Legal Definitions - utility

The term "utility" has several distinct meanings in a legal and general context:

• General Benefit or Usefulness

  In its broadest sense, "utility" refers to the quality of something being useful, beneficial, or serving a valuable function, often in a way that contributes positively to society or achieves a worthwhile purpose.

  • Example 1: A non-profit organization develops a new mobile application that connects food banks with restaurants having surplus food, significantly reducing food waste and increasing donations to those in need.

    Explanation: This mobile application demonstrates utility because it serves a beneficial function by efficiently addressing food waste and hunger, thereby providing a valuable service to society.

  • Example 2: A city council debates the utility of investing in a new public park versus expanding a local library.

    Explanation: Here, "utility" refers to the relative benefit or advantage that each project would provide to the community. The council is assessing which investment offers greater overall usefulness and positive impact.

• In Patent Law

  In the context of patent law, "utility" is one of the fundamental requirements for an invention to be granted a patent. It means the invention must be capable of performing a specific function or achieving a claimed result. It does not necessarily mean the invention must be superior to existing solutions, only that it must be functional and serve a practical purpose. When calculating damages for patent infringement, "utility" can also refer to the specific advantage or benefit a patented invention offers compared to older, non-patented methods or products that aimed to achieve similar outcomes.

  • Example 1 (Patentability - Functionality): An inventor seeks a patent for a new type of self-cleaning solar panel coating that repels dust and water, maintaining efficiency without manual cleaning.

    Explanation: This invention demonstrates utility because the coating performs a specific function (repelling dust and water) and achieves a claimed result (maintaining solar panel efficiency without manual cleaning), making it eligible for patent consideration, assuming it also meets other requirements like novelty and non-obviousness.

  • Example 2 (Patentability - Functionality): A pharmaceutical company develops a new drug compound that successfully lowers blood pressure in clinical trials.

    Explanation: The drug compound possesses utility because it is capable of performing a defined function (lowering blood pressure) and achieving a specific result (demonstrated efficacy in trials), fulfilling a key requirement for patent protection.

  • Example 3 (Damages - Benefit over prior art): A competitor infringes on a patent for a novel manufacturing process that significantly reduces the energy consumption required to produce a certain material compared to previous methods.

    Explanation: In calculating damages for the infringement, the "utility" of the patented process would be its distinct advantage – the substantial reduction in energy consumption – over the older, non-patented manufacturing techniques. This benefit represents the value lost by the patent holder due to the infringement.

• Public Utility

  A "public utility" is a business or organization that provides essential services to the public, such as energy, communication, or transportation infrastructure. These entities often operate as regulated monopolies because it's impractical or inefficient to have multiple competing providers for such critical services. Due to their essential nature and monopolistic tendencies, they are subject to significant government oversight and regulation to ensure fair pricing, reliable service, and public access.

  • Example 1: The local internet service provider (ISP) that delivers broadband access to homes and businesses in a particular town.

    Explanation: This ISP acts as a public utility because it provides an essential service (internet access) to the public, often operates as a dominant or sole provider in its service area, and is typically subject to government regulation regarding service quality, pricing, and universal access.

  • Example 2: A regional bus transit system operated by a municipal authority.

    Explanation: This transit system functions as a public utility by providing critical transportation services that are essential for public mobility and access to work, education, and services. It operates under government oversight, often with subsidized fares, to ensure public access and reliable service.

  • Example 3: A company responsible for collecting and treating wastewater from all residences and businesses within a county.

    Explanation: This company is a public utility because it provides an essential public health and environmental service (wastewater management). It is typically regulated by local government to ensure consistent service, proper treatment, and fair fees for all users.