tag:blogger.com,1999:blog-52025495701503019092024-03-18T08:15:08.281-07:00 Comparative Patent Remedies A Blog Devoted to the Comparative Law and Economics of Patent Remedies Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.comBlogger1709125tag:blogger.com,1999:blog-5202549570150301909.post-8873210445345427922024-03-18T08:14:00.000-07:002024-03-18T08:14:36.761-07:00Recovery for Springboard Convoyed Goods and Services in Germany<p><!--[if gte mso 9]><xml>
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</p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">The German Federal Supreme Court recently held that patentees can recover compensation for springboard convoyed goods and services. If you have no idea what I'm talking about, read on.<br /></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">The
decision is BGH, Judgment of Nov. 14, 2023, I ZR 30/21—<i>Polsterumarbeitungsmaschine</i>.<span style="mso-spacerun: yes;"> </span>It can be found in 2/2024 <i>Mitteilungen der
deutschen Patentanwälte</i> pp. 75-79; you can also find a short write-up about
the case by Dr. Matthias Meyer and Dr. Daniel Misch <a href="https://www.twobirds.com/en/patenthub/shared/insights/2024/germany/german-federal-supreme-court-solidifies-case-law-on-damages-for-patent-infringement">here</a>,
and an English-language machine translation courtesy of Dr. Tillman Müller-Stoy on
LinkedIn, <a href="https://www.linkedin.com/feed/update/urn:li:activity:7148382764466188288/">here</a>.
</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">The
patent in suit, EP 776 760, claimed a cushioning conversion machine (described
as “relating generally to a cushioning conversion machine which converts paper
stock into cushioning material”).<span style="mso-spacerun: yes;"> </span>The
lower court held that two types of machines sold by the defendants infringed.<span style="mso-spacerun: yes;"> </span>On the question of monetary recovery, however,
there were more than a few wrinkles.<span style="mso-spacerun: yes;"> One</span> such wrinkle is that, under German law, the general statute
of limitations for a claim for damages is only three years, and here the plaintiff was seeking compensation for harms preceding that period of time.<span style="mso-spacerun: yes;"> German law also provides, however, that</span> a claimant has up to ten years to recover a reasonable royalty or the defendant’s profit, under an unjust enrichment theory (for previous discussion on this
blog, see <a href="http://comparativepatentremedies.blogspot.com/2016/06/claims-for-residual-damages-under.html">here</a>).<span style="mso-spacerun: yes;"> A second wrinkle</span> is that the
plaintiff was seeking discovery (information and access to accounts, in German <i>Auskunft und Rechnungslegung</i>)
pertaining to sales of what in the U.S. would be referred to as “convoyed goods”:<span style="mso-spacerun: yes;"> </span>supplies for the infringing machines
(especially paper), as well as leasing and maintenance contracts.<span style="mso-spacerun: yes;"> </span>As I have previously noted in <a href="http://www.amazon.com/Comparative-Patent-Remedies-Economic-Analysis/dp/0199840652/ref=sr_1_1?ie=UTF8&qid=1368021621&sr=8-1&keywords=comparative+patent+remedies">my book</a> (p.272
& n.195), German courts “may award profits earned on convoyed goods (<i>Peripherigeräten</i>)
that are attributable to the sales of the infringing goods and not to other
factors,” and the BGH reaffirms that principle here subject to the caveat that the profits must be tied to the sales of products or services that are used with the patented subject matter (para. 39). The court states that the causal connection would not be sufficient in cases in which, for example, the plaintiff sought the recovery of income the defendant earned from reinvesting its ill-gotten gain, or from the fame the defendant derived from its infringement (para. 34).<span style="mso-spacerun: yes;"> </span>(In the U.S., by way of comparison, the patentee
can recover lost profits on sales of convoyed goods only if those goods “function
together . . . in some manner so as to produce a desired end product or
result,” in a manner “analogous to components of a single assembly or . . .
parts of a complete machine, or . . . constitute a functional unit,” and are
not merely sold together “as a matter of <span style="mso-spacerun: yes;"> </span>convenience or business advantage.”<span style="mso-spacerun: yes;"> </span>Rite-Hite Corp. v. Kelley Co., 56 F.3d 1538, 1550
(Fed. Cir. 1995) (en banc).<span style="mso-spacerun: yes;"> </span>For
discussion of the pros and cons of the U.S. rule, see my article with Roger
Blair, <a href="https://tiplj.org/wp-content/uploads/Volumes/v10/v10p1.pdf"><i>Rethinking Patent Damages</i>, 10 Tex. Intell. Prop. L.J. 1 (2001)</a>.)<span style="mso-spacerun: yes;"> </span>Third, the plaintiff was seeking discovery
on sales the defendant made of these convoyed goods <i>after</i> patent
expiration, but which the plaintiff asserts were caused by sales of infringing
machines that occurred <i>during</i> the term of protection. <span style="mso-spacerun: yes;"> </span>The court concludes that such springboard
damages (as they are referred to in English) are permissible under German law.<span style="mso-spacerun: yes;">
</span>(Where proven, such “springboard” damages also are allowed in the U.S.,
though springboard injunctions and related remedies such as destruction are not, as they are in the U.K. and Germany.<span style="mso-spacerun: yes;"> </span>For discussion, see my article with Chung-Lun
Shen, <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4459677"><i>Destruction, Proportionality, and Sustainabiltiy:<span style="mso-spacerun: yes;"> </span>A Law and Economic Analysis</i>, 32 Tex.
Intell. Prop. L.J. 111</a>, 123 n.53 (2024), and my article <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3705703"><i>Extraterritorial
Damages in Patent Law</i>, 39 Cardozo Arts & Enter. L.J. 1</a>, 32 (2021).) <span style="mso-spacerun: yes;"> </span>Along the way, the court also reaffirms the principle
(which I have previously noted and disagreed with, see <a href="http://comparativepatentremedies.blogspot.com/2013/05/recent-uk-and-german-decisions-on.html">here</a>) that (as in the
U.K.) the defendant’s ability to have earned the same profit by resorting to a
noninfringing alternative is irrelevant. <span style="mso-spacerun: yes;"> </span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">Presumably
the amount of the recovery will be determined, as needed, in future proceedings,
if the parties do not settle. </span></p>
Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-34521328647630334092024-03-14T07:42:00.000-07:002024-03-14T07:42:30.910-07:00Stief on Preliminary Injunctions Prior to Grant<div></div><div style="text-align: justify;">The issue of whether courts in EPO member states have authority to grant preliminary injunctions on the basis of pending patent applications has recently been litigated in a number of European countries (see previous mentions on this blog <a href="http://comparativepatentremedies.blogspot.com/2023/04/some-recent-papers-on-damages.html">here</a>, <a href="http://comparativepatentremedies.blogspot.com/2022/11/from-around-blogs.html">here</a>, <a href="http://comparativepatentremedies.blogspot.com/2022/09/from-around-blogs-mostly-injunctions.html">here</a>, and <a href="http://comparativepatentremedies.blogspot.com/2022/07/preliminary-injunctions-prior-to-grant.html">here</a>). Marco Stief has now published two papers, one in German and one in English, on the topic, noting that such injunctions appear to be permissible in some countries, albeit in several of them only in exceptional cases. His more recent contribution is <a href="https://academic.oup.com/jiplp/advance-article-abstract/doi/10.1093/jiplp/jpae024/7616612?redirectedFrom=fulltext"><i>Fingolimod—(no) injunction before patent grant,</i> J. Intell. Prop. L. & Prac. __ (forthcoming 2024)</a>. Here is the abstract:<div style="text-align: justify;"><blockquote>This article analyses the position of European courts on the availability of preliminary injunctions on the basis of a patent application, reviewing several national decisions in the fingolimod litigation. The decisions handed down by the Düsseldorf Regional Court, the Tribunal Judiciaire de Paris, the Danish Maritime and Commercial Court, the District Court of The Hague and the Barcelona Commercial Court show that the courts, with limited exceptions, reject provisional legal protection on the basis of a mere patent application on the grounds of absence of legal certainty. The analysis identifies four (minimum) prerequisites that must be fulfilled for the courts to consider the possibility of issuing an injunction before a patent is granted.</blockquote></div>The corresponding German article is <i>(Keine) Unterlassungsverfügung: Zugleich Besprechung von LG Düsseldorf „Fingolimod‟ unter Berücksichtigung von Parallel-Verfahren in anderen Jurisdiktionen,</i> ("No Preliminary Injunction: As Well as Case Law from the Düsseldorf Regional Court in "Fingolimod" in Consideration of Parallel Proceedings in Other Jurisdictions"), 23/2023 GRUR 1651-60.<br /><br />For a different point of view, see Matthieu Dhenne’s article <i>Preliminary Injunctions Based on a Patent Application: A Justified Solution? (Fingolimod Case)</i>, 45 EIPR 236 (2023), previously noted <a href="http://comparativepatentremedies.blogspot.com/2023/04/some-recent-papers-on-damages.html">here</a>, and his more recent post <i><a href="https://patentblog.kluweriplaw.com/2023/12/19/fingolimod-or-the-hesitation-blues-can-preliminary-injunctions-be-based-on-a-patent-application-under-french-law/">FINGOLIMOD or the Hesitation Blues: can preliminary injunctions be based on a patent application under French law?</a></i>, Kluwer Patent Blog, Dec. 19, 2023, which updates the French case law discussed in his earlier article and in the two Stief articles.<br /><br /></div>Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-28149365249245303812024-03-11T07:36:00.000-07:002024-03-11T07:36:38.110-07:00The UPC’s October 10, 2023 Decision in 10x Genomics<p><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">This may be less consequential now than it may have seemed a couple of weeks ago, before the UPC Court of Appeals decision referenced <a href="http://comparativepatentremedies.blogspot.com/2024/02/court-of-appeal-of-unifed-patent-court.html">here</a>, but readers may recall that there was a second decision last fall in which the Munich Local Division considered a preliminary injunction against Nanostring. As
far as I can tell, the second decision (dated Oct. 10, 2023)—which, in contrast to the first (Sept. 19,
2023) decision involving a different patent, denied the claimant’s request for
a preliminary injunction—is not available yet on the UPC’s website.<span style="mso-spacerun: yes;"> </span>But it is excerpted in the 4/2024 issue of
GRUR (pp. 199-205), and is the subject of a short article by Matthias Leistner
and Sebastian Berns in the same issue (pp. 184-87).<span style="mso-spacerun: yes;"> </span>As noted in this <a href="http://eplaw.org/upc-10x-genomics-harvard-v-nanostring/">earlier write-up in English by Tilman Müller-Stoy and Kerstin Galler on the EPLaw Blog</a>, in the second case the court was not persuaded that there was a sufficient probability of
infringement, or of validity of the claims as granted (in contrast to the claims
as amended pursuant to EPC article 105a), or of urgency (given that the patent in
suit was, unlike the unitary patent in suit in the first decision, a “bundle” patent
with effect in Germany, France, and the Netherlands, and the owner had not
sought preliminary relief in France or the Netherlands). </span></p>
Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-57320514197802763742024-03-07T07:43:00.000-08:002024-03-07T07:43:13.202-08:00Cotter and Shen on Destruction and Proportionality<p><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p><!--[if gte mso 9]><xml>
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<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">My article with
Professor Chung-Lun Shen, <i>Destruction, Proportionality, and Sustainability:
A Law-and-Economics Analysis</i>, 32 Texas Intellectual Property Law Journal
111 (2024), has now been published.<span style="mso-spacerun: yes;"> </span>It
is available on Westlaw and <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4459677">SSRN</a>, and should be available soon on TIPLJ’s
website.<span style="mso-spacerun: yes;"> </span>Here is the abstract:</span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">This Paper undertakes a
law-and-economics analysis of the remedy of destruction (and, subsidiarily, the
related remedies of recall and removal) of products that infringe intellectual
property (IP) rights. We begin with a brief survey of international, regional,
and domestic law and practice, observing that (1) courts generally are believed
to be more likely to order the destruction of copyright- and
trademark-infringing goods than of patent-infringing goods, and (2) the
frequency with which courts order the destruction of patent-infringing goods
varies from one country to another. Our observations lead us to present two
principal theses.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify; text-indent: -.5in;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">The first is that a comparative
reluctance to order the destruction of patent-infringing goods, as opposed to
copyright- or trademark-infringing goods, would be consistent with economic
considerations. From an economic standpoint, destruction can be viewed both as
a complement to injunctive relief and as a substitute (albeit an imperfect one)
for ongoing monitoring of an infringer’s compliance with the terms of an
injunction. The social benefits arising from substituting destruction for
monitoring, however, are likely to be lower—on average, and perhaps subject to
regional variation—for patent-infringing goods than for products that infringe
other IP rights. In addition, although observers have long noted that the
private and social costs of destruction provide a rationale for withholding
that remedy when it would cause disproportionate harm to the defendant or third
parties, these costs may be unusually high in patent cases—particularly that
subset of cases in which the risk of patent holdup is substantial. In view of
these factors, the social costs of ordering the destruction of
patent-infringing goods are likely to outweigh the social benefits in a
comparatively broader swath of cases. </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">In addition, I may as well note a paper I just came across in the
preceding volume of TIPLJ, Deepa Sundararaman & Cleve B. Tyler, <i>A
Detailed Study of Court Decisions on Admissibility of Intellectual Property
Damages Experts</i>, 32 Tex. Intell. Prop. L.J. 45 (2023).<span style="mso-spacerun: yes;"> </span><a href="https://tiplj.org/wp-content/uploads/Volumes/v32/32TIPLJ45_Sundararaman.pdf">Here</a> is a link to the paper, and here is the
abstract:</span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">Damages experts’ opinions in
intellectual property litigation are routinely challenged for failing to reach
standards set forth in the Supreme Court’s 1993 <i>Daubert</i> decision. Our
study is the first of its kind, in performing a systematic and in-depth review
of court decisions, including an analysis of the substantive reasons for
challenge. We studied more than 400 <i>Daubert</i> orders covering nearly 1,300
decisions over a six-year period from 2015 through 2020.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify; text-indent: -.5in;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">Patent cases make up a significant
majority of our dataset. Overall, we find an exclusion rate of 24%. While
plaintiff experts are challenged more frequently than defendant experts, their
exclusion rates are not significantly different. However, the type of analysis
challenged appears to matter—in particular, lost profits analyses are excluded
at lower rates than other types of analyses, and experts described as offering
legal opinions are excluded at higher rates. Exclusion rates vary by district,
with the Northern District of California (NDCA) having higher exclusion rates
and the Eastern District of Texas (EDTX) having lower exclusion rates than the
rest of the country. We study the impact of the Supreme Court’s <i>Heartland </i>decision
on exclusion rates, which has reduced a plaintiff’s ability to engage in “venue
shopping.” Overall, rates of exclusion in EDTX and Delaware declined following
the decision, with a moderate increase in exclusion rates in NDCA.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify; text-indent: -.5in;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">Finally, we find substantial
disparities in exclusion rates among judges. Among the top ten judges ranked by
number of decisions, five have relatively “low” exclusion rates of less than
15% and four have relatively “high” exclusion rates greater than 30%.
