2 here in the orld Should I File? Single over the 20-year life of the patent.
3 here in the orld Should I File? ith this potential level of investment in every invention, each individual filing must be carefully considered relative to several factors:
5 here in the orld Should I File?
6 here in the orld Should I File? Relative Cost to Obtain and Maintain A atent United States CT O via CT South Korea Japan Indonesia Vietnam Brazil China Russia Norway Thailand Turkey Taiwan Germany Austria Czech Republic Argentina Hungary Netherlands Finland Mexico Morocco Slovakia Saudi Arabia oland Hong Kong Italy Denmark Years Years Years Years Years US $
7 here in the orld Should I File? Relative Cost to Obtain and Maintain A atent hilippines eru Sweden Colombia Malaysia Spain ortugal France Australia Singapore gypt Greece Israel Canada Venezuela akistan India Great Britain Ireland Switzerland Belgium Chile Bangladesh Luxembourg New Zealand South Africa Years Years Years Years Years US $
8 here in the orld Should I File? Caveats Regarding Cost Data Charts Cost data is a compilation of actual charges billed to the Company over a period of two to three years. The cost of Company attorneys and agents is NOT included in the cost figures. (, US and CT costs are separated from the other data as we act as our own agents for those proceedings). Data is current as of 2002/2003. Remember, official fees and professional costs change over time. Data is based on applications filed in nglish. Translation costs included in the data are for required translations into non- nglish languages. Costs are in US$ using conversions applicable at the time the charges were received. Data should be used for order of magnitude, cross-country cost comparisons ONLY. Figures are historic and are not sufficiently accurate to project actual cost of a new filing.
9 here in the orld Should I File? For any application, the cost to file, obtain and maintain a patent in any given country at any given time is fixed and generally known. This cost defines the extent of the monetary investment being made to obtain exclusivity. The remaining factors introduce intangibles -- business and legal judgment, business goals, evolving laws and rules, politics, etc. into the equation.
10 Ability to Obtain & nforce
11 here in the orld Should I File? Ability to Obtain and nforce Including: Considerations relating to obtaining an enforceable patent including timing, quality of examination, etc. The Current and xpected Future State of the atent Law Considerations relating to enforcing the patent right, including costs, timing, immediate remedies, long-term remedies, availability/size of damage awards, etc.
12 Considerations relating to obtaining an enforceable patent Cost and ease of filing and prosecution Competence and reasonableness of examiners Duration of examination Quality of examination here in the orld Should I File? Key Considerations Relating to Obtaining a atent Type, duration, cost and reasonableness of appeals Type, duration and cost of oppositions Announced/xpected/Contemplated changes in patent office operations The Current and xpected Future State of the atent Law Considerations relating to enforcing the patent right
13 Considerations relating to obtaining an enforceable patent here in the orld Should I File? Key Considerations Relating to Obtaining a atent The Current and xpected Future State of the atent Law Considerations relating to enforcing the patent right
14 Considerations relating to obtaining an enforceable patent here in the orld Should I File? Key Considerations Relating to The Current and xpected Future State of the atent Law Considerations relating to enforcing the patent right Obtaining a atent Of the key areas to consider when determining where to file, this is the least important because: An applicant has some degree of control over the outcome of the filing and prosecution process. An applicant can prevent a case from issuing with a claim scope that is beyond which the applicant is entitled through amendment in light of all prior art known to the applicant. This is true regardless of the competency of the examination or any of the other factors imposed on the application by the particular patent system.
