For patent practitioners, translation is everywhere

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Language barrier

                       For patent
                       practitioners,
                       translation is
                       everywhere
                                                                        of enforceable patents held by other parties
                       Patent translations involve                      in their firms’ target markets.
                       some of the most technically                          While each of these responsibilities is
                                                                        different, one thing they all have in common
                       and linguistically challenging
                                                                        is a frequent dependence on translation.
                       material available, but are often an             Translation plays an important but widely
                       afterthought. As global patent filings           underappreciated role in almost all of the
                       grow, a rethink of how we approach               key functions associated with managing a
                       patent translations is needed                    global company’s patent portfolio and the
                                                                        importance of that role goes beyond its
                                                                        often considerable budget impact.
                       By Matt Sekac                                         During prosecution, translation has
                                                                        a bearing on grant determination and the
                       The development, maintenance and                 scope of a patent application’s enforceable
                       enforcement of a strong international            coverage. Translated material informs a firm’s
                       patent portfolio are increasing priorities       assessment of its IP positioning in foreign
                       for businesses of all sizes across a wide        markets, potentially influencing decision
                       range of industries. The World Intellectual      making with regard to new product launches,
                       Property Organisation (WIPO) reports that        prospective acquisitions, enforcement actions
                       “following a 3.9% decrease in 2009, patent       or a firm’s negotiating position in licensing
                       filings worldwide have now rebounded             discussions. Should a firm face a production
                       strongly, with accelerating growth rates –       of foreign language documents during the
                       7.6% in 2010, 8.1% in 2011 and 9.2% in           discovery phase of litigation, its case will be
                       2012”. This trend is being driven in part by     built, its strategy developed, the case tried
                       the growth in patent filing in developing        and the outcome determined largely on the
                       economies such as China, Mexico, Russia,         basis of translated documents.
                       Brazil and India.                                     For globally competitive firms in IP-
                            As patent positioning plays an              intensive industries, translation should
                       increasingly important role in the global        be viewed as a critical element of the
                       marketplace, those charged with managing         portfolio management function. This
                       and asserting a firm’s international patent      article begins with an overview of the
                       portfolio face a complex and multifaceted        challenges associated with performing
                       challenge. Applications for patents on           accurate translations of the complex
                       new innovations must be drafted, filed           technical material relating to patents. It
                       and seen through to grant. Licence               goes on to explore the many different ways
                       agreements must be pursued, negotiated           that translation can affect a firm’s ability
                       and implemented. Patent infringements            to compete globally where IP positioning
                       must be identified and, when necessary,          grows more important every year. We also
                       enforcement action must be taken to              review the way that many firms go about
                       remedy such infringements. In addition,          the business of obtaining translations,
                       patent practitioners at multinational firms      which is often fragmented, decentralised
                       must stay constantly vigilant in order to        and ad hoc. Finally, it proposes a plan of
                       protect their firms from litigation, in part     action for firms to take control of this key
                       by assessing and monitoring the landscape        aspect of portfolio management.

www.iam-magazine.com                                             Intellectual Asset Management September/October 2014 77
Language barrier

