Patent Law FAQ

Yes, there is one exception. A suspended or excluded patent attorney or agent can inspect an application if they are the inventor or applicant of that particular application. The MPEP clarifies:

USPTO employees are forbidden to hold either oral or written communication with an attorney or agent who has been suspended or excluded from practice by the USPTO regarding an application unless it is one in which said attorney or agent is an inventor or the applicant.

So while suspended or excluded practitioners generally cannot inspect applications, they can still access ones in which they are directly involved as the inventor or applicant.

If an examiner comes across a patent application that contains national security markings but does not have a Secrecy Order imposed, MPEP 130 instructs that “the examiner should require the applicant to seek imposition of a Secrecy Order or authority to cancel the markings.” This should be done preferably with the first office action and before final disposition of the application.

37 CFR 5.1(d) states that if no Secrecy Order has issued, the USPTO will set a time period for the applicant to take one of three actions to prevent abandonment:

1. Obtain a Secrecy Order
2. Declassify the application
3. Submit evidence of a good faith effort to obtain a Secrecy Order under 37 CFR 5.2(a)

Additionally, per 37 CFR 5.1(e), “a national security classified patent application will not be allowed until the application is declassified and any Secrecy Order pursuant to 37 CFR 5.2(a) has been rescinded.”

A Continued Prosecution Application (CPA) request for design patents must include specific information to be considered acceptable. According to MPEP ¶ 2.30, the key elements are:

• The filing date of the CPA request
• The parent application number

The MPEP states: The request filed on [1] for a Continued Prosecution Application (CPA) under 37 CFR 1.53(d) based on parent Application No. [2] is acceptable and a CPA has been established. Here, [1] represents the filing date of the CPA request, and [2] is the parent application number. These details are crucial for establishing the continuity between the parent application and the CPA.

For more information on USPTO filing procedures, visit: USPTO filing procedures.

A Continued Prosecution Application (CPA) is a type of patent application specifically for design patents, filed under 37 CFR 1.53(d). It allows applicants to continue prosecution of a parent design patent application by filing a request for a CPA.

According to MPEP ¶ 2.30: The request filed on [date] for a Continued Prosecution Application (CPA) under 37 CFR 1.53(d) based on parent Application No. [number] is acceptable and a CPA has been established. This means that when a CPA is properly filed and accepted, it continues the prosecution of the parent application while establishing a new application.

For more information on continued prosecution application, visit: continued prosecution application.

For more information on CPA, visit: CPA.

For more information on design patents, visit: design patents.

For more information on Patent Application Process, visit: Patent Application Process.

Incorporating by reference in patent applications can have significant impacts:

• It allows applicants to include the content of another document without reproducing it in full.
• The incorporated material becomes part of the application as if it were explicitly included.
• It can provide support for claims and help meet disclosure requirements.

MPEP 211.05 mentions:

An incorporation by reference statement added after an application’s filing date is not effective because no new matter can be added to an application after its filing date (see 35 U.S.C. 132(a)).

This highlights the importance of including incorporation by reference statements at the time of filing to ensure their effectiveness. Applicants should carefully consider what materials to incorporate and ensure they are properly referenced to support their claims and meet disclosure requirements.

To learn more:

• incorporating by reference
• patent applications
• disclosure requirements
• claim support

The MPEP does not specify a fixed deadline for submitting the English translation of a non-English provisional application. However, it indicates that the translation must be provided within a time period set by the USPTO. According to MPEP ¶ 2.38:

“If 1) and 2) are not filed (or if the benefit claim is not withdrawn) prior to the expiration of the time period set in this Office action, the present application will be abandoned.”

This suggests that the USPTO will set a specific deadline in an Office action, and you must comply with this deadline to avoid abandonment of your application.

For more information on non-English language, visit: non-English language.

For more information on provisional application, visit: provisional application.

According to 37 CFR 1.9(a)(1), a national application is defined as:

• A U.S. application for patent filed in the USPTO under 35 U.S.C. 111
• An international application filed under the Patent Cooperation Treaty in which the basic national fee under 35 U.S.C. 41(a)(1)(F) has been paid
• An international design application filed under the Hague Agreement in which the USPTO has received a copy of the international registration pursuant to Hague Agreement Article 10

This definition encompasses various types of patent applications that are treated as national applications by the USPTO.

If there’s an error in the preprinted prior application data, the following steps should be taken:

1. If the error is in the Patent Data Portal database, it can be corrected by technical support staff of the Technology Center.
2. After the data is corrected, a new bib-data sheet should be printed and scanned into the file.
3. If the error was made by the applicant, the examiner should require correction via a corrected or supplemental application data sheet or an amendment, as appropriate.
4. In some cases, a petition for an unintentionally delayed benefit claim may also be required.

The MPEP states: “Should there be an error in the preprinted prior application data, the correction or entry of the data in the Patent Data Portal data base can be made by technical support staff of the Technology Center, if appropriate. Upon entry of the data, a new bib-data sheet should be printed and scanned into the file. If the error was an applicant error, the examiner should require correction via a corrected or supplemental application data sheet or an amendment, as appropriate.” (MPEP 202)

Claiming priority to a PCT international application can be done in two ways:

1. In a U.S. national stage application under 35 U.S.C. 371:
   • The priority claim is made in the PCT application
   • No further action is needed when entering the national stage
2. In a U.S. nonprovisional application under 35 U.S.C. 111(a):
   • File within 12 months of the PCT filing date
   • Make the priority claim in an application data sheet
   • Provide a certified copy of the PCT application (unless already filed with the PCT)

In both cases, the PCT application must designate the United States. The specific requirements are detailed in 37 CFR 1.55(d)(2) and (f)(2) for national stage applications, and 37 CFR 1.55(d)(1) and (f)(1) for applications under 35 U.S.C. 111(a).

A Continued Prosecution Application (CPA) request for design patents must include specific information to be considered acceptable. According to MPEP ¶ 2.30, the key elements are:

• The filing date of the CPA request
• The parent application number

The MPEP states: The request filed on [1] for a Continued Prosecution Application (CPA) under 37 CFR 1.53(d) based on parent Application No. [2] is acceptable and a CPA has been established. Here, [1] represents the filing date of the CPA request, and [2] is the parent application number. These details are crucial for establishing the continuity between the parent application and the CPA.

For more information on USPTO filing procedures, visit: USPTO filing procedures.

According to 37 CFR 1.9(a)(1), a national application is defined as:

• A U.S. application for patent filed in the USPTO under 35 U.S.C. 111
• An international application filed under the Patent Cooperation Treaty in which the basic national fee under 35 U.S.C. 41(a)(1)(F) has been paid
• An international design application filed under the Hague Agreement in which the USPTO has received a copy of the international registration pursuant to Hague Agreement Article 10

This definition encompasses various types of patent applications that are treated as national applications by the USPTO.

A Continued Prosecution Application (CPA) is a type of patent application specifically for design patents, filed under 37 CFR 1.53(d). It allows applicants to continue prosecution of a parent design patent application by filing a request for a CPA.

According to MPEP ¶ 2.30: The request filed on [date] for a Continued Prosecution Application (CPA) under 37 CFR 1.53(d) based on parent Application No. [number] is acceptable and a CPA has been established. This means that when a CPA is properly filed and accepted, it continues the prosecution of the parent application while establishing a new application.

For more information on continued prosecution application, visit: continued prosecution application.

For more information on CPA, visit: CPA.

For more information on design patents, visit: design patents.

For more information on Patent Application Process, visit: Patent Application Process.

If there’s an error in the preprinted prior application data, the following steps should be taken:

1. If the error is in the Patent Data Portal database, it can be corrected by technical support staff of the Technology Center.
2. After the data is corrected, a new bib-data sheet should be printed and scanned into the file.
3. If the error was made by the applicant, the examiner should require correction via a corrected or supplemental application data sheet or an amendment, as appropriate.
4. In some cases, a petition for an unintentionally delayed benefit claim may also be required.

The MPEP states: “Should there be an error in the preprinted prior application data, the correction or entry of the data in the Patent Data Portal data base can be made by technical support staff of the Technology Center, if appropriate. Upon entry of the data, a new bib-data sheet should be printed and scanned into the file. If the error was an applicant error, the examiner should require correction via a corrected or supplemental application data sheet or an amendment, as appropriate.” (MPEP 202)

What is the significance of drawings in proving conception for a patent?

Drawings play a crucial role in proving conception for a patent. The MPEP 2138.04 highlights their importance:

“A conception must encompass all limitations of the claimed invention” and “is complete only when the idea is so clearly defined in the inventor’s mind that only ordinary skill would be necessary to reduce the invention to practice, without extensive research or experimentation.“

In this context, drawings are significant because:

• They provide a visual representation of the inventor’s mental picture of the invention.
• Detailed drawings can demonstrate that the inventor had a complete conception of all aspects of the invention.
• Drawings can help prove that the invention was “ready for patenting” at the time of conception.
• They can serve as corroborating evidence to support the inventor’s testimony about conception.

