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Patent infringement is a complicated problem that involves court expenses, financial losses, and damages. Beyond financial implications, a company’s reputation can suffer greatly if it is found guilty of patent violations.
A well-known instance of patent infringement is the legal dispute between Apple and Samsung. In this dispute, Apple accused Samsung of infringing many patents relating to various aspects and operations of devices as well as illegally mimicking the design of its iPhone and iPad. The court ultimately ruled in favour of Apple and found Samsung guilty of violating certain patents after a protracted legal struggle. Samsung was consequently required to compensate Apple for $539 million in losses.
What is patent infringement?
Importing, manufacturing, selling, using, or importing a patented product or method is considered infringement. It is comparable to taking an invention without paying for it. Patents are issued to innovators to prevent others from copying their original concepts and achievements.
For a fixed amount of time, often 20 years from the filing date or priority date, patent holders have the exclusive right to restrict anyone from using, producing, or selling their invention. Patent infringement can result in expensive legal battles and harm to businesses. Before creating or marketing a new product, it is critical to thoroughly search for existing patents and understand the breadth of their claims to avoid patent infringement.
Patent infringement is classified into three types: direct, indirect, and willful.
1. Direct infringement – This type of infringement happens when someone uses, manufactures, sells, or imports a product or procedure covered by a patent without the authorization of the patent owner. Direct infringement can be of two types: literal infringement and non-literal infringement.
(i). Literal infringement – When an infringing product or procedure incorporates all of the elements of a patented invention.
(ii). Non-literal infringement – Also known as infringement under the theory of equivalents, arises when an infringing product or procedure performs essentially the same function substantially as the copyrighted invention to accomplish the same result dramatically.
2. Indirect patent infringement – This happens when someone contributes to or causes another person to infringe on a patent. Indirect patent infringement can occur in two ways: contributory infringement and induced infringement.
(i). Contributory infringement – When someone supplies a component or product specifically designed to be utilized in an infringing product or method.
(ii). Induced infringement – When one person intentionally encourages or convinces another to commit infringement.
3. Willful infringement – A legal phrase that describes a circumstance in which someone knows and purposefully infringes on the intellectual property rights of another person, such as a patent, copyright, or trademark. The term “willful” suggests that the infringing party knew or should have known that their conduct was infringing, but they proceeded further nonetheless.
Willful infringement can have substantial legal ramifications. If a court determines that an infringing party acted deliberately, the court may award the plaintiff increased damages or issue an injunction to prohibit the infringing action from continuing. Willful infringement may even result in criminal punishment in rare situations.
How can you avoid infringing others' patents?
To avoid patent infringement, you must have a comprehensive IP strategy that is closely linked to your own product development and commercialization strategy. During the various stages of the product lifecycle, different types of patent analyses can help mitigate this risk. Some of these are:
1. Search for patent invalidity – This should be done before launching a product or service to ensure that the patent is not infringed upon. A patent invalidity search is a detailed examination of the patent’s claims and specifications to find potential flaws or previous art that could render the invention invalid. This should be done as early in the product development process as possible.
2. FTO (freedom to operate) search – Before presenting a new product or service to the market, an FTO search should be done. The search is conducted to find existing patents that may preclude the corporation from selling or promoting the product. This should be done prior to the product’s introduction, ideally before investing considerable resources in its development.
3. Understanding patent claims – A thorough understanding of patent claims is essential for developing a good patent application and defending against infringement claims. This should be done during the patent application process to ensure that the claims are wide enough to protect the invention adequately.
4. Doctrine of Equivalents (DOE) – The DOE can be useful when an invention is comparable but not identical to a patented invention. In such circumstances, the DOE may file an application to determine if the non-identical innovation violates the patent. To avoid any infringement difficulties, this should be considered throughout the product development stage.
5. Patent licensing – Obtaining a license from a patent holder is required in order to legally use their patented technology. This should be done prior to utilizing the technology to avoid potential infringement issues.
It is critical to conduct these searches and considerations in order to avoid legal complications that may occur as a result of patent infringement.
Conclusion:
Patent infringement is a significant problem that can significantly impact enterprises. Understanding the various types of infringement and how to avoid them can assist people and organizations in protecting their products and avoiding costly legal fights. Businesses may make informed judgments and avoid infringing on existing patents by conducting timely IP research and analysis.
