S
Skybuck Flying
This discussion is getting a bit muddled because several different, but
related, issues are being discussed.
Skybuck originally set up a scenario in which
- a manufacturer was secretly producing some
product which used technology Z before a
patent describing technology Z was filed;
and then
- the inventor sues manufacturer for patent
infringement.
(a) The manufacturer's defense is that he was
producing / selling the products well before
patent application; or
(b) The manufacturer argues the patent is invalid
because long before the patent application was
filed he was selling products secretly using
this technology.
Starbuck asked would win this lawsuit the inventor/patent holder or the
manufacturer? The trivial answer is - there's no way to know until
the judge or jury rules.
In order to give a more considered answer more facts are needed.
- In the scenario the "manufacturer was producing some
product which used technology Z". Is Z a process or
a material? If Z is a process, is it a method of
doing business?
- The patent describes technology Z. Does it claim
technology Z?
- Do all the acts in this scenario take place within the
United States?
First, if the patent only describes but does not claim "Z", then there
is no infringement.
Now, addressing question (b): If the technology is a process secretly
conducted by the manufacturer and maintained as a trade secret, then
the use of the technology generally does not constitute prior art. See
35 USC 102, the list of prior art includes (i) known or used by others,
(ii) patented, (iii) published, (iv) on sale, and (v) patent
application filed. Clearly ii, iii, and v do not apply in this
scenario. Regarding (i), the courts have ruled that a properly
maintained trade secret is not considered "known or used by
others."
It doesn't say "trade secret" it clearly says invention !!!
It doesn't say:
"
A person shall be entitled to a patent unless -
(a) the trade secret was known or used by others in this country,
"
It says:
"
A person shall be entitled to a patent unless -
(a) the invention was known or used by others in this country,
"
The invention which is claimed by a person CAN be known by others, namely
the trade secret holders !
It's the person who could not have known a probably kept trade secret !
However he is not the true inventor. The true inventor remains the trade
secret holder !
Not only that but the trade secret holder can even prove it thanks to his
products, process or whatever it is that uses it.
Suppose the formula of coca cola is reinvented by someone.
According to this court's decision that re-inventor can patent it and simply
take over the bussiness from cola coca... or simply ruin the company by
demanding that cola-cola no longer be produced etc.... ?
(iv) is a bit more tricky, but again so long as the public
has no access to the technology, it should not be considered prior art.
Define access
I have internet access without access to the actual internet infrastructure.
I as many before me have had access to coca-cola soft drinks without knowing
the coca-cola formula.
I do not have access to stealth bombers does that mean the technology can be
patented and the american army sued ?
So manufacturer's defense (b) should not prevail. Of course if the
"technology" escapes the four walls of the manufacturer the
situation is entirely different.
Now, regarding question (a): generally, in the United States, prior
use is not a defense to infringement. There is an exception however.
35 US 273 specifically provides an exemption for a method of doing
business:
It shall be a defense to an action for infringement with
respect to any ... [business] method in the patent being
asserted against a person, if such person had ... reduced
the subject mater to practice at least 1 year before the
... filing date of the patent... and commercially used
the subject mater before the filing date of the patent.
So, if the "technology" is a business method, the prior use defense
might work. I am not aware of case law defining "business method."
The exception has only been in the law for about 5 years.
None of the foregoing should be construed as legal advice; it just a
general discussion of patent law.
Ok,
Bye,
Skybuck