Legal penalties for patent infringements

| Dec 17, 2019 | Firm News

If a court finds your company guilty for infringing upon a patent, you might have to compensate the owner and cease all use of the product. Your company does not have to directly violate a license to be held liable. Simply aiding another business can lead to severe consequences.

What are some common infringements?

There are many ways to intrude on someone’s rights to a product. Some common patent infringements include:

  • Direct: This violation occurs when a business or person blatantly copies a product without permission.
  • Indirect: Purchasing parts to recreate an invention is another form of infringement. A court could also find your company guilty if you provided materials to other companies who intended to copy a patented idea.
  • Willful: A court may issue a guilty verdict if a company had the intent to copy a product and showed no regard to the patent holder’s rights.
  • Literal: Literal infringement occurs when somebody reproduces an identical replica of the product.

Lastly, if an organization created a product that has similar uses, it could still be found guilty. As long as the intended use is the same, patent holders can take legal action.

What are the potential consequences?

Generally, if the patent holder wins in court, they could receive a royalty for each product sold. If the creator can prove your company knowingly violated the law, they could be entitled to more compensation.

Defending yourself against allegations of patent infringement can be difficult. Laws around this topic can be challenging to understand if you do not have a strong background in patent law. Consider reaching out to an experienced attorney for additional help.