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Indiana Intellectual Property Blog

~ Trademark and Copyright Law Updates in Indiana

Indiana Intellectual Property Blog

Category Archives: Tech Developments

U.S. Patent Office Announces Program for Accelerated Review of Green Technology Patent Applications

11 Friday Dec 2009

Posted by Kenan Farrell in Federal Initiatives, Intellectual Property, Patent, Tech Developments

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The U.S. Patent and Trademark Office (USPTO) recently launched the Green Technology Pilot Program to accelerate the development and deployment of green technologies, help create green jobs, and promote U.S. competitiveness in the clean technology sector. In the press release announcing the Pilot Program, the Under Secretary of Commerce for Intellectual Property and Director of the USPTO, David Kappos explained, “Every day an important green tech innovation is hindered from coming to market is another day we harm our planet and another day lost in creating green businesses and green jobs.”

According to its own statistics, the USPTO takes on average 30 months to issue an initial office action for green technology patent applications and approximately 40 months to make a final determination on the patentability of such applications. In the normal process, applications are taken up for examination based on their filing date. Recognizing that over a three and half year wait is too long in the green technology sector, the Pilot Program provides a mechanism for green technology patent applications to be advanced, out of turn, to examination without having to pay any additional fees or provide any additional examination support documentation. The USPTO estimates that this Pilot Program will reduce the examination time of these applications on average by one year.

The Pilot Program broadly defines the term “green technologies” as technologies that pertain to environmental quality, energy conservation, development of renewable energy resources, or greenhouse gas emission reduction. Despite this broad definition, the USPTO currently requires that a patent application be classified in one of 79 specific U.S. patent classifications outlined in the Pilot Program to be eligible.

The Pilot Program only applies to non-provisional utility applications filed prior to December 8, 2009 that have yet to be examined. Applications that are either filed after December 8, 2009 or already being examined are not eligible for the Pilot Program. The Pilot Program is set to expire on December 8, 2010 and the USPTO only guarantees that it will accept the first 3,000 petitions to make an application special under the Pilot Program. Thereafter, the USPTO will evaluate whether the Pilot Program should be extended based on the USPTO’s workload and available resources. Thus, time is of the essence for those wanting to take advantage of the Pilot Program.

While there are limitations on the number and type of claims that can be included in the application and a requirement that an applicant waive its right to object to a restriction requirement, the Pilot Program does provide an inexpensive mechanism to expedite the examination of a green tech patent application. Such an expedited examination can prove beneficial to those looking to enforce their patent rights as quickly as possible and/or those looking for funding options.

Source: Inside INdiana

The Official Notice of the Pilot Program can be found at 74 Fed. Reg. 64666 (Dec. 8, 2009) and the USPTO Press Release for the Pilot program can be found at www.uspto.gov/news/pr/2009/09_33.jsp.

Indiana Patent Income Tax Exemption – IC 6-2-3-21.7

04 Wednesday Nov 2009

Posted by Kenan Farrell in Indiana, Intellectual Property, Legislation, Patent, Tech Developments

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Tags

Tax

Inventors, patent owners, and their lawyers and accountants should be aware of the Indiana Patent Income Exemption, Indiana Code 6-3-2-21.7.

The exemption aims to encourage innovation by giving entrepreneurs and small businesses a break on Indiana state income taxes. Indiana was the first state to offer this type of incentive.  In an effort to strengthen the state’s existing focus on biotech, pharmaceutical, medical device and equipment companies, the law strives to encourage new patents from Indiana companies and to make the state more attractive to new companies looking for a profitable marketplace.

The law grants a tax exemption on patent income, which includes licensing fees, royalties, patent sale or patent-covered- product sales. Note that the exemption is available only to businesses with less than 500 employees and only covers utility and plant patents, since design patents focus on ornamental features and exclude functional innovations.

IC 6-3-2-21.7
Exemption for certain income derived from patents
Sec. 21.7. (a) This section applies to a qualified patent issued to a taxpayer after December 31, 2007.
(b) As used in this section, “invention” has the meaning set forth in 35 U.S.C. 100(a).
(c) As used in this section, “qualified patent” means:
(1) a utility patent issued under 35 U.S.C. 101; or
(2) a plant patent issued under 35 U.S.C. 161;
after December 31, 2007, for an invention resulting from a development process conducted in Indiana. The term does not include a design patent issued under 35 U.S.C. 171.
(d) As used in this section, “qualified taxpayer” means a taxpayer that on the effective filing date of the claimed invention:
(1) is either:
(A) an individual or corporation, if the number of employees of the individual or corporation, including affiliates as specified in 13 CFR 121.103, does not exceed five hundred (500) persons; or
(B) a nonprofit organization or nonprofit corporation as

