Even businesses that are only licensing a trademark or selling an unpatentable product can still get pulled into patent infringement risk through a business deal.
Proper due diligence and well-drafted contracts can help protect a business from being dragged into protracted, costly patent litigation.
A recent expansion of the “Single Actor Rule” has exposed more businesses to patent infringement risk than before.
Craige outlines three cost-effective steps businesses should consider to help avoid patent litigation exposure.
The Bottom Line: Because the expanded “Single Actor Rule” now exposes more businesses to patent infringement risk, even in deals involving trademarks or unpatentable products, proper due diligence, contracts, and cost-effective preventive steps are essential protections.
What You Need to Know
This PatentCast episode warns business owners that patent infringement risk can surface in unexpected places — even in deals that only involve licensing a trademark or selling a product that isn’t itself patentable. Craige explains that a recent expansion of the “Single Actor Rule” has broadened the range of businesses that can be pulled into patent infringement liability.
Without proper due diligence and carefully drafted contracts, a business deal can drag a company into protracted patent litigation that alarms customers, shareholders, suppliers, employees, and licensees, while generating exorbitant legal expenses and potential damages. Craige offers three cost-effective steps businesses can take to reduce this risk before it becomes a costly problem.
What To Do Next
1Conduct proper due diligence on any business deal, even ones involving only trademark licensing or unpatentable products, to check for hidden patent infringement exposure.
2Ensure contracts for business deals include protections against patent infringement liability arising from the “Single Actor Rule.”
3Apply the three cost-effective steps discussed in the episode to reduce your company’s patent litigation risk.
4Consult a patent attorney before finalizing licensing or sales agreements to assess how the expanded Single Actor Rule might affect your business.
Summary: How Business Owners Can Get Surprised by Patent Infringement
Proper due diligence and contracts can protect a business deal from dragging you, your company into a risky position though protracted patent litigation that scares your customers, shareholders, suppliers, employees, and licensees, not to mention the exorbitant legal expenses and potential money damages. In this PatentCast, Craige explains how a recent expansion of the “Single Actor Rule” exposes more businesses to patent infringement risk and 3 cost-effective steps you should consider to avoid patent litigation- even if you are just licensing a trademark or selling an unpatentable product.
Questions? If you would like to get your patent questions answered and be part of the show, Thompson Patent Law has a LIVE complimentary webinar called Ask The Patent Attorney. Call the number below and reserve your spot in this LIVE teaching event.