Variations such as these, along with differences by jurisdiction, raise
questions about courts’ consistency in application of the <i>Daubert</i>
standard—questions that are left for future researchers and policymakers to
address.</span></p>
Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-49468501570517103892024-03-04T08:26:00.000-08:002024-03-04T08:26:52.496-08:00Federal Circuit Vacates Preliminary Injunction<p><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">I am a little late reporting on this one. The case
is <i><a href="https://cafc.uscourts.gov/opinions-orders/22-2047.OPINION.2-16-2024_2271523.pdf">UATP IP, LLC v. Kangaroo, LLC</a></i>, decided on February 16, nonprecedential
opinion authored by Judge Chen, joined by Judges Reyna and Taranto.<span style="mso-spacerun: yes;"> </span>According to the opinion, the parties “are
operators of ‘adventure parks’—indoor play facilities that includes
trampolines, ziplines, ropes courses, and other attractions” (p.2).<span style="mso-spacerun: yes;"> </span>UATP filed suit against Kangaroo for
infringing U.S. Patent No. 10,702,729 (“Multi-level Play Equipment”) and also
for infringing its trade dress; it moved for a preliminary injunction some ten months
later.<span style="mso-spacerun: yes;"> </span>The district court granted the
preliminary injunction, “on the grounds that UATP was likely to succeed on the
merits of both its patent and trade dress infringement claims, and that UATP
was entitled to a rebuttable presumption of irreparable harm that Kangaroo failed
to rebut” (p.3). <span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">The
Federal Circuit reverses the order preliminarily enjoining patent infringement:</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">We find that UATP’s showing was
legally insufficient to demonstrate likelihood of success on the merits of its
patent infringement claim. “[W]hether performed at the preliminary injunction
stage or at some later stage in the course of a particular case, infringement
and validity analyses must be performed on a claim-by-claim basis.”</span> <i><span style="font-family: "Times New Roman",serif; font-size: 12pt;">Amazon.com, Inc.
v. Barnesandnoble.com, Inc</span></i><span style="font-family: "Times New Roman",serif; font-size: 12pt;">., 239 F.3d 1343, 1351 (Fed. Cir. 2001). But neither
UATP’s motion for preliminary injunction nor the Order ever identified any
claim of the ’729 patent that Kangaroo allegedly infringes. Instead of
comparing Kangaroo’s allegedly infringing equipment to any of the claims of the
’729 patent, UATP and the district court appear to have assumed that Kangaroo’s
equipment infringes the patent because it was previously used in an Urban Air
Adventure Park. But the district court never determined that Urban Air
Adventure Parks practice a specific claim of the ’729 patent. By assuming that
similarities between Kangaroo’s equipment and the equipment in an Urban Air
Adventure Park constitute infringement without any discussion of the claims, the
district court erred in finding a likelihood of success on the merits.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify; text-indent: -0.5in;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">The district court likewise erred
in failing to make any findings on irreparable harm, balance of the equities,
or the public interest in its analysis relating to UATP’s patent infringement
claim. See Fed. R. Civ. P. 52(a)(2) (“In granting or refusing an interlocutory
injunction, the court must [] state the findings and conclusions that support
its action.”) (pp. 4-5).</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">On
the trade dress claim, “the district court failed to make any findings on
whether UATP’s alleged trade dress was nonfunctional, inherently distinctive,
or had acquired secondary meaning. Instead, the district court found that
UATP’s “trade dress claim against Kangaroo is likely to succeed on the
merits, because it has shown that Kangaroo substantially imitated Urban Air’s
total image by using the same colors, attraction structures, and park layout.” .
. . <span style="mso-spacerun: yes;"> </span>The district court’s failure to
explain how it arrived at this finding in view of the relevant trade dress
likelihood of confusion factors . . . and failure to address the
non-functionality or distinctiveness of UATP’s alleged trade dress, render its
analysis too conclusory to permit meaningful appellate review” (p.6).<span style="mso-spacerun: yes;"> </span>Further:</span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">The district court’s findings
relating to irreparable harm are also deficient. First, the district court
erred in failing to address UATP’s ten-month delay in moving for a preliminary
injunction. . . . Second, the district court erred in finding that UATP was
entitled to a rebuttable presumption of irreparable harm under 15 U.S.C. §
1116(a). Section 1116(a) entitles a plaintiff seeking a preliminary injunction
under 15 U.S.C. § 1125 to a rebuttable presumption of irreparable harm “upon a
finding of likelihood of success on the merits for a violation.” Because the
district court’s analysis was premised on a flawed likelihood of success
finding, the court’s application of the presumption cannot stand. . . . </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">Finally, as with its analysis
relating to the patent infringement claim, the district court’s analysis
relating to the trade dress infringement claim failed to make sufficient findings
on the balance of the equities or the public interest (p.7)</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">The
court vacates and remands as to the trade dress claim.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">As
readers may recall from some of my previous posts, a ten-month delay in moving
for a preliminary injunction would strongly weigh against granting the
injunction under German law, which emphasizes <i>Dringlichkeit</i> (“urgency”).</span></p>
Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-62126900610656746942024-02-28T10:20:00.000-08:002024-02-28T10:28:57.812-08:00European Parliament Approves SEP Regulation<p style="text-align: justify;">Reports are coming in that the European Parliament has overwhelmingly approved the draft SEP Regulation that was proposed last spring. Stay tuned as more news arrives.</p><p style="text-align: justify;">I understand this was a first reading, and that the matter next goes to the European Council. Story by Maura O'Malley on the Global Legal Post <a href="https://www.globallegalpost.com/news/european-parliament-votes-through-controversial-patent-reforms-842647169">here</a>.<br /></p>Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-12358440880307166272024-02-27T06:55:00.000-08:002024-02-29T12:15:18.367-08:00Court of Appeal of the Unifed Patent Court Reverses Preliminary Injunction Against Nanostring <p style="text-align: justify;">I just read this report on <a href="https://www.juve-patent.com/cases/court-of-appeal-judges-pave-way-back-to-european-market-for-nanostring/">JUVE Patent</a> about the UPC Court of Appeals' reversal of the Munich Local Division's much-discussed September 19, 2023 grant of a preliminary injunction in favor of 10x against Nanostring. (For previous discussion on this blog, see <a href="http://comparativepatentremedies.blogspot.com/2024/02/two-new-papers-on-preliminary.html">here</a>.) <a href="https://www.unified-patent-court.org/en/node/576">Here</a> is a link to the relevant UPC webpage, with links to the decision in German and in English. The ground is likely invalidity of the patent in suit:</p><p style="text-align: justify;"></p><div style="text-align: justify;"><blockquote>Contrary to the opinion of the Court of First Instance, in the judgement of The Court of Appeal it is, on the balance of probability, more likely than not that the subject-mater of claim 1 in the version asserted in the main request will prove to be not patentable under Art. 65(2) UPCA, Art. 52(1), 138(1)(a) EPC (p.28, English language version).</blockquote></div><p style="text-align: justify;">Further:</p><div style="text-align: justify;"><blockquote>The application for a preliminary injunction is in any case unfounded because on the balance of probability it is more likely than not that the patent at issue will not prove to be valid even in the version of the auxiliary request (p.34). </blockquote></div><p style="text-align: justify;"></p><p style="text-align: justify;">I'll be spending some time today and into the week reviewing the decision more carefully, and may have to more to say in due time. </p><p style="text-align: justify;"><b><i>Update (2-29-2024):</i></b> Sarah Taylor and Julia Traumann have published an excellent summary and analysis of the Court of Appeals' decision on <a href="http://eplaw.org/upc-nanostring-v-10x-genomics-upc-court-of-appeals-first-substantive-decision-overturns-nanostring-preliminary-injunction-due-to-doubts-over-validity/">EPLaw</a>. Recommended! <br /></p><p style="text-align: justify;"><br /></p>Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-9069616921460620822024-02-26T11:04:00.000-08:002024-02-26T11:04:02.490-08:00Montefusco and Crespo on Spanish Eli Lilly v. Teva Decision
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><i><span style="font-family: "Times New Roman",serif; font-size: 12pt;"><span style="mso-spacerun: yes;"></span></span></i><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">A
post I published a few months ago titled <i><a href="http://comparativepatentremedies.blogspot.com/2023/11/recent-patent-damages-decision-of.html">Recent Patent Damages Decision of the Madrid Court of Appeal</a></i> began as follows:</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">A few weeks back Adrián Crespo
published a short post on the Kluwer Patent Blog titled Patent case: Judgment
no. 18/2023 of Madrid Court of Appeals (Section32) of 23 June 2023, Spain.<span style="mso-spacerun: yes;"> </span>The author writes that, as a result of the
decision, “generic companies wishing to launch at risk” should be aware that
“the first mover(s) will be held liable for triggering regulatory price
reduction and thus for the damages arising from the price gap between the
innovator and the generic, even if other third parties have launched at a later
point in time.”<span style="mso-spacerun: yes;"> </span>The post references a
longer summary of the decision on Kluwer IP Law, to which I do not have access,
but I was able to obtain a copy of the decision itself and will note a few things
about it below.<span style="mso-spacerun: yes;"> </span>(Here is a link to the
decision in the original Spanish, and here is a link to a machine translation.)</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">More
recently, Mr. Crespo and Josep Montefusco have published an article titled <i>Madrid
Court of Appeal Rules in Landmark Damages Case</i>, 46 EIPR 65 (2024).<span style="mso-spacerun: yes;"> </span>The abstract reads:</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">In a recent judgment, the Madrid
Court of Appeal (Section 32) has ruled in the landmark raloxifene patent
infringement case. The decision dealt <i>inter alia</i> with the allocation of
liability among patent infringers for triggering regulatory price reduction.
This comment considers the main implications of this precedent, which are
likely to shape future damages claims in Spain (an important market for
pharmaceutical products which, moreover, is not part of the Agreement on a
Unified Patent Court).</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">The
article provides a detailed analysis of the facts and the principal holdings.<span style="mso-spacerun: yes;"> </span>It concludes, first, that one of the decision’s important holdings is that “patentees and/or their licensees may claim
damages for losses suffered by their subsidiaries” (p.69).<span style="mso-spacerun: yes;"> </span>(By way of comparison, I would note that U.S.
