After several but sporadic decisions issued by the Supreme Court impacting the US patent system and years of debate about how the system should be improved, Congress recently passed the Leahy-Smith America Invents Act (HR 1249). The Act was signed into law by President Obama on September 16, 2011. The text of the Act can be found here.

The provisions of the new law have a variety of effective dates. Some of the changes take effect immediately. Fee increases will be instituted on September 26, 2011. Other changes will not be implemented until 2012 and 2013.

Many have argued that the patent reforms contained in the Act will hurt small businesses and individual inventors. Some of those concerns may be justified. But the overall impact of the Act will likely depend on a number of variables such as how an individual business operates and its relevant technology area and how the law is implemented and interpreted over time.

The Act includes a variety of patent reforms that may significantly impact start-ups. The list below is a sampling of some of the Act’s major changes.

(1) “First to File” replaces “First to Invent”

The Act changes the US from a “first to invent” to a “first to file” system (Section 3), thereby harmonizing the US with most other countries effective March 16, 2013.

Under the “first to invent” system, priority was given to the first inventor who invents the invention rather than whoever files a patent application first.

The new law gives priority to the “first to file” the patent application (unless the first filer derived the invention from another).

This reform is believed to motivate a “race to the patent office”, which many think will favor large companies with the resources to file an application quickly. This may be true in some cases but not all.

Who is slow-moving and has more “red tape”?

Consider the dynamics of large companies with layers of bureaucracy. Often, the process involves several steps: (i) the invention is conceived by a researcher or engineer, (ii) the idea is submitted to an invention disclosure database, (iii) an IP committee might meet monthly or quarterly to decide which inventions to protect, which applications to maintain, etc., (iv) if approved by committee, the invention disclosure is sent to an outside attorney or assigned to an in-house attorney for evaluation and drafting, and so on.

That’s not the case with all large companies and many will likely streamline their invention pipeline processes in view of the new reforms, but startups and small business can be much more nimble. Startups can get applications on file quickly and more cost effectively leveraging the knowledge and skills of the in-house inventors in the application process (e.g., see Have an Idea? What about a Patent? for some cost-effective tips).

Which companies are more equipped for $50-600K+ mini-trial proceedings?

Under the current “first to invent” system, disputes before the Patent Office are resolved by a patent interference which is an administrative trial proceeding by which it is determined which party was the first to invent.

An interference proceeding usually includes the presentation of motions with supporting testimony and documentary evidence, cross-examination depositions of fact and expert witnesses, and an oral hearing before a panel of three Administrative Patent Judges. An American Intellectual Property Law Association Survey reported that the mean cost of an interference through the completion of the preliminary motions phase was over $400,000, while the mean total cost of the entire interference was over $650,000.

In addition to the cash outlay for an interference, the ability to prove “first to invent” (e.g., “reasonable diligence”) often required devoting resources to producing documentation (e.g., signed notebooks, etc.) not always well maintained by independent inventors or small businesses.

Accordingly, the current interference system was not favorable to small business or individual inventors in view of the large costs involved.

However, interference proceedings under the pre-Act patent system were rare. And more often than not, the first to file prevailed in the interference proceeding – so in practice the new system may not change the outcomes of these disputes.

“First to File” a Mixed Blessing

Moreover, under “first to file” more prior art would become available as it narrows the applicability of the one-year grace period available under the pre-Act patent system. Under Section 5 of the Act, the patent statute is amended so only certain categories of art that are published or publicized during the 1-year grace period prior to the patent application filing date would not be deemed a bar to patentability. Under the Act, a prior art disclosure made within the 1-year grace period that was (i) derived from the inventor or (2) made public after the inventor publicized his invention will not create bars to patentability. It will be no longer be possible to “swear behind” all “prior art” effective March 16, 2013 and this will likely cause some inventions to be “made public” to create a grace period for the published invention.

