Arctic Cat successfully monetized its patent both by licensing it to Honda and by winning litigation against BRP, maker of the infringing Sea-Doo personal watercraft.
The case demonstrates how a patent owner can overcome an obviousness challenge to keep a patent enforceable.
It highlights the importance of marking your products with your patent number as part of a successful enforcement strategy.
Arctic Cat was able to secure an ongoing royalty from the infringer as part of the outcome.
The case also resulted in treble damages being awarded against the infringer.
The Bottom Line: Arctic Cat’s litigation against the maker of Sea-Doo shows that combining a defensible patent, proper product marking, and smart litigation strategy can lead to licensing deals, ongoing royalties, and even treble damages against an infringer.
What You Need to Know
This PatentCast episode covers how Arctic Cat successfully enforced and monetized its patent, both by licensing it to Honda and by pursuing litigation against BRP, the maker of the infringing Sea-Doo personal watercraft.
Craige draws four business lessons from the case: how Arctic Cat overcame an obviousness challenge to its patent, the importance of marking products with the patent number, how the company secured an ongoing royalty, and how it obtained treble damages from the infringer.
What To Do Next
1Make sure your products are properly marked with your patent number to preserve your enforcement and damages options.
2Prepare your patent to withstand an obviousness challenge before pursuing licensing or litigation.
3When negotiating a settlement or licensing deal, consider seeking an ongoing royalty rather than a one-time payment.
4Understand the conditions under which treble damages may be available against a willful infringer.
5Consult a patent attorney to build a monetization strategy that combines licensing and litigation, as Arctic Cat did.
Summary: In this episode of the litigation quality PatentCast Craige explains how Arctic Cat successfully enforced and monetized its patent with a patent license to Honda and in litigation against BRP, the maker of and infringing “Sea-Doo” personal watercraft.
This case has 4 great business lessons involving how to:
1) Overcome obviousness
2) Mark your products with your patent number
3) Get an on-going royalty and
4) Treble damages from the infringer!
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