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TRANSCRIPT
Presenting a live 90‐minute webinar with interactive Q&A
NPEs in Patent Litigation: Latest DevelopmentsLeveraging the AIA’s Joinder Provision, Recent Decisions, and New Court Procedures in Defending Infringement Disputes
Today’s faculty features:
1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific
TUESDAY, JANUARY 17, 2012
Today s faculty features:
R. David Donoghue, Partner, Holland & Knight, Chicago
Dana M. Herberholz, Parsons Behle & Latimer, Boise, Idaho
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NPEs in Patent Litigation: Latest Developments
Dana M. HerberholzParsons Behle & Latimer960 Broadway, Suite 250
R. David DonoghueHolland & Knight LLP131 S. Dearborn Street
Boise, Idaho 83706Telephone: 208.562.4906
Chicago, Illinois 60603Telephone: [email protected]
Copyright © 2011 Holland & Knight LLP. All Rights Reserved
OVERVIEW
• What is an NPE?• What does it want?• NPE-proofing
D ’t t t f (AIA) fi thi ?• Doesn’t patent reform (AIA) fix everything?• Responding to the letter – a plan• Defending the suit a plan• Defending the suit – a plan• NPE costs – a plan
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WHAT IS A NPE?
• Non-practicing patent owner
• No counterclaims
• No business realities/just economics
• Contingent fee• Contingent fee
• Pornography
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WHAT DOES IT WANT?
• Money• Upfront• Overtime (rare)
L P i• Leverage Pain• Front-loaded effort• Any win (sometimes)• Any win (sometimes)
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NPE-PROOFING
• Avoid success and profit• Do not win industry awards
D t i i t k ti i• Do not engage in prominent marketing campaigns• No internet-based marketing• Avoid products with internet based offerings• Avoid products with internet-based offerings• Develop a NPE plan
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NPE-PROOFING
• Avoid products with internet-based offerings
D l NPE l• Develop a NPE plan• Pre-litigation demand strategy• Litigation strategyt gat o st ategy• Defense costs
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Doesn’t patent reform (AIA) fix everything?
• The AIA’s key provisions:
• First to file system• First-to-file system
• False marking heavily restricted
• No joinder of unrelated defendants
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Doesn’t patent reform (AIA) fix everything?
• The AIA’s key provisions:
• Best mode defense eliminated• Best mode defense eliminated
• No opinion letter ≠ willfulness or inducement
• Expanded prior use defense
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RESPONDING TO THE LETTER – A PLAN
R i d d t d ll ti• Review and understand allegations
• Seek clarification if you do not understand y
• Many NPEs will give an early presentation
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RESPONDING TO THE LETTER – A PLAN (CONT’D)
D dili• Due diligence
• Do we do it? Did we do it before them?
• Any revenue?
• The patent(s)• Expiration • Priority• Scope
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RESPONDING TO THE LETTER – A PLAN (CONT’D)
I d it• Indemnitors
• Take over defense or file separate action
• Competitors
• Counsel?
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RESPONDING TO THE LETTER – A PLAN (CONT’D)
• Respond courteously (if at all)
• Get time.
• Do not engage
• Tell them if they are wrong but only if absolutely clear• Tell them if they are wrong, but only if absolutely clear
• Less is more
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A PLAN (CONT’D)
Dear NPE,
We respect third party intellectual property. We are investigating this matter carefully and will respond within XX days.
Kind regards,
Legitimate Business
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A PLAN (CONT’D)
What comes next?• Wait (hope) • Declaratory judgment
I d it t ?• Indemnitor acts?• Defense
• Show non infringement• Show non-infringement• Iron-clad prior art• Upstream licenseUps ea ce se
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DEFENDING THE SUIT-A PLAN
• Reexam and stay• Cannot change course• May not get to stay
S lidit /l lidit t• Super-validity/lose validity arguments
• Answer and fight• Answer and fight• Expensive• Resource drain – people and corporate attentionesou ce d a peop e a d co po a e a e o
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DEFENDING THE SUIT-A PLAN (CONT’D)
• Transfer• Jurisdiction dependent
• Move to dismiss• Jurisdiction dependent (Twombly/Iqbal)• Jurisdiction dependent (Twombly/Iqbal)
• Early mediationa y ed a o• Only if settlement possibility• Early exchange of sales data?
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DEFENDING THE SUIT-A PLAN (CONT’D)
• What works?• Start telling your story
Sh l t th tf l b t diffi lt• Show early strength – respectful, but difficult• Propose ways to streamline (early SJ or Dep)• Early mediation (sometimes)• Early mediation (sometimes)• Get experienced counsel/know the rules and judge• Motion for exceptional case finding, costs, attorneys’ o o o e cep o a case d g, cos s, a o eys
fees, and/or Rule 11 sanctions (in appropriate cases)
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DEFENDING THE SUIT-A PLAN (CONT’D)
• What does not work?
W iti• Waiting• Avoiding discovery• Fighting the process• Fighting the process
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NPE COSTS – A PLAN
• Get a realistic budgetg• Tight leash• Regular weekly updates
• Partner with counsel• Engage business leaders
?• In-house dedicated resources?• Early discovery gathering and production• Strategic fights not all fights• Strategic fights, not all fights• Smart, early trial preparation
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QUESTIONSR David Donoghue Dana M HerberholzR. David Donoghue
Holland & Knight LLP131 S. Dearborn StreetChicago, Illinois 60603
T l h 312 578 6553
Dana M. HerberholzParsons Behle & Latimer960 Broadway, Suite 250
Boise, Idaho 83706T l h 208 562 4906Telephone: 312.578.6553
www.retailpatentlitigation.com
Telephone: [email protected]
www.nwpatentlitigation.com
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