Archive for September, 2008

Patent Attorney Inventor Accuses Toyota of Infringing Self-Drafted Hybrid Vehicle Patent

September 3rd, 2008

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Conrad O. Gardner is a Washington state engineer and patent attorney and the named inventor on eight patents, several of which relate to hybrid vehicle technology. 

Gardner recently sued Toyota Motor Corp. (Toyota) in federal court in Seattle, accusing the automaker of infringing U.S. Patent No. 7,290,627 (’627 patent), entitled “Extended Range Motor Vehicle Having Ambient Pollutant Processing” by making and selling the second generation Prius, the Camry and the Highlander.

Last month Gardner filed a second amended complaint (complaint) in the suit.  The complaint (gardnercomplaint.pdf) notes that the ’627 patent has a very early priority date (based on a parent patent application filed back in April 1992) more than two years before Toyota began investigating the development of a commercial hybrid autombile. 

Gardner accuses Toyota of having knowledge of his patented technology as early as January 1994.  Specifically, the complaint alleges that the U.S. Patent & Trademark Office (PTO) cited a Gardner patent against one of Toyota’s hybrid technology patent applications during prosecution of the Toyota application.

The Gardner complaint is interesting in that it provides a user-friendly infringement analysis by going through the ’627 claim limitations and identifying the allegedly corresponding structural or functional elements in the Prius.

The ’627 claims are directed to a hybrid vehicle control system which controls the relative contribution of driving force from an internal combustion engine and an electric motor by sensing the vehicle’s speed and transferring the driving force contributions accordingly.  

Although the ’627 claims don’t sound like cutting edge technology today (the patent issued in November of 2007), remember that the original filing date of the ’627 patent family dates back to 1992.  As long as the ’627 claim elements were present in the disclosure of that original application and the patent family continuity chain wasn’t broken, then patentability is determined by comparing the claims to the state of the art in 1992.

In that case, all of the technological advances made since are irrelevant to the validity of the ’627 patent claims.  On the validity issues, Toyota probably will try to show that the original parent application’s disclosure does not support the ’627 claims and/or try to break the chain of priority that goes back to the 1992 filing date.

As I’ve tried to highlight in the picture above, Gardner drafts and prosecutes his own patents.  In addition to Gardner’s potential financial remuneration from a win against Toyota and his inventor’s pride, if the ’627 patent holds up in court Gardner can also take great pride in his patent drafting skills. 

Chevron to Pay California Drivers $48M to Settle Unocal Patent Suit

September 1st, 2008

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Standards-setting organizations (SSOs) are industry or government groups that develop and publish uniform technology standards to ensure product quality and interoperability for new technologies.  Although rules vary among SSOs, generally private industry participants in the process have a duty to disclose patents or patent applications they own that relate to the industry standards under development. 

Failure to disclose relevant intellectual property can expose a company to legal liability (both through private lawsuits and by government agencies such as the Federal Trade Commission (FTC)) and render the company’s patents unenforceable. 

Companies that do disclose their patents early in the standards-setting process are more likely to see their patented technologies become the industry standards.  Often, companies in this situation are required by the SSO to agree to provide licenses to their technology under reasonable and non-discriminatory terms.

When the 1990 Clean Air Act mandated that gasoline be reformulated to reduce evaporation and cut ozone-forming and toxic air pollutants, the California Air Resources Board (CARB) worked with the oil and gas industry to develop reformulated gasoline (RFG) standards. 

After the RFG standards were issued, the U.S. Patent & Trademark Office (PTO) granted several RFG patents (which had been pending during the standards-setting process) to Union Oil Company of California (Unocal). 

In 2005, after Chevron Corp. (Chevron) bought Unocal, California consumers brought a class action against Unocal alleging that it had failed to disclose its pending patent applications during the standards setting process and had represented its technology as “non-proprietary” (the FTC also filed a complaint against Unocal in 2003). 

The class action complaint alleged that Unocal had manipulated and deceived the CARB and other industry groups into adopting RFG standards that overlapped with the undisclosed patent applications.

The patents at issue include U.S. Patent Nos. 5,288,393, 5,593,567 and 5,653,866, which relate to methods for producing gasoline having reduced nitrogen, carbon monoxide and other hydrocarbon emissions.  Unocal has since dedicated each of these patents to the public so they can no longer be enforced.

Last month, Judge Christina A. Snyder of the U.S. District Court in Los Angeles issued a preliminary approval of a settlement of the class action (settlementorder.pdf).  By the terms of the settlement, Chevron will pay $48 million to a class of consumers defined as all consumers who purchased CARB-compliant reformulated gasoline in California between January 1995 and August 11, 2005.

Obviously, it is important for patent owners participating in standards-setting activities to consult a patent attorney to review the disclosure obligations imposed by the SSO and analyze the company’s patent portfolio to determine whether patents and applications need to be disclosed to the SSO.

This issue is almost certain to come up again as new energy technologies emerge and mature.  Just last week, Matter Network reported that the Roundtable on Sustainable Biofuels is developing the first international standard for biofuel production.