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adverse to a claim of a patent from which no appeal or other review has been or can be taken or had shall constitute cancellation of such claim from the patent, and notice thereof shall be endorsed on copies of the specification of the patent thereafter distributed by the Patent Office.

(b) Any person who has not proceeded in accordance with the provisions of this chapter shall not be foreclosed or in any way prejudiced with respect to the defense of an infringement suit or affirmative relief under declaratory judgment proceedings.

(c) No person subject to an adverse decision in a proceeding under this chapter shall be foreclosed with respect to asserting comparable grounds in defense of an infringement suit or as a basis for affirmative relief under declaratory judgment proceedings, involving the patent of the successful party.

Section 195.-Settlement agreements

Any agreement or understanding between parties to a proceeding under section 192 or 193 of this chapter, including any collateral agreements referred to therein, made in connection with or in contemplation of the termination of the proceeding shall be in writing and a true copy thereof filed in the Patent Office before the termination of the proceeding as between the said parties to the agreement or understanding. If any party filing the same so requests, the copy shall be kept separate from the file of the proceeding, and made available only to Government agencies on written request, or to any person on a showing of good cause. Failure to file the copy of such agreement or understanding shall render permanently unenforceable such agreement or understanding and any patent of such parties involved in the proceeding or any patent subsequently issued on any application of such parties so involved. The Commissioner may, however, on a showing of good cause for failure to file within the time prescribed, permit the filing of the agreement or understanding during the six month period subsequent to the termination of the proceeding as between the parties to the agreement or understanding.

The Commissioner shall give notice to the parties or their attorneys of record, a reasonable time prior to said termination, of the filing requirement of this section. If the Commissioner gives such notice at a later time, irrespective of the right to file such agreement or understanding within the sixmonth period on a showing of good cause, the parties may file such agreement or understanding within sixty days of the receipt of such notice.

Any discretionary action of the Commissioner under this subsection shall be reviewable under chapter 7 of title 5, United States Code.

Section 196.-Reissue application

Judgment adverse to a claim of a patent shall not preclude the filing of an application for reissue in accordance with section 251 of this title but matters already decided in a proceeding under this chapter may not be again considered.

PART III-PATENTS AND PROTECTION OF PATENT RIGHTS

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29. Remedies for Infringement of Patent and Other Actions___ 30. Preservation of other Rights---.

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Chapter 25-Amendment and Correction of Patents

Sec.

251. Reissue of defective patents.

252. Effect of reissue.

253. Disclaimer.

254. Certificate of correction of Patent Office mistake.

255. Certificate of correction of applicant's mistake.

256. Correction of named inventor.

257. Certificate for change in status of claims.

Section 251.-Reissue of defective patents

(a) Whenever any patent is, through error without any deceptive intention, deemed wholly or partly inoperative or invalid, by reason of a defective specification or drawing, or by reason of the patentee claiming more or less than he had a right to claim in the patent, or by reason of failure to cite or adequately distinguish previously uncited prior art, the Commissioner shall, on the surrender of such patent and the payment of the fee required by law, reissue the patent for the invention disclosed in the original patent, and in accordance with a new and amended application, for the unexpired part of the term of the original patent. No new matter shall be introduced into the application for reissue.

(b) The Commissioner may issue several reissued patents for distinct and separate parts of the thing patented, upon demand of the applicant, and upon payment of the required fee for a reissue for each of such reissued patents.

(c) The provisions of this title relating to applications for patent shall be applicable to applications for reissue of a patent, except that the oath of the applicant prescribed by section 115 of this title shall not be required if the application does not seek to enlarge the scope of the claims of the original patent.

(d) No reissued patent shall be granted enlarging the scope of the claims of the original patent unless applied for within one year from the grant of the original patent.

Section 252.-Effect of reissue

(a) The surrender of the original patent shall take effect upon the issue of the reissued patent, and every reissued patent shall have the same effect and operation in law, on the trial of actions for causes thereafter arising, as if the same had been originally granted in such amended form, but in so far as the claims of the original and reissued patents are identical, such surrender shall not affect any action then pending nor abate any cause of action then existing, and the reissued patent, to the extent that its claims are identical with the original patent, shall constitute a continuation thereof and have effect continuously from the date of the original patent.

(b) No reissued patent shall abridge or affect the right of any person or his successors in business who made, purchased or used prior to the grant of a reissue anything patented by the reissued patent, to continue the use of, or to sell to others to be used or sold, the specific thing so made, purchased or used, unless the making, using or selling of such thing infringes a valid claim of the reissued patent which was in the original patent. The court before which such matter is in question may provide for the continued manufacture, use or sale of the thing made, purchased or used as specified, or for the manufacture, use or sale of which substantial preparation was made before the grant of the reissue, and it may also provide for the continued practice of any process patented by the reissue, practiced, or for the practice of which substantial preparation was made, prior to the grant of the reissue, to the extent and under such terms as the court deems equitable for the protection of investments made or business commenced before the grant of the reissue.

