Can a company be held liable if they are knowingly supplying another company with products the second company is using to infringe on a patent?

Answer

Probably not. The company is doing its own business and is not reponsible for "policing' its clients. Patent law is not clear cut in many instances. Which accounts for large corporation defending in court the right to market a product, (they usually win).

Possibly

A patent is infringed by selling components that are combined to infringe the patent. It is called "contributory infringement." The patent owner would need to prove not only that A infringed the patent, but that B sold (or imported) an important special component to A, knowing that it is used primarily in the infringement. Then A and B are both liable. It is sometimes easier to sue only B, the supplier, when there are many end-user infringers, A.

Title 35 U.S.C. Section 271(c): "Whoever offers to sell or sells within the United States or imports into the United States a component of a patented machine, manufacture, combination or composition, or a material or apparatus for use in practicing a patented process, constituting a material part of the invention, knowing the same to be especially made or especially adapted for use in an infringement of such patent, and not a staple article or commodity of commerce suitable for substantial noninfringing use, shall be liable as a contributory infringer."

Furthermore, a company may be guilty of an "active inducement to infringe" when it sells a kit for building a patented invention or hires someone to manufacture an infringing product. 35 USC s. 271(b).

 

Improve Answer Discuss the question "Can a company be held liable if they are knowingly supplying another company with products the second company is using to infringe on a patent?" Watch Question

First answer by anonymous. Last edit by Wutzyerproblem. Contributor trust: 356 [recommend contributor]. Question popularity: 104 [recommend question]


Research your answer:

Can you answer other questions about patent copyright and trademark law?

Answers.com > Wiki Answers > Categories > Law and Legal Issues > Business Law > Intellectual Property > Can a company be held liable if they are knowingly supplying another company with products the second company is using to infringe on a patent?

Our contributors said this page should be displayed for the questions below. (Where do these come from)
If any of these are not a genuine rephrasing of the question, please help out and edit these alternates.
What are those company?  Products of the company?  Shreholder has the right in the company?  Why company does innovation in products?  Induceing other's to infringe on a patent?  How did Dell company compete compaq company?  What products produced by the abercrombie company?  Induceing others to infringe on a patent is it a crime?  What does a company order when it wants products removed from shelves?  A company enteres into a written contract with another company for the supply of the Reedy tomato the only type of tomato the company uses in their sauces?  Can company's compare it's products or services to those of another company in an ad?