The MPEP also notes: “The inventor’s consideration of all the structural details is not required,” suggesting that while drawings are important, they don’t need to include every minute detail to prove conception. However, the more comprehensive and clear the drawings are, the stronger the evidence of conception.

To learn more:

• patent drawings
• proof of conception
• inventor’s mental picture
• visual representation
• patent evidence

Improvements to computer functionality can be a key factor in establishing patent eligibility. According to MPEP 2106.05(a):

“If it is asserted that the invention improves upon conventional functioning of a computer, or upon conventional technology or technological processes, a technical explanation as to how to implement the invention should be present in the specification.”

The MPEP cites several examples of improvements to computer functionality that courts have found to be patent-eligible:

• A modification of conventional Internet hyperlink protocol to dynamically produce a dual-source hybrid webpage (DDR Holdings)
• A specific improvement to the way computers operate (Enfish)
• A particular method of incorporating virus screening into the Internet (Symantec Corp)

However, the MPEP also notes that “the mere fact that a computer may be able to perform the claimed steps more efficiently does not necessarily render an abstract idea less abstract.”

The key is that the improvement must be to the functioning of a computer or other technology, not just an improvement to an abstract idea implemented on a computer.

To learn more:

• patent eligibility
• computer functionality
• Alice/Mayo test
• judicial exception
• abstract idea

Mathematical concepts are one of the three main categories of abstract ideas identified in the MPEP. The MPEP states:

“The mathematical concepts grouping is defined as mathematical relationships, mathematical formulas or equations, and mathematical calculations.“

When evaluating whether a claim recites a mathematical concept, examiners consider the following:

1. Does the claim recite a mathematical relationship, formula, equation, or calculation?
2. Is the mathematical concept merely based on or involves a mathematical concept?

The MPEP clarifies: “A claim does not recite a mathematical concept (i.e., the claim limitations do not fall within the mathematical concept grouping), if it is only based on or involves a mathematical concept.“

Examples of mathematical concepts considered abstract ideas include:

• A formula for computing an alarm limit (Parker v. Flook)
• A method of hedging risk (Bilski v. Kappos)
• An algorithm for converting binary-coded decimal numerals into pure binary form (Gottschalk v. Benson)

It’s important to note that a claim is not automatically ineligible just because it involves a mathematical concept. The claim as a whole must be evaluated to determine if it integrates the mathematical concept into a practical application or provides an inventive concept.

To learn more:

• mathematical concepts
• abstract ideas
• patent eligibility
• mathematical relationships
• mathematical formulas
• mathematical calculations

The enablement requirement in patent law serves to ensure that the invention is sufficiently described to allow the public to make and use it. As explained in MPEP 2165.02:

“The enablement requirement looks to placing the subject matter of the claims generally in the possession of the public.”

This means that the patent application must provide enough information for a person skilled in the relevant field to understand and reproduce the invention without undue experimentation. The enablement requirement is crucial for fulfilling the patent system’s goal of promoting the progress of science and useful arts by ensuring that inventions are fully disclosed in exchange for patent protection.

To learn more:

• enablement requirement
• patent disclosure
• public possession
• patent law
• invention description

Mathematical concepts are one of the three main categories of abstract ideas identified in the MPEP. The MPEP states:

“The mathematical concepts grouping is defined as mathematical relationships, mathematical formulas or equations, and mathematical calculations.“

When evaluating whether a claim recites a mathematical concept, examiners consider the following:

1. Does the claim recite a mathematical relationship, formula, equation, or calculation?
2. Is the mathematical concept merely based on or involves a mathematical concept?

The MPEP clarifies: “A claim does not recite a mathematical concept (i.e., the claim limitations do not fall within the mathematical concept grouping), if it is only based on or involves a mathematical concept.“

Examples of mathematical concepts considered abstract ideas include:

• A formula for computing an alarm limit (Parker v. Flook)
• A method of hedging risk (Bilski v. Kappos)
• An algorithm for converting binary-coded decimal numerals into pure binary form (Gottschalk v. Benson)

It’s important to note that a claim is not automatically ineligible just because it involves a mathematical concept. The claim as a whole must be evaluated to determine if it integrates the mathematical concept into a practical application or provides an inventive concept.

To learn more:

• mathematical concepts
• abstract ideas
• patent eligibility
• mathematical relationships
• mathematical formulas
• mathematical calculations

Improvements to computer functionality can be a key factor in establishing patent eligibility. According to MPEP 2106.05(a):

“If it is asserted that the invention improves upon conventional functioning of a computer, or upon conventional technology or technological processes, a technical explanation as to how to implement the invention should be present in the specification.”

The MPEP cites several examples of improvements to computer functionality that courts have found to be patent-eligible:

• A modification of conventional Internet hyperlink protocol to dynamically produce a dual-source hybrid webpage (DDR Holdings)
• A specific improvement to the way computers operate (Enfish)
• A particular method of incorporating virus screening into the Internet (Symantec Corp)

However, the MPEP also notes that “the mere fact that a computer may be able to perform the claimed steps more efficiently does not necessarily render an abstract idea less abstract.”

The key is that the improvement must be to the functioning of a computer or other technology, not just an improvement to an abstract idea implemented on a computer.

To learn more:

• patent eligibility
• computer functionality
• Alice/Mayo test
• judicial exception
• abstract idea

The MPEP does not specify a fixed deadline for submitting the English translation of a non-English provisional application. However, it indicates that the translation must be provided within a time period set by the USPTO. According to MPEP ¶ 2.38:

“If 1) and 2) are not filed (or if the benefit claim is not withdrawn) prior to the expiration of the time period set in this Office action, the present application will be abandoned.”

This suggests that the USPTO will set a specific deadline in an Office action, and you must comply with this deadline to avoid abandonment of your application.

For more information on non-English language, visit: non-English language.

For more information on provisional application, visit: provisional application.

Claiming priority to a PCT international application can be done in two ways:

1. In a U.S. national stage application under 35 U.S.C. 371:
   • The priority claim is made in the PCT application
   • No further action is needed when entering the national stage
2. In a U.S. nonprovisional application under 35 U.S.C. 111(a):
   • File within 12 months of the PCT filing date
   • Make the priority claim in an application data sheet
   • Provide a certified copy of the PCT application (unless already filed with the PCT)

In both cases, the PCT application must designate the United States. The specific requirements are detailed in 37 CFR 1.55(d)(2) and (f)(2) for national stage applications, and 37 CFR 1.55(d)(1) and (f)(1) for applications under 35 U.S.C. 111(a).

What is the significance of drawings in proving conception for a patent?

Drawings play a crucial role in proving conception for a patent. The MPEP 2138.04 highlights their importance:

“A conception must encompass all limitations of the claimed invention” and “is complete only when the idea is so clearly defined in the inventor’s mind that only ordinary skill would be necessary to reduce the invention to practice, without extensive research or experimentation.“

In this context, drawings are significant because:

• They provide a visual representation of the inventor’s mental picture of the invention.
• Detailed drawings can demonstrate that the inventor had a complete conception of all aspects of the invention.
• Drawings can help prove that the invention was “ready for patenting” at the time of conception.
• They can serve as corroborating evidence to support the inventor’s testimony about conception.

The MPEP also notes: “The inventor’s consideration of all the structural details is not required,” suggesting that while drawings are important, they don’t need to include every minute detail to prove conception. However, the more comprehensive and clear the drawings are, the stronger the evidence of conception.

To learn more:

• patent drawings
• proof of conception
• inventor’s mental picture
• visual representation
• patent evidence

The enablement requirement in patent law serves to ensure that the invention is sufficiently described to allow the public to make and use it. As explained in MPEP 2165.02:

“The enablement requirement looks to placing the subject matter of the claims generally in the possession of the public.”

This means that the patent application must provide enough information for a person skilled in the relevant field to understand and reproduce the invention without undue experimentation. The enablement requirement is crucial for fulfilling the patent system’s goal of promoting the progress of science and useful arts by ensuring that inventions are fully disclosed in exchange for patent protection.

To learn more:

• enablement requirement
• patent disclosure
• public possession
• patent law
• invention description

Patent owners should follow these steps to prepare for an interview in an ex parte reexamination proceeding, as outlined in MPEP 2281:

1. Contact the examiner to indicate the issues to be discussed and determine if an interview will be granted.
2. If granted, file the following at least three working days prior to the interview:
   • An informal written statement of the issues to be discussed
   • An informal copy of any proposed claims to be discussed
3. Submit these materials by fax directly to the examiner or hand-deliver them to avoid delays.

The MPEP states: “If the examiner agrees to grant the interview, the patent owner must file, at least three (3) working days prior to the interview, an informal written statement of the issues to be discussed at the interview, and an informal copy of any proposed claims to be discussed, unless examiner waives this requirement.“

These preparatory steps are designed to provide structure to the interview and facilitate the statutory mandate for special dispatch in reexamination proceedings.

