What this is: Due to the increasing value and importance of trademarks and patents in secured transactions, searching the public records of the US Patent and Trademark Office is becoming a standard part of UCC due diligence in the United States.
What this means: Consider devising a search strategy that encompasses the following sections: pending and registered trademarks, trademark assignments, published pending patents, patent grants and patent assignments.
Due to the increasing value and importance of trademarks and patents in secured transactions, lenders may accept intellectual property (IP) as loan collateral and thus insist on the proper perfection of their security interest in IP on the public record. Uncovering security interests and understanding the priority position of lenders in this intangible collateral is critical. This can be accomplished through searching for UCC filings and filings at the USPTO. A UCC search of the central filing office may not be enough.
However, finding this trademark and patent information on the USPTO website can be tedious and many searchers simply do not have the expertise to complete an accurate and thorough search. To do it right, you need to be familiar with Boolean search logic and the USPTO’s changing data entry protocols, and patient enough to review a long list of possible search results, identify the relevant results and organise this information into a clear, logical format.
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The US Patent and Trademark Office Website
Before starting a search, it is important to understand that the USPTO website is separated into trademark and patent ‘silos’.
Within those two silos, each database is further broken down into additional areas containing multiple search fields. Consider devising a search strategy in advance that covers the following sections:
- Pending and registered trademarks
- Trademark assignments
- Published pending patents
- Patent grants
- Patent assignments
Are Names Misspelled in the USPTO Databases?
Yes. When data is manually keyed into a system over an extended period of time, keying errors are inevitable. Searchers should be aware of this and consider conducting searches on some of the more common errors.
Common misspellings include reversal of the letters (‘retrieve’ vs. ‘retreive’) and dropped double letters (‘dropped’ to ‘droped’). Use of British spellings, such as ‘colour’ instead of ‘color’ can also result in missed hits. Combined with punctuation and spacing variations, misspellings can wreak havoc on even the most diligent searcher.
Will Punctuation and Corporate Indicators Affect Search Results?
Punctuation matters in some, but not all, databases. In the Trademark Electronic Search System (TESS), for example, a basic word mark search will yield zero results when searching on “Fame Jeans, Inc”. Searching “Fame Jeans Inc” instead – without the comma and period – will return approximately 31 possible results. Going further, a search on “Fame Jeans” without the corporate indicator and punctuation returns roughly 90 possible results. Three very similar searches produce dramatically different results.
Not all the databases are sensitive to punctuation in this way. As a searcher, you must understand how each USPTO database and its search fields operates in order to conduct a thorough search.
How Many Fields Need to Be Searched?
How many fields you search depends on what you are looking to uncover. If you are looking for a specific patent and have the issued patent number, then your search might just be a single patent number search. If you are looking for any/all information associated with an entity’s intellectual property, your enquiry will require searching multiple databases and fields.
Let’s say, for example, you are interested in uncovering trademark information. You will need to search two separate trademark databases, and additional associated fields:
Trademark Electronic Search System (TESS)
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In the TESS database, you have the option of using search operators such as “and,” “or,” or “the exact search phrase” when conducting a Basic Word Mark Search. |
Assignments on the Web: Trademarks (AOTW)
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In the Trademark AOTW and Patent Assignment database, search operators are not available on the search drop down selection. |
To complete the trademark portion of your search, you’d need to search approximately ten different fields, one at a time. Multiple searches for each available search field should be entered to cover differences in data entry protocols at the USPTO, regarding spelling, spacing, punctuation, name variations, corporate indicators and even errors.
Is DIY Due Diligence Worth It?
Searching the USPTO website can be a complex process, even for the most seasoned public record searcher. While specific searches can be completed without much concern, due diligence can often require searching on many name variations in different databases and culling through a myriad of results. Even after you’ve identified which records are applicable, there is no method for assembling that data into a cohesive search result for easy review and dissemination.
Considering the substantial amount of time and knowledge that goes into this process, working with an experienced service provider for intellectual property due diligence searches may be far more cost effective than doing it yourself.
FAQS
Do assignment filings made with the USPTO have the same effect as assignment filings made under Article 9 of the Uniform Commercial Code?
While in certain situations the answer is yes, the more helpful and short answer is no. UCC assignments are typically filed centrally or locally in each state, IP filings are made at the federal level. Moreover, the word ‘assignment’ may have a different meaning.
Are IP and UCC assignment filings linked on the USPTO?
At the USPTO, assignments and other changes are not directly linked on one index when searching by name, which is ordinarily how due diligence searching is conducted. A name search of the USPTO index will not yield one set of complete results containing both trademark applications and registrations and all trademark assignment filings. Separate searches are needed in different sections of the USPTO website. Once those searches are completed, a searcher may need to manually review the results in order to determine if there is a parent-child relationship between the records.
This content is provided for informational purposes only and should not be considered, or relied upon, as legal advice.
