Intellectual Property Archives

Do I need to copyright my website?

Everyone Has a Website

Whether you build a website for personal or business reasons, chances are good that you pour your heart and soul into it. After all, that website is a reflection of you, and it also may be the first contact that your customers have with your business.

After putting so much time and effort into building your website, it makes sense to protect it. This doesn’t occur to many website owners, with the result that they are unable to recover damages when someone else steals their content.

Copyright Content

All of the content that you add to your website is either originally created by you or was created by someone else, like a contractor or employee, who was working for you. This means that you now own that content, whether it’s pages that describe who you are and what you do, blog posts or something else entirely.

Whatever that content is, you own it, and this means that you have the right to prevent others from using it without your permission. When you do see that someone has used your website content without asking you first, a registered copyright gives you the ability to pursue legal remedies.

Automatic Copyright Laws

You may have heard that copyright protection in the U.S. is automatic. This is true. In fact, anything that you fix in tangible form, like a drawing or a recording, enjoys automatic copyright protection in America.

However, this automatic copyright doesn’t necessarily go far enough when it comes to protecting your website’s content. Plagiarism on the Internet is rampant. Plenty of bad actors are out there who will simply copy your content or photographs and paste them onto their own website.

What can you do if this happens?

In this situation, it is best to have a federally registered copyright for your website and all of its content, which includes text, photos and other images. A formal registration demonstrates the date of creation of the content, enabling you to prove beyond a doubt that you are the originator and/or owner of the content.

What Federal Copyright Registration Provides

When you register your copyright, you are formally demonstrating your authorship of the content. If you hired someone to create some or all of your website content for you, then it makes sense to enter into formal agreements with these individuals in which they legally assign their rights in the created material to you. This usually helps to prevent later disputes should they ever arise.

Additionally, when you have registered your copyright, you have the right to pursue a civil lawsuit against an infringer. When a website is under a federal copyright, then the website’s owner may have the ability to claim statutory damages in addition to attorney’s fees if a lawsuit becomes necessary.

Copyright Notice

Whether you pursue a federal copyright registration or not, it is always sensible to include a copyright notice on each page of your website. Usually, such notices appear at the bottom of the page, and they may be as simple as “Copyright 2020.” Other possible copyright notices include ” © 2020″ or “All rights reserved.”

While adding copyright notices to your website is not a requirement even if you federally register your copyrights, it is wise to do so to inform any visitors with bad intentions that you are aware of your rights and will defend them.

Ask an Intellectual Property Attorney for Assistance

Are you creating your first website or are you already the owner of several websites and just recently became aware that someone has stolen some of your content? In either situation, it’s wise to contact the Williams IP Law Office in Texas.

Jeffrey Williams helps clients with determining whether or not to federally register a copyright for various content on their websites. Moreover, Jeff can provide assistance with drawing up the various formal agreements that may be needed to ensure that the rights to website content are properly assigned from the author to the website’s owner.

Copyrighting website content in the U.S. is neither particularly difficult nor expensive, but it can be instrumental when it comes to protecting your work from infringement. If you’re serious about ensuring that others cannot take advantage of your hard work, then contact Williams IP Law.

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New Tool For Intellectual Property Owners

Are you a creator or an entrepreneur? Perhaps you’ve just started a new business. It’s an exciting time, but it isn’t always easy to identify the most critical tasks that you need to accomplish.

Choosing the proper entity and getting registered with the state certainly are crucial. However, your new venture may benefit just as much from identifying your intellectual property assets and how to protect them.

Your intellectual property, otherwise known as IP, may consist of things like your company’s name and logo as well as the new product that you’re launching. Maybe you have written some brand-new and revolutionary computer code or composed a piece of music.

Regardless of what you have created, chances are good that it could be considered IP, and that means that you’ll want to think about whether or not it makes sense to formally protect that IP with the US Patent and Trademark Office.

If you are new to the world of IP, then it definitely is wise to find an experienced guide. An intellectual property attorney can provide you with the support and advice you need. However, if you’re wondering if what you’ve created could even be considered intellectual property, then you may need a more basic place to start.

A New Online Tool for Innovators

Most countries have a government department that’s in charge of handling patent and trademark applications within its borders. In America, this department is known as the US Patent and Trademark Office, or USPTO.