To learn more:

• ex parte reexamination
• patent interviews
• interview preparation
• USPTO procedures

Patent owners should follow these steps to prepare for an interview in an ex parte reexamination proceeding, as outlined in MPEP 2281:

1. Contact the examiner to indicate the issues to be discussed and determine if an interview will be granted.
2. If granted, file the following at least three working days prior to the interview:
   • An informal written statement of the issues to be discussed
   • An informal copy of any proposed claims to be discussed
3. Submit these materials by fax directly to the examiner or hand-deliver them to avoid delays.

The MPEP states: “If the examiner agrees to grant the interview, the patent owner must file, at least three (3) working days prior to the interview, an informal written statement of the issues to be discussed at the interview, and an informal copy of any proposed claims to be discussed, unless examiner waives this requirement.“

These preparatory steps are designed to provide structure to the interview and facilitate the statutory mandate for special dispatch in reexamination proceedings.

To learn more:

• ex parte reexamination
• patent interviews
• interview preparation
• USPTO procedures

The USPTO has specific provisions for handling partial assignees in patent issuance:

1. If one or more assignees, together with one or more inventors, hold the entire right, title, and interest in the application, the patent may issue in the names of both the assignee(s) and the inventor(s).
2. If multiple assignees hold the entire right, title, and interest to the exclusion of all inventors, the patent may issue in the names of the multiple assignees.

This is outlined in 37 CFR 3.81(c): (1) If one or more assignee, together with one or more inventor, holds the entire right, title, and interest in the application, the patent may issue in the names of the assignee and the inventor. (2) If multiple assignees hold the entire right, title, and interest to the exclusion of all the inventors, the patent may issue in the names of the multiple assignees.

No, including government support information on a provisional application cover sheet is not sufficient to meet the requirements of 35 U.S.C. 202(c)(6). The MPEP states:

Providing information concerning government support on a provisional application cover sheet does not satisfy the requirement of 35 U.S.C. 202(c)(6) which requires that the a statement be included within the specification of such application and any patent issuing thereon specifying that the invention was made with Government support and that the Government has certain rights in the invention.

The government license rights statement must be included within the specification itself, not just on the cover sheet.

To correct an error in a recorded assignment document at the USPTO, you have two main options:

• Cover sheet corrections: For errors in the cover sheet data only, you can submit a corrective document identifying the reel and frame number where the assignment is recorded and explaining the correction.
• Errors in the assignment document: For errors in the actual assignment document, you need to record a corrective document. This can be either a new assignment or other document correcting the original assignment.

As stated in MPEP 323: “The ‘Correction’ box on the Recordation Form Cover Sheet should be checked to indicate that the new submission is to correct an assignment already recorded.”

For more information on assignment correction, visit: assignment correction.

For more information on cover sheet, visit: cover sheet.

For more information on USPTO, visit: USPTO.

The USPTO has specific provisions for handling partial assignees in patent issuance:

1. If one or more assignees, together with one or more inventors, hold the entire right, title, and interest in the application, the patent may issue in the names of both the assignee(s) and the inventor(s).
2. If multiple assignees hold the entire right, title, and interest to the exclusion of all inventors, the patent may issue in the names of the multiple assignees.

This is outlined in 37 CFR 3.81(c): (1) If one or more assignee, together with one or more inventor, holds the entire right, title, and interest in the application, the patent may issue in the names of the assignee and the inventor. (2) If multiple assignees hold the entire right, title, and interest to the exclusion of all the inventors, the patent may issue in the names of the multiple assignees.

No, including government support information on a provisional application cover sheet is not sufficient to meet the requirements of 35 U.S.C. 202(c)(6). The MPEP states:

Providing information concerning government support on a provisional application cover sheet does not satisfy the requirement of 35 U.S.C. 202(c)(6) which requires that the a statement be included within the specification of such application and any patent issuing thereon specifying that the invention was made with Government support and that the Government has certain rights in the invention.

The government license rights statement must be included within the specification itself, not just on the cover sheet.

To correct an error in a recorded assignment document at the USPTO, you have two main options:

• Cover sheet corrections: For errors in the cover sheet data only, you can submit a corrective document identifying the reel and frame number where the assignment is recorded and explaining the correction.
• Errors in the assignment document: For errors in the actual assignment document, you need to record a corrective document. This can be either a new assignment or other document correcting the original assignment.

As stated in MPEP 323: “The ‘Correction’ box on the Recordation Form Cover Sheet should be checked to indicate that the new submission is to correct an assignment already recorded.”

For more information on assignment correction, visit: assignment correction.

For more information on cover sheet, visit: cover sheet.

For more information on USPTO, visit: USPTO.

For applications filed on or after September 16, 2012, the following parties may file a patent application as the applicant:

• The inventor(s)
• An assignee to whom the inventor has assigned the invention
• An obligated assignee to whom the inventor is under an obligation to assign the invention
• A person who otherwise shows sufficient proprietary interest in the matter

As stated in 37 CFR 1.46(a): “A person to whom the inventor has assigned or is under an obligation to assign the invention may make an application for patent. A person who otherwise shows sufficient proprietary interest in the matter may make an application for patent on behalf of and as agent for the inventor on proof of the pertinent facts and a showing that such action is appropriate to preserve the rights of the parties.”

Fraudulently establishing small entity status or paying fees as a small entity is considered a serious offense. According to 37 CFR 1.27(h): ‘Any attempt to fraudulently establish status as a small entity or pay fees as a small entity will be considered as a fraud practiced or attempted on the Office.’

The consequences of such actions can be severe, potentially including:

• Invalidation of the patent
• Criminal charges for fraud
• Disciplinary action against registered patent practitioners

It’s crucial to ensure that all claims to small entity status are truthful and accurate. Do not rely on oral advice from USPTO employees regarding entitlement to small entity status.

To learn more:

• small entity status
• fraud
• USPTO procedures
• patent law

BlueIron is taking several risks when financing a patent.

BlueIron is taking the risk that the patent will even issue.

BlueIron is making an investment in researching the invention, writing the patent, and getting the patent through the patent office.  If BlueIron fails to get a patent, you can walk away from the deal at any time, and BlueIron loses its investment.

BlueIron is taking the risk that the patent will have value.

BlueIron is also assuming the risk that the patent will be valuable.  If you walk away from the deal, BlueIron is left holding the patent and will need to liquidate the patent.  We will probably try to sell the asset to someone in the field, auction off the asset, or try to find someone who might license the asset.

Why is it important that BlueIron assume these risks?

As a company who has intellectual property, you need to rely on those assets when you are making business decisions.  A conventional patent attorney cannot really tell you the truth about your patents.  They have an inherent conflict of interest: don’t ask the barber if you need a haircut.

By taking ownership of the patents and leasing them back, BlueIron has the exact same interest as you do: solid, investment-grade patents.

The legal structure is a convertible note, lease-back structure. The IP assets are held in a Special Purpose Vehicle (SPV), which is how virtually all of the Fortune 500 companies hold their IP.

The SPV grants an exclusive license to the startup with a buyout option. The startup can exercise the buyout option at any time.

A buyout option is always available and always at a fixed price. There is no way BlueIron can “pad the bills” or raise the buyout price because everything is a fixed price.

Sometimes, BlueIron has held patents for 3, 6, or 12 months and the company exercises their buyout option. In other cases, the startup has a high cost of capital and it makes sense for them to pay over time.

Financially, a startup’s cost of capital is extremely high – nespecially at the beginning – so every dollar needs to be spent wisely. n Leasing or renting assets is much more capital efficient.

Most startup companies lease office space and even lease furniture nthrough a coworking space.  They lease computer services through Amazon nWeb Services and Microsoft Azure.  Virtually all of the tools they use nare SaaS or other “leasing” type models.

The reason why leasing or renting is attractive is two fold:

• Leasing an asset means you do not have to pay for it up front.
• Leasing an asset means someone else takes care of building and maintaining the asset.

When you consider a startup company’s cost of capital, BlueIron’s financing is actually cheaper on a Net Present Value of money basis.

The big benefit of “leasing your patents” is that BlueIron is nperfectly aligned with your business.  We need to create good, solid nassets and will only do so when there is a business reason.  You will nnever get the feeling that you are asking the barber if you need a nhaircut.

Yes. The buyout cost for a patent is set up front and will not change.

The buyout is NOT a percentage of patent value, revenue, or any other measure. We do not take warrants, “success fees,” or any type of carry.

Our job is to build Investment Grade Patents for you, not become a tax on your success.

Typically, the total price for a patent will be defined at the beginning of an engagement. If you need to buyout the patent after it is filed but before the examination begins, the buyout price is 1/3 of the total price. If you choose to buyout the patent after examination begins but before allowance, the buyout price is 2/3 of the total price.

You have full control of your patents while BlueIron finances them.  However, just like having a landlord for your office space, BlueIron “owns” the patents.