specified in:
(i) 37 CFR 1.27(a)(3)(ii)(A) or 37 CFR 1.27(a)(3)(ii)(B); or
(ii) IC 23-17; and
(2) is domiciled in Indiana.
(e) Subject to subsections (g) and (h), in determining adjusted gross income or taxable income under IC 6-3-1-3.5 or IC 6-5.5-1-2, a qualified taxpayer is entitled to an exemption from taxation under IC 6-3-1 through IC 6-3-7 for the following:
(1) Licensing fees or other income received for the use of a qualified patent.
(2) Royalties received for the infringement of a qualified patent.
(3) Receipts from the sale of a qualified patent.
(4) Subject to subsection (f), income from the taxpayer’s own use of the taxpayer’s qualified patent to produce the claimed invention.
(f) The exemption provided by subsection (e)(4) may not exceed the fair market value of the licensing fees or other income that would be received by allowing use of the qualified taxpayer’s qualified patent by someone other than the taxpayer. The fair market value referred to in this subsection must be determined in each taxable year in which the qualified taxpayer claims an exemption under subsection (e)(4).
(g) The total amount of exemptions claimed under this section by a qualified taxpayer in a taxable year may not exceed five million dollars ($5,000,000).
(h) A taxpayer may not claim an exemption under this section with respect to a particular qualified patent for more than ten (10) taxable years. Subject to the provisions of this section, the following amount of the income, royalties, or receipts described in subsection (e) from a particular qualified patent is exempt:
(1) Fifty percent (50%) for each of the first five (5) taxable years in which the exemption is claimed for the qualified patent.
(2) Forty percent (40%) for the sixth taxable year in which the exemption is claimed for the qualified patent.
(3) Thirty percent (30%) for the seventh taxable year in which the exemption is claimed for the qualified patent.
(4) Twenty percent (20%) for the eighth taxable year in which the exemption is claimed for the qualified patent.
(5) Ten percent (10%) each year for the ninth and tenth taxable year in which the exemption is claimed for the qualified patent.
(6) No exemption under this section for the particular qualified patent after the eleventh taxable year in which the exemption is claimed for the qualified patent.
(i) To receive the exemption provided by this section, a qualified taxpayer must claim the exemption on the qualified taxpayer’s annual state tax return or returns in the manner prescribed by the department. The qualified taxpayer shall submit to the department all information that the department determines is necessary for the determination of the exemption provided by this section.

(j) On or before December 1 of each year, the department shall provide an evaluation report to the legislative council, the budget committee, and the Indiana economic development corporation. The evaluation report must contain the following:
(1) The number of taxpayers claiming an exemption under this section.
(2) The sum of all the exemptions claimed under this section.
(3) The North American Industry Classification System code for each taxpayer claiming an exemption under this section.
(4) Any other information the department considers appropriate, including the number of qualified patents for which an exemption was claimed under this section.
The report required under this subsection must be in an electronic format under IC 5-14-6.

For a full breakdown of the law,  see IP Today.

indianaflag

Indiana University to utilize “Facebook for Scientists”

26 Monday Oct 2009

Posted by Kenan Farrell in Federal Initiatives, Indiana, Intellectual Property, Tech Developments

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BLOOMINGTON, Ind. – Indiana University has received more than $1.8 million from the National Institutes of Health to collaborate on a $12.2 million, seven-university project designed to network researchers around the country.

samplegateWhile the proposed new networking system will contain authentication mechanisms to protect sensitive data and intellectual property, it is being described as a Facebook for scientists.

IU will be implementing VIVO, a networking template currently in place at Cornell University that brings together publicly available information on the people, departments, graduate fields, facilities and other resources that collectively make up the research and scholarship environment in all disciplines at Cornell.

“This could gather all the related information for one researcher into one place and further links to any other related semantic datasets. Linking and formal representation generate great power to realize more intelligent knowledge discovery.”

Click here for full story.

A Legal Primer for Bloggers – Anonymity

23 Friday Oct 2009

Posted by Kenan Farrell in Authors, Bloggers, Social Media, Tech Developments

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A Legal Primer for Bloggers, Part 4 – Anonymity

This post continues a series dealing specifically with the legal issues that bloggers should be thinking about.  Part 4, Anonymity, is especially timely, as Indianapolis-based Butler University has recently initiated a lawsuit against an anonymous blogger for making allegedly libelous and defamatory statements about school administrators on his blog, The True BU. The story is covered in detail at Inside Higher Ed. For a nice timeline of the buildup to the Butler lawsuit, see Brad Ward’s post over at SquaredPeg.

