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Having an LLC license the IP to a C Corp will not protect the C Corp from a patent infringement suit. The patent holder could go after either entity. The defin

Having an LLC license the IP to a C Corp will not protect the C Corp from a patent infringement suit. The patent holder could go after either entity. The definition of infringement is broad and does not distinguish between licensor and licensee: "Except as otherwise provided in this title, whoever without authority makes, uses, offers to sell, or sells any patented invention, within the United States or imports into the United States any patented invention during the term of the patent therefor, infringes the patent." [1] This is why patent trolls like Lodsys go after individual app developers, even though the developers are licensing the allegedly infringing tech from Apple. Standard Legal Advice Disclaimer: I am a lawyer, but I am not necessarily your lawyer. [1] http://www.law.cornell.edu/uscode/text/35/271 http://www.law.cornell.edu/uscode/text/35/271

zbruhnke 13y ago
This makes sense, out of curiosity however and only for the sake of research and free legal advice I have one more question ;) If said C-Corp denies knowledge that the LLC was infringing and then ceases to "license" the technology at the time of the C&D could it free the C-corp from liability?
- andrewfong 13y ago
  No, knowledge of infringement is not required to be liable. Proof of "willful infringement" will result in higher damages, but even without willfulness or knowledge of the patent, you could still face some pretty hefty damages. Part of why patent trolls are so unpopular is precisely because they go after folks who have no reason to suspect they might be infringing. The scanner trolls are a good example of this. [1] [1] http://arstechnica.com/tech-policy/2013/01/patent-trolls-want-1000-for-using-scanners/ http://arstechnica.com/tech-policy/2013/01/patent-trolls-wan...
  - mikeg8 13y ago
    Thank you very much for your answers. They were interesting and helpful.

zbruhnke 13y ago

This makes sense, out of curiosity however and only for the sake of research and free legal advice I have one more question ;) If said C-Corp denies knowledge that the LLC was infringing and then ceases to "license" the technology at the time of the C&D could it free the C-corp from liability?

andrewfong 13y ago
No, knowledge of infringement is not required to be liable. Proof of "willful infringement" will result in higher damages, but even without willfulness or knowledge of the patent, you could still face some pretty hefty damages. Part of why patent trolls are so unpopular is precisely because they go after folks who have no reason to suspect they might be infringing. The scanner trolls are a good example of this. [1] [1] http://arstechnica.com/tech-policy/2013/01/patent-trolls-want-1000-for-using-scanners/ http://arstechnica.com/tech-policy/2013/01/patent-trolls-wan...
- mikeg8 13y ago
  Thank you very much for your answers. They were interesting and helpful.