Clearstone FTO’s Enhanced Sharing Capabilities Make Collaboration Seamless and Smart

We’re excited to announce that Clearstone FTO has been recently enhanced with powerful new features to greatly improve collaboration between patent counsel and R&D. These changes are already having a tremendous impact on our users’ ability to organize and share carefully curated information with numerous stakeholders in the patent clearance process, and have been referred to as “life-saving.”

The Clearstone FTO platform has always provided an efficient way for patent counsel to solicit and capture input from subject matter experts by using status indicators, comments, and review sharing functionality. Now, that capability goes further by utilizing the status indicators as a basis to define the scope of review by collaborators. Share recipients (“sharees”) now only see the patent documents for which their input is desired, and no others.

There are two new access-control profiles available within Clearstone FTO’s sharing functionality: Technical Review and Counsel Review.

Enhanced user access levels.

With Technical Review, users can limit access within a particular patent review so that the sharee only sees patents that have at least one claim that is marked with status “Need Technical Info.” Any patent that does not have this status indicator among its claims will not be visible to the sharee. This access profile has been extremely useful for streamlined collaboration between attorneys and engineers, for example, so that engineers are not exposed to any more information than they need to see.

With Counsel Review, users can limit access within a particular patent review so that the sharee only sees patents that have at least one claim that is marked with status “Counsel Review.” Any patent that does not have this status indicator among its claims will not be visible to the sharee. This access profile has been helpful to identify and limit the patents that are sent to outside counsel for review (or from outside counsel to in-house counsel), for example, or when non-attorneys perform some part of the clearance process and wish to limit the scope of review by counsel.

These enhanced access profiles are available to all users with Professional or Team/Enterprise accounts and may be used with any collaborator, including sharees with Standard (free) accounts.

For more information, reach out to us at info@clearstoneip.com.

ClearstoneIP Selected by LexisNexis for 2019 Accelerator Cohort

ClearstoneIP is proud to announce that it has been selected from a record number of applicants to participate in this year’s LexisNexis Legal Tech Accelerator.

“The Legal Tech Accelerator is an extension of the company’s long-standing support of the legal startup community worldwide and helps power legal market innovation, whether inside or outside its business. The program leverages the industry-leading market expertise and deep knowledge of LexisNexis’ and Lex Machina™ in the legal, technology and startup domains. Participants receive hands-on mentoring and guidance throughout the program, which is based in the Menlo Park, CA offices of Lex Machina and at the Raleigh Technology Center for LexisNexis on the Centennial Campus of North Carolina State University.” (press release)

With a growing user community that includes startups and Fortune 500 companies, ClearstoneIP is pioneering the modern industry standard for patent clearance management. The LexisNexis Accelerator is a significant opportunity to gain insight, experience, and best practices from some of the legal tech industry’s most innovative and accomplished thinkers.

ClearstoneIP is excited to work with LexisNexis as it takes the next step in its growth and continues to develop the first commercial platform dedicated to the patent clearance and freedom-to-operate process.

Deloitte Survey Highlights Value of Legal Tech for In-house Legal Departments

Deloitte recently published a survey of 300 in-house legal department executives in nine different countries about their transformations in making better use of advances in technology to maximize efficiency, reduce cost and free up lawyers’ time to work more closely with the organization as a trusted business partner.

Risk management functions lead the way in readiness and adoption, which aligns well with our mission at ClearstoneIP to bring efficiencies and insight in patent risk management (i.e., freedom-to-operate and patent clearance).

The entire survey is worth a read, but here are a few interesting snippets:

  • “Legal’s core missions of risk management and compliance involve a number of time consuming, repetitive tasks that leave little time to focus on innovation, strategy and value creation. These can often be alleviated through legal technology solutions that leverage process automation, artificial intelligence and advanced analytics.”
  • “Between 50-68% of respondents, depending on the sector, say automation and process design could help reduce costs significantly and create efficiencies.”
  • “As a whole, legal will become strategic, replacing rigid silos with more fluid structures so that in-house lawyers can transition to “business partnering,” which allows Legal to participate in the achievement of the organization’s objectives.”

ClearstoneIP to Attend Upcoming IP Law Events

ClearstoneIP will be attending two major IP community events this fall.
We’d love to meet you!

