Intellectual Property and the Mortgage Industry A Primer by ces12174

VIEWS: 4 PAGES: 14

									 Intellectual Property
   and the Mortgage
  Industry: A Primer

     Gabe Minton, VP Industry Technology,
                     MBA




MBA's Legal Issues in Mortgage Technology Conference November 30 – December 2, 2005
Agenda and Take Aways


 • Focus on patents
 • Key trends with patents
 • An example patent: “Business Process and
   Method for Online Financial Products
   Trading”
 • IP and standards-setting (further discussed
   by Mike Chanin)
Types of Patents


 • “System” – An actual tangible object (unless
   software)
 • “Process” – Business process methods




 • It is all about the CLAIMS!
Key Changes by Congress, 1982


 • The USPTO changes its funding model from tax
   dollars to application and related fees
    » The USPTO is incentivised to handle more applications
 • A special court is established to handle patent cases:
   the Court of Appeals for the Federal Circuit (CAFC)
    » This court went on to broaden and strengthen the rights
      of Patent Holders
Key Patent Cases


 • Apple v Microsoft (high profile IP)
 • Wang, Dell, and Rambus (standards and IP)
 • “Linux v Microsoft” (not a real case, really
   open v closed-source)
 • Industry hot (and protected) topics:
   » eNotarization: Arcanus
   » Numerous eMortgage patents: eOriginal, …
   » eRecording: inGeo
   » Imaging
   » Workflow
Patent Activity in the US


 400
 350
 300
 250
                                                                                    Apps
 200
                                                                                    Awards
 150
 100
  50                                                                          (in thousands)
   0
       1840    1900            1962           1980           1990      2000


              Source: Innovation and its Discontents, Jaffe & Lerner
Number of Patent Suits Initiated


 3000
 2500
 2000
 1500                                                                                                Suits
 1000
  500
   0
        1946
               1950
                        1956
                               1961
                                      1963
                                             1976
                                                    1981
                                                           1986
                                                                  1991
                                                                         1992
                                                                                1996
                                                                                       2000
                                                                                              2001
                      Source: Innovation and its Discontents, Jaffe & Lerner
Key trends


 • Patent Applications UP!
    » Larger companies building extensive portfolios
    » “Portfolio companies”
    » Small companies/independents are filing less
 • Number of patent awards UP!
 • Number of court cases won by patent holders UP!
    » Companies would rather skirt or pay out
    » Small companies cannot afford adequate protection
USPTO.GOV
Example Patent
Abstract


 • An online centralized financial products exchange system.
   The invention is a system, method and computer program
   product that creates a "marketplace" for end-to-end financial
   products life cycle transactions. More particularly, the
   invention provides a centralized exchange system for the
   trading of loans. The system includes a plurality of Web
   servers for receiving and providing loan information from
   and to subscribers on several Web clients and a database
   server for searching the pre-set rules to match potential
   buyers with sellers. The system also includes a database for
   storing information relating to negotiations (i.e., bidding) for
   the sale of loans and for storing pre-set rules for pre-
   registered buyers and sellers. The system further includes a
   database and server for storing risk/return information that
   is made available to subscribers for analysis.
Excerpt Claim:


 1.   A centralized system for trading financial products in the
      secondary market, wherein the system is capable of being
      accessed by a plurality of subscriber, the system
      comprising:
        means for receiving loan information for a plurality of
      loans in a loan pool from a first subscriber;
        means for storing said loan information in a database;
        means for receiving selection inputs from a second
      subscriber for said loans in said loan pool, wherein said
      selection inputs indicate which of the loans in said loan pool
      said second subscriber wishes to purchase, whereby said
      system allows trading of loans in the secondary market and
        means for allowing said first subscriber to accept said
      selection inputs entered by said second subscriber, wherein
      a trade is processed when said selection inputs are
      accepted

                 THERE ARE 35 MORE CLAIMS IN THIS PATENT!
IP and Standards Organizations


 • How do you create a policy that protects
   people’s IP, while allowing them to
   contribute it to the “common good”
   » Methods researched:
      • Public Domain
      • GNU/CopyLeft
      • Royalty Free Licencing
      • RAND Approach
 • Key case: Wang, Dell, and Rambus
Q&A


• Gabe Minton, VP, Industry Technology, MBA
    » gminton@mortgagebankers.org
    » 202.557.2821




•   http://www.mismo.org
•   http://www.sisac.org
•   http://www.mortgagebankers.org
•   http://www.uspto.gov

								
To top