09/657,524, filed September 8,2000.

BACKGROUND OF THE INVENTION Field of the Invention [0002] The present invention relates to a method and apparatus for automatically creating a document and/or providing information and/or support material. More particularly, but not exclusively, to creating a legal document relating to intellectual property and/or providing information and/or support material to that intellectual property.

Description of Related Art [0003] When it is desired to create a legal document, for example a license agreement, there are a large number of variable terms and conditions that can be incorporated therein. In the case of a patent license agreement there will be certain standard clauses that the licensor will always want included in the document and a selection of optional clauses that are available to the licensee. For example, the licensor will want to structure the document to focus on selected territories, modes of royalty payment, duration of the license, ownership of subsequent improvement patents and many other variables which are part of a license negotiation. With existing practices the initial drafting of such a document can be extremely time consuming and is often hindered by not having readily available a list of options that will be acceptable to the licensee.

[0004] There is a need to provide a method by which a prospective licensor can create a license agreement to meet their specific needs by making choices from a number of options and having that license agreement automatically checked and amended to produce a consistent document.

BRIEF SUMMARY OF THE INVENTION [0005] In one embodiment of the invention there is provided a system for creating a legal document comprising a legal database that is accessible by a plurality of users and stores legal data for creating a legal document; the legal data comprising a plurality of legal components associated with a plurality of possible legal agreements; and a user database coupled to the legal database by a computer network for providing access to the legal database by the user for extracting legal components from the legal database to create a legal document specific to the needs of the user.

[0006] A legal database may be a legal database and/or a document database and/or an information database.

[0007] In a preferred embodiment the system is provided with software which displays to the user a'License Walk Thru"in which the user is shown a series of screens in the form of a route map, for example for a license agreement. The screens are provided with prompts to direct the user to relevant data, for example the headings and clauses in a patent license agreement, and the user can select and add the clauses to the document being created. The system software can also allow the user to draw down support information from another relevant database, for example patent information from a patent database.

[0008] In a preferred embodiment of the system, an autochecker device is provided which scans the legal document created by the user to identify clauses which cross-refer to other clauses and checks if target clauses are present. Similarly the autochecker may have the functionality of identifying phrases which are normally defined within the legal document and checks if the definition is present within the document.

[0009] The system is designed to display to the user any changes that are being proposed to the legal document. For example, the autochecker device can display to the user both target and source clauses and requests the user to indicate if the unselected clause is required. Similarly can display to the user a'missing'definition and requests if the insertion of that definition is required.

[0010] When the autochecker device has completed its steps of checking for inconsistencies within the document and the user has inputted their answers, the autochecker device makes a final check of the legal document, hereinafter described as a Legal Folder, with the contents in a checklist table. The autochecker device compares the contents and produces and displays to the user a report of the identified changes agreed with the user. The user is given the opportunity to decide if they are satisfied with the Folder contents. If the user declines the process of determining the license clauses etc can be repeated. If the user is satisfied with the Folder contents the Folder is"frozen"and downloaded. At this stage the final form of the document is created by fitting the agreed clauses into a'heading Skeleton'which sequentially numbers the clauses within the document and displays the final agreement on the user's screen for review, if the user agrees with the content they accept and the user is provided with an Agreement in electronic or paper form along with the autochecker report.

[0011] The term"legal document"is used herein to mean a document in either paper or electronic form.

[0012] As will be appreciated to a person skilled in the art the system can manage communications and security between the user and the legal database in a variety of different ways. For example, all modifications to the document proposed by the user can be communicated in real time to the host server hosting the legal database.

Alternatively, the user can be provided with an applet which allows at least some of the amendments to be made at the users server before they are communicated back to the host server.

[0013] The present invention also provides a method of automatically creating a legal document from legal data defining standard and/or variable terms and conditions, the method comprising creating the legal data in a database; selectively extracting from the legal database the desired legal data and automatically creating the legal document from the desired legal data.

[0014] In a preferred embodiment the method includes displaying to the user a"License Walk Thru"in which the user is shown a series of screens in the form of a route map, for example for a license agreement. The screens are displayed sequentially and include prompts to direct the user to relevant data, for example the headings and clauses in a patent license agreement, that the user can select and add the clauses to the document being created.

[0015] In a further preferred embodiment the method includes the step of automatically checking the legal document created by the user to identify clauses which cross-refer to other clauses and checks if target clauses are present. The method may also include the step of identifying phrases which are normally defined within the legal document to check whether the definition is present within the document.

