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Buyer Beware: When 'All Rights' Doesn't Mean What You Think

By Ann G. Fort and Darcy L. Jones
July 31, 2006

When drafting an assignment or litigating a case for a client who owns a patent by way of an assignment, many lawyers assume that an assignment giving the assignee 'all rights, title, and interest' allows the client to completely step into the shoes of the assignor. A patent assignment that purports to convey 'all rights' of the assignor, however, does not convey the right to sue for past infringement without an express provision granting the assignee this right.

Even though this rule is well established in case law since the 1860s, treatises and form books do not handle the rule consistently, and the unwary lawyer may discover later that a client does not have the right to sue for infringement that occurred before the assignment. Sometimes the discovery comes too late to repair the problem. The consequences for failing to heed this rule are particularly harsh for plaintiffs, who possibly face having their cases dismissed with prejudice. This article addresses the application of the 'prior infringement' rule in case law and the factors patent lawyers should take into account when drafting assignments and before initiating litigation.

The Right to Sue for Past Infringement

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