The USPTO provides a variety of online tools and resources through which it is possible to search and file patent and trademark applications, communicate with examining attorneys and more. While some of these tools and resources are fairly user-friendly, many of them are intended for use by intellectual property attorneys and other legal professionals who have a significant level of experience in this area.

Recently, the USPTO announced the launch of a new online resource called the Intellectual Property (IP) Identifier. What sets this tool apart from many of the others on the USPTO website is that it is purpose built for people who don’t have extensive experience with IP.

In fact, it isn’t necessary to know the difference between a patent and a trademark because the Intellectual Property Identifier takes you step-by-step through the process of deciding what kind of IP you have and how to protect it.

Additionally, this innovative virtual resource provides approachable information regarding the various forms of intellectual property protection and how each might be advantageous for a business or an individual to pursue.

The IP Identifier in Detail

Currently, the IP Identifier consists of two main modules. These are the Basic IP Identifier and the Advanced IP Identifier. Users move through the Basic module by answering just a half dozen questions. This helps the user to identify their IP and how to protect it.

The Advanced module takes things a few steps further by providing information to users about their IP. Links to additional resources are provided. These resources include instructions for how to file an application to protect IP.

The USPTO plans to launch a third module in the future about managing IP assets.

Why Use the Identifier and Protect Your IP?

Many inventors and entrepreneurs who are new to the world of IP feel a little overwhelmed when it’s suggested that they should seek patent protection. In fact, some innovators put off filing applications with the USPTO until it’s too late. Frequently, this means that someone else has already filed a patent application for similar technology, which can make it difficult or even impossible for anyone else to obtain meaningful protection.

According to the USPTO, protecting intellectual property “is a smart and necessary business strategy” that is of tangible benefit to organizations. A first patent may be used as collateral, which is known to increase capital funding by as much as 76-percent in a three-year period. Obtaining a first patent additionally has been known to increase initial public offering funding by as much as 128-percent.

Most entrepreneurs also don’t realize that having protected IP can be a powerful tool for recruiting. Statistics suggest that the approval of an initial patent application may lead to 36-percent employee growth over a five-year period. Market share similarly can increase. Studies concluded that startups that have a patent tend to increase sales 80-percent more than companies that have no protected IP.

Ready to Start Your IP Journey?

At Williams IP Law, we help entrepreneurs of every size and description obtain the IP protection that they need. While we provide support to large companies, we also are dedicated to helping startups and individual inventors learn more about intellectual property and how they can protect their most valuable assets.

Schedule a free consultation today with a legal professional at Williams IP Law.

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How 3D Printing Affects Intellectual Property

Artists, designers and industries have always wrestled with the potential problem of intellectual property theft. Whether it’s fighting to fending off the malicious reproduction of closely guarded designs or trying to keep an eye on the distribution of licensed creations, the challenges of maintaining intellectual property rights are only getting more complicated as 3D printing increases in popularity.

What is 3D Printing?

Also called additive manufacturing, 3D printing uses a special type of printer and one of hundreds of manufacturing materials to create solid copies of objects. To make this possible, the objects are first scanned with a 3D scanner and turned into Computer Added Design (CAD) files that the printer then reads. Materials are laid down in successive horizontal layers as the printer effectively “builds” the item section by section, which stands in contrast to the subtractive nature of traditional manufacturing.

This rapidly growing technology has a multitude of applications. It may be used to create models, prototypes or parts for machines and aircraft. Methods for printing working human organs for use in transplants are also in the works. On the creative side, 3D printing provides a way for artists and designers to literally bring their imaginations to life.

While there are many applications that will change our future, we are already seeing homes being developed using this technology and it’s being hailed as the technology of the future for affordable housing.

The Intellectual Property Dilemma

Just like the troubles that arose surrounding peer-to-peer music and file sharing sites, problems with intellectual property law are beginning to pop up in relation to 3D printing. Many “blueprint” sites exist where designers can upload their creations for others to print, but not all of these creations represent original work. Even when they do, it can be difficult to track whether or not end users are following proper attribution procedures according to any creative licenses attached to the design. At a certain point, reproduction becomes uncontrollable and the origin of the initial creation gets lost in the chaos.

