If you're an engineer or designer working on a product, the last thing you want is for your hard work to be copied without your permission. However, this is an unfortunate reality of the market. This is why it's important for every entrepreneur to have a basic understanding of patent law so that they can protect their ideas from being stolen. Here are some steps you should take if you're hit with a patent infringement suit.
1. What is patent infringement?
Thomson & Thomson defines patent infringement as the "unauthorized use of a patented invention without permission from the patent owner." In other words, patent infringement occurs when a party sells, makes, or uses a patented invention without permission from the patent owner.
Essentially, if someone has invented a great new invention, they have the right to protect their invention against infringement by others. However, when this invention is put to use by another party, this right of protection no longer exists. To prevent infringing parties from stealing your ideas, all you need to do is have an understanding of patent law.
Whether or not to purchase a business patent can be a contentious issue. A lot of people argue that obtaining a business patent is a waste of money. However, on the other hand, the effectiveness of patents can mean the difference between success and failure, and with proper precautions taken in the right legal channels, there is a path to finding a mutually beneficial patent license.
As with all rights and remedies, the legal landscape for obtaining a license to use someone else’s inventions, whether for personal or commercial use, is always going to be impacted by their product’s market impact. Here is an overview of where patents fall within the technological development cycle, utilizing the Thomson Reuters invention valuation model to find the expected market value of b2b patents.
Since patents cover a concept, not a physical product, it might be advantageous to postpone patent litigation until the idea has gone through a few additional iterations. Patents also tend to flatten out the curve of innovation as companies have more resources to explore their innovations without fear of infringing others. In other words, it’s a defensive tool to protect your idea from being copied.
Once an idea is made public, therefore, the question inevitably arises of who owns the right to that idea once it has been publicized? Generally, the company that is creating the invention receives the first claim to the invention.
2. How to avoid patent infringement
When you’re creating your own product, it’s important to protect your intellectual property. You don’t want someone stealing your idea and capitalising on it while you’re still trying to get your product off the ground. It’s important to understand what constitutes an idea, and how ideas can be patented.Building off of a well-known idea is one example of an idea, but there are other ideas of varying content. One common idea is the SMART concept. This abstract idea simply means having a modular form factor that can be easily manufactured.
Patents can be broken down into three categories: Proprietary, Declared, and Patented. The patent can define what your product is and what it can do. Some common examples would be the invention of camera lens or the invention of an operating system. Often, products are protected by patents. That said, there are exceptions to this rule, as proven by the Grokster case.
Applying for a patent can be time-consuming, and it’s tempting to simply pay a fee to a patent lawyer to avoid the need for an invention assessment (IE, the assessment of whether the invention is reasonable). However, a properly researched patent application costs money. As with most human endeavors, licensing an invention is far cheaper.
A patent can only be enforced against infringers outside of the patent territory. This is an important concept that needs to be understood before any legal action is taken. An infringer can only be sued in the country where the infringing product was made. However, if you receive a threatening letter from a patent-holder in another country, it would be in your best interest to investigate this claim prior to starting legal action.
Once you decide to sue, you may find yourself facing outlandish court charges such as:
A lawsuit is a substantial cost to both you and the patent-holder. As with any legal matter, the parties should attempt to reach a settlement which is fair to both sides. It’s also important to remember their goal in bringing a lawsuit: protecting their patent.
3. What to do if you're hit with a suit for patent infringement
If you’re hit with a patent infringement suit, the first thing to do is talk to your lawyer. Your lawyer will help you decide whether you want to settle or fight. You’ll want to have a conversation with the person suing you to see if you can reach an agreement.Of course, reaching an agreement is easier if you can admit to your guilt and take responsibility for your act.
If your goal is to build a legitimate company that will last for years to come, needlessly escalating a patent infringement lawsuit could be a waste of time. Speak with your lawyer about your preferred course of action. As they say, “the best defense is a good explanation.”
So, if finding an answer to this question does not immediately resolve your problem, what does?
Next, talk to a patent expert to get an unbiased opinion on patentability. Before you make a purchase of an automatic teacup watering system, you should first speak with an electrical engineer or a designer patent attorney. Having an individual with these specialties judge whether your invention is eligible to patent will allow you to both avoid costly litigation and to receive a correct verdict.
Sometimes, it’s hard to determine whether a hatchet is square or not. Fortunately, a patent lawyer will also do his or her best to help you determine whether your invention is patentable, even if you don’t yet know how to apply for a patent.
Naming your product after yourself is a trendy trend today, and many entrepreneurs choose to use this strategy despite patent laws prohibiting the practice. Be careful, however, because trademark laws differ from patent laws in many ways. Trademark law can be a useful legal tool to protect your brand, but you must also know its limitations. Sometimes, the best strategy simply choosing a good name is all you need to maximize your legal protections in your product name.
Finally, don’t assume just because you were the first to use a certain term that it automatically means you own the term.
4. If you have been sued for patent infringement, what should you do?
If you’re ever served with a lawsuit for patent infringement, there are two things you can’t do: first, don’t ignore the lawsuit. Ignoring a lawsuit can make it seem like you have something to hide or that you’re guilty. Second, don’t panic.In most cases, the lawsuit is only a formality. You avoid an expensive and stressful trial by simply answering "Yes" or "No" to the questions below. You need to know these legal facts before you respond.
How Does Patents Help Entrepreneurs?
Patent law is designed to encourage innovation. By protecting new ideas, you're also helping your potential future customers. Instead of having to reinvent the wheel, you’re giving your business an advantage over competitors.
For this reason, it's extremely important that you accurately and thoroughly answer each of the following questions prior to responding:
Does the defendant own the patent? Do you have a license to the idea? Will other people be able to utilize the patented idea? Is the defendant using this idea in some way that infringes your copyright? Is the defendant using this idea in a way that is materially different than your other uses of the same idea?
If the defendant has the patent, you have the right to receive a fair and reasonable royalty for the non-infringement use. If you use the idea non-infringingly, you have made a non-infringement exception to the doctrine of implied license. This means that if other people are going to be using something similar to what you’ve protected, you have licensed your idea to them without permission from the party who owns the copyright. So, if someone else is doing something similar to what you've done, you don't need to worry that a lawsuit will rob you of the profits you were planning on making.
If you are using the idea non-infringedly, you have the right to protect your idea from violation by others. You can choose to grant a limited license or not to provide a license.
5. In short, as an entrepreneur, it's important to know how patents work and how they affect your business. Here's why:
If you operate a business that relies on intellectual property, you should know how patents work and how they affect your business. Patents give you the right to prevent others from making, using, selling, or importing your patented invention.It does this by providing a defense against copyright infringement, patent marketing, and product infringement lawsuits.
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