June 2012

June 26, 2012, by Mandour & Associates, APC

San Diego – Intel recently acquired 1,700 patents from InterDigital’s wireless technology intellectual property portfolio. The purchase essentially saved InterDigital as it had been rumored to closing its doors altogether. In February InterDigital had stated that it was eager to sell the bulk of its patents and it was on the lookout for a buyer.

While many electronics companies have jumped on the bandwagon of creating smartphones and tablets, Intel has watched from afar. Until this year that is when it introduced the first Intel-based smartphone to the market in India which has been widely successful. According to reports, with the acquisition of InterDigital’s patents and patent applications Intel may now begin to transition into the U.S. smartphone market.

Doug Melamed, Intel senior vice president and general counsel, recently made a statement regarding the patent purchase stating, “These patents will support Intel’s strategic investments in the mobile segment. The addition of these patents expands our already large, strong and diverse portfolio of intellectual property.”

As Melamed stated, Intel is continuing its success in making successful transitions as it is preparing for the release of the new Microsoft operating system, Windows 8. Just as Intel’s intellectual property portfolio has continued to expand so has its relationship with Windows. We can expect to see more of ‘Wintel’ as the new Windows 8 operating system is expected to be released later this year.

As for InterDigital, its senior executive vice president of strategy and finance Scott McQuilkin stated of the purchase, “the acquisition of this portfolio of InterDigital’s technologies by a global technology leader like Intel affirms the efforts of our research and development team which actively shares our innovations with the worldwide standards bodies, defining technologies that are central to the world’s major wireless systems and devices” and “this transaction, which involves a small portion of our overall patent portfolio, marks an important milestone of InterDigital’s stated strategy of expanding the monetization of its large and growing intellectual property portfolio. By executing on our business plan, which has been broadened to include patent sales, licensing partnerships and other possibilities, we see tremendous potential to expand revenue and build shareholder value.”

June 19, 2012, by Mandour & Associates, APC

San Diego – Merck announced today that it was not successful in its recent patent infringement lawsuit to protect the patent for its best selling drug Nasonex. The lawsuit, filed in 2009, was intended to stop Canadian drug manufacturer Apotex from selling a generic version of its popular nasal allergy drug.

Apotex, popular for selling less-expensive versions of many U.S. prescription medications, had been accused of selling a generic version of Nasonex before the Merck patent had expired. The Merck patent for Nasonex is not due to expire until 2018, but Apotex took an offensive stance and challenged the validity of the patent. The decision handed down in the New Jersey court was both positive and negative for the well-known drug company. The district court ruled that the Nasonex patent was valid, but the Apotex product did not infringe on Merck’s chemical composition. A patent attorney for Merck said that although the drug manufacturer is relieved that its patent was reaffirmed, it is reviewing its options and is likely to appeal the decision.

With many generic options, today’s brand name drug manufacturers often have tremendous competition in the prescription drug market. In addition to its increased research and development for new drugs, Merck has recently cut many of its prescription costs in an effort to compete with the growing number of generic drug options. Further contributing to its struggles, the patent for its popular drug Singular is set to expire in August and Pfizer’s version of its anti-cholesterol drug Vytorin, is doing much better than it had anticipated. However, despite its financial concerns, Merck’s first quarter earnings rose 67%, and the pharmaceutical giant appears poised for continued growth in the upcoming year.

Located in Whitehouse Station, New Jersey, Merck is one of the largest pharmaceutical manufacturers in the world. Although it was established in 1891, it did not officially become a major U.S. drug company until after World War I. Currently Merck’s name is well known, not only because of its popular prescription medication commercials, but because its revenue and product sales have propelled it into the top seven pharmaceutical makers in the world.

June 12, 2012, by Mandour & Associates, APC

San Diego – Ascendant Engineering Services (AES) announced today that it was granted a patent for its ground-breaking small arms weapon shock simulator technology. Patent 8,166,797 was awarded to the highly anticipated product, and is intended for use by the U.S. Military and other companies that regularly do business with the Department of Defense. The product was also recently presented to the prestigious NDIA Joint Armaments Conference in Seattle, Washington. AES is excited about the implications that its newest technology could have on the future of small weapons testing and certification.

AES created the Small Arms Weapon Shock Simulator to provide a more environmentally friendly product that could also offer substantial cost savings to the U.S. Military and Department of Defense contractors. Currently, the military requires soldiers to certify weapons for use. This certification process involves individual soldiers taking the newly configured weapon systems onto the field to be fired thousands of times. However, this method is considered grossly inefficient because of the cost of utilizing soldiers and the high cost of ammunition. Additionally, when weapons are fired thousands of times, toxins are released into the ground, atmosphere and potentially onto the soldiers firing the weapons. The Weapon Shock Simulators allow the military and other related industries to bypass the traditional methods of certification and use a machine instead. Currently, AES is the only small arms weapon shock simulator proven to recreate known live fire failures on units under test and the only weapon shock simulator approved for shock test in place of small arms live fire for the Department of Defense.

The U.S. Army already uses the Weapon Shock Simulator as a substitute for its live fire testing. And given the current trend in attempting to both minimize costs and create more environmentally friendly practices, the other branches of the military and Department of Defense contractors will likely follow the Army’s lead soon.

AES, located outside of Austin, Texas was founded in 2004 by a group of engineers. The company is excited about its future prospects and the opportunities its newly patented technology will create. “In the year since we launched the WSS, we have received tremendous feedback from customers and prospective customers about additional ways that we could use this technology to create new products that would gain immediate traction in the defense industry,” said Jon Noeth, co-founder and President of the company. “The patent gives us the comfort to move forward on some of those initiatives.”

