Yonan Patent Litigation Techniques before USDCs and the
Transcription
Yonan Patent Litigation Techniques before USDCs and the
Patent Litigation Techniques before USDCs and the USITC; Section 337 Strategy for Design Patents Daniel E. Yonan, J.D. Director STERNE KESSLER GOLDSTEIN AND FOX PLLC Washington DC © 2012 Sterne, Kessler, Goldstein, & Fox P.L.L.C. All Rights Reserved. © 2012 Sterne, Kessler, Goldstein, & Fox P.L.L.C. All Rights Reserved. Model Scenario • Foreign company enters U.S. market / gains market share • Your client loses market share • Response? – Review patent portfolio and consider complaint for patent (design) infringement • But where, e.g., USDC, USITC, or other? © 2012 Sterne, Kessler, Goldstein, & Fox P.L.L.C. All Rights Reserved. 1 Basics: USDC Patent Infringement 1. Jurisdiction – Personal / SMJ / 35 USC 271 2. Standing – Patent “ownership” (title) 3. Courts – Article III (94 USDCs) – “Key” jurisdictions / ~36 month to trial – Juries available / USMJs © 2012 Sterne, Kessler, Goldstein, & Fox P.L.L.C. All Rights Reserved. 2 USDC Patent Infringement (con’t) 4. Remedy – Damages – Injunction (Ebay)? 5. Nuances – – – – FRCPs / notice pleading / local rules Settlements frequent Mediation (mandatory?) “Local counsel” required © 2012 Sterne, Kessler, Goldstein, & Fox P.L.L.C. All Rights Reserved. 3 Basics: USITC Patent Infringement 1. Jurisdiction – In rem / 19 USC 1337 (Section 337) – Extraterritorial trade statute 2. Standing – “IP” title / domestic industry / no injury requirement 3. Tribunal – 6 ALJs (ground rules) / Commission – 7-9 months to trial / no jury (D.C.) © 2012 Sterne, Kessler, Goldstein, & Fox P.L.L.C. All Rights Reserved. 4 USITC Patent Infringement (con’t) 4. Remedy – Exclusion (GEO / LEO) / CDOs – No monetary remedy 5. Nuances – – – – – Overall speed (target dates) APA / CFRs Fact pleading / no counterclaims 3-ring circus (OUII) Public interest component © 2012 Sterne, Kessler, Goldstein, & Fox P.L.L.C. All Rights Reserved. 5 USDC Litigation Techniques • Strategy dictates choice of forum, so chose wisely – Filing court(s) / defendants • Be cognizant of defendant challenges – Overall goal? • “Key” battles – Discovery / Markman / MSJs / Trial – Divide and conquer (multiple defendant scenarios) © 2012 Sterne, Kessler, Goldstein, & Fox P.L.L.C. All Rights Reserved. 6 USITC Litigation Techniques • Significant tactical advantages – – Complainant prepares strategy before filing Respondents MUST gain leverage or else (e.g., redesigns) • Dynamics management – – – • Client and appetite for risk ALJ tendencies / OUII New rules / CFR amendments “Key” battles – Discovery / Markman? / Hearing / Commission review © 2012 Sterne, Kessler, Goldstein, & Fox P.L.L.C. All Rights Reserved. 7 Why Is The USITC So Popular? Number of 337 Investigations since 1976 70 60 50 40 30 20 10 0 © 2012 Sterne, Kessler, Goldstein, & Fox P.L.L.C. All Rights Reserved. 8 Percentage of NME Investigations 33% 70 60 11% 50 16% 40 2% 17% 10% 30 24% 7% 12% 5% 20 5% 28% 7% 10% 18% 18% 10 0 © 2012 Sterne, Kessler, Goldstein, & Fox P.L.L.C. All Rights Reserved. 9 Complainants by Country Austria Belgium Denmark Finland France 80 70 Germany Holland Netherlands Sweden Switzerland United States 60 50 Hong Kong Japan Korea Singapore Taiwan Australia Bermuda British Virgin Islands British West Indies Canada Cayman Islands United Kingdom 40 30 20 10 0 © 2012 Sterne, Kessler, Goldstein, & Fox P.L.L.C. All Rights Reserved. 10 Respondents by Country 60 All Other Canada 40 Germany Other Europe 20 0 80 Hong Kong Other Asia 60 Korea Taiwan 40 Japan China 20 0 © 2012 Sterne, Kessler, Goldstein, & Fox P.L.L.C. All Rights Reserved. 11 What About Design Patents? © 2012 Sterne, Kessler, Goldstein, & Fox P.L.L.C. All Rights Reserved. 12 Number of 337 Investigations by ALJ and Subject Matter Since FY2007 57 Bullock 35 Charneski 52 Esssex 35 Gildea 45 Luckern 42 Rogers Shaw Pender Pender Shaw 0 10 Non-Patent 20 Chemical 30 Electrical 40 Mechanical 50 Pharmaceutical 60 Design © 2012 Sterne, Kessler, Goldstein, & Fox P.L.L.C. All Rights Reserved. 13 Section 337 Design Facts • 45 design investigations since 1976 • Compare 836 total investigations over same time (5.3%) • Only 7 resulted in no violation • 10 GEOs issued / 10 LEOs issued • 4 pending 1. 2. 3. 4. 337-TA-780 (iPad Cases) 337-TA-788 (Thumb drives) 337-TA-796 (iPhones) 337-TA-823 (Vibrators) © 2012 Sterne, Kessler, Goldstein, & Fox P.L.L.C. All Rights Reserved. 14 Section 337 Design Future 1. Enforcement trend mirrors primary technology (Electronics) – Compare Pharmaceuticals (3%) 2. “Ordinary observer test” – “Point of novelty” not required – Easier to prove infringement? 1. Multi-patent lawsuits (utility + design) to increase chances at violation © 2012 Sterne, Kessler, Goldstein, & Fox P.L.L.C. All Rights Reserved. 15 Summary • There is a logic to forum selection • Use the USDC v. USITC nuances to your advantage • Budget: always run the costbenefit analysis © 2012 Sterne, Kessler, Goldstein, & Fox P.L.L.C. All Rights Reserved. 16