By Saria Tseng and John Schnurer
ACC Docket 60 October 2009By Saria Tseng and John Schnurer ACC Docket ACC Docket 60 60 - - PDF document
By Saria Tseng and John Schnurer ACC Docket ACC Docket 60 60 - - PDF document
By Saria Tseng and John Schnurer ACC Docket ACC Docket 60 60 October 2009 October 2009 Winning Global Patent Litigation Strategies NO MATTER YOUR industry or company, 21 st there is a competitor who is busy trying to take for the
21st
for the
Global Patent Litigation Strategies
century
NO MATTER YOUR
industry or company, there is a competitor who is busy trying to take market share from you. To successfully counter such at- tacks, companies must seek ways to gain the advantage
- ver their competitors. Patent
litigation is one way to garner
- r protect market share. It
can be used, for example, to enjoin the manufacture, sale
- r use of a competitor’s prod-
ucts, exclude their impor- tation or increase their cost basis. Patent litigation can even be used to discourage a customer from designing in a competitor’s products. A fear of getting involved in a downstream lawsuit stemming from patent lit- igation against the competitor — and the additional effort required to secure indemnity from them — often discourages a customer from designing in the product. Whether you find yourself on the offensive or defensive side
- f a patent battle, there are a
variety of approaches avail- able to help you win the
- war. Here are a few rules
- f thumb to consider in
implementing a suc- cessful global patent litigation strategy.
Winning
ACC Docket 61 October 2009Choose a Legal Forum
Effective patent litigation strategies — whether offensive, defensive or both — should not be limited to your local court. Rather, they should reflect the realities of the global economy. You and your competitors generate signifi- cant revenue in markets around the world and perhaps acquire patent rights in those markets. Using other legal forums available in your home country or other countries, including courts and administrative agencies, can give you an advan-- tage. Consider legal forums that satisfy one or
- place;
- uct occurs;1
- products occur; and
- Use of Counterclaims
- battle. Moreover, with an additional offensive
- Declaratory judgment of non-infringement;
- Declaratory judgment of unenforceability (whether
- based on patent misuse, inequitable conduct, license,
- Antitrust-based claims;
- Trade secret misappropriation; and
- Offensive patent infringement claims based on
- your patent.
Attack or Defend on Multiple Fronts
When planning an infringement suit, take ad- vantage of your ability to dictate the place, time and pace of the war. If you have the resources and wherewithal to open more than one front, adopt a “shock and awe” strategy and file suits in multiple forums, such as in the United States International Trade Commission (US ITC) with a collateral case in federal court in a favorable- jurisdiction. But respondents (the name for
- bjectives.
- Qualcomm. In May 2005, Broadcom filed a
- f new models of cell phones containing the infringing
- Systems. She is an
- f China, Taiwan. She
- ffice. He litigates
- counseling. Schnurer
- ping your litigation strategy. On the global front, court pro-
Know Your Goals
One of the most common mistakes that companies make is not defining objectives among the management team at the beginning of a patent litigation. Only when your objectives are defined, understood and shared by those whose operation will be most impacted by the- utcome (such as sales, marketing and engineering),
- f litigation, designing around or agreeing early on to pay a
- n your competitor’s business outlook.
Know Yourself and Your Competitor
Know your own products and services — technically, geographically and financially. Having a thorough under- standing will help you evaluate your risk before entering the fray. Evaluate exposure in your key markets for your high-volume or high-return product lines, and which stra- tegically important products are vulnerable to attack. The following are things you should learn about yourself: Operation of your product;- Whether the underlying technologies incorporated
- in your products are fundamental building blocks for
- Viability of alternative designs of your product, includ-
- ing time, opportunity cost and product acceptance;
- Volume and profitability of your product; and
- Whether your products practice your own patents.
- How you coordinate and interview your sales, finance
- and engineering teams.
- filings. By targeting the most profitable and strategically
- ne of those countries would likely make more sense.
Know the Forum’s Trend and Tendency
When planning your global patent strategy and where to file patent claims, consider the historical data of the forum’s experience and trends in patent litigation, such as whether the forum tends to award patentees or invalidate patents, as well as its inclination in awarding a sizable monetary damage and/or injunctive relief. For example, if you are defending against a competitor’s patent that has parallel foreign patents, consider filing a nullity action (also known as an invalidity or revocation action) against a parallel patent registered in a foreign forum’s jurisdic- tion, such as in the United Kingdom. Given that issuance- f a patent does not create a presumption of validity and
- f Virginia and western district of Wisconsin (and even
- ut to other jurisdictions. So it is worth the investment
- us forums besides considering the historical data.
Know the Forum’s Knowledge of Patent Law and Technology
Not all forums share the same familiarity of patent law nor do they possess equal technical capability in deter- mining construction of claim terms and merits of alleged- infringement. Indeed, some forums practically market such
It is equally important to understand your competitor’s products, not only technically but geographically and financially.
In-house counsel recommend the Mini MBA.
“The Mini MBA program did a great job of strengthening the management and business skills I need to contribute the most to my organization. It’s helped me bring more to the table and add value beyond my in-house duties.” – Renee D. Benjamin, Senior Counsel, CalPortland Company Start adding value to your skills. Register today at www.acc.com/minimba. Education - Knowledge and training programs by and for in-house counsel. DECEMBER 2-4, 2009 MARCH 15-17, 2010 JUNE 9-11, 2010Mini MBA for In-house Counsel
Bring More Than Your Legal Skills to the Table Boston University School of Management, in partnership with the Association of Corporate Counsel- nly a 1 in 3 chance of staying there.