law on this point is not altogether clear; for brief discussion and citations,
see <a href="http://comparativepatentremedies.blogspot.com/2016/10/from-around-blogs-inexorable-flow-in-us.html">my post dated Oct. 26, 2016</a>, noting Mark
Lemley’s critique of Federal Circuit case law that generally precludes a
patentee from recovering losses suffered by its exclusive licensee, and
district court cases considering the “inexorable flow” doctrine, under which a
parent may under some circumstances recover for losses suffered by a
subsidiary.<span style="mso-spacerun: yes;"> </span>In a somewhat related vein,
see also <a href="http://comparativepatentremedies.blogspot.com/2023/11/do-nonexclusive-licensees-have-standing.html">my post dated Nov. 20, 2023</a>, discussing some recent French and
Canadian cases addressing <span style="mso-spacerun: yes;"> </span>standing to sue
of licensees and related companies. )<span style="mso-spacerun: yes;"> </span>Second,
the article notes the significance of the court’s holding that the first
generic in the market can be liable for a subsequent price reduction even if
other entrants follow, and considers its implications and possible nuances. </span></p>
Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-48008771566267431712024-02-15T08:27:00.000-08:002024-02-15T08:28:13.555-08:00Picht on the European Commission's Draft SEP Regulation<p><!--[if gte mso 9]><xml>
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</p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif;">Peter Picht has two papers out on the European Commission’s draft SEP regulation.<span style="mso-spacerun: yes;"> </span>The first, available on ssrn, is <i>The Draft EU
SEP Regulation: Issue Spotting</i>.<span style="mso-spacerun: yes;"> </span><a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4595731&dgcid=ejournal_htmlemail_intellectual%3Aproperty%3Apatent%3Alaw%3Aejournal_abstractlink">Here</a> is
a link to the paper, and here is the abstract: </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif;">The draft EU SEP Regulation has already triggered
vivid debate. The purpose of this issue spotting paper is not to reflect on
fundamental questions, such as whether there should be a Regulation at all and
whether it should apply the main concepts of the current draft. The author will
address such concerns elsewhere. Instead, the issue spotting accepts – as it
were – the legislative concept as a given, looks at where the draft provisions
seem not to implement this concept in a coherent and reasonable manner, and
makes suggestions for improvement.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif;">As the abstract
indicates, this paper goes through the regulation, recital-by-recital and
provision-by-provision, making numerous observations and suggestions.<span style="mso-spacerun: yes;"> </span>The other paper is <i>The Draft SEP
Regulation:<span style="mso-spacerun: yes;"> </span>Status and Issues</i>, 2024
GRUR 83-95.<span style="mso-spacerun: yes;"> </span>Here is the abstract:</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif;">The draft SEP regulation is a momentous, but also
complex and ambitious undertaking.<span style="mso-spacerun: yes;"> </span>One can
question whether regulation along the draft’s lines should be undertaken at
all.<span style="mso-spacerun: yes;"> </span>In any case, key parts of the
current concept need revision and improvement.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif;"></span></p>
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: center;"><span style="font-family: "Times New Roman",serif;">* <span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>*<span style="mso-spacerun: yes;"> </span>*</span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif;">I will take a
blogging break for the coming week, as I have a backlog of administrative work,
among other matters, to catch up on.<span style="mso-spacerun: yes;"> </span>I
shall resume the week of February 26. </span></p>
Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-60846795136739666362024-02-12T08:06:00.000-08:002024-02-26T11:40:53.557-08:00 Two New Papers on Preliminary Injunctions in the UPC<p></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">1.<span style="mso-spacerun: yes;"> </span>In September and October 2023, the Munich
Local Division of the UPC decided two applications for preliminary injunctions,
both filed by 10x Genomics, Inc. and the President and Fellows of Harvard
College against NanoString Technologies Inc., NanoString Technologies Germany
GmbH, and NanoString Technologies Netherlands B.V. <span style="mso-spacerun: yes;"> </span>The decision in the first case, UPC CFI 2/2023,
is available on the <a href="https://www.unified-patent-court.org/en/node/419">UPC’s website</a> in the original German and in
English.<span style="mso-spacerun: yes;"> </span>I have previously noted other
commentary on the first decision, which resulted in the granting of a
preliminary injunction, <a href="http://comparativepatentremedies.blogspot.com/2023/11/some-recent-posts-and-articles-on.html">here</a>; the second decision, which denied the request for
preliminary relief, has been noted <a href="https://patentblog.kluweriplaw.com/2023/10/12/unified-patent-court-no-second-preliminary-injunction-for-10x-genomics-against-nanostring/">here</a>. </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">Matthias
Leistner has now published an article titled <i>Einstweilige Unterlassungsverfügung
des EPG wegen patentverletzung:<span style="mso-spacerun: yes;"> </span>Die
Lokalkammer München bohrt dicke Bretter </i>(“Preliminary Injunctions in the
UPC against Patent Infringement:<span style="mso-spacerun: yes;"> </span>The Munich
Local Division Tackles Some Hard Problems”), GRUR 22/2023, 1578-86.<span style="mso-spacerun: yes;"> </span>(The idiom “bohrt dicke Bretter” literally
means “drills thick boards.”)<span style="mso-spacerun: yes;"> </span>Here is
the abstract, in my translation from the German:</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">The first decision on the merits of
the Munich Local Division of the UPC touches on numerous essential procedural
and substantive questions:<span style="mso-spacerun: yes;"> </span>the wording of
the request and its relationship with the patent claims and the inquiry into
validity; orders concerning validity in expedited proceedings and relatedly the
burdens of pleading and proof; the need for legal protection and urgency;
objections and proportionality—just to state the most important.<span style="mso-spacerun: yes;"> </span>The Local Division is off to a good
start.<span style="mso-spacerun: yes;"> </span>In the following, the decision is
analyzed for purposes of practice and discussed. <br /></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">Dr.
Leistner compares the decision to Hermione’s handbag in Harry Potter, in terms
of the number of things that the court fit into one package. More seriously, Dr. Leistner approves of the court's adoption of the "preponderant likelihood" (</span><span style="font-family: "Times New Roman",serif; font-size: 12pt;"><i>überwiegende Wahrscheinlichkeit</i>) </span><span style="font-family: "Times New Roman",serif; font-size: 12pt;">test for evaluating validity, as opposed to something more stringent, in view of the fact (also noted by the commentator below) that the UPC can call upon the expertise of technically qualified judges--though he also notes that in addition the UPC (correctly) considers the probability of infringement and validity as having some relevance to the overall balancing of the interests of the parties. He also expresses concern that, if the defendant is excluded from the market on the basis of a patent that is subsequently invalidated and, under the CJEU's decision in <i>Bayer v. Richter</i>, is denied compensation ex post, the defendant's harm may turn out to be (unnecessarily) irreparable. (It is to be hoped that the CJEU's somewhat surprising partial about-face in <i>Mylan v. Gilead </i>(see <a href="http://comparativepatentremedies.blogspot.com/2024/01/some-thoughts-on-cjeus-decision-in.html">here</a>) may help to alleviate this concern.) Finally, the author argues that, although the court rejected the defendant's arguments that granting the preliminary injunction would be disproportionate, the fact that it gave careful consideration to those arguments may mean that in other (albeit uncommon) cases, on other specific facts, the facts that the accused product is a "complex" product or that the plaintiff is an NPE, could be relevant. <br /></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">2.
Tilmann Müller-Stoy has published an article titled <i>Prüfungsmaßstab für den
Rechtsbestand bei einstweiligen Anordnungen vor dem Einheitlichen Patentgericht</i>,
(“Standards for Evaluating Validity in regard to Provisional Orders before the
UPC”), Mitteilungen der deutschen Patentanwälte 11/2023, 486-89.<span style="mso-spacerun: yes;"> </span>Here is the abstract, again in my
translation:</span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">The UPC finally commenced
operations on June 1, 2023.<span style="mso-spacerun: yes;"> </span>Among the
first proceedings lodged were related motions requesting provisional
measures.<span style="mso-spacerun: yes;"> </span>This raises the practically
significant question of what legal standard the UPC should adopt for evaluating
validity in connection with motions for preliminary relief.<span style="mso-spacerun: yes;"> </span>Above all, a new system for resolving patent
disputes needs standards that are as clear and understandable as possible.<span style="mso-spacerun: yes;"> </span>An overly flexible, necessarily vague
standard undermines predictability and does not adequately conform to these
requirements.<span style="mso-spacerun: yes;"> </span>In consideration of the
text of the provisions the UPC is to apply and especially in view of the fact,
that aside from legally qualified judges technically qualified judges have been
appointed, it should be decisive whether, after rigorous examination, validity
is more probable than invalidity.<span style="mso-spacerun: yes;">
</span>Remaining doubts can be taken into account relative to their weight and in
combination with whatever other factors inform judicial discretion of how to
balance the relevant interests. Thus are <span style="mso-spacerun: yes;"> </span>justice and reasonableness served in the
individual case.</span></p>
Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-73126141428946840252024-02-07T07:50:00.000-08:002024-02-07T07:50:02.336-08:00A Couple of More New Papers on Proportionality and Injunctions<p><!--[if gte mso 9]><xml>
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</p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">1. Maciej
Padamczyk and Duncan Matthews posted a paper on ssrn titled <i>Proportionality
and Patent Injunctions</i>, which also appears as a chapter in <i>European
Patent Law: The Unified Patent Court and the European Patent Convention</i> (D.
Matthews & P. Torremans, eds., De Gruyter 2023).<span style="mso-spacerun: yes;"> </span><a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4645556&dgcid=ejournal_htmlemail_intellectual%3Aproperty%3Apatent%3Alaw%3Aejournal_abstractlink">Here</a> is a link to the paper, and here is the
abstract:</span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">This chapter assesses how the
concept of proportionality might be applied in the context of rising concerns
about the perceived undesirable outcomes of final injunctions in patent cases,
especially before the newly established Unified Patent Court (UPC), authorized
to issue injunctions covering the territories of all Contracting Member States.
First, the chapter discusses the policy considerations underlying the issuance
of injunctions in patent cases, including the problem of anticommons, royalty
stacking, non-practicing entities and patent trolls. Then, it proceeds to
explain the theoretical interpretations of the concept of proportionality and
its application on the international, i.e., WTO and EU, and national level,
with examples from the Unites States, United Kingdom and Germany. Subsequently,
an attempts is made to predict how the concept of proportionality might impact
the jurisprudence of the UPC. Finally, the chapter then discusses preliminary
injunctions, underlining their specific character as compared to final
injunctions. It concludes that the likely future use of proportionality in
patent injunctions cases will depend on the general understanding of the role
of the patent system and the society’s convictions as regards its utility.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">2. Léon
Dijkman published <i>Verhältnismäßigkeit im Patentrecht:<span style="mso-spacerun: yes;"> </span>Der dritte Weg</i> ("Proportionality in Patent Law: The Third Way"), 24/2023 GRUR 1737.<span style="mso-spacerun: yes;"> </span>Here is the abstract, in my translation from
the German:</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">The narrow perspective on
proportionality in patent law, under which proportionality contributes nothing
to the existing protections for infringers, is no longer sustainable,
in view of economic, technological and legal developments, especially the
European rights framework for the enforcement of patents.<span style="mso-spacerun: yes;"> </span>Nevertheless, critics are right to assert that incorporating
a balancing of interests into claims for injunctive relief, as the broad
perspective advocates, would lead to legal uncertainty and arbitrary
outcomes.<span style="mso-spacerun: yes;"> </span>A proportionality test therefore
must be developed, which I sketch out in this article. </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">The
article summarizes some of the content set forth in greater detail in Dr. Dijkman’s
new book <i><span style="color: blue;"><a href="https://www.bloomsbury.com/uk/proportionality-test-in-european-patent-law-9781509973620/">The
Proportionality Test in European Patent Law Patent Injunctions Before EU Courts
and the UPC</a></span></i> (Hart Publishing 2023) <i>The Proportionality Test
in European Patent Law</i>, previously noted <a href="http://comparativepatentremedies.blogspot.com/2023/12/dijkman-on-proportionality.html">here</a>. </span></p>
Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-63046631910062439352024-02-04T19:24:00.000-08:002024-02-04T19:27:07.090-08:00In Memoriam: Dan Burk<p style="text-align: justify;">I just heard the news that Professor Dan Burk has died. Dan was one of the all-time greats in IP law, and my former colleague for a period of time when he taught at the University of Minnesota. He will be missed.</p><p style="text-align: justify;">A previously-planned <a href="https://www.law.uci.edu/faculty/full-time/burk/event2023/">Celebration of Professor Dan Burk's Scholarly Contributions</a> will be held at UC-Irvine this coming Friday. </p><p style="text-align: center;"><span style="font-size: x-small;"><img alt="Dan L. Burk" class="profile-img img-top" height="320" src="https://www.law.uci.edu/faculty/full-time/images/520x580/burk.jpg" width="287" /></span></p><p style="text-align: justify;"><br /></p>Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-2008427485313598752024-01-31T10:18:00.000-08:002024-01-31T10:18:49.345-08:00Federal Circuit Affirms Denial of Preliminary Injunction<p><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">The nonprecedential
decision is <i><a href="https://cafc.uscourts.gov/opinions-orders/23-1058.OPINION.1-31-2024_2262696.pdf">SmartSky Networks, LLC v. GoGo Business Aviation, LLC</a></i>,
opinion by Judge Cunningham, joined by Judges Chen and Hughes.<span style="mso-spacerun: yes;"> </span>The parties
are “competitors as business aviation network providers, both offering air-to-ground
(‘ATG’) networks that provide broadband in-flight internet connections to
aircrafts” (p.2).<span style="mso-spacerun: yes;"> </span>SmartSky filed suit, “alleging
that GoGo’s 5G network infringes claims of</span><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">”</span><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"> four patents relating “to technology
that enables wireless in-flight internet connections</span><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">”</span><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"> (<i>id.</i>).<span style="mso-spacerun: yes;"> </span>SmartSky also moved for a preliminary injunction
against GoGo’s manufacture, use, sale, or offering to sell its 5G network.<span style="mso-spacerun: yes;"> </span>The district court denied the motion,
concluding that SmartSky had not proven a likelihood of success on the merits
or irreparable harm.<span style="mso-spacerun: yes;"> </span>The Federal Circuit
perceives no abuse of discretion and therefore affirms, finding it necessary to
consider only the irreparable harm arguments. <span style="mso-spacerun: yes;"> </span>From the opinion (which, though
nonprecedential, does cover a lot of ground on how one might go about trying to prove
irreparable harm):</span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">SmartSky has the burden of
establishing that it is likely to suffer irreparable harm absent a preliminary
injunction and that there is a causal nexus between the alleged infringement
and the alleged harm. . . . . Price erosion, loss of goodwill, damage to reputation,
and loss of business opportunities are examples of possible grounds for finding
irreparable harm. . . .</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify; text-indent: -.5in;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">. . . We find SmartSky’s lost sales
arguments unpersuasive as to Gogo’s 5G network. SmartSky itself concedes that Gogo’s
5G network has not been released. . . . Even accepting SmartSky’s argument that
the district court should have relied on evidence that Gogo’s accused 5G
network has been offered for sale since October 2021, Appellant’s Br. 50, the
district court did not abuse its discretion in finding that any lost sales and
service revenue through the date of trial is quantifiable because SmartSky’s
own expert conceded to this conclusion. . . . </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify; text-indent: -.5in;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">. . . SmartSky has not pointed us
to any additional evidence in the record that suggests that any consumers who
chose Gogo’s 5G network would have chosen SmartSky’s product rather than, for
example, Gogo’s unaccused 4G product or a non-infringing product offered by
another provider of in-flight connectivity service. Furthermore, although “the
existence of a two-player market may . . . create[] an inference that an
infringing sale amounts to a lost sale for the patentee,” <i>Robert Bosch LLC
v. Pylon Mfg. Corp</i>., 659 F.3d 1142, 1151 (Fed. Cir. 2011), SmartSky’s argument
fails because the district court never made a finding that SmartSky and Gogo
are the only two competitors in the relevant market. . . . </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify; text-indent: -.5in;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">SmartSky also argues that the
district court erred in deeming its price erosion theory of irreparable harm
speculative by ignoring testimony from SmartSky’s president alleging that
customers used Gogo’s pricing to negotiate price reductions from SmartSky.
