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Patent law's infringement doctrines, commonly understood to be simply rules of liability, are in fact search rules as well. Patent liability rules determine not only who will be responsible for what conduct, but also when patent holders and potential infringers will benefit from locating (or remaining ignorant of) one another. They thus affect the conditions under which parties will have incentives to engage in search. The dynamics of patent search are actually quite complicated. Under normal circumstances, patent law's liability rules generate approximately optimal investments in search as both patent holders and possible infringers have incentives to locate one another. But when a direct infringer is insolvent or unreachable, the fact that contributory infringers can be held liable only when they have knowledge of the patent shifts search responsibilities toward patent holders. Search incentives are also affected by patent law's rules regarding past conduct and by the possibility of holdup problems based on alleged infringers' product-specific investments. This Article demonstrates that patent law's liability rules may be generating inefficient levels of search and corresponding social welfare losses and proposes a simple doctrinal corrective.
The primary purpose of a patent law system should be to enhance economic efficiency, in particular by providing incentives for making inventions. The conventional wisdom is that patents should therefore be strictly exclusive rights. Moreover, in practice patent owners are almost never forced to give up their right to exclude others and receive only a certain amount of remuneration with, for instance, compulsory licensing. Other economically interesting patent-law objectives, however, include the transfer and dissemination of knowledge. Mechanisms exist by which the patent owner decides if he or she would prefer exclusive or non-exclusive rights, for instance the opportunity to declare the willingness to license and create patent pools. But it is questionable whether these mechanisms are sufficient and efficient enough in view of the existence of patent trolls and other problems. This work challenges the conventional wisdom to a certain extent and makes proposals for improvements.
Dr Jae Park is to be congratulated for turning our attention to this difficult and underexplored area. His work focuses on standards and patents but goes well beyond an initial first analysis. He examines the finer points of both sets of rules in order to find out exactly where the problem lies and he then looks at the existing mechanisms that could provide a solution. Many of these have their roots in the area of competition law, but his thorough analysis shows that competition law in its current form and with its current limitations is not the perfect tool to address the problems that arise when patented technology becomes the object of standardisation. This leads Dr Park to develop his own solution for the problem at hand: a solution which he finds in the dynamic liability rules regime. This book really breaks new ground and provides a first and thorough analysis of this rarely addressed but increasingly important area. From the foreword by Paul L.C. Torremans, University of Nottingham, UK This insightful book reviews the inherent conflict between patent rights and industry standards and through analysis of both US and European case law proposes measures to improve current systems and foster greater innovation. Jae Hun Park searches for the appropriate balance between the rights of patent owners and the need for industry standards within the scope of patent law. He considers the current solutions provided by legal systems and using cost benefit analysis evaluates, from a legal and economic perspective, whether patent systems can be improved. Jae Hun Park proposes reform to the patent system that would introduce a dynamic liability rule regime , rather than property rules . The dynamic liability rule regime adopts property rules at the stage when there are still competing standards, and liability rules at the stage when there are no competing standards. This would, he argues, resolve the conflict between patents and standards and mitigate the patent hold-up problem. This is a must-read book for scholars interested in technology patents, innovation and competition law and policy, as well as those individuals working in standard setting organisations. It will also be of great interest to patent offices, patent attorneys and competition lawyers.
The patent system is based on "one-patent-per-product" presumption and therefore fails to sustain complex follow-on innovations that contain a number of patents. The book explains that follow-on innovations may be subject to market failures such as hold-ups and excessive royalties. For decades, scholars have debated whether the market problems can be solved with voluntary licensing i.e., open innovation, or with compulsory liability rules. The book concludes that neither approach is sufficient. On the one hand, incentives to engage in open innovation practices involving patents are insufficient. On the other hand, the existing compulsory liability rules in patent and competition law are not tailored to address follow-on innovator's interests. To transcend this problem, the author proposes a compulsory liability rule against the suppression of follow-on innovation, that paradoxically, fosters early-on voluntary licensing between patent holders and follow-on innovators. The book is aimed at patent and competition law scholars and practitioners, patent attorneys, managers, engineers and economists who either engage in open innovation involving patents or conduct research on the topic. It also offers insights to policy and law-makers reviewing the possibilities to foster open innovation initiatives or adapt the scope of patent remedies or employ compulsory licenses for patents.
