Insurance IP Bulletin
An Information Bulletin on Intellectual Property activities in the insurance industry

A Publication of - Tom Bakos Consulting, Inc. and Markets, Patents and Alliances, LLC
June 15, 2005

VOL: 2005.3
Adobe pdf version FEEDBACK ADD ME to e-mail Distribution
Printer Friendly version QUESTION REMOVE ME from e-mail Distribution
Publisher Contacts Tom Bakos Consulting, Inc.
Tom Bakos: (970) 626-3049
tbakos@BakosEnterprises.com

Markets, Patents and Alliances, LLC
Mark Nowotarski: (203) 975-7678
MNowotarski@MarketsandPatents.com

Complete contact information.

Find Prior Issues HERE

Patent News

USPTO 2005 Business Methods Customer Partnership Meeting


 Your editors attended the recent Business Methods Customer Partnership Meeting sponsored by the USPTO and held in their Alexandria, VA offices on May 4.  Presentations were given on overall statistics related to the examination of business method patents, inventor’s perspectives on how important business method patents are to their fledgling companies, attorney/agent’s perspectives on how to draft better business method patent applications, and an examiner’s update on exactly what sort of business method inventions they will consider granting patents on in light of recent court cases. 


The most important statistic we saw was that the patent office is hiring more examiners for the business method area.  This will help address the critical issue of processing the enormous backlog of pending business method patent applications.

The ability of the patent office to hire the new examiners has been brought about, at least in part, by the fee increases that were passed by Congress last year.  We are not a big fan of fee increases, but if they result in faster, more efficient examination, they will be well worth it.


The Customer Partnership Meeting was also an excellent time to have informal discussions with other inventors, attorneys/agents, examiners and officials of the patent office.  Some of the tips we picked up are presented in the Patent Q&A below.


Patent Q & A

Is it worth getting a patent?


 Question:   My business method patent application is taking forever to get through the patent office.  We have had repeated rejections and don’t seem to be making any progress.  I’m beginning to worry that my attorney/agent really doesn’t know what he/she is doing.  Any suggestions?

Answer:   This is a tough one.  Right now, business method patents, including those in the insurance field, are the most difficult patents to get through the US patent office.  Only 5 – 10% of the applications are being allowed.  The ones that do manage to get through have taken an average of five years to get there.  It’s no wonder that there is a growing sense of frustration with how long, difficult and costly the process is. 

Link to Complete Answer

Patent Search (Sort Of)

Looking For the Patents Around You


Pay attention and you can find patents in all kinds of interesting places. We’ve noticed, for example, that almost every fast food franchise has a patent or patent application pending on their box or coffee cup. When you’re through eating turn it over and take a look.

However, you can even find patents (or applications) in the every day financial services businesses.  We got a credit card offer a few weeks ago from Capitol One.  It was, by the way, in an ominous envelope that warned us not to bend, fold, or staple it.  It’s a good thing we didn’t throw it away because, if you took the time to read it, you’d find some interesting fine

Link to Complete Article

Patent Value

Ignoring Patent Value


The monetizing of intellectual property, in general, and patents, in particular, has long been a subject of interest.  Certainly, patent trolls, the subject of this issue’s feature story,  have found their own unique way to monetize the patents they own.  But, for the rest of us, this concept may be just an interesting option we might one day consider.  Perhaps that day was yesterday?

Link to Complete Article  

Statistics

An Update on Current Patent Activity


The table below provides the latest statistics in overall class 705 and subclass 4.  The data shows issued and published patents and published patent applications for this class and subclass.

Class 705 is defined as: DATA PROCESSING: FINANCIAL, BUSINESS PRACTICE, MANAGEMENT, OR COST/PRICE DETERMINATION.

Subclass 4 is used to identify claims in class 705 which are related to: Insurance (e.g., computer implemented system or method for writing insurance policy, processing insurance claim, etc.).

Highlight of Newly Issued Patents and Applications During Last Two Months

Our analysis and summary of issued patents and newly published patent applications is based on a quick read and interpretation of the published documents.  It is not intended to be and should not be considered to be a complete or exhaustive analysis of the breadth of these inventions or claimed inventions.  This information is provided to give our readers a way to quickly find patents or patent applications in their field of interest.  To understand the full range of a patent or intended range of a patent application, the original document must be studied and analyzed. 