One of the biggest problems with 3D printing and intellectual property law is that most people don’t understand how copyright works. This leads to unintentional and accidental infringement that can result in big losses for the companies or designers holding the rights to the items being reproduced. With personal 3D printers becoming more common, it’s getting harder to track down individual infringers and prove that their actions are worthy of legal punishment.

If it’s just a CAD file, what happens if that file is released to the general public or what happens if the file is changed for the better or worse? The liability by itself is enough to make sure we establish property intellectual property guidelines.

3D Printing, Intellectual Property and the Future

Copyright law technically goes into effect the moment a unique design is created, but industries and designers can file for additional legal protections in an attempt to keep their intellectual property from being reproduced. Patents, trademarks and design protection are all meant to ensure that a design remains the property of the original creator. However, these do little to stop malicious users from creating counterfeit copies of anything from toys to functional weapons. The potential dangers posed by some of these items may bring other branches of the law, such as liability law, into play as time goes on.

Given the complex legal challenges surrounding 3D printing and intellectual property, it could be some time before official legislation is put in place to handle cases of infringement. Until then, those who create and distribute designs need to be made aware of how to take advantage of available protections so that they have some type of legal recourse should their creations fall into the wrong hands.

Our Solution

Williams IP Law has worked across many verticles and can help if you think that someone has violated your intellectual property rights through 3D printing. With offices throughout Texas, we can help you wherever you are located.

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Trade Secrets Rights and Uses

Intellectual property may be protected in a variety of ways. New inventions may be covered by a patent while your company’s name and logo may be protected with a trademark registration. If your company publishes brochures, then these are covered with a copyright.

However, what if your company has something that they would like to protect, but keep secret? Several famous examples of “trade secrets” exist. These include Kentucky Fried Chicken’s 11 herbs and spices, the secret formula for making Coca-Cola and the search algorithm that Google uses.

Why didn’t these companies decide to patent or otherwise protect their IP via the various mechanisms that are available under U.S. law?

It’s because they wanted to keep their “secret ingredient” a secret. When you file a patent application, for example, it is essential that you disclose everything about the invention so that the United States Patent and Trademark Office can establish that it is non-obvious, novel and eligible for patent protection.

This means that any proprietary information that goes into your invention will eventually become public knowledge. When your patent expires, your technology becomes available for others to use.

However, when you protect something as a trade secret, then you have the potential to keep it a secret in perpetuity.

What Can You Protect with a Trade Secret?

Trade secrets can protect an array of things, from an ingenious idea that gives your firm a competitive edge to the marketing plans for your newest product. Similarly, customer lists can be protected as trade secrets as well as information regarding prices and costs.

Some companies even protect negative know-how as a trade secret. This basically refers to anything that they have learned to not do through extensive research and development. Sometimes, this information is just as valuable as the ingredients that successfully make up your secret.

Essentially, a trade secret can be almost any information that is valuable to your company and generally isn’t known to the rest of the world, especially your competition.

What Rights Does a Trade Secret Grant?

If a company chooses to keep some information as a trade secret, then they have the right to prevent certain people from using or benefiting from that trade secret.

Some of these people are automatically bound by a strict duty of confidentiality. This applies to any employees who work with or are knowledgeable about the trade secret.

Trade secrets also give you legal protections in the event that your proprietary information is illegally obtained via bribery or theft. A company with a trade secret further can prevent people who accidentally discover the secret information from profiting from it as well as those who are asked to sign a non-disclosure agreement before the confidential information is shared with them.

However, a trade secret does not grant a company any rights if another party independently discovers the trade secret. As an example, there is no law that prevents someone from reverse engineering a product that is only protected as a trade secret. This means that theoretically someone could analyze the formula used to make Coca-Cola, discover its precise ingredients and then start making and selling their own version of Coca-Cola. Because Coca-Cola’s formula is only protected as a trade secret, they would have a lot of difficulty stopping the inventor from profiting from his knowledge.

How Does a Company Protect a Trade Secret?

Businesses have to do more than just call a certain piece of information a trade secret. Instead, it is necessary to take affirmative actions that will protect this information and keep it confidential. Many companies will take extreme measures to keep their information strictly private.

This is the case with the makers of Coca-Cola, as the formula is locked in a bank vault that is only able to be opened after a resolution is passed by the board of directors. Only two company employees are ever allowed to know the formula at the same time. These employees are forbidden from flying on the same airplane, and their identities are never made known to the public.