Appellant’s Br. 55–56. </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify; text-indent: -.5in;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">We find this argument unpersuasive.
In previous cases, we have required concrete evidence of reduced price to find
price erosion. . . . Such concrete evidence is not present in the testimony of
SmartSky’s president. The cited testimony shows that a few potential customers
requested a price decrease in light of Gogo’s 4G network pricing, not that
SmartSky lowered its price because of the launch of Gogo’s 5G network. J.A.
9594, 9597–99, 9602–03. Furthermore, SmartSky’s president conceded that
SmartSky set its prices before Gogo announced the prices of its 5G network. . .
(pp. 6-10).</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">The
court further agrees that SmartSky did not show any irreparable harm to its reputation
or goodwill, or “irreparable harm based on past and future lost R&D and
investments” (p.12); and that evidence that the two parties are competitors and
that customers are “sticky” (tend to stick with the same provider) was insufficient.<span style="mso-spacerun: yes;"> </span>Evidence, comparable to what has sufficed in
other cases, “of the loss of a few important customers is not present in this
case” (pp. 13-14).</span></p>
Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-49488983990694929002024-01-30T12:49:00.000-08:002024-01-30T12:49:36.676-08:00Jury Awards $67.5 Million in G+ v. Samsung Case<p><!--[if gte mso 9]><xml>
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</p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">I
have blogged twice recently about interim decisions in this case (see <a href="http://comparativepatentremedies.blogspot.com/2024/01/surprise-licensors-mid-negotiation.html">here</a> and
<a href="http://comparativepatentremedies.blogspot.com/2024/01/frand-commitment-to-etsi-is-irrevocable.html">here</a>).<span style="mso-spacerun: yes;"> </span>This past Friday, the jury
returned a verdict of $67.5 million for the patentee, G+. <span style="mso-spacerun: yes;"> </span>There were three patents, and four claims
altogether, in suit.<span style="mso-spacerun: yes;"> </span>According to the
verdict form, the jury found claim 10 of U.S. Patent No. 10,564,443 to be patent-ineligible.<span style="mso-spacerun: yes;"> </span>For the two remaining patents in suit, the
jury awarded $45,000,000 for the infringement of U.S. Patent No. 8,761,776, and
half that much or $22,500,000, for U.S. Patent No. 10,736,130.<span style="mso-spacerun: yes;"> </span>(Without delving into the record, I would guess
that the awards for these two patents, both essential to 5G technology,
reflects the more recent date of issue of the latter of the two.)<span style="mso-spacerun: yes;"> </span>Both awards are said to be running royalties,
so barring a settlement I would expect a hearing to set the amount of any
ongoing royalty that may still be due.<span style="mso-spacerun: yes;">
</span>The jury also concluded that neither party breached its FRAND obligation
to act in good faith, so there are no further damages under that heading.<span style="mso-spacerun: yes;"> </span>According to <a href="https://www.law360.com/ip/articles/1790364?nl_pk=308c6784-a4c8-421f-874f-44f1b7c902b8&utm_source=newsletter&utm_medium=email&utm_campaign=ip&utm_content=2024-01-29&read_main=1&nlsidx=0&nlaidx=1">Law360</a>, G+ withdrew its claim
for willful infringement following <a href="http://comparativepatentremedies.blogspot.com/2024/01/surprise-licensors-mid-negotiation.html">the court’s decision earlier this month</a> that
Samsung could argue it was unaware that G+’s predecessor in interest, ZTE
Corp., had not already licensed Samsung the patents in suit.<span style="mso-spacerun: yes;"> </span> <br /></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">The
verdict form is available <a href="https://drive.google.com/file/d/1MUOZjXXvzdhrViVoCcu8nPuPMXnQkHAK/view?usp=sharing">here</a>.</span></p>
Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-80312091007284769632024-01-25T13:53:00.000-08:002024-01-25T13:53:48.545-08:00FRAND Commitment to ETSI Is Irrevocable, But Can Be Suspended<p><!--[if gte mso 9]><xml>
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</p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Judge
Gilstrap reached the above conclusion in a decision earlier this week in <a href="https://drive.google.com/file/d/1PGXkdD5vGpJNyw1psYdTtDxqQksIrlVL/view?usp=sharing"><i>G+
Communications, LLC v. Samsung Electronics Co.</i>, Civil Action No.
2:22-CV-00078-JRG</a>.<span style="mso-spacerun: yes;"> </span>The conclusion comes
in response to a request by Samsung that the court “make the following
determination of French law:<span style="mso-spacerun: yes;"> </span>French law
does not allow a SEP declarant to unilaterally discharge (and thus avoid) its
irrevocable FRAND obligations, including its duty to negotiate in good faith
and its obligation to license declared patents on FRAND terms” (p.5).<span style="mso-spacerun: yes;"> </span>The court agrees that the commitment is irrevocable,
as stated in <a href="https://www.etsi.org/images/files/IPR/etsi-ipr-policy.pdf">Clause 6.1 of the ETSI IPR Policy</a>, but that it can be suspended during the period of time, if any, that the
opposite party fails to discharge its obligation to negotiate in good faith:</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"> </span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">The Court is persuaded that the
obligation to negotiate toward a FRAND license in good faith may be temporarily
suspended. . . . First, G+ and Samsung are subject to reciprocal obligations of
good faith during negotiations for a license to a FRAND-encumbered patent. The
parties’ experts agree on this point. . . . Next, one party’s failure to fulfil
its obligation to negotiate in good faith suspends the other’s. . . . Indeed,
Samsung’s own expert, Professor Molfessis, testified that “[w]hen in presence
of reciprocal obligations a party doesn’t perform its obligation, it’s possible
for the other party to ask for the termination of the contract <b><i>or to
suspend its own obligation</i></b>.” (Dkt. No. 552-1 at 49:3–7 (emphasis
supplied).) . . .</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify; text-indent: -0.5in;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">SEP holders maintain an obligation
to license its [sic] SEPs on FRAND terms and to negotiate toward such licenses
in good faith. These obligations are irrevocable in the sense that SEP holders cannot
withdraw them or take them back. However, their irrevocable nature does not
mean they are static. </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify; text-indent: -0.5in;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">. . . It is both practical and
logical that the obligations of a party acting in good faith be suspended when
a counterparty to a negotiation for a FRAND license is acting in bad faith. If
the counterparty is acting in bad faith, it is impossible for negotiations for
a “fair” and “reasonable” and “non-discriminatory” contract to proceed. . . . To
hold otherwise would strain logic and reason. However, when the counterparty
ceases acting in bad faith, the barrier to consummation of the license on FRAND
terms is removed and the negotiations can and must resume (in good faith).
Further, holding that a party’s duty to negotiate in good faith is suspended while
the counterparty is acting in bad faith prevents the party acting in good faith
from being taken advantage of by the counterparty. Such a suspension can
counter the effects of holding up and holding out. . . . </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify; text-indent: -0.5in;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">For the reasons and supporting
sources noted herein, the Court makes the following determination of French law
pursuant to FRCP 44.1:</span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"> <br /></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: 1.0in; margin-right: 1.0in; margin-top: 0in; margin: 0in 1in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">Where a patent is
contributed to an adopted standard established by a standard setting
organization, such contribution contractually burdens the patent to thereafter be
licensed on fair, reasonable, and non-discriminatory terms. This is known as
the FRAND obligation. This obligation is irrevocable, and thereafter runs with
the patent. However, if in negotiating for a license to a patent burdened by a
FRAND obligation either the patent holder or the implementer of the adopted
standard fails to act in good faith and thereby prevents a license from being
granted, the other party’s obligation to continue negotiations is suspended.
This does not remove the burden of the FRAND obligation from the patent, but
avoids obliging a party acting in good faith to continue negotiating with a
party who fails to do so. If the bad faith actor ceases its bad faith and
begins acting in good faith, the good faith negotiations must also resume (pp. 6-11).</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"> Hat
tip to my former student Michael Sikora, for calling this decision to my
attention.</span></p>
Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-8158893636045723682024-01-23T07:59:00.000-08:002024-01-23T08:00:20.108-08:00From Around the Blogs<p><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: georgia; font-size: small;">1.<span> </span>On Sufficient Description, Norman Siebrasse
has (I think) completed his insightful multipart series on <i><a href="https://scc-csc.lexum.com/scc-csc/scc-csc/en/item/19554/index.do">Nova v. Dow</a></i>, the
Canadian Supreme Court decision addressing the noninfringing alternative
concept in the context of an accounting of the infringer’s profit.<span> </span>The installments are available <a href="http://www.sufficientdescription.com/2023/09/nova-v-dow-summary-of-summary.html">here</a>, <a href="http://www.sufficientdescription.com/2023/09/nova-v-dow-causation-concept-in-absence.html">here</a>, <a href="http://www.sufficientdescription.com/2023/09/nova-v-dow-what-is-nio.html">here</a>,
<a href="http://www.sufficientdescription.com/2023/09/nova-v-dow-value-of-invention.html">here</a>, <a href="http://www.sufficientdescription.com/2023/09/nova-v-dow-rivett-on-facts.html">here</a>, <a href="http://www.sufficientdescription.com/2023/10/nova-v-dow-three-policy-arguments.html">here</a>, <a href="http://www.sufficientdescription.com/2023/11/nova-v-dow-source-of-chilling-effect.html">here</a>, <a href="http://www.sufficientdescription.com/2023/11/nova-v-dow-miscellaneous-policy-issues.html">here</a>, <a href="http://www.sufficientdescription.com/2023/12/nova-v-dow-doctrinal-implications.html">here</a>, and <a href="http://www.sufficientdescription.com/2024/01/nova-v-dow-will-nova-v-dow-create.html">here</a>. <span></span>He
also published a post last week titled <a href="http://www.sufficientdescription.com/2024/01/what-is-evidentiary-threshold-for.html"><i>What Is the Evidentiary Threshold for
Denying a Permanent Injunction on Public Interest Grounds?</i></a>, discussing the
Federal Court’s recent decision denying AbbVie an injunction against JAMP’s
marketing of a generic version of a patented drug (previously noted <a href="http://comparativepatentremedies.blogspot.com/2023/12/canadian-court-denies-permanent.html">here</a>).<span> </span>And, while I’m at it, I may as well noted a post
he published in November that I overlooked at the time, titled <i><a href="http://www.sufficientdescription.com/2023/11/the-uk-approach-to-electing-accounting.html">The UK Approach to Electing an Accounting</a></i>, in which he takes issue with a strand
of U.K. case law that allows the patentee to opt for an accounting of profits
if the quantum will be higher than an award of actual damages.<span> </span>As Professor Siebrasse argues, awarding a
supracompensatory remedy should be permitted only if there is some rational policy
reason for doing so, e.g., the need to deter a type of infringement that
otherwise might go undetected. <span> </span><span> </span>And yet another post I overlooked at the time
is this one from September, titled <i><a href="http://www.sufficientdescription.com/2023/09/what-causation-concept-is-to-be-used-in.html">What Causation Concept Is to Be Used in Allocating Fixed Costs?</a>, </i>which uses both <i>Nova v. Dow </i>and a recent
Federal Court of Appeal case (<a href="https://decisions.fca-caf.gc.ca/fca-caf/decisions/en/item/521254/index.do"><i>GreenBlue Urban North America Inc. v. DeepRoot
Green Infrastructure, LLC</i>, 2023 FCA 184</a>), to illustrate the difficulties in
determining the appropriate way to deduct fixed costs, if such a deduction is
required, when trying to calculate the infringer’s profit.<i> </i></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: georgia; font-size: small;">2. On
the Kluwer Patent Blog, Chloe Dickson published a post titled <i><a href="https://patentblog.kluweriplaw.com/2023/11/14/philip-morris-v-nicoventures-e-cigarettes-light-up-the-doctrine-of-equivalents-and-arrow-declarations/">Philip Morris v Nicoventures—e-cigarettes light up the doctrine of equivalents and Arrow declarations</a></i>.<span> </span>An <i>Arrow</i>
declaration is a type of discretionary remedy, whereby the claimant seeks a declaration
that a product the claimant has launched or is planning to launch lacks or would
have lacked novelty or inventive step as of a particular date (and therefore,
by implication, cannot infringe the opposing party’s pending patent(s)).<span> </span>In the <a href="https://www.bailii.org/ew/cases/EWHC/Patents/2023/2616.html">decision</a> at issue, Justice Hacon sets
out the following principles that are relevant for granting such a declaration:</span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify; text-indent: -0.5in;"><span style="font-family: georgia; font-size: small;"> </span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;">(1) The court has a broad and flexible discretion to grant
Arrow declaratory relief, <i>Mexichem</i> at [13].</span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;"> </span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;">(2) The circumstances in which an Arrow declaration will be
justified are likely to be uncommon, <i>Fujifilm </i>at [95].</span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify; text-indent: -0.5in;"><span style="font-family: georgia; font-size: small;"> </span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;">(3) The discretion should be exercised only where the
declaration will serve a useful purpose, which requires critical examination by
the court, <i>Glaxo </i>at [25]; <i>Mexichem </i>at [13].</span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify; text-indent: -0.5in;"><span style="font-family: georgia; font-size: small;"> </span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;">(4) The requirement of a useful purpose will not be
fulfilled solely because the respondent has pending patent applications and the
applicant would like to know whether it will infringe any patents which may be
granted pursuant to those applications, <i>Fujifilm</i> at [93] and [94(iv))
and (v)]; <i>Glaxo </i>at [25].</span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify; text-indent: -0.5in;"><span style="font-family: georgia; font-size: small;"> </span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;">(5) The usual course envisaged by the statute is that the