June 8, 2012, by Mandour & Associates, APC

San Diego – Smoking alternatives and methods for quitting have become a hugely popular and lucrative industry. There are over 7,000 chemicals in cigarettes, and 250 of those chemicals are harmful while 69 can cause cancer. Consequently, millions of smokers are becoming motivated to quit or cut back on their cigarette habits.

One alternative to smoking traditional tobacco cigarettes is the use of a device called an electronic cigarette. Celebrities such as Kristen Stewart, Leonardo DiCaprio, and Robert Pattinson, have all been recently photographed using electric cigarettes to curb their smoking habits. Capitalizing on the momentum of this new trend, Vapor Corp. has filed for a patent to improve its electric cigarette technology. The original patent application filed in 2011 was provisional and included the technology for its electric cigarettes. The most recent addition to its patent application is non-provisional, and adds an improved padded cartridge making the electronic smoking device look and feel more like a real cigarette.

Most electric cigarettes are comprised of a battery, a nicotine cartridge and an atomizer. The battery powers the cigarette, and creates a glowing tip similar to the lighted end of a real cigarette. The nicotine cartridge contains liquid nicotine and optional flavoring. The Atomizer gets hot and vaporizes the nicotine solution, which is then inhaled as vapor by the smoker. Existing cigarette cartridges are typically made of metal or hard plastic. The new soft tip created by Vapor Corp. offers a more realistic experience for users that will more closely resemble an actual cigarette. As such, the padded cigarette cartridge is a significant improvement for the e-cigarette market of products.

Vapor Corp. is a leading distributor and marketer of electronic cigarettes, with brands including Smoke Fifty-One®, Krave®, Green Puffer®, Americig®, VAPOR-X® and EZ Smoker®. Located near Ft. Lauderdale, Florida, Vapor owns the largest portfolio of brands of any e-cigarette company and considers itself an innovator in the field of electronic cigarette devices. Vapor’s electronic cigarettes are available online, on television and through retail locations throughout the United States.

June 5, 2012, by Mandour & Associates, APC

San Diego – La Jolla Pharmaceutical Company, a Biopharmaceutical company based in San Diego, has recently been granted a patent from the U.S. Patent and Trademark Office for a patent covering compositions of modified pectins. On its website, La Jolla Pharmaceutical states that its company is “dedicated to the development of treatments that significantly improve outcomes in patients with life-threatening diseases” and the issued patent number 8,187,642 gives the company the ability to do just that. Patent ’642, which modifies pectin compositions and molecules, is protected until 2025.

Dr. George F. Tidmarsh, President and CEO of La Jolla Pharmaceutical stated, “We are pleased to receive this patent protection which broadens and further extends our intellectual property position for modified pectins,” and “The issuance of this patent comes at a strategically important time for us as we prepare to move forward with clinical trials of our lead compound, GCS-100, in oncology, kidney disease and organ transplant indications.”

The ability to modify pectin compositions, which this patent provides for, has the potential to “bind and sequester galectin-3″ which has been linked to the responsibility of diseases in humans such as cancer. This patent could possibly help in improved solutions for these diseases.

Patent ’642 is one of three of the pharmaceutical company’s patents that are linked to developing a reduction in cancer’s growth rate. In the technology portion of its website the company states “La Jolla Pharmaceutical Company is leveraging the unique biochemistry of the galectin family of proteins to develop innovate therapies to treat a multitude of human diseases. In particular, over-expression of galectin-3 (one member of the galectin family) has been implicated in cancer and chronic organ failure. Thus, modulation of galectin-3 activity is an attractive therapeutic target. GCS-100, La Jolla’s lead product, is a first-in-class inhibitor designed to sequester and eliminate circulating levels of galectin-3.”

June 1, 2012, by Mandour & Associates, APC

San Diego – Last week San Diego based Neology filed a second lawsuit against Federal Signal and related companies for patent infringement. The primary products concerned in the lawsuit are radio frequency identification related products (RFID). RFID technology involves wireless non-contact systems that utilize radio frequency to transfer data for tracking and identification purposes. The previous lawsuit, filed in Delaware, concerned possible infringement of six United States patents held by Neology. Although the first lawsuit is still pending litigation, Neology has moved for preliminary injunction on three of the six patents involved in the lawsuit.

In its latest lawsuit, Neology is alleging infringement of two more patents and is demanding an immediate and permanent injunction related to all infringed patents. As such, Federal Signal would be prevented from all direct or indirect manufacture, use or distribution, advertising, and import or export of all alleged infringing products. Because of the nature of the technologies involved, both the current and previous lawsuits are expected to be fully litigated within the next year.

Neology is a RFID technology company that currently holds 51 patents for proprietary RFID technologies. Additionally, Neology has nearly 400 patents worldwide and over 100 patents pending. Radio frequency identification technology is a huge part of many government and international travel control and regulation systems. Many of Neology’s patents are used worldwide for border patrol, vehicle registration, electronic toll collection, passport verification, pharmaceutical control and protection of secure documents.

Neology is unique in the RFID industry not only for its diverse portfolio of applications, but also for its total vertical integration of RFID solutions. From its custom designs to device development and software integration, to field installation, Neology is the primary provider in RFID technologies.

Neology is headquartered in San Diego, California and has secondary offices in Mexico City. The latest lawsuit demonstrates that Neology is fully committed to initiating more infringement lawsuits as necessary to protect its intellectual property.