Memorial Service for Judge Moran

The Northern District recently sent out the following notice of a memorial service for Judge Moran to all e-filers:

The Judges of the United States District Court
for the Northern District of Illinois
cordially invite you to attend the
Memorial Service
in Remembrance of
Honorable James B. Moran
Monday, July 13, 2009, beginning at 3:30 p.m.
James Benton Parsons Memorial Courtroom
Everett McKinley Dirksen United States Courthouse
Twenty-fifth floor
219 South Dearborn Street
Chicago, Illinois

Reception immediately following in the 25th floor lobby,
Please RSVP by July 9, 2009 via e-mail
To JudgeMoranMemorialService@ilnd.uscourts.gov

Claim Constructions Result in Invalidity Summary Judgment

 

Microthin.com, Inc. v. SiliconeZone USA, LLC, No. 06 C 1522, Slip Op. (N.D. Ill. May 6, 2009) (Kendall, J.).

Judge Kendall construed the claims of plaintiff Microthin's patents to non-slip mats and based on the constructions granted defendant SiliconeZone summary judgment of invalidity as to the first claim of each patent. Of particular interest, the Court construed the following terms:

  • Non-Slip meant reducing or preventing smooth sliding motion, but the Court declined to add Microthin's proposed requirement that it not be sticky to the touch because there was an independent claim that only added the requirement that the non-slip surface was not sticky to touch.
     
  • Consisting of was construed as a closed transitional phrase, as it is normally used in patent law.

Based on its construction of non-slip, the Court held the first claims of each patent invalid. Microthin's sole argument against the asserted prior art was that it did not teach a non-slip surface because the surface was sticky to the touch. Because the Court construed non-slip without the sticky limitation, the first claims of each patent were invalid.

 

More on Judge Posner and the Intersection of Copyright and the Internet

LexBlog's Kevin O'Keefe picked up on Judge Posner's proposal to make linking and summarizing news stories copyright infringement, which I blogged about Friday.  O'Keefe takes a different approach than I did, based in part upon a post by Jeff Jarvis at the Buzz Machine.  O'Keefe argues that the issue is really that news spreads from newspapers faster today than it used to.  But just as newspapers benefited from word of mouth about their stories twenty years ago, they benefit from links to their stories today.  As a result, linking should not be limited in any way and certainly not just to prop up the newspaper industry:

Because news spreads faster we're supposed to give newspapers a monopoly on the news? That's crazy.

Jarvis makes a compelling point which lawyers advising newspapers ought to think about when counseling newspaper clients.

Schultz and the Marbergers complain about what they call the ‘free-riding’ of aggregators, et al. But they simply don’t understand the economics of the internet. It’s the newspapers that are free-riding, getting the benefit of links.
The framers of our Constitution, including the First Amendment, intended it to endure and cope with the effects of the anticipated changes of our nation.

 

Things have changed - changed quickly. But let's be careful when thinking of following lawyers and Judges who may not understand the nature of the change.


I understand his view, although I am not sure it is the best decision from a policy stand point.  It is important not to lose site of the fact that copyright holders with content on the internet still have significant protection.  Direct copying of the stories is already protected by copyright law, especially if a paper registers its copyrights and can get statutory damages.  Of course, as I pointed out Friday, it is hard to police the use of facts from news stories.  So, it will be difficult to make an infringement case when someone truly summarizes a news story.  But I can see the value in incentivizing traditional news media to continue spending on reporters and reporting.  For example, a system of paying newspapers, and other content providers that would choose to opt into the system, a nominal fee for click-throughs on links from your site to a current news story.  To me that seems like a reasonable compromise which would not cost most websites much, but could provide real economic benefit to news websites, thereby maintaining reporting staffs.  Of course, newspapers could accomplish something similar and maybe even economically better by shifting to subscription-based sites, which has been received with mixed reactions and effects previously.

But more important than which position is correct, is the discussion.  While the Constitution does give Congress the power to protect copyrights, it says little about how to protect them.  That is left to Congress, which enacts copyright laws based upon the technology available when the law is drafted and some limited vision of technology to come.  As a result, it is difficult to effectively apply the Copyright Act of 1976, even with more recent amendments and additions, to every aspect of the internet world.  So, in light of the fast pace of technological change over the last ten to twenty years, an open dialogue about how to make the copyright laws adequately protect authors and the public  is very important.  And as O'Keefe and Jarvis point out, it is a dialogue that requires more than just lawyers, who understand the legal issues, but artists, newspapers, media consumers and many other copyright stakeholders.

