Damages for indirect patent infringement

D Karshtedt - Wash. UL Rev., 2013 - HeinOnline
Wash. UL Rev., 2013HeinOnline
In many patent infringement cases, the only practical way that the plaintiff can obtain relief is
on a theory of secondary liability, which is generally referred to as indirect infringement. The
remedy in patent cases frequently includes damages for past infringement. Because jury
verdicts in patent cases can amount to hundreds of millions of dollars, patent damages have
become a hotly litigated issue. Nevertheless, much to the frustration of the litigants in these
high-stakes lawsuits, the courts continue to struggle to clarify how damages for indirect …
Abstract
In many patent infringement cases, the only practical way that the plaintiff can obtain relief is on a theory of secondary liability, which is generally referred to as indirect infringement. The remedy in patent cases frequently includes damages for past infringement. Because jury verdicts in patent cases can amount to hundreds of millions of dollars, patent damages have become a hotly litigated issue. Nevertheless, much to the frustration of the litigants in these high-stakes lawsuits, the courts continue to struggle to clarify how damages for indirect infringement should be determined.
The Court of Appeals for the Federal Circuit, which has exclusive appellate jurisdiction over patent cases, has deepened the confusion over calculating damages. Two opinions from the Federal Circuit have made contradictory pronouncements on the issue of accounting for proven acts of primary (ie, direct) infringement in determining damages for indirect infringement. Lucent Technologies, Inc. v. Gateway, Inc. held that the extent of directly infringing use of the patent should be viewed as one of many pieces of evidence for measuring the extent of damages (" the evidentiary approach'). In contrast, Cardiac Pacemakers, Inc. v. St. Jude Medical, Inc. endorsed a rule that enables trial judges to limit damages as a matter of law to proven, enumerated acts of direct infringement of the
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