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Q: Pattenting services ( Answered 3 out of 5 stars,   2 Comments )
Question  
Subject: Pattenting services
Category: Miscellaneous
Asked by: mcgrof-ga
List Price: $5.00
Posted: 29 Jul 2002 01:31 PDT
Expires: 28 Aug 2002 01:31 PDT
Question ID: 46372
Is it possible to pattent a service? For example, if someone would've
thought of pattenting the bus service (today's normal bus service,
where you get on a large-seated-truck, pay a fee, and take a ride to a
destination along with multiple people), would have they been able to
today? (other examples: pattenting taxi service, pattenting 411 call
assistance)

Clarification of Question by mcgrof-ga on 29 Jul 2002 01:46 PDT
Or even for that matter... could this service, for example, @
answers.google.com, be pattentable? Is it?
Answer  
Subject: Re: Pattenting services
Answered By: digsalot-ga on 29 Jul 2002 05:09 PDT
Rated:3 out of 5 stars
 
We are chasing through some fairly 'fuzzy' areas here since a
"service" before it actually becomes a "service" is for the most part
an abstract idea without a mechanical prototype.

"Interpretations of the statute by the courts have defined the limits
of the field of subject matter which can be patented, thus it has been
held that the laws of nature, physical phenomena and abstract ideas
are not patentable subject matter." - Quote from "What Can be Patented
 Excerpted from General Information Concerning Patents print brochure"
 Also from the same source: "A patent cannot be obtained upon a mere
idea or suggestion. The patent is granted upon the new machine,
manufacture, etc., as has been said, and not upon the idea or
suggestion of the new machine. A complete description of the actual
machine or other subject matter for which a patent is sought is
required."  You will find that at -
( http://www.uspto.gov/web/offices/pac/doc/general/what.htm  )  

Patents apply only to inventions and only if the inventions fall
within a legally-defined category.  These are:

"Utility Patents: Granted to inventions that involve a new and useful
process, device, machine, manufactured item, or chemical compound or
formula. Utility patents, which apply to virtually anything that can
be made, are granted for a 20-year period, after which the invention
becomes public property.

Design Patent: Granted to a new, original or ornamental design for a
manufactured item. Patents on ornamental designs last 14 years.

Plant Patent: Granted to an invented or discovered new plant variety
that can be asexually reproduced."

The above legal categories quoted from "The Lemelson-MIT Prize
Program's Handbook for Inventors."  It's online at - (
http://web.mit.edu/invent/www/handbook/index.html ).

This from NOLO Law for All - "Generally an idea, by itself, is not
protectible. For example, an idea to protect a car by locking a metal
bar to the steering wheel is not protectible. But that same idea when
expressed in a drawing or prototype that demonstrates the unique way
this invention works may be protectible under patent laws. An idea to
create characters that transform into superheroes is not protectible,
but the same idea as graphically depicted in the Mighty Morphin Power
Rangers is protectible under copyright law. Therefore, you must pay
prime attention to whether you expressed the idea in a manner that is
protectible."
( http://www.nolo.com/lawcenter/auntie/index.cfm/catID/FD8C060B-5DD4-4809-A53ECCF6BBD87E32
)  The quote is found under "trade secrets" - "Paranoid for Good
Reason."

So in conclusion, the idea of a service along the examples included as
part of your question would be next to impossible to patent.  So close
to impossible in fact the answer might as well be "no" unless you are
thinking of something truly spectacular which requires further
invention of a mechanical methodology on your part.  Services are not
"machines" or inventions with a prototype.  They are abstract ideas
possibly using materials (busses or cars in your example) to which
somebody else already holds patent.

However, your "service" may fall under Trade Secret laws.  The
standard for trade secret protection is lower.    A person can protect
an innovation or new service in this manner.  That's trye even if
several competitors have made the same discovery independently. (The
other people, however, also must not disclose the discovery.) The time
period of trade secret protection is indefinite and not limited to a
set term as other forms of protection. An inventor need not (indeed
cannot) disclose a trade secret, while publication by the U.S. Patent
and Trademark Office is a requirement for the award of a patent.

Trade Secret Defined  - "A formula, pattern, manufacturing process,
method of doing business, or technical know-how that gives its holder
competitive advantage. Trade secrets cover a wide spectrum of
information, including chemical compounds, machine patterns, and
customer lists." - From the The Lemelson-MIT Prize Program's Handbook
for Inventors.

I hope that provides the information you are seeking and if you need
any clarification, please ask.

If you have a service of your own you are thinking about establishing,
you may want to check further into 'trade secret,' 'copyright,' or
'trademark' protection.  I also wish you the best in your service
endeavors.