Judge Posner Suggests Tighter Copyright Rules to Protect News Reporting

The Seventh Circuit's Judge Posner has weighed in on the newspaper crisis at his Becker-Posner Blog suggesting that a fix to the news revenue issue might be to change copyright laws to prevent linking to or summarizing news content (click here to read the post):

Expanding copyright law to bar online access to copyrighted materials without the copyright holder's consent, or to bar linking to or paraphrasing copyrighted materials without the copyright holder's consent, might be necessary to keep free riding on content financed by online newspapers from so impairing the incentive to create costly news-gathering operations that news services like Reuters and the Associated Press would become the only professional, nongovernmental sources of news and opinion.

I see the problem and the danger to society in losing newspapers and their reporters, but it seems unworkable to prevent linking.  Perhaps a system could be implemented requiring sites that link to a news story or to registered and copyrighted material to pay a small fee for each click through from their site.  It could be similar to and even administered by the Copyright Clearance Center which currently offers licenses that grant rights to incidental copying of the copyrighted content of member organizations.

Additionally, preventing summarizing of factual news stories would be exceptionally difficult to implement.  But the newspapers can prevent direct copying of the text of articles from their sites and can always require subscriptions or passwords to get to their content.

But while I am not sure that these suggestions are workable, there is little doubt that newspapers in particular need new avenues to monetize their content in order to maintain economically viable.  And as someone who has three papers delivered to his door daily, I fully support protecting the print news media.

Northern District of Illinois Expands E-Filing

As of June 15, the Northern District of Illinois is requiring that all sealed or restricted documents be e-filed through the Northern District's ECF system.  And sealed documents may only be filed pursuant to a protective order or by leave of court.  Click here for the Court's filing under seal instructions.

The Northern District is also requiring that cases be opened electronically through the Northern District's ECF system.  Click here for the Court's instructions for opening civil cases.

Meet the Bloggers VI at IP Business Congress Tonight

 IP Business Congress 2009 is in Chicago through this afternoon.  Unfortunately, client commitments have kept me from attending as much of the event as I would have liked, but you can see from the following Twitter live microblogs of the event that it was an excellent program:  @DuncanBucknell; @AwakenIP; @IPBC2009; @JackDTodd; and @thinkfireip.  Or check out a search for microblog posts about the event here.  And watch for a few interviews from the event on the Blog over the next few weeks.

And before you leave the IPBC, stop by Meet the Bloggers VI at the world famous Billy Goat Tavern.  The Billy Goat is just down and below the street from the Four Seasons at 430 N. Michigan Avenue.  Go to the Tribune Tower on Michigan Avenue and take the stairs below the sidewalk to find the Billy Goat.  Thanks again to Meet the Blogger creator and Meet the Blogger III host John Welch of the TTABlog for allowing me to use the Meet the Blogger name.

Happy Father's Day from Blawg Review

Blawg Review #217 is up at Securing Innovation, brought to you by the IP.com team -- click here to read it.  This Review's theme is Father's Day, and it is very well done.  In addition to the heavy IP focus, we learn that although it should be written as plural possessive, Fathers' Day, historically it has been known by the singular possessive, Father's Day.  And it has pictures of many legal blogging fathers and their children, including a shot of me with my father and my son enjoying a Chicago Blackhawks game late this season.  The Review also reminds people to join me at  Meet the Bloggers at the Billy Goat Tavern tomorrow, Tuesday, night after IPBC 2009.

Obama Announces Kappos as Nominee for Director of the Patent Office

Yesterday, President Obama announced his intent to nominate David J. Kappos as the next Director of the Patent and Trademark Office, also known as Under Secretary of Commerce for Intellectual Property.   Kappos is currently IBM's Vice President and Assistant General Counsel, Intellectual Property.  Kappos earned a degree in electrical and computer engineering from the University of California Davis and received his law degree from Berkley.  Here is some of Kappos biography from President Obama's press release on the pending nomination:

Mr. Kappos serves on the Board of Directors of the American Intellectual Property Law Association, the Intellectual Property Owners Association, and the International Intellectual Property Society. He is also the Vice President of the Intellectual Property Owners Association. He has held various previous leadership positions in intellectual property law associations in Asia and the U.S. He has spoken widely in Asia, Europe, and the U.S. on intellectual property topics. Mr. Kappos received his Bachelor of Science Degree in Electrical and Computer Engineering from the University of California Davis in 1983, and his law degree from the University of California Berkeley in 1990. He joined IBM in 1983 as a Development Engineer and has served as an Intellectual Property Law attorney in IBM’s Storage Division and Litigation group, as IP Law Counsel in IBM Software Group, as Assistant General Counsel in IBM Asia/Pacific, IBM Corporate Counsel and as Assistant General Counsel prior to his current position.

