Legal Question in Business Law in California

Patent infringement

I am an importer. One retailer gave me a procuct sample and told me the patent had expired.I contacted a manufacturer in asia to make the product and offered the retailer the product.

Now the retailer told me that he was sued by the patent owner. I find out the patent will expire on March 2003.

I run a small private company. Server years of hard work, am I run into trouble? Please advise.


Asked on 7/04/02, 4:44 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Patent infringement

Well, you are potentially in trouble, but (a) you apparently haven't been sued yet, and (b) if you are, you may have a defense based upon relying uon the retailer's assertion that the patent had expired. However, that's pretty weak.

Often, a well-drafted contract to make an item will contain indemnity provisions relating to patent liability. A lawyer examining your defenses would want to look at the contracts between you and the retailer and the manufacturer for indemnities and similar provisions.

Many patent suits are resolved by negotiations without expensive litigation and often without payment of money damages. Quite possibly the retailer or you can negotiate an agreement with the patent holder.

As a protective measure, I recommend having a consultation with a lawyer that does patent infringement defense work to review your position and to determine whether you need to do anything pro-actively to protect yourself at this stage.

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Answered on 7/05/02, 2:12 pm


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