{"id":18175,"date":"2012-09-04T13:07:43","date_gmt":"2012-09-04T17:07:43","guid":{"rendered":"http:\/\/www.iposgoode.ca\/?p=18175"},"modified":"2012-09-04T13:07:43","modified_gmt":"2012-09-04T17:07:43","slug":"avoiding-poison-apples-and-tending-to-blackberries-did-canadas-1989-shift-to-first-to-file-nip-small-time-innovation-in-the-bud","status":"publish","type":"post","link":"https:\/\/www.yorku.ca\/osgoode\/iposgoode\/2012\/09\/04\/avoiding-poison-apples-and-tending-to-blackberries-did-canadas-1989-shift-to-first-to-file-nip-small-time-innovation-in-the-bud\/","title":{"rendered":"Avoiding Poison Apples and Tending to Blackberries: Did Canada\u2019s 1989 Shift To First-To-File Nip Small-Time Innovation In the Bud?"},"content":{"rendered":"<p><a href=\"http:\/\/lsr.nellco.org\/cgi\/viewcontent.cgi?article=1394&amp;context=upenn_wps\">New legal research<\/a> from the University of Pennsylvania Law School suggests so. The aim of the study, according to Professors <a href=\"https:\/\/www.law.upenn.edu\/cf\/faculty\/dabrams\/\" target=\"_blank\" rel=\"noopener noreferrer\">David S. Abrams<\/a> and <a href=\"https:\/\/www.law.upenn.edu\/cf\/faculty\/pwagner\/\" target=\"_blank\" rel=\"noopener noreferrer\">R. Polk Wagner<\/a>,\u00a0is to empirically predict how the recent changes to American patent laws, introduced by <a href=\"http:\/\/www.gpo.gov\/fdsys\/pkg\/PLAW-112publ29\/html\/PLAW-112publ29.htm\" target=\"_blank\" rel=\"noopener noreferrer\">section 3<\/a> (s3) of the <a href=\"http:\/\/www.gpo.gov\/fdsys\/pkg\/PLAW-112publ29\/content-detail.html\" target=\"_blank\" rel=\"noopener noreferrer\">Leahy-Smith America Invents Act<\/a> (AIA), will affect American innovation after it comes into force on <a href=\"http:\/\/www.uspto.gov\/aia_implementation\/aia-effective-dates.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">March 16, 2013<\/a>.<\/p>\n<p><!--more--><\/p>\n<p>To achieve this end, Abrams &amp; Wagner looked to Canada\u2019s shift from a \u201c<em>first-to-invent<\/em>\u201d (FTI) to \u201c<em>first-to-file\u201d <\/em>(FTF) system for claiming priority. The study finds that the shift to FTF resulted in a reduction in the number of patents granted to individual Canadian inventors and small businesses and warns American law makers of similar consequences could result from the implementation of s3 of the AIA.<\/p>\n<p><strong>From First-To-Invent to First-To-File<br \/>\n<\/strong>Currently (and until March 16, 2013) the US follows an FTI-priority rule. \u00a0This means that in a dispute between two applicants for a patent of the same invention, the party which had the inventive idea first is entitled to the patent.\u00a0 This is typically established by using lab notebooks, emails and other documentation that may have recorded the date of invention.\u00a0 Conversely, a system based on FTF-priority rules relies on the date when\u00a0a patent application was <strong>filed with the Patent Office<\/strong> for the determination of priority.<\/p>\n<p><strong>The Resulting Issues<\/strong><br \/>\nThis change is not without controversy (<a href=\"http:\/\/www.iposgoode.ca\/2011\/10\/america-invents-act-most-significant-patent-reforms-since-1952\/\" target=\"_blank\" rel=\"noopener noreferrer\">see previous blog<\/a>). <a href=\"http:\/\/www.wnj.com\/Publications\/The-America-Invents-Act--A-Race-to-the-Patent-Offi\" target=\"_blank\" rel=\"noopener noreferrer\">Some critics<\/a> argue that a shift away from FTI-priority rules reduces the inventive process to a \u201crace to the patent office\u201d --a race that ultimately favors large corporations over individual inventors given that large firms have the financial capacity to keep expensive legal teams on call. <a href=\"http:\/\/johnkoenig.com\/the-america-invents-act-is-better-for-small-business\/\" target=\"_blank\" rel=\"noopener noreferrer\">Others<\/a>\u00a0have argued that the AIA\u2019s streamlining of the priority\u00a0 determination process is actually better for small businesses since it reduces overall legal costs in the event of a dispute (click <a href=\"http:\/\/www.nytimes.com\/2012\/08\/27\/technology\/mark-stadnyk-challenges-sweeping-revision-in-patent-law.html?