Translation is more than just a                    Figure 1. Growth in global patent filings
commodity
Patent texts and related documentation
represent some of the most demanding                                             2012                                                    9.2%
source material for translation professionals.
Yet experienced, capable patent translators
are a scarce and valuable resource.                                              2011                                             8.1%
     According to 2012 data gathered by
the US Bureau of Labour Statistics, the
median translator classified as working                                          2010                                           7.6%
in “professional, scientific and technical
services” earns about 19% more than the
median of translators as a whole. That                    -3.9%                  2009
category is sufficiently broad to encompass
translators who work with material of a            -6%            -4%    -2%         0%         2%         4%         6%        8%         10%      12%
less demanding nature, with less at stake
and requiring less in the way of expertise         Source: World Intellectual Property Organisation, World IP Indicators 2013
than the translation of patent applications,
such as user manuals, marketing materials
and agreements in addition to other legal
texts of a non-technical nature. Although          patent practice”.
the bureau does not provide data on patent              The language used in patent
translators specifically, the extent of            applications is carefully structured and
training and expertise required for patent         the precise terminology carefully selected,
translation likely allows for many US patent       in consideration of various patent laws
translators to command wages approaching           and regulations which are often rife with
the top 10th percentile of earners in the          nuance. From the same article: “complex
industry. This also depends in part on a           sentence structures, particularly in the
translator’s individual output capacity.           claims, and the need to maintain the
     In order to render any source text            breadth, narrowness or ambiguity of the
properly in another language, a translator         original language also contribute to the
must absorb and understand that text’s             particular translation challenge posed by
meaning. The text contained in patent              patents.” Supreme Court Justice Henry
applications often describes extremely             Billings Brown was not even thinking about
complex technology requiring advanced              translation when he wrote, in the court’s
technical expertise to be fully absorbed           1892 decision in Topliff v Topliff (140 US
and understood. When translating highly            156): “The specification and claims of a
technical material contained in a patent           patent, particularly if the invention be
application, the translator typically requires     at all complicated, constitute one of the
a relatively in-depth understanding of the         most difficult legal instruments to draw
invention’s technical field.                       with accuracy, and in view of the fact that
     To take a simple, hypothetical                valuable inventions are often placed in the
example highlighting the importance of             hands of inexperienced persons to prepare
understanding context in translation,              such specifications and claims, it is no
consider the different possible meanings           matter of surprise that the latter frequently
of the English word ‘field’. If a patent claim     fail to describe with requisite certainty the
referring to a ‘magnetic field’ were rendered      exact invention of the patentee, and err
in its translation as describing a ‘magnetic       either in claiming that which the patentee
meadow’, it is not hard to imagine the             had not in fact invented, or in omitting
potential for adverse consequences.                some element which was a valuable or
     To capture the specific and precisely         essential part of his actual invention.”
defined elements of an invention disclosure             Patent translators face the same
in a patent translation fully and accurately,      challenge. They must capture “with
or research documentation pertinent to             requisite certainty the exact invention of
an infringement suit, both linguistic and          the patentee” in a foreign language which
technical competency are required. Yet             might have radically different rules and
these alone are not enough to achieve the          conventions governing syntax and sentence
best and most reliable results. As noted           structure, both generally and in the
in a 2010 New York Law Journal article on          particular context of patent applications.
translating patent applications (Vol 24,                A similar level of specialised knowledge
No28), truly qualified patent translators          and expertise applies to translators working
should understand “at least the basics of          with discovery material during patent

78 Intellectual Asset Management September/October 2014                                                                              www.iam-magazine.com
Language barrier

Figure 2. Patent filing growth in developing countries 2012                                            that firms may benefit from a careful
                                                                                                       evaluation of their translation sourcing
       India              3.9%
                                                                                                       practices. This is especially true in light of
                                                                                                       the pervasive ability of translation to affect
                                                                                                       a firm’s patent positioning across nearly all
      Brazil                  5.1%                                                                     portfolio management functions, which is
                                                                                                       explored in the next section.
     Russia                        6.8%
                                                                                                       Where translations arise
                                                                                                       Foreign filing and patent prosecution
     Mexico                               9%
                                                                                                       Translation needs arise early in the lifecycle
                                                                                                       of an international patent family. Foreign
China (SIPO)                                                                       24%                 patent protection is most commonly sought
                                                                                                       by way of Patent Cooperation Treaty (PCT)
               0%        5%          10%          15%          20%           25%     6%         30%    national phase entry, direct national filing
                                                                                                       under the Paris Convention and national
Source: World Intellectual Property Organisation, World IP Indicators 2013                             validation of granted European patent
                                                                                                       applications. As a component of this
                                                                                                       process, firms seeking to extend protection
                                                                                                       into non-English speaking jurisdictions
                                                                                                       normally must submit a translation of
                                                        litigation. Document productions may           the patent application into the local
                                                        contain all manner of technically demanding    jurisdiction’s official language.
                                                        material – from lab notebooks to research          This requirement is more than a simple
                                                        documentation, product specifications and      formality: the IP authority in most non-
                                                        development plans, quality assessments         European patent jurisdictions conducts
                                                        and technical performance metrics, memos       its own examination based on its own
                                                        and other correspondence regarding all of      IP laws and regulations. In general, the
                                                        the above. In addition, correspondence will    translation is the controlling text both
                                                        frequently blend technical material with       during examination and in the event of an
                                                        colloquial language and dialect-specific       infringement suit. Errors in the translation
                                                        idioms, introducing another level of native-   of a patent application can materially
                                                        language expertise to the list of required     compromise a patent examiner’s grant
                                                        translator qualifications.                     determination, as well as the scope of
                                                             The translations required by patent       the patent’s claims and the viability of
                                                        practitioners involve some of the most         enforcement action later on. While it is
                                                        technically and linguistically demanding       possible to file amendments correcting such
                                                        material available. To execute those           errors in some countries, the specifics vary
                                                        translations accurately requires a roster of   widely and in most cases an applicant’s
                                                        highly qualified translation professionals     opportunity to take corrective action is
                                                        with specialised expertise. It also requires   restricted to the period prior to grant
                                                        a well-defined process with robust quality     or earlier. Even when translation errors
                                                        assurance measures and concrete metrics        are identified before grant and recourse
                                                        for monitoring and improving performance.      is available, the preparation and filing of
                                                        This process needs to be capable of handling   required amendments create added expense
                                                        a volatile workflow of inconsistent volume,    and a longer time to grant, increasing the
                                                        which potentially spans dozens of languages    cost of patent ownership and delaying the
                                                        and multiple technical fields.                 possibility of enforcement.
                                                             All of which is to say that patent            Translation is also a key driver of
                                                        translation should not be regarded as a        the expense associated with obtaining
                                                        commodity. The challenging nature of           patent protection in foreign countries. In
                                                        the source material – together with the        comments offered to the US Patent and
                                                        scope and variability of a global patent       Trademark Office regarding the costs faced
                                                        department’s translation needs – suggests      by small and medium-sized enterprises in

