Anti-Patent Leadership Taking IEEE-SA on The Road to Knowhere? Part II

In my prior piece I noted IEEE General Director Karachalios’ anti-patent positions and protectionist associations that one might find troubling in a 25 year EPO employee or the Managing Director of what is billed as the “world’s largest technical professional organization for the advancement of technology.” One would have assumed that love of technological growth and internationalism were a key requirement for such a position.  Yet a review of Karachalios’ positions seem more that of an ideologue than anything else.  Indeed, like many an ideologue, he shows a disdain for pragmatism and an almost childish approach to established norms.  How else to explain the series of creative self-published pieces justifying the IEEE-SA IP policy rule provisions.

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Reasonable Steps and Trade Secret Protection

While companies are starting to better appreciate the role trade secrets can play in underpinning their intellectual capital, proactive trade secret management is still a very much neglected activity. This neglect can ultimately lead to the loss of valuable trade secrets and the loss of millions of dollars of value and legal fees. The widespread failure of many companies to take reasonable steps to protect their information should give managers and their company directors much pause. Fortunately, the law is starting to provide a clearer picture of what needs to be done, and there are many providers well versed in both best practices and productivity tools that will enhance a company’s trade secret protections. Read more

Anti-Patent Leadership Taking IEEE-SA on The Road to Knowhere? Part II

In my prior piece I noted IEEE General Director Karachalios’ anti-patent positions and protectionist associations that one might find troubling in a 25 year EPO employee or the Managing Director of what is billed as the “world’s largest technical professional organization for the advancement of technology.” One would have assumed that love of technological growth and internationalism were a key requirement for such a position.  Yet a review of Karachalios’ positions seem more that of an ideologue than anything else.  Indeed, like many an ideologue, he shows a disdain for pragmatism and an almost childish approach to established norms.  How else to explain the series of creative self-published pieces justifying the IEEE-SA IP policy rule provisions.

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The Value of a Confidentiality Agreement

Web search bar glossary term - confidentiality agreement

One of the most important developments in the world economy has been the increased importance of ideas and innovation. It is no exaggeration to say that they comprise the predominant source of economic value in the world today. The challenge with ideas and innovations is that they are intangible — and as such, they are hard to protect and even harder to value

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IP Monetization: 4 Categories for Consideration

Because IP monetization covers a wide range of business and legal activities, it is important to provide some examples.

Broadly, there are four categories of IP monetization:

1. The most straightforward is to get others — through negotiation or litigation — to pay (the IP owner) money for the right to practice or use your IP in exchange for cold, hard cash.

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Outsourced Manufacturing and Trade Secrets: Final Considerations

Transition Services

Trade secrets text concept isolated over white backgroundAfter termination or expiration, the company should require the manufacturer to provide extensive transition services to the company. In addition to customary provisions, the agreement could provide for the transfer to the company of key equipment; materials; or facilities. The agreement can further require the manufacturer to offer severance to crucial employees and encourage them to accept future employment with the company directly. 

Trademark Protection

The company should require that the products manufactured by the outsourced manufacturer prominently bear the company’s trademarks and are not offered in association with the name or mark of the manufacturer, or any other third party.

The agreement should also include appropriate quality control obligations and oversight relating to the use of the marks. This should help the company create and maintain equity in the marketplace concerning company-authorized products.

Non-Compete Covenants

Where possible under local law, the company should consider requiring certain non-compete covenants from the manufacturer so that the manufacturer has less incentive to misuse company trade secrets. These can also be included in modified employment agreements with the manufacturer’s employees. These provisions may be limited to a specific industry or sector, or in connection with specific company competitors.

Assignment and Change-of-Control Restrictions

Change-of-control and assignment restrictions are important protections in any outsourced manufacturing agreement. They can provide the company with assurances that:

  • The identity of the manufacturer will not change during the term of the agreement; and
  • A competitor will not obtain access to the company’s sensitive information through corporate affiliation with the service provider.