_r=1\" target=\"_blank\" rel=\"noopener noreferrer\">here<\/a>\u00a0to read about a constitutional challenge to the AIA). Still others have raised relevant concerns pertaining to protection of the <a href=\"http:\/\/www.iposgoode.ca\/2012\/02\/patents-for-the-public-good\/\" target=\"_blank\" rel=\"noopener noreferrer\">public good<\/a>\u00a0and <a href=\"http:\/\/www.patentlyo.com\/patent\/2011\/10\/sarnoff-derivation-and-prior-art-problems-with-the-new-patent-act.html\" target=\"_blank\" rel=\"noopener noreferrer\">prior art identification<\/a>.<strong><\/strong><\/p>\n<p><strong>Contribution of the Abrams &amp; Wagner Study<br \/>\n<\/strong>Abrams &amp; Wagner lend an empirical perspective to this debate by considering a <a href=\"http:\/\/www.torys.com\/Publications\/Documents\/Publication%20PDFs\/ARTech-19T.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">similar law change<\/a> that occurred in Canada on <a href=\"http:\/\/www.glin.gov\/view.action?glinID=237318\" target=\"_blank\" rel=\"noopener noreferrer\">Oct 1, 1989<\/a>.\u00a0 This study finds that: (1) the overall rate of patent applications experienced a sudden drop after the law change (from an average of 1700 applications\/month to 1000 applications\/month), (2) patents awarded to individual inventors dropped by 15% after the legislative change, and (3) there was no apparent change in the quality of the patents granted after the law change \u2013 but is not conclusive as to the cause of these phenomena.<\/p>\n<p><strong>Caveats of the Abrams &amp; Wagner Study and Areas for Further Research<br \/>\n<\/strong>The authors submit that contemporaneous legal changes to the patent laws may have also affected the sudden drop in applications in 1989.\u00a0 These include: changing patent term from 17 to 20 years, the introduction of maintenance fees, and the introduction of deferred examination.<\/p>\n<p>Additionally, socio-economic causes may have contributed to a reduction in the number of patent applications submitted by individual inventors.\u00a0 These include: fewer resources available to inventors, less invention by individuals, demoralization in the light of the legal changes and an increase in the number of individual<br \/>\ninventors that joined firms.\u00a0 Further academic research into these possible causes should be conducted to test the conclusion reached by Abrams and Wagner.<\/p>\n<p>Regarding conclusion (3), Dr. Ron Bouchard wrote <a href=\"http:\/\/www.iposgoode.ca\/2011\/11\/anovelinnovationindexforlifesciencesinventions\/\" target=\"_blank\" rel=\"noopener noreferrer\">an interesting entry<\/a> on this blog, describing a new way of incrementally grading the value, not only for patents in the life sciences and other technology-intensive sectors, but also for associated regulatory approvals, chemical components, patent characteristics (the \u201cinnovative index\u201d).\u00a0 It would be interesting to see if the methodology developed by Dr. Bouchard could be used to expand upon the picture created by the Abrams &amp; Wagner study.\u00a0 (For other IPilogue entries pertaining to patent valuation click <a href=\"http:\/\/www.iposgoode.ca\/2011\/10\/patentvaluationthemeasurementgoldrushandtheemergingbubble\/\" target=\"_blank\" rel=\"noopener noreferrer\">here<\/a>\u00a0and <a href=\"http:\/\/www.iposgoode.ca\/2011\/12\/patent-valuation-part-2-combining-the-innovation-index-and-product-patent-clusters\/\" target=\"_blank\" rel=\"noopener noreferrer\">here<\/a>.)