   By confronting the need for translation only when it arises,
firms relegate purchasing authority to a fragmented
assortment of parties
www.iam-magazine.com                                                                            Intellectual Asset Management September/October 2014 79
Language barrier

pursuing international patent protection,          Figure 3. Translator incomes
the American Intellectual Property Law
Association (AIPLA) noted that: “with
regard to the acquisition of international
                                                                 90th percentile of all translators
patent rights, translation costs, annuity
fees, and foreign professional fees represent
significant expenses and act as barriers
that often prevent small businesses from           Professional, scientific and technical services
applying for foreign patents.”
     Indeed, translation costs can escalate
quickly as the list of target countries grows.
The graph below provides an approximate                                         Median translator
estimate of the translation costs associated
with filing a typical patent from five
industry categories in Japan, Korea, Mexico,                                                      $0   $20,000   $40,000   $60,000     $80,000   $100,000
China, Brazil and Russia based on research
compiled internally by Park IP Translations        Source: US Bureau of Labour Statistics
using data gathered from published US
patent applications.
     Translation is also integral during
prosecution when a patent examiner issues          •      Patents filed in multiple countries may
an office action in another language or                   have been granted claims of differing
cites a non-English piece of prior art. With              scope.
patentability often depending on nuanced           •      A holder of a foreign patent may have
interpretation of granular technical details,             failed to pay required maintenance fees
it is important for the attorneys drafting                to retain protection.
the response to fully understand the precise       •      Some countries have unreliable
meaning of the office action, as well as any              enforcement regimes – there may also
art that the action cites.                                be statutory limitations on damages in
                                                          certain countries.
Freedom to operate assessments
Before acquiring a company or taking                   There is also the potential challenge of
a new product to market, firms will                assessing the IP positioning in the context
frequently conduct a ‘freedom to operate’          of a patent landscape composed entirely
analysis in order to assess the risk of            of foreign language claims. The results of
possible litigation arising from infringing        a freedom to operate survey are a major
another party’s existing intellectual              factor in a firm’s evaluation of a prospective
property. A comprehensive freedom to               acquisition or a new product’s financial
operate analysis can be costly. In this            viability. Decisions regarding potentially
analysis, a thorough assessment of the             significant investments in the development
product and the relevant marketplace               and launch of a new product hinge on these
is conducted. Competitors and the                  risk assessments. Finally, the accuracy of
components of similar products are                 these assessments may rely heavily on the
evaluated and existing licensing and               accuracy of patent translations.
manufacturing arrangements analysed. An                In order to evaluate the danger of
extensive survey of unexpired patents and          patent infringement litigation posed
published applications pending grant is            by enforceable patents in a foreign
also performed. The total cost, according          jurisdiction, firms must first gain a
to patent attorney and founder of popular          thorough understanding of precisely what
IP law blog IPWatchdog.com Gene                    is claimed in those patents. If the claims are
Quinn, is typically “at least $10,000 and          in a foreign language, that understanding
sometimes substantially more”.                     will depend on the content of a translation.
    The analysis is further complicated            Firms and their attorneys may engage
when a firm is seeking product clearance           foreign counsel for assistance and guidance
for a foreign jurisdiction. The regulatory         in understanding the patent claims and
environment, market conditions and                 the broader context of applicable IP
competitive dynamics can vary widely               laws. However, in order to fully absorb
from country to country. The same is               and comprehend the conditions facing
true of each jurisdiction’s laws governing         a new business venture, firms will want
patent protection. Many jurisdictions have         to read those patents for themselves.
varying standards governing patentable             Their conclusions will be guided by their
subject matter:                                    understanding of translated text.

