Risks of violating a patent?

[the_cyman]

What is the name of your state? New York

Hi there,

Like most inventors, I have an idea but I do see there could be some similar products out there.
Suppose I wanted to make a product that uses parts that are patented, or if I released a product that violates a patent. What are the repercussions that I would be looking at:
1. In the growth stages of the company, where the revenue is low, like under $200 K.
2. If the company would become large, such as over the 2 million dollar mark.

Could they simply sue me for every penny I made for the past X years?

How do I approach this issue in terms of protecting myself?

Thanks!

 

[FlyingRon]

Yes, they can sue you for everything they can get and more.

The size of your company makes little difference.

 

[the_cyman]

Hmmm.. That just doesn't seem right...

Suppose someone patented "a motor vehicle with 1 or more wheels". But then, only made motorcycles and refused to license the patent.

Then, no one could invent cars or ambulances (4 wheels) without being sued for everything, so the idea would just never happen. Even if you patented using 4 wheels, you could never act on the patent if the other person demanded exorbitant fees.

Is this really the case?

 

[divgradcurl]

I agree with FlyingRon. However, damages for patent infringement are not limited to monetary damages -- there is also the risk of a permanent injunction, basically a court order telling you to stop making the infringing product. And that can be a real damper on a business plan.

A patent is a license to exclude. A patent owner can keep anyone else from practicing their patent -- that's what a patent is for. A patent owner (except in certain limited circumstances) is not obligated to license his or her patent to anyone else. Someone could patent an invention and just sit on it, if they wanted to.

Suppose someone patented "a motor vehicle with 1 or more wheels". But then, only made motorcycles and refused to license the patent.

Then, no one could invent cars or ambulances (4 wheels) without being sued for everything, so the idea would just never happen.

Patents are never this broad. However, even if they were, and even if you had a patent owner who was willing to forgo the licensing revenue from licensing his patent, patents don't last forever, so at most, you have a situation where the new technology is merely delayed, not forever lost.

How do I approach this issue in terms of protecting myself?

Sit down with a local patent attorney, who can review all of the facts of your particular situation and advise you accordingly. An attorney can help determine if, in fact, you even are infringing a patent. If you are, an attorney may be able to help you negotiate a license to use the technology, or help you "design around" the patent. And an attorney can advise you if your invention qualifies for patent protection of its own, and can help you get that protection.