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Indirect Infringement Defenses & Counterclaims. Class Notes: March 20, 2003 Law 677 | Patent Law | Spring 2003 Professor Wagner. Today’s Agenda. Indirect Infringement Defenses & Counterclaims. Indirect Infringement. 35 U.S.C. § 271
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Indirect InfringementDefenses & Counterclaims Class Notes: March 20, 2003 Law 677 | Patent Law | Spring 2003 Professor Wagner
Today’s Agenda • Indirect Infringement • Defenses & Counterclaims Law 677 | Spring 2003
Indirect Infringement • 35 U.S.C. § 271 • (b) Whoever actively induces infringement of a patent shall be liable as an infringer. • (c) Whoever offers to sell or sells within the United States or imports into the United States a component of a patented machine, manufacture, combination or composition, or a material or apparatus for use in practicing a patented process, constituting a material part of the invention, knowing the same to be especially made or especially adapted for use in an infringement of such patent, and not a staple article or commodity of commerce suitable for substantial noninfringing use, shall be liable as a contributory infringer. Law 677 | Spring 2003
Indirect Infringement • Contributory Infringement • CR Bard v Advanced Cardio. Sys. (Fed. Cir. 1990) • Patent claim: a method of using a catheter for coronary angioplasty • ACS: sold a catheter suitable for use in angioplasty procedures • The court notes three separate factual possibilities for use of the ACS catheter. (Why is this important?) • Why does the court suggest summary judgment of infringement is inappropriate? • What do you make of the ‘public interest’ discussion? Law 677 | Spring 2003
Indirect Infringement • Contributory Infringement • 35 USC 271(c): elements of CI . . . • “offer[] to sell or [sale]” (Why not ‘use’?) • “component of a patented [invention]” • “constituting a material part of the invention” • “knowing [the component] to be especially made or especially adapted for use in an infringement” • “and not a staple article or commerce or commodity … suitable for substantial noninfringing use” Law 677 | Spring 2003
Indirect Infringement • Inducement Infringement • Hewlett-Packard v Bausch & Lomb (Fed. Cir. 1990) • What acts create the allegation of indirect infringement? • Inducement infringement: • Direct infringement • Active intent to spur infringement • Why does the court determine that there is no infringement? • Why does the indemnification clause suggest inducement? Law 677 | Spring 2003
Defenses & Counterclaims • Defenses / Counterclaims to patent infringement (35 USC § 282): • Noninfringement • Patent invalidity • Patent unenforceability: • Inequitable conduct • Patent misuse / antitrust • Limits on patent rights: • First sale and implied license • First inventor defense • Experimental use exception Law 677 | Spring 2003
Defenses & Counterclaims • The Importance of Declaratory Judgments • 28 USC § 2201: The Declaratory Judgment Act • Requires ‘actual controversy’ to create jurisdiction (‘reasonable apprehension of suit’) • Requires ‘sufficient interest’ in the outcome • Consider the relationship between the defenses to infringement and the availability of DJ actions • What does this suggest about the strategic aspects of the relationship between patentees and infringers? Law 677 | Spring 2003
Defenses & Counterclaims • The Importance of Declaratory Judgments • The traditional model for litigation: • Expected gains from litigation > Expected costs • [% chance of win] x [rewards] > [litigation costs] • In the patent context, the potential for patent invalidity/unenforceability adds a factor to the equation: • For patentee: • [% chance of win] x [rewards] > [litigation costs] + [% chance of invalidity] x [costs of invalidity] • For infringer: • [% chance of invalidity] x [rewards from invalidity] > [% chance of loss] x [costs] + [litigation costs] Law 677 | Spring 2003
Next Class • Defenses & Counterclaims II • Inequitable Conduct • Patent Misuse & Antitrust • First Sale & Implied Licenses Law 677 | Spring 2003