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Recognizing a Problem Is the First Step: Federal Circuit Acknowledges Unsettled Law, But Declines to Clarify

By Paul A. Ragusa and Edward R. Tempesta
March 29, 2006

The tort of induced patent infringement codified in 35 U.S.C. '271(b) is a powerful tool that patent owners can use when it is not feasible or practical to sue a direct infringer. In order to prove this claim, a patent owner must establish that 1) its claim is directly infringed by a third party, 2) that the defendant induced that third party to infringe, and 3) that the defendant possessed intent to encourage that party to infringe.

The precise level of intent that must be shown to hold a party liable, however, has been unclear at least since the Federal Circuit issued a pair of decisions in 1990, Hewlett-Packard Co. v. Bausch & Lomb, Inc., 909 F.2d 1464, 1469 (Fed. Cir. 1990) and Manville Sales Corp. v. Paramount Sys., Inc., 917 F.2d 544, 546-49 (Fed. Cir. 1990).

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