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DoJ, PTO advise caution with sales bans in patent lawsuits

2013-01-09 12:28:00| Telecompaper Headlines

(Telecompaper) The US Department of Justice and the US Patent and Trademark Office have issued a joint statement recommending that patentholders seek sales bans against alleged infringers of industry-essential patents only in limited circumstances. They also urged caution in the judiciary branch in granting such injunctions against the sale or import of infringing devices, saying this could stifle innovation, limit industry standardisation and harm consumer interests. The DoJ and PTO said their recommendation aims to prevent "opportunistic conduct" by patentholders and potential licensees and provide greater certainty concerning the meaning of a FRAND commitment and the importance standardisation plays in the consumer interest. They noted that there could still be limited circumstances when an exclusion order is an appropriate remedy, such as where the putative licensee is unable or refuses to take a FRAND licence, refuses to pay what has been determined to be a FRAND royalty, or refuses to engage in negotiations to determine FRAND terms.

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