Digital Commons Network^™

The Rule Of Reason, Herbert J. Hovenkamp

All Faculty Scholarship

Antitrust’s rule of reason was born out of a thirty-year (1897-1927) division among Supreme Court Justices about the proper way to assess multi-firm restraints on competition. By the late 1920s the basic contours of the rule for restraints among competitors was roughly established. Antitrust policy toward vertical restraints remained much more unstable, however, largely because their effects were so poorly understood.

This article provides a litigation field guide for antitrust claims under the rule of reason – or more precisely, for situations when application of the rule of reason is likely. At the time pleadings are drafted and even up …

From Creativity To Classification: A Logical Approach To Patent Searching, Marian G. Armour-Gemmen

Faculty & Staff Scholarship

Engineering students and professors need to understand and search intellectual property. In the past, librarians have instructed them on using the United States Patent Classification (USPC). In 2015, after a period of transition, the United States Patent and Trademark Office phased out the USPC and began exclusively classifying in the Cooperative Patent Classification (CPC). This adoption presented librarians a challenge of instructing students and professors in the easiest and most effective patent search. By tying patent searching to an example and presenting classification in an understandable fashion using CPC in conjunction with USPC, this writer presents a logical directed search …

Patents Information Literacy Engineering Technology Session Materials, Margaret Phillips, Dave Zwicky

Libraries Faculty and Staff Creative Materials

This file contains the following materials developed to support a patents information literacy session in the mechanical engineering technology undergraduate curricula: pre-class exercise, in-class exercise, lesson plan, and pre/post session assessments.

Antimicrobial Resistance (Amr) And Multidrug Resistance (Mdr): Overview Of Current Approaches, Consortia And Intellectual Property Issues, Andrew Jenner, Niresh Bhagwandin, Stanley P. Kowalski

Law Faculty Scholarship

The supply of new diagnostics and treatments is insufficient to keep up with the increase in antimicrobial resistance (AMR) and multidrug resistance (MDR) as older medicines are used more widely and microbes develop resistance to them. At the same time, significant quantities of antibiotics are used on patients and animals that do not need them, while others who do need them lack access.

Effective responses to AMR/MDR require effort by both the public and private sectors to develop and disseminate new diagnostics, vaccines and treatments on a global scale, as well as to adapt them to local needs. This calls …

Patent Information Use In Engineering Technology Design: An Analysis Of Student Work, Margaret Phillips, Dave Zwicky

Libraries Faculty and Staff Scholarship and Research

How might engineering technology students make use of patent information in the engineering design process? Librarians analyzed team project reports and personal reflections created by students in an undergraduate mechanical engineering technology design course, revealing that the students used patents to consider the patentability of their ideas, to explore the state of the art in given areas of technology, and to inspire creative problem solving. These results have implications for future patent-related instruction and for conducting information literacy outreach to engineering and engineering technology departments.

Buying Monopoly: Antitrust Limits On Damages For Externally Acquired Patents, Erik N. Hovenkamp, Herbert J. Hovenkamp

All Faculty Scholarship

The “monopoly” authorized by the Patent Act refers to the exclusionary power of individual patents. That is not the same thing as the acquisition of individual patent rights into portfolios that dominate a market, something that the Patent Act never justifies and that the antitrust laws rightfully prohibit.

Most patent assignments are procompetitive and serve to promote the efficient commercialization of patented inventions. However, patent acquisitions may also be used to combine substitute patents from external patentees, giving the acquirer an unearned monopoly position in the relevant technology market. A producer requires only one of the substitutes, but by acquiring …

Ownership Of Intellectual Property In The Library Complex, Patrick Roughen

Library Philosophy and Practice (e-journal)

In order to broadly explore intellectual property in the context of the library complex, this research examines the patents produced by companies that provide goods and services to libraries, as well as patents associated with international libraries. This paper also surveys the trademarks and copyrights held by Charlotte Mecklenburg Library, located in Charlotte, North Carolina. This research suggests ways in which development of intellectual property by U.S. libraries might evolve in the future, with evidence obtained primarily through the searching of online databases.