80 Intellectual Asset Management September/October 2014                                                                              www.iam-magazine.com
Language barrier

Figure 4. Translation costs (BR, CN, KR, JP, MX, RU)                                                      of negotiating leverage will frequently
                                                                                                          commission translations of their own
                                                                                                          patents to ensure that such a threat is
                 Mechanical
                                                                                                          credible – that is, to be sure that their
                                                                                                          patent claims say what they should.
       Electrical & electronic
                                                                                                          Litigation
            Drugs & medical                                                                               It may seem surprising that firms spend
                                                                                                          tens of thousands of dollars on freedom
                                                                                                          to operate assessments in order to avoid
Computers & communications
                                                                                                          infringement suits, until one sees the price
                                                                                                          tag of a patent infringement suit. Writing
                   Chemical                                                                               for cnet.com, Jim Kerstetter reports that
                                                                                                          a survey by the AIPLA found that in the
                                 $0   $2,000   $4,000     $6,000   $8,000   $10,000   $12,000   $14,000   United States: “For a claim that could be
                                                                                                          worth less than $1 million, median legal
Source: Park IP Research and the USPTO                                                                    costs are $650,000. When $1 million to
                                                                                                          $25 million is considered ‘at risk,’ total
                                                                                                          litigation costs can hit $2.5 million. For a
                                                                                                          claim over $25 million, median legal costs
                                                        Licensing negotiations                            are $5 million.” That is just to fight the
                                                        Once a patent has been granted, it becomes        battle; those numbers do not include the
                                                        an asset with real business value that            potential costs for defendants ordered to
                                                        firms will seek to maximise. One option           pay damages.
                                                        for monetising a patented invention is to              In addition to being expensive, patent
                                                        license its use to other parties, and licensing   suits are increasingly a fact of life for firms
                                                        specialists perform an especially important       in innovation-driven industries, especially
                                                        function for global firms with large patent       those doing business in the United States.
                                                        portfolios and products that integrate the        Due in no small part to the divisive class of
                                                        use of multiple patented inventions. Steve        organisations known as ‘patent assertion
                                                        Jobs once said that the portfolio on iPhone       entities’ and commonly referred to as
                                                        components and functionality was over             ‘patent trolls’, infringement litigation is
                                                        200 patents – and those are just Apple’s          on the rise. In 2013 the number of patent
                                                        patents (source: Intellectual Property Today,     suits filed in US district courts was more
                                                        November 2009). Companies such as Nokia           than double the number filed just five years
                                                        and Samsung also license technology to            earlier. There has also been a sustained
                                                        Apple, which is then integrated into the          increase in Section 337 investigations at
                                                        final iPhone product. Apple’s innovations         the US International Trade Commission,
                                                        are licensed, in turn, to companies such as       another venue for patent assertion favoured
                                                        Nokia and Samsung for integration into            by many patent holders due to the speed of
                                                        their own final products.                         its proceedings.
                                                            The environment for licensing                      More than half of the money spent on
                                                        professionals and the way that those              patent infringement suits in the United
                                                        professionals engage their environment            States is spent during discovery. The scope
                                                        can vary from industry to industry and            of discoverable documentation in US courts
                                                        from firm to firm. They are influenced by         is extremely broad and litigants routinely
                                                        factors such as pre-existing cross-licensing      produce tens or hundreds of thousands
                                                        arrangements, developments in ongoing             of pages of documentation during the
                                                        or prospective infringement suits, the            discovery process. Those documents are
                                                        evolution of new technologies, international      then reviewed and assessed by a team of
                                                        competitive dynamics and the firm’s               attorneys and staff as they build their case.
                                                        overarching business goals and initiatives.            In cases where one party produces
                                                        To the extent that a firm’s licensing strategy    documents in a foreign language (eg,
                                                        and negotiating posture depend on the             25,000 pages of Japanese emails, memos,
                                                        claims of foreign language patents, that firm     lab notebooks and other materials),
                                                        will depend for information on the accuracy       attorneys must find a resource for linguistic
                                                        of language translation.                          support. Firms hire or engage services
                                                            A firm may even require translations          to provide bilingual contract attorneys,
                                                        of applications filed under its own name          foreign language document reviewers and
                                                        that were translated by another party             translators. They depend on these resources
                                                        for filing abroad. Firms counting on the          to identify pertinent documents, develop
                                                        threat of enforcement action as a source          a case on their basis and, if necessary,