Most companies do not have to go to such extreme lengths to protect their trade secrets. A few reasonable precautions generally are all that is required.

For instance, it is wise to mark any documents with “Confidential” if they contain any trade secret information. All trade secret materials probably should be locked away in a safe or other secure area after hours. Another sensible measure is to beef up any computer security protocols to ensure that hackers and other bad actors can’t gain access to sensitive information.

If you do have trade secrets, then you’ll probably want to limit how many people actually have access to that information. Ensure that your employees are bound by a duty of confidentiality, preferably with a written document, and do the same with anyone who is not an employee but who must be told about the trade secret for any reason. A proper non-disclosure agreement is a simple document that can help to protect proprietary information under just about any circumstances.

Talk to a Lawyer About Protecting Trade Secrets

If you have proprietary information that you believe would be best protected by keeping it as a trade secret, then contact the Law Offices of Jeff Williams. Mr. Williams is an experienced intellectual property attorney who can help you to understand your rights and devise a strategy for protecting proprietary information.

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4 Ways to Prevent Chinese Counterfeiters

The Counterfeit Epidemic

An ever-growing number of U.S. companies are seeing their products being ripped off online or in the various trade channels. One major contributor has been China. The counterfeiting industry there isn’t new. In fact, it’s been rampant there for many years. It’s has been admittedly difficult to police every product that comes out of China, but that doesn’t mean it’s impossible. With good intellectual property protection, and by following a few steps, it’s possible to reduce the flow of counterfeit goods coming out of China.

Steps to Protect Yourself

One of the most important steps toward protecting valuable intellectual property is to seek patents and trademark registrations in the U.S. and China. If every right of protection was an arrow, you want a quiver full of potential rights. The idea is to gain as many potential advantages you can. There have been some ingrained skepticism regarding the value of intellectual property protection in China. However, recently there have been some real changes in the way China looks to enforce intellectual property. China has made steady improvement in the enforcement of patent and trademark rights in recent years and in many ways, intellectual property rights in China are one of the strongest chances you may have to curtail counterfeiting.
In regards to trademarks specifically, a two-fold approach is recommended. We suggest that after you obtain a federal registration, you look to formally register the trademark with the respective national customs agency (China Customs – General Administration of Customs or GAC for short). The same strategy goes for the United States (US Customs – may register both Trademarks and Copyrights). Statistics show that of all the goods confiscated by Chinese Customs, most all of them involved trademarks registered in China and registered with Chinese Customs. It is important to register your marks with Chinese Customs to prevent the export of counterfeits.
Below is a simple timeline to go by for Chinese Customs registration. It can take around 14 months for a Chinese trademark to become registered. You need a registered mark prior to registering with Chinese Customs. Chinese customs may take anywhere from 3-4 months to complete the registration process. This means it can take at least 18 months to get full trademark protection in China. It is best not to wait.

Keep in mind that the Chinese trademark system operates on a first-to-file doctrine. This means that registration must occur prior to any enforcement. In the end, the U.S. and China customs will monitor incoming and outgoing shipments for counterfeit goods. The owner of the trademark registration is informed whenever counterfeit goods are found, providing an opportunity for the owner to cease the transportation of any counterfeit goods.

It’s also advisable for American companies to be very careful about who they are doing business with in China. Frequently, the perpetrator of counterfeit goods is in some way related to the legitimate product or business you are working with in China. Be it a distributor, manufacturer, retailer or someone who used to be connected to one of those business partners. These are most often the parties behind knock offs. Accordingly, it pays to not only develop a close relationship with these organizations, but also to keep a good handle on some portions of intellectual property. If you don’t provide business partners with all of the secrets to your success, then they will have a much more difficult time duplicating your product.
Monitoring the Internet for counterfeits is another essential component. Some companies ask employees to periodically check certain e-commerce websites to see if knock offs are being sold. When the task becomes too onerous to do in house, some organizations turn to an intellectual property attorney who can perform a monitoring service for them. This is frequently a smart move since the attorney probably has access to helpful tools that make monitoring the market much more efficient.
Of course, when that monitoring uncovers someone who is actually counterfeiting goods, it’s time to contact them with a cease and desist letter. This is sometimes all that is required to get the counterfeiting to stop. A U.S. intellectual property attorney may work in conjunction with an attorney in China to send the letter, backing it up with proof of patents and trademarks both in the U.S. and in China. Cease and desist letters sometimes result in a genuine apology and a promise to stop. However, the need to threaten legal action, like a lawsuit, may also be necessary if the counterfeiter is resistant.

