Legal Question in Intellectual Property in Illinois

Worst Case Scenario for Patent Infringement?

I own a start-up business and I am developing a new product. I just realized that somebody else I know has filed an application for patent some time ago. From what I can see, he's about 6 months to a year away from getting his patent.

I am considering my options. If I decide to finish and start marketing my product (I am a couple of months away) what's my greatest risk? From what I have been told, the inventor can sue me (my business) and that the process takes up to 2 years during which I can still operate. Then we would achieve a settlement by which my business would be paying the inventor loyalties (certain percent of my earnings on the patented idea). I am told that this is a normal scenario. Is there a worst case scenario and what is it? Is there a risk for me to lose everything I will have earned on this from day one?

Thank you!


Asked on 10/18/10, 7:21 pm

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

Any IP attorney will say the worst case scenario can be very, very, bad. If you have infringed on another's patent, they can come after you for every dime you've made, plus litigation costs, attorneys fee, etc. etc. There are even increased money damages in certain cases. This is not a road you want to go down. Consult with a good IP attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Attorney

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Answered on 10/24/10, 7:40 am


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