EEP 143 Lecture 16 - EEP 143 Lecture 16 Enforcement and...

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Unformatted text preview: EEP 143 Lecture 16 Enforcement and Litigation of IPRs How are IPRs enforced? How do antitrust laws affect IPRs? Legal Terms translated Infringement: violation of IPR Injunction: order to stop using infringed IP Preliminary injunction: Temporary injunction before case decided Liable: you pay Damages: amount of payment Triple damages: damages multiplied by 3 to punish willful infringement (in US) Criminal liability (risk of jail) Basic facts on patent system examination and enforcement More than 80% of US patent applications result (eventually) in a patent (exact figure is subject to dispute) About 2% of US patents are litigated (subject of a filed lawsuit) 95% of lawsuits settle before trial Cost of a lawsuit that goes to trial is maybe $1- 1.5M for each side on average, or maybe $0.5M per claim (Hall et al. 2004) Basic facts on patent system examination Examiner: reviews prior art (must be written) focus on computer files cannot appeal to common sense paid by cases finished Patentee: never (at least until recent limits on continuations) has to accept rejection has rights to continuations, divisions, etc. Basic facts on patent system examination Patent office: (USPTO) fees for filing, also periodic renewal fees revenues produce a surplus for funding govt. PTO refers to applicants as customers Is that sensible? Basic facts on patent system examination Judicial review USPTO decisions subject to judicial review Court of appeals of Fed. Circuit hears appeals Supreme court sometimes hears appeals of CAFC decisions Know any recent examples? Basic facts on IPR system Enforcement As we have seen, patent or copyright law doesnt automatically guarantee to the right holders that their innovations will not be infringed That the government will enforce their rights Rights holders can sue for infringement However, also the alleged infringers will often claim that the IPR is invalid or that they did not infringe Suing can bring a risk of invalidation of IPRs Sources of patent-related litigation Patentees sue infringers Infringers challenge patent validity Special infringement actions as part of Hatch- Waxman entry challenge by a generic pharmaceutical firm Requests for PTO re-examination are another source of challenge Unattractive for competitors Tool of Public Patent Foundation (check website) Government (DOJ or FTC) can bring antitrust actions (and so can individuals or firms) Basic facts on IPR system Enforcement For instance UC Berkeley sued Microsoft for infringement in an internet browser technology in patent 5,838,906 licensed by UCB to startup Eolas Microsoft declined a license, put technology in Internet Explorer UCB sued Microsoft claimed non-novelty, prior art Court awarded UCB $520.6 M Basic facts on IPR system Enforcement Court awarded UCB $520.6 MCourt awarded UCB $520....
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This note was uploaded on 08/01/2008 for the course ECON 143 taught by Professor Wright during the Fall '07 term at University of California, Berkeley.

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EEP 143 Lecture 16 - EEP 143 Lecture 16 Enforcement and...

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