15 The Current and xpected Future State of the atent Law here in the orld Should I File? Considerations relating to obtaining an enforceable patent Considerations relating to enforcing the patent right Key Considerations Relating to the State of the atent (and Other) Law(s) atentable and unpatentable subject matter harmaceuticals, Secondary Uses, Business Methods, Software, Methods of Medical Treatment, Chemical Compounds, etc. Novelty standards (for both publication and use) Grace periods following public exposure GATT/TRIS compliance; aris Conv./TO membership CT and/or regional office membership rovisional protection following publication/laying open
16 The Current and xpected Future State of the atent Law here in the orld Should I File? Considerations relating to obtaining an enforceable patent Considerations relating to enforcing the patent right Key Considerations Relating to the State of the atent (and Other) Law(s) orking requirements/consequences of non-working arallel imports rior user rights Border rotection Technology transfer requirements/restrictions Other legal and regulatory requirements/laws Announced/xpected/Contemplated changes in the Law
17 Considerations relating to enforcing the patent right here in the orld Should I File? Considerations relating to obtaining an enforceable patent The Current and xpected Future State of the atent Law Key Considerations Relating to nforcing the atent Right Available remedies for infringement under local law reliminary/permanent injunctions, Seizure actions, Border actions, Availability of and amounts of/limits on damage awards, Criminal/civil penalties, etc. System(s) for dispute resolution Civil courts, atent courts, atent Office proceedings, Separate validity and infringement proceedings, Mediation, Arbitration, etc. How long for resolution? How expensive? Availability of and rules of discovery Technical competence of courts Historical level and direction of any court bias
18 Considerations relating to enforcing the patent right here in the orld Should I File? Considerations relating to obtaining an enforceable patent The Current and xpected Future State of the atent Law Key Considerations Relating to nforcing the atent Right olitical/judicial climate: neutral or pro- or anti- patent neutral or pro- or anti- foreign patentee Announced/xpected/Contemplated changes in enforcement procedures/systems/timing/costs Changes in political/judicial attitudes towards patents
19 here in the orld Should I File? An valuation Over the past several years we gathered input in an attempt to fully understand and evaluate a number of patent and legal systems. In our efforts, we gathered information, opinions and impressions from a wide variety of sources: Our own experience with filing, prosecution and enforcement The experience and conclusions of several global law firms The input and experience of our local agents in the specific countries Reports from the Office of the U.S. Trade Representative Any other experienced and trusted input on the subject
20 here in the orld Should I File? An valuation This data was compared to our own vision of a workable, competent, fair and realistic patent and enforcement system. Our comparison between the experiential data from these multiple sources and our vision of a good, workable system resulted in a chart detailing our conclusions regarding the relative positions of various patent and enforcement systems to one another.
21 here in the orld Should I File? An valuation The charts are not to be viewed as promoting or denigrating any countries patent or enforcement system. It simply provides a single opinion of how the various systems compare to one another using the standard of a mythical good, workable and realistic patent and enforcement system as envisioned by one group of people. Different evaluators using a different set of criterion for their standard patent and enforcement system could easily come to very different conclusions regarding the relative position of the various systems.
22 here in the orld Should I File? An Assessment of Various atent Systems Against One User s xpectations Country C T O T O Closer to Desired System ?? Farther from Desired System AR AT AU BD B BR CH/LI CA CL CN CO CZ D DK G - - S
23 here in the orld Should I File? An Assessment of Various atent Systems Against One User s xpectations Country C T O T O Closer to Desired System ?? Farther from Desired System FI FR GB GR HK HU I ID IN IL IT J KR LU MX MY NL NO
24 here in the orld Should I File? An Assessment of Various atent Systems Against One User s xpectations Country C T O T O Closer to Desired System ?? Farther from Desired System NZ K H O T RU SA S SG SK T TH TR US V VN ZA
25 here in the orld Should I File? Caveats Regarding System Comparison Charts Data used for comparisons are based on experience and opinions regarding the various systems from several sources. The data from the various sources plus any input from the USTR website for each listed country was compared to a set of criterion defining the features of a good, workable and realistic patent system as designed/envisioned by the evaluators. In other words, what attributes would a really good patent and enforcement system exhibit to completely meet the needs of one U.S. based multinational corporation. valuators having different desires and/or expectations from their vision of a good, workable and realistic patent system could arrive at a considerably different relative comparison between the various systems. This relative rating is not to be viewed as endorsing or detracting from any given country s patent and enforcement system. This relative comparison was made in 2002/2003.
26 here in the orld Should I File? Final Thoughts Regarding atent and nforcement Systems The life of a granted patent is 20 years from the date of filing. The evaluation of the patent and enforcement systems that will impact your filing decision is made before this 20-year period begins. atent (and other) laws, patent offices and court systems can and do change with time. A poor enforcement system today may improve and be a good system some years in the future. Your patent application will probably take from 3 to 5 years to grant. nforcement will be sometime after that.
27 here in the orld Should I File? Final Thoughts Regarding atent and nforcement Systems The art in factoring patent and enforcement system evaluation data into the consideration of where to file lies in the ability to see the future and judge where the system will be at the time you will be prosecuting and later enforcing your patent. It is not easy, but for proper filing decisions, for proper patent portfolio management, and to help insure the maximum return on your I protection expenditures, each applicant, each practitioner must keep up-to-date on the patent and enforcement systems of interest and continually update the relative position of each country in relation to their particular vision of the ideal system.