There is a difference between control and “ownership.”  BlueIron “owns” the patents, but you control them.

Having control of the patents means that you get all the benefits of owning the patents without having to pay for them up front.  You get to enforce the patents, cross-license the patents, and can even sell your rights to the patents.

BlueIron provides at least $500K of patent enforcement insurance for your patents, so that you always have dry powder to use those patents as you see fit.

Even though BlueIron provides the patents and insurance to use them, you are in complete control of how – and if – you choose to use the patents.

BlueIron can get a US patent as quickly as six months or less in some cases.  However, many times it takes 3 to 5 years.

How do we do it?

BlueIron’s founder, Russ Krajec, had the opportunity to join a startup company where we needed patent assets as fast as possible.  In that startup, he was able to experiment with 100 patent applications to find the best way.

The answer: the Patent Prosecution Highway in the US.  Using the PCT/PPH, Russ was able to get patents issued in the US within 4-8 months very consistently.

One key to expediting a patent is proper preparation.  A patent search is critical to understand the landscape and to make sure that the claims are appropriate: not too broad but directed at an economically valuable invention.

Another key is the right strategy.  The USPTO has a program called “Track One” which has several pitfalls, but it costs about the same as a PCT application.  It is the PCT application which gets you on the Patent Prosecution Highway, which is much better than Track One.  Feel free to give us a call and we can talk about the differences.

Yes! Our due diligence reports are highly respected by investors.

Our patent financing due diligence process not only evaluates patentability, but also enforceability, the economic advantage of the invention, its value to the startup’s market, as well as its value to competitors. Solid business value is REQUIRED before BlueIron can finance the invention, and BlueIron’s due diligence reports puts investor’s minds at ease about their investment.

BlueIron’s financing ensures that we have “skin in the game.”  We succeed only if the patents are valuable and when your company is successful. Investors understand an “alignment of interests.”

Our investment is non-dilutive.

BlueIron’s financing is non-dilutive. Founders, angels, or other equity-based investors are not diluted because BlueIron does not take equity.

The inventor’s money goes much further, meaning they get a higher overall return.

Yes!

Just like leasing a car, you have full CONTROL of the IP assets without having to pay the full price up front.

Because you have an exclusive license, you – and only you – decide nhow to use the patent assets. You can enforce, license, sublicense, ncross license, or sell your business assets. BlueIron has no veto power nand no say in how you run your business.

BlueIron provides Patent Enforcement Insurance with every patent nfinance agreement.  This means you have pre-paid legal fees ready and nwaiting to assert the patents against infringers.  We do not want you ton fail to enforce the assets just because of lack of money.

BlueIron is a licensed insurance agent, and acts as an insurance wholesaler for many brokers and agents. Please have your insurance agent contact us.

BlueIron does not provide any other insurance other than Intellectual Property related insurance.

A Continued Prosecution Application (CPA) request for design patents must include specific information to be considered acceptable. According to MPEP ¶ 2.30, the key elements are:

• The filing date of the CPA request
• The parent application number

The MPEP states: The request filed on [1] for a Continued Prosecution Application (CPA) under 37 CFR 1.53(d) based on parent Application No. [2] is acceptable and a CPA has been established. Here, [1] represents the filing date of the CPA request, and [2] is the parent application number. These details are crucial for establishing the continuity between the parent application and the CPA.

For more information on USPTO filing procedures, visit: USPTO filing procedures.

Yes, there is one exception. A suspended or excluded patent attorney or agent can inspect an application if they are the inventor or applicant of that particular application. The MPEP clarifies:

USPTO employees are forbidden to hold either oral or written communication with an attorney or agent who has been suspended or excluded from practice by the USPTO regarding an application unless it is one in which said attorney or agent is an inventor or the applicant.

So while suspended or excluded practitioners generally cannot inspect applications, they can still access ones in which they are directly involved as the inventor or applicant.

According to 37 CFR 1.9(a)(1), a national application is defined as:

• A U.S. application for patent filed in the USPTO under 35 U.S.C. 111
• An international application filed under the Patent Cooperation Treaty in which the basic national fee under 35 U.S.C. 41(a)(1)(F) has been paid
• An international design application filed under the Hague Agreement in which the USPTO has received a copy of the international registration pursuant to Hague Agreement Article 10

This definition encompasses various types of patent applications that are treated as national applications by the USPTO.

A Continued Prosecution Application (CPA) is a type of patent application specifically for design patents, filed under 37 CFR 1.53(d). It allows applicants to continue prosecution of a parent design patent application by filing a request for a CPA.

According to MPEP ¶ 2.30: The request filed on [date] for a Continued Prosecution Application (CPA) under 37 CFR 1.53(d) based on parent Application No. [number] is acceptable and a CPA has been established. This means that when a CPA is properly filed and accepted, it continues the prosecution of the parent application while establishing a new application.

For more information on continued prosecution application, visit: continued prosecution application.

For more information on CPA, visit: CPA.

For more information on design patents, visit: design patents.

For more information on Patent Application Process, visit: Patent Application Process.

The USPTO has specific provisions for handling partial assignees in patent issuance:

1. If one or more assignees, together with one or more inventors, hold the entire right, title, and interest in the application, the patent may issue in the names of both the assignee(s) and the inventor(s).
2. If multiple assignees hold the entire right, title, and interest to the exclusion of all inventors, the patent may issue in the names of the multiple assignees.

This is outlined in 37 CFR 3.81(c): (1) If one or more assignee, together with one or more inventor, holds the entire right, title, and interest in the application, the patent may issue in the names of the assignee and the inventor. (2) If multiple assignees hold the entire right, title, and interest to the exclusion of all the inventors, the patent may issue in the names of the multiple assignees.

If there’s an error in the preprinted prior application data, the following steps should be taken:

1. If the error is in the Patent Data Portal database, it can be corrected by technical support staff of the Technology Center.
2. After the data is corrected, a new bib-data sheet should be printed and scanned into the file.
3. If the error was made by the applicant, the examiner should require correction via a corrected or supplemental application data sheet or an amendment, as appropriate.
4. In some cases, a petition for an unintentionally delayed benefit claim may also be required.

The MPEP states: “Should there be an error in the preprinted prior application data, the correction or entry of the data in the Patent Data Portal data base can be made by technical support staff of the Technology Center, if appropriate. Upon entry of the data, a new bib-data sheet should be printed and scanned into the file. If the error was an applicant error, the examiner should require correction via a corrected or supplemental application data sheet or an amendment, as appropriate.” (MPEP 202)

Claiming priority to a PCT international application can be done in two ways:

1. In a U.S. national stage application under 35 U.S.C. 371:
   • The priority claim is made in the PCT application
   • No further action is needed when entering the national stage
2. In a U.S. nonprovisional application under 35 U.S.C. 111(a):
   • File within 12 months of the PCT filing date
   • Make the priority claim in an application data sheet
   • Provide a certified copy of the PCT application (unless already filed with the PCT)

In both cases, the PCT application must designate the United States. The specific requirements are detailed in 37 CFR 1.55(d)(2) and (f)(2) for national stage applications, and 37 CFR 1.55(d)(1) and (f)(1) for applications under 35 U.S.C. 111(a).

No, including government support information on a provisional application cover sheet is not sufficient to meet the requirements of 35 U.S.C. 202(c)(6). The MPEP states:

Providing information concerning government support on a provisional application cover sheet does not satisfy the requirement of 35 U.S.C. 202(c)(6) which requires that the a statement be included within the specification of such application and any patent issuing thereon specifying that the invention was made with Government support and that the Government has certain rights in the invention.

The government license rights statement must be included within the specification itself, not just on the cover sheet.

If an examiner comes across a patent application that contains national security markings but does not have a Secrecy Order imposed, MPEP 130 instructs that “the examiner should require the applicant to seek imposition of a Secrecy Order or authority to cancel the markings.” This should be done preferably with the first office action and before final disposition of the application.

37 CFR 5.1(d) states that if no Secrecy Order has issued, the USPTO will set a time period for the applicant to take one of three actions to prevent abandonment:

1. Obtain a Secrecy Order
2. Declassify the application
3. Submit evidence of a good faith effort to obtain a Secrecy Order under 37 CFR 5.2(a)

Additionally, per 37 CFR 5.1(e), “a national security classified patent application will not be allowed until the application is declassified and any Secrecy Order pursuant to 37 CFR 5.2(a) has been rescinded.”

To correct an error in a recorded assignment document at the USPTO, you have two main options:

• Cover sheet corrections: For errors in the cover sheet data only, you can submit a corrective document identifying the reel and frame number where the assignment is recorded and explaining the correction.
• Errors in the assignment document: For errors in the actual assignment document, you need to record a corrective document. This can be either a new assignment or other document correcting the original assignment.

As stated in MPEP 323: “The ‘Correction’ box on the Recordation Form Cover Sheet should be checked to indicate that the new submission is to correct an assignment already recorded.”

