Wednesday, March 26, 2014

          USPTO: Creating Transparency in Ownership of Patents & Applications

          Sample alt tag.
          "To put it simply," testified Prof. Robin Feldman, "shell games and hide-and-seek rarely make for an efficiently functioning market." (Photo from House Committee on Energy & Commerce's Subcommittee on Oversight & Investigations).

          The US Patent & Trademark Office held its hearing on Creating Transparency in Ownership of Patents & Patent Applications today at UC Hastings.

          Testimony provided by Robin Feldman, Professor of Law & Director of the Institute for Innovation Law at UC Hastings is reprinted here and highlights of key points are summarized below: 

          "To put it simply," writes Feldman, "shell games and hide-and-seek rarely make for an efficiently functioning market."

          • As the secondary market for patents expands, society must ensure sufficient information so that the market functions efficiently.
          • Information is a great leveler; it can help address the imbalance between how cheap it is to launch a patent demand and how expensive it is to determine whether the demand has merit.
          • Understanding the money flow as well as the formal control structures will be essential for understanding who is really in control.
          • Allowing vast networks of hidden behavior has the happy coincidence of preventing regulators from observing behavior. Public and private antitrust actors, as well as securities regulators, should be able to connect the dots that can reveal troubling patterns of behavior.

          Commending the USPTO for its revised proposals and noting that they are “a much needed effort to strike at the heart of transparency problems,” Professor Feldman suggested tightening three areas of the proposed rules that could allow patent holders to evade the regulation. (The full testimony provides examples of current patent owners and how the rules might fail.)

          • First, the antitrust thresholds referenced in the rules are too loose a sieve to catch all of the relevant information.
          • Second, the language related to “hidden beneficial owners”—that is, those who try to avoid detection—should be strengthened. Explicit reference to securities law disclosure concepts could ensure that the rules cover not only today’s evasion techniques but also tomorrow’s.
          • Third, the rules require updated information at only a few times during the twenty-year term of the patent. Occasional information does not provide the robust information necessary for an openly functioning market. 

          "In short, patents are imbued with public interest by virtue of the fact that they are a government grant, bestowed only for purposes enshrined in the Constitution itself. As with the trading of public securities, the trading of an asset imbued with the public interest must be sufficiently regulated to ensure proper functioning of that trading market."

          Transcript

          Media Contact

          Alex A.G. Shapiro
          Director, Communications & Public Affairs
          UC Hastings College of the Law
          Office: (415) 581-8842
          Cell: (415) 813-9214
          Email: shapiroa@uchastings.edu

          ###

          Go to News Archive

          Share this Story

          Share via Facebook
          Share via TwitterShare via EmailPrint Friendly Version

          Other Recent Stories/ RSS

          Monday, May 22, 2017

          UC Hastings Students Honored for Public Interest Service

          The UC Hastings community celebrates its inspiring, tireless, and big-hearted students with a dedication to serve and help others in need.
          Tuesday, May 09, 2017

          Antitrust Law & American Rag: Larry Russ ’78 gives his advice on success in law and entrepreneurial ventures

          UC Hastings alumnus Larry Russ discusses the law, business, and making a plan for the future.
          Monday, May 01, 2017

          Thinkers & Doers: April 2017

          Legal Marketing Website -- The Nuclear Option -- A Festschrift for Prof. Miyazawa -- “Nobody’s going to copy something that’s going to kill people” -- One of the Frozen Chosen -- Wildfire Gig Economy -- and much more
          Monday, May 01, 2017

          UC Hastings Courtside: 3L Paul Jones works with Brooklyn Legal Services in New York City

          Paul Jones experiences real-life practice in Brooklyn, New York and the Kings County Housing Court through the Pro Bono Scholars Program.
          Thursday, April 20, 2017

          Legalized: Aaron Herzberg ’95 is at the forefront of California’s budding cannabis industry.

          2L Jeremy Schwartz, President of UC Hastings Law Students for Sensible Drug Policy, interviews the divorce attorney turned marijuana real estate entrepreneur and dispensary owner.
          Go to News Archive