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1 Detailed Table of Contents Main Volume Supplement Preface... vii vii Acknowledgments... ix xi Summary Table of Contents... xiii xiii I. Patent Infringement Liability 1. Direct and Indirect Infringement Liability I. U.S. Patent Rights... 6 A. Origins of U.S. Patent Rights... 7 B. Enforcement of U.S. Patent Rights... 8 C. Forums That Enforce U.S. Patent Rights U.S. District Courts U.S. Court of Federal Claims U.S. International Trade Commission U.S. Court of Appeals for the Federal Circuit a. U.S. District Courts b. U.S. Court of Federal Claims c. U.S. International Trade Commission U.S. Supreme Court II. Activities That Violate the Patent Law A. Scope of U.S. Patent Rights Territorial Reach Temporal Reach B. Direct Infringement Situations Infringement Under 271(a) a. Whoever May Be an Infringer b. Intent to Infringe c. Infringing Conduct xv
2 xvi Patent Infringement Remedies i. Infringing Manufacture ii. Infringing Use iii. Infringing Sale iv. Infringing Offer to Sell v. Infringing Importation Infringement Under Other Subsections of C. Indirect Infringement Situations Inducing Infringement Under 271(b) a. Intent to Infringe b. Direct Infringement Prerequisite Contributory Infringement Under 271(c) a. Intent to Infringe b. Direct Infringement Prerequisite c. Relationship to Patent Misuse Main Volume Footnote Updates Determination of Patent Infringement I. Infringement Analysis A. Infringement Claim Construction a. Patent Claims b. Claim Interpretation i. Markman Review ii. Intrinsic/Extrinsic Evidence iii. Means-Plus-Function Claims Comparison of Patent Claims With Accused Product or Process Literal Infringement Infringement Under the Doctrine of Equivalents a. Substantiality Test i. Graver Tank ii. Warner-Jenkinson b. Limitations on the Doctrine of Equivalents i. Prior Art ii. Prosecution History Estoppel B. Infringement Defenses Noninfringement a. Repair Versus Reconstruction b. License and Implied License... 57
3 Detailed Table of Contents xvii 2. Invalidity a. Conditions for Patentability i. Utility ii. Novelty iii. Nonobviousness iv. Statutory Subject Matter [New Topic] b. Disclosure Requirements i. Written Description ii. Definiteness iii. Enablement iv. Best Mode Unenforceability a. Inequitable Conduct b. Patent Misuse c. Laches and Estoppel d. Claim and Issue Preclusion Specific Infringement Liability I. Special Infringement Situations A. Infringement Under 271(e) Background and Context ANDA Litigation B. Infringement Under 271(f) C. Infringement Under 271(g) Timing Without Authority Materially Changed II. Other Infringement Situations A. Design Patent Infringement Claim Interpretation Comparison of Patent Claims With Accused Product or Process a. Sun Hill b. Elmer B. Plant Patent Infringement Imazio II. Patent Infringement Remedies 4. Compensatory Damages I. Damages Generally A. Damages Authority... 92
4 xviii Patent Infringement Remedies 2. Test a. Lost Profits b. Reasonable Royalty Public Policy History Nature of Inquiry Burden of Proof Standard of Review Applications a. Legal Title b. Impact of State Law Claims c. No Tax Offset d. Duplicative Recovery [New Topic] B. Interest Prejudgment Interest a. Authority b. Test i. Discretionary, Not Mandatory ii. Ordinarily Awarded iii. Dilatory Patentee Conduct iv. Inapplicability to Enhanced Damages v. Rate c. Public Policy d. History e. Nature of Inquiry f. Burden of Proof g. Standard of Review h. Applications i. Basis of the Damages Award ii. Difficulty in Calculating Interest iii. Justification Other Than Dilatory Patentee Conduct iv. Absence of Justification Postjudgment Interest a. Authority b. Test c. Public Policy d. History
