There was a time when the technology industry was the only industry that had to bother about patent litigation. Competitors and manufactures had to battle in the court room over the ownership and rights to inventions and the returns obtained from that invention. However, in the present scenario, the entire world has experienced the influence of the technology. No industry is untouched by the technology. Robots are painting cars today.
On March 17th, 2016, the British national daily newspaper The Daily Mirror published about a restaurant in Shenyang, China. There were no human waiters; there were robots to serve food. However, on April 8th, 2016, it was published in The Daily Mirror that robots were fired after spilling food and drinks. According to the owner, they were rubbish. From here, it is evidenced that the technology is being used by all industries. Therefore, every industry is vulnerable and exposed to NPE litigation.
In case, a patent infringement claim is asserted on you by an NPE, what should you do? Your response and actions depend on your risk tolerance, the strength of the NPE, risk and cost, and reasonability of the NPE. In this blog, you will know how to evaluate the claim.
Claim Evaluation
Is Your Liability Shared With Someone Else?
For example, you are a retailer and may be your supplier owes you an indemnity obligation. If there is no clear answer to this question, the retailer nonetheless may ignite a battle on an indemnity dispute with the customer or may agree on negotiating some cost sharing deal.
What are the demands of NPE?
Most of the organizations tend to keep their demands cheaper than the cost of litigation. In such scenario, paying the demand is economical but for a short run only. The NPE may roll over and you may have to pay or fight again in the future.
What is the significance of potential exposure?
This time, you have to see the cost-benefit equation. So, this is a difficult decision. When the stakes are high, you are likely to invest more resources in the battle. However, try to boost negotiation leverages and position litigation victory with a defensive theory.
Is there any low-cost defense?
The battle of NPE infringement is cruel and can destabilize your budget. In some cases, it may be unnecessary. Therefore, you should look for other alternatives or non-technical defenses that can nullify the claim.
Is it possible to avoid the technology?
You can limit damages and also negotiate leverages by doing so. Typically, NPEs negotiate lump sum. NPEs usually target fully-paid up licenses that are expected to extend before expiry. By showing your interest in the limited license, you can argue down from the standard rate of the NPE.
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