applicant should wait and see what, if any, patents are granted and where
necessary use the remedy of revocation, <i>Fujifilm</i> at [93].</span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify; text-indent: -0.5in;"><span style="font-family: georgia; font-size: small;"> </span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;">(6) Where it appears that the statutory remedy of
revocation is being frustrated by shielding the subject-matter from scrutiny by
the national court, this may be a reason for the court to intervene with a
declaration, <i>Fujifilm</i> at [93].</span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;"> </span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;">(7) The court must guard against the application being used
as a disguised attack on the validity of a granted patent, <i>Fujifilm </i>at
[81]-[82] and [98(ii)].</span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify; text-indent: -0.5in;"><span style="font-family: georgia; font-size: small;"> </span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;">(8) A declaration may be sought in relation to one or more
features of a product or process, as opposed to a product or process in its
entirety, <i>Mexichem </i>at [18]-[20].</span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify; text-indent: -0.5in;"><span style="font-family: georgia; font-size: small;"> </span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;">(9) Where a declaration is sought in respect of only one
feature or some features of a product or process, the level of generality of
the proposed declaration may be relevant to whether it serves a useful purpose,
<i>Mexichem </i>at [18].</span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;"> </span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;">(10) The court may take into account the possibility that a
declaration is likely to be useful solely in arguments on obviousness in which
it is deployed in an illegitimate step-by-step analysis of obviousness,
although it may be difficult to know that this is likely to arise, <i>Mexichem </i>[22]-[25].</span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;"> </span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;">(11) The features in respect of which the declaration is
sought must be defined with sufficient clarity, <i>Glaxo </i>at [30].</span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify; text-indent: -0.5in;"><span style="font-family: georgia; font-size: small;"> </span></p>
<p style="margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;">(12) Equally, the useful purpose said to justify the
declaration must be clearly identified, <i>Mexichem</i> at [13]. . . .</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify; text-indent: -0.5in;"><span style="font-family: georgia; font-size: small;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;">(13) Subject always to the
qualifications referred to in (7), (11) and (12) above, an Arrow declaration is
likely to serve a useful purpose if the applicant can show that (a) the
respondent's portfolio of patent applications and/or patents creates real
doubt, likely to continue for a significant period, as to whether technical
subject-matter which the applicant wishes to exploit can lawfully be used, (b)
the applicant's reasonable intention to exploit that subject-matter would be of
significant commercial advantage to it and (c) the declaration sought would, if
granted, eliminate or significantly reduce the delay.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify; text-indent: -0.5in;"><span style="font-family: georgia; font-size: small;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;">In this context
"significant" means cumulatively sufficient to warrant the
intervention of the court.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: georgia; font-size: small;">(14) The court will more readily find
that there is a useful purpose where the respondent's behaviour has been
consistent with an intent to prolong the doubt (paras. 190, 198).</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: georgia; font-size: small;"> On
the</span><span style="font-family: georgia; font-size: small;"> facts, the court declines to exercise its discretion to grant the declaration.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: georgia; font-size: small;">3. Of
relevance to remedies but also broader issues of subject matter jurisdict</span><span style="font-family: georgia; font-size: small;"><span>ion and
procedure is an article by Ruixue Ran, Thomas Garten, and Justin Wang on
Law360, titled <a href="https://www.law360.com/ip/articles/1770726?nl_pk=6833c699-1630-4762-8ef0-48b6036f0bb5&utm_source=newsletter&utm_medium=email&utm_campaign=ip&utm_content=2023-11-30&read_main=1&nlsidx=0&nlaidx=18"><i>A Comparison of Patent Dispute Resolution in US and China</i></a>.
</span></span></p>
Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-6748908925984106842024-01-19T14:27:00.000-08:002024-01-19T14:27:42.974-08:00Some Thoughts on the CJEU’s Decision in Mylan v. Gilead<p><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">As I
noted the other day, on January 11 the CJEU issued its decision in <a href="https://curia.europa.eu/juris/document/document.jsf?text=&docid=281150&pageIndex=0&doclang=en&mode=lst&dir=&occ=first&part=1&cid=4012859"><i>Mylan AB
v. Gilead Sciences Finland Oy</i>, Case C-473/22</a>.<span style="mso-spacerun: yes;"> </span>The decision addresses, among other things, article
9(7) of the Intellectual Property Rights Enforcement Directive (IPRED), which
reads as follows:</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Where the provisional measures are
revoked or where they lapse due to any act or omission by the applicant, or
where it is subsequently found that there has been no infringement or threat of
infringement of an intellectual property right, the judicial authorities shall
have the authority to order the applicant, upon request of the defendant, to
provide the defendant appropriate compensation for any injury caused by those
measures.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify; text-indent: -.5in;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">The
operative portion of the <i>Mylan </i>decision reads as follows:</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Article 9(7) of Directive
2004/48/EC of the European Parliament and of the Council of 29 April 2004 on
the enforcement of intellectual property rights must be interpreted as not
precluding national legislation which provides for a mechanism for compensation
for any injury caused by a provisional measure, within the meaning of that
provision, based on a system of strict liability of the applicant for those
measures, in the context of which the court is entitled to adjust the amount of
damages by taking into account the circumstances of the case, including whether
the defendant played a part in the occurrence of the injury.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">As
Miquel Montaña has <a href="https://patentblog.kluweriplaw.com/2024/01/15/the-cjeu-judgment-of-11-january-2024-in-gilead-v-mylan-will-it-prompt-an-exodus-of-patent-owners-to-the-upc/">noted</a>, the decision seems a bit hard to square with the CJEU’s
<a href="http://curia.europa.eu/juris/liste.jsf?language=en&td=ALL&num=C-688/17#">2019 decision in <i>Bayer v. Richter</i></a>, and leaves open several questions—though
I was critical of <i>Bayer v. Richter</i>, and I am more sanguine about the <i>Mylan</i>
decision than is Dr. Montaña.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">As I
have written before, portions of the <i>Bayer </i>decision (e.g., paragraphs
62-63) might be read as expressing the view that article 9(7) precludes a strict
liability regime like Finland’s, although the operative part of the judgment
states only that:</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Article 9(7) of Directive
2004/48/EC of the European Parliament and of the Council of 29 April 2004 on
the enforcement of intellectual property rights, in particular, the concept of
‘appropriate compensation’ referred to in that provision, must be interpreted
as not precluding national legislation which provides that a party shall not be
compensated for losses which he has suffered due to his not having acted as may
generally be expected in order to avoid or mitigate his loss and which, in
circumstances such as those in the main proceedings, results in the court not
making an order for provisional measures against the applicant obliging him to
provide compensation for losses caused by those measures even though the patent
on the basis of which those had been requested and granted has subsequently
been found to be invalid, to the extent that that legislation permits the court
to take due account of all the objective circumstances of the case, including
the conduct of the parties, in order, inter alia, to determine that the
applicant has not abused those measures.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">In
any event,<i> Mylan v. Gilead </i>clearly provides more leeway than some might have considered
possible after <i>Bayer v. Richter</i>, for EU member states that wish to do so
to apply some sort of strict liability approach.<span style="mso-spacerun: yes;"> </span>On this issue, Dr. Montaña expresses the concern
that, in the absence of a harmonized rule there will be an incentive for forum
shopping, though I am not as convinced about the significance of this concern.<span style="mso-spacerun: yes;"> </span>A company that believes its patent is being
infringed, and that it is faced with irreparable harm pending trial, in
numerous EU countries will still have an incentive to file suit in those
countries in which it faces irreparable harm, I should think—though it will be
more cautious, perhaps, in countries like Finland where the stakes of getting
it wrong are more substantial.<span style="mso-spacerun: yes;"> </span>To be
sure, as Dr. Montaña notes, there could be forum shopping in favor of the UPC,
which might adopt a more patentee-friendly interpretation of its governing
provisions, but I’m not sure why forum shopping in favor of the UPC is a bad
thing either, unless the rule it adopts is clearly suboptimal.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">The
actual rule adopted in <i>Mylan </i>nevertheless is a bit puzzling, as Dr.
Montaña suggests; one would think that strict liability is, after all, <i>strict</i>,
and not subject to a consideration of “the circumstances of the cases.”<span style="mso-spacerun: yes;"> </span>But that is how the case was presented (see,
e.g., para. 23, stating that “according to settled Finnish case-law . . . the
amount of compensation may be reduced on the ground that the defendant himself
or herself enabled the injury to occur or failed to take reasonable measures to
avoid or mitigate the injury and thereby contributed to its occurrence”).<span style="mso-spacerun: yes;"> </span>So maybe this means that member states may
adopt a regime of strict <i>liability </i>in favor of the excluded defendant, as
long as they provide courts with some discretion to tailor the <i>remedy </i>in
consideration of the circumstances of the case?<span style="mso-spacerun: yes;">
</span>For example, let’s suppose that the patentee acted in the good faith
belief its patent was valid and infringed, and the defendant launched at risk;
maybe the compensation due to the defendant will be lower than if there were fault
on the part of the patentee, or if the defendant (as here) was poised to enter
the market but hadn’t yet sold any products.<span style="mso-spacerun: yes;">
</span>That said, I’m still not sure that outcome is entirely coherent, since it
means that in some cases the excluded defendant will recover something, but not
full compensation, for the harm of being temporarily excluded, and that it may
be penalized for launching at risk even if it ultimately prevails on the merits.
<span style="mso-spacerun: yes;"> </span>Moreover, for what it’s worth, I don’t
see what would be so bad about awarding the excluded defendant full compensation
in every case in which the patent is invalid or not infringed; why should the
temporary exclusion on the basis of a patent that is invalid or not infringed
be <i>damnum absque injuria</i>?<span style="mso-spacerun: yes;"> </span>(As I
have noted previously, some law-and-economics scholars agree with me on this.)<span style="mso-spacerun: yes;"> </span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Maybe
another solution that will emerge, in countries where this isn’t the practice
already, will be to require the patentee to post a bond in a sufficient amount
to cover any resulting injury, as permitted under article 9(6) of IPRED and
noted in <i>Phoenix Contact</i>; though that leaves open the question whether
the amount of the bond can be increased as time goes on and circumstances
change, and also whether, if the bond turns out to be inadequate, the defendant
should recover damages for its losses in excess of the bond (which is not done,
for example, in the U.S., but may be permitted in some countries.) <span style="mso-spacerun: yes;"> </span></span></p>
Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-20428756944091246052024-01-16T10:33:00.000-08:002024-01-16T10:33:30.738-08:00FRAND in China, Strict Liability in CJEU: Two Recent Decisions <p><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Two newsworthy
items I will be blogging about in greater detail in the days to come:</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">1. In
a decision dated December 22, 2023, China’s Supreme People’s Court has ordered
Oppo to pay Advanced Codec Technologies LLC (ACT) a FRAND royalty amounting to
a little over US$2 million.<span style="mso-spacerun: yes;"> </span>This is the
second Chinese FRAND decision handed down in December, following the Chongqing
court’s decision in <i>Nokia v. Oppo</i>, previously noted <a href="https://patentblog.kluweriplaw.com/2023/12/21/global-frand-rates-in-china/">here</a>.<span style="mso-spacerun: yes;"> </span>For discussion, see Aaron Wininger’s posts
<a href="https://www.natlawreview.com/article/chinas-supreme-peoples-court-sets-low-frand-rate-another-oppo-case">here</a> and <a href="https://www.natlawreview.com/article/chongqing-no-1-intermediate-peoples-court-sets-global-frand-rate-5g-seps-0707unit">here</a>; the former links to the <a href="https://mp.weixin.qq.com/s?__biz=MzUxMDAwNTI3OQ==&mid=2247514284&idx=1&sn=3d504fdea74bc3e245e8c8ccc08d21b6&chksm=f90b61dcce7ce8ca4252ccf093bb14f8c8a3a81e320651c78dadb5f31d331215c0e26e32ca21&mpshare=1&srcid=0115QnNIPjEgXZU2KIDK6U6R&sharer_shareinfo=04ed80f241604ec92e2dec8c2fa5724e&sharer_shareinfo_first=5793e9c581add321605af78e7aa0a7b9&from=singlemessage&scene=1&subscene=10000&clicktime=1705284663&enterid=1705284663&sessionid=0&ascene=1&fasttmpl_type=0&fasttmpl_fullversion=7029152-en_US-zip&fasttmpl_flag=0&realreporttime=1705284663483&devicetype=android-34&version=28002548&nettype=WIFI&abtest_cookie=AAACAA%3D%3D&lang=en&countrycode=US&exportkey=n_ChQIAhIQcE0zsWwav517imvWWzqzWhLWAQIE97dBBAEAAAAAAOWQN4pFF2cAAAAOpnltbLcz9gKNyK89dVj0%2Fqa6ceeuWzFrlzbfu3dUh79pgphkpCEG05B3d4K0zwG7X2HskHNLCjrG0KEtuB8Q474kT9vxi8vHoNQMgdLTrMgodKhjDk7duWSufpL40DGuGg%2Fe5b09PyrjpSExTlXZoE9Fcwy0nGCJ%2FHPs46ftYhBeIt8lUB4JsLZ72o%2Bsujvy3AiwDa5C9HuYnAd4TJijSEiFWYD7xCYpQnjjT2SQgk1dKQ7bwJPJI%2FlndlRha54%3D&pass_ticket=6HTjqfsq2o7PRLkaaZIpbP2wq41MovKMXj9nMPklN8Tcpk%2Fqgj7uzJn4tpN6uX6ql%2BBmoGCqe7gmRrU1EbLAZQ%3D%3D&wx_header=3"><i>ACT</i> decision</a>, in the original Chinese.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">2.
