4 ms·

It's actually a common policy when it comes to patents. If you are found to infringe on a patent and it can be shown that you knew about it, the penalties are m

by chc 9y ago

It's actually a common policy when it comes to patents. If you are found to infringe on a patent and it can be shown that you knew about it, the penalties are much harsher. This is one of the many reasons people consider the patent system to be badly broken.

jakelazaroff 9y ago
Is there no similar penalty for intentionally foregoing due diligence specifically to avoid harsher penalties?
- chc 9y ago
  AFAIK, no. I don't know of any case law that says the reason you were unaware of the patent is relevant; just whether the infringement was "willful" — one component of which being knowledge of the patent.
- Lazare 9y ago
  There is not. If you know the patent exists, you get higher (I think triple?) damages. If you don't, you don't. And you have no obligation to check. Example: There is a patent in the US on ordering food from a menu online. It's held by a NPE (aka, a patent troll), and they charge a fairly high license fee. Some people who offer online ordering to restaurants pay the license fee; others don't. If you don't pay, then you can afford to charge lower prices than your competitors. If you do pay, then it's in your interests to tell everyone you meet about the patent, because every person you tell is someone who now faces triple damages if they opt to use on your your non-paying competitors. Let me say that again, because it's so crazy: Some companies actually advertise their high prices, because a potential customer just reading their pricing page can thereafter no longer opt for a lower priced competitor without being subject to increased damages.
  - rocqua 9y ago
    In some sense, reading this comment is actually harmful. I now know of that patent, so would be subject to triple damages.
  - optimuspaul 9y ago
    Good god how is that even patentable?? That's not at all novel.
    - mort96 9y ago
      Neither novelity nor lack of prior art are requirements for getting a patent, it seems. If a patent has prior art, or is incredibly obvious, that might help your case in court if you're getting sued, but if you're an individual or small company getting sued for patent infringement by a company with an army of lawyers, you've already lost.

by chc 9y ago

jakelazaroff 9y ago

Is there no similar penalty for intentionally foregoing due diligence specifically to avoid harsher penalties?

chc 9y ago
AFAIK, no. I don't know of any case law that says the reason you were unaware of the patent is relevant; just whether the infringement was "willful" — one component of which being knowledge of the patent.
Lazare 9y ago
There is not. If you know the patent exists, you get higher (I think triple?) damages. If you don't, you don't. And you have no obligation to check. Example: There is a patent in the US on ordering food from a menu online. It's held by a NPE (aka, a patent troll), and they charge a fairly high license fee. Some people who offer online ordering to restaurants pay the license fee; others don't. If you don't pay, then you can afford to charge lower prices than your competitors. If you do pay, then it's in your interests to tell everyone you meet about the patent, because every person you tell is someone who now faces triple damages if they opt to use on your your non-paying competitors. Let me say that again, because it's so crazy: Some companies actually advertise their high prices, because a potential customer just reading their pricing page can thereafter no longer opt for a lower priced competitor without being subject to increased damages.
- rocqua 9y ago
  In some sense, reading this comment is actually harmful. I now know of that patent, so would be subject to triple damages.
- optimuspaul 9y ago
  Good god how is that even patentable?? That's not at all novel.
  - mort96 9y ago
    Neither novelity nor lack of prior art are requirements for getting a patent, it seems. If a patent has prior art, or is incredibly obvious, that might help your case in court if you're getting sued, but if you're an individual or small company getting sued for patent infringement by a company with an army of lawyers, you've already lost.