It may never be possible to completely stem the flow of counterfeit goods coming out of China, but if U.S. owners and manufacturers do their part, it is possible to reduce that flow to a trickle. If you a need intellectual property litigation expert contact the Williams IP Law for a free consultation.

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Stronger International Intellectual Property Laws are Coming

At Williams IP Law, our legal professionals frequently are asked about protecting intellectual property rights in foreign countries. It’s not unusual to find that inventors and entrepreneurs hold numerous misconceptions about how patent and trademark systems work on a country-by-country basis.

For instance, it is a common misconception that obtaining patent and trademark rights in the U.S. grants rights that extend into other nations. However, this is not the case. Each country has a unique system in place for protecting patents and trademarks. In the case of Europe, it is possible to obtain rights across the European Union or in specific countries in which coverage is desired.

This means that if a company is doing business in another country, then it may make sense to obtain patent and trademark protection in that foreign country. As an example, consider an American company that is selling products at home and in Peru. That company would want to protect its intellectual property in the US as well as in Peru and in any other country to which they are shipping products.

The same may be true for a company that is having its products manufactured in a foreign nation. Intellectual property protection may be sought in the country of manufacture, such as Malaysia, and in the U.S. where the products are sold.

Accordingly, it makes sense to stay informed with regard to changes in the intellectual property laws of foreign jurisdictions. These changes frequently have the effect of offering intellectual property right holders greater protection than they had before.

Let’s take a look at some unfolding developments in other jurisdictions around the world.

New Protections for Small Businesses in the EU

A cooperative effort between the European Commission and the European Union Intellectual Property Office, or EUIPO, is offering critical financial assistance to Small and Medium Enterprises, otherwise known as SMEs. This financial assistance is aimed at helping smaller business concerns protect their intellectual property rights as robustly as large corporations do.

In general terms, it is easier for large corporations to protect their IP. They have deeper pockets and more resources that help them to obtain and enforce protection. Small businesses do not have access to the same resources, and this can make it difficult for them to take the lead in innovation.

To help bring more balance to the IP process, the government has created the EU SME Fund, which currently has a budget of €47 million. This money will be used to reimburse small- and medium-sized businesses for the expenses that are incurred in connection with protecting their intellectual property.

As an example, the fund will reimburse businesses up to 90 percent of fees incurred for IP Scan services. These services provide assessments of a company’s unique intellectual property needs. SMEs also may be reimbursed up to 75 percent of fees charged by national intellectual property offices for trademark and design registrations as well as up to 50 percent of national-office fees that are charged in connection with patents.

The EU SME Fund was created in response to the global COVID-19 emergency and its particularly harsh impact on SMEs. It will operate between 2022 and 2024 with the hope of supporting innovation in SMEs across the EU.

China Makes Strides

If you do business in China, then you already may be aware that it’s a nation that is rife with counterfeit products. Protecting patents and trademarks in China is an uphill battle in which there always seems to be more imposters trying to capitalize on your success and the quality of your products.

The Chinese government recognizes this status, and they are making efforts to correct these and related intellectual property issues. As an example, the Chinese intellectual property office recently joined the international Hague Agreement for the registration of industrial designs. Membership signals a willingness to work within an agreed-upon set of rules and regulations that are upheld across national borders.

Additionally, China has established more than 20 offices worldwide that are tasked with handling disputes between Chinese entities and foreign companies. This demonstrates a willingness to cooperate on the world stage with regard to intellectual property rights.

Recently, Chinese officials unveiled a 115-point outline regarding how to build a powerful country from an intellectual property standpoint. Included within the outline is an intention to amend the country’s anti-monopoly law, strengthen the manner in which intellectual property rights are protected and enhance quality control with respect to the examination of patent and trademark applications.

Hopefully, with China’s new focus on protecting intellectual property rights, foreign businesses will soon see fewer fakes and imposters cropping up.

Do You Need IP Protection in Other Jurisdictions?