For more information on assignment correction, visit: assignment correction.

For more information on cover sheet, visit: cover sheet.

For more information on USPTO, visit: USPTO.

Correcting or adding drawings after a patent application is filed is addressed in MPEP 608.02, subsection II. The key points are:

• Drawings can be corrected, revised, or added if no new matter is introduced.
• The applicant must submit a proposed drawing correction in reply to the Office action.
• For non-provisional applications, replacement sheets of corrected drawings must be submitted.
• For provisional applications, corrected drawings may be submitted as an amendment to the application.

The MPEP states: ‘Where a drawing is to be amended, applicant must submit a replacement sheet of drawings which complies with 37 CFR 1.84 and includes all of the figures appearing on the original version of the sheet, even if only one figure is being amended.’ This ensures that the entire drawing set remains consistent and complete.

To learn more:

• drawing corrections
• patent application amendments
• replacement sheets
• USPTO requirements

What is the significance of drawings in proving conception for a patent?

Drawings play a crucial role in proving conception for a patent. The MPEP 2138.04 highlights their importance:

“A conception must encompass all limitations of the claimed invention” and “is complete only when the idea is so clearly defined in the inventor’s mind that only ordinary skill would be necessary to reduce the invention to practice, without extensive research or experimentation.“

In this context, drawings are significant because:

• They provide a visual representation of the inventor’s mental picture of the invention.
• Detailed drawings can demonstrate that the inventor had a complete conception of all aspects of the invention.
• Drawings can help prove that the invention was “ready for patenting” at the time of conception.
• They can serve as corroborating evidence to support the inventor’s testimony about conception.

The MPEP also notes: “The inventor’s consideration of all the structural details is not required,” suggesting that while drawings are important, they don’t need to include every minute detail to prove conception. However, the more comprehensive and clear the drawings are, the stronger the evidence of conception.

To learn more:

• patent drawings
• proof of conception
• inventor’s mental picture
• visual representation
• patent evidence

Improvements to computer functionality can be a key factor in establishing patent eligibility. According to MPEP 2106.05(a):

“If it is asserted that the invention improves upon conventional functioning of a computer, or upon conventional technology or technological processes, a technical explanation as to how to implement the invention should be present in the specification.”

The MPEP cites several examples of improvements to computer functionality that courts have found to be patent-eligible:

• A modification of conventional Internet hyperlink protocol to dynamically produce a dual-source hybrid webpage (DDR Holdings)
• A specific improvement to the way computers operate (Enfish)
• A particular method of incorporating virus screening into the Internet (Symantec Corp)

However, the MPEP also notes that “the mere fact that a computer may be able to perform the claimed steps more efficiently does not necessarily render an abstract idea less abstract.”

The key is that the improvement must be to the functioning of a computer or other technology, not just an improvement to an abstract idea implemented on a computer.

To learn more:

• patent eligibility
• computer functionality
• Alice/Mayo test
• judicial exception
• abstract idea

Incorporating by reference in patent applications can have significant impacts:

• It allows applicants to include the content of another document without reproducing it in full.
• The incorporated material becomes part of the application as if it were explicitly included.
• It can provide support for claims and help meet disclosure requirements.

MPEP 211.05 mentions:

An incorporation by reference statement added after an application’s filing date is not effective because no new matter can be added to an application after its filing date (see 35 U.S.C. 132(a)).

This highlights the importance of including incorporation by reference statements at the time of filing to ensure their effectiveness. Applicants should carefully consider what materials to incorporate and ensure they are properly referenced to support their claims and meet disclosure requirements.

To learn more:

• incorporating by reference
• patent applications
• disclosure requirements
• claim support

Yes, you can change the order of inventors’ names in a nonprovisional patent application filed on or after September 16, 2012. According to MPEP 602.01(c)(2):

37 CFR 1.48(f) … allows an applicant to adjust the order of the names of joint inventors (e.g., to control the order of names on a printed patent).

To change the order of inventors’ names, you must:

• Submit an application data sheet (ADS) in accordance with 37 CFR 1.76 that lists the inventors in the desired order.
• Pay the processing fee set forth in 37 CFR 1.17(i).

Note that this procedure is not applicable to provisional applications, as they do not become published applications or patents.

To learn more:

• inventor order
• patent application
• name change
• ADS
• application data sheet

For applications filed on or after September 16, 2012, the following parties may file a patent application as the applicant:

• The inventor(s)
• An assignee to whom the inventor has assigned the invention
• An obligated assignee to whom the inventor is under an obligation to assign the invention
• A person who otherwise shows sufficient proprietary interest in the matter

As stated in 37 CFR 1.46(a): “A person to whom the inventor has assigned or is under an obligation to assign the invention may make an application for patent. A person who otherwise shows sufficient proprietary interest in the matter may make an application for patent on behalf of and as agent for the inventor on proof of the pertinent facts and a showing that such action is appropriate to preserve the rights of the parties.”

Fraudulently establishing small entity status or paying fees as a small entity is considered a serious offense. According to 37 CFR 1.27(h): ‘Any attempt to fraudulently establish status as a small entity or pay fees as a small entity will be considered as a fraud practiced or attempted on the Office.’

The consequences of such actions can be severe, potentially including:

• Invalidation of the patent
• Criminal charges for fraud
• Disciplinary action against registered patent practitioners

It’s crucial to ensure that all claims to small entity status are truthful and accurate. Do not rely on oral advice from USPTO employees regarding entitlement to small entity status.

To learn more:

• small entity status
• fraud
• USPTO procedures
• patent law

How do I cite non-English language documents in an IDS?

When citing non-English language documents in an Information Disclosure Statement (IDS), follow these guidelines:

• Provide a concise explanation of the relevance of the document.
• Include an English language translation or abstract if available.
• If a translation is not available, indicate the language of the document.

According to MPEP 609.04(a): “Where the information listed is not in the English language, but was cited in a search report or other action by a foreign patent office in a counterpart foreign application, the requirement for a concise explanation of relevance can be satisfied by submitting an English-language version of the search report or action which indicates the degree of relevance found by the foreign office.”

Properly citing non-English documents ensures the examiner can consider their relevance to your application.

To learn more:

• IDS
• Information Disclosure Statement
• Non-English documents
• Patent application

The MPEP provides guidance on what constitutes a valid mailing address for inventors in patent applications. According to MPEP 602.08(a):

“The inventor’s mailing address means that address at which he or she customarily receives his or her mail, even if it is not the main mailing address of the inventor. Either the inventor’s home or business address is acceptable as the mailing address. A post office box is also acceptable.”

The mailing address should include the ZIP Code designation. It’s important to note that the address of an attorney with instructions to forward communications is not sufficient, as the purpose is to enable direct communication between the USPTO and the inventor if necessary.

To learn more:

• Inventor Mailing Address
• Patent Application
• Inventor Information
• USPTO Communication

Patent owners should follow these steps to prepare for an interview in an ex parte reexamination proceeding, as outlined in MPEP 2281:

1. Contact the examiner to indicate the issues to be discussed and determine if an interview will be granted.
2. If granted, file the following at least three working days prior to the interview:
   • An informal written statement of the issues to be discussed
   • An informal copy of any proposed claims to be discussed
3. Submit these materials by fax directly to the examiner or hand-deliver them to avoid delays.

The MPEP states: “If the examiner agrees to grant the interview, the patent owner must file, at least three (3) working days prior to the interview, an informal written statement of the issues to be discussed at the interview, and an informal copy of any proposed claims to be discussed, unless examiner waives this requirement.“

These preparatory steps are designed to provide structure to the interview and facilitate the statutory mandate for special dispatch in reexamination proceedings.

To learn more:

• ex parte reexamination
• patent interviews
• interview preparation
• USPTO procedures

To correct inventorship in a provisional application, you must follow the procedure outlined in 37 CFR 1.48(d). The requirements include:

• A request signed by a party set forth in 37 CFR 1.33(b) to correct the inventorship, identifying each inventor by their legal name
• The processing fee set forth in 37 CFR 1.17(q)

The MPEP advises, When an inventor is being added, applicants should also file a corrected application data sheet or a new cover sheet providing the residence of all inventors.

To learn more:

• inventorship correction
• provisional application
• processing fee
• cover sheet

Mathematical concepts are one of the three main categories of abstract ideas identified in the MPEP. The MPEP states:

“The mathematical concepts grouping is defined as mathematical relationships, mathematical formulas or equations, and mathematical calculations.“

When evaluating whether a claim recites a mathematical concept, examiners consider the following:

1. Does the claim recite a mathematical relationship, formula, equation, or calculation?
2. Is the mathematical concept merely based on or involves a mathematical concept?