5 Detailed Table of Contents xix e. Nature of Inquiry f. Burden of Proof g. Standard of Review h. Applications C. Costs Authority Test Public Policy History Nature of Inquiry Burden of Proof Standard of Review Applications a. Expert Witness Fees b. Transcripts, Translations, and Copying c. Video Models d. Disclaimer II. Limitations on Damages Recovery A. Time Limitation on Damages Authority Test Public Policy History Nature of Inquiry Burden of Proof Standard of Review Applications B. Marking Authority Test a. Form of Notice i. Actual Notice ii. Constructive Notice Public Policy History Nature of Inquiry Burden of Proof Standard of Review Applications a. Patented Product Prerequisite
6 xx Patent Infringement Remedies b. Declaratory Judgment Jurisdiction c. False Marking d. Communicating Patent Rights to Customers [New Topic] C. Maximum Recovery Rule Authority Test a. Shockley b. Oiness c. Unisplay Main Volume Footnote Updates Lost Profits I. Authority A. Statute B. Judicial Precedent II. Test A. Panduit Factors Demand for the Patented Product a. Supporting Evidence of Demand b. Undermining Evidence of Demand Absence of Noninfringing Substitutes a. Market Evidence b. Nonmarket Evidence Patentee Capacity Amount of Lost Profits B. Alternative Tests Two-Supplier Market Mini-Market C. Compensable Injury Consequential Harm a. Lost Sales i. Past and Present ii. Future b. Price Erosion c. Diminution of Business Goodwill d. Impairment of Business Growth or Other Loss Foreseeable Harm a. Collateral and Derivative Sales b. Entire Market Value
7 Detailed Table of Contents xxi III. Public Policy IV. History V. Nature of Inquiry VI. Burden of Proof VII. Standard of Review VIII. Applications A. Lost Profits Generally Infringing Party Infringing Conduct B. Proof Reasonable Probability C. Causation But For Reasonable Foreseeability a. Convoyed Sales b. Entire Market Value D. Panduit Factors Generally Demand Capacity Noninfringing Substitutes Amount of Profit a. Price Erosion b. Future Sales c. Business Goodwill E. Two-Supplier Market F. Calculation Award Amount Reasonable Royalty I. Authority A. Statute B. Judicial Precedent II. Test A. Royalty Calculation Georgia-Pacific Factors a. Established Royalty b. Comparable Royalty c. Existing License Terms d. Licensing Policy e. Competition Between Licensor and Licensee f. Collateral Effect g. Remaining Term of Patent
8 xxii Patent Infringement Remedies h. Commercial Success i. Advantages Over Prior Art j. Nature of Invention k. Nature of Infringement l. Customary Profit Margin m. Profits Attributable to Patented Feature n. Expert Testimony o. Hypothetical Royalty i. Accuracy Irrelevant ii. Analytical Approach B. Compensable Injury Consequential Harm a. Diminution of Business Goodwill b. Impairment of Business Growth or Other Loss Foreseeable Harm a. Collateral and Derivative Sales b. Entire Market Value c. Panduit Kicker III. Public Policy IV. History V. Nature of Inquiry VI. Burden of Proof A. Standard VII. Standard of Review A. Standard VIII. Applications A. Reasonable Royalty Generally Infringing Party Infringing Conduct a. Infringing Activity b. Time of Infringement B. Proof C. Causation Reasonable Foreseeability a. Convoyed Sales b. Entire Market Value D. Georgia-Pacific Factors Generally Established Royalty Prior Royalties
9 Detailed Table of Contents xxiii 3. Nature and Scope of the License Refusal to License Market Derivative or Convoyed Sales Patent Term Established Profitability Advantages and Nature of the Patented Invention Infringer s Use of the Invention Customary Profit Attributable Profit Expert Testimony Hypothetical Negotiation E. Additional Bases for Royalty Rate Business Goodwill F. Calculation Award Amount Main Volume Footnote Updates Noncompensatory Damages I. Enhanced Damages A. Authority Statute Judicial Precedent B. Tests Willful Infringement a. Opinion of Counsel i. Timing ii. Competency Exceptional Case Enhancement C. Public Policy D. History E. Nature of Inquiry F. Burden of Proof G. Standard of Review H. Applications Enhanced Damages Generally Attorney Fees Generally Exceptional Case a. Generally i. Allocation