The Emergence Of Classical American Patent Law, Herbert J. Hovenkamp

All Faculty Scholarship

One enduring historical debate concerns whether the American Constitution was intended to be "classical" -- referring to a theory of statecraft that maximizes the role of private markets and minimizes the role of government in economic affairs. The most central and powerful proposition of classical constitutionalism is that the government's role in economic development should be minimal. First, private rights in property and contract exist prior to any community needs for development. Second, if a particular project is worthwhile the market itself will make it occur. Third, when the government attempts to induce development politics inevitably distorts the decision making. …

Integration Of Information Literacy Skills To Mechanical Engineering Capstone Projects, Farshid Zabihian, Mary L. Strife, Marian G. Armour-Gemmen

Faculty & Staff Scholarship

Searching for information and using that information appropriately is an essential part of every engineering design project. It has been reported that design engineers spend about 30% of their time searching for information. Experience shows that even senior level students have not received proper training, either directly or indirectly, in information literacy (IL). They usually search for information intuitively. For mechanical and aerospace engineering students at West Virginia University Institute of Technology (WVU Tech), the Mechanical Engineering System Design I and II courses (MAE 480 and 481) are probably the last chance to teach students about IL. In this project, …

Researching The Early History Of The Patent Policy: Getting Started, Robert Berry

Librarian Publications

There are a lot of reasons to research the early history of American patent policy. It is an inherently interesting history that provides a framework making contemporary patent policy more comprehensible and a foundation for interpreting historic patent records. For students it provides an opportunity to become familiar with some of basic primary sources that are a staple of research into American history. Also, of course, questions may arise from time to time that can only be authoritatively answered by researching this history.

The approach described below seeks to balance comprehensiveness with feasibility, and emphasizes the importance of creating a …

Antitrust And The Patent System: A Reexamination, Herbert J. Hovenkamp

All Faculty Scholarship

Since the federal antitrust laws were first passed they have cycled through extreme positions on the relationship between competition law and the patent system. Previous studies of antitrust and patents have generally assumed that patents are valid, discrete, and generally of high quality in the sense that they further innovation. As a result, increasing the returns to patenting increases the incentive to do socially valuable innovation. Further, if the returns to the patentee exceed the social losses caused by increased exclusion, the tradeoff is positive and antitrust should not interfere. If a patent does nothing to further innovation, however, then …

Inventing The Classical Constitution, Herbert J. Hovenkamp

All Faculty Scholarship

One recurring call over a century of American constitutional thought is for return to a "classical" understanding of American federal and state Constitutions. "Classical" does not necessarily mean "originalist" or "interpretivist." Some classical views, such as the attempt to revitalize Lochner-style economic due process, find little support in the text of the federal Constitution or any of the contemporary state constitutions. Rather, constitutional meaning is thought to lie in a background link between constitution formation and classical statecraft. The core theory rests on the assumption of a social contract to which everyone in some initial position agreed. Like any contract, …

The Rule Of Reason And The Scope Of The Patent, Herbert J. Hovenkamp

All Faculty Scholarship

For a century and a half the Supreme Court has described perceived patent abuses as conduct that reaches "beyond the scope of the patent." That phrase, which evokes an image of boundary lines in real property, has been applied to both government and private activity and has many different meanings. It has been used offensively to conclude that certain patent uses are unlawful because they extend beyond the scope of the patent. It is also used defensively to characterize activities as lawful if they do not extend beyond the patent's scope. In the first half of the twentieth century the …

Brulotte'S Web, Herbert J. Hovenkamp

All Faculty Scholarship

Kimble v. Marvel Entertainment held that stare decisis required the Supreme Court to adhere to the half century old, much criticized rule in Brulotte v. Thys. Justice Douglas' Brulotte opinion concluded that license agreements requiring royalties measured by use of a patent after its expiration are unenforceable per se. The court need not inquire into market power nor anticompetitive effects, effects on innovation, and it may not accept any defense. Congress can change the rule if it wants to, but has resisted many invitations to do so.

Under Brulotte a hybrid license on patents and trade secrets requires a royalty …

Teece's Competing Through Innovation, Herbert J. Hovenkamp

All Faculty Scholarship

This essay reviews David J. Teece's book, Competing Through Innovation: Technological Strategies and Antitrust Policies (2013).

