Intellectual Property Law

Integrating infringing component into larger product does not escape contributory infringement

By McKee, Voorhees & Sease, P.L.C.

In a recent decision, the Federal Circuit affirmed a district court's grant of summary judgment of obviousness, but vacated and remanded the summary judgment of no contributory or inducing infringement of two other patents in suit related to recordable optical disk drive technology.  

The court relied on copyright cases applying the concept of secondary liability in determining that the district court applied the wrong legal standards for determining contributory infringement and inducement.  Guided by the Supreme Court decisions in Grokster and Sony, the court determined that a component that infringes in larger assembly cannot be insulated from a finding of contributory infringement, otherwise a liability loophole would exist.

Judge Gajarsa dissented.  He argued the majority committed three major missteps with respect to contributory infringement.  First, the alleged infringer did not sell or offer to sell the accused components as required by § 271(c).  Second, the majority used an over-inclusive application of § 271(c) that directly contravened Supreme Court guidance on its interpretation.  Finally, the conduct to which the majority objects related to the design and manufacture of components rather than the act of selling a component as addressed by § 271(c).

More on Ricoh Co. v. Quanta Computer, Inc. after the jump.

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Full post as published by FileWrapper on March 24, 2009 (boomark / email).