Commil USA, LLC v. Cisco Systems, Inc.

Commil, holder of a patent for a method of implementing short-range wireless networks, sued, claiming that Cisco Systems, a maker and seller of wireless networking equipment, had directly infringed Commil’s patent in its networking equipment and had induced others to infringe the patent by selling the infringing equipment for use. After two trials, Cisco was found liable for both direct and induced infringement. Cisco had raised the defense that it had a good-faith belief that Commil’s patent was invalid, but the court found Cisco’s supporting evidence inadmissible. The Federal Circuit held that the trial court erred in excluding evidence of a good-faith belief that Commil’s patent was invalid. The Supreme Court vacated and remanded. A defendant’s belief regarding patent validity is not a defense to an induced infringement claim. The Court noted the long held presumption that a patent is valid; 35 U.S.C. 282(a) establishes a high bar, the clear and convincing standard, to rebut the presumption. If a patent is actually shown to be invalid, there is no patent to be infringed. Orderly administration of the patent system requires courts to interpret and implement the statutory framework to determine the procedures and sequences that the parties must follow to prove the act of wrongful inducement and any related issues of patent validity. Accused inducers who believe a patent is invalid have other, proper ways to obtain a ruling to that effect, including seeking ex parte reexamination. View "Commil USA, LLC v. Cisco Systems, Inc." on Justia Law