HOW BANKS CAN AVOID EARLY PITFALLS IN THE PATENT PROCUREMENT PROCESS

Recent developments in the United States Patent Laws have made patent protection an attractive option for banks and other financial services industry (FSI) companies. As a result, such institutions are filing numerous patent applications covering a wide variety of innovative financial methods and products. The race among banks for exclusive patent rights will continue to heat up as banks become more aware of the value that a comprehensive patent portfolio can provide as a mechanism for generating income and keeping competitors out of lucrative fields and technologies. As relative newcomers to the patenting process, however, banks and other FSIs may not have the necessary organizational procedures in place to ensure compliance with some of the more nuanced requirements of the Patent Laws. This article focuses on three of the critical characteristics or requirements of the US Patent Laws. The first characteristic is "first-to-invent" framework. The second characteristic is the set of "disclosure restrictions" that set forth activities that cannot occur before the filing of a patent. Finally, the "duty to disclose" requirement is discussed.