Patent Infringement Examples: A Guide to the Patent Litigation Process

September 16, 2024

Patents are a way to protect ideas and inventions and are an integral part of our legal system. They also help determine damages and compensation when there is an infringement…

Patents are a way to protect ideas and inventions and are an integral part of our legal system. They also help determine damages and compensation when there is an infringement of a patent.

Below are some of the most common patent infringement examples, as well as basic information about American patent law. Keep reading to find out which might apply to your circumstances and what course of action may be available to you.

What Is Patent Infringement?

Patent infringement is the unlawful use, selling, or copying of a patent-protected invention. U.S. law protects patents, which are a type of intellectual property.

To obtain a patent, an inventor must file a patent application with the U.S. Patent and Trademark Office (USPTO), the federal agency responsible for granting patents. Patents are distinct from other types of intellectual property, such as copyrights and trademarks, which are automatically shielded by the law.

Once approved, the patent covers the physical or intellectual invention, as well as the process of invention for a certain period. Violations of the patent are illegal, and the patent holder can seek damages through a civil suit.

Types of Patent Infringement

While there are many different ways that patent infringement can occur, violations can be categorized into a few simple categories.

Direct Infringement

Direct patent infringement occurs when a person, without authorization, makes, uses, sells, or offers to sell any patented invention during the patent term. Note that the party that violates the patent does not need to know that a patent exists or that they are in violation of it to be held liable.

Indirect Infringement

Indirect infringement occurs when an entity encourages, assists, or otherwise causes another party to violate an existing patent. There are two types of indirect infringement.

Induced infringement is a situation where one party is aware of the patent and knowingly causes another party to violate it directly. Contributory infringement is where the acting party provides a component or product to a third party that lets them violate the patent. Another important part of contributory infringement is that the component or product cannot have any other substantial use outside of activities related to the infringement.

Patent Infringement Examples

Examining patent infringement examples can help one better understand how patent lawsuits work. Here are some prominent instances in recent history.

Diamond vs. Chakrabarty

Diamond vs. Chakrabarty reached the United States Supreme Court in 1980. It revolved around whether living organisms could be patented.

Chakrabarty was an engineer who worked for General Electric (GE) and developed a type of bacteria capable of breaking down crude oil. The goal was to use it to treat oil spills. GE filed a patent, but the patent examiner rejected it.

GE filed a suit that reached the Supreme Court, which concluded that bacteria were invented and made in a way very similar to other non-living products and could be protected by a patent. The case has had significant implications for patent laws as they relate to the biotechnology industry.

LabCorp vs. Metabolite, Inc.

Another significant case involving life sciences was LabCorp vs. Metaboline, Inc. In 1999, Metabolite sued LabCorp over the use of a diagnostic test for which Metabolite had sought and received a patent. In the initial case, a district court ruled in favor of Metabolite and instructed LabCorp to pay them $4.7 million in damages.

LabCorp appealed the decision, arguing that the test involved “natural phenomena” that should never have been patented. The appeals court rejected this argument.

The U.S. Supreme Court initially decided to take up the case in 2006 but then dismissed it, thereby confirming the district and appeals courts’ decisions.

Apple Inc. vs. Samsung Electronics Co.

One of the most famous patent infringement lawsuits in recent history involved the two leading smartphone manufacturers in the world: Apple and Samsung. This refers not to a single lawsuit but a series of them. The “smartphone wars” went on for years, with billions of dollars at stake across dozens of lawsuits.

The original lawsuit by Apple alleged that Samsung had copied their patented design of the iPhone, along with touch-screen display, scrolling capabilities, and other features. Samsung’s countersuit claimed that Apple had violated several of its patents.

In 2012, a verdict was given in favor of Apple, with Samsung to pay more than $1 billion in damages. Samsung appealed the decision, arguing that the damages were excessive, given that the patent violations only involved certain aspects of the phones. The Supreme Court of the United States ruled in favor of Samsung in 2016, reducing the amount the company had to pay.

Diamond vs. Diehr

Diamond vs. Diehr is a famous 1981 case that involved the patentability of abstract ideas. It revolved around a 1976 patent application granted to the process of molding synthetic rubber into products.

In particular, the patent protected the development of a mathematical equation that allowed manufacturers to calculate, with the use of a digital computer, when to open a press and remove a molded rubber part. Before this time, the manufacturing process required workers to open the mold to check the temperature.

The original patent examiner rejected the invention because it involved steps performed by a computer program that was unpatentable. A federal appeals court reversed the decision, which was also upheld by the U.S. Supreme Court.

The Supreme Court’s decision in this case is notable because it distinguished between the patentability of mathematic formulas in the abstract and their specific uses in processes to create products (in this case, rubber ones). The case has been cited in various subsequent intellectual property cases to argue this distinction.

Learn More About the Patent Protection Process

These patent infringement examples give you a glimpse into the types of cases common in patent law. Understanding these can empower you or your company to protect your inventions. If you’re working to obtain patents or suspect violations of existing ones, an experienced attorney can guide you through the legal protection process.

Grellas Shah is a full-service boutique law firm with a strong record of providing high-quality legal representation. Our expertise spans startups, technology, venture law, and other forms of complex business litigation. Contact us today to discuss patent dispute resolution and litigation strategies, and rest assured that you’re in capable hands.