Publications

Home 9 Publication 9 In re Seagate Technology: Wilfulness and Waiver, a Summary and a Proposal

In re Seagate Technology: Wilfulness and Waiver, a Summary and a Proposal

May 14, 2007

Patently-O Patent L.J. 1

Michael J. Kasdan, Joseph M. Casino

INTRODUCTION

Almost every patent infringement complaint includes a boiler-plate notice- pleading-style charge of “willful infringement.”1 If proven, this charge can be the basis for an award of enhanced damages up to three times the actual damages, at the discretion of the trial court.2 However, in addition to the monetary risk that such a charge brings, the inclusion of a willful infringement charge raises a significant practical dilemma for accused infringers.

Under the current legal framework of the doctrine of willfulness, a charge of willful infringement puts the state of mind of the defendant at issue; and the question as to whether the accused infringer’s infringement was “willful” often puts at issue that party’s communications with its patent counsel. A long-standing defense to a charge of willful infringement has been the “advice of counsel defense,” i.e., that upon learning of the patent, the accused infringer consulted with patent counsel, and relied upon a competent opinion of counsel that the patent was invalid, not infringed, or not enforceable. Effectively defending against willfulness by relying on a competent well-reasoned opinion of counsel requires some waiver of the attorney-client privilege to allow the patent-owner discovery as to how the opinion and related communications affected the state of mind of the accused infringer. This necessarily injects complex waiver of attorney-client privilege and work-product immunity issues into the case.
________________________

1 See Kimberly A. Moore, Empirical Statistics on Willful Patent Infringement, 14 Fed. Cir. B.J. 227 (2004) (the statistics demonstrate that willful infringement is alleged in over 90% of patent cases).

2 35 U.S.C. § 284 (2000). The provision for enhanced damages is meant to act as a deterrent against the deliberate infringement of patent rights.

Resources

Firm Highlights