In a patent infringement lawsuit, a patent holder can seek several remedies. The choice of remedies depends on the nature of rights enforcement sought and legal injuries sustained. In general, the available options include adequate compensation for monetary damages and recovery of earned profits, besides legal costs. Further, reliefs of injunctions, attachment orders and asset forfeiture may be prayed for.
An injunction is an equitable order issued by a court that compels the infringer to refrain from continuing their infringing actions. It is aimed at protecting the patent holder from harm during the pendency of the suit.
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Injunctions may be either temporary or permanent. The former is issued for a temporary period, often until the final judgment. It is an ad interim relief granted, often ex parte, to the applicant, that is, the patent holder, who must: (a) make out a prima facie case; (b) show irreparable loss or injury that cannot be compensated in money; and, (c) establish that balance of convenience favours him.
Contrarily, a permanent injunction is issued after the case has been fully decided during the trial. Itis an order that prohibits permanently the infringer from engaging in the infringing activity.
Monetary reliefs for damages suffered consequent to the infringement include: (a) compensation for losses due to lost sales and profits; (b) rendition of accounts and payment of profits earned by the infringer from the patent infringement; (c) interest on damages awarded, which may accrue from the time the infringement occurred; and, (d) payment of legal costs—this includes court fees, expert witness fees, litigation expenses, etc.—to the successful party.
It is to be borne in mind though that the plaintiff (patent holder) can opt only for either monetary damages to cover losses or an ‘account of profits’ of the infringer by virtue of the alleged infringement—these remedies are not usually awarded together. The plaintiff may also seek reasonable royalty payments optionally from the infringing party.
The court also has the power to order the confiscation, forfeiture, destruction, surrender or seizure of infringing goods, along with the materials, machinery and implements used in the manufacture or production of such goods. In some other jurisdictions, authorities can even seize infringing goods at the border under applicable customs enactments.
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Interim relief of attachment orders—they are legal instructions, issued by a government authority or a court, to secure a person's assets, such as bank account balances, to recover dues—may also be sought in appropriate cases.
The concept of proportionality is often used as a criterion of fairness and justice for interpreting patent law and justifying remedies in infringement litigation. It dictates that an action, punishment or intervention should not be more severe than what is necessary.
Courts apply the proportionality principle when granting reliefs in patent infringement cases. Factors like the severity of the infringement and the impact of the remedy granted or order passed on third parties are often considered to ensure a just and equitable balance between the two.
At BLAZEVENTURES, we have elaborate processes and qualified professionals for strategically advising inventors and enterprises on the remedial measures to seek in patent infringement lawsuits.
