Patent infringement: Overview, definition, and example
What is patent infringement?
Patent infringement occurs when a person or entity makes, uses, sells, or offers to sell a patented invention without permission from the patent holder. A patent grants the holder exclusive rights to an invention for a set period, typically 20 years, allowing the inventor to prevent others from exploiting the invention without authorization. When these rights are violated, the patent holder can take legal action against the infringing party. Patent infringement can involve unauthorized use of a product, method, or design that is covered by a granted patent.
For example, if a company manufactures a product that uses a patented technology without licensing the patent, it is committing patent infringement.
Why is patent infringement important?
Patent infringement is important because it ensures that inventors and businesses can protect their intellectual property, encouraging innovation by providing legal protection for new ideas. Patent holders rely on their exclusive rights to recover the costs of research and development, and infringing on these rights can lead to significant financial losses. When patent infringement occurs, it can have serious legal and financial consequences, including compensation for damages, injunctions to stop further infringement, and even criminal penalties in some cases.
For businesses, patent infringement can result in costly legal battles, loss of market share, and reputational damage. For inventors, enforcing patent rights is critical for maintaining control over their innovations and ensuring they can capitalize on their inventions.
Understanding patent infringement through an example
Imagine a tech company develops a new type of smartphone screen that is covered by a patent. Another company, unaware of the patent, begins manufacturing and selling a similar smartphone screen that uses the same technology. The patent holder discovers the infringement and files a lawsuit against the second company, alleging patent infringement. In this case, the second company has violated the patent holder's exclusive rights and could be ordered to stop production, pay damages, and possibly destroy the infringing products.
In another example, a pharmaceutical company holds a patent on a specific drug formulation. A generic drug manufacturer begins producing and selling the same formulation without a license, even though the patent is still in force. The pharmaceutical company can take legal action for patent infringement to protect its intellectual property and market position.
An example of a patent infringement clause
Here’s how a patent infringement clause might appear in a licensing agreement:
“The Licensee agrees not to infringe upon any patents held by the Licensor and shall promptly notify the Licensor of any suspected patent infringement. In the event of a third-party patent infringement, the Licensee shall cooperate with the Licensor in any legal action to protect the Licensor's intellectual property rights.”
Conclusion
Patent infringement is a critical issue in protecting intellectual property, as it ensures that inventors and businesses can retain control over their innovations and receive financial compensation for their efforts. By enforcing patent rights, patent holders can prevent unauthorized use and secure their investments in research and development. For businesses and individuals, understanding the implications of patent infringement is essential for avoiding legal consequences and respecting others' intellectual property.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.