For initial reactions from the blogosphere, check out:  ChipLawIPWatchdog; Patent Law Insights; and Patently-O.

Post-Filing Patent Assignement Cannot Create Standing

MacLean-Fogg Co. v. Edge Composites, L.L.C., No. 08 C 6367, Slip Op. (N.D. Ill. Apr. 14, 2009) (Conlon, J.).

Judge Conlon granted defendants' motion to dismiss.  Plaintiffs (collectively "MacLean") alleged that defendant Edge Composites ("Edge") violated plaintiffs' carbon fiber bicycle wheel patent and together with the individual defendant, a former MacLean employee and current Edge employee, violated MacLean's trade secrets, as well as breaching the individual defendant's nondisclosure agreement with MacLean.  First, the Court held that the MacLean entities that lacked an ownership in the patent when the complaint was filed lacked standing.  It was not sufficient that the MacLean entities entered an agreement creating joint ownership amongst them after the complaint was filed.

The Court also held that it lacked supplemental jurisdiction over MacLean's state law trade secret and breach of contract claims.  The patent infringement claims were based upon manufacture and sale of carbon fiber wheels.  The trade secret and breach of contract claims were based upon defendants' alleged  use of MacLean's trade secrets.  Because MacLean never met its burden of showing how the claims overlapped factually, the Court dismissed the state law claims for lack of subject matter jurisdiction.

Continue Reading...

IP Business Congress Comes to Chicago

Next week, June 21-23, Chicago plays host to IAM's IP Business Congress 2009.  IAM promises that attendees will include "Chief IP Officers from Fortune 500 companies, heads of IP at other major companies, global IP thought leaders and senior policy makers."  And the conference also will include an impressive list of bloggers, including Peter Zura, the anonymous editor of Blawg Review and me, using a generously offered press pass.  The faculty for the event is very impressive, including the following confirmed speakers:

  • Marshall Phelps, Corporate VP for IP Policy and Strategy, Microsoft
  • Ruud Peters, CEO, Philips IP & Standards
  • Carl Horton, Chief IP Counsel, GE
  • Scott Frank, President and CEO, AT&T Intellectual Property
  • Todd Dickinson, Executive Director, AIPLA
  • Ciarán McGinley, Head of the Controlling Office, European Patent Office
  • Beatrix de Russé, Executive VP of IP and Licensing, Thomson
  • Keith Bergelt, CEO, Open Invention Network
  • Sherry Knowles, Senior VP and Chief IP Counsel, GlaxoSmithKline
  • Marcella Watkins, Managing Counsel, IP, Shell Oil Company
  • Don Merino, General Manager Acquisitions, Intellectual Ventures
  • Damon Matteo, Chief IP Officer and VP IP, Palo Alto Research Center

For more information on the event and to register, click here.  You can still register and if you register online using the code WC10, you will get a reduced rate of $1,350, 10% off of the full $1,500 rate.

Finally, whether or not you can make it to the conference, if you are in Chicago Tuesday night, June 23, come to Meet the Bloggers VI at the world famous Billy Goat Tavern.  It will be a great chance to meet law bloggers from Chicago and around the world, and to discuss insights gained at the conference.  I hope to see you at both the conference and the Billy Goat.

 

Color Trademark Infringement is Question of Fact

WMH Tool Group, Inc. v. Woodstock Int'l, Inc., No. 07 C 3885, Slip Op. (N.D. Ill. Apr. 8, 2009) (Darrah, J.).

Judge Darrah granted in part defendants' motion for summary judgment as to plaintiff's Lanham Act claims related to plaintiff's trademark for white exteriors applied to woodworking and metalworking machines.  Defendants sought summary judgment based upon the fact that their products were green and tan, and that plaintiff's counsel admitted that green and tan machines did not infringe plaintiff's trademark white color.  But the Court held that summary judgment was not appropriate even if plaintiff admitted the green and tan products did not infringe because the parties disputed which of the products were green and tan and whether defendants also sold green and white products.  Additionally, the Court held that there was a question of fact as to whether the alleged green and white products infringed plaintiff's trademarks.  The Court did, however, grant summary judgment as to plaintiff's dilution claim because plaintiff did not respond to the summary judgment arguments.