Section 253.—Disclaimer

(a) Whenever, without any deceptive intention, a claim of a patent is invalid the remaining claims shall not thereby be rendered invalid. A patentee, whether of the whole or any sectional interest therein, may, on payment of the fee required by law, make disclaimer of any complete claim, stating therein the extent of his interest in such patent. Such disclaimer shall be in writing and recorded in the Patent Office: and it shall thereafter be considered as part of the original patent to the extent of the interest possessed by the disclaimant and by those claiming under him.

(b) In like manner any patentee or applicant may disclaim or dedicate to the public the entire term, or any terminal part of the term, of the patent granted or to be granted.

Section 254.-Certificate of correction of Patent Office mistake

Whenever a mistake in a patent, incurred through the fault of the Patent Office, is clearly disclosed by the records of the Office, the Commissioner may

issue a certificate of correction stating the fact and nature of such mistake, under seal, without charge, to be recorded in the records of patents. A copy thereof shall be attached to each copy of the patent, and such certificate shall be considered as part of the original patent. Every such patent, together with such certificate, shall have the same effect and operation in law on the trial of actions for causes thereafter arising as if the same had been originally issued in such corrected form. The Commissioner may issue a corrected patent without charge in lieu of and with like effect as a certificate of correction.

Section 255.—Certificate of correction of applicant's mistake

Whenever a mistake of a clerical or typographical nature, or of minor character, which was not the fault of the Patent Office, appears in a patent and a showing has been made that such mistake occurred in good faith, the Commissioner may, upon payment of the required fee, issue a certificate of correction, if the correction does not involve such changes in the patent as would constitute new matter or would require reexamination. A copy thereof shall be attached to each copy of the patent, and such certificate shall be considered as part of the original patent. Every such patent, together with the certificate, shall have the same effect and operation in law on the trial of actions for causes thereafter arising as if the same had been originally issued in such corrected form.

Section 256.-Correction of named inventor

An error in the naming of an inventor, in either a sole or joint application for patent, without deceptive intent, shall not affect validity of a patent, and may be corrected at any time by the Commissioner in accordance with regulations established by him or upon order of a Federal court before which the matter is called in question. Upon such correction the Commissioner shall issue a certificate accordingly.

Section 257.-Certificate for change in status of claims

(a) When any claim in a patent is allowed subsequent to the issuance of the patent under section 155 of this title, the Commissioner shall issue a certificate stating the fact, under seal, without charge, to be recorded in the records of the patent and shall publish a notice thereof in the Official Gazette. Such certificate shall be considered as part of the original patent, and a copy of the certificate shall be attached to each copy of the patent thereafter distributed. Upon the issuance of such certificate, such claim shall constitute a claim of the patent which shall have the force and effect specified in section 154 of this title with respect to actions for causes thereafter arising.

(b) Upon the termination of proceedings on any patent issued pursuant to section 155 of this title, the Commissioner shall attach a certificate to subsequently distributed copies of the patent and publish in the Official Gazette a notice of the final disposition of all claims in the patent which were not allowed at the time such patent was granted.

Chapter 26-Ownership and Assignment

Sec.

261. Transferable and licensable nature of patent rights.

262. Joint owners.

Section 261.-Transferable and licensable nature of patent rights

(a) Subject to the provisions of this title, a patent shall have the attributes of personal property.

(b) An application for patent, a patent, or any interest therein, shall be assignable in law by an instrument in writing and in like manner exclusive rights under an application for patent or patent may be conveyed for the whole or for any specified part of the United States. An applicant or patentee, or his legal representative, may also, at his election, license or waive any of his rights in a patent or application for patent, in whole or in any part thereof, by exclusive or nonexclusive arrangement with parties of his selection.

(c) A certificate of acknowledgment under the hand and official seal of a person authorized to administer oaths within the United States, or in a foreign country, of a diplomatic or consular officer of the United States or an officer authorized to administer oaths whose authority is proved by a

certificate of a diplomatic or consular officer of the United States, shall be prima facie evidence of the execution of an assignment, grant or conveyance of a patent or application for patent.

(d) An assignment, grant, or conveyance shall be void as against any subsequent purchaser or mortgagee for a valuable consideration, without notice, unless it is recorded in the Patent Office within three months from its date or prior to the date of such subsequent purchase or mortgage. Section 262.-Joint owners

In the absence of any agreement to the contrary, each of the joint owners of a patent may make, use or sell the patented invention without the consent of and without accounting to the other owners.

Sec.

Chapter 27-Government Interests in Patents

267. Time for taking action in Government applications
Section 267.-Time for taking action in Government applications

Notwithstanding the provisions of sections 133 and 151 of this title, the Commissioner may extend the time for taking any action to three years, when an application has become the property of the United States and the head of the appropriate department or agency of the Government has certified to the Commissioner that the invention disclosed therein is important to the armament or defense of the United States.

Sec.