<\/p>\n<p><strong>Takeaway for Canadians<br \/>\n<\/strong>As <a href=\"http:\/\/www.canadianbusiness.com\/article\/95163--ontario-government-rim-universities-team-up-to-help-laid-off-workers\" target=\"_blank\" rel=\"noopener noreferrer\">Canadian business leaders and law makers<\/a> alike watch our largest tech giant <a href=\"http:\/\/www.canadianbusiness.com\/article\/90629--the-end-of-rim\" target=\"_blank\" rel=\"noopener noreferrer\">reinvent itself<\/a> through <a href=\"http:\/\/www.canadianbusiness.com\/article\/94761--rim-m2m-technology-may-help-save-company\" target=\"_blank\" rel=\"noopener noreferrer\">product reinvention<\/a>, <a href=\"http:\/\/www.canadianbusiness.com\/article\/95624--research-in-motion-lays-off-almost-a-quarter-of-workforce-in-halifax-minister\" target=\"_blank\" rel=\"noopener noreferrer\">downsizing<\/a>, and <a href=\"http:\/\/in.reuters.com\/article\/2012\/08\/21\/rim-jobs-uk-ireland-idINL2E8JL2WT20120821\" target=\"_blank\" rel=\"noopener noreferrer\">shuffling of management<\/a> \u2013 the Abrams &amp; Wagner study may raise some appropriate questions in this time of self-reflection.\u00a0 Does the Canadian patent system stifle true grassroots innovation in our tech sector? \u00a0If so, is there room for reform?\u00a0 If not, what are the consequences of the American harmonization with\u00a0the rest of the world's\u00a0FTF priority laws?\u00a0 Could we be seeing\u00a0the levelling of a procedural playing field? Could we start to see a reduction in the traditional Canadian-to-US brain drain?<\/p>\n<p>\u201c<em>Poisoning the Next Apple? How the America Invents Act Harms Inventors\u201d<\/em> can be viewed <a href=\"http:\/\/lsr.nellco.org\/cgi\/viewcontent.cgi?article=1394&amp;context=upenn_wps\" target=\"_blank\" rel=\"noopener noreferrer\">here<\/a>\u00a0and is scheduled for publication in the current volume of the <a href=\"http:\/\/www.stanfordlawreview.org\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stanford Law Review<\/a>.<\/p>\n<p><em>Beatrice Sze is a JD Candidate at Osgoode Hall Law School.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New legal research from the University of Pennsylvania Law School suggests so. The aim of the study, according to Professors David S. Abrams and R. Polk Wagner,\u00a0is to empirically predict how the recent changes to American patent laws, introduced by section 3 (s3) of the Leahy-Smith America Invents Act (AIA), will affect American innovation after [&hellip;]<\/p>\n","protected":false},"author":2140,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","footnotes":""},"categories":[1106,173,1112,1027,141,10,1001,1131,271,124,1,143,1105],"tags":[1661],"class_list":["post-18175","post","type-post","status-publish","format-standard","hentry","category-canada","category-cross-border-issues","category-ip-reform-ip","category-patent-practice","category-patentability","category-patents","category-regulatory-policy","category-smartphones","category-tech-transfer","category-technology","category-uncategorized","category-us","category-us-canada-relations","tag-beatrice-sze"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Avoiding Poison Apples and Tending to Blackberries: Did Canada\u2019s 1989 Shift To First-To-File Nip Small-Time Innovation In the Bud? - IPOsgoode<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.yorku.ca\/osgoode\/iposgoode\/2012\/09\/04\/avoiding-poison-apples-and-tending-to-blackberries-did-canadas-1989-shift-to-first-to-file-nip-small-time-innovation-in-the-bud\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Avoiding Poison Apples and Tending to Blackberries: Did Canada\u2019s 1989 Shift To First-To-File Nip Small-Time Innovation In the Bud? - IPOsgoode\" \/>\n<meta property=\"og:description\" content=\"New legal research from the University of Pennsylvania Law School suggests so. 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