www.iam-magazine.com                                                                               Intellectual Asset Management September/October 2014 81
Language barrier

present those translated documents in                   In many cases, translations required in
court. A failure to appreciate the relevance       connection with foreign patent filings are
of key foreign language documents                  handled by the foreign patent firms that
properly or a substantive translation error        serve as local counsel during prosecution.
in an important exhibit can meaningfully           It is easy to see how the arrangement
compromise a party’s interest in a high-           comes about, as patent applicants require
stakes legal battle.                               a local agent in each target jurisdiction for
                                                   guidance regarding jurisdiction-specific
Fragmented and reactive buying                     statutes and regulations:
practices                                          • to prepare and file the required
While translation is required in the service            documentation on the applicant’s
of very different purposes, the nature of the           behalf;
requirement is actually fairly consistent.         • to serve as local representation before
Whatever the ends being pursued, in order               the applicable patent authority; and
to achieve those ends, patent professionals        • to assist in preparing amendments,
of all stripes encounter the need for reliable,         office action responses or other
accurate translations of technical patent and           disclosures where necessary.
related documentation. In some cases it is
difficult to anticipate specific instances of          The administration of translation
need. As an example, prior art translations        requirements would seem to fit quite
are required sporadically in response              naturally into that slate of responsibilities,
to patent office actions. New licensing            which is the main reason why foreign patent
discussions may generate a need for                firms still handle a high proportion of
translations on an ongoing basis. Litigation       translations for the applications they file.
and discovery are unpredictable. On the                The weakness to this set-up is a major
other hand, some specific translation              limitation on the ability of applicant firms
requirements are foreseeable. Firms know           to gain visibility of and exert control over
which of their applications will be coming         the processes, best practices and quality
due for PCT national phase entry 30                assurance measures in place to ensure
months in advance of the deadline.                 that their patent applications are being
     Although a firm’s precise need for            translated accurately. The possibility of
translation over the course of a given year        substantive translation errors represents a
may be variable and unpredictable, many            legitimate financial risk. Without the ability
firms can anticipate in broad terms that the       to monitor and influence how translations
patent department will require translation         are prepared – without transparency or
in the service of its various functions.           control – firms have no means by which to
Together with the pervasive importance             assess this risk or take action to mitigate it.
of accurate translations, this suggests                As long as a firm obtains translations
that firms would benefit from a top-down           for foreign patent filings from its foreign
approach to managing their translation             patent agents, it will face constraints
needs. They should have high-level                 on transparency and control. Many
transparency of spend and their providers.
     Unfortunately, this is not the case
at many firms. Rather than approaching              Questions to ask yourself about your translation sourcing practices
translation as a key component of a
portfolio management strategy, translation          •     What are our main priorities and            •   Do we have any standards or evaluation
is instead regarded as more of an annoying                expectations for translation and are they       criteria for making sourcing decisions?
inconvenience – something that represents                 being met?                                  •   Can we benefit from more coordination
little more than another hoop to jump               •     How confident are we in the quality and         and continuity in our sourcing
through or box to check before moving on                  consistency of the work product we are          decisions? Are we suffering from a
to the real business of prosecuting a patent,             receiving?                                      downstream, reactive approach to
negotiating a licence agreement, arguing            •     Are translation defects increasing our          obtaining translations when needed?
a case or evaluating a new opportunity.                   applications’ time to grant and are         •   How many providers did we buy from
This attitude is evident from the fractured               we incurring additional costs for filing        last year and can we benefit from
and ad hoc manner in which many patent                    amendments and corrections?                     consolidation? Is our pricing consistent
departments make translation sourcing               •     Are translation defects jeopardising            and does it make sense?
decisions. Suppliers are engaged at the                   enforcement viability by misrepresenting    •   Is a lack of coordination among
point of need by individuals managing the                 the true and complete scope of coverage?        outside counsel resulting in redundant
administrative requirements of a particular         •     Are there inefficiencies in the processes       expenditures during litigation or creating
function, with a strong bias towards                      and procedures by which our                     unnecessary challenges in managing
legacy practice and little department-wide                organisation obtains translations?              foreign language discovery?
coordination.

