Patent validity and an odd Appellate Court ruling

[quincy]

A patent case involving a software company and an internet retailer may be heard by the US Supreme Court, if a petition for certiorari is granted.

In Soverain Software LLC v Newegg, Inc, 836 F.Supp 2d 462 (E.D. Tex. 2011), lower courts had found that Newegg had infringed on three of Soverain patents. Damages were awarded and Newegg appealed. The US Court of Appeals for the Federal Circuit reversed the lower court findings, and vacated the damages and infringement judgments, ruling that the patents were invalid for obviousness.

What is odd about the Court of Appeals ruling is that the patents had been issued Soverain by the USPTO and, under the Patent Act, patents issued by the USPTO are presumed valid (35 USC §282). The burden of proof for validity challenges is "clear and convincing" evidence, which was a proof not met by Newegg.

For a look at the case, you can go to http://caselaw.findlaw.com/us-federal-circuit/1620869.html, with more information available at the Soverain website, http://soverain.com/asp/news/, and further information at http://www.ipwatchdog.com/2013/11/22-patent-system-under-attack/id=46456/.

 

[quincy]

A brief update on the status of Soverain's petition to the Supreme Court:

On December 12, Newegg, Inc. filed a brief in opposition to Soverain's petition and today, December 20, Soverain filed its reply brief. The reply brief states that the Federal Circuit violated Supreme Court precedent and the Constitution.