Whenever a small business is sued, it can be a daunting and stressful experience. The complexity of patent lawsuits, however, render those suits even more troublesome. In this blog post, we will outline the steps a small business should take when sued over a patent.
Step 1: Contact an Attorney and Understand Your Legal Options
The first step a small business should take when it is sued over a patent is to contact an experienced patent litigator. A patent litigator can help small businesses understand their legal options and guide them through the legal process.
The attorney will likely review the complaint and other documents related to the lawsuit to determine the strengths and weaknesses of the case. Based on this analysis, the attorney will advise the small business on the best course of action, including negotiating a settlement or defending against the lawsuit in court.
Step 2: Reviewing the Patent in Question
The small business should carefully review the patent to understand what it covers and whether its products or services infringe upon it. This will involve a careful analysis of the patent claims, which describe the specific aspects of the invention that are protected by the patent. Those claims, in light of the prosecution history of the patent, should then be compared to an accused product or service.
Step 3: Defending Against the Lawsuit
Defending against the lawsuit may involve arguing that the patent is invalid or unenforceable, that the small business does not infringe upon the patent, or that the patent owner has engaged in inequitable conduct in obtaining the patent.
The small business will need to work closely with its attorney to build a strong defense and respond to the patent owner’s claims. This may involve conducting discovery, arguing regarding the scope of the patent claims, and ultimately trial.
Step 4: Evaluating the Impact on the Business
Finally, the small business should consider the potential impact the lawsuit may have on its operations and finances. It may need to adjust its business strategy to minimize the effect of the case, such as by focusing on non-infringing products or services or seeking additional funding to cover the costs of the lawsuit.
Step 5: Considering Settlement Options
After fully evaluating the patent and strength of the lawsuit, the small business may consider settlement. Settlement may involve negotiating a license agreement with the patent owner to resolve the dispute.
Settlement can be a cost-effective and efficient way to resolve the dispute without going to court. However, the small business should carefully consider the terms of any settlement agreement and consult with its attorney before agreeing to any terms.
Conclusion
Being sued over a patent can be a stressful and expensive experience for a small business. However, by taking these steps and working closely with an experienced patent litigator, a small business can protect its interests and defend itself against the lawsuit. In the next part of this series, we will provide a more detailed overview of patents and patent law to help small businesses understand the legal issues involved in patent infringement lawsuits.
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