The MPEP clarifies: “A claim does not recite a mathematical concept (i.e., the claim limitations do not fall within the mathematical concept grouping), if it is only based on or involves a mathematical concept.“

Examples of mathematical concepts considered abstract ideas include:

• A formula for computing an alarm limit (Parker v. Flook)
• A method of hedging risk (Bilski v. Kappos)
• An algorithm for converting binary-coded decimal numerals into pure binary form (Gottschalk v. Benson)

It’s important to note that a claim is not automatically ineligible just because it involves a mathematical concept. The claim as a whole must be evaluated to determine if it integrates the mathematical concept into a practical application or provides an inventive concept.

To learn more:

• mathematical concepts
• abstract ideas
• patent eligibility
• mathematical relationships
• mathematical formulas
• mathematical calculations

The enablement requirement in patent law serves to ensure that the invention is sufficiently described to allow the public to make and use it. As explained in MPEP 2165.02:

“The enablement requirement looks to placing the subject matter of the claims generally in the possession of the public.”

This means that the patent application must provide enough information for a person skilled in the relevant field to understand and reproduce the invention without undue experimentation. The enablement requirement is crucial for fulfilling the patent system’s goal of promoting the progress of science and useful arts by ensuring that inventions are fully disclosed in exchange for patent protection.

To learn more:

• enablement requirement
• patent disclosure
• public possession
• patent law
• invention description

The MPEP does not specify a fixed deadline for submitting the English translation of a non-English provisional application. However, it indicates that the translation must be provided within a time period set by the USPTO. According to MPEP ¶ 2.38:

“If 1) and 2) are not filed (or if the benefit claim is not withdrawn) prior to the expiration of the time period set in this Office action, the present application will be abandoned.”

This suggests that the USPTO will set a specific deadline in an Office action, and you must comply with this deadline to avoid abandonment of your application.

For more information on non-English language, visit: non-English language.

For more information on provisional application, visit: provisional application.

For continuation, divisional, or continuation-in-part applications filed under 37 CFR 1.53(b), the requirements for submitting an Information Disclosure Statement (IDS) depend on whether the information was previously considered in the parent application. The MPEP provides the following guidance:

• If the information was considered in the parent application, it need not be resubmitted unless the applicant wants it printed on the patent.
• If the information was not considered in the parent application, it must be resubmitted in compliance with 37 CFR 1.97 and 37 CFR 1.98.

The MPEP further states:

“Pursuant to 37 CFR 1.98(d), if the IDS submitted in the parent application complies with 37 CFR 1.98(a) to (c), copies of the patents, publications, pending U.S. applications, or other information submitted in the parent application need not be resubmitted in the continuing application.”

When resubmitting information, applicants should use a new listing that complies with the format requirements in 37 CFR 1.98(a)(1) and avoid submitting copies of PTO/SB/08 or PTO-892 forms from other applications to prevent confusion in the record.

To learn more:

• Information Disclosure Statement
• IDS
• continuation application
• divisional application
• continuation-in-part application

Submitting informal drawings in a patent application can have several consequences:

• The application may be considered incomplete, potentially affecting the filing date.
• The examiner may object to the drawings and require formal drawings to be submitted.
• It may delay the examination process.
• In some cases, it could result in a loss of patent rights if not corrected in time.

MPEP 608.02(b) states: ‘The Office no longer considers drawings as formal or informal; drawings are either acceptable or not acceptable. Drawings will be accepted by the Office of Patent Application Processing (OPAP) if the drawings meet the requirements of 37 CFR 1.84(a), (b), (c), and (e) and are capable of reproduction.’

It’s important to note that while the USPTO may accept informal drawings initially, they may still be objected to during examination, requiring corrections to be made.

To learn more:

• informal drawings
• patent application
• drawing requirements

To learn more:

• USPTO requirements
• examination delays

The effective interest rate for a patent loan will be in the neighborhood of 9-12%.

The patent loan insurance product has a premium that is paid out of the loan proceeds, as well as due diligence fees and insurance premiums for the required enforcement and defense insurance.

When you include interest paid back to a lender, the effective interest rate of the loan will be approximately 9-12%.

Please note that this rate is much lower than angel or venture equity, which is typically 50% or more. By taking a loan against the assets you already created, you can get much further without having the negative effects of selling your equity to investors.

A patent loan will come with several other components, including insurance for patent enforcement and patent defense.

Because a patent loan is specifically designed to help you expand your business, we want you to focus on generating revenue, not litigation. Therefore, we give you at least $2,000,000 in patent enforcement insurance and patent defense insurance.

The due diligence process for the loan program will include due diligence for the other insurance products.

The patent loan program requires several items about your patents and your business plan.  This is not a complete list.

100% ownership of your patents.

Your patents must be completely unencumbered and must be owned by the operating company.  Some investors will attach liens to intellectual property, which is a non-starter.  In many cases, the inventors may have “forgotten” to assign their rights to a company.  There are countless ways that a startup company may not have full, unrestricted rights to “their” IP, but we will require that this be completed before applying for a loan.

The patents must be of the highest quality.

Everybody believes their patents are good, but sadly, at least 95% of all patents are worthless.  Patents fail our due diligence for many different reasons, such as being over-broad, not having any prior art references, being poorly written, mistakes in patent prosecution, and countless others.

One of the biggest ways patents fail is that there may be other ways to solve the same problem.  If the patent does not capture the single best way to solve a problem, your competitor will just use the alternative solution and never need to take a license from you.

The business needs to be at the right stage.

A good loan candidate can put capital to use – but must be able to repay the loan.  Startups that are in the ‘idea phase’ are not good candidates because they probably have not built out their manufacturing, marketing, and sales pipelines. 

A good candidate has tested a marketing and sales funnel and knows their Cost to Acquire a Customer, along with a projected Lifetime Value.  They have developed enough sales to know what works and what doesn’t, and they can put a large amount of cash to use to generate revenue quickly.

Another type of candidate needs operating capital, such as to purchase inventory for an existing order or for ongoing expansion.  These companies typically have access to small amounts of capital, but a collateralized loan will give them much more.

You need to apply.

We are anxiously waiting your phone call.  Please contact us and discuss your situation.  In many cases, we can process a loan in 2-4 weeks.

We typically consider patents as the primary asset in an IP-backed loan, although we also consider trade secrets and company data as valuable assets to loan against. A software company’s code base may also be collateralized, but typically as a secondary asset.

Trademarks occasionally can be considered, but they are on a case-by-case basis.

A typical borrower may have at least a handful of patents, but often has 10-50 patent assets as collateral.

We prefer to provide loans to revenue generating companies, but we will consider pre-revenue companies in some cases.

For pre-revenue companies, our patent financing option will build out your portfolio quickly so that it will be ready once your company starts generating revenue.

The loan program is a loan, after all, and we will evaluate your company to see if we believe that you will be able to repay the loan. Taking out a loan is much different than selling equity, and our focus is on real revenue generation.

Pre-revenue companies need to show that they are very close to revenue. In general, we want to see that the company is addressing a real need in the market, that there is economic value in the product or service being sold, and that the cost of goods leaves a solid profit margin. We also want to see that the cost to acquire a customer is known and that there is a delivery pipeline to satisfy that customer.

In short, we want to see that there is a legitimate business opportunity in your company.

Please note that we want to have real data to support the assumptions, such as experiments in customer acquisition methods, quantified analyses of the costs to build the product or supply the services, procedures for after-sale support, or whatever is appropriate for your business. We are looking to loan money to those companies who can really put the money to use, and we are less likely to provide funding for the experimental or developmental phases of building your company.

Our goal is *not* to get your patents. Our goal is to help you make the patents more valuable.

A patent loan will give you capital, and we want to see that the loan proceeds are being used to make the patents more valuable. Typically, we look for opportunities where the loan goes to marketing and sales – all designed to raise revenue levels for the patented product.

When you sell more product that is protected by your patents, your patents (our collateral) has more value.

We need to see you succeed.

No. The patent loan program does not normally require a personal guarantee.

We provide an insurance product that will guarantee a lender in case of a default. However, a lender may still have the final say as to whether or not to require a personal guarantee.

Infringed patents can help (or hurt) your chances for a patent-backed loan, depending on the situation.

In some cases, we put together an enforcement plan alongside a loan, where the loan gets paid off with the proceeds from the enforcement. In those cases, the enforcement and loan work hand-in-hand.

In general, infringement of your patents is a good indicator that your patents have value.

We provide an insurance policy that will guarantee a lender (typically a bank) using the patents as collateral.

The Collateral Protection Insurance product is similar to mortgage insurance, where the bank has protection if there is a default on the loan.

The CPI product requires investment-grade patents and a solid business plan.  The patents must be litigation-worthy, but must also capture real economic value.

Your patents and your business plan will undergo a due diligence analysis, where the patents will undergo a “patent busting” search, looking for any weaknesses.  Your business plan will also need to show the use of funds and the way you are going to put the money to use.

As part of the patent loan program, you will get at least $2,000,000 in patent enforcement and patent defense insurance.  We want you to spend the loan proceeds by growing your company and generating revenue – not by litigating the patents in court.