28 Need For xclusivity
29 here in the orld Should I File? The Business/Commercial Need for xclusivity The single most important consideration in deciding where to file is the business need for exclusivity in the country under consideration. A strong business need should outweigh every criterion we have previously discussed. If exclusivity is required for a successful business venture, then filing in a high cost country with a low rated patent and enforcement system may be justified. Remember: ANY LAC YOU DON T FIL YOU HAV NO CLAIM TO XCLUSIVITY.
30 here in the orld Should I File? The Business/Commercial Need for xclusivity There are no formulas or schemes to make the filing decisions. ach filing decision will depend on a number of factors that vary dramatically across the business community; every business, every product category, has individual and diverse goals and needs. To aid in making the business decision regarding where to file, I suggest each applicant consider a series of questions. Remember: ANY LAC YOU DO FIL SHOULD ROVID AN ADQUAT RTURN ON YOUR FILING INVSTMNT.
31 here in the orld Should I File? The Business/Commercial Need for xclusivity It is not possible to answer this question generically. The business needs of each individual applicant vary too greatly to give a stock formula or universal plan. ach applicant must look at their individual business plans, past experience in similar considerations, future expectations theirs and those of any expected licensees, to decide where to enter the national phase. After considering their plans and past experiences, I suggest answering some basic questions to aid in making the final national phase entry decisions: Remember: ANY LAC YOU DO FIL SHOULD ROVID AN ADQUAT RTURN ON YOUR FILING INVSTMNT.
32 here in the orld Should I File? The Business/Commercial Need for xclusivity here is the market for the invention local, regional, global? ho is the customer for the invention? ho is the competition? here will the claimed product be manufactured or the claimed process used? here does the competition manufacture its products? How easy (or difficult) would it be for competition to design around the claimed invention? How long and what resources would it take?
33 here in the orld Should I File? The Business/Commercial Need for xclusivity How easy (or difficult) would it be for a third party to copy the invention? Is there an incentive to copy your invention in unprotected countries? How costly would it be for a third party to copy and market the invention? hat is the smallest market size that would economically justify a third party copying the invention?
34 here in the orld Should I File? The Business/Commercial Need for xclusivity Is the invention on-point with your marketing strategy or is it defensive? hat are the consequences to your business if the invention is copied in some/all countries? By geographic area, what is more important, exclusivity, freedom-to-practice or both?
35 here in the orld Should I File? The Business/Commercial Need for xclusivity For what period of time and where is exclusivity commercially important? How long does it take to get a patent in these countries? hat is the local law regarding provisional protection? hat is your patenting budget? hat other developments are competing for this budget money? And, as we have discussed hat is the current state of the patent and enforcement system? Is it changing for the better? orse? hat does it cost?
36 Return On Investment
37 here in the orld Should I File? Return on Investment Obtaining an adequate return on the investment (ROI) made in filing, obtaining and maintaining patent applications is a critical factor in the filing decision. Unfortunately neither the existence nor magnitude of the ROI is known at the time the applications are filed. One can only rely on past experience and future projections to try and guesstimate the expected ROI. For applicants manufacturing and/or selling a product, learning the actual ROI may be impossible you will never really know if the absence of a filed patent would have affected your commercial success, or vice versa.
38 here in the orld Should I File? Return on Investment For applicants who license or sell their patents, an actual ROI can be determined from the investment and the revenue from the patent sale or license. A patent is a business tool. In all cases, an applicant must expect an adequate return on the investment on money needed to obtain and maintain each patent application. A patent must pay its own way, and provide adequate revenue (in one form or another) for the patent holder. If it does not, then the patent is a drain on the business and (most likely) should not have been filed.
39 here in the orld Should I File? Filing a patent application is a business decision, and, like any major business decision, it should be carefully considered in light of applicable factors. The key factors discussed include Cost, Ability to Obtain and nforce, Need for xclusivity, and Return on Investment. To maximize the chance for an adequate return on investment, the decision process cannot stop with the filing decision. The filing decision is just the first in a series of portfolio management decisions needed. At every logical decision point (CT national phase entry, O validation, etc.) and also on a periodic basis (yearly, bi-yearly) each application/patent should be reviewed. Applications/patents no longer meeting your criterian should be abandoned.
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