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Would you be more likely to buy a package of sports cards - you know, like you used to get with Fleer bubble gum - if there was a chance it included a splinter of Ted “Splendid Splinter” Williams’ baseball bat and a certification that it was authentic? Well, would you?

How about a trading card with a piece of someone’s uniform? More importantly, would you grant a patent to the first person to attached a piece of an article of authenticated memorabilia to a trading card? The USPTO did.

Although I don’t understand the business model, there appears to be a big business in sports cards these days - sans bubble gum. Manufacturers insert a limited number of special items into the card packages as an enticement to sell more cards. These special items include “signature cards” “rookie redemption cards” and now “memorabilia cards”.

At the end of 1994, Adrian Gluck filed for and ultimately was issued a patent for a “memorabilia card” comprising:

a substrate in the form of a card and having an image surface,

the image surface including a background image and a foreground image, and wherein the foregoing image is of a famous figure,

a piece of a memorabilia item being adhered to the card adjacent to where an image of the actual item normally would appear, and

the card including a certificate attesting to the authenticity of the item.

Further, the patent claims defined one example of a memorabilia item as being:

a first member, and

a portion, but not the entirety, of an authentic memorabilia item used by a popular sport or entertainment personality or during a memorable event, said portion attached to said first member wherein the authentic item is a baseball bat, and said portion comprises a tiny piece of wood taken from that bat.

A typical memorabilia card is shown in this link.

Mr. Gluck sold his rights to Media Technologies Licensing, LLC who, in 2001, sued Upper Deck Co., a major producer of sports cards, for infringement. The District Court granted summary judgment to Upper Deck, but the Court of Appeals for the Federal Circuit (CAFC) reversed on procedural grounds. Upper Deck then asked the PTO to re-examine the patent, which it did, affirming Gluck’s patent’s validity. The District Court then performed claim construction and issued a summary judgment that the patent was not anticipated but was obvious. Media Tech appealed to the CAFC. The CAFC, in a 2-1 split, upheld the obviousness decision.

The whole discussion in the CAFC’s opinion is bothersome to me. The courts, when discussing obviousness, are forced to put a glossy coat of objective argument on the inherently subjective question. They are forced to work from the prior art in evidence rather than their innate knowledge of what an average person knows.

It should be clear to everyone involved that it did not take any “aha” moment, any inspired inventive spark, to “invent” the trading-card-with-bat-splinter. In creating a trading card with a piece of a memorabilia object, Mr. Gluck perhaps realized that P.T. Barnum was right but he sure didn’t come up with anything that “promote[s] the Progress of Science and useful Arts“; at best he came up with a method of promoting the sale of sports trading cards; a business method, perhaps.

And in fact his strongest defense against obviousness was that all the experts in the field didn’t expect it to “work”, meaning they didn’t expect commercial success. But commercial success is, at best, a secondary indication of non-obviousness and cannot overcome the weight of many primary indicators.

So the courts have now, twice, given an obviousness dope slap to the PTO which twice said this was a valid patent. Perhaps Mr. Gluck and Media Technologies will realize that this patent wasn’t ready for the big leagues.

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Crank up the music! Turn on the camcorder! And turn your kids loose on the dance floor! YouTube is safe again for you to post those simply adorable videos of your child stumbling his or her way through Purple Rain. Yes, Universal Music, the same company that made you afraid to go in the water with “Jaws” and set out to make YouTube a scary place too, has been given a second dope slap by the Electronic Freedom Foundation and District Court Judge Jeremy Fogel.

The case started a couple of years ago when Universal, trolling the internet, uncovered a significant violation of their copyright in a 29 second video of Stephanie Lenz’s baby “dancing” to a Prince song. Swinging into action immediately to fight this threat, Universal relied on the Digital Millennium Copyright Act to sent a take down order to YouTube.

Luckily the EFF took up Ms Lenz’s case. According to Zusha Elinson on Law.com,

The Electronic Frontier Foundation sued Universal on behalf of Lenz in 2008, arguing that the music company’s lawyers should have taken a moment to consider whether Lenz had a fair-use right to post the clip before firing off a takedown notice to YouTube. YouTube removed the video, but restored it six weeks later when Lenz filed a counternotice.

In the most recent action, Judge Fogel ruled that Ms Lenz can recover some level of damages. Quite reasonably, the EFF asked for damages to make real a deterrent for copyright holders who abuse the takedown process of the DMCA. Universal, of course, argued that Ms Lenz should only be allowed to recover financial damages caused by their overzealous application of copyright (which of course are essentially zero) rather than to receive compensation for the violation of her right to post the video. The judge agreed, writing;

Requiring a plaintiff who can make such a showing to demonstrate in addition not only that she suffered damages but also that those damages were economic and substantial would vitiate the deterrent effect of the statute.

Now we wait to see what damages are assessed. But in the meantime, it’s safe to go back in the water.

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UPDATE 02-Mar-10: As has been pointed out (see comment), the blog belongs to BRAD Feld, not Michael.

A recent post on Michael Feld’s blog, http://www.feld.com/wp/archives/2010/02/sawyer-weighs-in-on-intellectual-ventures.html, prompted me to post the following comments:

“Sawyer’s” comments on IV, as useful as they may be in making him feel self-righteous (or is he spending all that time in Texas pro bono) are, for the most part, avoiding the real issues of the failure of the patent system, world wide, to keep up with technology and business realities. He is attacking someone who plays a bad game better than he instead attacking the bad game itself.

The three hundred year old perception that it was a fair trade to give an inventor some period of exclusivity to profit from his invention in exchange for teaching society the invention’s details never envisioned a world in which product/technology lifecycles might be measured in months or in which patent litigation costs start at 7 figures. Nor did they envision technologies where a patent examiner would need an advanced degree to understand a patent application. Or inventions that were totally intangible, like software or business methods.

Furthermore, I doubt the founding fathers envisioned the growth of the patent law practice, where one set of attorneys bill out at well over 50 times the minimum wage to nitpick through the legal maze created and interpreted by another set of lawyers.

My point is not that attorneys charge too much - it is just that the constitutional basis for the patent laws (that society benefits when innovation is encouraged and that that goal is achieved when inventors are encouraged to share the details of their invention with society by having an opportunity to profit without competition) is no longer served by the laws and processes that form our patent system.

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The key sentence in this article is

Medical imaging company Hologic Inc. has settled patent disputes with a subsidiary of Johnson & Johnson Co. in a deal that will see Bedford-based Hologic pay out $12.5 million for one product [and pay ongoing royalties] and get ongoing royalties coming in from another.”

That is, Hologic reached into its patent portfolio [a year and a half] after it was sued by J&J in order to find a bargaining chip. Would J&J have let Hologic keep selling the product in suit if it did not have its own product in patent problems?

Hologic settles J&J subsidiary patent dispute - Mass High Tech Business News

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