Act Now to Protect Your Trademarks on Facebook

Tomorrow, Saturday, June 13 at 12:01 a.m., Facebook begins allowing users to create personalized URLS for Facebook pages.  A user's Facebook page has previously been designated by a seemingly random number assigned for each user.  But starting just after midnight tonight, users will be able to register more meaningful URLs, such as facebook.com/RDavidDonoghue.  Facebook users are very excited about this and it could be good for business that utilize Facebook, but it also poses a threat for trademark holders.  Facebook users could accidentally or intentionally register site names including your trademarks or terms confusingly similar to them.  To Facebook's credit, they have provided a mechanism to help prevent trademark infringement.  You can click here for an online Facebook form which asks for your name, contact email, company, exact trademark and trademark registration number.  It is unclear whether Facebook will act on common law trademarks that have not been registered.  Additionally, you will need to resubmit the form separately for each trademark you wish to identify to Facebook.  I would encourage trademark owners to register their marks with Facebook and to strongly consider securing personalized Facebook pages with their trademarks to further protect themselves, if you use Facebook with your business or think that someone else might.

Chicago-Skippered Team USA Places Third in Patent Cup Regatta

Team USA placed an impressive third in the international Patent Cup Regatta.  Team USA was skippered by Chicago patent attorneys Gary Ropski, President of Brinks Hofer, and Leif Sigmond, a former Managing Partner at McDonnell Boehnen Hulbert & Berghoff.  This year's Cup was held at the Yacht Club de Ilhabela, located on the island of Ilhabela on the northeast coast of the Brazilian state of Sao Paolo.  Ropski's and Sigmond's crew included:  Marcus Thymian of McDonnell Boehnen and Derek Minihane , in-house counsel at Intermolecular.  In 2007, the team also placed third when the competition was in Venice.  Team USA won the United States' first Patent Cup in 2006, when the event was hosted in Chicago.  Congratulations Team USA!

The Cup was created in 1989 by a German patent attorney and a French patent attorney to foster camaraderie and relationships among IP lawyers internationally.  The Cup is held in a different country each year, with the host country organizing the event, providing vessels and setting the rules.

Court Orders Production of Allegedly Privileged Documents After In Camera Review

 

Heriot v. Byrne, No. 08 C 2272, Slip Op. (N.D. Ill., Apr. 9, 2008) (Ashman, Mag. J.).

Judge Ashman issued this Order finding that certain of defendants' allegedly privileged documents were privileged and ordering that others be produced.  The Court did not discuss specific documents or the analysis that went into the decisions.  But the Court  did provide the following list of general explanations for why some documents asserted to be privileged were in fact not privileged and had to be produced:

 

  • not confidential;
     
  • did not reveal privileged communications, directly or indirectly; or
     
  • the advice was that of accountants, not lawyers, and was not used to assist the lawyers in giving legal advice.

Both young lawyers preparing privilege logs and senior lawyers reviewing them for exchange would do well to read this list.  It covers most of the common reasons documents are erroneously withheld as privileged.

Alleged TM Owner's State of Mind is a Question of Fact

SPSS Inc. v. Nie, No. 08 C 66, Slip Op. (N.D. Ill. Apr. 2, 2009) (Darrah, J.).

Judge Darrah denied the parties' cross-motions for summary judgment.  Plaintiff SPSS sought a declaratory judgment that defendants, SPSS's founders and former officers, were estopped from asserting any rights pursuant to the parties' Trademark Agreement.  Defendants countersued for trademark infringement.  While still officers of SPSS, defendants entered a Trademark Agreement with SPSS by which defendants gave SPSS rights to use the SPSS trademark.  Defendants argue that SPSS's continued use of the SPSS mark is an infringement.  SPSS argued that it owns the mark and, as proof, cited various documents signed by a defendant when SPSS went public.  In those documents, defendants allegedly made assurances that SPSS owned its trademarks and otherwise failed to disclose the Trademark Agreement. 

The Court denied plaintiff's summary judgment motion because the parties disputed defendant's state of mind when the documents at issue were signed.  Because  estoppel required a finding as to defendant's intent when he signed the documents, summary judgment was not appropriate.  Similarly, the Court denied the parties' cross-motions regarding SPSS's trademark infringement claim.  There were factual disputes regarding defendant's conduct during the public offering, which party made the first sale using the SPSS mark, and SPSS's knowledge of the Trademark Agreement.