2018 IPO Annual Meeting, Chicago

First, it’s the 2018 IPO Annual Meeting in Chicago on September 23-25th. ClearstoneIP will be exhibiting as part of the IP Expo, showcasing our continually evolving cloud platform for managing the complexities of the patent clearance and freedom-to-operate process, Clearstone FTO.

Click here for program and registration information.

2018 AIPLA Annual Meeting, Washington DC

Then, we’ll be at the 2018 AIPLA Annual Meeting in Washington, DC on October 25-27th. ClearstoneIP’s CEO and Co-Founder, Gabe Sukman, will be speaking as part of a panel on the timely subject of:

Defending Against Willful Infringement Post-Halo

Learn what steps you can take, both pre-suit and during litigation, to minimize your risk of exposure to enhanced damages due to willful infringement.

Click here for program and registration information.

We hope to see you at these great events!

Willful Infringement: More Clarity From the Federal Circuit — Exmark v. Briggs & Stratton and More

The Federal Circuit’s recent decision in Exmark v. Briggs & Stratton echoes the central point in our prior analysis of Halo v. Pulse that timing matters in determining whether an accused infringer did so willfully. The case leaves us with two key practical implications:

  • Early investigation of patent threats can help avoid a finding of willful infringement; positions developed at the time of litigation are too late and irrelevant.
  • Prior art-based invalidity positions can form the basis for a subjective intent sufficient to defeat willfulness.

Case Summary

Exmark sued Briggs for infringement of U.S. Patent No. 5,987,863, relating to high-end lawn mowers. After a jury trial, the Nebraska district court awarded $48 million to the plaintiff after doubling the damages as a result of willful infringement. Notably, the trial took place before the Supreme Court’s decision in Halo v. Pulse, which meant that the district court applied the now-overruled Seagate standard for willfulness. After determining that Briggs’ defenses were objectively unreasonable, the trial court precluded Briggs from presenting prior art evidence at trial. Briggs’ hope was to use the prior art evidence to support a subjective state of mind that lacked willfulness.

On appeal, the Federal Circuit held that the trial court’s finding of objective unreasonableness did not comport with the Halo standard, which only requires consideration of subjective intent. The court further found that Briggs should be allowed to present prior art evidence in a new trial, conditioned on the timing at which Briggs considered it:

The district court must reconsider its decision to exclude evidence of the prior art during the jury trial on willfulness to determine whether Briggs had developed any views about the prior art at the time of accused infringement or whether the evidence only relates to Briggs’ litigation-inspired defenses.

The Federal Circuit vacated the damages award and the enhancement due to willfulness, and remanded to the district court for a new trial on those and other issues.

Analysis

The Exmark case is a straightforward but significant application of the willfulness doctrine after the Supreme Court’s standard-shifting decision in Halo v. Pulse. In Halo, the Court made it easier for a patentee to obtain enhanced damages from a willful infringer by rejecting the “objectively reckless” prong while also lowering the burden of proof from “clear and convincing” to “preponderance of the evidence.” In practice, the former standard allowed even blatant copiers to escape liability for enhanced damages if they could come up with a reasonable non-infringement or invalidity position at the time of litigation. Now, the focus is on the subjective knowledge, intent, and behavior of the infringer at the time of infringement.

Cases following Halo have begun to shape the new willfulness doctrine. While Exmark does not include an extensive discussion regarding willfulness, the takeaways are clear. If Briggs could have shown that it had developed prior art-based invalidity positions when it allegedly committed the infringement, then it would have been able to use that evidence to prove a lack of subjective willfulness and avoid enhanced damages. But if no pre-litigation analysis had taken place, then the trial court would exclude the prior art evidence, and Briggs would likely be liable for up to three times the jury’s damages verdict.