82 Intellectual Asset Management September/October 2014                                                                        www.iam-magazine.com
Language barrier

Figure 5. Translation sourcing decisions

                                                                                                                                                             Sourcing decisions made downstream
                                                                                    Patent department

                          Filing and prosecution                   Licensing                      Freedom to operate                      Litigation

                       • Applications for filing         • Enforceable patents                • Enforceable patents             • Discovery material
 Translation needs     • Prior art references            • Published applications             • Licence agreements              • Depositions
                       • Office actions                  • Agreement text                     • Diligence material              • Court exhibits

                       • In-house department staff
                                                         • In-house department staff          • Outside counsel
 Sourcing decisions    • Outside counsel                                                                                        • Outside counsel
                                                         • Outside counsel                    • Foreign attorneys
                       • Foreign associates

                                                     organisations routinely pursue patent                      other services.
                                                     protection in more than a dozen foreign                         In the model described above, sourcing
                                                     countries – which means their patent                       decisions for foreign filing translations
                                                     translations are being handled by more than                are ultimately made by foreign patent
                                                     a dozen foreign patent firms, each deploying               firms. Should the need for translation
                                                     a different set of best practices in delivering            arise during the prosecution of a foreign
                                                     services outside its core competency.                      language office action or a piece of prior art,
                                                                                                                the domestic attorney (internal or outside
                                                     Foreign patent law firms are not                           counsel) responsible for prosecuting the
                                                     language specialists – they are law firms                  application usually has the authority to
                                                     The approach of different patent firms to                  procure a translation from the foreign agent
                                                     delivering this service can vary widely.                   or an alternative resource at his or her own
                                                     Some use in-house translators, some use                    discretion. Any translation needs arising
                                                     freelance translators and some outsource to                in connection with licensing activities
                                                     local translation companies, passing along                 are similarly addressed at the time they
                                                     the expense at a mark-up.                                  emerge and by the individuals directly
                                                          When organisations select foreign law                 involved. An outside law firm engaged to
                                                     firms to represent their IP interests abroad,              prepare a freedom to operate assessment
                                                     they are evaluating and selecting candidates               will normally procure translations, where
                                                     to render legal services on the basis of their             required, through its own channels, passing
                                                     legal expertise. Often this occurs without                 along the expense as a disbursement.
                                                     much consideration being given to their                         The same is true for translations
                                                     proficiency in executing one of the most                   required during litigation. In the case
                                                     demanding forms of language translation.                   of litigation, the expenditure can be
                                                     Even if the information were available and                 considerably larger and sourcing decisions
                                                     all parties were willing, few organisations                still more fragmented. Firms will typically
                                                     have either the expertise or the bandwidth                 appoint outside counsel to litigate
                                                     to thoroughly scrutinise, evaluate,                        infringement suits on their behalf and
                                                     implement and monitor compliance with                      larger suits will often involve multiple
                                                     a unified set of best practices and quality                defendants and therefore multiple co-
                                                     assurance measures across a global network                 counsel. All parties to the suit and each
                                                     of independent patent law firms.                           of their advocates will have some role in
                                                          The broadly exhibited tendency is for                 reviewing the documents produced during
                                                     organisations to address their need for                    discovery. Should the document production
                                                     patent-related translations reactively, at                 contain foreign language material, everyone
                                                     the point in time when translation needs                   involved in the review will have need of
                                                     emerge. This usually means that purchasing                 translation support.
                                                     authority is relegated to whichever party                       In addition to the potential challenge
                                                     is directly engaged in performing the                      of documents numbering in the thousands
                                                     function for which a particular translation                or tens of thousands, the involvement of so
                                                     is required. That party is not necessarily                 many parties introduces the possibility of
                                                     an employee of the organisation whose                      redundant expenditures on uncoordinated
                                                     interests are at stake. In fact, translation               translation requests. In most cases,
                                                     sourcing decisions are routinely made by                   translation support during discovery is
                                                     third parties in the course of providing                   engaged at the discretion of outside counsel,