Search made on Google
Key words - patent law, what is patentable?, intellectual property
protection, trade secrets

Cheers
digsalot-ga

Request for Answer Clarification by mcgrof-ga on 29 Jul 2002 12:39 PDT
I asked this question because indeed I did my own research and found
that the true answer to this question might be controvertial. You seem
to be quite sure though that patents based on services cannot be
granted, by basing yourself on your own research. I feel that the
answer to my question needs more research than in the area of just
defining what a patent is, and what type of patents do exist... My
question is concerned with modern business models that certain
companies may have nowadays and may require to protect in order to
succeed. My questions deals with patent issues that may, up to this
day, not have been dealed with. A perfect example of a type of service
I am thinking about is this one... May google patent this service?

Clarification of Answer by digsalot-ga on 29 Jul 2002 15:02 PDT
Hi mcgrof-ga - I agree, the comment provided by expertlaw-ga in this
case is a better answer than the one I provided.  I am going to see if
there is any way I can get the credit for this switched.  Expertlaw-ga
has earned it.

My apologies that I missed the finer point of what you were asking.  I
was being too much of a 'generalist' in this case.

I do hope that between us we did manage to cover what you were looking
for.

Expertlaw, thanks for jumping in.

Cheers
digsalot - ga
mcgrof-ga rated this answer:3 out of 5 stars
expertlaw did a good job in replying to my question, although he only
"commented" it.

Comments  
Subject: Re: Pattenting services
From: expertlaw-ga on 29 Jul 2002 10:13 PDT
 
You seem to be asking if you can patent an innovative business model.
The answer is yes, although there is some question as to whether you
would be able to successfully defend the patent if challenged. The
answer provided above is accurate to a point - prior to the successful
application by various Internet concerns for patents to protect their
online business models, the conventional wisdom was that you would not
be able to secure patents for a business model. Also, there is little
to no evidence that the patent office is extending its "online
business model" rules to the offline world. In theory there will be
increased litigation over this type of patent - such as the possible
litigation between Google and Overture over pay-per-click directory
listings - but certain other online companies have chosen to license
their technology rather than risking a loss of their patent. (And even
though their competitor may have to pay a licensing fee, the fact is
that patent litigation, particularly between large companies, can be
extraordinarily expensive.)

The "online business model" patent seems to be an extension of the
"software patent" - another type of patent that, before the USPTO
started issuing them, people thought could not be obtained.

In the case of buses and taxis, the USPTO would likely have deemed
those models as "obvious" based upon "prior art" or existing business
models, and thus not subject to patent. There is no significant
innovation in replacing a carriage with a horseless carriage - and
there were unquestionably horse-drawn equivalents of taxi services. A
411 service is more interesting - the technological advances that led
to the creation of 411 services are in many ways analogous to the
Internet, and it is possible that the modern USPTO would treat an
application for the first such service as a patentable business model.

This, of course, is not a subject without controversy. Some people
argue that ideas such as affiliate links (patented by Amazon) are
obvious, but others respond that if they are sufficiently obvious as
to be unpatentable, why didn't anybody implement them sooner? They
also point out that a business model innovation such as an affiliate
link can be of great value, such that it can make sense to provide the
innovator with royalties for sharing the innovation with other
businesses. After all, the purpose of patent protection is to
encourage innovation (by increasing the profit motive).

As suggested above, it is not clear how the U.S. courts will treat the
issue of business model patents when those issues are finally
litigated at the appellate level. Thus, whatever inferences can be
drawn from the present practices of the USPTO, there is a possibility
that the courts will ultimately narrow the scope of business model
patents - and perhaps even eliminate them.
Subject: Re: Pattenting services
From: mcgrof-ga on 29 Jul 2002 12:27 PDT
 
This comment was more of an answer than the actual answer provided...
Thanks. This certainly is a controvertial question, and it would be
interesting to see if someone would actually challenge a service-model
patent. Too bad that, according to what I've read, on average to get a
utility patent through a patent-lawyer, you need ~$3,000.00. Seems
anyone wanting to start a business based on a service-model patent
would need this, since according to what you said, these types of
patents might not succesfully be defended if challenged.

This looks to me a like a lose/lose situation for the public since if
these patents do indeed not withstand a chance in a court of law, than
small businesses are easy targets for large corporations who may
"challenge" these patents in order to be able to provide this service
themselves (reducing competition among businesses). If these patents
are indeed legal and can be defended on a court of law, than the
public has to deal with only one entity who  owns the service model...

Also wouldn't it be easy for large corporations to establish a
service-model
"SIMILAR" to that of a small business who has a utility patent on
their service-model... maybe they can just make small modifacations,
enough to prove the model is different?

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