Understanding Patent Infringement

Introduction

In the realm of intellectual property law, patent infringement is an act that occurs when someone makes, uses, sells or imports a patented invention without permission of the patent owner. Patent law is designed to foster innovation by providing inventors the right to exclude others from exploiting their inventions for a limited time. When any of these rights are infringed, it leads to patent infringement, which has legal consequences.

This article discusses the elements of patent infringement with examples, kinds, punishment, leading cases, especially in India.

Patent Infringement Examples

To better understand patent infringement, let's look at some real-world patent infringement examples:

1. Apple v. Samsung: Perhaps one of the most well-known examples of patent infringement was the case of Apple suing Samsung over the alleged infringement of several patents related to smartphone designs and functionality. Apple contended that Samsung had copied aspects of its smart phone’s design, including its shape and interface. This case highlights how design and utility patents can be at the centre of infringement cases.
2. Amazon’s One-Click Patent: Amazon received a patent for its one-click purchase system in the early 2000s. Amazon took Barnes & Noble to court claiming the retailer was infringing this patent with a competing feature. This example illustrates that not all patents cover concepts that are novel and complex; many relate to innovations that appear quite simple.
3. Gilead vs. Merck: In the pharmaceutical industry, Gilead Sciences was found to have infringed on Merck’s patents related to a drug for treating Hepatitis C. This case involved highly technical patents related to medical treatments, showing that patent infringement can occur in highly specialized fields as well.

Is Patent Infringement a Crime?

While patent infringement can have serious legal and monetary consequences, however, it is important to clarify that patent infringement is not a crime. In most jurisdictions, including India, patent infringement is a civil offense, not a criminal one.?

This allows the patent-holder to sue in civil courts for remedies such as damages or injunctive relief. But that being said, if the infringement includes fraud or malicious intent, then it may be pursued as a criminal case, but this is rare.

Types of Patent Infringement

Patent infringement can take various forms, broadly classified into the following categories:

1. Direct Infringement: An individual or company directly uses or sells a patented product or process without the consent of the patent holder. Examples of direct infringement include manufacturing and selling a product that embodies a patented invention.
2. Indirect Infringement: This includes contributory infringement and induced infringement

• Contributory Infringement: The supplier of components of a patented invention (in a form unrelated to the invention) who knows that they will be used in an infringing product or process
• Induced Infringement: Encouraging or aiding another party to infringe a patent.

1. Wilful Infringement: This occurs when the infringer consciously and deliberately infringes on the patent holder’s rights and can often lead to increased damages in court if demonstrated.
2. Literal Infringement:? this occurs when an infringing product or process exactly matches all the claims of the patent.
3. Doctrine of Equivalents: Even if a product or process does not exactly match the patent’s claims, it can still be considered infringing if the product or process performs the same function in a substantially similar way to achieve the same result.

Patent Infringement Cases

Some landmark patent infringement cases provide insights into how courts handle such disputes:

1. Novartis AG vs. Union of India (2013): In this case, the Indian Supreme Court rejected Novartis' patent application for its cancer drug Glivec, which led to a larger debate over the patentability of pharmaceutical inventions in India. And while it wasn’t exactly a classic instance of infringement, it established a precedent for how India would treat patents — especially patents covering life-saving medicines.
2. F. Hoffmann-La Roche Ltd. vs. Cipla Ltd. (2008): In this case, Roche sued Cipla for patent infringement regarding its lung cancer drug Tarceva. Cipla subsequently obtained a court injunction allowing it to continue selling its generic version of the drug, with the Delhi High Court noting the public interest in making the drug available as an affordable alternative. This case highlighted the Indian dilemma between patent protection and public health.

Patent Infringement in India

In India, patent infringement is primarily governed by the Indian Patents Act, 1970, which provides the patent holder the exclusive rights to manufacture, use and sell the patented invention within India. The patent owner is an exclusive right-holder and infringing that right may lead to a lawsuit.

In India, infringement can be either direct (direct manufacturing or selling of the product) or indirect (supply of components of a patented invention or requested inducement). Under Indian law importing patented products without authorization also constitutes infringement.

Defences to Patent Infringement in India

In patent infringement cases, the accused party may raise several defences to patent infringement in India, such as:

1. Invalidity of the Patent: A defendant might also argue that the patent is invalid for lack of novelty, non-obviousness, or sufficiency of disclosure.

2. Non-infringement: The defendant may claim that their product or process does not infringe the patent’s claims.

3. Statutory Exemptions: The Indian Patents Act provides certain exemptions from patent infringement, such as the use of a patented invention for experimental or research purposes, and for the regulatory approval of pharmaceuticals (Bolar provision).

4. Exhaustion of Patent Rights: If the patented product has already been sold by the patent holder or with their consent, the defendant can argue that the patent rights have been exhausted.

Patent Infringement Penalties

The penalties for patent infringement depends on the nature and severity of the infringement as well as the jurisdiction in which it occurred. Under Indian law also, the following remedies are available to a patent holder:

• Injunctions: A court order that legally prevents the infringer from continuing the infringing act.
• Damages: Compensation for the loss experienced by the patent holder as a result of the infringement.
• Account of Profits – The court can order the infringer to pay over their profits from the infringement rather than award damages.

While there are no criminal penalties for patent infringement in India, wilful infringement can result in higher damages or more severe penalties in civil court.

Conclusion

Patent infringement is a serious matter and can result in severe financial and legal consequences for anyone who infringes upon the patents. All patent holders as well as businesses must be aware of the different types of infringement, the various defences to the infringement and how the patent law works in India. If patent holders are diligent, they can not only be in a better position to protect their inventions, but also are able to respond even before infringing activities arise and need be addressed.