Generally, “first to file” could favor nimble small businesses and individual inventors. As always, it will require cash and human resources, whether or not an applicant is rushing to the Patent Office, to file a patent application. Large companies have more resources, but small entities often have an edge on moving faster and more efficiently and will no longer face expensive interference proceedings.

(2) “Best Mode” disclosure requirement

Effective September 16, 2011, the Act eliminates “failure to disclose best mode” as an invalidity defense in infringement cases and a means to invalidate a granted patent in post-grant proceedings (Section 15). This provision does away with a costly issue in many litigation disputes and reduces some of the difficult tensions between trade secret laws and patent protection

(3) Expanded Prior User Rights

Effective September 16, 2011, the Act also expands “prior user rights” (Section 5) which not only provides a defense against patent infringement, but also makes trade secret protection a more viable option than patent protection in some cases.

Without “prior user rights” a trade secret user/owner faces the risk of being sued even by a subsequent patentee. For example, you may decide to keep your innovative process a secret, but someone else may later independently “invent” the same process and secure a patent. As “unfair” as it may seem, this subsequent patentee – under the old patent system – has grounds for suit.

With the Act’s implementation of “prior user rights”, it is now a defense to infringement if an accused infringer can show prior commercial use by clear and convincing evidence for at least 1 year before the effective filing date of the patent or before the date of public disclosure under Section 102(b).

The Act likely fosters an environment that favors trade secret protection (if an invention can be maintained as a trade secret and is not easily “reverse engineered”) since the prior user rights will provide a defense against infringement accusations by subsequent patentees. Moreover, trade secret protection lasts for as long as the invention is maintained as a secret, while patents expire (generally 20 years from the date the application was filed).

In the end, protecting innovations using trade secret law is less expensive compared to patent protection and thus levels the playing field between large and small companies in those industries where trade secret protection is an option.

(4) Post Grant Reviews, Inter-Partes Proceedings and other proceedings for challenging patents

The Act creates new procedures for challenging or amending a patent after issuance. In addition to traditional reissue and Ex Parte Reexamination proceedings, the Act provides for three new post-issuance procedures: (i) Post Grant Review, (ii) Inter Partes Review and (iii) Supplemental Examination. The new review procedures will be available starting in September 16, 2012.

One way of looking at this group of reforms is as a means for resolving issues or correcting mistakes as an alternative to litigation. For example, the post grant review forces the patent challenger to elect between using these administrative proceedings or taking a chance in a Federal district court. Any reforms that result in less court litigation generally helps startups since litigation costs are invariably high.

Conclusion

The 2011 Act is the most sweeping reform of the U.S. patent system since the last patent statute was enacted in 1952. This article only discusses a few of the many changes to U.S. patent law and other changes may have an impact on companies depending on the circumstances. The Act generally simplifies the patent process by removing issues often litigated and providing alternatives to District Court litigation. How the 2011 Act impacts an individual startup will depend on the startup’s internal resources, processes and technology focus.

About the Author: John Boyd is a partner at Rimon, PC, focusing on intellectual property matters. John is also the founder of MeetingWave.com (helps users meet new business contacts) and Vrfy.me (allows users to create verified profiles for safer online transactions).

If you liked this article, tell all your friends about it. They’ll thank you for it. If you have a blog or website, you can link to it or even post it to your own site (don’t forget to mention www.meetingwave.com as the original source).

Today’s business climate requires efficient execution and laser focus. Many out there are looking for new customers or new clients, yet competition is fierce and customers are reluctant to make changes that could disrupt their business or are also extremely frugal.

That is why it is critical to understand the customer’s needs and concerns. To learn this, you must ask a lot of questions and talk with them, preferably in a face-to-face meeting or Skype call for improved communication since email has its weaknesses. You can then leverage what you learn from one customer in your marketing and sales efforts with other new customers.