Other Recent Cases

In Presidio Components, Inc. v. Am. Tech. Ceramics Corp., 2016-2607 (Fed. Cir. Nov. 21, 2017), the Federal Circuit affirmed the district court’s denial of enhanced damages even when the jury determined that the defendant willfully infringed. An engineer for ATC knew about the patent-in-suit for years, which knowledge contributed to the jury’s finding that ATC behaved with reckless disregard. However, due to a later re-examination that resulted in amended claims, the period of infringement was set to begin on a later date — a time when the parties were already well into litigation (the court had issued claim constructions and ATC had developed its defenses). So while the jury found that ATC’s conduct was willful, the district court recognized these “unique circumstances” and ultimately declined to enhance damages because, looking at ATC’s conduct after the relevant date, the case was a “garden-variety” patent infringement action. Had the patent not undergone a re-exam that ended up resetting the infringement period, logic suggests that enhanced damages would have been much more likely.

In Tinnus Enterprises, LLC, Zuru Ltd. v. Telebrands Corporation, 6:16-cv-00033 (E.D. Tex. Nov. 21, 2017), several defendants are currently staring down the barrel of potential liability of up to $36 million (if trebled) after a recent jury verdict of willful infringement. The facts of the case relating to willfulness have not yet come to light, as much of the briefing and trial records are under seal, but we will monitor the case as it makes its way through post-trial motions and appeal. This is a high-profile case against a so-called “knock-off company” that has garnered much attention.

 

This article is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and the author or ClearstoneIP. The blog site should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

An IP Thought Leader Shares Her Experiences with Clearstone FTO

Jackie Hutter thinks differently about IP protection and business value creation, and has built her practice around maximizing businesses’ return on innovation investment. She has a unique ability to recognize and seize opportunity for her clients, rather than put up fences.

In a recent article, Jackie shared her experiences using Clearstone FTO for patent search and analysis. While the project wasn’t specifically focused on freedom-to-operate, Jackie quickly realized that the platform simply makes a number of different types of patent analysis much more efficient and actionable, including complex prior art searching:

Quite simply, because of the functional and elegant dashboard in the Clearstone FTO product, I was able to look at the relevant aspects of each patent document and make substantive notations of the relevance (or lack thereof) at a speed I never before thought possible.

Click here to read Jackie’s article.

Three Keys to Effective Freedom-to-Operate Management

Freedom-to-operate is a murky world where the quality of the investigation greatly depends on the skills and resourcefulness of the lawyer or analyst doing the work. Best practices and standards of care are not very well defined and, even when systems exist, they are rarely adaptable to changing needs.

It is our mission at ClearstoneIP to gather, implement, and standardize best practices in FTO and patent risk management. This article is a step in that process and sets forth three basic foundational concepts for effective FTO management.

  1. Well-defined product parameters. For an effective FTO investigation, it is important to define the product or project parameters at the outset. FTO is necessarily carried out with regard to a specific subject. Thus, the analyst should create or ascertain a detailed definition of the product, process, system, or future concept that is being cleared  in order to memorialize the current state of the product. This contrasts with the sort of “invention harvesting” that might be done as part of growing a patent portfolio, where the goal is to identify broad inventive concepts and build on them in creative, but not necessarily actualized, ways. In FTO, the more that is known about the actual product intended to be sold, the more effective the investigation will be. Also, as a product evolves over time, past FTO analysis on that product may change radically. We should document parameters and features at a specific point in time in order to establish a clear historical record.
  2. Patent analysis must focus on the claims. More critically than perhaps any other activity in patent law, an FTO investigation must be centered on patent claims. Prior art patents might include any number of embodiments, alternatives, and everything else under the sun in its specification, but the claims define the exclusive rights. If we can point to a single element of a claim that is not present in the product being investigated, then the claim is cleared and we can move on. There may be some exceptions to this when, for example, we’d want to monitor a cleared patent and its family when the subject matter is particularly close. But the point remains that infringement analysis is all about the claims. Losing sight of this, and using systems that make it difficult to access and act upon claims, can result in inefficiency and wasted time.
  3. A mechanism to tie products to claim determinations. Building on the first two keys, it follows that the investigation would fall apart if we don’t use an effective mechanism to track, memorialize, and manipulate our work product. If we only had one simple product that never changed, this part wouldn’t be too difficult. But as products become more complex, upgrades and modifications are implemented, and product lines grow larger, our need for a robust system to handle the different permutations of product-analysis combinations becomes critical.

