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Patent trolls (and other bad news) lurking in your mailbox: handling cease-and-desist letters in the USA

by: Gregory A Duff, Jay G Taylor, John F Prescott, Michael A Swift
Journal of Intellectual Property Law Practice (7 May 2008), jpn077.


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Legal contextMany patent holders attempt to reap a benefit from their patents by identifying potential infringers and offering them a license. Negotiations often begin with the potential infringer receiving from the patent holder a letter that informs the recipient of the sender's patent rights and may even threaten legal action. Key pointsIn the USA, the receipt of such a letter can cause much trouble, but recipients who do not handle the situation with care can multiply their troubles. Numerous issues must be carefully considered. For example, should the recipient respond to the letter? Should the recipient obtain a written patent opinion? Should the recipient preemptively file suit against the sender? Unfortunately, there are no right' answers that fit every circumstance, but the recipient can make the best of a potentially bad situation by being informed and responding wisely. Practical significanceThe receipt of a letter alleging patent infringement should not be taken lightly, whether the sender is an industry competitor or a so-called patent troll. Every business with a US presence should be prepared to address, in a timely and knowledgeable manner, the practical and legal issues raised by such letters. The failure to do so can be a costly lapse and may severely jeopardize the recipient's defense of the infringement allegations. 10.1093/jiplp/jpn077


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