By better understanding their day-to-day business world and the issues they deal with day in and day out, you can provide a more compelling solution for the client. Ask them what they’d change at work? What they like about the current product or service they use? What they don’t like? Are there concerns about the costs for transitioning to your product or service? Who within the business uses the product/service? Who maintains it? Keep in mind the customer might not always know what he or she wants or needs, so pull information from the various employees at the customer to better understand their possible needs. They might be complacent and not aware of how your product or service could be adapted to improve their business.

So try to understand your customers and their business. Visit their office and see how they work. Try to meet with other employees in the business who would be impacted by your product or service. The people using the product/service are often not involved in the purchase but can provide insight and sometimes be the squeaky wheel for change.

The key is to understand as much about the customer as possible so you can provide a more compelling solution as a partner rather than a simple vendor. Helping them achieve their business goals will likely help you achieve your goals as well as will help secure this customer and connect with new customers.

If you’re new to town, in your first job, or ready to create a strong community of relationships, now is the time to start networking. It’s one of the most powerful business activities you can do. You have the desire, but your problem may simply be: where do I network? Even in the smallest city, there are going to be more opportunities than you can take advantage of. Here are six ways to find places to network.

Chamber of Commerce
Start with your local chamber of commerce. They are always dedicated to the success of their business community. Not only should they have a number of their own events including mixers and business seminars, but they should also know of local service clubs and associations. When you network with the Chamber, you’ll also meet people who are part of, and know of, other networking groups and activities. Your city many have several chambers of commerce because of specialty chambers such as hispanic, black, women’s, and asian chambers of commerce.

Local Paper
Pick up the paper every day for at least a month to check the business section for event listings. The calendar may not list events until the day of the event. You might not be able to attend that day, but take down group names and phone numbers to call and get their future schedule.

Business Paper
A business newspaper will be like a greatly expanded version of the business section of your local paper. They should have extensive event listings and they may even run events of their own. American City Business Journals, Inc. runs papers in 41 major metropolitan areas in the United States. You may also find locally run business papers by searching for your city name and the phrase “business newspaper.”

Phone Book
As old-fashioned as it sounds, your local yellow pages directory is still an excellent source of information. Look under the headings of clubs, associations, and service clubs.

Local Associations of National Chapters
If you are not already seeing these organizations listed in the Chamber directory, newspapers, or phone books, conduct an Internet search. Use key words to search for your area of interest (e.g., management, advertising, etc.) along with the words association, society, organization, and national. You may also find local, independent groups by including the word “network” and your city name.

Ask
You may have a very small or rudimentary network, but if you work with more experienced business people, or long-term residents, start by asking them about networking events, activities, and organizations. If you’ve started your own business, go to your neighbors in your business complex, introduce yourself and ask for networking advice. Not only might you find some great suggestions, you’ll also start building relationships in your own back yard.

Conclusion
Using the techniques in this article should provide you with many sources of information for finding out where to network. As you begin to attend events, talk to people you meet. They’ll know about more events than may be listed and they’ll be able to guide and recommend you to the most effective and friendly networking groups available. You’ll soon find that you’ll be able to pick and choose among many opportunities.

About the Author: Beth Bridges is The Networking Motivator ™ and creator of the 5 Part Networking Success Plan ™, a simple networking system that can help anyone from business owners to sales agents to college students develop a powerful network. Subscribe to the weekly Networking Motivator Newsletter at www.thenetworkingmotivator.com for a quick boost of networking inspiration, information and motivation.”

If you liked this article, tell all your friends about it. They’ll thank you for it. If you have a blog or website, you can link to it or even post it to your own site (don’t forget to mention www.meetingwave.com as the original source).

You’ve worked hard to learn about people, remember their names and think about ways to help them whenever you can. But do they remember you? And are you remarkable enough that they are thinking of you when someone needs your services? While there are many ways to be remembered that aren’t good, here are positive, reputation-building ways to not only be remembered, but to become remarkable.

Be Interested in Them
It is the foundation of how to win friends and influence people and still remains true to this day: to be considered interesting (and therefore memorable) you must be interested in other people. They usually don’t remember what you say, but they will remember how you made them feel. If they feel like you listened and were interested in them, like you thought they had something valuable to contribute and that you liked them personally, they will feel great and they’ll attach that feeling to you.

