Posts Tagged: "A.C. Aukerman v. R.L. Chaides Constr"

Supreme Court Eliminates Key Defense in Many Patent Infringement Suits

In a strong reversal of the Federal Circuit, the US Supreme Court held in SCA Hygiene Products Aktiebolag v First Quality Baby Products, LLC, No. 15-927 (March 21, 2017), that delay by a patentee will not give rise to a laches defense during the statutory six-year damages period under 35 U.S.C. § 286. Justice Samuel Alito authored the 7–1 majority opinion, extending the court’s decision in Petrella v. Metro-Goldwyn-Mayer, Inc. (2014), which held that laches is inapplicable for copyright infringement, a provision similar to Section 286 of the Patent Act… The Supreme Court noted that its determination regarding laches does not preclude a defense based on equitable estoppel…

A Brief History of Laches in Patent Law

The equitable doctrine of laches has existed in the United States court system since the founding of this country, originating from the English Courts of Equity. Laches has been applied to cases involving patent infringement and has been allowed as a defense by the court in instances at which legal and equitable relief was granted. On May 2, 2016, the Supreme Court granted a petition for certiorari for SCA Hygiene Products v. First Quality Baby Products. While this case could eliminate the defense of laches in patent infringement, it is important to understand where this doctrine came from and how it has been applied in patent law.

Federal Circuit en banc rules Laches Remains Defense in a Patent Infringement Suit

Despite the Supreme Court ruling that laches is no defense to a copyright infringement action brought during the statute of limitations, the Federal Circuit ruled laches can bar recovery of legal remedies in patent infringement. The Federal Circuit explained that the 1952 Patent Act codified the common law rule, meaning that laches was codified as a defense under 35 U.S.C. 282.
The Federal Circuit, sitting en banc, followed the common law principle that, ”[w]hen a statute covers an issue previously governed by the common law, [the Court] must presume that Congress intended to retain the substance of the common law.” The Federal Circuit also ruled that laches does not preclude an ongoing royalty.