Patent - Business Method Patents - Part III

In this third article on business method patents we're going to continue our discussion with legal requirements for getting a business method patent.

In order for a company or individual to get a business method patent, the business method or software must meet the following requirements:

1. The method or software must be on a subject matter that the patent office defines as patentable. This is said to be anything created by humans that falls into two classes; laws of nature, natural phenomena and abstract ideas.

2. The method or software developed must be of some practical use. This is fairly easy to satisfy because any functional purpose will be good enough. A business only needs to demonstrate that its method or software produces some tangible result. For example; Amazon.com with their 1-click purchase produces a tangible result, an expected purchase.

3. The method or software must be novel. In other words, this method or software must be noticeably different from anything else that has come before it.

4. The method or software must be what they call "non obvious." What this means is that somebody who has ordinary skill in that specific technology would not have been able to think of it.

The cost of getting a business method patent depends on a number of factors, including the actual subject matter of the patent, how complex the examination process needs to be to determine if it is a new idea and whether or not the process goes through a lawyer. The cost for getting a business method patent can be anywhere from $3,000 to $15,000 unless you go through the process yourself without hiring a lawyer. After the patent is issued, the owner of the patent must pay maintenance fees to the U.S. Patent and Trademark Office after 3.5, 7.5 and 11.5 years. If the patent should be challenged, and many are, costs for getting the patent can go through the roof.

The next legal requirement for getting a patent is novelty. An application for a business method patent will fail the novelty test if the method was in use for more than 1 year before the patent was applied for. It is because of this novelty requirement that a company must research whether this method already exists and if not, file for a patent as quickly as possible.

A business method is considered to be novel when it is different in at least one area from all prior methods. This is known as "prior art." Prior art consists of the following as per the USPTO in these exact terms.

1. "Any published writing (including any patent) that was made publicly available either: (1) before the date of invention of the business method or (2) more than one year before the patent application for the business method is filed."

2. "Any U.S. patent that has a filing date earlier than the date of invention of the business method."

3. "Any relevant method or process (whether described in writing or not) existing publicly before the business method was conceived."

4. "Any public or commercial use, sale, or knowledge of the business method more than one year before the patent application for the business method is filed."

Finally, as to the timeline for obtaining a business method patent, it takes two and a half to three years to get a business method patent from the date it was filed. The patent is valid for 20 years after filing. After that it becomes public domain and anyone can use the method.

Michael Russell
Your Independent guide to Patents

Do You Need a Registered Trademark?

It's less of a need than a want. Registering a trademark is NOT mandatory. However, are you a business owner, or do you work with a business that does not currently have a trademark registered or pending with the USPTO? If this last statement in any way describes you, then YES, you may benefit from having a trademark. It is true that many businesses do not register a trademark with the USPTO, but this puts the business at a great disadvantage when compared to another company that does have a trademark.

Having a trademark notifies an individual that you have the corner on your market. It allows you to take court action if another business does attempt to infringe upon your name. You are essentially protecting your market upon registering a trademark by publicly individualizing your name. This protection allows a greater piece of mind for the average business owner, by ensuring that no one may interfere with your customer base by confusing their business with your own. The last scenario is a common occurrence, and many individuals have been forced to deal with legal repercussions because they did not take the time to trademark their name, while a competing business did.

Think about it like this; if your name was Tom Smith and you were a hard-worker, while there was another Tom Smith who was a poor worker, you wouldn?t want to be confused with that other individual, would you? As I mentioned above, this confusion is a common occurrence among businesses. This is why it is important to protect your name, and your products or services! While it is ultimately up to each business owner whether or not they want to protect their name, be aware of the potential ramifications that can come with not applying for a trademark. Whether or not your name is trademarked could have the ability to make or break your business; so why wouldn?t you apply for a trademark?

Marit Lee is a Researcher for TradeMark Express. Since 1992, TradeMark Express has met the needs of their clients with comprehensive research, application preparation, attorney referrals and trademark consultation. For further details, please visit us on the web at TradeMark Express or call Marit directly at 800.550.1520.

