Senator to Shield Banks From Patent Lawsuit

Senator Jon Kyl, a member of the Senate Judiciary Committee, is pushing for legislation that would protect banks from a patent infringement lawsuit.  As reported by CNNMoney.com, the suit is related to electronic imaging and the processing of checks.  While the Judiciary panel is scheduled to look at a patent reform bill today, it’s been hinted that if Kyl has his way, banks would be shielded from having to shell out money for damages in any possible cases.

The plaintiff, DataTreasury Corp., owns a patent for digital check processing, and is currently suing Bank of America and Wells Fargo & Co.  Some banks, such as JPMorgan Chase & Co., have already settled with DataTreasury.

Banks moved toward the digital processing and imaging of checks in 2003, after Congress passed a law that encouraged them to do so.  Furthermore, a recent report by the Congressional Budget Office found that DataTreasury could be entitled to $1 billion or more in patent royalties if it succeeded in its litigation efforts.

This isn’t the first proposal of this type to be suggested, as Sen. Jeff Sessions offered a similar proposal last year.  However, Sessions’ proposal came under fire because it targeted ongoing litigation, and Sessions also owned stock in two banks that could have gained from the provision.

Senator Kyl’s bill differs from Sessions’ because it does not completely protect the banks.  Instead, Kyl’s plan contains a clause that would void the provision if a federal court finds that the legislation amounts to a government taking of DataTreasury’s patent rights.

For the much troubled banking-system, this provision could potentially save a lot of trouble and capital.  But would passing this legislation set a dangerous precedent?

Microsoft, TomTom End Legal Dispute

The high-profile legal dispute between Microsoft and TomTom has reportedly come to an end.  Although specific terms of the agreement were not disclosed, TomTom will pay Microsoft for coverage under its patents, and Microsoft will receive coverage under four TomTom patents as well, reports MarketWatch.

The dispute originated in February, as Microsoft filed suit against TomTom, alleging that the GPS maker was infringing on eight of its patents related to car-navigation.  TomTom countersued soon after, stating that its intellectual property was being infringed by Microsoft.

Shortly after filing their countersuit, TomTom joined the Open Invention Network, an organization that accumulates defensive patents in order to protect Linux from patent infringement lawsuits.  This maneuver led many to believe that there might be a bigger fight on the horizon between the Open Invention Network and Microsoft.

Yet, this agreement has quieted any such conflict.  In addition to paying Microsoft, TomTom has also agreed to remove some of its functionality related to file-management system patents within two years.  Also, TomTom’s coverage for Microsoft’s patents is designed to be compliant with the free software-licensing system adhered to by open-source providers.

USPTO & Copyright Office Seek Public Comments

The Copyright Office and the U.S. Patent and Trademark Office are seeking comments on the topic of facillitating access to copyrighted works for “blind or persons with other disabilities.”  These comments are thought to be in connection with a forthcoming meeting of the standing Standing Committee on Copyright and Related rights of the WIPO.

Those that are interested are urged to submit a comment on the topics outlined in the supplementary information section of the Federal Register notice.  Comments are due April 21, 2009, with reply comments due May 4, 2009.

In addition, there will be a public meeting on May 18, 2009, at the Library of Congress in Washington, D.C.  The process for submitting requests to attend, or to participate in the meeting, will be published on www.copyright.gov no later than April 8.

Combination Products Need Careful Patent Strategy

As health care products continue to evolve in the 21st century, combination technologies are becoming more and more common.  In fact, the market for combination products has doubled in five years and some have predicted the industry will rise to $10 billion this year.  While 90% of that total can credited to the sales of drug-eluting stents, plenty of other products, such as orthopedic implants to regenerate bones, are coming out of the woodwork.

These facts set the stage for an interesting article that recently appeared on Mass High Tech.  Author and patent attorney, Joanna Toke, argues that these combination products face unique hurdles in entering the marketplace, and mastering a patent and regulatory strategy is necessary for success.  She has outlined a step by step process that every company should follow when developing one of these products, and we will discuss the highlights of her article.

First, a company must have comprehensive patent coverage to protect their technology.  This means coverage of the device, the biologic, and the device/biologic combination.  Then, once improvements to the technology are made, a company should also make it a goal to also patent those improvements in order to completely insulate their technology.

Next, Toke states that picking the right law firm is critical, as they must have experience in both biologics and medical devices.  Knowledge of both fields is necessary as the firm needs to effectively prosecute patents directed toward each aspect of the product.

Then, the attorneys should conduct a search to determine whether the company is free of third-party patents and can practice its invention.  Once this search is completed on every aspect of the device, the product can be designed to avoid infringing other discovered patents.

Finally, when a product is submitted to the USFDA for approval, it is assigned to a particular center within the FDA.  But inventor beware, as products may be wrongly assigned to unfavorable offices.  Therefore, companies should explain why the combination product should be sent to a particular destination in order to avoid costly delays.

While this definitely not every step that a company must take to ensure that their IP is protected, Toke’s article is definitely a start in the right direction.

Patent Hints at Biometrics, Jailbroken iPhones

In a recent patent filed with the U.S. Patent and Trademark Office, Apple addressed several new methods that could help improve security on the iPhone.  As reported by Endgadget, the filing cites new biometric authentication to unlock an iPhone, rather than normal methods.

Some of these new biometric methods that could entail and iPhone containing a hidden sensor behind the screen that would recognize the user’s fingerprint.  Also, a front-facing camera could be used for retinal recognition.  Finally, the filling also puts forth the possibility of iPhones recognizing their user’s voice, as well as collecting DNA samples for recognizing a genetic code.

However, this particular patent came under fire when it was discovered that one of the drawings of the iPhone included some interesting applications.  In fact, the applications that were included are only available by “jailbreaking” an iPhone, or loading applications that are not approved by Apple.