Patent valuation is a difficult subject because there are many different people using many different techniques to come up with a ‘value.’

In general, the only meaningful metric of patent value is revenue.

Either you are selling a patented product, or an infringer is selling an infringing product.

The value of the patent is determined by comparing the patented product against a competing product that does not infringe the patent. If we can tease apart the extra amount of sales that comes from the patented product, then we have the best indicator of the patent value.

If there are no sales of the product, the patent does not have realizable value – YET. Once sales are established and we have an apples-to-apples comparison to a non-infringing product, only then can be put a meaningful value on the patent.

A Continued Prosecution Application (CPA) request for design patents must include specific information to be considered acceptable. According to MPEP ¶ 2.30, the key elements are:

• The filing date of the CPA request
• The parent application number

The MPEP states: The request filed on [1] for a Continued Prosecution Application (CPA) under 37 CFR 1.53(d) based on parent Application No. [2] is acceptable and a CPA has been established. Here, [1] represents the filing date of the CPA request, and [2] is the parent application number. These details are crucial for establishing the continuity between the parent application and the CPA.

For more information on USPTO filing procedures, visit: USPTO filing procedures.

According to 37 CFR 1.9(a)(1), a national application is defined as:

• A U.S. application for patent filed in the USPTO under 35 U.S.C. 111
• An international application filed under the Patent Cooperation Treaty in which the basic national fee under 35 U.S.C. 41(a)(1)(F) has been paid
• An international design application filed under the Hague Agreement in which the USPTO has received a copy of the international registration pursuant to Hague Agreement Article 10

This definition encompasses various types of patent applications that are treated as national applications by the USPTO.

A Continued Prosecution Application (CPA) is a type of patent application specifically for design patents, filed under 37 CFR 1.53(d). It allows applicants to continue prosecution of a parent design patent application by filing a request for a CPA.

According to MPEP ¶ 2.30: The request filed on [date] for a Continued Prosecution Application (CPA) under 37 CFR 1.53(d) based on parent Application No. [number] is acceptable and a CPA has been established. This means that when a CPA is properly filed and accepted, it continues the prosecution of the parent application while establishing a new application.

For more information on continued prosecution application, visit: continued prosecution application.

For more information on CPA, visit: CPA.

For more information on design patents, visit: design patents.

For more information on Patent Application Process, visit: Patent Application Process.

The USPTO has specific provisions for handling partial assignees in patent issuance:

1. If one or more assignees, together with one or more inventors, hold the entire right, title, and interest in the application, the patent may issue in the names of both the assignee(s) and the inventor(s).
2. If multiple assignees hold the entire right, title, and interest to the exclusion of all inventors, the patent may issue in the names of the multiple assignees.

This is outlined in 37 CFR 3.81(c): (1) If one or more assignee, together with one or more inventor, holds the entire right, title, and interest in the application, the patent may issue in the names of the assignee and the inventor. (2) If multiple assignees hold the entire right, title, and interest to the exclusion of all the inventors, the patent may issue in the names of the multiple assignees.

If there’s an error in the preprinted prior application data, the following steps should be taken:

1. If the error is in the Patent Data Portal database, it can be corrected by technical support staff of the Technology Center.
2. After the data is corrected, a new bib-data sheet should be printed and scanned into the file.
3. If the error was made by the applicant, the examiner should require correction via a corrected or supplemental application data sheet or an amendment, as appropriate.
4. In some cases, a petition for an unintentionally delayed benefit claim may also be required.

The MPEP states: “Should there be an error in the preprinted prior application data, the correction or entry of the data in the Patent Data Portal data base can be made by technical support staff of the Technology Center, if appropriate. Upon entry of the data, a new bib-data sheet should be printed and scanned into the file. If the error was an applicant error, the examiner should require correction via a corrected or supplemental application data sheet or an amendment, as appropriate.” (MPEP 202)

Claiming priority to a PCT international application can be done in two ways:

1. In a U.S. national stage application under 35 U.S.C. 371:
   • The priority claim is made in the PCT application
   • No further action is needed when entering the national stage
2. In a U.S. nonprovisional application under 35 U.S.C. 111(a):
   • File within 12 months of the PCT filing date
   • Make the priority claim in an application data sheet
   • Provide a certified copy of the PCT application (unless already filed with the PCT)

In both cases, the PCT application must designate the United States. The specific requirements are detailed in 37 CFR 1.55(d)(2) and (f)(2) for national stage applications, and 37 CFR 1.55(d)(1) and (f)(1) for applications under 35 U.S.C. 111(a).

No, including government support information on a provisional application cover sheet is not sufficient to meet the requirements of 35 U.S.C. 202(c)(6). The MPEP states:

Providing information concerning government support on a provisional application cover sheet does not satisfy the requirement of 35 U.S.C. 202(c)(6) which requires that the a statement be included within the specification of such application and any patent issuing thereon specifying that the invention was made with Government support and that the Government has certain rights in the invention.

The government license rights statement must be included within the specification itself, not just on the cover sheet.

To correct an error in a recorded assignment document at the USPTO, you have two main options:

• Cover sheet corrections: For errors in the cover sheet data only, you can submit a corrective document identifying the reel and frame number where the assignment is recorded and explaining the correction.
• Errors in the assignment document: For errors in the actual assignment document, you need to record a corrective document. This can be either a new assignment or other document correcting the original assignment.

As stated in MPEP 323: “The ‘Correction’ box on the Recordation Form Cover Sheet should be checked to indicate that the new submission is to correct an assignment already recorded.”

For more information on assignment correction, visit: assignment correction.

For more information on cover sheet, visit: cover sheet.

For more information on USPTO, visit: USPTO.

Correcting or adding drawings after a patent application is filed is addressed in MPEP 608.02, subsection II. The key points are:

• Drawings can be corrected, revised, or added if no new matter is introduced.
• The applicant must submit a proposed drawing correction in reply to the Office action.
• For non-provisional applications, replacement sheets of corrected drawings must be submitted.
• For provisional applications, corrected drawings may be submitted as an amendment to the application.

The MPEP states: ‘Where a drawing is to be amended, applicant must submit a replacement sheet of drawings which complies with 37 CFR 1.84 and includes all of the figures appearing on the original version of the sheet, even if only one figure is being amended.’ This ensures that the entire drawing set remains consistent and complete.

To learn more:

• drawing corrections
• patent application amendments
• replacement sheets
• USPTO requirements

What is the significance of drawings in proving conception for a patent?

Drawings play a crucial role in proving conception for a patent. The MPEP 2138.04 highlights their importance:

“A conception must encompass all limitations of the claimed invention” and “is complete only when the idea is so clearly defined in the inventor’s mind that only ordinary skill would be necessary to reduce the invention to practice, without extensive research or experimentation.“

In this context, drawings are significant because:

• They provide a visual representation of the inventor’s mental picture of the invention.
• Detailed drawings can demonstrate that the inventor had a complete conception of all aspects of the invention.
• Drawings can help prove that the invention was “ready for patenting” at the time of conception.
• They can serve as corroborating evidence to support the inventor’s testimony about conception.

The MPEP also notes: “The inventor’s consideration of all the structural details is not required,” suggesting that while drawings are important, they don’t need to include every minute detail to prove conception. However, the more comprehensive and clear the drawings are, the stronger the evidence of conception.

To learn more:

• patent drawings
• proof of conception
• inventor’s mental picture
• visual representation
• patent evidence

Improvements to computer functionality can be a key factor in establishing patent eligibility. According to MPEP 2106.05(a):

“If it is asserted that the invention improves upon conventional functioning of a computer, or upon conventional technology or technological processes, a technical explanation as to how to implement the invention should be present in the specification.”

The MPEP cites several examples of improvements to computer functionality that courts have found to be patent-eligible:

• A modification of conventional Internet hyperlink protocol to dynamically produce a dual-source hybrid webpage (DDR Holdings)
• A specific improvement to the way computers operate (Enfish)
• A particular method of incorporating virus screening into the Internet (Symantec Corp)

However, the MPEP also notes that “the mere fact that a computer may be able to perform the claimed steps more efficiently does not necessarily render an abstract idea less abstract.”

The key is that the improvement must be to the functioning of a computer or other technology, not just an improvement to an abstract idea implemented on a computer.

To learn more:

• patent eligibility
• computer functionality
• Alice/Mayo test
• judicial exception
• abstract idea

Incorporating by reference in patent applications can have significant impacts:

• It allows applicants to include the content of another document without reproducing it in full.
• The incorporated material becomes part of the application as if it were explicitly included.
• It can provide support for claims and help meet disclosure requirements.

MPEP 211.05 mentions:

An incorporation by reference statement added after an application’s filing date is not effective because no new matter can be added to an application after its filing date (see 35 U.S.C. 132(a)).

This highlights the importance of including incorporation by reference statements at the time of filing to ensure their effectiveness. Applicants should carefully consider what materials to incorporate and ensure they are properly referenced to support their claims and meet disclosure requirements.

