Professor Ted Sichelman will be
publishing a paper in a forthcoming issue of the Texas Law Review titled
"Purging Patent Law of ‘Private Law’ Remedies". The review
solicited a response from me in its online supplement, "Texas Law Review
See Also." I don't think that a current version of the Sichelman
paper is available on ssrn (though I assume the print version will be out very
soon), but my short response--titled "Make No Little Plans: Response to
Ted Sichelman, Purging Patent Law of ‘Private Law’ Remedies"--is available
on ssrn, here. Here is the abstract of my
response:
This essay responds to Professor's
Ted Sichelman's forthcoming article, Purging Patent Law of "Private
Law" Remedies, 91 Tex. L. Rev. __ (2013), which argues that courts should
abandon the conventional view of patents as private rights for which
private-law remedies are appropriate, and instead should award damages and
injunctions only when, and to the extent that, doing so serves the public
interest for which patents are granted in the first place. Although some of
Sichelman’s specific recommendations are well within the mainstream of contemporary
patent scholarship, in particular some of his recommendations relating to
permanent injunctions and enhanced damages, he also argues that courts should
award monetary relief for patent infringement so as to align ex ante incentives
with ex post rewards; this could mean awarding either more or less than would
be necessary to restore the patentee to the position it would have occupied but
for the infringement (the traditional benchmark for compensatory damages).
Although I remain skeptical that such a system could ever work in the real
world, Sichelman defends his thesis with aplomb – and recognizes its practical
infeasibility in the near term. In addition, his analysis suggests that at
least in industries in which patents are unlikely to play a major role in
inducing invention, disclosure, or commercialization, efforts to ensure that
defendants restore patentees to the position they would have occupied, but for
the infringement, may not be worth the candle; some risk of undercompensation
may be more tolerable than is commonly assumed. I will suggest that this
implication, if valid, possibly could have some practical payoff even in the
short run.
I also posted an undated
version of a symposium piece that will be coming out in the Santa Clara Computer
& High Technology Law Journal, here. (The updates are pretty
modest, so if you've read the previous version there's probably no good great
urgency to reading this version.) Here is the abstract:
This essay, which
builds on my recent work on the law and economics of comparative patent
remedies, presents three proposals relating to the enforcement of domestic
patent rights. The first, which may be close to being adopted in the United
States, is for the courts and the International Trade Commission (ITC) to adopt
a general presumption, grounded in patent law and policy, that patent owners
who have committed to license their standard essential patents (SEPs) on fair,
reasonable, and nondiscriminatory terms are not entitled to permanent
injunctions or exclusion orders, but rather only to a damages in the form of an
ongoing royalty calculated on the basis of what a reasonable licensor and
licensee would have agreed to prior to the adoption of the standard in
question. Countries such as Germany that have addressed the issue of remedies
for the infringement of SEPs within the context of competition law, while
otherwise leaving in place an almost-automatic entitlement to permanent injunctive
relief, have in my view taken the wrong tack. Second, I argue that Congress
should amend Patent Act § 289, which permits design patent owners to recover
the infringer’s profits, so as to require that such awards reflect only the
profit derived from the use of the infringed design (and not the entire product
of which the design is a part). Such apportionment is the norm in other
countries (and in U.S. copyright and trademark law). By contrast, the archaic
U.S. design patent rule threatens substantial overdeterrence and
overcompensation, as reflected in the recent jury award in Apple v. Samsung. My
third suggestion — really more of a thought experiment inspired by Judge
Posner’s opinion in Apple v. Motorola than a serious proposal for reform — is
to consider whether it would be possible to eliminate the unique U.S. practice
of trial by jury in a wide swath of U.S. patent cases by statutorily recasting
awards of reasonable royalties as a form of equitable restitution rather than
as compensation.
No comments:
Post a Comment