- nly having two sitting judges. But they have presided
- ver a large number of patent cases, are well-versed in the
Know the Rules and Procedures of the Forum
Not all forums are the same when it comes to discov-- ery. Significantly, most do not have US-style discovery. If
- btaining discovery is important to your case, then you
- divergent. As noted, the United Kingdom has discovery
- proceeding. The required threshold is also low. The
- ings. Because Paris is home to many trade shows, this
- ther forum that does not permit discovery. Unfortu-
- ther popular procedure in patent litigation is evidence
- f the premises. Any evidence obtained from preservation
- ing. In addition to the evidence preservation mechanism,
- rders, private investigations, raid actions, overseas litiga-
- rder until the hearing.
- ften varies depending on the circumstances of the case.
Know the Speed of the Forum
Depending on the objectives you defined, the speed of the forum, whether its slow or fast, is important. If speedy resolution is desired, some forums in the United States, the United Kingdom, Germany, the Nether- lands and China decide cases in less time. An infringement proceeding may take 18 to 20 months in Germany and 12 to 24 months in the Netherlands. In the United Kingdom, courts take about 10 to 14 months from filing to disposi- tion for infringement proceedings with an appeal clocking in at around nine months and a revocation proceeding coming in between nine to 12 months. In China, an infringement proceeding will last at least 12 to 18 months in the first instance if one or more of the par- ties involves a foreign entity, because of an automatic exten- sion of time given to foreigners for responding to statutory deadlines, the legal requirements to translate all documents, and notarize and legalize all evidence related to obtaining the infringing products and activities. The invalidity proceedings and appeals are even slower. As a result, it is not uncommon to have judgments of infringement on patents that are subse- quently invalidated by an invalidity proceeding. Perhaps one of the fastest forums in the United States is the US ITC, with investigations typically lasting nine to 12 months for initial determination of patent infringement. You should also consider the western district of Wisconsin, the eastern district of Virginia and the southern district of California, all of which have achieved recent prominence as hotbeds of patent litigation activity. The attraction of these districts is somewhat complicated, but generally these jurisdictions are known for their relatively short time between filing and final disposition. The eastern district- f Virginia, however, has slowed somewhat in recent years
Are you settling for a single piece instead of getting the whole solution?
888.272.4699 WWW.BRIDGE-WAY.COMeDiscovery
Let Bridgeway show you what’s been missing. In-House End-to-End Process Control Cost For twenty years, you’ve trusted Bridgeway for your matter management and corporate governance needs. Count on Bridgeway eDiscovery – the safe choice for a complete picture.Come see us at the ACC 2009 Annual Meeting Booth 312
- considerably. Similarly, there are countries that are notori-
- usly slow such as India, Italy or Belgium. Slower jurisdic-
- able. By choosing a slower jurisdiction to rule on the patent
Know the Benefits and Drawbacks of Bifurcation
Patent litigation generally involves two key issues — infringement and validity. These issues can either be re- solved by the same court or the inquiry can be bifurcated into separate proceedings. Both approaches have benefits and drawbacks. Courts in the United States, for example, consider validity and infringement simultaneously. This system requires you to carefully evaluate the interplay between the prior art and the accused product, since only one claim construction can be adopted by the judge. In the United States, you may also opt to file an inter partes or ex partes reexamination of the valid- ity of the patent with the US Patent and Trademark Office, a forum that has a lower standard for validity of a patent com- pared to US courts. This is an administrative proceeding and can be useful in an attempt to stay proceedings in the district court, such as with an inter partes reexam or to take another bite at invalidating the patent with new prior art located after the district court proceeding has concluded. In Germany and other civil law jurisdictions, however, infringement and validity are tried before two separate courts, or before a court and an administrative office. Therefore, a party can adopt different claim constructions for purposes of infringement and invalidity. For example, in Germany, nullity actions are handled exclusively by the patent court in Munich, whereas infringement actions are handled in the federal courts, especially Manheim, Dussel- dorf and Munich. In Japan, infringement proceedings are usually handled either in Tokyo district court or Osaka district court. As a defense to infringement, a defendant may argue that the pat- ent is invalid. The district court can make a validity deter- mination, but that is only binding on the immediate parties. Only the Japan Patent Office can invalidate the patent itself. Also unique to Japanese patent litigation is that the infringe- ment proceedings are “tried” through a series of hearings in- volving the parties and the judges, where advocacy is based- n the written word rather than oral argument.
- r where the infringement has taken place. So to avoid
- r manufacturers of the allegedly infringing product as ad-
Know the Cost
The maxim that all patent litigation is expensive, regardless of the forum, holds true. But some forums are more expensive than others. Some of the most expensive forums in the world are located in the United States. For the price, though, you get terrific procedural safeguards and very broad discovery- mechanisms. The simple truth is if you need discovery
The bulk of high-stakes patent litigation in Europe occurs in the United Kingdom or Germany.
- ne of the most expensive, primarily because you are able
Know When You Need Help
There are three simple steps you can take to advance your business objectives through patent litigation. First, develop a solid strategy for acquiring and maintaining your intellectual property. A global patent portfolio will allow you to engage in battle on your own terms. Second, retain counsel with the sophistication and resourcefulness necessary to develop and execute a global patent litigation- strategy. When choosing a law firm, make sure they have
ACC Extras on…Global Patents
ACC Docket
Protecting Privilege in a Global Business Environmen-
-
-
-
Program Materials
Best Practices in Patent Litigatio-
- n recent court decisions and legislation that may have an
-
-