高科技創(chuàng)業(yè)與營(yíng)運(yùn)培訓(xùn)教材

高科技創(chuàng)業(yè)與營(yíng)運(yùn)High-Tech

Entrepreneurship陳光前(KCChen)Email:kuangchien@gmailPhone:+1-408-209-9991Skype:kuangchienMSN:OutlineIPandTrade

SecretIP

ProtectionLitigationKey

LessonsYoucannotover-emphasize

theimportanceofIP

protectionGoodideaswilldraw

competitorsProcessors(Intel,AMD,ARM),FPGA(Xilinx,Altera),emulationsystems(Quickturn,

Mentor)SoftwarePharmaceutical

industryAsuccessfulcompanycanbesignificantlydamagedif

itsIPrightischallengedandnotwell

protectedChipset

industryVIAandIntelatonetimewerefighting11legalbattlesin5countriesover27

patentsEDAsoftwarecompaniesSynopsysvs.

MagmaIPandTrade

SecretBeverycarefulabouttradesecretofformer

employersTechnology,businessstrategy,employeeinformation,customercontact

etc.Avoid

suspicionDonotaskoraccessinformationnotneededforyour

jobDonottakecompanypropertywhenleavingthe

companyDonotsendcompanyproprietaryinformationthroughpersonalemail

accountIsmoonlighting

okay?Ifitistotallyunrelatedtoyourjobarea,usuallyitisfine;butmaystillneedtoinformyour

employerIfitisinarelatedfield--notagoodidea.Anythingyouinventedwhilebeenemployedmaybelongtoyouremployer.Needtocheckemploymentagreement

carefully.IPandTradeSecret

(cont’d)Wheretheteamcame

from?Oneexecutiveofacompanyoncesaid“ifyouseesomeemployeesresignonthesamedayandlatertheyendupinthesamecompany,thenyouknowwhereyourlawyersshouldpayattention

to”Non-solicitation--ifanemployeecontactsyoudirectly,youarenotviolatingthenon-solicitation

agreementTalkingtopotential

investorsNon-DisclosureAgreement

(NDA)File(provisional)patentsbeforetalkingtothe

publicCanyoushowcompetitors’

information?IPandTradeSecret

(cont’d)SourceandtimingofideasshouldbedocumentedandverifiedWhenwastheIPdeveloped?Wasit

documented?WheretheIPcomesfrom?doyouhaveproper

licenses?AretheIPsusedbyyouremployeesownedbytheirformeremployers?Howtheproductwas

developed?Howfastwastheprototypebuilt?Whatisareasonablelevelofproductivity?Useofopen-source

materialDoyouneedalicenseforcommercial

use?Canyousellyourproductifitisbasedon

open-source?Doyouuselegalcopiesofsoftware

tools?IPandTradeSecret

(cont’d)Howtogetcompetitors’

information?Throughfriendly

customers?Don’tusefakeIDtosneakinto

competitors’presentationor

demo!Respectcustomers’

IPsIPsfromcustomersunderNDAshouldstay

in-houseAskforapprovalbeforeusinganyinformationrelatedtocustomers’

IPsEmploymentRelated

AgreementsEmployeeconfidentiality

agreementUsuallysignedwhenfirstjoininga

companyCannotillegallyuseordisclosecompanyconfidentialinformationCannotillegallyuseIPsfromformer

employersNon-solicitation

agreementUsuallyaskedtosignwhenleavinga

companyNon-compete

agreementIsitenforceable?Yes,insomestates,andifitisrelatedtocertaintransactionssuchas

M&A.Canbespecificor

broadOpen-Source

IssuesCommercialuseofopen-source

softwaree.g,ifyouusesomepatternmatchingprogramfrom

GNUItsuseiscoveredbytheGNUGeneralPublicLicense

(GPL)Canonlybeusedbyfree

softwaree.g,ifyouuseamemoryhandlingroutinefromGNU

compilerTheuseofthecodeiscoveredbytheGNULesserGeneralPublicLicense(LGPL),whichallowsfreeuseoflibrariesinproprietarysoftware.Useofeducational

softwareIncludecopyright

noticeLicensethesoftwareforcommercial

useIP

ProtectionTrademarkCompanyname,product

nameDoanamesearchtoavoidpotential

conflict?e.g.,LECSYS,Tuxedo,Tophat,

LEC-ConformalContinuetowatchpotentialconflictsfromother

companiesWebsite

addressCopyrightInUS,anoriginalworkbecomesprotectedbythecopyrightlawsfromthemomentitis"fixedinatangible

medium“Thereisnoparticulartimelimitforfilingacopyrightregistrationapplicationaftertheinitialpublicationofa

workTradeSecret,Copyrightand

PatentTradesecret-unlimitedlife

protectionPrice

giveupthepatent

rightCopyright–doesnotcoverthe

substanceApatentisthemostpowerfullegal

instrumentWhatisapatent

?Toeveryonein

US:KeepoffXYZunlessyouhavemypermission,whichImay

grantor

withhold.Signed:

privateEcndiortseid:

zUSegnovernment

Monopolypower(20

years)Facethereality:theworldis

infestedby

patentsUSPOreceived376,810patentapplicationsin

2004USPOgranted180,000patentsayear.AbouthalfgotoforeignentitiesIntellectualVentures–acompanybyformerMicrosofthonchoNathanMyhrvold,whichfocusesoninventingandinvestingininventions.KodakbeatsSunonJavatechnologiesbyover1billionUSD,overWang’s

patentsHPsuesGatewayoverCompaq

patentsMicrosoftpaysInterTrust$440Mtosettletheirpatent

disputesRMBSvs.

