Can someone stop me from doing business just because she has filed a provisional patent application with the USPTO?

Business 9 views 5 answers
FACT OR EXTORTION? I received a Cease & Desist Order via email directing me to stop manufacturing my metal greeting cards because this party has filed a provisional patent application for "metal greeting cards." Subsequently, this party contacted Kickstarter and personally suspended my $285,000. fundraising campaign charging that I have infringed on her patent. She has refused to give me product details supporting her application, so, I have no idea if my product and hers are the same. Then, she had her attorney prepare a formal licensing agreement that would require that I pay her $3000. monthly to make my metal cards. Her application does not go before the USPTO examiners until Sept. 17, 2017, at which time, she may, or may not, receive an "issued patent."

Attorney Answers

5
Adam Philipp ·
You are asking for attorneys to apply the law to your factual situation, i.e., give you legal advice. There are a lot of unknowns here. But, from what you have said, it seems like it would make sense for you to have a confidential conversation with a patent attorney where they can review all the facts in detail and let you know what your options are. Given the amount of your fundraising campaign, it would seem to make business sense.
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Hubert Pfabe ·
I'm not sure about the date that you mention. Is that 12 months from her filing date of her provisional application? If so, that is just the deadline to file the non-provisional application, and she may or may not be granted a patent... eventually. Even three years later, when she might get one, there is no saying that the claims will read on your product. A provisional application confers NO RIGHTS, other than a priority date and the right to label a product "patent pending." If you have received this communication from her attorney without listing the features they believe infringe and the claims, among other details, then she may be violating your state's local laws (some states have created "troll" statutes, though I'm unsure about VA. It would need to be looked into. There are also laws against interfering with business, like your Kickstarter campaign, without a good faith belief in the validity of the claims, and that what you are doing does not fall under fair use and other exceptions. I strongly recommend that you speak to an experienced attorney confidentially about the details of this. Good luck.
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Eric Kelly ·
First, because you may be facing some litigation, do not post any further facts in a public forum like this. Anything you say, may be used against you by the opposing party. Rather, you need to speak with your own patent attorney, in private, to go over your specific facts and how the relevant law applies to your facts. If your facts are accurate, she may be liable to you and not you to her. However, some of your facts are not compatible - because a provisional patent application is not examined and thus would not go before a USPTO Examiner. This is another reason why you need to speak in private with a patent attorney, who will likely need to review all relevant communications. In any event, here is some info on the potentially relevant patent law ... Only U.S. patents have U.S. patent rights. A patent application is not a patent; and as such a patent application does not provide a right to exclude others from selling, offering to sell, etc. However, some patent rights, by way of 35 USC section 154(d), might extend back a bit in time before the patent has issued, but would require that the patent application to have published and that the claims as published not vary significantly from the issued claims in the patent. More often than not, the issued claims do vary too much from the published claims for 35 USC 154(d) to allow for collecting retroactive damages. Note, provisional patent applications are not published, nor examined, and the possibility of provisional rights under 35 USC 154(d) should not attach to a provisional patent application. Even if a published non-provisional patent application was in play, 35 USC 154(d) does not convey a right to the non-provisional patent application owner to demand ceasing and stopping. At best when a patent application is pending, the patent application owner can only warn another that if a patent issues, their conduct might be infringing and that one might be liable for some retroactive damages under 35 USC 154(d).
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Dariush Adli ·
First, I am not sure you are using the word “provisional” in the meaning it has at the patent and trademark office (PTO). At the PTO, the term provisional means that the application is a place holder and will NOT be subject to examination or publication unless and until it has been converted to a regular patent application. In your You are correct in that a patent application is merely a “claim” to a potential Intellectual property right. However, the patent applicant has a right to forewarn potential infringers, and Kickstarter’s reaction is not unexpected. You need to engage an attorney to evaluate and analyze the patent to determine WHAT it covers and then determine whether you can get around the patent before you go ahead with licensing it. Finally, the Sept. 17, 2017 date would not likely be the date she would receive an issued patent. The patent process has three distinct phases; the Application phase; the Prosecution phase; and the Maintenance phase. Sept. 17, 2017 would be the start of the Prosecution phase, which is the give and take between the inventor and his/her attorney on one side and the patent examiner on the other, where the patent owner tries to convince the examiner that all or aspects of the invention qualify for patent protection. The process typically takes 6-12 months to completion. In all, somewhere between 50-60% of filed patent applications result in an issued patent. Once again, your best bet at this point is to engage a patent attorney to evaluate and analyze your case and advise you accordingly. Good Luck
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