10 xxiv Patent Infringement Remedies b. Nature of Inquiry i. Appellate Record ii. Finality c. Inadequate Prefiling Investigation Basis d. Frivolity Basis e. Inequitable Conduct Basis f. Litigation Misconduct Basis g. Prevailing Party h. Willful Infringement i. Opinions of Counsel j. Competency k. ANDA [New Topic] II. Attorney Fees A. Authority B. Test C. Public Policy D. History E. Nature of Inquiry F. Burden of Proof G. Standard of Review H. Applications District Court Sanctions a. Discovery Sanctions Appellate Sanctions a. Frivolous Appeal b. Conduct Main Volume Footnote Updates Injunctive Relief I. Temporary Restraining Order A. Authority II. Preliminary Injunction A. Authority B. Test Reasonable Likelihood of Success on the Merits a. Patent Infringement b. Presumption of Patent Validity c. Patent Validity Irreparable Harm Balance of Hardships Public Interest
11 Detailed Table of Contents xxv 5. Enforceability Special Circumstances [New Topic] C. Public Policy D. History E. Nature of Inquiry F. Burden of Proof G. Standard of Review H. Applications Injunctive Relief Generally Appellate Review Standards Generally a. Likelihood of Success on the Merits i. Relationship to Claim Construction ii. Infringement iii. Validity ) Enablement ) Inventorship b. Irreparable Harm c. Balance of Hardships d. Public Interest Procedures a. Choice of Law b. Rolling Claim Construction c. Appellate Process d. Law of the Case e. Bond/Restitution III. Permanent Injunction A. Applications Permanent Injunctions Generally Scope of Injunction Effect of Damages Awards IV. Contempt A. Applications Contempt Generally Standards a. Scope of Injunction b. Infringement c. Burden of Proof d. Appellate Review e. Parties/Privity Sanctions
12 xxvi Patent Infringement Remedies V. Writs VI. USITC Exclusion Orders Other Statutory Remedies I. Design Patents A. Applications Remedies Under 284 or Damages Calculation Tax Implications II. Pre-Grant Damages III. Inventorship IV. Delta Period Infringement V. Claims Against the U.S. Government A. Applications Reasonable and Entire Compensation Delay Damages VI. Medical Procedure Patents A. Authority Main Volume Footnote Updates III. Patent Portfolio Management Considerations 10. Opinions of Counsel I. Effect on Patent Infringement Damages II. Good Faith Conduct A. Standards for Exculpatory Opinions of Counsel Timing Competency III. Strategic Considerations Valuation Models I. Cost Approach A. Formula B. Considerations II. Market Approach III. Income Approach IV. Econometric Models [New Topic] Contracting Around Liability I. Licensing Structures II. Cooperative Agreements Collateral Concerns I. Antitrust Concerns
13 Detailed Table of Contents xxvii II. Insurance III. Tax IV. Bankruptcy IV. Litigation Matters 14. Case Presentation I. Forum A. Authority II. Experts III. Stays A. Authority IV. Litigation Conduct and Misconduct A. Authority Alternative Dispute Resolution I. Arbitration A. Authority II. Mediation Main Volume Footnote Updates Appendixes APPENDIX A: THE COMPLAINT APPENDIX B: AIPLA S MODEL PATENT JURY INSTRUCTIONS Disclaimer Damages Damages Generally Date Damages Begin Two Types of Damages Lost Profits and Reasonable Royalty Lost Profits But-For Test Lost Profits Panduit Factors Lost Profits Panduit Factors Demand Lost Profits Panduit Factors Acceptable Non-Infringing Substitutes Lost Profits Panduit Factors Capacity Lost Profits Panduit Factors Amount of Profit Incremental Income Approach
14 xxviii Patent Infringement Remedies 12.9 Lost Profits Market Share Lost Profits Price Erosion Lost Profits Cost Escalation Lost Profits Collateral Sales Lost Profits Doubts Resolved Against Infringer Reasonable Royalty Generally Reasonable Royalty Definition Reasonable Royalty Relevant Factors Reasonable Royalty Timing Willful Infringement APPENDIX C: VALUATION APPENDIX D: AUDIT CHECKLIST Glossary Table of Cases Index About the Author
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