On the <a href="https://patentblog.kluweriplaw.com/2024/01/15/the-cjeu-judgment-of-11-january-2024-in-gilead-v-mylan-will-it-prompt-an-exodus-of-patent-owners-to-the-upc/">Kluwer Patent Blog</a>, Miquel Montaña discusses last week’s decision of the CJEU in <i><a href="https://curia.europa.eu/juris/document/document_print.jsf?mode=lst&pageIndex=0&docid=281150&part=1&doclang=EN&text=&dir=&occ=first&cid=2997375">Mylan v. Gilead</a></i>.<span style="mso-spacerun: yes;"> </span>Somewhat surprisingly,
the court appears to have backtracked somewhat from its decision in <i>Bayer v.
Richter</i>, by upholding Finland’s strict-liability approach to awarding
compensation to a defendant who is preliminarily enjoined on the basis of a
patent that is subsequently invalidated.<span style="mso-spacerun: yes;">
</span>The author is quite critical of the decision.<span style="mso-spacerun: yes;"> </span>I will have more to say about the decision,
which I want to read carefully, in the coming days <i>and</i> in a forthcoming book
project. Stay tuned.<br /></span></p>
Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-47049567006373843772024-01-11T08:40:00.000-08:002024-01-11T08:40:08.556-08:00Surprise! Licensor’s Mid-Negotiation Transfer of Patents May Support Defense to Willful Infringement, but Not Breach-of-FRAND Counterclaim<p><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">In
Law360 earlier this week, Dani Kass published an article titled <i><a href="https://www-law360-com.ezproxy.law.umn.edu/ip/articles/1783531/samsung-dodges-willfulness-claims-despite-frand-setback">Samsung DodgesWillfulness Claims Despite FRAND Setback</a></i>, discussing a January 8, 2024 <a href="https://drive.google.com/file/d/1-AK5Rhee9JMBzYV0VVDYQCEtExOYUzoa/view?usp=drive_link">opinion</a> by
Judge Rodney Gilstrap (E.D. Tex.).<span style="mso-spacerun: yes;"> </span>The opinion
in interesting insofar as it sheds light on what would appear to be a privateering
agreement between ZTE, the original owner of the patents in suit (all of which
are declared SEPs that are subject, under the ETSI IPR Policy, to a FRAND
commitment), and G+, its assignee.<span style="mso-spacerun: yes;"> </span>As
Erik Hovenkamp and I have <a href="https://scholarship.law.umn.edu/cgi/viewcontent.cgi?article=1455&context=faculty_articles">previously noted</a>, “’[p]rivateering’ is the term used
when a practicing entity assigns patents to a nonpracticing third party who
then seeks to enforce the patents. The third-party ‘privateer’ then distributes
a portion of the resulting proceeds back to the assignor, in accordance with
the terms of the assignment. . . .<span style="mso-spacerun: yes;"> </span>The
term ‘patent privateering’ was coined by Tom Ewing, who first drew an analogy
between the practice described . . . above and the practice (long since
abolished) under which sovereign states would authorize merchant vessels to
plunder enemy vessels during time of war.” <span style="mso-spacerun: yes;"></span>According to the opinion, “[b]y its own
admission, G+ was created in coordination with ZTE to license and enforce ZTE’s
patents,” and “ZTE retains a 20% net royalty on all proceeds generated from
G+’s licensing of the Asserted Patents” (pp. 2-3).<span style="mso-spacerun: yes;"> </span>In 2019, ZTE and Samsung began negotiating a
patent license, but the agreement was not completed until 2021.<span style="mso-spacerun: yes;"> </span>Meanwhile, in October 2020 ZTE had transferred
the patents in suit in this action to G+.<span style="mso-spacerun: yes;">
(According to an earlier opinion in this case, available on Westlaw, there are five patents in suit.) </span>Apparently Samsung thought that these patents were among the patents ZTE
had licensed to Samsung, but they weren’t, and ZTE didn’t expressly inform Samsung of the
transfer to G+ (though as the court states, "as a party to the ultimate ZTE-Samsung license, Samsung is assumed to have known the full scope and content of that license" (p.3).<span style="mso-spacerun: yes;"> </span>G+ is now suing for, <i>inter alia</i>,
patent infringement, and Samsung has counterclaimed for breach of contract (the FRAND
commitment).</span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">The upshot of the decision is that ZTE's alleged breach of its FRAND commitment is not attributable to G+, but that ZTE's alleged conduct may be relevant to defeating G+ claim of willful infringement. From
the opinion:</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p><blockquote><span style="font-family: "Times New Roman",serif; font-size: 12pt;">“In
its briefing, Samsung argues that ZTE’s conduct runs with the Patents-in-Suit
and is imputable to G+ because patents are property, and encumbrances run with
the property. . . .</span></blockquote><p></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p><blockquote><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">“None
of [the] cases [cited by Samsung] establish why ZTE’s actions rise to the level
of and constitute an encumbrance that burdens the Patents-in-Suit for purposes
of a breach of FRAND. These cases, at most, establish that a predecessor’s
actions may, in equity, prevent enforcement of the patents. They say nothing
about why a predecessor’s actions would burden patents for all purposes, including
for holding a successor-in-interest liable for a breach of contract. Neither
party disputes and the Court finds that the FRAND commitment sounds in contract
and is a legal obligation, not equitable in nature. . . .</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">“For
all of the foregoing reasons, ZTE’s conduct may not be attributed to G+ for
breach of FRAND purposes. . . .</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">“However,
this holding does not mean that the facts identified by Samsung are irrelevant and
may not be presented to the jury in support of other issues the jury will be
asked to decide. . . .</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;">“Indeed,
the Court finds the facts identified by Samsung are relevant and probative as
part of Samsung’s defense to G+’s charge of willful infringement. If Samsung
reasonably believed that it was receiving a license to the Patents-in-Suit as
part of the July 9, 2021 license from ZTE, only to later be surprised that G+
is asking for a license to the same patents, such could counter, to some degree,
G+’s charge of willfulness. . . . These facts may also be relevant to Samsung’s
general narrative of the case. . . .”</span></p></blockquote><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12pt;"></span></p>
Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-41017028618860813922024-01-08T08:22:00.000-08:002024-01-08T08:22:45.649-08:00Elder on Contempt after TiVo<p><!--[if gte mso 9]><xml>
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</p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Nina
Elder, a third-year law student at the University of Minnesota, has published an
excellent student note titled <i>The Contours of Contempt in Patent Law After</i>
TiVo, Inc. v. EchoStar Corp<i>.: An Empirical Study</i>, 25 Minnesota Journal
of Law, Science & Technology 145 (2023).<span style="mso-spacerun: yes;">
</span><a href="https://scholarship.law.umn.edu/cgi/viewcontent.cgi?article=1553&context=mjlst">Here</a> is a link to the paper, and here is an excerpt from the introduction:</span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Contempt is a “potent weapon”
patent owners can use to enforce injunctions. . . . The Federal Circuit first
established the test for contempt of a patent injunction in <i>KSM Fastening
Sys. Inc. v. H.A. Jones Co</i>., but only provided limited and confusing
guidance on how it should be applied. In 2011, it modified and clarified this
test in <i>TiVo Inc. v. EchoStar Corp</i>. This change prompted much speculation
as to the effects on contempt in patent cases moving forward, with the
prevailing view being that it would be easier to initiate contempt proceedings,
but harder to succeed on contempt motions as a whole. Though more than eleven
years have passed since the decision and empirical research into patent
injunctions has grown, no studies have quantified <i>TiVo</i>’s effects on
contempt outcomes.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify; text-indent: -.5in;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"> </span></p>
<div style="text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">This Note examines <i>TiVo</i>’s
impact on the landscape of contempt by analyzing a new dataset of contempt
motions filed between 2000 and 2022. Part II provides an overview of contempt
of injunctions in patent law, how the test for contempt was altered in <i>TiVo</i>,
and the effects many predicted the case would have on contempt outcomes. It
also covers the limited empirical research previously conducted on this topic.
Part III divulges the methodological design and limitations for this research.
Part IV describes the results of this study and the finding that though
initiation of contempt proceedings did increase after <i>TiVo</i>, the
proportion of contempt motions granted did not increase. It proposes that the
chance of prevailing on a contempt motion did not decrease because <i>TiVo</i>
did not, in fact, heighten the standard for contempt. This Note concludes that despite
concerns, <i>TiVo</i> succeeded in its goal of clarifying contempt law and
increased access to contempt proceedings without excessively restricting the
chance of success on a contempt motion.</span></div>Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-55412609368073839412024-01-03T09:26:00.000-08:002024-01-03T09:26:53.533-08:00Some End-of-the-Year FRAND Posts<!--[if gte mso 9]><xml>
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<p style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: georgia; font-size: small;"><span>1. On the Kluwer
Patent Blog, Enrico Bonadio and Dyuti Pandya published a post titled <i><span style="color: blue;"><a href="https://patentblog.kluweriplaw.com/2023/12/21/global-frand-rates-in-china/">Global FRAND Rates</a></span></i>.<span> </span>The post discusses the December 4, 2023
decision of the Intermediate People’s Court of Chongqing in <i>Nokia v. Oppo</i>.<span> </span>The authors state that the decision has yet
to be published in its entirety, but that excerpts of the opinion published
elsewhere show that the court awarded Nokia a global FRAND royalty “lower than
that asked by Nokia—$3.27/unit for 5G patent licensing.”</span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: georgia; font-size: small;">2. Further to the above, Tom Millikan and Kevin Zack
published an article on Law360 titled <i><span style="color: blue;"><a href="https://www.law360.com/ip/articles/1778635?nl_pk=6833c699-1630-4762-8ef0-48b6036f0bb5&utm_source=newsletter&utm_medium=email&utm_campaign=ip&utm_content=2023-12-21&read_main=1&nlsidx=0&nlaidx=19">The Year in FRAND:<span>
</span>What to Know Heading into 2024</a></span></i>.<span> </span>The article also discusses the <i>Nokia v.