[0016] There is also provided a method for creating electronically a legal document from a plurality of information details associated with a plurality of legal documents, the method comprising creating the information details associated with the plurality of legal documents and storing that information in a database, and extracting from the database one or more information details from the plurality of information details and using the extracted information to create the legal document.

[0017] The database for storing the created information is associated with a first computer system and the extracted information details are stored in a second database associated with a second computer system. The legal document may be a license relating to the licensing of intellectual property.

[0018] Another aspect of the present invention is a computer program for creating a legal document for use with the methods and systems defined above and described hereinafter.

BRIEF DESCRIPTION OF THE DRAWINGS [0019] The invention will be described further, by way of examples, with reference to Figures 1 to 8 of the accompanying drawings.

[0020] FIGURE 1 shows a system schematic of the present invention; [0021] FIGURE 2 shows a flow chart illustrating the steps involved in an on-line licensing model for creating a legal document in accordance with an example embodiment of the present invention; [0022] FIGURE 3 shows another embodiment of the present invention illustrating the steps involved in an on-line licensing model for creating a legal document in accordance with an example embodiment of the present invention; [0023] FIGURE 4 illustrates a high level schematic disclosing various modules which enable a user to construct a legal document; [0024] FIGURE 5 illustrates a detailed flow chart identifying the steps involved in creating a legal document ; [0025] FIGURES 6a-6b illustrate flowcharts identifying detailed steps involved in creating a legal document in accordance with the present invention as in FIGURE 4; [0026] FIGURES 7a-7d illustrate various user interfaces presented to a user during the process of creating a legal document in accordance with an example embodiment of the present invention; [0027] FIGURE 8 illustrates a high level flowchart for building a legal document in accordance with an example embodiment of the present invention.

DETAILED DESCRIPTION OF THE INVENTION [0028] Referring to the drawings Figure 1 shows a preferred embodiment of a system according to the invention, comprising in general, a communications network 1 which interconnects system station 2, and user stations 3 and 4. Although only two user stations are shown it will be appreciated that more user stations can be provided.

Preferably, there will be many user stations interconnected via the network to each other and to system station 2.

[0029] In more detail, system station 2 comprises an online data base 21 which is 20 connected to the network 1 and to system terminals 22 and system printer 23. User stations 3 and 4 are similar comprising user terminals 31 and user printer 32 connected via the network connections 10 to the network 1. The user stations 3,4 may have any combination of user terminals and user printers and in particular although a user station will usually have at least I user terminal 31 no specific combination of user terminals and user printers is required.

[0030] In general operation, a user at a user station will access the online data base in the system station to retrieve data, as described in more detail below, and to perform operations on that data and/or to create or modify material created from that data and/or other user data.

The material created by a user may be provided to another user station via communications network or to the systems station for use within the systems station or onward transmission to another user station. The more detailed operation of the system to facilitate online licensing of intellectual property is described in more detail below.

On-line Licensing Process Model I [0031] The core concept of the Licensing Process Model is to provide users with a range of material, which a user can select from, to gather and/or create material suitable to their needs. This model is generally illustrated in FIGURE 2.

[0032] In summary, the Licensing Process Model 200 provides users with a graduate series of optional selectable Checklists and Template (s). An overview diagram of Licensing Support Material Model is presented below. Users would access the Licensing Process Model by either requesting the Basic or Active Checklist.

[0033] The Basic Checklist 202 provides one or more lists of terms and conditions, (3 are currently envisaged), that a Licensor/Licensee might wish/need to include in a license. The purpose of the Basic Checklist is to provide a knowledgeable user with a top level reference document, and allow users with a greater requirement for support material, typically less experienced users, with on demand access to more detailed material. The more detailed material will be available as background material, available-it is proposed-as pull down menu items by clicking on a Checklist item. Thus, the background information will be user selectable. Envisaged background information includes-Term Definition, Prompt Questions, and Sample Clause (s).

[0034] The Active Checklist 204 is a subset of the Basic Checklist into which User can insert data, Call data down from, or Select from a range of options. The subset is a set of terms and conditions (Terms) that, collectively, can form the core or basis for a license It can be regard as a minimum set-it is not the single minimum set (nor is there one)-of information needed to form a license. The Terms, can be divided between Variable terms and Optional terms.

