For small businesses, patent infringement litigation can be a nightmare. Unfortunately, small businesses are frequently targeted for settlements, given the expensive cost of patent litigation.
This blog article will present an overview of patent infringement lawsuits and explain why small companies are vulnerable to patent litigation.
A patent infringement lawsuit is a legal action brought by the patent owner against a person or entity accused of infringing the patent. Manufacturing, selling, advertising, or using a patented invention without authorization from the patent owner is an example of infringement. The complaint seeks to halt the infringement and obtain damages for any loss caused. In some situations, the patent owner may seek an injunction to stop the alleged violation from using or selling the infringing goods or services.
For various reasons, small businesses are in danger of being sued over patents. First, they may lack resources to do a comprehensive patent search and clearance study before introducing a new product or service. This can result in unintentional violation of existing patents.
Second, small businesses may lack the funds to fully defend a patent infringement action in court or in administrative proceedings.
Finally, small enterprises as sometimes considered easy targets. Patent owners may demand exorbitant settlements to collect money from smaller targets that cannot afford to fight back.
A patent infringement case can have severe ramifications for a small corporation. Aside from the cost of legal bills and damages, a small business may face unfavorable publicity, customer loss, reputational harm, and may be forced to modify its product/services mix. A patent infringement lawsuit may even cause a small business to close its doors.
Patent infringement litigation can pose a serious danger to small firms. In the following installment of this series, we will look at what small businesses can do if they are sued over a patent.
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