Patent infringement occurs when a party utilizes, makes, sells, or imports a patented invention without the patent holder’s permission, knowingly or unknowingly. Sometimes infringement occurs due to differences in the interpretation of the scope of patent claims. Scope of protection disputes are seen when a patent owner and alleged infringer disagree about whether a particular product or process falls within the protected territory of a patent. In scope of protection disputes, both parties believe they are within their rights, leading to almost a definite need for some sort of patent litigation.

In our “What Does Infringement Mean?” article, you can find more information on patent infringement and the different types.

Assertion of Patent Ownership

When writing a patent application, it is possible to list more than one individual as the inventor of the innovation in the application, making them co-inventors or joint inventors. Each co-inventor or joint inventor MUST have contributed to the “conceiving” of the invention, however, their contributions do not have to be equal. Even if the joint inventors or co-inventors have contributed unequally to the conception of the invention, all joint and co-inventors will fully own and share in the patent.

If joint/co-inventors disagree on their respective contributions to an invention, disputes over ownership and rights will likely lead to the need for some sort of patent litigation. It is a far easier and less messy process to simply agree to the naming of inventors at the outset of the patent application process than to have it later corrected by the courts. There are two processes that can occur to have inventorship amended: cooperative correction (when all parties agree) or adverse correction (when parties do not come to an agreement).

Challenges to Patent Validity

Challenging patent validity typically involves allegations that the granted patent is not valid due to a number of possible reasons. Issues related to novelty or obviousness are common triggers for questioning the validity of an issued patent. If there are allegations that a patented invention is not novel (new) and has been disclosed in prior art before the filing date, one may request an inter partes reexamination proceeding. In an inter partes reexamination proceeding, the requester has the right to participate in the reexamination process, where the burden of proof falls on them to prove that one or more claims of the challenged patent can be invalidated.

Check out our article on questioning patent validity to read more about inter partes reexamination proceedings as well as ex parte reexamination proceedings.

In addition to being novel, an invention must also be non-obvious to a person skilled in the relevant field at the time of invention. This means that the invention should not be an obvious combination or modification of existing knowledge or technology. An inter partes reexamination proceeding can also be requested for this claim of invalidity.

Competitive Business Strategies

As companies seek to protect their market positions, innovations, and intellectual property rights, patent litigation can be used as a competitive business strategy. There are multiple different driving forces behind the use of patent litigation as a competitive business strategy. Patent litigation can be initiated to delay or prevent the launch of a competitor’s product in order to assert market dominance.

On the other hand, patent litigation is more often used to combat the competitive business strategies used by companies. Companies may build a patent portfolio that strategically blocks competitors from entering a particular market. Competitors are within their rights to challenge the validity of these blocking patents, arguing that they impede fair competition. In fast-paced industries, companies engage in innovation races to be the first to market with groundbreaking technologies. Disputes may arise when competitors claim that a patented innovation was not genuinely novel or was derived from their prior work, leading to legal challenges over ownership and validity that may result in a form of patent litigation.

Enforcement of Licensing Agreements

Disputes may arise when one party accuses the other of failing to comply with the terms and conditions of a licensing agreement involving a patent, such as failing to pay royalties or exceeding the agreed-upon scope. Litigation may be initiated to compel compliance, seek damages, or terminate the licensing agreement. Read more information on licensing agreements in our articles licensing agreement types and licensing agreement advantages and disadvantages.

Patent Trolling

Patent trolling refers to the practice of acquiring patents not for the purpose of using or commercializing the inventions but rather with the intent to enforce the patents aggressively through litigation. Patent trolls, also known as non-practicing entities (NPEs) or patent assertion entities (PAEs), often target other companies by accusing them of patent infringement. Their goal is to monetize their patents by forcing companies to pay licensing fees or through settlements gained in patent litigation. Read more about the effects of patent trolling in our article “What is a Patent Troll?“

Technological Advancements and Overlapping Patents

Continuous advancements in technology drives the creation of new inventions and intellectual property. Innovations may be incremental (building upon existing technologies) or disruptive (introducing entirely new concepts). In industries with rapid technological progression, these advances in technology can lead to overlaps and conflicts between existing patents that may require a form of patent litigation. Companies in rapidly evolving industries frequently pursue incremental innovations to enhance existing products or processes. Patent holders may file additional patents to cover these improvements. As companies file patents for incremental improvements, the potential for overlapping patents arises, especially in fields where multiple entities are working on similar technological advancements.

Companies may engage in licensing or cross-licensing agreements to access each other’s patented technologies. Overlapping patents can complicate negotiations that may require patent litigation for a resolution.

Defensive Litigation

Defensive litigation in the context of patent disputes refers to legal actions initiated by a party with the primary goal of defending against or responding to a perceived threat of patent infringement. Companies may initiate litigation defensively to challenge the validity of a competitor’s patent or to seek a declaration that their products do not infringe a particular patent. Defensive litigation is often a preemptive strategy aimed at gaining a favorable legal position, deterring the patent holder from pursuing infringement claims, and affirming the company’s right to continue its business activities.

International Disputes

When companies are operating globally, disputes may arise involving patents granted in different jurisdictions, leading to complex international patent litigation. International disputes add complexity to patent litigation due to the different legal systems, languages, and cultural factors that come into play. Patent laws and regulations vary significantly from one country to another, impacting the interpretation and enforcement of patent rights.

Regulatory Challenges

In industries where products and technologies are subject to various regulations and standards prior to entering the market, such as pharmaceuticals or medical devices, patent litigation can be influenced by the status of regulatory approval. Disagreements over the validity or enforcement of patents may arise in the context of seeking regulatory approvals for new products. Courts may consider the regulatory landscape when determining the enforceability or validity of a patent.