Why Patents?
Are you the founder of a tech startup? Are you dreaming of becoming one? Perhaps you are an inventor of a new type of robot or electronic gizmo. Or are you the CEO or CTO of a scale up that is now thinking hard about protecting its innovations.
In the tech world, moving at the speed of light, intellectual property has become a key part of innovation and competitive advantage and the ability to decipher and understand patents is no longer a niche skill—it’s a necessity.
Patents, are legal documents that protect inventions and technological advancements. They are also known as invention rights or the right for you to practice your invention. The patent grant provides the holder with the exclusive right to prevent others from making, using, offering for sale, selling, or importing the invention into the United States throughout the term of the patent.
Patents serve as both shields and swords in the corporate arena, influencing everything from product development to mergers and acquisitions. For example:
- In 2011, Apple sued Samsung. They won a $1 billion settlement based largely on evidence that Samsung had intentionally tried to make their version of Android look more like iOS. That was later reduced to $550 million. Apple launched this lawsuit in 2011.
- In May 2024, a federal jury in Delaware said Microsoft must pay patent owner IPA Technologies $242 million, after determining that Microsoft’s Cortana virtual-assistant software infringed an IPA patent. (Google and Amazon were also sued for infringing IPA’s voice recognition technology)
- In 2011 Google acquired Motorola for $12.5 billion. Later, they sold the company to Lenovo for $2.9 billion but not before taking a license to all the patents. Yes – Google wanted to protect Android from patent threats helped by Motorola’s 20,000+ patent portfolio. See Time.
According to recent data from the U.S. Patent and Trademark Office, 346,152 patents were granted in 2023 alone, with a significant portion in the tech sector. This is an increase from the fiscal year of 2000, when 182,218 patents were issued.This staggering number underscores the importance of patent literacy in today’s technology-driven economy.
“Understanding patents is not just for lawyers anymore,” says Dave Stevens, Founder of Stevens Law Group in Silicon Valley. “It’s become an essential skill for anyone looking to thrive in the tech industry.”
Staying Ahead of the Competition
You can do some patent research to assess the competitive landscape; or you may be evaluating your company’s own intellectual property portfolio; or you might be researching patents to stay ahead of industry trends; the ability to navigate and interpret patents can give you a significant edge.
While the intricacies of patent law are for specialized attorneys, developing a foundational understanding of how patents work can empower tech founders and CTOs/CEOs to make more informed decisions and communicate more effectively with legal teams.
Here, we shall try to demystify the structure of a typical U.S. utility patent, providing a simple guide to understanding these crucial documents. From the abstract to the claims, we’ll break down the key components of a patent, offering insights to help you leverage this knowledge in your day-to-day operations.
Reading Patents is Becoming a Fundamental Skill
As the tech industry continues to evolve at breakneck speed, the ability to read and understand patents is becoming as fundamental as coding or project management. It’s a skill that can open doors, spark innovation, and contribute to your company’s success in an increasingly competitive marketplace.
Understanding the Key Components of a Patent
Look at our example patent here.
Title
The title of a patent is not just a label. It’s a concise description of the invention that should accurately reflect its subject matter. While initially chosen by the applicant, the USPTO may suggest changes during examination to ensure it accurately represents the claimed invention. A well-crafted title can help researchers and competitors quickly understand the general field of the invention.
Inventor(s)
This section lists all individuals who contributed to the conception of the invention. It’s key for establishing ownership and credit. Under U.S. law, inventors are the default owners of patent rights unless otherwise assigned. This information can be valuable for understanding the origin of the invention and potential ownership if no assignment is recorded.
Assignee
The assignee is the entity or individual to whom the patent rights have been transferred, typically an employer or company. However, it’s important to note that this information is only accurate as of the patent’s issue date. For up-to-date ownership information, one must check the USPTO assignment database, as patents can be sold or transferred after issuance.
Filing Date and Priority Information
The filing date is when the patent application was submitted to the USPTO. However, the concept of “effective filing date” is more complex and crucial. A patent may claim priority to earlier applications (provisional, foreign, PCT, or earlier non-provisional), which can affect the effective filing date for different claims. This date is critical for determining what prior art can be used against the patent and for establishing the patent’s place in the technological timeline.