If your organization has any overseas operations, then it might be worthwhile to examine whether or not IP protection is needed in those countries. Ask for guidance from an intellectual property attorney at Williams IP Law by calling (832) 795-1909.

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The Invention Process for Entrepreneurs

Do you have an invention?

When you have an idea for a new invention, the excitement you feel can be hard to contain. In the space of a few moments, you see yourself bringing a desirable new product to market and earning millions of dollars in the process.

Unfortunately, the invention process is complicated. Getting your new product from an idea to an actual item on store shelves requires a great deal of time and effort. It’s also essential that you protect your innovation with a patent application so that you can prevent others from taking advantage of your creativity.

Although the invention process looks a little different each time, there are still certain steps that you can expect to take.

Develop and Document Your Idea

You need much more than a vague concept to get started. Accordingly, you may have to spend some time developing your idea.

Keep in mind that most inventions are created in order to solve a problem. As you work to develop your idea, maintain your focus on the problem that you are trying to solve. You may want to keep notes relating to your research, experiments and development efforts.

Prior to 2013, the United States had a “first to invent” patenting system. In the event that two inventors submitted highly similar patent applications, the United States Patent and Trademark Office would award any resulting patent to the applicant who could prove that they had the idea and developed it first, regardless of whether or not they were the first to file a patent application.

In March 2013, U.S. patent law changed, and the system became a “first to file” patent system. This means that keeping dated, witnessed documentation of your development process has become less critical. Nonetheless, you may want to keep plenty of notes to document your process in case another party ever disputes your claim to the invention.

Complete a Patent Search

It is possible for any inventor to conduct a patent search in the online records of the USPTO. The online system enables inventors to look for any existing patents that may be similar to their new invention. For an invention to be patentable, it must be unique and non-obvious. If you discover prior art in your patent search that is duplicative of your invention, then you may need to re-focus your efforts.

Do Some Market Research

Did you know that as many as 95 percent of all patents don’t end up being profitable for the inventor? Usually, this is because the invented item just isn’t something that people need or want. Consequently, it may be sensible to do some market research. Is your invention one that people will actually buy?

Obtaining a patent, developing a product and marketing it are all time-consuming and expensive processes. It makes sense to ensure that there is a good possibility that you can make money from your idea down the road before investing too much time and money.

Take a look at other similar products that are already on the market. How much are they selling for? Will it be possible to manufacture and distribute your product at an affordable cost that makes your retail price reasonable?

Market research can be indispensable to determining whether or not you continue with the next steps of the invention process.

Build a Prototype

This is the step in which your idea becomes tangible. You may build the prototype yourself or hire a manufacturing company to do it for you.

Usually, a prototype begins with drawings. Once again, this is something you can do yourself or hire out. Next, you may create a mockup out of any material that can make a passable 3-D model of your idea. It’s then possible to create a working model.

The prototype is a critical step because it may reveal flaws or missing components in your idea. In fact, you may find yourself going back to the drawing board. That’s perfectly all right. Most inventions are the product of a lot of trial and error.

File a Patent Application

When you, at last, have a working prototype of your invention, you probably have most of the kinks figured out. This means that it’s a good time to think about protecting your idea. Typically, this means filing a patent application.

You may file an application for a utility patent, which covers machines or processes, or a design patent, which covers ornamental designs.

Some inventors elect to write and file the patent application by themselves. However, this rarely is advisable. The application will be reviewed by a lawyer at the USPTO who is likely to issue arguments against the patentability of the invention. Having a qualified intellectual property attorney draft and file your patent application usually makes the process go a little more smoothly. The Examiner at the USPTO still may initially deny a patent, but your attorney will be prepared to file legal arguments that could change the Examiner’s mind.

Work on Fundraising, Manufacturing and Marketing

Now that your invention is “patent pending,” you are ready to move on to disclosing your invention to people and entities that might be able to help you with financing, manufacturing and marketing. This may involve writing up a business plan and setting up your own company. Alternatively, some inventors choose to license their patent rights to a company that will handle things like manufacturing, distribution and marketing.

If you do plan to enter into any legal agreements or licenses with another party, then it’s wise to consult with a patent attorney to ensure that any documents that you consider signing fully protect your interests.

