Legal Question in Intellectual Property in Texas

Dear Sirs/Madams,

RE: Case Background

We are a Taiwanese window covering trader situated in Taiwan. About a month ago, a US public company filed complaints in Northern Texas Dallas court regarding patent infringement against us based on the evidence of our website information.

RE: Fact

1. The US company has total of six patents on this window covering product. The very first patent was filed in 1991 and became active in 1994. There were 5 other patents asserted on the same product later on.

2. We are a registered trading company in Taiwan. We have no asset or company in United States. We have acquired our complained product from our supplier in Korea, who has legitimate Korean patent on their product as well. Our complained product was never sold nor intended to be sold to United States.

3. The plaintiff's attorney accuses us for act of selling or offer to sell to United States based on the product info displayed on our company website and asks us for damages and costs or consent judgment that we will stop all infringed activities. The fact is our complained product has never entered into United States.

4. This product is a cash cow for this company in United States with abnormal profit. The market has rumor that their patents are going to expire soon. Therefore, it is my personal speculation that they are making moves, without any hard evidence, on intellectual property right enforcement to secure their dealers and shareholders confidence.

RE: Question

1. We are not an American company and our product was never sold or intended to be sold to United States. Can this company sue us from Dallas Texas court?? I find this very unreasonable because how am I going to fly thousand of miles to answer the court for something I am not at fault for.

2. The plaintiff�s attorney keeps mentioning via email about if we do not sign the consent judgment, they will pursue this matter with full force and seek for damages and costs. We never sold the complained product to United States. Are there any damages??

3. The plaintiff�s attorney keeps asking us to sign the waive for formal service of complaint otherwise the consequences of failure to waive formal service may include an award of costs approximately on the order of US $10,000 - $20,000 and a shorter duration to file the requisite answer before the District Court. What is this?? Do we have to sign??

We are definitely an advocate of intellectual property right. But we are also big believer of equity and justice. Because of lack of United State legal experience, we suffered emotionally and in productivity worrying about this case. We hope someone here can kindly provide some insight on suggestion of the action plan we should take on.

Thanks very much. And we look forward to hearing your response.

Sincerely yours,

Jerry Chen


Asked on 3/18/10, 6:48 pm

1 Answer from Attorneys

James N. Willi Willi Law Firm, P.C.

1. Do not waive service of citation. The plaintiff's attorney cannot prosecute his suit against you if you are not properly sued. His argument about costs and shorter time to answer are not true. He is attempting to fool you into consenting to being sued in Texas.

2. Do not sign a consent judgment. That would be admitting infringement, which is not true. You infringe if you make, use, sell, or offer to sell in the United States or import into the United States the infringing product.

2. Mere advertising of the existence of the product on a website in Taiwan does subject you to personal jurisdiction by the Texas court. If you do get served, you will want to file a motion to dismiss for lack of subject matter jurisdiction before you formally answer the complaint.

My law firm successly defended something similar earlier this year involving a New York defendant. We were able to get the case dismissed.

I have 10 years of patent litigation experience, and I am a Registered Patent Attorney. If I can be of any assistance to you, please go to my Internet site at http://www.willilawfirm.com to review my qualifications and to locate my contact information.

Best of luck to you!

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Answered on 3/24/10, 7:50 am


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