There is, of course, much more to the process, such as how to locate relevant patents, how to properly interpret patent claims, when to dismiss patents or merely flag them for monitoring, how to strategically assess relative risk among critical sets of patents, and more. We will touch on specific nuances and more in-depth analysis techniques in future articles.

ClearstoneIP Announces New FTO Platform

ClearstoneIP is proud to announce the beta release of its next generation freedom-to-operate management platform, Clearstone FTO. With guidance and feedback from IP industry leaders, we’ve infused this new web-based application with the ideal combination of best practices, workflows, and collaboration features to bring much-needed efficiency to a critical process.

Some of the core features of the platform include:

  • Product-focused organization of FTO reviews – all reviews for a product easily locatable in one place.
  • Claim-by-claim FTO determinations with integrated patent review interface.
  • Team collaboration – messaging, workflow management, asset sharing, all easily handled between team members.
  • Patent history review – easily see what decisions were made on a patent, in any prior review and any other product.
  • Customizable reporting – user-configurable to report the most essential information.

With state-of-the-art security features, Clearstone FTO makes it simple and safe to access vital information from anywhere. It’s an intuitive and powerful approach to manage and interact with information that was previously relegated to hundreds of spreadsheets scattered throughout organizations.

Click here to learn more.

Accuracy and Speed in Patent Infringement Searching Need Not Be “One or the Other”

“Faster and better results at lower cost!”

A claim so common it blends in with the hum of office chatter. We’d like to believe that patent searches could be turned around within a day or two, but it typically takes much longer.  We’d like to believe that the work returned to us includes everything we need to know.  But, at some level, we sense there are shortcomings.

This is particularly true in the case of freedom-to-operate investigations (FTO).  Searchers often fail to consider certain product features.  Claims are not always afforded their full scope.  And sometimes key patents are just plain missed.  Despite relying on highly competent and experienced analysts, “faster, better and cheaper” just does not seem a reality.

But a departure from conventional methods can overcome the trade-off between speed and accuracy. We can achieve both.  Clearstone Elements is that departure.

Why is there a speed/accuracy trade-off when using conventional search methods?

Imagine for a moment that you have been asked to carry out an FTO analysis.  Let’s also say that, as is often the case, you must complete this analysis under budget, say $3,500.  Assume a billing rate of $75/hour (you have overhead and a boss) and that you’re able to review a patent every 6 minutes.  That means you only have budget to manually review about 470 patents.

This might seem like a reasonably-sized lot.  However, experienced FTO searchers would likely feel that it’s not nearly enough to guarantee a high level of recall (i.e., the ratio of the number of relevant patents retrieved to the total number of relevant patents), say of about 95%.  This will of course vary case-by-case.  But, for many competitive industries, you’d need a starting set in the range of about 2,500-5,000 patents to achieve a sufficiently high recall.

Why must so many patents be manually reviewed in FTO?

Certainly, products don’t typically infringe thousands of patents.  Else, industries would come to a grinding halt.  Indeed, out of a robust set of patents to be reviewed, a searcher is likely to only uncover a handful of relevant ones.

The short answer to the above question is that it’s very difficult for a searcher to anticipate whether a patent is relevant without actually reading and understanding its legal claims.  Products may be described in countless ways, many of which will go unnoticed to a searcher.  Claims of a patent may be written in much broader terms than used to describe the specific embodiments of the patent’s technical disclosure.  For these and other reasons (see here for more information), conventional search tools are imprecise blunt instruments in the FTO context.  Thus, a broad net must be cast.

It should now be obvious why inaccuracy seeps in.

A searcher will typically approach a search with the best of intentions, considering every angle of attack.  Patent classes will be reviewed, important ones selected and queried.  Key assignees will be queried.  Citation, clustering, and family analysis will be conducted on patents flagged as relevant.  Natural language queries, perhaps using semantic analysis, will also be applied relating to key product features.

These tools are all great at robustly representing technology areas.  However, most likely, this aggregation will far exceed, in number, what could be reviewed under budget in an FTO context.  Accordingly, the searcher will necessarily have to take additional steps to downsize this set.  And this is where it goes awry.  The searcher may do as follows:

  1. limit all results by requiring the inclusion of certain key terms;
  2. exclude unknown or small-scale assignees;
  3. exclude patents based on Title, Abstract and/or Drawings; and/or
  4. limit patents by relevancy score cut-off (if relevancy scores are provided).