Oppo</i> decision.<span> </span>According to the
authors, the rates awarded were “for 4G SEPs, $.477 per phone (in China) and
$.777 per unit (in Zone 1 and 2 countries, likely Western economies); for 5G
SEPs, $.707 per unit (in China) and $1.151 per unit (in Zone 1 and 2
countries)”.<span> </span>The authors also discuss,
among other matters, the amended IEEE policy; the EWHC decisions in <i>InterDigital
v. Lenovo</i> and <i>Optis v. Apple</i>; and the EC’s draft SEP
regulation.<span> </span>Very highly recommended!</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: georgia; font-size: small;">3.<span> </span>On IP Watchdog, Curtis Dodd and
Chris Dubuc published <a href="https://ipwatchdog.com/2023/12/21/top-us-frand-rand-licensing-developments-2023-part-everybody-pool/id=170883/"><i><span style="color: blue;">The Top U.S. FRAND/RAND Licensing Developments of 2023</span>
Part I:<span> </span>Everybody into the Pool</i></a>.<span> </span>The pool refers to Avanci’s pool for
connected vehicles and Sisvel’s cellular IoT pool.<span> </span>The article also discusses several district
court decisions in FRAND cases:<span> </span><i>3G
Licensing v. HTC </i>(awarding damages and awaiting a decision on enhanced
damages), and four interlocutory decisions addressing various claims or
defenses, <i>Atlas Global v. TP Link</i>, <i>G+ Communications v. Samsung</i>, <i>Philips
v. Thales</i>, and <i>Continental v. Nokia</i>. The authors followed up
with <a href="https://ipwatchdog.com/2023/12/27/top-us-frand-rand-licensing-sep-developments-2023-ghosts-christmas-past-christmas-future/id=171060/"><i><span style="color: blue;">The Top
U.S. FRAND / RAND Licensing Developments of 2023 Part II: Ghosts of Christmas
Past and Christmas Future</span></i></a>. This one also discusses <i>Nokia
v. Oppo</i>, as well as two dismissed U.S. antitrust actions.</span><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in;"> </p>
Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-53865018175698963862023-12-20T08:31:00.000-08:002023-12-20T08:31:12.510-08:00Law360 Article on Top Patent Damages Awards of 2023<p style="text-align: justify;">Dani Kass published an article titled <i>The Top Patent Damages Awards of 2023</i>, Law360, Dec. 19, 2023, available <a href="https://www.law360.com/ip/articles/1779258?nl_pk=6833c699-1630-4762-8ef0-48b6036f0bb5&utm_source=newsletter&utm_medium=email&utm_campaign=ip&utm_content=2023-12-20&read_main=1&nlsidx=0&nlaidx=0">here</a> but behind a paywall. The article states that, although there were no ten-figure verdicts this year, "multiple juries came back with nine-figure verdicts." The highest ($470 million) was in March in <i>ClearPlay, Inc. v. Dish Network L.L.C.</i>, <span>Case No. 2:14-cv-00191-DN-CMR (D. Utah)--</span>which however was overturned in an oral ruling on a motion for judgment notwithstanding the verdict, for lack of infringement, just eleven days later. (The judge's written opinion granting the motion was published in June, and is available on Westlaw. The case is on appeal to the Federal Circuit.) Overall, there were "50 or so" trials that led to damages awards, but according to attorney Jeannine Sano (quoted in the article) aggregate damages have remained steady in recent years at about $3 billion. Highly recommended. </p><p style="text-align: center;">* * *</p><p>I will taking a blogging break until the new year. Happy holidays!<br /></p>Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com1tag:blogger.com,1999:blog-5202549570150301909.post-83090327911415230282023-12-18T08:14:00.000-08:002023-12-18T08:14:48.634-08:00Canadian Court Denies Permanent Injunction in Biosimilar Case<p><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">The
case is <i>AbbVie Corp. v. JAMP Pharma Corp.</i>, <a href="https://decisions.fct-cf.gc.ca/fc-cf/decisions/en/524560/1/document.do">2023 FC 1520</a>, decision by
Madam Justice McVeigh.<span style="mso-spacerun: yes;"> </span>(Thanks to
Professor Norman Siebrasse for calling this to my attention.)<span style="mso-spacerun: yes;"> </span>The decision is very long (217 pages), and I
will admit that I haven’t read all of it for purposes of writing this post, but
as the judge puts it “the dispute relates to JAMP’s SIMLANDI product – a
biosimilar of AbbVie’s HUMIRA” (para. 1).<span style="mso-spacerun: yes;">
</span>The dispute involves three patents, the relevant claims of two of which are
found to be invalid; the judge rejects the validity challenge to the third
patent, and JAMP concedes infringement of that patent.<span style="mso-spacerun: yes;"> </span>The relevant question for purposes of the
subject matter of this blog is whether AbbVie is entitled to an injunction.<span style="mso-spacerun: yes;"> </span>The court concludes it is not.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">The
relevant portions are found in paragraphs 628-643 (pp. 182-88).<span style="mso-spacerun: yes;"> </span>To summarize, the court states that under
Canadian law injunction relief is discretionary, but that “this discretionary
power is usually granted unless there is an equitable reason not to” (para.
630).<span style="mso-spacerun: yes;"> </span>The court notes JAMP’s argument
that removing SIMLANDI from the market “would deprive patients of the only 80
mg/0.8 mL formulation available in Canada” (para. 634), and that two of its
experts suggested that patients who had to switch to the AbbVie formulation in
the event of a removal might suffer injection site pain or suffer other
possible detriment (paras. 635-37).<span style="mso-spacerun: yes;"> </span>Ultimately,
the court concludes:</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">[642] This is one of those rare
cases where I will not grant a permanent injunction given the public interest
factor. Forcing SIMLANDI patients to switch to another biosimilar, given it is
the only 80 mg/0.8 mL formulation in Canada, is not in the public interest.
AbbVie can be compensated. Even though the risk is low to those patients, it is
preferable to compensate AbbVie rather than take SIMLANDI off the market. JAMP
does not need to deliver up its infringing product.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify; text-indent: -.5in;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">[643] As suggested it is possible
that AbbVie can be compensated by a reasonable, running royalty on future sales
of SIMLANDI for any loss. This rate should easily be determined given the
licensing agreements it has with seven other biosimilar pharmaceutical
companies. But I will not make this determination as it is left to be
determined at the bifurcated trial if the parties do not reach an agreement
before. </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; text-align: justify; text-indent: -.5in;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Canadian
law therefore would appear similar to U.K. law in permitting a court to exercise
its discretion to deny injunctive relief in the public interest, subject to payment
of a royalty, outside the framework established in the statutory provisions on compulsory
licensing.<span style="mso-spacerun: yes;"> </span>In Germany, some of the courts
thus far have suggested they would go the other way on this issue, though
several commentators (including those I mentioned on the blog last week)
believe that German law should follow the U.K. (and now Canadian) approach. <span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span></span></p>
Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-47391709833854690292023-12-14T08:49:00.000-08:002023-12-14T08:49:04.635-08:00Two More Articles on Proportionality and Injunctions in the UPC<!--[if gte mso 9]><xml>
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<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Georgia",serif; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">In recent days, I've mentioned Léon Dijkman’s new book <i><span style="color: blue;"><a href="https://www.bloomsbury.com/uk/proportionality-test-in-european-patent-law-9781509973620/">The Proportionality Test in European Patent Law PatentInjunctions Before EU Courts and the UPC</a></span></i> (Hart Publishing 2023)
and Benjamin Raue and Franz Hofmann's paper <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4645292"><i><span style="color: blue;">Injunctions and
Damages for the Infringement of Patents under the UPCA - An Analysis in the
Light of the Principle of Proportionality</span></i></a> (<span style="color: blue;"><a href="http://comparativepatentremedies.blogspot.com/2023/12/dijkman-on-proportionality.html">here</a></span> and <span style="color: blue;"><a href="http://comparativepatentremedies.blogspot.com/2023/12/raue-and-hofmann-on-injunctions-and.html">here</a></span>), both
of which I highly recommend to readers. On this same theme are two other
papers cited in one or both of these works, which I had not previously come
across, and which are noted below. </span><span style="font-family: "Times New Roman",serif; font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Georgia",serif; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">First, Ansgar Ohly published a paper titled <i>Injunctions
in the UPC and the principle of proportionality</i>, 5 Stockholm Intell. Prop.
L.Rev. 58 (2022). <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4627314">Here</a> is a link to the paper on ssrn, <a href="https://stockholmiplawreview.com/wp-content/uploads/2022/10/Dr.-Ansgar-Ohly_2_IP_Jubileumsnummer-2022_A4.pdf">here</a> is a link to the published version, and here is the
abstract:</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Georgia",serif; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Georgia",serif; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">Whereas
in U.S. patent law injunctions are subject to the "four-factor test"
established by the U.S. Supreme Court in <i>eBay v. MercExchange</i>,
continental European patent courts have granted injunctions in cases of patent
infringement as a matter of course. But the EU law principle of proportionality
might require a more nuanced solution and has, indeed, caused the German
legislator to introduce a disproportionality defence into patent law. The paper
explores whether the Unified Patent Court, which started adjudicating patent
law disputed in the EU in 2023, can deny the grant of injunctions in cases of
disproportionality, discusses the criteria of proportionality and the legal
consequences.</span><span style="font-family: "Times New Roman",serif; font-size: 12pt; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Georgia",serif; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">As discussed in the article, Ohly argues "that the UPC
should steer a middle course" between the U.S. approach and the
traditional German approach under which injunctions were an "automatic
consequence of an infringement." Further, he argues that "the
UPC should - and will probably -not conduct a balancing exercise in every
single case," but rather will delay or deny injunctive relief only in
exceptional circumstances; and that the most common scenarios probably will
involve complex products, PAEs, or public health. Finally, he
argues (as he has <a href="http://comparativepatentremedies.blogspot.com/2022/03/may-2022-grur-on-ongoing-royalties-in.html">previously</a>) that compensation in lieu of an injunction should
be limited to a reasonable royalty (a point on which I agree), and also that the authority to delay or deny injunctions on proportionality grounds should be available in some SEP cases as well (for example, cases in which a declared SEP is not in fact standard-essential) <br /></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Georgia",serif; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">Second, Matthias Leistner has posted a paper on ssrn titled
<i>Injunctive Relief in the UPC – A Case for Carefully Limited Flexibility</i>,
which is forthcoming in a festschrift for Reto Hilty.<span style="mso-spacerun: yes;"> </span><a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4484038">Here</a> is a link, and here is the abstract:</span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Georgia",serif; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;"></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Georgia",serif; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">This
article discusses whether and in what form the UPC has discretion with regard
to the granting of injunctive relief. The argument is based on international
and EU law, in particular the general proportionality principle, embedded in
the Enforcement Directive, as well as on the text and context of the UPC
itself. The author proposes an approach of limited discretion including
appropriate compensation measures, namely payment in lieu of an injunction.
These proposals are in line with the historically hybrid nature of the UPC as
well as its internal and external context. Furthermore, the article explains,
how this proposal can be implemented during the transitional period in the UPC
as well as in national courts.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Georgia",serif; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">Leistner too argues that the UPC has the responsibility to delay or deny injunctive relief under extraordinary circumstances, which may include complex products cases in which the there is a substantial risk of holdup and cases involving serious risks to third parties (e.g., public health cases). He leaves open the issues of PAEs and SEPs, and argues for compensation in lieu that would be in addition to damages.</span> <br /></p>
Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0tag:blogger.com,1999:blog-5202549570150301909.post-55289285093050490472023-12-11T08:11:00.000-08:002023-12-11T08:11:39.812-08:00Raue and Hofmann on Injunctions and Proportionality<!--[if gte mso 9]><xml>
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="footer"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="index heading"/>
<w:LsdException Locked="false" Priority="35" SemiHidden="true"
UnhideWhenUsed="true" QFormat="true" Name="caption"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="table of figures"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="envelope address"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="envelope return"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="footnote reference"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="annotation reference"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="line number"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="page number"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="endnote reference"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="endnote text"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="table of authorities"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="macro"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="toa heading"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List Bullet"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List Number"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List 2"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List 3"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List 4"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List 5"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List Bullet 2"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List Bullet 3"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List Bullet 4"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List Bullet 5"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List Number 2"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List Number 3"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List Number 4"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List Number 5"/>
<w:LsdException Locked="false" Priority="10" QFormat="true" Name="Title"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Closing"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Signature"/>
<w:LsdException Locked="false" Priority="1" SemiHidden="true"
UnhideWhenUsed="true" Name="Default Paragraph Font"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Body Text"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Body Text Indent"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List Continue"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List Continue 2"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List Continue 3"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List Continue 4"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="List Continue 5"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Message Header"/>
<w:LsdException Locked="false" Priority="11" QFormat="true" Name="Subtitle"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Salutation"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Date"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Body Text First Indent"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Body Text First Indent 2"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Note Heading"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Body Text 2"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Body Text 3"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Body Text Indent 2"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Body Text Indent 3"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Block Text"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Hyperlink"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="FollowedHyperlink"/>
<w:LsdException Locked="false" Priority="22" QFormat="true" Name="Strong"/>