www.iam-magazine.com                                                                                    Intellectual Asset Management September/October 2014 83
Language barrier

often with little coordination between co-
litigants and their advocates with regard           Action plan
to streamlining translation providers or
document translation orders. The result is a        A strategic approach to the impact of         •   take control – taking the time and
situation where co-counsel A and co-counsel         translation on your competitive positioning       investing the energy in understanding
B are on the same side reviewing the same           means that you should:                            the role of translation in your patent
production and ordering their own separate          • work towards greater transparency               portfolio is the most important part
translations of the same key documents.                 – conduct a thorough review of your           of taking control. Many firms will
     In the first place, this is problematic            past year’s translation expenditures          recognise the obvious benefit to some
for the obvious reason that the litigants               and identify all of the parties that          degree of consolidation and improved
are paying for multiple translations of the             make buying decisions, under what             continuity in sourcing translation needs.
same documents. However, there are also                 circumstances, based on what criteria
serious concerns about the possibility of a             and according to what procedures;             In evaluating prospective service
case built on differing versions of the same        • quantify spend – once you are aware         providers, look for a partner instead of just
key documents. If one side is working with              of all the sources of your translation    a vendor. Be prepared to describe your
multiple translations of the same document,             spend, calculate the total spend and      existing procedures, systems, operating
each carried out by a separate provider, how            how it is allocated across the various    protocols, technology and the role of each
will the attorneys sort out any disparities             functions of your IP department;          party involved; then expect providers
between the two? Translations prepared              • identify improvement opportunities          to engage you in a discussion on those
by different parties according to different             and pain points – with all of the above   terms. Look for solutions that integrate with
processes will lead to different work                   information, ask questions about          your own best practices and which can
products and the potential for different                current practices, figure out what is     be implemented with minimal disruption.
interpretations of important material.                  working and what is not, and devise       Leverage buying power and consider more
Which translation is more accurate? Which               means for making those practices work     than price. Remember, patent translation is
should be considered the controlling text?              better; and                               not a commodity.
If one version suggests a more favourable
interpretation to one side, but is ultimately
deemed to be inaccurate, how damaging
might that be to the case?                         transparency of processes, best practices
                                                   and quality assurance. Having evaluated
Move translation sourcing upstream                 and identified the best-suited translation
The key point is that a reactive, downstream       providers, firms can be confident that they
and decentralised approach to translation          have taken the proper steps to minimise
sourcing decisions introduces both risk and        risk posed by translation errors and have
waste into a firm’s portfolio management           equipped their patent professionals with the
functions. By confronting the need for             best resources to perform their functions.
translation only when it arises, firms relegate    In the event that issues do emerge, firms
purchasing authority to a fragmented               will have the visibility and the control to
assortment of parties, both internal and           identify the source of the problems and take
external, performing an assortment of              steps to rectify them.
responsibilities and with an assortment of             This is about more than just avoiding
evaluation criteria for selecting resources.       negatives, reducing risk and cutting costs.
This dilutes a firm’s purchasing power in          Firms have a real opportunity to gain
price negotiations and creates a great deal of     an advantage over competitors which
inconsistency and uncertainty.                     underestimate the role of translation in
    By moving translation sourcing                 intellectual property. By taking control of
decisions upstream and evaluating preferred        translations from the top down, you can be
resources at a high level in a coordinated,        more confident in the quality of your patent
centralised way, firms consolidate their           protection in foreign markets. You can go
buying power and improve their negotiating         into licensing negotiations armed with
leverage. Remember, while translations             better and more reliable information and
are required in the service of varying             be better positioned to identify, pursue and
functions – and the optimal model for              capitalise on new opportunities.
service provider integration and workflow
may differ across those functions – the
basic need is largely the same. Firms can
assess the competency of various providers
to service those functions and negotiate
favourable pricing, which can be applied
consistently across all needs.
    A centralised approach also imparts            Matt Sekac is senior director at Park IP
the important benefits of consistency and          Translations, New York

84 Intellectual Asset Management September/October 2014                                                                    www.iam-magazine.com
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