Help Them Remember
Unless you have a very unusual name or occupation, assume that they need some help remembering you. Since one of the most common networking problems people say they have is remembering names, try to make it as easy as possible for them by giving them a memorable association to your name. For example, if your name is John Bridges, introduce yourself as “John Bridges, as in London Bridges.” Or “Sally Dove, like the bird.”

Remind Them
In advertising the general rule of thumb is that it takes seven exposures to a message for someone to remember it. Why should we expect to be clearly remembered ourselves with just one meeting? There’s a saying that “the fortune is in the follow-up” but so is the formation of memory. Increase your number of exposures by sending them a thank you note that includes a brief summary of what you discussed (include a reference to your memorable “hook” or one of your stories). You can continue to follow up with relevant information that they would appreciate (and that would show you are a good listener). For example, they may have mentioned that they were considering advertising in a particular publication. If you know someone else who also advertised in it, consider connecting the two together. Your new contact will get the benefit of someone else’s experience and your existing contact will get the benefit of making a new connection.

Networking is the process of developing long-term, mutually beneficial relationships. It’s hard to create a relationship if other people don’t remember meeting you or if they don’t remember you in a positive way. These are very specific methods of making yourself not only memorable, but also remarkable in a way that will grow your reputation and your business.

About the Author: Beth Bridges is The Networking Motivator ™ and creator of the 5 Part Networking Success Plan ™, a simple networking system that can help anyone from business owners to sales agents to college students develop a powerful network. Subscribe to the weekly Networking Motivator Newsletter at www.thenetworkingmotivator.com for a quick boost of networking inspiration, information and motivation.”

If you liked this article, tell all your friends about it. They’ll thank you for it. If you have a blog or website, you can link to it or even post it to your own site (don’t forget to mention www.meetingwave.com as the original source).

What sparked the idea for MeetingWave:

Having done a lot of business travel in his life, John began noticing that his dinner plans getting the grunt of moving around so often. He recalls most of his dinners as eating alone in the hotel room, or by grabbing a bite in his hotel restaurant, seeming to always take notice of the many other unaccompanied business travelers. These nights eventually led John to spark an idea for a tool to end these nights and ultimately bring business travelers together. As the idea grew in his head, John began brainstorming on a site that enabled travelers like himself to meet new people on the road or near home/work, providing targeting, privacy and controls.

Some background on MeetingWave:

Although John came up with the idea in February 2000, it was not until July 2007 that the site was launched, and renamed in 2008. John describes the core purpose of MeetingWave as a tool used for “helping people meet the right new people over coffee, lunch, dinner or other meeting activity.” Knowing the crazy and hectic lives of business travelers, along with the uncertainty of meeting new faces online, John and the MeetingWave team have implemented a number of privacy controls, verification features and flexibility. The site allows users to describe the type of people they would like to meet without disclosing their name or contact information, and does not ask them to commit to a meeting unless ready and interested in meeting the those who rsvp. “Arrange face-to-face meetings with new business contacts with control, privacy and flexibility.”

MeetingWave launched their mobile apps and private label Saas versions this year.

Why we think they’re awesome:

We love that John saw problem and took it upon himself to fix it! We can only imagine how many other business travelers like him were struggling to enjoy their evenings after long work days in new cities/states. What a great concept!

Something else that we love about MeetingWave is the precautions that they take when new users sign up… they ensure your privacy and do not disclose any information you would not want shared. Awesome service!

Be sure to check out MeetingWave.com through their links below!

Connect with MeetingWave:

Website; Twitter; Facebook

This article was originally posted at http://businessbewareradioshow.com/3617.html

If you liked this article, tell all your friends about it. They’ll thank you for it. If you have a blog or website, you can link to it or even post it to your own site (don’t forget to mention http://businessbewareradioshow.com as the original source).