While some think that this jailbroken iPhone was included on purpose, that may not be so.  The application does not reference jailbroken iPhones, and Apple maintains that the act of jailbreaking an iPhone is illegal.  It’s safe to say that Apple’s lawyers will have some explaining to do.

Oracle & Alcatel-Lucent Settle Litigation

The patent infringement lawsuit surrounding Oracle and Alcatel-Lucent has now come to an end.  As reported by the Daily Herald, Oracle had sued Alcatel-Lucent in May, claiming that their OmniTouch My Messaging system infringed on Oracle patents.  Although terms of the agreement are confidential, one can safely assume that the agreement pleased both parties, as Alcatel-Lucent had countered the suit by claiming that Oracle’s patents were invalid.

The dispute started in December 2007, when Alcatel-Lucent wrote a letter claiming that Oracle’s Data Mining, E-mail Center, Data Guard and other products infringed on their patents.  Since then, 13 patents have come into question, five of which belong to Oracle, and seven to Alcatel-Lucent.  The last patent is the property of Siebel System Inc., which was acquired by Oracle in 2005.

The case was ordered closed on March 26, by a California district judge.  While Oracle was not available for comment, Alcatel-Lucent stated that they were “glad to put this matter behind us.”

Apple Named in Two New Lawsuits

As if the lawyers for Apple weren’t already busy enough, Affinity Labs of Texas LLC has accused the company of infringing on three patents.  The patents are titled “System and method for Communicating Selected Information to an Electronic Device,” “Audio System and Method,” and “Content Delivery System and Method.”  According to Ars Technica, Affinity Labs claims that these patents cover buying songs from the iTunes store, and downloading songs from iTunes onto an iPod or iPhone.  It is also claimed that these patents cover playing digital audio on an iPod or iPhone with external speakers.

Before reacting to this news, it should be mentioned that the lawsuit was filed in patent infringement-friendly Eastern Texas.  Also, the patents seem to be a bit broad, since it seems as if they would apply to every audio device that plays digital audio.  Affinity Labs has similar suits pending against car manufacturers, in which the defendants have filed countersuits.  Can you say “patent troll?”

Accolade Systems LLC has also named Apple in a lawsuit, after it named Micron and Aptina as defendants as well.  Accolade claims that their patent, “Method and Apparatus for Detecting Camera Sensor Intensity Saturation,” is violated by Apple as the iPhone automatically adjusts the brightness of a screen based on surrounding light.  Other cellphones and products also have this feature, so it remains unclear as to why the suit is being launched against Apple.

While it seems as if Apple may be able to wiggle its way out of these lawsuits, Apple’s bottom line may be hurt as it still must pay money to defend itself.

Senators Urge Compromise on Patent Reform

As you may or may not know, Congress is currently debating a bill that would overhaul the patent system in the United States.  However, some leading Senators have implied that compromise is necessary for the bill to be passed.  As reported by Reuters, Senator Orrin Hatch said, “I don’t believe we’re there yet.  It entails no one side getting everything it wants.  There’s no way we’re going to be able to please everybody with this bill.  We all know it.”

Right now, the bill would reduce damages for infringement as well as make it harder for plaintiffs to to find an infringement friendly court.  Also, the bill would now require some granted patents to be be reviewed, as requested by the director.  However, the issue of reducing damages has been the biggest stumbling block so far.

The reason this issue is such a point of contention is due to the opinions of different industries.  High tech companies tend to favor the potential changes of the bill, because it would limit and possibly reduce the amount of litigation.  On the other hand, smaller tech firms and big drug companies oppose these changes on the grounds that they will weaken their patent protections and portfolios.

Sen. Dianne Feinstein said, “Any changes in the patent system could have major unintended consequences.”  If nothing else, one can deduce that it may take a while before any significant reform bill is passed.

Apple Patents Laptop Handles

Is it possible that Apple finally got tired of having third parties make attachable handles for their laptops?  Or, is Apple ready to shed its customary “thin and sleek design?”  While the former seems a lot more probable than the latter, this debate recently arose with the filing of a new Apple patent.

As reported by Cult of Mac, Apple was recently granted a patent for a handle with an integrated heat pipe.  The patent application states that as designs for computers become more compact, “managing thermal loads in integrated circuits becomes more challenging.”  Thus, not only will this handle be used to carry the computer, it can help dissipate the heat the builds up inside the computer.  It is stated that this solution might actually work better than using a fan, as fans may significantly lower battery life as well as increase the noise level.

An example of an Apple computer that actually contained a handle was the iBook G3 Clamshell.  Unfortunately, the handle was removed on later models.  However, one must wonder if the handle is used to dissipate generated heat, will their laptop literally be too hot too handle?

Exploding iPod Results in Lawsuit

Apple has recently been named in a number of lawsuits, most of them touching on patent infringement.  But one lawsuit strays from this topic, as according to CNET News, the mother of a 15-year-old boy is suing Apple after an iPod Touch exploded in the boys pants, burning his leg. 

According to the complaint, the boy “realized his Apple iTouch had exploded and caught on fire in his pocket….[he] immediately ran to the bathroom and took off his burning pants with the assistance of a friend.  The Apple iTouch has burned through the plaintiff’s pants pocket and melted through his Nylon/Spandex underwear, burning his leg.”

The exploding iPod Touch supposedly gave the boy second-degree burns, and $225,000 is being sought in compensatory and punitive damages.  Yet, many more facts must come to light before it is known exactly what happened to that particular iPod Touch.

There have been previous cases where mobile devices have caused similar injuries due to explosions.  The causes of those explosions can normally be attributed to faulty batteries added by the user.  But, the iPod Touch’s battery is not replaceable by the user.

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