This book examines alternative ways of protecting patent rights using the law and economics framework of property and liability rules. Traditional compulsory licenses are compared with the most recent discussions on the choice between granting or denying injunctive relief for patents (ex post liability rules). The debate about strategic behaviour triggered by the patent system, especially in the aftermath of the U.S. Supreme Court decision in eBay v. MercExchange is discussed along with policy perspectives on both sides of the Atlantic. The problem of calculating the level of compensation, which is one of the most important critiques against the use of liability rules in patent law, is also examined in depth. The book concludes by suggesting that a coherent patent system could opt for property rules in general cases while leaving enough space for exceptions and limited liability rules. Curtailing exceptions and limitations to patent rights, including the use of patent liability rules, could otherwise risk stifling innovation and even contradicting the goals of patent law.
With reports from all major jurisdictions where the responsibility of facilitators and intermediaries for copyright and trade mark infringement have been litigated, this very useful book is the first comprehensive global survey of the liability regime that intermediaries may face when assisting others to directly infringe copyright and trade mark rights, or when providing others with the means to do so. It addresses such issues as the following: ISP liability; contributory and secondary liability for trade mark, copyright, and patent infringement; time- and geo-shifting devices and services; consumer identification through dynamic IP addresses; infringements committed on a “commercial scale”; liability of hosting providers; requirements for a breach of duty of care; notice to users to refrain from infringements; filters and other due diligence measures; “actual knowledge”; privacy and infringers’ personal data; file sharing services; online storage services; and liability of transporters and freighters. After a general introduction analysing relevant aspects of trade mark and copyright law, local experts provide detailed reports on positions in the EU (at the Community level), Germany, France, Italy, The United States, Japan, Korea, Australia, and New Zealand. As well as dealing with the issues, each report pays close attention to case law, legislative developments, and procedural issues of injunctive relief and damages. A final chapter covers comparative contributory patent infringement. Along with the very practical value the book offers corporate counsel charged with IP rights litigation, the authors shed light on the fundamental issue of whether attempts to broaden liability in this area are compatible with established IP principles such as territoriality, freedom to operate, and freedom of competition. As a result, the book will be welcomed by a wide spectrum of lawyers and others working in this rapidly growing field, including practitioners, policymakers, academics, and jurists.
The purchase of this ebook edition does not entitle you to receive access to the Connected eBook on CasebookConnect. You will need to purchase a new print book to get access to the full experience including: lifetime access to the online ebook with highlight, annotation, and search capabilities, plus an outline tool and other helpful resources. This comprehensive and up-to-date casebook on the law of patents features helpful introductory text, technologically-accessible cases, detailed comments, comparative, policy, and patent reform perspectives. The new Fifth Edition offers up-to-date Federal Circuit and Supreme Court case law, including Helsinn, Impression Products, Halo, and Promega, as well as detailed comments following the principal cases. This edition also features enhanced policy and comparative perspectives, as well as additional materials on patent reform perspectives (e.g. America Invents Act). New to the 5th Edition: Up-to-date federal circuit and Supreme Court case law, including Helsinn, Impression Products, and Halo Detailed substantive comments following the principal cases More statistics and charts, particularly relating to USPTO decision making and PTAB inter partes review Enhanced Policy and Comparative Perspectives Enhanced Patent Reform Perspectives (e.g. America Invents Act) Patent statute (both pre- and post-AIA) included in the back of the book Greater citation and discussion of patent law academic and empirical literature New and updated PowerPoint slides and companion website Professors and students will benefit from: Richness in doctrine, policy, and theory Concise, but thorough coverage Logical and accessible sequencing of chapters Helpful introductions to each chapter, transitional text within sections, and introductions and background information for most cases Detailed comments sections follow the cases, delving into the doctrine and policy, and comparative perspectives Perspectives throughout that provide stimulating points for discussion
Introduction -- The basics of patent law -- Patent intelligence needs -- Organizing and structuring an FTO study -- Project management -- Patent searching -- Analysis of patent search results -- Risk management -- Presenting, preserving, and protecting information and deliverables