In April 2014, the Supreme Court voted in Octane Fitness vs. ICON Health & Fitness to essentially get rid of the "American rule" in regards to patent litigation. What is the American rule?
American rule: both parties involved in patent litigation case each pay for their own attorney and legal fees through the entire process - no switchover costs associated with who wins or loses
British rule: the losing party involved in a patent litigation case must pay for the attorney and legal fees for both parties
Now, if you were faced with each situation, what would you be more inclined to sue people in? The difference in these two rules is why there exist far more patent troll cases in the States than in Europe. However, the Supreme Court has shown through this ruling that it is committed to changing this, and now the payment for losses in court of the legal fees now goes to the losing party. This has decreased the amount of patent trolls in the US by far, but this is just the first step. The US government needs to enact much more in-depth legislation if we are to rid ourselves of patent trolls forever.
Thanks,
Payal
Hi Payal,
ReplyDeleteI think that this is a positive first step brought forward by the United States Supreme Court. It'll definitely limit the number of frivolous lawsuits that are brought forward by these trolls. However, I do agree with you on the fact that this is still only the first of many steps needed to be taken. Patent trolls continue to thrive and exist within our present legal environment and we, along with the government, must devise formal and informal solutions to target this problem where innovation is being interrupted with by those manipulating the laws to poach on inventors.
I didn't know the American government has essentially gotten rid of the American rule! Thanks for clarifying that! I really liked that you brought that up because I felt that was a huge flaw in our legal system. Glad that the the government is doing something about all these different loopholes and improving our patent system.
ReplyDeleteGreat post, Payal!