References Cited
This section lists prior art considered by the patent examiner during prosecution. It’s a valuable resource for understanding the technological context of the invention and over what the patent office deemed it novel. From a legal perspective, these cited references are less likely to be successful in invalidating the patent in future proceedings, as they’ve already been considered by the examiner.
Abstract
While it’s often the first thing people read, it’s important to note that the abstract provides a high-level overview of the invention but doesn’t define the scope of the patent protection. It’s more of a quick reference tool for researchers and patent searchers, limited to 150 words.
Drawings
Patent drawings are crucial for understanding the invention. They must illustrate all claimed elements and can include prior art figures to provide context. The representative drawing on the front page, selected by the examiner, is meant to give a quick visual representation of the invention.
Specification
The specification is the heart of the patent’s technical disclosure. It includes: a) Background: Provides context but often says little about the actual invention to avoid admitting prior art. b) Detailed Description: This section must enable a person skilled in the art to make and use the invention. It describes various embodiments and explains all elements shown in the drawings.
Claims
The claims are the most critical part of a patent, defining the legal scope of protection. They come in two main types: a) System Claims: Describe tangible things or apparatus. b) Method Claims: Describe processes or series of steps. Claims can also be independent (stand-alone) or dependent (referring back to another claim and adding further limitations).
Table summarizing the key components of a patent:
| Component | Description | Importance |
| Title | Concise description of the invention | Quickly identifies the subject matter |
| Inventor(s) | Individuals who contributed to the invention | Establishes initial ownership and credit |
| Assignee | Entity to whom patent rights are transferred | Indicates ownership at time of issuance |
| Filing Date | Date when application was submitted | Establishes timeline for patent protection |
| Priority Information | Earlier applications claimed for priority | Affects effective filing date and prior art considerations |
| References Cited | Prior art considered during examination | Shows what the invention was deemed novel over |
| Abstract | Brief (150 word) summary of the invention | Provides quick overview, but doesn’t define legal scope |
| Drawings | Visual representations of the invention | Illustrates claimed elements and embodiments |
| Specification | Detailed technical disclosure | Enables understanding and reproduction of the invention |
| – Background | Context of the invention | Provides field of invention without admitting prior art |
| – Detailed Description | Full explanation of the invention | Enables skilled person to make and use the invention |
| Claims | Legal definition of patent scope | Defines exact boundaries of patent protection |
| – System Claims | Describe tangible things/apparatus | Protects physical embodiments of the invention |
| – Method Claims | Describe processes/steps | Protects ways of doing things |
| – Independent Claims | Stand-alone claims | Broadest protection |
| – Dependent Claims | Refer back to other claims | Provide fallback positions and specific embodiments |
Information a patent typically provides and what it doesn’t:
Information a Patent Provides:
- Front page(s):
- Patent number
- Title of the invention
- Inventor(s) names
- Assignee (if applicable) at the time of grant
- Filing date
- Issue date
- Prior art references cited
- Abstract summarizing the invention
- Drawings:
- Visual representations of the invention
- Figures illustrating various aspects or embodiments
- Specification:
- Background section describing the field and prior art
- List of drawings
- Detailed description of the invention
- Optional sections:
- Summary of the invention
- Cross-reference to related applications
- Statement of government support (if applicable)
- Claims:
- Legal definition of the invention’s scope
- Description of what the inventor considers to be the protected elements
These are usually divided into dependent and independent claims. Here are some of the claims from our example patent:
Claims (45)
What is claimed is:
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- An electronic device, comprising:
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a touch screen display;
one or more processors;
memory; and
one or more programs wherein the one or more programs are stored in the memory and configured to be executed by the one or more processors, the one or more programs including instructions for:
displaying a user interface element that contains content, wherein the content includes content selected for editing;
visually distinguishing the content selected for editing from displayed content that is not selected for editing;
displaying an editing command display area element that includes a plurality of command icons;
moving the content on the touch screen display, including moving the content selected for editing;
ceasing to display the editing command display area element while moving the content;
when the content stops moving, redisplaying the editing command display area element;
detecting activation of a command icon of the plurality of command icons in the editing command display area,
in response to detecting activation of the command icon of the plurality of command icons, performing a corresponding action with respect to the selected content.
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- The electronic device of claim 1, wherein the plurality of command icons of the editing command display area element are displayed in a row.
