Patent Infringement Lawsuit: Your Legal Options

A patent grants the inventor exclusive rights to their invention for a specified period, typically 20 years from the filing date for utility patents. Patent infringement occurs when these exclusive rights are violated. The patent holder must demonstrate that the accused product or process falls within the scope of the patent claims. This requires detailed technical analysis and often expert testimony to establish infringement. Courts examine whether the accused device literally infringes the patent or infringes under the doctrine of equivalents, which provides broader protection when products perform substantially the same function in substantially the same way.

Patent infringement lawsuits must be filed in federal district court because patent law is governed exclusively by federal statute. A patent infringement lawsuit can be brought in any federal district where the defendant resides or has committed acts of infringement. The choice of venue can significantly impact litigation strategy and outcomes. Certain federal districts, such as the Eastern District of Texas and the District of Delaware, have developed specialized expertise in patent cases. Understanding venue rules helps plaintiffs select appropriate forums for their disputes.

The complaint must identify each patent allegedly infringed by its patent number and title. The plaintiff must describe the accused product or process with sufficient detail to put the defendant on notice of the infringement allegations. Under Federal Rule of Civil Procedure 8, the complaint must contain a short and plain statement of the grounds for jurisdiction and the claims. Many patent complaints include detailed technical descriptions and claim charts mapping the accused product to specific patent claims. Courts have become stricter about pleading requirements, so comprehensive and well-supported complaints are essential for avoiding early dismissal.

Discovery is a lengthy and expensive phase where both parties obtain documents, technical data, and testimony from the other side. The plaintiff typically seeks evidence showing that the defendant knew about the patent and intentionally infringed it, which can support enhanced damages. The defendant seeks evidence challenging the patent's validity or demonstrating non-infringement. Expert discovery is particularly important in patent cases, as technical experts provide opinions on claim interpretation, infringement, and validity. This phase often lasts 18 to 24 months and represents a substantial portion of litigation costs.

Prior art references are frequently used to challenge patent validity by demonstrating that the invention was not novel or was obvious. The defendant argues that existing patents, publications, or products disclosed the claimed invention before the patent application filing date. Obviousness arguments assert that the invention would have been obvious to someone skilled in the relevant technology. Prosecution history estoppel may also limit the patent's scope if the applicant made certain arguments or amendments during prosecution. These defenses require detailed technical analysis and often expert testimony comparing the patent claims to prior art references.

A defendant may argue that their product or process does not infringe the patent claims, even if the patent is valid. This defense requires careful claim interpretation and technical analysis of the accused product. The defendant may argue that the accused product lacks one or more elements required by the patent claims or performs those elements differently. Design-around strategies, where the defendant modifies their product to avoid infringement, can support non-infringement arguments. patent infringement litigation often hinges on these technical distinctions between the patent claims and the accused product.

Patent damages are typically calculated using either the lost profits method or the reasonable royalty method. Lost profits require proving that the patent holder would have made additional sales but for the defendant's infringement. This method requires establishing a causal nexus between the infringement and lost sales. The reasonable royalty method calculates damages based on what a willing licensor and licensee would have agreed to pay for a license. This approach uses the Georgia-Pacific factors, which consider factors such as the established royalty rate for similar licenses, the profitability of the patented product, and the nature of the technology. Courts have become more rigorous in analyzing damages calculations, requiring detailed economic evidence and expert testimony.

An injunction is an equitable remedy that prohibits the defendant from continuing to infringe the patent. Preliminary injunctions may be granted early in litigation if the plaintiff demonstrates a likelihood of success on the merits and irreparable harm. Permanent injunctions are issued after a final judgment of infringement. The Supreme Court's decision in eBay Inc. V. MercantileExchange, LLC established that injunctions are not automatic and require consideration of traditional equitable principles. Injunctive relief can be more valuable than damages because it prevents continued infringement and market harm. patent counseling helps patent holders understand the strategic value of injunctive relief in their specific circumstances.

Willful infringement occurs when the defendant knew of the patent and deliberately infringed it despite that knowledge. Enhanced damages up to treble damages may be awarded in willful infringement cases. To establish willfulness, the plaintiff typically must show that the defendant had actual or constructive knowledge of the patent and acted with deliberate disregard for the patent holder's rights. The defendant's failure to obtain an opinion of counsel regarding non-infringement can support willfulness findings. However, recent case law has made establishing willfulness more difficult, requiring clear and convincing evidence rather than a preponderance of the evidence.