Talk to Williams IP Law

Do you have a great idea that you would like to turn into a marketable product? If so, then give Williams IP Law a call. We are experienced at providing guidance to inventors regardless of where they are in the invention process. Whether you need help with drafting and filing a patent application or deciding if a proposed licensing agreement really is a good deal, Williams IP Law has the knowledge needed to advise you.

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Patent Trolls Exist

If you have a patent or are considering securing patent protection for a new invention, then one of the things that you need to be aware of is patent trolls.

What is a patent troll? How can they affect you and your patent rights? Inventors with these and other questions are encouraged to schedule a consultation with a Texas patent attorney to discuss pursuing a patent and protecting their rights.

What Are Patent Trolls?

You may hear patent trolls referred to as “non-practicing entities,” or NPEs. A patent troll is an individual or entity that uses legal means to enforce patent rights against individuals or entities that they claim are infringing their patent rights. The troll is trying to collect licensing fees on the patents they own, but trolls don’t build, make or sell anything. Their practice is to obtain or buy patents and then demand that any companies using related technology pay them fees. Accordingly, you could see the work of the patent troll as a form of legalized extortion.

Because of patent troll activity, manufacturers and inventors end up wasting all sorts of time and money defending their rights in patent infringement lawsuits. Sometimes, they conclude that it just makes sense to pay licensing fees to the patent troll rather than fight them.

What Do Patent Trolls Do?

An ordinary company that holds one or more patents usually spends their time and resources manufacturing a product or offering a service. They also likely perform research, looking for new applications and new technology.

Things are really different at an NPE. They spend virtually all of their time and resources in protecting their patent portfolio. However, they are not doing so in order to prevent others from profiting from their exclusive technology that they are using on a product or service. They don’t offer products or services at all. They are only monitoring the marketplace for any technology that might infringe one of their patents. Patent applications that are published by the U.S. Patent and Trademark Office are a great place for patent trolls to look for emerging technology.

That’s because patent trolls prefer to exploit new or otherwise vulnerable companies or individuals who don’t have much in the way of resources to defend themselves. The patent troll is hoping for an early, easy victory that will give them a settlement and probably even induce other companies to do the same.

Because patent trolls do not make, sell or import anything, they are not vulnerable to a counter-assertion that they are actually infringing on the other company’s technology. Patent litigation already is costly and complicated. Without the ability to make this counter-assertion, it can be almost impossible for the patent troll’s victim to prevail.

Patent Trolls in Action

Here’s one example of how patent trolls work. A company called Lodsys is an obvious NPE. They don’t make or sell anything. However, they do engage in lawsuit after lawsuit, each one alleging patent infringement by another entity.

Lodsys appears to specialize in exploiting small app developers. They see a new app come on the market, and they quickly move in with a lawsuit, claiming that the in-app purchasing technology used in the app infringes on one or more of Lodsys’ patents. Both Apple and Google are trying to intervene in some of these lawsuits, but these will take years to resolve.

Consider also the many lawsuits that have been filed by Shipping & Transit LLC. In 2016, this company filed more patent lawsuits in the U.S. than any other. They sue 100 or more small companies each year, claiming that the technology that allows these companies to send tracking numbers to customers is exclusively owned by them via patents that they hold. Many overwhelmed small companies don’t even know how to begin protecting themselves or fighting back.

Mistakes to Avoid

Patent trolls usually make themselves known through a demand or cease-and-desist letter. The worst thing that the recipient of that letter can do is to ignore it. The better choice by far is to consult with a patent attorney so that an appropriate response can be made. Choosing not to respond only strengthens the patent troll’s case down the road.

Plus, if the patent troll receives a strongly worded, immediate response from an attorney, they are likely to just drop their demand. That’s because patent trolls prefer an easier route to collect money. If they encounter swift, decisive resistance, they’ll go looking for victims who are not defending themselves as well.

Can You Protect Yourself Against Patent Trolls?

Patent trolls always bet that their victims won’t know how to react to a demand letter. All too often, people simply throw these letters away, figuring that they are junk mail. Consulting with a Texas patent attorney is the smarter option.

If you are considering entering into a licensing agreement with any entity or individual, proceed with caution. Have a trusted intellectual property lawyer review the terms of the licensing agreement to ensure that it is fair, balanced and appropriate.

Contact the Jeff Williams Law Office today to find out more about how to protect yourself from patent trolls.

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