Patent Trial and Appeal Board: Covered Business Method Review example
One relatively new feature of the American intellectual property system is the “covered business method review” procedure run by the USPTO. Pretty much everything that happens in front of the U.S. Patent Trial and Appeals Board (PTAB) is public and available from ptabtrials.uspto.gov. A case in which I became involved as an expert witness in April 2014 was recently decided. I thought that readers might be interested to learn about the process. If you type in Case No. “CBM2014-00125” (or 126, 127, 128 to see the dockets for the related patents) at the ptabtrials site you can find everything (about 140 documents per case, many duplicated and/or with duplicated sections).
The dispute began in December 2013 when Paid, Inc. sued eBay for infringing four patents on calculating shipping costs (example patent; amended complaint). In parallel with defending the lawsuit in federal court, eBay in May 2014 filed four petitions for covered business method review (example; each CBM review has its own parallel set of paperwork). Each included a declaration from me (example). Paid, Inc. responded in August 2014 (example). In September 2014 the PTAB decided to institute review of the four patents (example). Paid, Inc. responded to that in January 2015 (example) with a single declaration from its own expert (link) and one from an inventor (link). eBay’s attorneys deposed the expert (transcript) and inventor (transcript) and filed a reply in April 2015, with a supplemental declaration from me. An oral hearing at which attorneys argued was held in June 2015 (transcript). A final decision was issued in September 2015.
Note that this is not necessarily the end of the legal road. Decisions of the PTAB that are adverse to patent owners can be appealed to a Federal Circuit Court.
[Sidenote/Opportunities Missed Department: In 1995 I was working for a large publisher and had the following conversation with management:
- Me: “You guys own newspapers all around the country with classified ad sections. How about giving classified ad buyers a free web listing and having a server aggregating classified ads from all around the nation?”
- Them: “How would that work?”
- Me: “Classified ads are pretty much free to display on the Web so you might want to look at the readers as giving us valuable content alongside which we can sell display ads. Once the ad is on the web we can let people offer the item at a fixed price or let the server run an auction for them. Because people won’t always be buying locally we can have a system that lets buyers and sellers report on or review each other.”
- Them: “That doesn’t sound very interesting.”
- Me: “I actually already built a working prototype. Do you want to see a demo?”
- Them: “Sure.”
- *** Demo ensued ***
- Them: “Still not something we’re interested in doing.”
- Me: “Do you mind if I take the code and run it on my photo.net site?”
- Them: “We don’t care. You can do whatever you want with it.”
Thus was born the photo.net classifieds, described in this chapter of Database-backed Web Sites. (You might ask why I built a complete functional system before getting the green light from management. This was before the era of CSS and JavaScript and thus I was able to build the whole system in three days.)]
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