- The electronic device of claim 1, wherein the one or more programs further include instructions for:
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detecting input by a user,
in response to detecting input by the user:
deselecting the selected content; and
ceasing to display the editing command display area.
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- The electronic device of claim 1, wherein the one or more programs further include instructions for:
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detecting a typing input by a user,
in response to detecting the typing input by the user:
replacing the selected content with characters that correspond to the typing input; and
ceasing to display the editing command display area element.
Information a Patent Doesn’t Provide:
- Current status of maintenance fees
- Whether the patent has expired
- Current owner of the patent (if ownership has changed since grant)
- Patent enforcement history:
- Whether it has been invalidated
- Whether it has been enforced in litigation
- Licensing agreements
- If it has been sold or transferred
- Information about subsequent related applications:
- Continuations
- Divisionals
- Other applications filed after the patent was granted
- Market value or commercial success of the invention
- Whether the invention is currently being practiced
- Updates or improvements to the invention made after filing
- Detailed manufacturing processes (unless specifically part of the claims)
- Business strategies related to the invention
A Deeper Look at Claims (The Heart of Patent Protection)
At Stevens Law Group, we often emphasize to our tech clients that claims are the most critical part of a patent. They define the legal boundaries of the invention and determine the scope of protection. In essence, claims tell us what the patent does and does not cover.
Types of Claims
We typically deal with two main categories of claims:
- System vs. Method Claims
Most patents, especially in the tech sector, include both system and method claims.
System Claims
These describe tangible objects or apparatuses. For our software and hardware clients, this might include claims for a “computer system,” “network device,” or “semiconductor apparatus.” While broad terms are common, we sometimes use more specific language like “neural network processor” or “cloud storage system” to narrow the scope appropriately.
Method Claims
These outline processes or series of steps. In the AI and software realm, method claims often describe algorithms or data processing techniques. For instance, a claim might detail steps for “training a machine learning model” or “encrypting data packets.”
Computer-Readable Medium (CRM) Claims
For our software clients, we frequently use CRM claims. These are a hybrid, describing a storage medium (like a system claim) that contains instructions for performing specific operations (like a method claim).
- Independent vs. Dependent Claims
Independent Claims
These stand alone and broadly define the invention. For a tech startup, an independent claim might cover the core functionality of their innovative software platform. Independent claims stand alone and are the broadest claims in a patent, typically starting with phrases like “A system…” or “A method…”. They are essential for determining patent infringement, as a product that infringes even one independent claim is considered to infringe the entire patent.
Dependent Claims
Conversely, dependent claims always refer back to and narrow the scope of an earlier, independent claim. They explicitly reference another claim, such as “the method of claim 3…”. While dependent claims are not primarily used to determine infringement, they play a valuable role in interpreting independent claims. It’s important to note that a product cannot infringe a dependent claim unless it also infringes the claim from which it depends.
These refer back to and further limit an independent claim. We often use these to cover specific implementations or features of the broader invention.
Crafting Effective Claims
When drafting claims for our tech clients, we ensure that:
- Each claim element is illustrated in the patent drawings.
- The detailed description thoroughly explains each claimed feature.
- The language is precise yet flexible enough to cover potential variations of the invention.
Potential Patent Infringement
As we’ve discussed, claims can be categorized as either independent or dependent. This distinction is crucial for determining the scope and enforceability of a patent.
When assessing potential patent infringement, the focus should be on independent claims. If a product does not infringe any independent claims, it doesn’t infringe the patent. However, dependent claims shouldn’t be ignored entirely, as they can provide important context for understanding the full scope of the patent protection.
So what have we learned?
Conclusion
Understanding the anatomy of a patent is crucial for inventors, entrepreneurs, and businesses operating in the tech sector. From the abstract to the claims, each component of a patent serves a specific purpose in defining and protecting intellectual property.
As we’ve explored, the claims are the heart of a patent, delineating the boundaries of the invention and the scope of legal protection. The specification provides the necessary context and detail to support these claims, while the drawings offer visual clarity. Together, these elements form a comprehensive legal document that can be a powerful asset in the competitive landscape of technology innovation.
Remember, a well-crafted patent not only protects your invention but can also serve as a valuable business asset, opening doors for licensing opportunities, partnerships, and market advantage. By understanding patents, you’re better equipped to leverage this powerful tool in your innovation strategy.