patent-infringement​
patent-infringement​

Patent Infringement: Types, Legislation & Remedies Explained

A patent is a form of intellectual property that gives its owner rights, exclusive to itself, about the use, manufacture, and sale of an invention for a certain period. In most jurisdictions, patents are granted for 20 years from the date of filing of the patent application. A new product, process, machine, or chemical composition may be included in the idea of an invention. There are several types of IPR, patent is one of the most important IPR.

Patent law offers remedies to all whose patents have been infringed upon. Patent infringement knowledge, types, laws, and remedies are thus in high demand for inventors, businesses, and legal practitioners.

Meaning of Patent Infringement

Patent infringement occurs when a person or entity makes, uses, sells, offers to sell, or imports into a country a product or process that is covered by a valid patent without the consent of the patent holder. The fundamental idea is that patent holders have exclusive rights over their patented inventions, and any unauthorized use of those inventions constitutes infringement.

Patent infringement scope usually depends on the comparison between the allegedly infringing product or process with the claims made in the granted patent. A patent claim describes all the specific features of the invention that are protected. If such features exist in the accused product or process, then it might be construed as an infringement. This analysis can often be done through a "claim construction" or "claim interpretation" process whereby courts interpret the claims to determine whether the alleged infringer's product or process falls within the claim scope of the patent.

There are two basic elements in a patent infringement claim –

  • Validity of the Patent: For a valid infringement claim, the patent itself must be valid first. A court may analyze whether the patent was legally granted considering the prior art, novelty, and non-obviousness.

  • Infringement: This is whether the infringer's activities or product falls within the scope of the patent claims.

Types of Patent Infringement

Patent infringement can happen in more than one form, depending upon the nature of the infringement and what an infringing party is doing. There are broadly two forms of patent infringement in general: direct infringement and indirect infringement.

1. Direct Infringement

Direct infringement happens when a party directly makes, uses, sells, or imports a patented invention without permission of the patent holder. This type of infringement is the most straightforward and happens when the infringer's actions directly violate one or more claims of the patent. It is fairly simple to discern, as it represents a blatant violation of the exclusive rights of the patent.

  • Making: A person or company who manufactures a product that incorporates all elements of a patented invention is directly infringing the patent.

  • Using: Practicing the patented invention in the course of business or personal activity, without permission, also amounts to infringement.

  • Selling or Offering to Sell: Offering a product for sale or service that embodies the patented invention is also one form of infringement

  • Importing: Importing goods containing or embodying the patented invention into a jurisdiction where such patent is valid amounts to infringement.

2. Indirect Infringement

Indirect infringement arises when a party does not directly infringe a patent but can help or induce some other party to infringe it. Two primary types are:

  • Contributory Infringement: This is when a party sells or supplies an element of a patented invention with the knowledge that it will be used to infringe a patent. Even though the party did not infringe the patent directly, by supplying the infringing element, they contributed to the infringement.

  • Induced Infringement: Induced infringement is when a party encourages another person to infringe on the patent. It can be in the form of advertising, giving instructions, or in any other form of persuasiveness or direction leading to infringement of the patent. To prove the act of inducing infringement, one has to show that the defendant had knowledge of the patent and that they knew that, to induce, others would infringe.

3. Willful Infringement

Willful infringement occurs when the infringer knows about the patent and intentionally ignores the rights of the patent holder. It is an act of infringement committed with or without consideration for the existing patent. In such cases, courts may award enhanced damages if the case of willful infringement is proved. It usually consists of circumstances where the alleged infringing party was aware of the patent but still infringed it, at times directly disregarding the rights of the patent owner.

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Legislation for Patent Infringement

India has a very well-defined legal framework regarding patents, which especially includes specific provisions in relation to dealing with patent infringement. Here is a brief overview of significant legislative provisions related to patent infringement:

1. The Patents Act, 1970

The Patents Act, 1970 is India's cornerstone piece of patent legislation. It regulates the issuance and granting of patents in the country and spells out the rights and duties of patent owners, such as the right to prevent others from making, using, or selling the patented invention without authorization.

Key sections of the Act relevant to patent infringement include:

  • Section 48: Grants the patent owner the right exclusively to make, use, sell, or offer for sale the patented invention.

  • Section 104: States the remedy for infringement of patent rights. This is where a patent owner can file an infringement action.

  • Section 105: Expounds on the law court's jurisdiction over the infringement of patents.

  • Section 107: Outlines the defences which could be put forward in a case of patent infringement. Notable among these is the challenge to the validity of the patent itself.

2. The Patents Rules, 2003

The Patents Rules, 2003, further details procedural matters in regard to patent application, rights of the patentee, and means of resolving the dispute. The rules also have guidelines about dealing with patent infringement cases, including filing a complaint about and defending cases of infringement alleged against one.

3. International Treaties and Agreements

A WTO member, India complies with the agreements signed by the world body on TRIPS. TRIPS stands for Trade-Related Aspects of Intellectual Property Rights. It is the international agreement that standardizes protecting intellectual property rights. These include patents. The 2005 amendment of India's Patents Act brought India's patent law into conformity with the TRIPS requirements. Member countries agree to give their citizens effective legal procedures to enforce their patent rights. Remedies available include relief that can be obtained against infringement of a patent.