To learn more:

• incorporating by reference
• patent applications
• disclosure requirements
• claim support

Yes, you can change the order of inventors’ names in a nonprovisional patent application filed on or after September 16, 2012. According to MPEP 602.01(c)(2):

37 CFR 1.48(f) … allows an applicant to adjust the order of the names of joint inventors (e.g., to control the order of names on a printed patent).

To change the order of inventors’ names, you must:

• Submit an application data sheet (ADS) in accordance with 37 CFR 1.76 that lists the inventors in the desired order.
• Pay the processing fee set forth in 37 CFR 1.17(i).

Note that this procedure is not applicable to provisional applications, as they do not become published applications or patents.

To learn more:

• inventor order
• patent application
• name change
• ADS
• application data sheet

For applications filed on or after September 16, 2012, the following parties may file a patent application as the applicant:

• The inventor(s)
• An assignee to whom the inventor has assigned the invention
• An obligated assignee to whom the inventor is under an obligation to assign the invention
• A person who otherwise shows sufficient proprietary interest in the matter

As stated in 37 CFR 1.46(a): “A person to whom the inventor has assigned or is under an obligation to assign the invention may make an application for patent. A person who otherwise shows sufficient proprietary interest in the matter may make an application for patent on behalf of and as agent for the inventor on proof of the pertinent facts and a showing that such action is appropriate to preserve the rights of the parties.”

Fraudulently establishing small entity status or paying fees as a small entity is considered a serious offense. According to 37 CFR 1.27(h): ‘Any attempt to fraudulently establish status as a small entity or pay fees as a small entity will be considered as a fraud practiced or attempted on the Office.’

The consequences of such actions can be severe, potentially including:

• Invalidation of the patent
• Criminal charges for fraud
• Disciplinary action against registered patent practitioners

It’s crucial to ensure that all claims to small entity status are truthful and accurate. Do not rely on oral advice from USPTO employees regarding entitlement to small entity status.

To learn more:

• small entity status
• fraud
• USPTO procedures
• patent law

How do I cite non-English language documents in an IDS?

When citing non-English language documents in an Information Disclosure Statement (IDS), follow these guidelines:

• Provide a concise explanation of the relevance of the document.
• Include an English language translation or abstract if available.
• If a translation is not available, indicate the language of the document.

According to MPEP 609.04(a): “Where the information listed is not in the English language, but was cited in a search report or other action by a foreign patent office in a counterpart foreign application, the requirement for a concise explanation of relevance can be satisfied by submitting an English-language version of the search report or action which indicates the degree of relevance found by the foreign office.”

Properly citing non-English documents ensures the examiner can consider their relevance to your application.

To learn more:

• IDS
• Information Disclosure Statement
• Non-English documents
• Patent application

The MPEP provides guidance on what constitutes a valid mailing address for inventors in patent applications. According to MPEP 602.08(a):

“The inventor’s mailing address means that address at which he or she customarily receives his or her mail, even if it is not the main mailing address of the inventor. Either the inventor’s home or business address is acceptable as the mailing address. A post office box is also acceptable.”

The mailing address should include the ZIP Code designation. It’s important to note that the address of an attorney with instructions to forward communications is not sufficient, as the purpose is to enable direct communication between the USPTO and the inventor if necessary.

To learn more:

• Inventor Mailing Address
• Patent Application
• Inventor Information
• USPTO Communication

Patent owners should follow these steps to prepare for an interview in an ex parte reexamination proceeding, as outlined in MPEP 2281:

1. Contact the examiner to indicate the issues to be discussed and determine if an interview will be granted.
2. If granted, file the following at least three working days prior to the interview:
   • An informal written statement of the issues to be discussed
   • An informal copy of any proposed claims to be discussed
3. Submit these materials by fax directly to the examiner or hand-deliver them to avoid delays.

The MPEP states: “If the examiner agrees to grant the interview, the patent owner must file, at least three (3) working days prior to the interview, an informal written statement of the issues to be discussed at the interview, and an informal copy of any proposed claims to be discussed, unless examiner waives this requirement.“

These preparatory steps are designed to provide structure to the interview and facilitate the statutory mandate for special dispatch in reexamination proceedings.

To learn more:

• ex parte reexamination
• patent interviews
• interview preparation
• USPTO procedures

To correct inventorship in a provisional application, you must follow the procedure outlined in 37 CFR 1.48(d). The requirements include:

• A request signed by a party set forth in 37 CFR 1.33(b) to correct the inventorship, identifying each inventor by their legal name
• The processing fee set forth in 37 CFR 1.17(q)

The MPEP advises, When an inventor is being added, applicants should also file a corrected application data sheet or a new cover sheet providing the residence of all inventors.

To learn more:

• inventorship correction
• provisional application
• processing fee
• cover sheet

Mathematical concepts are one of the three main categories of abstract ideas identified in the MPEP. The MPEP states:

“The mathematical concepts grouping is defined as mathematical relationships, mathematical formulas or equations, and mathematical calculations.“

When evaluating whether a claim recites a mathematical concept, examiners consider the following:

1. Does the claim recite a mathematical relationship, formula, equation, or calculation?
2. Is the mathematical concept merely based on or involves a mathematical concept?

The MPEP clarifies: “A claim does not recite a mathematical concept (i.e., the claim limitations do not fall within the mathematical concept grouping), if it is only based on or involves a mathematical concept.“

Examples of mathematical concepts considered abstract ideas include:

• A formula for computing an alarm limit (Parker v. Flook)
• A method of hedging risk (Bilski v. Kappos)
• An algorithm for converting binary-coded decimal numerals into pure binary form (Gottschalk v. Benson)

It’s important to note that a claim is not automatically ineligible just because it involves a mathematical concept. The claim as a whole must be evaluated to determine if it integrates the mathematical concept into a practical application or provides an inventive concept.

To learn more:

• mathematical concepts
• abstract ideas
• patent eligibility
• mathematical relationships
• mathematical formulas
• mathematical calculations

The enablement requirement in patent law serves to ensure that the invention is sufficiently described to allow the public to make and use it. As explained in MPEP 2165.02:

“The enablement requirement looks to placing the subject matter of the claims generally in the possession of the public.”

This means that the patent application must provide enough information for a person skilled in the relevant field to understand and reproduce the invention without undue experimentation. The enablement requirement is crucial for fulfilling the patent system’s goal of promoting the progress of science and useful arts by ensuring that inventions are fully disclosed in exchange for patent protection.

To learn more:

• enablement requirement
• patent disclosure
• public possession
• patent law
• invention description

The MPEP does not specify a fixed deadline for submitting the English translation of a non-English provisional application. However, it indicates that the translation must be provided within a time period set by the USPTO. According to MPEP ¶ 2.38:

“If 1) and 2) are not filed (or if the benefit claim is not withdrawn) prior to the expiration of the time period set in this Office action, the present application will be abandoned.”

This suggests that the USPTO will set a specific deadline in an Office action, and you must comply with this deadline to avoid abandonment of your application.

For more information on non-English language, visit: non-English language.

For more information on provisional application, visit: provisional application.

For continuation, divisional, or continuation-in-part applications filed under 37 CFR 1.53(b), the requirements for submitting an Information Disclosure Statement (IDS) depend on whether the information was previously considered in the parent application. The MPEP provides the following guidance:

• If the information was considered in the parent application, it need not be resubmitted unless the applicant wants it printed on the patent.
• If the information was not considered in the parent application, it must be resubmitted in compliance with 37 CFR 1.97 and 37 CFR 1.98.

The MPEP further states:

“Pursuant to 37 CFR 1.98(d), if the IDS submitted in the parent application complies with 37 CFR 1.98(a) to (c), copies of the patents, publications, pending U.S. applications, or other information submitted in the parent application need not be resubmitted in the continuing application.”

When resubmitting information, applicants should use a new listing that complies with the format requirements in 37 CFR 1.98(a)(1) and avoid submitting copies of PTO/SB/08 or PTO-892 forms from other applications to prevent confusion in the record.

To learn more:

• Information Disclosure Statement
• IDS
• continuation application
• divisional application
• continuation-in-part application

Submitting informal drawings in a patent application can have several consequences:

• The application may be considered incomplete, potentially affecting the filing date.
• The examiner may object to the drawings and require formal drawings to be submitted.
• It may delay the examination process.
• In some cases, it could result in a loss of patent rights if not corrected in time.

MPEP 608.02(b) states: ‘The Office no longer considers drawings as formal or informal; drawings are either acceptable or not acceptable. Drawings will be accepted by the Office of Patent Application Processing (OPAP) if the drawings meet the requirements of 37 CFR 1.84(a), (b), (c), and (e) and are capable of reproduction.’

It’s important to note that while the USPTO may accept informal drawings initially, they may still be objected to during examination, requiring corrections to be made.

To learn more:

• informal drawings
• patent application
• drawing requirements

To learn more:

• USPTO requirements
• examination delays