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Acquiring and Defending Patents

Defeating Patent Infringement

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There are many ways to deal with infringers. A patent infringement suit should be the last step.

Notify the Infringer

The first step is to notify the infringer by certified mail, be polite, friendly, and firm. Seek a meeting with upper management and try to iron out the problem in direct negotiations. Allow one month from the time they receive the notice for them to respond.

It is important that you understand how declaratory judgments can be used against you. If your letter to an infringer states as an absolute that they are infringing they may sue you for declaratory judgment in the jurisdiction where the letter is received. If your letter to them states that they may be infringing they probably will not be able to bring suit in their jurisdiction. It is a common tactic of large corporations to sue for declaratory judgment hoping that the inventor will fold.

Turf Warnings

If an infringer invites you to visit them to discuss the possibility of a license - exercise extreme caution when going outside your jurisdiction. Inventors have been sued shortly afterward in the infringer’s jurisdiction, costing them many thousands of dollars to defend themselves far from home. Meet on your turf.

If they haven't acknowledged your initial contact, call the president or CEO of the company and request a meeting. It is best to remain calm and allow your opponent to slowly come to terms with the fact that you are not going to tolerate theft of your intellectual property.

No one likes to admit they are wrong; the same applies to businesses. The honest companies will try to settle, but it may take several meetings and some time to convince them, typically one to two years. Dishonest companies must be shown that there is a price to be paid for their actions.

Negative Images

Companies that intentionally commit patent infringement often cut other corners. A poor implementation of your patent can severely damage your ability to market to others if potential customers perceive the invention as being flawed as a result of the infringers marketing of a poor design.

You may be entitled to additional compensation as a result of such damage. Identify deficiencies in their implementation of the patent's concepts. It is possible to exploit a situation where they have product liability exposure due to poor engineering. My experience is that at least half of the parties that infringe my patents produce designs that are hazardous.

Expertise

You are an expert in the technology; your patent(s) are evidence of that expertise. You can sell your expertise to other parties who have been damaged or who may be damaged by an infringer’s misapplication of the technology. This will help differentiate your design from the poor implementation offered by the infringer and generate cash flow while leaving the infringer with a serious customer relation’s problem.

Referring your client to other clients that have the same problems is also an effective tactic. My experience is that companies that have defective product are influenced by the fact that many other purchasers of the product have the same problems. There is a good chance that one or more of the companies that have been victimized will demand that the infringer fix their problems at no cost. They might even sue the infringer for damages. The infringer is going to get very tired of dealing with irate customers. This will pressure them to settle your claim.

Take the High Road

Do not disparage the infringer in any communication you have with end users. Confine your statements to issues about the problems with implementation of the product that they purchased. If you feel the product is poorly engineered be careful about how you impart that to the customer. Do not tell the customer the engineering is bad, tell them that there are considerable differences between different suppliers and that xyz company’s implementation is much better. The purpose of this approach is to help the customer come to his or her own conclusions concerning the quality of the infringers product without opening the door for the infringer to sue you.

Know your Enemy

Knowledge of the market place is a valuable tool. If you know for whom the infringer is bidding jobs, you can contact those people and inform them that you may seek an injunction to stop the patent infringement. Most manufactures want to know about infringing products, both to limit their own liability for selling or using a product that infringes and to avoid any consequential damages they might suffer as a result. In many cases, companies will not purchase product from a company they believe is infringing to avoid being involved in the problem. Seek legal advice before you start notifications because the wording of the notification is important to avoid the infringer suing you in the jurisdiction where the notice was given.

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