First, it’s well established that there is a right to blog anonymously in the United States.  The Supreme Court has repeatedly upheld the First Amendment right to speak anonymously, which applies also to blogs: “author is generally free to decide whether or not to disclose his or her true identity. The decision in favor of anonymity may be motivated by fear of economic or official retaliation, by concern about social ostracism, or merely by a desire to preserve as much of one’s privacy as possible. Whatever the motivation may be…the interest in having anonymous works enter the marketplace of ideas unquestionably outweighs any public interest in requiring disclosure as a condition of entry. Accordingly, an author’s decision to remain anonymous, like other decisions concerning omissions or additions to the content of a publication, is an aspect of the freedom of speech protected by the First Amendment” (McIntyre v. Ohio Elections Comm’n, 514 U.S. 334 (1995)).

bloganon

However, having the right to blog anonymously doesn’t ensure that you’ll be successful in doing so.  As the aforementioned Butler case shows, there’s a good likelihood that your identity could be discovered. There are plenty of tips and techniques readily available online to both help you maintain your anonymity and how to peek behind the veil of an anonymous blogger. Side-by-side in the Google search results are both A Technical Guide to Anonymous Blogging and How to Unmask an Anonymous Blogger.  If you try to blog anonymously through a third-party service, you may be subject to subpoenas seeking your identity from your blogging service provider.  If you receive notice of a subpoena and you wish to retain your anonymity, you should contact an attorney about filing a motion to quash the subpoena. Many courts require the subpoenaing party to show a compelling need for the information that outweighs the speakers’ constitutional rights to free speech and privacy.

Here are some quick tips if you want to begin blogging anonymously (see EFF’s “How to Blog Safely” for a lengthy discussion of these tips):

  1. Use a Pseudonym and Don’t Give Away Any Identifying Details
  2. Use Anonymizing Technologies
  3. Use Ping Servers
  4. Limit Your Audience
  5. Don’t Be Googleable
  6. Register Your Domain Name Anonymously

anonymous

The next (and final) post in this series will cover privacy rights.  Be aware what you can and cannot say about others, distinguishing between private and public individuals.

A Legal Primer for Bloggers

Part 1: Introduction

Part 2: Intellectual Property

Part 3: Defamation

Part 4: ANONYMITY

Part 5: Privacy

A Legal Primer for Bloggers – Defamation

25 Friday Sep 2009

Posted by Kenan Farrell in Authors, Bloggers, Defamation, Indiana, Social Media, Tech Developments

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A Legal Primer for Bloggers, Part 3 – Defamation

This post continues a series dealing specifically with the legal issues that bloggers should be thinking about.  Part 3, Defamation, will explore your options when somebody has posted something false and damaging about you, including some common defenses.

slander

Consider the following scenarios: You’re out surfing the internet one day and come across a false and damaging statement that someone has written about you on their blog or website.  Maybe you’re the one writing a scathing review about a new hit movie, including unsavory stories about its lead actress.   Or maybe you wrote a glowing review but someone else leaves a libelous comment to your post.  In all of these situations, you’ll want to be aware of your rights and obligations under defamation law.  Don’t think so? Check out this recent case where a blogger was sued for defamation by a Chinese game developer for his critical review of their product.

What is defamation?

Generally speaking, defamation is the issuance of a false statement about another person, which causes that person to suffer harm. Slander involves spoken defamatory statements. Libel involves the making of defamatory statements in a printed or fixed medium, such as a newspaper, book or blog.

Defamation laws vary from state to state.  Indiana has the following laws:

IC 34-15-1-1
Allegation; burden of proof

Sec. 1. In an action for libel or slander, it is sufficient to state generally that the defamatory matter published or spoken was about the plaintiff. If the defendant denies the allegation, the plaintiff must prove at trial the facts showing that the defamatory matter was published or spoken about the plaintiff.

IC 34-15-1-2
Truth; mitigating circumstances; evidence

Sec. 2. In an action for libel or slander, the defendant may allege:
(1) the truth of the matter charged as defamatory; and
(2) mitigating circumstances to reduce the damages;
and give either or both in evidence.

