Electrical Engineering Ganguli Jabade Nanotechnology Intellectual Property Rights N a Research, Design, and Commercialization n Nanotechnology o “…this invaluable and creative endeavor… will fill the present void of an authoritative reference t e source in nanotechnology-related IPR. I am sure it will be used extensively as well by students, research workers, entrepreneurs, business management specialists, lawyers, and policy c Intellectual Property Rights makers involved in the field of nanotechnology.” h n —R. Chidambaram, Principal Scientific Adviser, Government of India o Research, Design, and Commercialization Nanotechnology Intellectual Property Rights: Research, Design, and Commercialization lo offers an overview of the dynamics of development and commercialization in nanotech, where g strategic integration of IP, R&D, and commercialization has become imperative. It demystifies issues of intellectual property rights (IPR) associated with research, design, technology transfer, y and commercialization of innovations in technology-led areas such as nanotech. I n Gives all stakeholders vital information to instill confidence by helping them better understand t their individual roles in the IPR process e l Designed for a diverse readership that may not have background knowledge of the legal nuances l e of IPR, this book clearly articulates techno-legal aspects of nano-related innovations to aid their effective integration into businesses. This resource stands apart by using numerous case studies c and pictorial illustrations, addressing aspects ranging from ideation to commercialization of IP- t u enabled nanotechnology. It illustrates the evolving patent landscape in nanotechnology, explores the international patent classification system, and details patenting procedures in a range of a jurisdictions, including search for nanotechnology prior art and creation of search strategies. l P The authors discuss patent-led nanotechnology businesses, presenting a wide range of r case studies that address construction of valuable patent portfolios, growth of start-ups, and o consolidation of IP-led nanobusinesses through mergers, acquisitions, joint ventures, strategic p investments, etc. They also cover patent litigations in nanotechnologies and the significance of strategically crafting agreements related to IP transactions. In addition, they address compliance e with contractual obligations, the importance of well-drafted patent specifications, and sensitive r aspects of conducting techno-legal due diligence prior to the development and marketing of t products. Also covered are vulnerabilities in challenging/defending the validity of patents and y negotiating settlements. R Integrating use of the IPRinternalise® model for capacity building in human and infrastructural i g resources, the authors assess the future of IP landscaping in nanotechnology. Here, they focus on patentability, public perception of risks to health and ecosystems, institutionalized management h of intellectual property rights, and the steps that will be necessary to meet these and other such t challenges on the way to realizing profits in nanotech. s K12576 Prabuddha Ganguli • Siddharth Jabade ISBN 978-1-4398-5528-7 90000 9 781439 855287 www.crcpress.com K12576_COVER_final_revised_2.indd 1 5/29/12 1:56 PM Nanotechnology Intellectual Property Rights Research, Design, and Commercialization Perspectives in Nanotechnology Series Editor Gabor L. Hornyak Medical Nanotechnology and Nanomedicine Harry F. Tibbals Nanotechnology: The Business Michael T. Burke Nanotechnology: Ethics and Society Deb Bennett-Woods Nanotechnology Health and Environmental Risks Jo Anne Shatkin Nanotechnology: Legal Aspects Patrick M. Boucher Nanotechnology: The Future Thomas J. Frey Nanotechnology and Global Sustainability Donald Maclurcan Nanotechnology: Public Perception and Risk Communication Susanna Hornig Priest Nanotechnology Intellectual Property Rights: Research, Design, and Commercialization Prabuddha Ganguli and Siddharth Jabade Nanotechnology Intellectual Property Rights Research, Design, and Commercialization Prabuddha Ganguli Siddharth Jabade CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2012 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Version Date: 20120515 International Standard Book Number-13: 978-1-4398-5602-4 (eBook - PDF) This book contains information obtained from authentic and highly regarded sources. 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Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com Contents List of Illustrations .................................................................................................ix List of Tables ...........................................................................................................xi Foreword ..............................................................................................................xiii Preface .....................................................................................................................xv Acknowledgments .............................................................................................xvii About the Authors ..............................................................................................xix 1 How Big Is Small? ..........................................................................................1 1.1 Evolving Patents Landscape in Nanotechnology ...........................13 1.2 Trends in the United States ................................................................15 References .......................................................................................................21 2 Patents: A Background ................................................................................23 2.1 Patentable Subject Matter ...................................................................26 2.2 Novelty (New) .....................................................................................27 2.3 Inventive Step (Nonobviousness) .....................................................30 2.3.1 Invention to Be Considered as