Chapter 28-Infringement of Patents

271. Infringement of patent.

272. Temporary presence in the United States.

Section 271.-Infringement of patent

(a) Except as otherwise provided in this title, whoever without authority makes, uses or sells any patented invention, within the United States during the term of the patent therefor, infringes the patent.

(b) Whoever, without authority, imports into the United States a product made in another country by a process patented in the United States shall be liable as an infringer.

(c) Whoever actively induces infringement of a patent shall be liable as an infringer.

(d) Whoever sells a component of a patented machine, manufacture, combination or composition, or a material or apparatus for use in practicing a patented process, constituting a material part of the invention, knowing the same to be especially made or especially adapted for use in an infringement of such patent, and not a staple article or commodity of commerce suitable for substantial noninfringing use, shall be liable as an infringer.

(e) No patent owner otherwise entitled to enforce or seek enforcement of a patent shall be denied relief or deemed guilty of misuse or illegal extension of the patent right by reason of his having done one or more of the following: (1) derived revenue from acts which if performed by another without his consent would constitute infringement of the patent; (2) licensed or authorized another to perform acts which if performed without his consent would constitute infringement of the patent; (3) sought to enforce his patent rights against infringement.

(f) Whenever a licensee under a patent licensing arrangement asserts in appropriate proceedings the invalidity of any patent or of any claim of any patent included in such arrangement (1) the action in which such invalidity is asserted, if then pending in a state court, shall be removed to the district court of the United States for the district embracing the place where such action is pending; and (2) the licensor shall, with respect to such patent or to such claim of such patent, have the option of terminating such arrangement; provided, however, that if any such arrangement is so terminated with respect to less than all of the patents or claims so licensed and the arrangement itself does not provide for, or the parties thereto are unable, within such time as the court may determine to be reasonable, to agree upon the consideration to be paid for the license under the remaining patents or claims, the court in which the invalidity is asserted shall determine a reasonable consideration to be paid for the patents or claims not termi

nated; provided further, that such termination shall not relieve the licensee of liabilities accrued for the period prior to such termination. Agreement in such a patent licensing arrangement not to contest the validity of any licensed claim or patent shall neither prevent a licensee from asserting invalidity under this subsection nor serve as the basis for the finding of a misuse or illegal extension of the patent right.

(g) No assignor of a patent shall directly or indirectly contest the validity of the patent which he has assigned unless he first offers to restore to the owner of the patent, or for his benefit, the consideration paid by such owner for the patent, or an amount determined by the court to equal the value of such payment. Such restoration must be made regardless of the outcome of the contest, and the court shall provide therefor in its judgment or other final determination, if not previously paid. An assignor proceeding under this subsection shall be precluded from asserting any ground for invalidity known or reasonably available to him at the time his assignment of the patent was made.

(h) (1) No patent owner or applicant for patent shall be guilty of misuse or illegal extension of patent rights solely because he enters into or will only enter into a license agreement granting or waiving rights under the patent that excludes or restricts conduct in a manner that is reasonable under the circumstances, at the time the license agreement is made or offered to be made, to secure to the patent owner the full benefits of his patent grant under this title. The burden of establishing misuse or illegal extension of patent rights shall lie with the party asserting such misuse or illegal extension.

(2) Provided, however, the provisions of this subsection (h) shall not apply to any license arrangement entered into after the effective date of this Act requiring the licensee to adhere to any price with respect to such licensee's sale of any product, or requiring the licensee as a condition of entering into the license:

(a) to purchase unpatented or patented articles from the licensor or from any person designated by the licensor;

(b) to be restricted or limited, directly or indirectly, in the resale of articles which such licensee has purchased;

(c) to refrain from dealing in any product, service or chose in action not within the scope of the patent;

(d) to have joint power with the patent owner or applicant to determine whether additional licenses should be granted; provided further, however, that nothing herein shall be construed to prohibit the grant of a sole or exclusive license with or without the right to sub-license. (i) No patent applicant or patent owner shall be guilty of misuse or illegal extension of patent rights solely:

(1) because he enters into or offers to enter into an arrangement of assignment, license or waiver of some or all of his patent rights which arrangement includes provisions for the payment of a royalty fee or purchase price:

(a) in any amount, however paid, provided that any amount paid after expiration of a patent is based solely upon activities prior to such expiration;

(b) not measured by the subject matter of the patent or by the extent of use of the right assigned, licensed or waived;

(c) not computed in a manner that segregates the charge for any particular patent, or for any particular claim or claims of one or more patents;

(d) differing from that provided in some other arrangement; or

(2) because he enters into or offers to enter into a nonexclusive exchange of patent rights, with or without the payment or purchase provisions specified in paragraph (1) above.

(j) No patent owner or applicant for patent shall be guilty of misuse or illegal extension of patent rights solely because he licenses less than all the rights which might be licensed under his patent or application for patent, including rights to less than all of the territory, patent term, uses, forms, quantities, or number of operations which might be licensed.

Section 272.-Temporary presence in the United States

The use of any invention in any vessel, aircraft or vehicle of any country which affords similar privileges to vessels, aircraft or vehicles of the United

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