At our Defend Innovation campaign, we have proposed a number of reforms including fee - shifting and an innocent
infringer defense.
In addition to the harsh limitations on damages that you mention, another consequence of the absence of notice that you overlook is that it permits any defendant to assert an innocent
infringer defense — a defense that would very clearly prevail, on the facts of this case.
The proposed fixes include shorting the length of software patents, requiring running code to be included in patent applications, and codifying an innocent
infringers defense.
Not exact matches
The
defense bar then adopted the «troll» smear so
infringers could play the victim card.
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.
The Federal Circuit squarely addressed the issue in its recent In re Micron Tech opinion, finding that TC Heartland qualifies as a change - of law and thus an alleged
infringer's
defense of improper venue has not been waived simply through the failure to raise the
defense pre-TC Heartland.5 However, the Federal Circuit also warned that these same venue challenges are still vulnerable to rejection by other means.
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.
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.
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 prevailing policy consideration among those in support of the laches
defense is that the
defense protects alleged
infringers from economic prejudice and prevents those who would «lie in wait» from benefitting from the efforts of good faith manufacturers.
ACI suggests that, contrary to being the last bastion of the good - faith
infringer against the greedy patent troll, laches may actually create a perverse incentive for industry juggernauts to drag smaller, poorer patentees through endless negotiations for the purpose of claiming a
defense of laches once those negotiations fall apart.
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.
In sum, without the
defense of laches, patent owners can sit and wait for time to destroy the evidence an alleged
infringer needs to defend herself.