QCOM....

.Top10growthleadersinUSpatentawardsNanya

(Taiwan)Molex,Lisle,

IIIViaTechnologies

(Taiwan)BellSouthIntellectualPropertyGroup

(Atlanta)HitachiGlobalStorageTechnologies

(USA)AUOptronics

(Taiwan)Broadcom

(USA)NokiaABOy(Finland)Agilent

TechnologiesQualcomm

(USA)What’sthebig

deal?Patentsareimportantcorporate

asset78%ofS&P500valueisintellectualassets(PWCApril

2000)Startupswithstrongpatentshave63%greaterchanceofstrikingdealswithincumbents(NCPA2001

study)Patentsincreasecompany

valuationParticularlyinfinancingrounds,merger&acquisitionor

IPOPatentsprovidemonopolyincertainproducts,servicesand

marketsReduced

competitionHigherprofitmarginonproductsand

servicesWhat’sthebigdeal?

(cont’d)Patentsallowthecompanyfreedomto

operateLesschanceofbecominganinfringement

defendantBetterabilitytocross-licenseratherthanpaylicensefeesPatentscanbeasourceoflicensing

revenueLicensenon-coretechnologyto

othersFromNewsweek:TexasInstrumentsCorp

reportedthatitsrevenuesfrompatentroyaltiesexceededitsrevenuesfrom

manufacturingArepatentsimportantfora

start-up?AChinese

Great

Wall (entry

barrier)Anarsenal (to

cross-license)Anassurance (to

investors)A

protection (fromthe

competitors)Alicense

to

sue (tothe

infringer)Patenting

ProcessesYourideasubmissionRecommendationto

CompanyCompanyApprovalApplicationRevisionsFinal

ReviewFilewithPatent

OfficePreliminary

Amendmentif

anyForeign

Actionsif

requiredOfficeActionFinalActionContinuationAppealUSPTOUS

PatentPatent

StrategyBecarefulaboutdisclosinginformationbeforefilingapatentOfferofsale,publicuseorcommercialuseof

inventionPrintedpublicationofinvention

anywhereFile

earlyDocumenttheinventionwithout

delayAprovisionalpatentcanbefiledquickly,andthenfilenon-provisionalpatentwithina

yearFiledefensivelyandfile

offensivelyMakepatentsaspartofyour

productsArticulateyourdevelopmentsintoentrybarrier

anddefending/offending

programsPatentStrategy

(cont’d)Patentapplicationisnotateamwork--youdonotwanttohave5peopleworkonyourapplicationatthesametime,everyonepaintoneportionofyour

application.Reputationofafirmdoesnotmatter,apersonwho

doestheactualjobmeans

all.Makesuretheperson’stechnicalbackgroundfitsyourarea--youdonotwanttohaveapatentguywithchemistrybackgroundtoworkonyourcomputerinventions.Forexample:USPatentNo:6,025,810:Claim1:…sendingandreceivingthecommunicationsignalataspeedfasterthanaknownspeedof

light.IPandTradeSecret

LitigationHasbecomeacommonbusinessweaponinhigh-techindustry,especiallywheneconomy

isbadorinacompetitive

situationAnunfairadvantageoflarger

companiesStakecanbeveryhigh.E.g.,retroactivebaseonaccumulated

revenueUsuallytime-consuming,expensiveand

mind-boggling,canslowdownbusinessquitea

bit.IPandTradeSecret

LitigationViolatingnon-solicitation

agreementHirepeoplefromformer

employersViolatingnon-compete

agreementWorkforcompetitorsorcompeting

productse.g.,MicrosoftsuedGoogleforKai-Fu

Lee’semploymentMisappropriationoftrade

secretIllegaluseoftradesecret;code

theftPatent

infringementHowtohandle

litigationIgnoreandhopeitgoes

awayUsuallywishful

thinkingStillacarefullywrittenreplyis

necessaryIndependentopinion

letterHelpfultodemonstrate3rdparty

opinionImportanttodemonstratenotwillfulinfringementCounter-suitHowtohandlelitigation

(cont’d)BusinessinsurancePrepareforthe

worstAlsohelpstoshow3rdpart

opinionSynopsysboughtinsurancefromAIGfor

acquiringAvant!SettlementUsuallycomesafternegotiation;dead-lock;takeit

orleave

itCross-licensingof

patentsPayinglicensingfeeor

royaltyCase

StudiesEmployment

lawsuitTrademark

disputePatent

disputeNon-Compete

AgreementKey

LessonsWhatwent

rightStayedawayfromformer

employeesExperiencedexecutivesandboardmembershelpedalotin

litigationWhatwent

wrongHiredtoomanysalespeoplefromthesame

companyDidnotfilepatentsearly,duetoun-necessary

worryaboutdisclosureofproprietary

informationDidnothavecompetentpatentandlitigationattorneysKey

LessonsRecommendationsPayattentiontotra