Trademarks - What is a Conflict? What is a Strong Similarity?

Comprehensive trademark research consists of several layers:

• Researching comprehensive databases, such as Lexis-Nexis or Dialog
• Looking for similarities, such as synonyms, word placement & spelling variations
• Consultation with a trademark attorney if Conflicts or Strong Similarities arise

The hardest matter to determine is what's going to be a potential problem for you and what isn't. Once that is ascertained, further research into the company or companies is needed.

First, let's discuss the difference between conflicts and strong similarities.

What is a Conflict? Determining a conflict is very simple - it's any mark that is EXACTLY like yours. If the name AND the goods/services are EXACTLY the same, then it's a Conflict.

What is a Strong Similarity? These are harder to determine and require analysis. A Strong Similarity is a name that is similar enough in Sound, Appearance or Meaning to be confusingly similar to the average consumer. Here are some examples to aid you:

1. Joe has a pending Federal trademark for his auto detailing service called It's in the Details. Becky wants to call her new auto detailing service, It is the Details. They are both offering the same service and their trade areas cross. This is a Strong Similarity, based on Sound & Appearance and Joe's pending Federal application.
2. Mary has a Federally registered trademark for her clothing line, Scary Mary's Apparel. Dan wants to use the name Mary Frightful Wear for his clothing line. This is a Strong Similarity, based on Meaning & Mary's Federal registration.
3. Sam has a California state registered trademark for his restaurant, Crabtastic Eats! and has no plans to expand outside of the state and primarily serves locals. Hannah's restaurant, Crabtastic, is located in Maine. She also has no plans to expand outside of the state and primarily serves locals. This is NOT a Strong Similarity based on their different trade areas.
4. Lorena's online payroll service, Pay Up, has been in use for 15 years and has clients across the country. Gene wants to start an online payroll service called Wage Wizard. Neither of them have trademarks. This is NOT a Strong Similarity based on the dissimilarity in the names.

Naturally, there will be exceptions to every situation. For instance, similar trademarks (in name and goods/services) can coexist peacefully if both parties are comfortable with one another's existence. This can happen if trade areas do not cross (e.g. located on opposite coasts), if they appeal to different consumers (e.g. one sells to private industry while the other sells to the general public), etc.

Two important notes:

1) It's crucial that comprehensive research be conducted in order to decide if the name is truly available or not. Free preliminary sites found on the web are a great place to start but please be aware that this is merely scratching the surface of what's out there.

2) Determining what is a conflict or a strong similarity requires experience and it is very easy to over or under-react to marks you've found. If you're vacillating about any marks, contact a trademark research firm or an attorney for further consultation.

Now, once those similar marks have been found and determined, the next step is to check into them to determine whether or not there would be a likelihood of confusion between the two companies when used in commerce.

How to get started with your competitive check:

1. For Federal trademarks: check the current status of the application by going to USPTO Check Status site and entering the serial number in the appropriate box
2. Do a web search for the trademark name AND for the owner name.
3. Call information to find phone numbers and contact information for each company.
4. Contact each of the similarities to find out specifically what they do and what their business area is.

Specific questions to ask:

• What services do you provide? / What exactly does your product do?
• I notice you are located in _________, are you currently doing business outside that area?
• Do you have a web page that describes your business? Do you have a brochure that you could send or fax me?

It is best to not let on who you are - simply act like an interested consumer.

Once you've checked the status of the application & contacted the companies directly, the next step is to discuss the findings with a trademark attorney. S/he will assist you in determining your next steps.

* No claim is made to the ownership, knowledge or liability of the above personal and/or company names. The above examples are merely for informational purposes and should only be seen as such.

Shannon Moore is the General Manager, East Coast for TradeMark Express. Since 1992, TradeMark Express has met the needs of their clients with comprehensive research, application preparation, attorney referrals and trademark consultation. For further details, please visit us on the web at TradeMark Express or call Shannon directly at 800.340.2010.