Source: Robin Roth, Senior Contracts Editor, Conferon, Inc.
E-Specs: September 30, 2002

Many industry associations, publications and experts are fighting the application that Software Management, Inc. (SMI) has made for a patent on many business processes used to plan meetings over the Internet. These processes include registration, meeting planning, virtual tradeshows, call for papers, etc.

We have been keeping a close eye on this and believe that this patent will not be awarded. There is enough "prior art" that has been published by many service providers (including Conferon), associations and corporations to negate SMI’s claim that the patent methods and processes are original. Under the terms of the Patent Act, the claimed methods would have to have been "new" since Dec. 30, 1997, a year or more before the filing was submitted (Dec. 30, 1998).

You should not be concerned about this unless one of the following two things happen:

• SMI notifies you that you are in violation of the patent application.
• The patent is awarded to SMI.

Should you be notified by SMI, you are not legally required to make any payment until after the patent is issued. SMI, however, does have a right to request payment and to collect such royalties for all violations occurring after December 30, 1997, should the patent be approved. As a Conferon client, if you do receive a notification from SMI, please send your Conferon representative a copy and contact an attorney for additional advice.

Any contracts you have with third party vendors that use software to perform services, including Conferon, should contain a hold harmless clause protecting you from patent claims brought against that third party or against you.

For further information, please see the following links:

http://www.c-l-c.org/news/SMI_Statement.htm

http://www.mpiweb.org/members/home/smi.asp

(Note: This information is not intended to be "legal advice." A qualified attorney should be consulted to review all contract issues.)