The 360° Of Information Fluency Delivery To Freshman Engineering Students, Marian G. Armour-Gemmen, Robin A.M. Hensel, Mary L. Strife

Faculty & Staff Scholarship

For three years, engineering librarians from West Virginia University (WVU) have been teaching information fluency skills to 700-1000 freshman engineering students per year, using a specific information fluency cycle. The librarians’ responsibilities in the Fall 2013 course syllabus included teaching once in each section, providing a two-hour, in-library group sessions to accommodate almost 700 students, delivering an intellectual property Blackboard™ module for students to complete over a specific period of time, and requiring students to complete a Plagiarism Avoidance Tutorial with quiz. Some of these components are similar to those of past semesters. However, past collection of the data was …

Patents As Business Intelligence Tools, Amy Jansen

Librarian Publications

As most entrepreneurs and business owners can tell you, one of the most significant considerations that companies face is how to protect their work. Managing intellectual property is now integrated with overall business models and corporate strategy. For this reason, patents have become crucial strategic pieces in business and competitive intelligence in the twenty-first century. Having the right patents, and even more importantly, knowing how to use them can either bolster or harm a company. As technology and rapid advancements in innovation become the cornerstone of corporate success, companies’ research and development (R & D) and patent spending have become …

Consumer Welfare In Competition And Intellectual Property Law, Herbert J. Hovenkamp

All Faculty Scholarship

Whether antitrust policy should pursue a goal of "general welfare" or "consumer welfare" has been debated for decades. The academic debate is much more varied than the case law, however, which has consistently adopted consumer welfare as a goal, almost never condemning a practice found to produce an actual output reduction or price increase simply because productive efficiency gains accruing to producers exceeded consumer losses.

While some practices such as mergers might produce greater gains in productive efficiency than losses in consumer welfare, identifying such situations would be extraordinarily difficult. First, these efficiencies would have to be "transaction specific," meaning …

Toward A Closer Integration Of Law And Computer Science, Christopher S. Yoo

All Faculty Scholarship

Legal issues increasingly arise in increasingly complex technological contexts. Prominent recent examples include the Stop Online Piracy Act (SOPA) and the Protect Intellectual Property Act (PIPA), network neutrality, the increasing availability of location information, and the NSA’s surveillance program. Other emerging issues include data privacy, online video distribution, patent policy, and spectrum policy. In short, the rapid rate of technological change has increasingly shown that law and engineering can no longer remain compartmentalized into separate spheres. The logical response would be to embed the interaction between law and policy deeper into the fabric of both fields. An essential step would …

Competition For Innovation, Herbert J. Hovenkamp

All Faculty Scholarship

Both antitrust and IP law are limited and imperfect instruments for regulating innovation. The problems include high information costs and lack of sufficient knowledge, special interest capture, and the jury trial system, to name a few. More fundamentally, antitrust law and intellectual property law have looked at markets in very different ways. Further, over the last three decades antitrust law has undergone a reformation process that has made it extremely self conscious about its goals. While the need for such reform is at least as apparent in patent and copyright law, very little true reform has actually occurred.

Antitrust has …

Anticompetitive Patent Settlements And The Supreme Court's Actavis Decision, Herbert J. Hovenkamp

All Faculty Scholarship

In FTC v. Actavis the Supreme Court held that settlement of a patent infringement suit in which the patentee of a branded pharmaceutical drug pays a generic infringer to stay out of the market may be illegal under the antitrust laws. Justice Breyer's majority opinion was surprisingly broad, in two critical senses. First, he spoke with a generality that reached far beyond the pharmaceutical generic drug disputes that have provoked numerous pay-for-delay settlements.

Second was the aggressive approach that the Court chose. The obvious alternatives were the rule that prevailed in most Circuits, that any settlement is immune from antitrust …

Patent Value And Citations: Creative Destruction Or Strategic Disruption?, David S. Abrams, Ufuk Akcigit, Jillian Popadak

All Faculty Scholarship

Prior work suggests that more valuable patents are cited more and this view has become standard in the empirical innovation literature. Using an NPE-derived dataset with patent-specific revenues we find that the relationship of citations to value in fact forms an inverted-U, with fewer citations at the high end of value than in the middle. Since the value of patents is concentrated in those at the high end, this is a challenge to both the empirical literature and the intuition behind it. We attempt to explain this relationship with a simple model of innovation, allowing for both productive and strategic …

Innovation, Ip Rights, And Anticompetitive Exclusion, Herbert J. Hovenkamp

All Faculty Scholarship

This book of CASES AND MATERIALS ON INNOVATION AND COMPETITION POLICY is intended for educational use. The book is free for all to use subject to an open source license agreement. It considers numerous sources of competition policy in addition to antitrust, including those that emanate from the intellectual property laws themselves, and also related issues such as the relationship between market structure and innovation, the competitive consequences of regulatory rules governing technology competition such as net neutrality and interconnection, misuse, the first sale doctrine, and the Digital Millennium Copyright Act (DMCA). Chapters will be updated frequently. The author uses …

Innovation, Inequality, And The Commercialization Of Academic Research, Walter Valdivia