Both Variable and Optional terms will be user determinable. Variable terms, e. g., royalty rate, will be user provided, or provided by call down from, e. g. Patent numbers, while Optional terms, such as Exclusivity, will be selectable from a list-e. g. Non-Exclusive, Exclusive, Sole. The Active Checklist 202 should be emailable-it could form the basis for a heads of agreement between parties. It can also be used for the Active Skeleton License 206.

[0035] The Active Skeleton License 206 is intended to provide, for example a basic Patent, Manufacture and Sale License.

Users can add to the license or use, with their own data, and subject to their own choices, the license they have created. The Active Checklist is intended to be the input template for the Active Skeleton License. As mentioned above, there are a many potential variables to a license.

Online Licensing Process Model 2 [0036] As shown in the process diagram in Figure 3, a User can access the online licensing process model 2 at a number of access points. For example, a user can access the process through a series of prompt questions as identified at 302, and described in more detail below, which will give access to basic checklists 304 for the licensing process 300. These basic checklists 304 will provide a user with information and examples of terms and conditions for a license by accessing the data base records containing item definitions 310 and sample clauses 312. The user can be presented with the option of selecting sample clauses 312 to create a license generally indicated at 318 or be presented with a"skeleton"license template as indicated at 308 in which user and system data can be incorporated. As an alternative, a user can be provided with an active checklist 306 which is a document listing terms and conditions for a license, and into which a user can input user provided data or data from the system database.

[0037] For example, the system database may contain records of patents for license and the active checklist may be formed in part by the selection of data from the data base either under user control or automatically. Also, a user may provide user data for example a chosen royalty rate or payment sum and enter this into the active checklist 306.

The active checklist 306 may be used to provide data in one of a number of formats. The active checklist 306 itself may be (i) provided to the user as a document, or (ii) it may be provided to another user station by means of an e-mail document, or (iii) it may be incorporated into a license skeleton template, i. e., a license document having the terms and conditions of a license in order to provide a complete or partially complete license document, which may be provided to the user creating the document or to another user station. The active checklist 306 may be used in co-operation with the clause selection 314 and user license build process 318 so that a user can provide data and select data from the online data base to be included in a license build 318 using the clause selection process 314.

License Walk Thru [0038] This business process as described in Figures 4 to 8 allow the user to develop a license agreement to meet the user's specific needs by making choices from a number of options.

[0039] As a first step to the License Walk Thru the user is shown a route map 402 for a license agreement. Prompts direct the user to relevant clauses which can then be selected and added to the License Folder. Certain clauses will draw information from the relevant database listing.

[0040] Figure 4 illustrates a high level schematic disclosing various modules which enable a user to construct a legal document from a number of options. As a first step to the license walkthrough as indicated at 402, a user is shown a route map for a license agreement.

The license walkthrough is preferably shown as a series of user interface templates/screens to the user. The screens are provided with prompts to direct the user to relevant data, for example, the headings and clauses in a patent license agreement. These steps are generally indicated by numerals 404,409, respectively. The system also enables the user to import information from other database listings, such as for example, patent information from a patent database, as indicated at step 406. The legal document created from the collected information is processed through an autochecker in order to identify clauses within the legal document that cross-refer to other clauses. This step is generally indicated at 408. Also, autochecker scans the legal document to determine the presence of target clauses.

[0041] Figure 5 illustrates a detailed flow chart 500 for creating a legal document, a high level description of which is described as above with reference to Figure 4. Once a legal document is created, and the user is satisfied that all the necessary clauses are present within the legal document, the user freezes further the document to prevent any further modifications to the created document and downloads the same for further review and processing.

[0042] Figures'6a-6b show a detailed flowchart illustrating the various process steps involved in creating a legal document Referring to Figure 6a, the process of creating a legal document starts with step 602 wherein a user commences"walkthru", reviews a first question presented as at step 602 and determines if further information is required as indicated at step 608. Further information is sought by reviewing the checklist and considering various options presented to accept a presented clause, reject a clause, or insert the user's own clause.

These steps are generally shown as indicated at 612 through 622, respectively. If additional information is desired, such information is either imported or inserted to the license folder and the process returns to"walkthru". These steps are generally shown from 624 through 632, respectively. If the question read at step 606 is not relevant, then the user returns to"walkthru"as indicated at step 602. In the event that the user encounters further questions as identified at 634, the above described process is repeated by directing the user through loop 637.

However, if there are no more questions, then the user is directed to go to definitions as indicated at 640, appropriate words or phrases are highlighted and selected definitions are added to a folder as indicated at 642,644, respectively.

