TheraSense will be welcomed by the patent prosecution bar and patentees, as it significantly raises the bar
for accused infringers seeking to prove inequitable conduct.
She represents patent holders and
accused infringers in disputes covering a wide range of technology, including medical devices, microprocessors, consumer products and biotechnology.
The Supreme Court's decision in TC Heartland represents a sea of change in the analysis to determine proper venue in patent cases.3 Soon after TC Heartland, the Federal Circuit provided a roadmap to determine if venue is proper in a patent case post-TC Heartland.4 However, an important question remained — may
accused infringers who failed to raise the defense of improper venue pre-TC Heartland now challenge venue post-TC Heartland.
Extending the prosecution disclaimer doctrine to IPR proceedings will ensure that claims are not argued one way in order to maintain their patentability and in a different way
against accused infringers.
Known officially as Patent Assertion Entities, they don't actually create new products, but instead make money by amassing a collection of patents and
suing accused infringers.
As the Guardian notes, MTel isn't technically a patent troll — the colloquial term for non-practicing entities, or companies that collect patents not in order to make products or services, but instead solely to collect licensing fees
from accused infringers — because it actually still uses its patented technology to operate a pager system for firefighters and paramedics.
Many accused infringers should be able to persuasively argue that their case should be transferred from the Eastern District of Texas to another district that satisfies the «TC Heartland» venue test.
Rather, as the Supreme Court has explained in a series of decisions over the past decade, the rule in patent cases should be the same as in any other sort of litigation — in this case, the equitable doctrine of laches may not be used
by accused infringers as a defense because there is a statute of limitations present to limit claims.
Depending on the reason for this effect, adoption of a specialized patent trial court might
help accused infringers but not patentees, raising broader questions about patent reform and how to measure the value of an expert court.
The PATENT Act delays discovery until certain initial trial motions (to dismiss, to change venue, or to
sever accused infringers) are resolved.
In many cases it will be difficult
for accused infringers to carry their burden of proving that the PTO would have refused to grant a claim had it known of the additional information.
Imagine this kind of «negotiation» between a troll wielding a (possibly overbroad) design patent against
an accused infringer:
Teva may well affect the Markman strategies adopted by both patentees and
accused infringers.
An accused infringer may also feel more pressure to settle if it receives an unfavorable claim construction decision or a rejection of its indefiniteness defense.
«An issued patent may have a presumption of validity, but all that means is that
an accused infringer has to show why it is invalid, and that's happened many times.»
Both types of indirect infringement require that some direct infringement occur and that
the accused infringer actually know that its actions will constitute infringement of the patent at issue.
The question before the Court was whether it was a proper defense to induced infringement that
the accused infringer had a reasonable belief that the asserted patent was invalid.
We represented
the accused infringer in patent infringement litigation in the Middle District of Florida involving ice vending machines.
With all the talk of so called «patent trolls», non-practicing entities (NPEs) and frivolous lawsuits it is important to realize that in the case of a DJ it is the party which may end up being
an accused infringer who is actually firing the first shot in litigation.
In other words,
an accused infringer may defend a suit for patent infringement on the grounds that the patent is invalid.
But that defense requires the defendant to prove, in addition to delay, that the patent owner engaged in misleading conduct that led
the accused infringer to infer that the patent owner would not enforce the patent, and the alleged infringer relied on that conduct to its detriment.
The Court's opinion in SCA Hygiene did note that
an accused infringer can still defend against a claim of infringement based on the defense of equitable estoppel.
The dissent also pointed out that the majority's decision creates a significant disincentive for patent owners (especially ones that do not compete with
the accused infringer) to act quickly upon learning of infringement.
As a practical matter, the laches defense was not often successful for
accused infringers, but it created an important check against patent owners and encouraged them to timely bring lawsuits when they believed that their patent rights were infringed.
A copyright owner may prove that an original work has been copied by first proving that
the accused infringer had access to the original work and second showing that the accused work is «substantially similar» to the original.
For
accused infringers, the costs of innovation are increased when they have little or no connection to the venue and are forced to litigate from a distance.
EFF argues in its brief that the Federal Circuit's requirement that
an accused infringer prove patent invalidity by «clear and convincing» evidence unfairly burdens patent defendants, especially in the free and open source software context.
Thus patent trolls, who are often asserting extremely broad and likely - invalid patents, are incentivized to file in the Eastern District of Texas knowing that there's another hurdle
an accused infringer has to overcome in order to win the case.