Infringement rights are not based on the use of the patent
Many inventors and small companies own patents which they do not use or license. The common terminology, when a patent owner uses a patent to produce a product or service, is to practice the patent. A patent holder who does not practice the patent is known in the legal system as an NPE or non-practicing entity. On the other hand, the patent holder who carries out a patent that it owns is known as a market participant.
Patent licensing: Many inventors and universities, and a few companies, own patents that they do not practice. Instead, they allow technology for companies that use the patents to produce products or services. Many universities produce a return to their research investments by licensing the patents that result from the research that they carry out. Many of today’s and most popular drugs have got their start in university laboratories and research facilities. Thomas Edison was primarily a licensor of patents. He was in the invention business, not the business of invention and then with this invention to produce a product or service. Despite his genius, Edison recognized that he was neither an entrepreneur nor an industrialist, so he focused on what he did best. to invent. Edison owned over 1,000 patents, and many of them were licensed to companies to produce products and services. In fact, Edison had a patent for a timer, and the company that licensed the Edison patent became IBM.
Patent holder’s rights: A patent does not grant the patent holder the right to practice the patented invention. What gives a patent in reality and under the law gives the patent holder the right to prevent someone else from using it. Whether the patent holder practices the patent, the patent is not practiced, the patent is licensed or the patent is not licensed, the patent owner reserves the right to prevent someone else from using the patent! There is not, as many believe, any use-it-or-lose-it principle. A patent owner does not have to exercise a patent in order to retain the property or the rights it creates for the patent owner!
Patent Enforcement: The US Patent and Trademark Office grants patents; They do not force them. There is no patent office. If a patent is infringed (without the permission of the patent holder), it is the responsibility of the patent holder to prosecute the infringer through civil proceedings. That is, take the patent infringer to court!
Injunctive relief: There is, however, a difference in the legal position of a patent holder who practices his or her patent and the NPE or the non-practicing patent owner. If the patent proprietor asserts a patent infringement and if the patent owner also exercises this patent, a form or relief for the practicing patent owner is required to bring the court to an injunction. That is, ask a court to order an interim injunction to order the infringing party to discontinue the production and sale of the product or service using the infringed patent. If the product is produced outside the USA, the court may issue an order prohibiting its import into the USA. The NPE, but the patent owner who does not practice her or her patent, does not have this option.
Claims for damages: Both patent proprietors exercising the patented invention and patent proprietors who do not practice the patented invention have the same right to sue the infringer for damages. However, there is a small difference. While both parties are equal in terms of what they own, and what their rights are, the patent holder practicing his patent may gain a greater distinction in a patent infringement suit than the non-practicing patent owner. The non-practicing patent owner can receive damages in the form of andldquo, appropriate royaltyandrdquo; On sale of infringing products or services. The practicing patent owner can instead seek lost profits that are generally larger than an appropriate license fee.
Patent rights: So there is no use-it-or-lose-it factor to patent ownership. Unlike the right to obtain injunctive relief, patent proprietors practicing their patents, patent holders who license their patents, and patent proprietors who neither practice nor allow their patents, all have the right to prohibit others from using their patents without their permission Have the right to sue the offending party for damages. Authorization to use a patent is usually in the form of a license agreement.