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Firms Seek Successful Patent (Non) Litigation

By Brian L. Michaelis and Mark S. Baldwin
February 01, 2004

For emerging technology companies, a product that produces revenues is the lifeblood and should be protected at all costs. But when it comes to patent litigation, all but the largest technology companies should avoid the mind-set that they are suing to a conclusion, as either plaintiff or defendant. The objective is to make a reasonable intellectual property deal, sooner rather than later, and focus on competition in the marketplace ' not the courtroom.

Patent litigation is a bloody battle and carries a high incidence of corporate morbidity. Litigants are frequently surprised, if not shocked, by the cost and extent of patent litigation. In Connecticut, litigation of a single patent is likely to cost in excess of $2 million and typically lasts more than 2 years. Beyond the cost and extent, patent litigation is risky.

The metes and bounds of patent rights lie in the claims. In 1996, the U.S. Supreme Court ruled that patent claim construction was a matter of law in Markman v. Westview Instruments, Inc. Implicitly, the Markman decision was an invitation for district courts to hold hearings (“Markman hearings”) to construe the meaning of claims in suit. Determinations made in Markman hearings in federal district courts throughout the United States are reviewed by a single patent appeals court, the Court of Appeals for the Federal Circuit (CAFC).

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