Applicable Law Considerations

The laws of each particular jurisdiction define what constitutes a trade secret in that country and the protective measures that owners must take to be eligible for legal remedies for misappropriation. Local counsel should, therefore, be consulted in each relevant jurisdiction to review the proposed agreement and to help determine the most effective means under local law to protect the applicable IP.

With respect to trade secrets, at least as it relates to the US, the Defendant Trade Secrets Act (DTSA), enacted in 2016, expands certain protections under US law by creating a private federal cause of action for trade secret misappropriation. Additionally, 49 states (with the notable exception of New York, which relies on common law) have adopted a version of the Uniform Trade Secrets Act (UTSA). The UTSA shares many similar provisions with the DTSA and may provide an additional or alternative cause of action if the misappropriation is within the state’s jurisdiction. 

In sum, outsourced manufacturing is a very important part of the global economy. Along with the benefits, there are significant risks. Accordingly, a thoughtful approach to choosing a manufacturing partner, and to protecting one’s intellectual crown jewels, is paramount. 

Related articles:

1. Outsourced Manufacturing and Trade Secrets: An Economic Overview

2. Outsourced Manufacturing and Trade Secrets: Outsourced Manufacturing

3. Outsourced Manufacturing and Trade Secrets: Risks & Benefits

4. Outsourced Manufacturing and Trade Secrets: Internal Controls

5. Outsourced Manufacturing and Trade Secrets: Due Diligence

6. Outsourced Manufacturing and Trade Secrets: Transaction Structure & Contract

7. Outsourced Manufacturing and Trade Secrets: Manufacturing Process & Personnel

8. Outsourced Manufacturing and Trade Secrets: Controlling the Manufacturing Process

9. Outsourced Manufacturing and Trade Secrets: Contractual Trade Secret Protection Measures 

10. Outsourced Manufacturing and Trade Secrets: The Manufacturer Relationship

11. Outsourced Manufacturing and Trade Secrets: Obligations Concerning Manufacturer’s Employees and Contractors

12. Outsourced Manufacturing and Trade Secrets: Security Procedures for Access, Storage, and Transmission

 

David L. Cohen

David L. Cohen, P.C. – Kidon IP
123 West 93rd Street
New York, NY 10025
dlc@davidlcohenpc.com 
(914) 357-5196

 

Standard Essential Patent Licensing Management

I am very pleased that Practical Law has published a piece I co-authored with Doug Clark and Eric Stasik that discusses anti-trust issues associated with Standard Essential Patents (SEPs) and considerations for counsel managing SEP licensing programs.  The purpose of the article was to provide a high-level overview of the entire life-cycle of SEP management from creation to licensing/litigation.

SEP Licensing - Dec19Jan20 PracticeNote

Outsourced Manufacturing and Trade Secrets: Security Procedures for Access, Storage, and Transmission (Part 12)

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Licensing of Trade Secrets and IP

The licensing of the company’s trade secrets and other IP should be consistent with the company’s identification of its trade secrets and other IP and appropriately limited in scope. Among other considerations, the license should be:

  • Narrowly tailored to cover only the manufacturer’s required use of the licensed information and IP. 
  • Revocable and subject to immediate termination when appropriate.
  • Sublicensable and assignable only to the extent necessary under the arrangement.

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My Compete PatSnap Academy Course on SEPs and Emerging Technologies is Now Available

It consists of 5 short videos (between 4-9 minutes each).  I hope viewers find it useful and informative.

https://www.youtube.com/playlist?list=PLZbvV5Lir4QUaIuh72E4unY9LCkWKdcvb

Anti-Patent Leadership Taking IEEE-SA on The Road to Knowhere? Part I

The IEEE?

As I noted previously, over the past five years or so, the IEEE has been captured by the implementer lobby and its advocates. But where did this trend originate from? It probably has its roots in its leadership.  In 2012, IEEE announced the appointment of Konstantinos Karachalios as its Managing Director.

The announcement boasted Karachalios’ 25 years of experience with the European Patent Office (EPO). However, what it failed to mention, was his long track record of expressing anti-patent positions, which likely held up his promotion and expedited his departure from the EPO.

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