Overview of Intellectual Property Litigation

Intellectual property litigation involves disputes over the ownership and control of creations and inventions. Intellectual property (IP) includes patents, trademarks, and copyrights, which give you control over the use, licensing, or sale of your creation. If someone uses your intellectual property without permission, you can file a lawsuit to stop them from using it and get monetary compensation.

Most IP law falls under federal jurisdiction. In IP litigation, legal remedies include monetary damage and injunctions. For legal advice about IP and copyright infringement, talk to an intellectual property law attorney.

What Is Intellectual Property Litigation?

Intellectual property litigation involves lawsuits over intellectual property rights, including copyright, trademark, and patent claims. IP rights include copyrights, trademarks, patents, and trade secrets.

Under federal law, the U.S. Patent and Trademark Office (USPTO) manages IP applications and disputes. The Patent Trial and Appeal Board (PTAB) conducts patent application trials and inter partes reviews. Federal courts handle intellectual property lawsuits and infringement cases.

State courts can handle some trade secret and trademark claims. The International Trade Commission (ITC) deals with international infringement disputes.

Types of Intellectual Property Disputes

Intellectual property disputes involve legal claims over the unauthorized use of registered and unregistered IP. Types of intellectual property disputes include infringement, licensing, and antitrust disputes.

Copyright Litigation

Copyright protection applies to original works of authorship fixed in a tangible medium, including digital media. Examples of copyrighted materials include literary, musical, motion picture, and architectural works.

Authors have the exclusive right to reproduce, distribute, display, license, or sell their work. Though copyright protections automatically apply when a work is created, registration gives the owner stronger legal rights.

There are legal defenses to copyright infringement claims. For example, fair use covers parodic and educational uses of copyrighted material. The factors to determine whether use is fair or infringement include:

• Purpose and character of use
• Nature of the work
• Amount and substantiality of the work used
• Effect on the value or market for the work

Patent Litigation

Patents protect unique inventions, including utility, design, and plant inventions. The inventor has the exclusive right to benefit from their creation.

Patent infringement involves unauthorized use or creating a substantially similar product without license. The patent owner can file an infringement lawsuit in federal court to enforce their patent rights.

Trademark Litigation

Trademarks are protected designs, symbols, or phrases that identify a product or company. Having a registered trademark helps prevent others from using similar marks to benefit from the known brand’s reputation.

Trademark protections include trade dress, which refers to the visual appearance of a product. When someone is using a trademark owner’s mark without permission, the owner can file a trademark infringement lawsuit.

Trade Secret Litigation

A trade secret is information with economic value that is unique or not commonly known and that would be valuable to others. Trade secrets include things like formulas, recipes, and technical data. For example, the KFC Original Recipe is a trade secret, as is the Coca-Cola formula.

Businesses or trade secret owners can file a lawsuit for improper misappropriation of trade secrets. However, independent invention or reverse engineering a trade secret are legal defenses to misappropriation charges.

The IP Litigation Process from Start to Finish

Intellectual property litigation is a long legal process that can take years to resolve. Many disputes start with a demand letter. The parties can negotiate a possible settlement or go to mediation to avoid a lawsuit.

The court process begins with the plaintiff filing a complaint against the defendant, laying out the basis for their claim. The complaint is served on the defendants, giving them notice of the legal proceedings. The defendants file an answer in response laying out their case.

The parties then exchange information in discovery. Discovery includes interrogatories, production of documents, and depositions for testimony under oath. Discovery can take a long time to gather, exchange, and review relevant evidence. If one party does not provide all the information, the other side can file a motion to compel to force them to turn over documentation.

After exchanging all information, the parties go through pretrial motions. They may file for summary judgment to have the court dismiss the case before going to trial. These motions also involve trying to suppress evidence or limit the scope of the trial. The court may also try to get the parties to settle before trial.

If the case goes to trial, the parties and the judge select the jury. The parties present their case to the jury, introducing evidence and using witness testimony. In IP litigation, the case may involve expert witnesses to help the jury understand scientific or technological evidence. After concluding statements, the judge gives the jury instructions to come to a decision. The court reads the jury verdict and any findings for damages.

Even after a trial verdict, either party can file an appeal. There are limited grounds to file an appeal. The appeals process can continue through the Court of Appeals for the Federal Circuit up to the Supreme Court.

Potential Outcomes of IP Cases

The potential outcomes of an IP lawsuit include dismissing the case, a settlement agreement, or going to trial. The court can dismiss a lawsuit for various reasons, including lack of jurisdiction, no material facts in dispute, or failure to prosecute.

The defendant can file a motion to dismiss the lawsuit for lack of jurisdiction. Lack of jurisdiction means the court does not have the authority to review or rule over the case. This includes lack of subject matter jurisdiction (like filing a trademark litigation case in family court), or personal jurisdiction (like filing trade secret litigation against someone in another country).

Failure to prosecute generally means the plaintiff does not pursue the legal action. For example, someone files an infringement claim against a movie studio for the unauthorized use of their novel. After the movie studio files an answer, the plaintiff never responds to any other court deadlines. The court can dismiss the case for failure to prosecute or comply with court rules.

If the intellectual property dispute goes to trial, the trier of fact will determine the outcome of the case. In civil litigation, the trier of fact is either a judge or jury. In a jury trial, a group of people will decide the facts in dispute and give their verdict. The jury bases its decision on the preponderance of the evidence, or more likely than not.

Most civil lawsuits never get to a jury. Even if there are material issues of fact in dispute, the parties are more likely to settle the lawsuit before proceeding to trial. As lawsuits develop, both sides have a better idea of the potential merits and value of the dispute. Many lawsuits settle just before going to trial. Even if the plaintiff has a strong case, a settlement is a way to get a guaranteed payout without the costs, time, and stress of a trial.

Arbitration and mediation are types of alternative dispute resolution that avoid the cost and time of going through the courts. Binding arbitration uses an arbitrator to make findings that both parties agree to follow. Arbitration is also a way for the parties to resolve their dispute privately, without their confidential information going on the public record.

Legal Remedies in an Intellectual Property Lawsuit

When filing an IP lawsuit, the plaintiff wants something out of the process. These are their legal remedies. Legal remedies in an IP case include monetary damages and injunctive relief. For some registered IP lawsuits, the IP owner can also recover attorney fees associated with the costs of filing a lawsuit.

Monetary damages are financial compensation for IP violations. An injunction is a court order requiring a party to do something or not do something. Many copyright litigation cases start with a preliminary injunction, which is a temporary limit. The court can grant a temporary injunction until it determines whether there is a misappropriation, and then grant a permanent injunction.

How an IP Litigation Attorney Can Help

An IP litigation lawyer can help you through the legal process to resolve any disputes in your favor. If you are a patent or copyright holder, an attorney can explain your legal options and take legal action to protect your intellectual property rights.

If someone claims patent infringement, a patent litigation attorney can represent you in your defense. For more information about how an IP attorney can help with litigation, contact an experienced intellectual property litigation attorney.