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Posts Tagged: "patent small claims"

Despite the FTC headlines, the patent system is not working for a large population of patentees

Despite the headlines, most infringement is small infringement. The FTC report ignores three important sea changes in the patent ecosystem that should, if anything, obliterate the use of settlement demand amounts or final license fees as any touchstone of bad faith. These are (1) the ten-year long movement to “rationalize” (actually, reduce) patent damages, (2) the “thumb on the scales” given to accused infringers in recent court holdings and legislation (primarily Alice invalidation, revitalized obviousness doctrine, and no-upside-but-everything-to-lose PTAB proceedings), and (3) increased infringer opportunities to extract monetary awards from plaintiff-patentees (Octane/Highmark).

PTO Considering Patent Small Claims Proceedings

I think it is about time the U.S. adopts a small claims proceeding so that patent owners have a meaningful mechanism to seek redress for smaller cases of infringement. Patent owners faced with one or more infringers in the marketplace can experience very real and damaging effects when the dollars involved are measured in the tens of thousands. But under the current patent infringement resolution mechanisms it frequently doesn’t make sense to pursue infringement from a financial standpoint even when infringement is measure in hundreds of thousands of dollars. Indeed, very real infringement can be devastating to small businesses and individual patent owners even though the amounts at stake do not justify the exorbitant costs associated with pursuing patent infringers in federal court.