Software Companies Face Threat Of Patent Infringement Suits For Overseas Sales: But Is It Serious
A significant case has reached the U.S. Supreme Court that on the surface could expose high-tech companies to greater liability for patent infringement in regard to certain products assembled and sold overseas. However, based on the tenor of the comments and questions by a majority of the Justices of the Court during oral arguments, it appears that there will be no major shift in policy in regard to patent infringement when a product is assembled and sold off the shores of the United States.
Historically, U.S. companies could escape liability for manufacturing and selling products that produced and sold in the U.S. would constitute actionable patent infringement with no negative consequences. However, all of this may change when the U.S. Supreme Court hands down a decision in the seminal case of Microsoft Corporation v. AT&T Corp. The issue in this case is the actual scope of the exception to the rule imposing liability for patent infringement. That exception had permitted an entity or individual to avoid a patent infringement suit components for a patented...
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