TIPS FOR OUTSOURCED MANUFACTURING
Companies developing new products sometimes opt to outsource the
fabrication of prototypes or the pilot-stage manufacture of
products for beta testing. Outsourcing may make sense for companies
that do not have in-house prototyping capability, or if the
manufacture requires special technical expertise. By outsourcing
the fabrication of prototypes during product development, however,
a company may risk losing valuable intellectual property rights. In
light of recent developments in patent and trade secret law,
companies should take several precautions to protect their
intellectual property rights.
Under the Patent Act, an inventor must file a patent application
on any invention within one year after the first public use,
disclosure, or commercial offer for sale. See 35 U.S.C.
§§ 102(a) and (b). If a patent application is not filed
by that time, then a statutory bar prevents the inventor from
obtaining a patent on the invention. In