4. Amendment to the Patents Act

Over the years, various amendments to the Patents Act have been made to strengthen the system of patent protection and enforcement in India. These amendments were aimed at making the patent system more streamlined and less complicated in solving issues such as patent infringement. Notably, the Patents (Amendment) Act 2005 has brought major changes:

  • Product Patents: The Act has brought product patents into sectors like pharmaceuticals, which were not allowed prior.

  • Compulsory Licensing: Provisions relating to compulsory licensing were made. The government was empowered to allow a third party to manufacture a patented invention primarily in cases of public health emergencies, without the consent of the patentee.

  • Patent Term Extension: The amendments provided for the patent term extension also under certain circumstances, just like all international standards.

Also, Get to Know Which are the Inventions that are Not Patentable

Remedies for Patent Infringement

In case of infringement of patents, there are several legal remedies available to a patent holder. These remedies may vary with the jurisdiction, but they generally fall into the following categories:

1. Injunctive Relief

Injunctive relief is one of the main remedial measures regarding patent infringement. It usually involves an order that a court issues to prevent an infringer from continuing in any infringed activity. It is granted in cases where there is a large possibility that the patent holder will prevail at trial and if the patent holder suffers irreparable harm. There are two forms of injunctions:

  • Pre-Trial Injunction: A court order restraining further infringement until the case is tried.

  • Permanent Injunction: A court order permanently prohibiting the infringer from continuing in the infringing activity after the court has found infringement.

2. Monetary Damages

Compensation by monetary damages is given to the patent holders. Monetary damages include:

  • Actual Damages: The losses in actual money that the patent holder incurred due to the infringement.

  • Statutory Damages: These are awarded at the discretion of the law.

  • Enhanced Damages: it's their enhanced value, which happens if willful infringement is established, multiplied according to how the court sees fit, usually threefold of actual damages.

Also, Get to Know the Patent Filling Procedure in India

3. Royalty Payments

In some jurisdictions, the infringer may be ordered to pay the patent owner a royalty to use the patented invention. This amount can be agreed upon between the parties or established by the court.

4. Costs of Litigation

The winning party in a patent infringement case may be awarded costs of litigation, which can include attorney's fees, in some jurisdictions. This occurs most often when the infringement is egregious.

5. Confiscation of Infringing Products

In some cases, a patent holder may seek the seizure of infringing goods, especially in cases where the goods are being sold or imported illegally.

6. Criminal Sanctions

In some jurisdictions, patent infringement can result in criminal penalties, including fines or imprisonment, especially in cases of willful infringement or counterfeiting.

Defence of Patent Infringement

Section 107 of the Patents Act prescribes several defences open to the defendant in a case of patent infringement:

  • Invalidity of Patent: The defendant can attack the patent as being invalid on the basis that the patent was improvidently granted in the first instance for reasons of lack of novelty or non-obviousness.

  • Non-infringement: The defendant can argue the alleged infringing product or process does not fall within the scope of the patent claims.

  • Use of a Patent for Research or Experimental Purposes: the Patents Act offers an extremely restricted exception for the use of a patented invention for research or experimental purposes.

  • Compulsory Licensing: If the patentee has not worked the patent in India, or even refused to grant a license, then a defence based on compulsory licensing may be made.

Know the Key Differences between Patent & Trademark

Landmark Case Laws on Patent Infringement

Here are the landmark case laws on patent infringement that highlight legal interpretations and provide valuable precedents for businesses, legal professionals, and innovators.

Novartis AG v. Union of India 2013:

This landmark case challenged the validity of a patent granted to Novartis for its cancer drug Glivec. The Supreme Court ruled that Novartis could not obtain a patent for a modified version of the drug, as it was not a new invention under Indian patent law. This ruling highlighted the standards for patentability in India.

Bayer Corporation v. Union of India (2012): 

Bayer's patent on its cancer drug Nexavar was held in the Delhi High Court to not be valid under Indian law, failing to meet the tests of novelty and inventive step.

Patent infringement violates intellectual property rights very seriously. It may provide a heavy legal, financial, and business impact. Patent owners, attorneys, and companies must understand the two types of patent infringement: the statutes that govern patent rights as well as possible remedies. Be a patent inventor fighting to defend the invention or a firm accused of infringing on someone's patent; understanding patent law complexities stands at the foundation of protecting innovative interests and fair marketplace competition.

Patent Infringement FAQs

Q1. What is patent infringement?

Patent infringement involves the use, making, selling, or importing of a patented invention without the permission of the patent owner.

Q2. What types of patent infringement are there?

Direct Infringement: Violating the claims of the patent directly.

Indirect Infringement: Contributory or induced infringement wherein someone encourages or assists others to infringe.

Q3. Can I challenge the validity of a patent?

Yes, you can challenge a patent's validity through lawsuits, focusing on things like novelty or prior art.

Q4. How do I prove patent infringement?

By demonstrating that the allegedly infringing product or process meets the claims of the patent, often through "claim construction."

Q5. How long may a patent be asserted?

Patents may be asserted during the life of the patent term, which is a period of 20 years from the date you filed, so long as the patent remains in force.

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