These processes are generally arbitrary in nature and bare little correlation with relevance.  They are simply not sound bases for reducing a large aggregation of patents in an FTO search.  Inevitably, they cause omission of critical patents.

How does Clearstone Elements overcome this dilemma?

Clearstone Elements is a fundamentally unique search platform.  In Clearstone Elements, associations between patents and technical attributes are memorialized, forming specialized data files called workspaces.  Notably, these technical attributes are associated with patents on the basis of their claims and using human analysis.  These attributes (or elements) are then presented to a searcher as an interactive taxonomy.  A searcher may than effortlessly eliminate swaths of patents from a robust patent set by selecting elements not embodied by the product undergoing search (more on this process here).  In contrast to the arbitrary procedures discussed above, the Clearstone process is objective, reliable, and deliberate.

In fact, current users of Clearstone Elements are typically able to reduce a robust patent set by 90-95%.  This means that, once a workspace is put in place, provided the same constraints as in the above example, a searcher using Clearstone Elements is actually able to objectively consider upwards of 4,700-9,400 patents.  We are essentially empowering searchers to cast significantly broader nets with significantly reduced manual effort.  By replacing the conventional tools that are blunt and arbitrary with Clearstone Element’s logic-based reduction process, “faster, cheaper and more accurate” is no longer an empty promise.

Know Your Portfolio

swords-shield-icon-psd

“Which of our patents cover what the competitors are doing?”

“Where are the holes in our patent coverage?”

“Which of our patents cover our products?”

What the heck is in our patent portfolio?!?!”

 


A patent portfolio is both a sword and a shield; leverage

your analysis with Clearstone Elements to wield both with agility.

These are some of the most critical questions asked of in-house patent counsel, but they can also be the most dreaded. Experienced practitioners know there are no easy answers. Reliable results can be expensive and are often reached only after a significant investment in time.

ClearstoneIP is changing all of that.

In any strategic patent assessment, whether defensive or offensive, it is critical to know what technologies, products, or processes are actually covered by a particular portfolio. Patent metrics based on bibliographic and other surface data only go so far; these critical questions can only be answered with an in-depth analysis of patent claims.

For example, the cornerstone to any successful licensing program is “to have a detailed understanding of what you own and where the most value lies. It is also important to have an understanding of the technologies within your patent portfolio and how they are connected (a “taxonomy”).” In an effective defensive strategy, “good portfolio management requires monitoring of your competition’s patent holdings to identify opportunities and threats.” Key to these efforts is not just having a vague sense of generally protected subject matter, but identifying specific product-to-patent correlations with confidence and agility.

That’s why we’ve built the ideal platform for capturing and interacting with patent portfolio analysis. After a one-time effort to index a patent collection, Clearstone Elements leverages that analysis to yield powerful results, including the ability to:

  • Map competitor products to your patent portfolio in minutes to discover the patents that are most likely to be infringed. The process can be repeated for any number of products, with each mapping typically taking less than 30 minutes (even for large portfolios that include thousands of patents).
  • Map your products to your patent portfolio to determine whether your portfolio provides adequate protection for your product line and to discover gaps in coverage. This is also a convenient way to manage patent marking.
  • Mix and match product mappings to different portfolios or collections of patents to assess offensive and defensive strategies with respect to various alignments. In Elements, users perform a product mapping by interacting with a hierarchy of technical elements irrespective of the underlying patents. The user can map a product once and apply the mapping to different patent sets interchangeably, a truly unique capability that only ClearstoneIP can offer.
  • Quickly adapt product mappings to account for product changes over time to zero in on which patents become relevant due to the changes.
  • Apply saved product mappings to patents and portfolios indexed later in time. The unique nature of Elements offers a mechanism that instantly compares saved product mappings to any patents that are indexed at a later time. So when newly issued/acquired patents are indexed, Clearstone Elements will instantly inform the user which of these patents are likely to cover previously mapped products.

The Elements platform provides a degree of patent omniscience that some of our users have likened to “seeing the matrix.”

Sign up for a Clearstone Elements trial account today to start leveraging your patent portfolio analysis for insight and efficiency.