[0043] The assembled document is then passed through an autochecker for identifying clauses which cross refer to other clauses and checks if the target clauses are present as indicated at step 648. A determination is then made as to whether a select clause is required or not as identified at step 652. Several such delinquent clauses are identified and processed appropriately. If there are no other delinquent clauses, then the autochecker identifies phrases which normally are defined, and then checks if the definition is present at step 656. Missing definitions are displayed and added to the definition folder. The folder contents are compared with a checklist at step 664 and a report is produced as indicated at step 666. If the user is satisfied with the folder contents, then such contents are frozen and downloaded into a heading skeleton document. The clauses selected by the user are sequentially numbered by the"walkthru"process and an agreement is displayed on screen for review. If the document is acceptable, then it is provided in electronic or paper form along with an autochecker report. These steps are generally indicated at steps 670 through 676. If the document is not acceptable, and the user still has some concerns, then the user is directed to the"walkthru"process as indicated at step 674.

[0044] As noted above, when the user reaches the end of the License Walk Thru the contents of the folder are then compared to a check list. The user is given the option of revisiting the License Walk Thru or adding their own text. When satisfied the user checks the "freeze and download"button and is presented with a Draft Agreement for Review.

[0045] No two situations are identical and it is down to the Licenser to select an agreement which meets his particular circumstances. This Walk Thru does not replace the Professional Advice which the'User can obtain from its own advisors especially on patent, legal and taxation matters Use of any documentation created using the Walk Thru is the responsibility of the Licensor.

[0046] When the final document is produced after going through the Autochecker, the clauses will be hung onto a skeleton/frame document in order to produce a coherent document rather than a random selection of clauses. Other rules may be applied within the skeleton which could also include virtual headings (i. e. ones which fix a location without appearing on the face of the document-the overt headings).

[0047] Figures 7a-7d illustrate various user interfaces presented to a user during the process of creating a legal document in accordance with an example embodiment of the present invention.

Figure 8 illustrates a high level flowchart for building a legal document in accordance with an example embodiment of the present invention.

[0048] On-line negotiation of a license agreement may be facilitated when both the licenser and licensee have access to the document creator/license"Walkthru". One party should have full access rights and ownership while the other may have read only access, limited editor access or full access.

[0049] The method as disclosed in present invention provides a way to handle dialogue during license negotiation between a licensor and a licensee. For example, a first draft agreement may be provided by A (e. g. licensor) to B (e. g. licensee). The autochecker report may be made visible only to the originator of the report. However, from this point on further reports (license negotiation tracking reports) may be produced which will in whole or part be visible to one or other or both parties. In particular, the record of changes and arguments for those changes, if any, put forward by the initiator will be visible to both parties, while private annotations will not.

[0050] The licensee (B) reviews and makes counter proposal with additional or substitute clauses. The auto-checker checks the consistency of the new report, and when the initiator is satisfied, the initiator produces a revised document and license negotiation tracking report. The revised document and the report are sent to licensor (A).

The licensee (B) reviews and responds in the same manner as the licensor (A). This process continues until both sides are exhausted, or until a consensus is reached. It may also be possible for the tracking report to indicate whether or not the sides are approaching a consensus or moving apart. In a simple form, this would be by counting the number of words in the amendments and arguments, and then plotting the trend.

[0051] In a more complex form, weighting factors could be applied to certain clauses or words (e. g., the word'not'which would reverse the intent of a clause, and thus would be given a high weighting). The final draft/engrossment would be held as a matter of record along with the amendments which led to it. The process would take place over secure or encoded links with the usual log-on and password protection arrangements, with a possibility of a number of people being allowed to amend but only one person from each side authorized to'sign off on each stage before revisions are sent to the other party. This procedure is helpful either as a follow on to the initial document creation, or in more conventionally produced documents as outlined below.

[0052] Since there could be a free text capability on any clause (only constrained by the need to provide certain background information or tags to allow the clause to be placed in the correct position on the'skeleton'/document frame and to put it in the right context for the autochecker), this process could be used as a way of tracking and tracing the development of legal agreements produced through conventional means. Almost invariably, lawyers will produce an agreement from a previous or standard agreement, adding and amending to suit particular circumstances. This method can be applied in a wider context-e. g. other legal agreements (as envisaged), or other assessments and reviews and specifications.

[0053] While the invention has been described in connection with what is presently considered to be the most practical and preferred embodiment, it is to be understood that the invention is not to be limited to the disclosed embodiment, but on the contrary, is intended to cover various modifications and equivalent arrangements included within the spirit and scope of the appended claims.