a Whole ..............................32 2.3.2 Europe .....................................................................................32 2.3.3 United States ...........................................................................34 2.3.4 United Kingdom ....................................................................35 2.3.5 Australia ..................................................................................36 2.3.6 Japan ........................................................................................37 2.3.7 India .........................................................................................37 2.4 Capable (Susceptible) of Industrial Application (Utility) ..............38 2.5 Anatomy of a Patent............................................................................39 2.5.1 Example 1 ................................................................................43 2.5.2 Example 2 ................................................................................44 2.5.3 Example 3 ................................................................................45 2.5.4 Example 4 ................................................................................46 2.5.5 Example 5 ................................................................................48 2.5.6 Example 6 ................................................................................49 2.5.7 Example 7 ................................................................................50 2.6 Patenting Systems: An Overview .....................................................51 2.7 The PCT Process ..................................................................................59 2.7.1 Advantages of PCT ................................................................64 References .......................................................................................................64 3 Looking for Nanotechnology Prior Art ....................................................67 3.1 International Patent Classification System ......................................68 3.1.1 European Patent Office (EPO) ..............................................68 3.1.2 United States Patent and Trademark Office (USPTO).......69 v vi Contents 3.1.3 Japan Patent Office (JPO) Website ........................................70 3.2 Searching Other Sources for Nanotechnology Information.........72 3.3 Creating Search Strategies .................................................................73 3.3.1 Types of Patent Searches .......................................................73 3.4 Illustrative Example ............................................................................74 3.4.1 Search Strategies and Approaches ......................................75 3.4.1.1 Strategy and Approach of the Authors ...............75 3.4.1.2 Strategy and Approach by Sci-Edge Information India SciFinder/STN/Chemical Abstract Service (CAS) Representative in India ...81 References .......................................................................................................89 4 Patent-Led Nanotechnology Business: Perspectives .............................91 4.1 Integration of a Fragmented Patent Landscape ..............................95 4.2 Case Study 1: NanoInk, Inc. ...............................................................96 4.3 Case Study 2: Nanosphere, Inc. .........................................................96 4.4 Case Study 3: NVE Corporation .......................................................97 4.5 Case Study 4: Vista Therapeutics, Inc. .............................................99 4.6 Case Study 5: Applied Nanotech Holdings, Inc. ..........................100 4.7 Case Study 6: mPhase Technologies, Inc. ......................................109 4.8 Case Study 7: Bilcare Research, Pune, India .................................111 4.9 Case Study 8: HyCa Technologies Pvt Ltd., Mumbai, India .......113 4.10 Case Study 9: Consolidation through Sequential Merger of Carbon Nanotechnologies, Inc. (CNI), Nanopolaris, Unidym, and Nanoconduction, and Acquisition of Unidym by Wisepower Co. Ltd. .....................................................................114 4.11 Case Study 10: Innovalight and DuPont Merger ..........................118 4.12 Invitrogen (Presently Life Technologies Corporation) ................120 4.13 Strategic Investing and the Role of Venture Capital ....................123 4.13.1 Case Study: Nanostart AG ..................................................123 4.14 Bonds ..................................................................................................124 4.14.1 MagForce AG ........................................................................125 4.14.2 BioMers Pte Ltd. ...................................................................125 4.14.3 Holmenkol AG .....................................................................126 4.14.4 ItN Nanovation AG ..............................................................126 4.14.5 Namos GmbH .......................................................................127 4.14.6 Lumiphore, Inc. ....................................................................128 4.14.7 Microlight Sensors Pte Ltd .................................................128 4.14.8 Membrane Instruments Technology Pte Ltd (MINT) ....128 4.14.9 Nanosys, Inc. .........................................................................129 References .....................................................................................................134 5 Patent Litigations in Nanotechnologies .................................................135 5.1 Nanosys, Inc. v. Nanoco Technologies and Sigma-Aldrich Corporation ..........................................................................................136 Contents vii 5.2 DuPont Air Products NanoMaterials LLC v. Cabot Microelectronics Corporation ..............................................................137 5.2.1 Court Proceedings ...............................................................141 5.3 Nano Proprietary, Inc. (NPI) v. Canon ...............................................142 5.3.1 The Issue................................................................................143 5.4 Elan Pharmaceuticals International Ltd. v. Abraxis BioScience, Inc. ...............................................................................146 5.4.1 Jury Verdict ...........................................................................151 5.4.2 The Judgment .......................................................................151 5.4.3 The Final Settlement ............................................................151 5.5 Oxonica Energy Ltd. v. Neuftec Ltd. ...................................................152 5.5.1 The Issue................................................................................156 5.5.2 The Judgment .......................................................................156 5.5.3 Business Consequences of the Judgment .........................158 5.6 DSM v. 3D Systems ............................................................................158 5.7 Veeco Instruments v. Asylum Research ...............................................162 5.7.1 Postjudgment Proceedings .................................................165 5.8 Modumetal, Inc. v. Integran, Inc. ........................................................166 5.9 MTS Systems Corp. v. Hysitron, Inc. .................................................166 5.10 EV Group v. 3M ..................................................................................167 5.11 Tekmira v. Alnylam ..............................................................................169 5.12 Other Nano Patents Litigation Snippets ........................................173 Endnotes ........................................................................................................175 Appendices ...................................................................................................178 6 Interfacing with the Nanofuture .............................................................215 6.1 Uncertainties Looming over IP Portfolios .....................................220 6.2 Case Study: Oxonica Ltd. (formerly Oxonica plc) ........................222 6.3 United They Stand, Divided They Fall ..........................................225 6.3.1 Case Study: Dendrimers and Commercialization by Starpharma Holdings Limited ...........................................228 6.3.2 Case Study: Nano Terra, Inc. ..............................................239 6.3.3 Case Study: Oxford Instruments plc .................................243 6.3.4 Case Study: Nanofibers—Xanofi .......................................244 6.3.5 Case Study: Infineon, Genus, UAlbany Center of Excellence in Nanoelectronics ...........................................245 6.4 Lessons from the Case Studies .......................................................245 6.5 Nanotechnology Patentability Issues: Gray Areas .......................246 6.6 Institutional IPR Policy and Management ....................................248 6.7 IPRinternalise® ..................................................................................252 6.8 Nanotechnology: Sunrise of the Day After ...................................253 References .....................................................................................................253 Index .....................................................................................................................255 TThhiiss ppaaggee iinntteennttiioonnaallllyy lleefftt bbllaannkk List of Illustrations Figure 1.1 Enterprise knowledge networking. ................................................2 Figure 1.2 Investment profile by governments in nanotechnology. ............3 Figure 1.3 Total worldwide nanotechnology publications ............................4 Figure 1.4 Number of publications in selected fields of nanotechnology. ....5 Figure 1.5 Dynamic nanovation. .......................................................................6 Figure 1.6 Emerging opportunities in nanotechnology. ................................8 Figure 1.7 Commercial nanogalaxy. ...............................................................11 Figure 1.8 Nanovation—IPR. ...........................................................................12 Figure 1.9 Patent applications in nanotechnology ........................................14 Figure 1.10 Major contributors to the global nanotechnology patenting landscape convergence .......................................................................14 Figure 1.11 Patent filing trend .........................................................................15 Figure 1.12 Patent filing trend .........................................................................16 Figure 1.13a Nanotechnology patent filings by U.S. and foreign applicants in the United States. ...........................................................................17 Figure 1.13b Comparison of nanotechnology patents by U.S. and foreign applicants. .................................................................................................17 Figure 2.1 Benchmarks for patentability. .......................................................25 Figure 2.2 Novelty aspects. ..............................................................................27 Figure 2.3 Tests for inventive step. ..................................................................33 Figure 2.4 European patent system .................................................................57 Figure 2.5 Japanese patent system ..................................................................58 Figure 2.6 United Kingdom patent system ....................................................59 Figure 2.7 United States patent system...........................................................60 Figure 2.8 Indian patent system. .....................................................................61 Figure 2.9 PCT system. .....................................................................................62 Figure 3.1 Search tools for nanotechnology. ..................................................71 ix