Executive Summaries » Upcoming Supreme Court Ip Cases Will Have Big Impact

Upcoming Supreme Court Ip Cases Will Have Big Impact

February 23, 2015

Two cases to be heard soon by the U.S. Supreme Court, one concerning induced patent infringement and the other regarding enforceability of a license requiring royalty payments after patent expiration, will have a significant impact on patent holders and portfolio valuations.

In the first, a petition was filed by CommilUSA, requesting the Supreme Court to grant certiorari in CommilUSA, LLC v. Cisco Systems, Inc. A jury found Cisco liable for direct infringement and, at retrial, liable for inducing infringement. The Court of Appeals for the Federal Circuit reversed and remanded on the question of intent regarding Cisco’s knowledge of Commil’s patent, and additionally held that Cisco’s “good faith belief” that the patent was invalid was a defense to induced infringement. Commil filed a petition for certiorari with the Supreme Court, which has been accepted.

In the second case, Stephen Kimble, the owner of a patent covering a glove that shoots a pressurized foam string from the palm (much like Spider Man), filed a petition for certiorari in December 2013. Kimble had earlier reached a settlement with Marvel, but the company stopped paying him when the patent expired. Kimble sued for breach of contract, and lost on the grounds that the courts were bound by Brulotte v. Thys Co. The Supreme Court granted cert despite the DOJ’s opposition. The authors advise intellectual property owners to consider filing amicus briefs, given the potential consequences of the court overturning Brulotte.

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