Issued Patents

Since our last issue 4 new insurance patents with claims in class 705/4 have been issued.  Patents are assigned to a class based on their claims.  See the detailed list for a brief description of these new patents.


All four would have implementation mostly in the Life & Health area.  Three of the four had an assignment indicated in the published document.

Published Patent Applications

Twenty six new patent applications have been published since our last issue.  In the P&C industry there were 14 and in L&H there were 11.  One application specifies a use in all insurance fields and some of the others may be claiming broader applications in other lines of business.  See the detailed list for of summary of what has been recently published.


One of the patent applications (Pub. # 20050102168) describes a new type of P&C insurance – collateral coverage.  This application describes a simple way to define benefits and determine a premium for coverage addressing the collateral losses associated with other types of P&C insurance.

Again, a reminder -

Patent applications have been published 18 months after their filing date only since March 15, 2001.  Therefore, there are many pending applications not yet published.  A conservative assumption would be that there are about 150 applications filed every 18 months in class 705/4. 


Because the pending patents total above includes all patent applications published since March 15, 2001, applications that have been subsequently issued will also appear in the issued patents totals. 

Resources
Links to web sites with patent information.

United States Patent and Trademark Office

World Intellectual Property Organization (Patent Cooperation Treaty)

Patent Laws and Regulation
(A link to USPTO.gov web site)

Patent Agent Services
Link to Markets, Patents & Alliances.

Actuarial Services
Link to Tom Bakos Consulting, Inc.

Introduction

This issue of the Insurance IP Bulletin marks the beginning of our second year of publication.  With six issues under our belt, we hope that we have been able to enlighten many and, at least, keep the rest well informed.  We look forward to another exciting year. 


Our readers do, occasionally, give us hints that point us new directions.  Based on recent feedback we have received, with this issue we will attempt to provide more detailed information on newly issued patents and newly published patent applications in the field of insurance, that is, class 705/4. 


We hope our readers will continue to make us aware of special areas of interest regarding intellectual property in the insurance area in which they think we should focus.

For those not familiar with the term, we present a feature article on patent trolls.

Our mission is to provide our readers with useful information on how intellectual property in the insurance industry can be and is being protected – primarily through the use of patents. We will provide a forum in which insurance IP leaders can share the challenges they have faced and the solutions they have developed for incorporating patents into their corporate culture.

Please use the FEEDBACK link above to provide us with your comments or suggestions. Use QUESTIONS for any inquiries. To be added to the Insurance IP Bulletin e-mail distribution list, click on ADD ME. To be removed from our distribution list, click on REMOVE ME.

Thanks,

Tom Bakos & Mark Nowotarski


FEATURE ARTICLE

Patent Trolls

By: Tom Bakos

Patent Troll

What is a Patent Troll …  something you wouldn’t want to meet on a dark bridge unless you had a little change in your pocket. 

Peter Detkin coined the term Patent Troll while Intel’s patent counsel to replace a less glamorous term he had been using to describe the ugly, bottom feeding, scum sucking, parasitic creatures collecting tolls (figuratively) from him for crossing bridges that no one else was using.  To some on Peter Detkin’s side of the river, patent trolls give the mythological Scandinavian creature after whom they are named an even worse reputation.  But we should remember before we pass judgment that beauty is in the eye of the beholder.


What patent trolls do that is so offensive is to buy up patent rights – something like buying bridges – to patents that no one is actually using – and which they have no intention of actually using themselves.  Just like the fabled trolls they are named for, they don’t use the bridges to get to the other side.  Their preferred position is under the bridge where they lie in wait, in the muck, for some Billy Goats to come along. 

Unfortunately for the poor Billy Goats, patent trolls are not the dim witted troll creatures we learned about in third grade.  And, more important than that, they are real.  They don’t go away when you turn on the lights.  At least, they haven’t so far.


