PatenTest

Inspired by the repetitive disappointing experience of patent application rejection, Tvito realized a fundamental flaw in the system. Although a professional novelty assessment is available for all, it is usually priced by the thousands of dollars. Alternatively, patentability searches conducted by the patent agent/attorney offices usually involve the costs of hiring an information specialist for the task (sometimes ad-hoc). The latter are rated on a per hour basis, and are averaged according to the cost of the specialist hired. The search would not go beyond the average time set for it in advance. In essence, we compromise quality for cost, meaning, private inventors and/or patent agents/attorneys, acting on their behalf, often resort to insufficient means in performing their duty – filtering-out those ideas lacking novelty or inventive step.

This compromise translates into a twofold problem. First is the fact that the majority of patent applications bare little or no chance of passing examiner’s review. Supporting this claim is the high rates of rejection for patent applications shared by all the leading patent authorities worldwide, as evident in their annual statistical reports (averaging at 70% rejection). The Second problem is the fact that a certain percentage of the granted patents that are potentially invalid. Evidence can be the abundance of law suits concerning patents that cover subject matter that has been in use for years.

Shocking as it may sound, it means that approximately 70% of the time and resources invested by inventors and patent agents/attorneys worldwide, not to mention the time of examiners working for patent bureaus, is evidently wasted in vain! The existing modus operandi places the full burden of the risk on inventors. It is an ineffective filtering tool in the hands of inventors, who would otherwise direct their mental and financial capacity towards subjects of viable patentable matter. In effect, furnishing agents/attorneys and inventors patent with an affordable yet professional patentability searching services would guarantee not only to benefit the serviced parties directly, it would also benefit the general public of applicants by reducing the backlogs and shortening review times. Most importantly, affordable patentability search services would ultimately benefit society as a whole by effectively channeling inventors towards the less exhausted edges of ingenuity.

NewTone was forged out of this peculiar need. The premise for NewTone’s business method consist of three assumptions: 1) the majority of ideas that people come up with already exist; 2) a patentability search is finalized when you find what you were looking for (positive search); and 3) positive searches take less time than negative ones (which are by definition infinite). By effectively internalizing these three assumptions, Tvito sought to transfer some of the risk involved with applying for a patent from the inexperienced inventor to a specialized service provider, capable of providing a professional assessment. The solution: A patentability search service where the customer pays a fixed price, only for a positive search.

Introducing this new service to the industry was like a whiff of fresh air to a dusty old closet. Not only that it lowered the costs of patent searching dramatically, allowing a multitude of new players to enter the game, it also became a natural fertilizing connection between inventors on the one hand and patent agents/attorneys on the other, allowing everyone to benefit.

In a period of 10 months NewTone grew from a single man operation to a multiple employee information service provider with a proven 10% market share of all patent applications in Israel alone. NewTone employs information specialists from various fields of exact sciences such as Biotechnology, Applied Chemistry, Electrical Engineering, Applied Physics, Computer Science, Economics and Management. Moreover, NewTone boasts an in-house R&D department entrusted with the constant release of new services such as the web based intelligent search report - PatenTest in-depth™, and the complimentary family and legal status search engine - PatenTest legal™.

Today NewTone operates through affiliate offices in 7 countries, serving clientele ranging from R&D and IP divisions of top market firms, through governmentally and privately funded industrial and technological parks, to venture capital funds, leading patent agents/attorney firms and private inventors.