SAMPLE COMPANY                                        Page 1 of 3
SOP # 04-7  Revision: 0                Prepared by:             _
Effective Date:                        Approved by:             _


Title:         PATENTS

Policy:   All ideas, inventions or processes developed in the
          engineering department that are unique, valuable and
          deemed to be patentable will be properly documented and
          evaluated to ensure obtaining the protection of a legal
          patent.

Purpose:  To describe the documentation process of an original
          idea or invention.

Scope:    This procedure applies specifically to employees in the
          Engineering Department but may apply to any other
          employee who develops an original idea while performing
          their duties for the company.

Definitions:

Utility Patent - A patent for mechanical, electrical, or chemical
inventions covering processes, machines, article of manufacture
or compositions of matter, as well as improvements of the same.

Design Patent - A patent that protects the aesthetic or
ornamental external appearance of articles of manufacture.  This
is generally less valuable than a utility patent for protecting
ideas and devices.

Procedure:


1.0  Qualifying Ideas or Designs

1.1  In order to receive a patent,  there are three principal
     requirements written in the patent statute that must be met.
     To qualify an invention must be new, useful and nonobvious.

1.2  First, an invention must be "new."   New is the requirement
     of novelty; something different than what has been done
     before.  If an invention has previously been patented or
     sold or a publication has appeared that shows the same
     thing, it is not patentable.
PATENTS                                               Page 2 of 3


1.3  Second, an invention must be "useful" meaning it must have
     some utility.  For example, chemical companies sometimes
     discover a new chemical compound that has no readily
     apparent use.  However, the company may try every imaginable
     use to find a utility for the compound in order to get a
     patent issued.  Then later on, this patent could be of value
     to the company for some future, still different use of the
     compound.

1.4  Third, a critical issue in patent law, is the interpretation
     of what is meant by "nonobvious."  A method for
     understanding the meaning of nonobvious as it applies to
     patents, is to mentally imagine a hypothetical person who
     existed at the time that the invention was made.  This
     individual should have the ordinary skill and intelligence
     in the particular art.  This imaginary person has been
     educated and applies the ordinary principles of the
     technical field or art in a routine manner, and could be
     expected to do ordinary work in this field.

     Once this hypothetical person is created, it is necessary to
     examine the closest prior art, such as other previous
     patents, all prior printed publications that can be found
     and the available data existing on whatever has been sold.
     Everything is then presented to the person for review and
     asked what is the difference between the proposed invention
     and what has previously existed.  Then it is determined,
     would it have been obvious to this hypothetical person at
     the time when the invention took place to have made those
     differences.

     If it would have been obvious for the hypothetical person to
     make those changes, the patent would be denied.  However, if
     the invention has differences that are above and beyond the
     exercise of ordinary skill, it is entitled to a patent.
     Inventive skills have indeed been exerted, not just normal,
     routine skills.


2.0  Documenting the Development of an Idea or Invention

2.1  Keep an accurate record of your idea or invention in a
     record type notebook that is bound so that pages cannot be
     inserted or removed without detection.  A separate book
     should be used for each different invention.

2.2  Date the beginning of every daily entry and sign or initial
     every page.

2.3  Cross out changes or errors and initial them.  Never erase.

2.4  When the notebook is complete, describing your invention in
     detail, have it notarized and witnessed by two parties who
     understand the basic concepts of the invention.
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2.5  Store all separate, related papers and drawings with the
     notebook.  Have these notarized as well.

2.6  Prepare a preliminary write-up for a description of your
     invention, stating what it does, how it functions, why it is
     new, how it is better than similar inventions (or if it is
     unique) and any other pertinent facts and data.

2.7  Check as many sources as possible to convince yourself that
     your idea is indeed new and patentable.


3.0  Patent Application

3.1  At this stage, the company's patent attorney will review the
     invention disclosure.  The attorney will work from your
     written description, drawings and verbal statements.

3.2  The attorney will then proceed with a patent search to see
     if there are any other existing inventions that have
     anticipated your invention or ideas.  If favorable, the
     attorney will then proceed with the patent application
     process.