IP Law for Amazon Sellers
How Much Money Can a Court Award for Patent Infringement?
In this article, Amazon Sellers will learn what the United States Supreme Court has said about how much money a court can award to plaintiffs in Patent Infringement cases.
Essentially, a patent is a license issued by the government. The license states that the one with the patent is the only person allowed to sell the product. The license can also apply to a specific technology, design or to an entire product.
Patents promote the development of new technology because they grant the inventor the exclusive right to make and sell their invention… for a limited period.
The legalese is:
“Whoever invents any new, original and ornamental design for an article of manufacture may obtain a patent thereof…”
The law is located at 35 U.S.C. section 171. The number “35” refers to book number 35. U.S.C. stands for United States Code. Section 171 is…section 171. The moniker “35 U.S.C. 171” is called a legal “citation” or “cite.” It allows lawyers to easily find the specific section of the law.
Apple and Samsung recently battled in court over a design patent dispute. One of the issues addressed was the amount of money an infringer is required to pay a rights owner when they are found to have violated a patent.
What did Apple Argue in this Lawsuit and Why Amazon Sellers Should Care:
In this case, Apple argued that it owned the rights to three different design aspects it used on the iPhone. Apple’s argument was basically that Apple owned the sole right to use a rectangular flat screen with rounded edges on a cell phone. Apple believes that it solely owns the right to use certain features on the bezel of the screen and that no other manufacturer could use its “ornamental design for a graphical user interface for a display screen or portion thereof which used colorful icons with rounded corners.” It seems that Apple wanted to control… rounded corners.
After quite a bit of litigation, the jury declared:
“We agree with Apple.”
When a jury makes a finding, it is rarely overturned. The jury’s finding ultimately became the “law of the case.”
Samsung’s biggest concern was not that Apple won the battle for the exclusive use of rounded corners. Samsung was more concerned about their money. The jury’s finding now permitted Apple to recover all of the profits that Samsung earned on every phone they sold with Apple’s rounded corners.
What Did Samsung Argue?
Samsung argued that the jury was wrong and that the Court should overrule the jury. Samsung wanted the court… and the appellate court, to throw the jury’s decision out. Samsung wanted the court to take away the people’s role in deciding our law.
The court that heard the case and the appellate court rejected Samsung’s request. The American jury’s decision was upheld.
When it came to the money Samsung would have to pay, the law was and remains clear:
Infringers “… shall be liable to the owner to the extent of… the total profit.”
Samsung next asked the court to lessen the blow so to speak. Samsung asked the court to “apportion” the damages. This means that Samsung asked the court to try and identify what parts of their profits were due to Apple’s inventions and what part of their profits were due to the parts of the phones that were designed by Samsung.
Common sense says that it would be impossible to figure out why tens of thousands of people chose to buy their individual phones. Thus, the court ultimately stated in its decision that the “innards” of the smartphones were not sold separately from their shells.” Meaning that it was impossible to apportion the damages.
What Did the Court Decide?
The United States court system is based, in large part, on reviewing written statutes and looking at prior court decisions.
In this case, the court looked at the statute at issue and their decision was clear. The statute clearly states that infringers must pay their entire profit. Samsung was arguing against what the court called the “clear statutory language.”
IP Law for Amazon Sellers – What Do Amazon Sellers Need to Know?
- If you own a patent and someone else is selling a product using your patent, you can recover all of the profits they earned on the product.
- If you are selling a product that incorporates patented technology or design owned by someone else… you could be compelled to pay all of your profits to that company.
The bottom line is to stay educated on IP Law for Amazon Sellers and to remain vigilant when enforcing intellectual property rights.
IP Law for Amazon Sellers is complex, but you are now armed with basic knowledge of how patent infringement litigation works. Whether you are interested in enforcing your patent or need help defending against a claim of infringement, Amazon Sellers Lawyer is here to help.