For the outraged posse wanting to cross the bridges to the future under which the patent trolls lie in wait, it is a matter of fairness.  Innovation and progress are stifled, they say, when those who, like themselves, are trying to live the American dream are ambushed by ugly, opportunistic patent trolls with hijacked claims to innovation apparently abandoned by the rightful owners.  Such patent rights, they feel, ought to be fair game for all.  Essentially, they have a use-it-or-lose-it philosophy. 


OK.  It’s time for a little refresher on what a patent is.  A patent (in the U.S.) is issued to a person who invents something.  The something can take many different forms which are not important for this discussion.  The important thing is that a patent conveys a right to the inventor to exclude others from making, using, or selling the invention.  That’s all a patent is good for.  A patent is “intellectual” property and can be sold, bought, rented, shared, traded, used, abused, or abandoned just like any other piece of property.  And, since 1995, patent intellectual property rights have been limited to a period of 20 years.


So, all the so called patent trolls are doing is exercising their right as owners of the patents they acquired to exclude others from making, using or selling their invention or, alternatively, pay a toll or royalty.  What’s wrong with that? 


Admittedly, it’s their invention not because they invented it but because they bought it.  And, if they are good patent trolls, they probably have a whole big bag of those purchases slung across their ugly misshapen backs.  But, while you may have no compassion for the heavy load they bear, their enterprise makes them rich trolls and they willingly bear the burden.  Why should this collector of valuable things be called a “troll”.  Why not  patent entrepreneur.  You may not like that kind of down and dirty entrepreneurship if you are trying to cross their bridge but things would look a lot different from the muck under your bridge. 


Mythological history, I think, clearly shows that trolls, generally, are losers.  They may be feared and reviled but in the end they always lose because … well, because that is the lesson that fairy tales teach in the land the river divides.  The successful entrepreneurship of modern patent trolls, however, is turning around that loser status.  Ingenuity and self esteem was the only driving force they needed to make something of themselves in the patent business.  Their outlook from under the bridge is getting a lot brighter.  No longer do patent trolls need to skip school on picture day.


Of course, being trolls they are still feared and reviled – by the fair haired, bright eyed boys who see new competition in the category “most likely to succeed” and, may fairy tale legend forbid, for prom king!  These – well, shall we call them patent bullies? – are all in a flutter because tailors are now making tuxedos in troll sizes. 

What are patent bullies?  Well, from a patent troll perspective they are much like the third Billy Goat Gruff.  You remember the third Billy Goat Gruff with the hoarse bossy voice who followed his two smaller brother Billy Goat Gruffs across the fairy tale troll’s bridge.  He claimed passage across the troll’s bridge, according to the tale, by using his horns to poke the troll’s eyes out through his ears, crush him to bits body and bone, and then toss him over the bridge.  Then, as the fairy tale tells it, this third Billy Goat Gruff went up the hill to join his two brothers who, by the way, finagled their way across the bridge with lies and false promises, where they ate and ate and ate until they all got so fat they could not walk.    


Should patent trolls be criticized, vilified, and head butted just because they are exercising a legitimate right?  Making, using, or selling someone else’s invention without their permission is called infringement.  The fact that patent trolls are ugly and don’t make, use, or sell anything is an argument patent bullies make to excuse their free use of someone else’s patented invention in order to get so fat they cannot walk.  What a world we live in, huh? 

Well, feel that wind?  It’s the wind of change that always comes before the storm of reform.  It foretells new opportunities.  Congressman Lamar Smith (R-TX) has introduced legislation which he feels will improve the quality of patents issued by the U.S. Patent and Trademark Office and is intended to reform certain patent practices which patent trolls have relied on.  Thus, his Patent Reform Act of 2005 clearly addresses patent trolls and the things they do that he feels “disrupt the operations of high-tech companies and other businesses.”  Could Lamar Smith be a Billy Goat Gruff?


There is no doubt the patent trolls and the patent bullies are preparing strategies, tactics, arguments, and plans to address this new challenge.  It makes one wonder about the poor chicken.  For the first time in history he’s trying to figure out whether or not he should cross the road.  The patent bully has invited him to dinner on the other side and the patent troll wants to charge him fifty cents to get there.  It used to be a no-brainier.  But, now, he’s giving serious thought to just staying put.