Imagine your company spends two years developing a revolutionary new software application. Your engineering team builds the entire architecture from scratch. You launch the product to great success. Six months later, a letter arrives in the mail from a competitor claiming you infringed upon their patent. You never looked at their code or copied their designs. Can you still be held liable?
The short answer is yes. Patent infringement consists of unauthorized making, using, offering for sale, or selling any patented invention within the United States, or importing into the United States any patented invention during its term.
Direct infringement operates as a strict liability offense. This means liability can be imposed even when the accused party was wholly unaware of the existence of the patent when it made and sold its product.
Someone can even be held liable for patent infringement when they independently develop the patented technology. This reality frequently catches corporate leaders off guard. Navigating the complex terrain of patent law requires a proactive approach to protect the financial investments you pour into research and development.
Secure Your Market Position
Strict Liability and Patent Law: Direct vs. Indirect Infringement
Under U.S. patent law, there are generally two distinct theories of infringement: direct infringement and indirect infringement. Direct infringement occurs when someone without authority makes, uses, offers to sell, or sells any patented invention within the United States. Direct infringement features absolutely no intent requirement. In other words, ignorance of the patent does not serve as a defense.
Consider the historical supply chain of a bicycle. Years ago, a manufacturer would make a bike and sell it to a distributor, who then sold it to a local shop. If the bicycle infringed a patent, the patent holder could sue any company in that supply chain for direct infringement.
The local bike shops could still be found liable for direct infringement even if they had no understanding of what patents covered the bikes they sold. Today, this same principle applies to complex modern technologies. An innocent mistake can still result in costly litigation.
At Patterson Thuente, we partner with businesses to identify and mitigate these vulnerabilities. We conduct clearance searches and freedom-to-operate analyses to help you understand the landscape of existing patents before you bring a product to market. Understanding your position and options allows you to act deliberately, rather than reactively. We strip away the confusing legal jargon to provide straightforward advice tailored directly to your commercial objectives.
Navigating Indirect Infringement
The courts apply a different standard for indirect infringement, which involves inducing or contributing to another party’s infringement. These forms of indirect liability require both knowledge of the consequences they cause and the fact that those consequences will result in patent infringement. The U.S. Supreme Court held in Global-Tech Appliances, Inc. v. SEB S.A. that induced infringement requires knowledge that the induced acts constitute patent infringement.
Furthermore, the Supreme Court clarified in Limelight Networks, Inc. v. Akamai Techs., Inc. that a party cannot be liable for indirect infringement without a threshold showing of direct infringement. Where there has been no direct infringement, there can be no inducement of infringement.
This ruling provides accused infringers with a stronger noninfringement position when contending with method claims involving terms that necessarily implicate multiple actors. We analyze these technical nuances to help you build a robust and defensible legal position.
Protect Your Business Assets
Steps to Protect Your Company from Unexpected Claims
Modern markets move fast. Competitors actively monitor international patent filings and product releases. They utilize advanced reverse engineering techniques to dissect new technologies in a matter of weeks. To navigate this environment, we offer a structured framework designed to safeguard your corporate assets.
- Identify Risks Early: We evaluate your current products to uncover potential overlaps with existing intellectual property. We help clarify the strengths and gaps in your current portfolio and identify potential risks.
- Codify Your Innovations: A strong offense serves as a great defense. We help you secure your own patents to define the boundaries of your market. Establishing a clear legal framework turns an abstract engineering concept into a quantifiable financial asset.
- Manage the Portfolio: We actively monitor your portfolio to see that your legal framework continually supports your overarching business goals. We track competitor filings to identify potential infringement early and spot new licensing opportunities.
A clear strategy removes the guesswork from corporate innovation. Partnering with the right legal team provides your organization with profound peace of mind.
Guidance for Early-Stage Innovators
Building a Strategic Legal Defense
An accidental infringement claim can stall your momentum and drain valuable corporate resources. While you cannot stop every competitor from sending a demand letter, you can build a legal foundation that minimizes your vulnerability. Taking proactive control of your intellectual property changes how your business operates. You shift from a passive approach to actively defining the boundaries of your market.
Your company invested massive resources into developing its core technology. You deserve a legal framework that properly respects and defends that initial investment. We combine legal expertise with technical knowledge and business insight. Our attorneys translate your complex technical achievements into robust legal boundaries. Take full ownership of your ideas and secure the business you built.
Take Control of Your Intellectual Property
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. Accessing this information or contacting Patterson Thuente does not create an attorney-client relationship. You should not act upon this information without seeking professional counsel from a licensed attorney regarding your individual situation. Past results do not guarantee future outcomes.