 2006). Because U.S. law does not permit the warehousing of trademarks, the owner of a trademark typically must use the mark in commerce or lose the ability to prevent others from using it. For this reason, '8 of the Lanham Act requires trademark owners to file a declaration of use between the fifth and sixth year after registration and with renewals. 15 U.S.C. '1058.
Patent Injunctions: Quo Vadis ' What Is the Expectation of a Patentee After eBay?
August 01, 2006
Whither goest thou?' Or, in plain English: Where are you going? That is the question that must be asked of the courts in the wake of the Supreme Court's recent decision in <i>eBay, Inc., v. MercExchange, LLC</i>, 126 S. Ct 1837 (2006), in which the Court reversed the long-standing practice in the Court of Appeals for the Federal Circuit (the 'Federal Circuit') of granting permanent injunctions in patent cases absent a persuasive reason for not doing so.
IP News
June 29, 2006
Highlights of the latest intellectual property news from around the country.
Patent Quality Improvements in the Works at the USPTO
June 29, 2006
In its ongoing efforts to improve the examination of software patents and resolve continued concerns over their quality, the U.S. Patent and Trademark Office ('PTO') has partnered with IBM, Open Source Development Labs ('OSDL'), and the open source community to try and achieve this goal. Among the proposals is the idea of establishing a searchable database containing an index of open source computer code. This database should make it easier for software code developers and patent examiners to locate relevant prior art.
Do Keyword Search Terms Constitute 'Use' of a Trademark?
June 29, 2006
It has been judicially noted that '[t]he Court must avoid excessive rigidity when applying the law in the Internet context because emerging technologies require a flexible approach.' <i>Edina Realty Inc. v. TheMLSonline.com</i>, D. Minn., No. 04-4371, March 20, 2006, <i>citing Brookfield Commc'ns, Inc. v. W. Coast Entm't Corp.</i>, 174 F.3d 1036, 1054 (9th Cir. 1999) (4 ECLR 384, May 5, 1999). Recently, conflicts involving one of the emerging Internet technologies, namely sponsored online key word advertising, have yielded, not only judicial flexibility, but also a fair amount of ambiguity in applying the laws of trademark infringement in Internet advertising contexts. Two recent federal district court decisions on the issue ' <i>Edina Realty v. TheMLSonline.com</i>, D. Minn., No. 04-4371, March 20, 2006; and <i>Merck & Co. Inc. v. Mediplan Health Consulting Inc. d/b/a RXNorth.com</i>, S.D.N.Y., No. 05 Civ 36550, March 30, 2006 ' illustrate the current legal muddle in their diametrically opposite conclusions on the threshold question at the heart of each analysis: Does the purchase and use of key word search terms constitute 'use' of a trademark under the Lanham Act?
