Patent litigation generally becomes necessary when disputes arise over the infringement, validity or enforcement of a patent that cannot be resolved amicably. Patents are legal protections granted to inventors so that they and they alone can benefit from their inventions — unless they extend permissions to others for their use. However, these rights can be contested, leading to a potential need for legal intervention.
One of the most common reasons that inventors file patent litigation is patent infringement. This occurs when another party uses, sells or manufactures a patented invention without permission. Patent owners may file a lawsuit to stop the unauthorized use and seek damages. Infringement claims often arise in competitive industries where similar products or technologies are developed independently, leading to disputes over patent rights.
Additional grounds for litigation
Patent litigation may also be necessary to challenge the validity of a patent. Competitors or other parties may argue that a patent should not have been granted because the invention is not new, is obvious or lacks sufficient detail in its description. In such cases, the challenger can file a lawsuit to invalidate the patent. Conversely, patent holders may need to defend their patents against such challenges to maintain their exclusive rights.
Licensing agreements allow patent owners to permit others to use their inventions in exchange for royalties or other compensation. Disputes can arise over agreement terms, such as payment amounts, usage rights or duration. When parties cannot resolve these issues through negotiation, litigation may be necessary to enforce the agreement or determine its terms.
Additionally, disputes over who owns a patent can lead to litigation. These conflicts often occur in collaborative environments where multiple individuals or entities contribute to an invention. Establishing clear ownership is important, especially when significant commercial interests are at stake. Litigation can resolve these disputes by determining the rightful owner or co-owners of the patent at issue.
Finally, patent litigation can also be a strategic tool. Companies may initiate litigation to assert their market position, deter competitors or negotiate favorable settlements. While litigation can be expensive and time-consuming, it may be a necessary step to protect significant investments in research and development.