Brookings Scholar Lecture Series

Patent policy is rarely debated in relation to its distributive consequences. In particular, the Bayh-Dole Act has been discussed in terms of its effects on the pace of innovation or the organization of science. However, this lecture re-assesses this policy from the perspective of a fair distribution of resources, both those committed to and those created by research-based innovation. Specifically, examining the management of university’s intellectual property, Valdivia will identify the institutional arrangements that reinforce a very asymmetric distribution of political and economic resources among universities and then characterize subtle but important links between these inequalities and the social distribution …

Institutional Advantage In Competition And Innovation Policy, Herbert J. Hovenkamp

All Faculty Scholarship

In the United States responsibility for innovation policy and competition policy are assigned to different agencies with different authority. The principal institutional enforcers of patent policy are the United States Patent and Trademark Office (USPTO), the International Trade Commission (ITC), and the federal district courts as overseen by the United States Court of Appeals for the Federal Circuit, and ultimately the Supreme Court. While competition policy is not an explicit part of patent policy, competition issues arise frequently, even when they are not seen as such.

Since early in the twentieth century antitrust courts have had to confront practices that …

The Effects Of Corporate Governance On The Innovation Performance Of Chinese Smes, Yao Tang, Daniel Shapiro, Miaojun Wang, Weiying Zhang

Economics Department Working Paper Series

We investigate the degree to which corporate governance and ownership affects the innovation performance of firms in China with a particular focus on privately owned small and medium enterprises (SMEs). We hypothesize that (1) board-related governance measures will enhance innovation because they improve monitoring and provide access to necessary resources; (2) ownership concentration initially facilitates innovation because large shareholders are more likely to commit to the long-term nature of innovation, and have the incentive to monitor managers whose time horizon may be shorter; however we argue that these effects weaken as large shareholders becomes entrenched at higher levels of concentration; …

Poisoning The Next Apple? The America Invents Act And Individual Inventors, David S. Abrams, R. Polk Wagner

All Faculty Scholarship

The Leahy-Smith America Invents Act, the most significant patent law reform effort in two generations, has a dark side: It seems likely to decrease the patenting behavior of small inventors, a category which occupies special significance in American innovation history. In this paper we empirically predict the effects of the major change in the law: a shift in the patent priority rules from the United States’ traditional “first-to-invent” system to the predominant “first-to-file” system. While there has been some theoretical work on this topic, we use the Canadian experience with a similar change as a natural experiment to shed …

Unenforceability, Lee Petherbridge Ph.D., Jason Rantanen, R. Polk Wagner

All Faculty Scholarship

The patent doctrine of inequitable conduct—which allows a patent to be held unenforceable on the basis of misbehavior by the applicant during patent prosecution—has been the subject of intense criticism from the bench and bar alike. And yet to date there has been no systematic attempt to determine whether the doctrine is or is not working as theorized. This study fills that gap. We evaluate the performance of the inequitable conduct doctrine with a novel methodological approach: by empirically characterizing the differences between patents found unenforceable and several other types of patents (unlitigated, litigated, invalid, obvious, and underdisclosed), we use …

Financial Services Innovation: Opportunities For Transformation Through Facial Recognition And Digital Wallet Patents, Debora S. Bartoo

Antioch University Dissertations & Theses

Bringing innovation to the marketplace for new products and services involves creativity, a culture in which change flourishes, and leadership that thrives on transformation and complexity. This study explored the potential for market disruption or change based on innovations involving patents granted to nonfinancial services organizations that could affect financial services, specifically consumer or retail bank products. It involved analyzing documents related to recently granted patents and completing a mixed methods survey integrating the Delphi research technique. This method required multiple iterations of a survey presented to expert panelists or industry thought leaders to attempt to gain consensus ("Consensus", 2011) …

Competition In Information Technologies: Standards-Essential Patents, Non-Practicing Entities And Frand Bidding, Herbert J. Hovenkamp

All Faculty Scholarship

Standard Setting is omnipresent in networked information technologies. Virtually every cellular phone, computer, digital camera or similar device contains technologies governed by a collaboratively developed standard. If these technologies are to perform competitively, the processes by which standards are developed and implemented must be competitive. In this case attaining competitive results requires a mixture of antitrust and non-antitrust legal tools.

FRAND refers to a firm’s ex ante commitment to make its technology available at a “fair, reasonable and nondiscriminatory royalty.” The FRAND commitment results from bidding to have one’s own technology selected as a standard. Typically the FRAND commitment is …