<w:LsdException Locked="false" Priority="20" QFormat="true" Name="Emphasis"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Document Map"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Plain Text"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="E-mail Signature"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="HTML Top of Form"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="HTML Bottom of Form"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Normal (Web)"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="HTML Acronym"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="HTML Address"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="HTML Cite"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="HTML Code"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="HTML Definition"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="HTML Keyboard"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="HTML Preformatted"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="HTML Sample"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="HTML Typewriter"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="HTML Variable"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Normal Table"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="annotation subject"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="No List"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Outline List 1"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Outline List 2"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Outline List 3"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Simple 1"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Simple 2"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Simple 3"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Classic 1"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Classic 2"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Classic 3"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Classic 4"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Colorful 1"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Colorful 2"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Colorful 3"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Columns 1"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Columns 2"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Columns 3"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Columns 4"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Columns 5"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Grid 1"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Grid 2"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Grid 3"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Grid 4"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Grid 6"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Grid 7"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table List 3"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table List 4"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table List 5"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table List 6"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table List 7"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table List 8"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table 3D effects 1"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table 3D effects 2"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table 3D effects 3"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Contemporary"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Elegant"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Professional"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Subtle 1"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Subtle 2"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Table Web 3"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
Name="Balloon Text"/>
<w:LsdException Locked="false" Priority="39" Name="Table Grid"/>
<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" Name="Placeholder Text"/>
<w:LsdException Locked="false" Priority="1" QFormat="true" Name="No Spacing"/>
<w:LsdException Locked="false" Priority="60" Name="Light Shading"/>
<w:LsdException Locked="false" Priority="61" Name="Light List"/>
<w:LsdException Locked="false" Priority="62" Name="Light Grid"/>
<w:LsdException Locked="false" Priority="63" Name="Medium Shading 1"/>
<w:LsdException Locked="false" Priority="64" Name="Medium Shading 2"/>
<w:LsdException Locked="false" Priority="65" Name="Medium List 1"/>
<w:LsdException Locked="false" Priority="66" Name="Medium List 2"/>
<w:LsdException Locked="false" Priority="67" Name="Medium Grid 1"/>
<w:LsdException Locked="false" Priority="68" Name="Medium Grid 2"/>
<w:LsdException Locked="false" Priority="69" Name="Medium Grid 3"/>
<w:LsdException Locked="false" Priority="70" Name="Dark List"/>
<w:LsdException Locked="false" Priority="71" Name="Colorful Shading"/>
<w:LsdException Locked="false" Priority="72" Name="Colorful List"/>
<w:LsdException Locked="false" Priority="73" Name="Colorful Grid"/>
<w:LsdException Locked="false" Priority="60" Name="Light Shading Accent 1"/>
<w:LsdException Locked="false" Priority="61" Name="Light List Accent 1"/>
<w:LsdException Locked="false" Priority="62" Name="Light Grid Accent 1"/>
<w:LsdException Locked="false" Priority="63" Name="Medium Shading 1 Accent 1"/>
<w:LsdException Locked="false" Priority="64" Name="Medium Shading 2 Accent 1"/>
<w:LsdException Locked="false" Priority="65" Name="Medium List 1 Accent 1"/>
<w:LsdException Locked="false" SemiHidden="true" Name="Revision"/>
<w:LsdException Locked="false" Priority="34" QFormat="true"
Name="List Paragraph"/>
<w:LsdException Locked="false" Priority="29" QFormat="true" Name="Quote"/>
<w:LsdException Locked="false" Priority="30" QFormat="true"
Name="Intense Quote"/>
<w:LsdException Locked="false" Priority="66" Name="Medium List 2 Accent 1"/>
<w:LsdException Locked="false" Priority="67" Name="Medium Grid 1 Accent 1"/>
<w:LsdException Locked="false" Priority="68" Name="Medium Grid 2 Accent 1"/>
<w:LsdException Locked="false" Priority="69" Name="Medium Grid 3 Accent 1"/>
<w:LsdException Locked="false" Priority="70" Name="Dark List Accent 1"/>
<w:LsdException Locked="false" Priority="71" Name="Colorful Shading Accent 1"/>
<w:LsdException Locked="false" Priority="72" Name="Colorful List Accent 1"/>
<w:LsdException Locked="false" Priority="73" Name="Colorful Grid Accent 1"/>
<w:LsdException Locked="false" Priority="60" Name="Light Shading Accent 2"/>
<w:LsdException Locked="false" Priority="61" Name="Light List Accent 2"/>
<w:LsdException Locked="false" Priority="62" Name="Light Grid Accent 2"/>
<w:LsdException Locked="false" Priority="63" Name="Medium Shading 1 Accent 2"/>
<w:LsdException Locked="false" Priority="64" Name="Medium Shading 2 Accent 2"/>
<w:LsdException Locked="false" Priority="65" Name="Medium List 1 Accent 2"/>
<w:LsdException Locked="false" Priority="66" Name="Medium List 2 Accent 2"/>
<w:LsdException Locked="false" Priority="67" Name="Medium Grid 1 Accent 2"/>
<w:LsdException Locked="false" Priority="68" Name="Medium Grid 2 Accent 2"/>
<w:LsdException Locked="false" Priority="69" Name="Medium Grid 3 Accent 2"/>
<w:LsdException Locked="false" Priority="70" Name="Dark List Accent 2"/>
<w:LsdException Locked="false" Priority="71" Name="Colorful Shading Accent 2"/>
<w:LsdException Locked="false" Priority="72" Name="Colorful List Accent 2"/>
<w:LsdException Locked="false" Priority="73" Name="Colorful Grid Accent 2"/>
<w:LsdException Locked="false" Priority="60" Name="Light Shading Accent 3"/>
<w:LsdException Locked="false" Priority="61" Name="Light List Accent 3"/>
<w:LsdException Locked="false" Priority="62" Name="Light Grid Accent 3"/>
<w:LsdException Locked="false" Priority="63" Name="Medium Shading 1 Accent 3"/>
<w:LsdException Locked="false" Priority="64" Name="Medium Shading 2 Accent 3"/>
<w:LsdException Locked="false" Priority="65" Name="Medium List 1 Accent 3"/>
<w:LsdException Locked="false" Priority="66" Name="Medium List 2 Accent 3"/>
<w:LsdException Locked="false" Priority="67" Name="Medium Grid 1 Accent 3"/>
<w:LsdException Locked="false" Priority="68" Name="Medium Grid 2 Accent 3"/>
<w:LsdException Locked="false" Priority="69" Name="Medium Grid 3 Accent 3"/>
<w:LsdException Locked="false" Priority="70" Name="Dark List Accent 3"/>
<w:LsdException Locked="false" Priority="71" Name="Colorful Shading Accent 3"/>
<w:LsdException Locked="false" Priority="72" Name="Colorful List Accent 3"/>
<w:LsdException Locked="false" Priority="73" Name="Colorful Grid Accent 3"/>
<w:LsdException Locked="false" Priority="60" Name="Light Shading Accent 4"/>
<w:LsdException Locked="false" Priority="61" Name="Light List Accent 4"/>
<w:LsdException Locked="false" Priority="62" Name="Light Grid Accent 4"/>
<w:LsdException Locked="false" Priority="63" Name="Medium Shading 1 Accent 4"/>
<w:LsdException Locked="false" Priority="64" Name="Medium Shading 2 Accent 4"/>
<w:LsdException Locked="false" Priority="65" Name="Medium List 1 Accent 4"/>
<w:LsdException Locked="false" Priority="66" Name="Medium List 2 Accent 4"/>
<w:LsdException Locked="false" Priority="67" Name="Medium Grid 1 Accent 4"/>
<w:LsdException Locked="false" Priority="68" Name="Medium Grid 2 Accent 4"/>
<w:LsdException Locked="false" Priority="69" Name="Medium Grid 3 Accent 4"/>
<w:LsdException Locked="false" Priority="70" Name="Dark List Accent 4"/>
<w:LsdException Locked="false" Priority="71" Name="Colorful Shading Accent 4"/>
<w:LsdException Locked="false" Priority="72" Name="Colorful List Accent 4"/>
<w:LsdException Locked="false" Priority="73" Name="Colorful Grid Accent 4"/>
<w:LsdException Locked="false" Priority="60" Name="Light Shading Accent 5"/>
<w:LsdException Locked="false" Priority="61" Name="Light List Accent 5"/>
<w:LsdException Locked="false" Priority="62" Name="Light Grid Accent 5"/>
<w:LsdException Locked="false" Priority="63" Name="Medium Shading 1 Accent 5"/>
<w:LsdException Locked="false" Priority="64" Name="Medium Shading 2 Accent 5"/>
<w:LsdException Locked="false" Priority="65" Name="Medium List 1 Accent 5"/>
<w:LsdException Locked="false" Priority="66" Name="Medium List 2 Accent 5"/>
<w:LsdException Locked="false" Priority="67" Name="Medium Grid 1 Accent 5"/>
<w:LsdException Locked="false" Priority="68" Name="Medium Grid 2 Accent 5"/>
<w:LsdException Locked="false" Priority="69" Name="Medium Grid 3 Accent 5"/>
<w:LsdException Locked="false" Priority="70" Name="Dark List Accent 5"/>
<w:LsdException Locked="false" Priority="71" Name="Colorful Shading Accent 5"/>
<w:LsdException Locked="false" Priority="72" Name="Colorful List Accent 5"/>
<w:LsdException Locked="false" Priority="73" Name="Colorful Grid Accent 5"/>
<w:LsdException Locked="false" Priority="60" Name="Light Shading Accent 6"/>
<w:LsdException Locked="false" Priority="61" Name="Light List Accent 6"/>
<w:LsdException Locked="false" Priority="62" Name="Light Grid Accent 6"/>
<w:LsdException Locked="false" Priority="63" Name="Medium Shading 1 Accent 6"/>
<w:LsdException Locked="false" Priority="64" Name="Medium Shading 2 Accent 6"/>
<w:LsdException Locked="false" Priority="65" Name="Medium List 1 Accent 6"/>
<w:LsdException Locked="false" Priority="66" Name="Medium List 2 Accent 6"/>
<w:LsdException Locked="false" Priority="67" Name="Medium Grid 1 Accent 6"/>
<w:LsdException Locked="false" Priority="68" Name="Medium Grid 2 Accent 6"/>
<w:LsdException Locked="false" Priority="69" Name="Medium Grid 3 Accent 6"/>
<w:LsdException Locked="false" Priority="70" Name="Dark List Accent 6"/>
<w:LsdException Locked="false" Priority="71" Name="Colorful Shading Accent 6"/>
<w:LsdException Locked="false" Priority="72" Name="Colorful List Accent 6"/>
<w:LsdException Locked="false" Priority="73" Name="Colorful Grid Accent 6"/>
<w:LsdException Locked="false" Priority="19" QFormat="true"
Name="Subtle Emphasis"/>
<w:LsdException Locked="false" Priority="21" QFormat="true"
Name="Intense Emphasis"/>
<w:LsdException Locked="false" Priority="31" QFormat="true"
Name="Subtle Reference"/>
<w:LsdException Locked="false" Priority="32" QFormat="true"
Name="Intense Reference"/>
<w:LsdException Locked="false" Priority="33" QFormat="true" Name="Book Title"/>
<w:LsdException Locked="false" Priority="37" SemiHidden="true"
UnhideWhenUsed="true" Name="Bibliography"/>
<w:LsdException Locked="false" Priority="39" SemiHidden="true"
UnhideWhenUsed="true" QFormat="true" Name="TOC Heading"/>
<w:LsdException Locked="false" Priority="41" Name="Plain Table 1"/>
<w:LsdException Locked="false" Priority="42" Name="Plain Table 2"/>
<w:LsdException Locked="false" Priority="43" Name="Plain Table 3"/>
<w:LsdException Locked="false" Priority="44" Name="Plain Table 4"/>
<w:LsdException Locked="false" Priority="45" Name="Plain Table 5"/>
<w:LsdException Locked="false" Priority="40" Name="Grid Table Light"/>
<w:LsdException Locked="false" Priority="46" Name="Grid Table 1 Light"/>
<w:LsdException Locked="false" Priority="47" Name="Grid Table 2"/>
<w:LsdException Locked="false" Priority="48" Name="Grid Table 3"/>
<w:LsdException Locked="false" Priority="49" Name="Grid Table 4"/>
<w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark"/>
<w:LsdException Locked="false" Priority="51" Name="Grid Table 6 Colorful"/>
<w:LsdException Locked="false" Priority="52" Name="Grid Table 7 Colorful"/>
<w:LsdException Locked="false" Priority="46"
Name="Grid Table 1 Light Accent 1"/>
<w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 1"/>
<w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 1"/>
<w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 1"/>
<w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 1"/>
<w:LsdException Locked="false" Priority="51"
Name="Grid Table 6 Colorful Accent 1"/>
<w:LsdException Locked="false" Priority="52"
Name="Grid Table 7 Colorful Accent 1"/>
<w:LsdException Locked="false" Priority="46"
Name="Grid Table 1 Light Accent 2"/>
<w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 2"/>
<w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 2"/>
<w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 2"/>
<w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 2"/>
<w:LsdException Locked="false" Priority="51"
Name="Grid Table 6 Colorful Accent 2"/>
<w:LsdException Locked="false" Priority="52"
Name="Grid Table 7 Colorful Accent 2"/>
<w:LsdException Locked="false" Priority="46"
Name="Grid Table 1 Light Accent 3"/>
<w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 3"/>
<w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 3"/>
<w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 3"/>
<w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 3"/>
<w:LsdException Locked="false" Priority="51"
Name="Grid Table 6 Colorful Accent 3"/>
<w:LsdException Locked="false" Priority="52"
Name="Grid Table 7 Colorful Accent 3"/>
<w:LsdException Locked="false" Priority="46"
Name="Grid Table 1 Light Accent 4"/>
<w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 4"/>
<w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 4"/>
<w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 4"/>
<w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 4"/>
<w:LsdException Locked="false" Priority="51"
Name="Grid Table 6 Colorful Accent 4"/>
<w:LsdException Locked="false" Priority="52"
Name="Grid Table 7 Colorful Accent 4"/>
<w:LsdException Locked="false" Priority="46"
Name="Grid Table 1 Light Accent 5"/>
<w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 5"/>
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<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Georgia",serif; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">Close on the heels of Léon Dijkman’s new book <a href="https://www.bloomsbury.com/uk/proportionality-test-in-european-patent-law-9781509973620/"><i><span style="color: blue;">The Proportionality Test in European Patent Law Patent
Injunctions Before EU Courts and the UPC</span></i></a> (Hart Publishing 2023),
which I noted last week (<span style="color: blue;"><a href="http://comparativepatentremedies.blogspot.com/2023/12/dijkman-on-proportionality.html">here</a></span>),
is a new paper by Benjamin Raue and Franz Hofmann titled <i>Injunctions and
Damages for the Infringement of Patents under the UPCA - An Analysis in the
Light of the Principle of Proportionality</i>. <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4645292">Here</a> is a link, and here
is the abstract:</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Georgia",serif; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;"> </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; margin-left: .5in; margin-right: .5in; margin-top: 0in; margin: 0in 0.5in; text-align: justify;"><span style="font-family: "Georgia",serif; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 0pt; mso-ligatures: none;">The
infringement of a patent regularly results in a claim for injunctive relief and
damages. However, depending on the facts of an individual case an injunction
might be disproportionate. An injunction might cause hardship for third
parties, be contrary to the public interest or, first and foremost,
disproportionately disadvantageous for the infringer (e.g. “hold-up”). In our
study, we discuss the impact of proportionality considerations on permanent
injunctions and damages under the UPCA, with a special focus on non-practicing
patent assertion entities (PAEs) and complex products. We will not discuss
interim injunctions or the issue of SEPs.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0in; text-align: justify;"><span style="font-family: "Georgia",serif; font-size: 12pt; line-height: 107%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-font-kerning: 0pt; mso-ligatures: none;">The authors argue for a robust use of the
proportionality defense to deny or stay injunctive relief in cases posing a substantial risk
of patent holdup (particularly PAE and complex products cases), and to award ongoing royalties equal to a
reasonable royalty.</span></p>Thomas Cotterhttp://www.blogger.com/profile/07145440504421320263noreply@blogger.com0