How can another patent be issued on this old technology? The Value of Improvements
One of the best example one can think of are telephones - from the first patented telephone, invented by Alexander Graham Bell (US Pat. No. 174465, see also Professor Wurzer's post) and to all the other telephones (e.g., rotary, button, touch phones) and smartphones that followed, including smartphone wars that pitted the manufacturers against one another.
What are improvement patents?
Improvement patents are a type of patent that protect inventions that enhance or modify existing inventions. They cover specific advancements or modifications made to an existing product, process, or design, rather than entirely new creations. In essence, they provide legal protection for the novel aspects of an improvement, preventing others from using, making, or selling the specific enhancement without authorization. However, improvement patents do not provide the right of making, vending or using the original invention, nor does the patent for the original invention confer the right of making, vending or using the patented improvement.
Are improvement patents valuable?
Yes, they are valuable for several reasons:
They offer protection for enhancements to existing inventions: Improvement patents grant exclusive rights to the specific improvements made to an existing product or process, preventing others from using or selling those particular enhancements without permission. This can be crucial in maintaining a competitive advantage in the marketplace.
They can extend the market life of a product: By patenting improvements, companies can prolong the relevance and profitability of their products, even as the underlying technology may become outdated. This allows them to continue generating revenue from a product line while simultaneously innovating and developing newer versions.
They can be strategically important: Improvement patents can be used to block competitors from entering a market or to create licensing opportunities, generating additional revenue streams. In some cases, a series of improvement patents can create a formidable patent portfolio that can deter competitors and solidify a company's position in the market.
Here are three examples of valuable improvement patents:
Gillette Mach3 Razor: This razor, with its three blades instead of the traditional two, was a significant improvement over existing razors and became a market leader. The patent on this improvement gave Gillette a competitive edge and allowed them to charge a premium price for their product.
Amazon's One-Click Ordering: This patented feature streamlined the online shopping process, making it faster and more convenient for customers. This improvement contributed to Amazon's success and helped them become a dominant player in e-commerce. The one-click patents were subject to significant litigation in Canada, as well as other countries.
Self-Balancing Scooter: This popular transportation device utilizes a patented improvement on existing gyroscope technology, allowing it to maintain balance and maneuverability. This improvement has made self-balancing scooters a commercial success and a popular mode of transportation.
Do improvement patents become litigious? If so, why?
As a result of the interconnection between the base and improved technology, improvement patents, not owned by the original owner (or manufacturer), improvement patents are often subject to:
Validity Challenges: Like any patent, improvement patents can be challenged on the grounds of validity. This could involve arguments that the improvement was not novel, obvious, or useful, or that the patent application did not adequately describe the invention. Competitors may seek to invalidate an improvement patent to clear the way for their own products or to avoid paying licensing fees.
Infringement Disputes: Even if an improvement patent is valid, disputes can arise over whether a particular product or process actually infringes the patent. Determining infringement often requires a careful analysis of the patent claims and the accused product or process. These disputes can be complex and lead to litigation, as the patent holder seeks to enforce their rights and the alleged infringer tries to defend their actions.
Ownership Disputes: Sometimes, disputes can arise over who actually owns the rights to an improvement patent. This can happen when multiple inventors or companies claim to have contributed to the invention, or when there are ambiguities in employment contracts or agreements related to the development of the improvement.
Licensing Disputes: If the patent holder licenses the improvement to others, disputes can arise over the terms of the license, such as royalty rates, the scope of the license, or the licensee's compliance with the terms. These disputes can also lead to litigation if the parties cannot resolve their differences through negotiation.
In summary, while improvement patents can be valuable assets, they are not immune to challenges or disputes. The complexities of patent law, the competitive nature of the marketplace, and the potential for disagreements over ownership or licensing can all contribute to the possibility of litigation. It is therefore critical to engage a MVIP project management team to implement and execute on the IP strategy so that the risks can be addressed and mitigated. Contact us.
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