Patents provide essential protections for doing business. There are a wealth of ways you can defend your work, but seemingly just as many where you may put them in jeopardy. A recent ruling made clear one more way your defenses may be at risk.
The U.S. Court of Appeals for the 11th Circuit ruled that Arctic Cat Inc. can’t seek back-damages from Bombardier Recreational Products Inc. for infringing on a patent. A steering system used in personal watercraft is at the heart of the violation, but a licensing deal made things a little more complicated.
Missing fine print
Arctic Cat sought damages under their patent since they weren’t actively producing the steering systems, a status that could remove the requirement for marking protected property. But the courts ruled that a deal they made years before had already sealed their fate. They had licensed the right to manufacture to another company without specifically requiring them to mark models with the patent number.
Once the licensed company turned-out steering systems without the proper stamp, Bombardier was not on the hook for infringement damages. Any producers will generally need to meet one of the marking standards as things start coming off the assembly line:
- Put the word “patent” or the abbreviation “pat.” along with your corresponding patent number on the product
- Place the information on the packaging that contains at least one of the items
- Affix a web address on either your product or the package that leads to a list of your patents
Unmarked products usually fail the notification test, and any infringers might only be liable for damages after you deliver notice of the over-step.
Even if you aren’t in the business of production, or you’re looking to maximize the use you get out of a patent, licensing is rarely as simple as handing the reins over. The responsibility to make sure everything stands up to regulations will generally fall on you, so it’s crucial to make sure everything is in place.