390:, or sue for minor damages in the law of unjustified threats. This may require the sender to appear in a distant court, at their own expense. So sending a cease-and-desist letter presents a dilemma to the sender, as it would be desirable to be able to address the issues at hand in a candid manner without the need for litigation. Upon receiving a cease-and-desist letter, the recipient may seek a tactical advantage by instituting declaratory-judgment litigation in a more favorable jurisdiction.
27:
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infringement. An express threat of litigation is not needed, nor is it a guarantee that jurisdiction will be granted. Some factors courts have considered in this analysis are whether a patent owner has asserted its rights against an alleged infringer in a royalty dispute, whether the owner has sued a customer of an alleged infringer, or whether an owner has made statements regarding its patents in trade magazines.
509:, 401 U.S. 66, 70 (1971) (âAlthough the declaratory judgment sought by the plaintiffs was a statutory remedy rather than a traditional form of equitable relief, the Court made clear that a suit for declaratory judgment was nevertheless âessentially an equitable cause of action,â and was âanalogous to the equity jurisdiction in suits quia timet or for a decree quieting title.ââ) (citations omitted)
755:, 746 F.2d 323, 325 (6th Cir. 1984) (âTitle 28 of the United States Code § 2201 provides that in âa case of actual controversy within its jurisdictionâ a federal court âmayâ give a declaratory judgment, a power permissive, not mandatory. Although it is well settled that the granting of a declaratory judgment rests in the "sound discretion" of the courtâ).
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If a patent owner does suggest that there is patent coverage of what an alleged infringer is doing or planning to do, the alleged infringer may bring suit. The alleged infringer, as the plaintiff in the suit, can choose the venue subject to constitutional restrictions and the state long-arm statute
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continuously accrue â with no effort expended by the patent owner, apart from marking the patent number on products the patent owner sold or licensed. On the other hand, the alleged infringer could do nothing to rectify the situation if no declaratory judgment existed. The alleged infringer would
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to prevent further lawsuits from the same plaintiff (for example, when only a contract claim is filed, but a copyright claim might also be applicable). In some instances, a declaratory judgment is filed because the statute of limitations against a potential defendant may pass before the plaintiff
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Usually the claimant is actually making, using, selling, offering to sell, or importing, or is prepared to actually make, use or sell, offer to sell or import an allegedly infringing device or method, and usually the patent owner has claimed that such activities by claimant will result in patent
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exists. If there is a substantial controversy of sufficient immediacy and reality, the court will generally proceed with the declaratory-judgment action. The court may even hear the action if the patentee has not filed a cease and desist letter. The standard for an actual controversy was most
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Sometimes the parties agree in advance of discussions that no declaratory-judgment lawsuit will be filed while the negotiations are continuing. Sometimes a lawsuit is filed, but not served, before sending such a notice, to preserve a jurisdiction advantage without engaging the judicial process
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be forced to continue to operate his business with the cloud of a lawsuit over his head. The declaratory-judgment procedure allows the alleged infringer to proactively bring suit to resolve the situation and eliminate the cloud of uncertainty looming overhead.
422:
Common claims for declaratory judgment in patent cases are non-infringement, patent invalidity, and un-enforceability. To bring a claim for declaratory judgment in a situation where a patent dispute may exist or develop, the claimant must establish that an
284:. It is a form of legally binding preventive by which a party involved in an actual or possible legal matter can ask a court to conclusively rule on and affirm the rights, duties, or obligations of one or more parties in a
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to a claim for declaratory judgment of non-infringement. If a patent owner fails to assert an infringement counterclaim in a declaratory-judgment non-infringement suit, the patent infringement claim will be deemed waived.
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letter to another party. A party contemplating sending such a letter risks that the recipient, or a party related to the recipient (i.e. such as a customer or supplier), may file for a declaratory judgment in their own
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fully. Some parties send cease-and-desist letters that make "an oblique suggestion of possible infringement" to lower the risk of the recipient filing a declaratory-judgment lawsuit.
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litigation, because declaratory judgments allow an alleged infringer to "clear the air" about a product or service that may be a business's focal point. For example, in a typical
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of the forum in question. The suit can be brought in any forum if the local federal district court can properly obtain personal jurisdiction over the alleged infringer.
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claim, when a patent owner becomes aware of an infringer, the owner can simply wait until he pleases to bring an infringement suit. Meanwhile, the
686:"Patent Marking Requirements: Patented Articles Must be Marked as Patented in Order For Patentee to Recover Damages Due to Patent Infringement"
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28 U.S.C.S. § 2201 (âAny such declaration shall have the force and effect of a final judgment or decree and shall be reviewable as such.â)
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may be shorter than the time period the IRS has to assess a taxpayer for additional tax due to bad advice given by the CPA).
307:, and is thus not subject to equitable requirements, though there are analogies that can be found in the remedies granted by
655:"Patent Law: "Reasonable Apprehension" After Receipt of Cease-and-Desist Letter Grounds for Declaratory Judgment Action"
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521:, 474 U.S. 64, 72 (1985) (âThe propriety of issuing a declaratory judgment may depend upon equitable considerationsâ).
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434:, 549 U.S. 118 (2007). But even if an actual controversy exists, the declaratory-judgment statute is permissiveâa
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and most states enacted statutes in the 1920s and 1930s authorizing their courts to issue declaratory judgments.
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but the lawsuit has not yet been filed; or when a party or parties believe that their rights under law and/or
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to each party in a matter when this could resolve or assist in a disagreement. Often an early resolution of
497:, 485 U.S. 271, 284 (1988) (âActions for declaratory judgments are neither legal nor equitable . . . .â).
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deal primarily with the United States and do not represent a
730:. Houstoninternetlaw.com. September 23, 2008. Archived from
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Patent
Attorney | Orange County | OC Patent Lawyer
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will resolve some or all of the other issues in a matter.
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A declaratory judgment is generally distinguished from an
295:). The declaratory judgment is generally considered a
832:Bray, Samuel L. (2010). "Preventive Adjudication".
398:Declaratory judgment actions in patent litigation
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530:See Declaratory Judgment Act, 28 U.S.C.S. § 2201
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795:Vivid Techs., Inc. v. Am. Sci. & Eng'g Inc.
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326:because the latter does not resolve an actual
775:Grand T. W. R. Co. v. Consolidated Rail Corp.
753:Grand T. W. R. Co. v. Consolidated Rail Corp.
495:Gulfstream Aerospace Corp. v. Mayacamas Corp.
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34:The examples and perspective in this article
428:recently addressed by the Supreme Court in
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817:Federal Rules of Civil Procedure, Rule 57
406:litigation, as well as in other areas of
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452:A counterclaim of infringement is a
402:Declaratory judgments are common in
330:. Declaratory judgments can provide
272:, also called a declaration, is the
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715:MedImmune, Inc. v. Genentech, Inc.
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728:"Cease and Desist Letter"
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588:"Cease and Desist Letter"
781:August 20, 2011, at the
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813:â Declaratory judgment
657:. Library.findlaw.com
408:intellectual property
116:Consequential damages
270:declaratory judgment
205:Election of remedies
159:Specific performance
54:create a new article
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412:patent-infringement
328:case or controversy
274:legal determination
734:on August 20, 2011
625:. January 6, 2010.
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