Remedies for Patent Infringement Claim

Patent issues can be complex, and the requirements for litigation, especially in the U.S., can be strict and specific. However, if someone is found guilty of patent infringement, several remedies are available to the patent owner. These include monetary relief, equitable relief, and the recovery of costs and attorneys’ fees.

Monetary Relief

The most common form of relief for patent infringement is monetary, usually in the form of compensatory damages. These damages are meant to compensate the patent owner for the financial harm they’ve suffered due to the infringement. The calculation of these damages can be complex, but generally, they may include profits lost due to the infringement or the reasonable royalties the infringer would have paid if they had obtained a license for the patent.

In certain cases where the infringement is found to be willful, the court may award up to triple the actual damages.

Here are a couple of hypothetical examples illustrating the calculation of compensatory damages in patent infringement cases.

1. Lost Profits

Suppose you own a patent for a unique, innovative bicycle design and manufacture and sell these bicycles. A competitor begins selling bicycles that infringe on your patent, significantly decreasing your sales.

You can sue for patent infringement and claim lost profits as damages. To calculate these damages, you’d need to show what your profits would have been if the competitor hadn’t infringed your patent. This might involve showing your profit margins, decreased sales after the competitor started selling the infringing bicycles, and other relevant evidence.

2. Reasonable Royalties

Imagine you own a patent for a specific type of software algorithm. Another company uses this algorithm in their software without your permission, but you don’t make or sell any products using it, so you don’t have any lost profits.

In this case, you could sue for patent infringement and claim reasonable royalties as damages. To calculate these, you’d need to determine a reasonable royalty rate for licensing your patent (which could be based on rates for similar patents in the software industry) and multiply that by the revenue the infringer has generated from their software.

3. Enhanced Damages for Willful Infringement

Suppose that in either of the above examples, evidence shows the infringer knew about your patent and copied your invention anyway. The court might consider this willful infringement, leading to enhanced damages. If the court decides to triple the damages (the maximum under U.S. law), and your actual damages were calculated to be $500,000, you could be awarded up to $1.5 million.

Equitable Relief

Equitable relief usually comes in the form of injunctions. An injunction is an order from the court directing the infringer to stop the infringing activity. A preliminary injunction may be granted early to prevent ongoing harm during the litigation process. The court may issue a permanent injunction to prevent future infringement if the patent owner prevails.

Equitable relief usually comes in the form of injunctions. An injunction is an order from the court directing the infringer to stop the infringing activity. A preliminary injunction may be granted early to prevent ongoing harm during the litigation process. The court may issue a permanent injunction to prevent future infringement if the patent owner prevails.

1. Preliminary Injunction

Let’s say you have a patent on a new medical device that you’re just starting to market. A competitor launches a very similar product that you believe infringes your patent. You’re concerned that if they’re allowed to continue selling their product while the litigation is ongoing, it could cause irreparable harm to your business — for instance, by saturating the market or harming your brand’s reputation.

In this situation, you might request a preliminary injunction. If granted, the court would order the competitor to stop selling their product until the patent dispute is resolved. It’s important to note that getting a preliminary injunction can be difficult, as you’d have to show that you’re likely to win the case and suffer “irreparable harm” without the injunction.

2. Permanent Injunction

Suppose your case goes to trial, and the court finds that your competitor infringes on your patent. One of the remedies you can request is a permanent injunction. This would order the competitor to stop making, using, selling, or offering to sell the infringing product permanently.

For example, a company named “Tech Innovations” holds a patent on a specific type of microprocessor technology. Another company, “MicroTech,” began manufacturing microprocessors that infringe upon Tech Innovations’ patent. After a successful litigation, the court issues a permanent injunction, forbidding MicroTech from further production, use, or sale of the infringing microprocessors.

However, since a 2006 U.S. Supreme Court case (eBay Inc. v. MercExchange), courts have been less likely to grant permanent injunctions in patent cases automatically. Instead, they weigh several factors, including whether the patent owner has suffered irreparable injury and whether other remedies (like monetary damages) are sufficient. So, in the real world, getting a permanent injunction can be a significant challenge.

Costs and Attorneys’ Fees

In addition to damages and injunctions, the court may order the infringer to pay the patent owner’s lawsuit costs, including attorneys’ fees. However, in the U.S., this is not common and usually happens only in exceptional cases, such as where the court finds the infringement was willful or the infringer’s conduct during litigation was particularly egregious.

1. Willful Infringement

Assume you own a patent for a particular solar panel technology. A competitor, aware of your patent, decides to use your technology without obtaining a license. After you sue for patent infringement, the court finds that the competitor willfully infringed your patent. Given the infringement’s intentional and egregious nature, the court ordered the competitor to pay your attorneys’ fees in addition to any damages.

2. Egregious Conduct During Litigation

In another scenario, let’s say you sue a company for infringing your patent on a particular type of software. Throughout the litigation process, the company continually delays proceedings, fails to provide necessary documents, or uses other tactics that unnecessarily increase legal costs. Given the company’s bad-faith conduct during the lawsuit, the court could decide to order them to pay your attorneys’ fees.

3. Exceptional Cases

In 2014, the U.S. Supreme Court case Octane Fitness, LLC v. ICON Health & Fitness, Inc. broadened the scope of what constitutes an “exceptional case” in patent litigation, making it easier for courts to award attorneys’ fees. Under this decision, a case could be considered exceptional if it stands out from others regarding the substantive strength of a party’s litigating position or the unreasonable manner in which it was prosecuted.

For instance, if a company sues you for patent infringement, but their patent issue is invalid, or your product doesn’t infringe it, the case might be considered exceptional. If you win the case, the court might order the company to pay your attorneys’ fees due to the weakness of their position.

Should I Consult a Lawyer about My Patent Issues?

If you believe your patent rights have been infringed or are accused of infringing someone else’s patent, consult with a lawyer experienced in patent law. A skilled patent attorney can help you understand your rights, navigate the complex legal landscape, and advocate for your interests.

You can connect with a highly skilled and qualified patent lawyer through LegalMatch. LegalMatch is an online legal matching service that can help you find the right attorney. Just fill out their online form, and they’ll connect you with an attorney who is experienced in handling patent issues and ready to help. Don’t wait until it’s too late – get the legal assistance you need today.