Indiana does have a retraction statute that provides protection from defamation lawsuits if the publisher retracts the allegedly defamatory statement according to prescribed guidelines. The retraction must be published within three days and in as conspicuous a place and type as the original item was transmitted. It’s important to note that retraction affects the calculation of damages, not liability.  Few courts have addressed retraction statutes with regard to online publications like blogs, but a Georgia court denied punitive damages based on the plaintiff’s failure to request a retraction for something posted on an Internet bulletin board.

IC 34-15-4-3
Retraction mitigates damages

Sec. 3. The plaintiff … may recover only actual damages if:
(1) it appears at the trial of the action that:
(A) the article was published or transmitted in good faith; and
(B) the falsity of the article was due to mistake or misapprehension of the facts;
(2) a full and fair retraction of a factual statement alleged to be false and defamatory was … transmitted to its members or subscribers by the news service.

What about defamatory statements that someone else makes in my comments?

The ability to comment on a blog is one of the key features of the blogosphere. Usually it promotes interactivity and civil discourse.  Of course, sometimes a comment will include defamatory statements.  Generally, anyone who repeats someone else’s statements is just as responsible for the defamatory content as the original speaker if they knew, or had reason to know, of the defamation.  That seemingly would put a very large burden on bloggers to carefully monitor and censor comments.  Fortunately, the Communications Decency Act, Section 230 provides a strong protection against liability for Internet “intermediaries” who provide or republish speech by others.

Section 230

(c) Protection for “Good Samaritan” blocking and screening of offensive material
(1) Treatment of publisher or speaker
No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider.
(2) Civil liability
No provider or user of an interactive computer service shall be held liable on account of—
(A) any action voluntarily taken in good faith to restrict access to or availability of material that the provider or user considers to be obscene, lewd, lascivious, filthy, excessively violent, harassing, or otherwise objectionable, whether or not such material is constitutionally protected; or
(B) any action taken to enable or make available to information content providers or others the technical means to restrict access to material described in paragraph (1)

Are there any defenses to defamation?

Truth

truthTruth is an absolute defense to a defamation claim.  Defamation law does not prevent someone from publishing true information about you, no matter how damaging (although you might have a different cause of action).

Opinion

Opinions are not considered defamatory.  But make sure you’re actually stating an opinion and not asserting a statement of fact.  To determine whether a statement is an opinion, courts look at whether a reasonable reader or listener could understand the statement as asserting a statement of verifiable fact. (A verifiable fact is one capable of being proven true or false.) This is determined in light of the context of the statement. A few courts have said that statements made in the context of an Internet bulletin board or chat room are more likely to be opinions or hyperbole.  For a blog, a court would likely start with the general tenor, setting, and format of the blog, as well as the context of the links through which the user accessed the particular entry. Next the court would look at the specific context and content of the blog entry, analyzing the extent of figurative or hyperbolic language used and the reasonable expectations of the blog’s audience.

Public vs. Private

A private figure claiming defamation – your neighbor, your mom, the cute girl who works at the bar down the street – only has to prove you acted negligently, which is to say that a “reasonable person” would not have published the defamatory statement.  On the other hand, a public figure must show “actual malice” – that you published with either knowledge of falsity or in reckless disregard for the truth.  This is a much more difficult standard for a plaintiff to meet. A public figure is someone who has actively sought, in a given matter of public interest, to influence the resolution of the matter.  So a statement that is defamatory when made about your neighbor might not be defamatory if made about the lead actress in a new box office hit.

Practical Tip

Once you’ve concluded that someone has made a defamatory statement about you, what next?  Consider consulting an attorney to discuss your options.  But know that there are some very good reasons why actions for defamation may not be a good idea.  First, a defamation lawsuit can create a greater audience for the false statements than they previously enjoyed.  The media may cover the initial filing of a lawsuit and all the gory, illicity details of the complaint, but not follow through to the case’s ultimate resolution.  The net effect could be that large numbers of people hear the false allegations but never learn how the litigation was resolved.

Second, damage awards in defamation lawsuits tend to be small.  The fees expended in litigating even a successful defamation action can exceed the total recovery.  There’s often a substantial price to pay to clear your name in the court of law.

If you’re interested in learning more about this topic, check the Electronic Frontier Foundation’s FAQ on Online Defamation Law.

Next up in the series will be A Legal Primer for Bloggers – Anonymity.  It will discuss what you should know about blogging anonymously and keeping your identity secret, including the duty of your internet service provider to protect your identifying information.

A Legal Primer for Bloggers

Part 1: Introduction

Part 2: Intellectual Property

Part 3: DEFAMATION

Part 4: Anonymity

Part 5: Privacy

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