Idea For Product P Has Been Patented By A Company C. C Has Shutdown, Can A Company Launch P W/o Licensing It From C?

[Rudolf]

what are the legal implications of launching a product based on an idea that has been patented by another company, but the patent-holding company has shutdown? can the patent holding individuals sue the company launching the product for IP violations?

[boynton35]

patent Shutting down a business has no effect on the ownership of a patent. It is a form of intellectual property that has a life span.  "A granted patent has a nominal life of 20 years from the time of filing. During the life of a patent, a patent holder may sell the patent, license it, or enforce granted patents rights. Enforcement begins with notification, either by letter, or by lawsuit. Enforcement aims to stop infringement, and collect damages resulting from infringement. " http://www.patenthawk.com/ From what all that says, I would say that they can probably sue someone who violates the patent.  And it's VERY expensive to take this kind of thing to court, so your best bet would be to contact the patent owner and find out about licensing the item.   Poppet!'s Recommendations Patents, Copyrights & Trademarks for Dummies Amazon List Price: $21.99 Used from: $10.00 Average Customer Rating: 4.5 out of 5(based on 3 reviews) I love all the Dummies books! They make it so easy to understand! Poppet! 81 months ago Please sign in to give a compliment. Please verify your account to give a compliment. Please sign in to send a message. Please verify your account to send a message.

[Manolo]

The patent doesn't go away when C goes away... A patent is a property right.  It exists independently of the company/person who owns it at any given time.  When a company dissolves or goes bankrupt, something happens to its assets.  Either they are distributed to the company's shareholders, seized by its creditors, or sold to the highest bidder.  In any of these cases, the patent, which is one of the defunct company's assets, would continue to exist and whoever gets it would have the right to enforce it against an infringer.   Now, realistically speaking, whoever ends up with the patent may not have the interest, money or stamina to sue infringers.  If this is the case, then "P" would be lucky.  However, in today's environment, where patents are increasingly used as revenue-generation tools, it is likely that someone will get the patent and seek to enforce it if this makes financial sense.   If "P" is interested in launching a product covered by the patent, then P could try to buy the patent from the current owners.  In fact, if they are not interested in going into business, P could possibly try to pay them a royalty on product sales rather than an up-front payment(so that they would benefit only when P benefits).   One final thought:  if the patent has not issued, and is merely a patent application, then "P" may be in better shape.  Patent applications need to be prosecuted(meaning that lawyers need to do stuff and money needs to be paid), and issuance fees must be paid before the patent will issue.  If nobody is minding the shop, then it is possible that the patent will become "abandoned" due to non-payment or failure to meet certain prosecution deadlines.  If the patent application is abandoned, it can't hurt you(but watch out here, too, because there are many ways to revive an abandoned application, even years after the abaondment if the owners wise up). conocimiento 81 months ago Please sign in to give a compliment. Please verify your account to give a compliment. Please sign in to send a message. Please verify your account to send a message.

[Nootau]

no difference As a practical matter, if Company C(the patentee) has shut down or stopped producing the patented product, then it is possible that they will not be as aggressive in enforcing their patent rights.  However, such patent rights(the exclusive rights to make, use, sell, or offer to sell the invention) will not go away merely because Company C no longer commercially exploits the invention.  Therefore, the second company is taking a risk by making, using, or selling the invention without a license.  Even if Company P goes completely out of business, its patents will likely be assigned or transferred to another company, who may also decide to enforce the patents. troyboy 81 months ago Please sign in to give a compliment. Please verify your account to give a compliment. Please sign in to send a message. Please verify your account to send a message.

[Casper]

A patent is a property right.  It exists independently of the company/person who owns it at any given time.  When a company dissolves or goes bankrupt, something happens to its assets.  Either they are distributed to the company's shareholders, seized by its creditors, or sold to the highest bidder.  In any of these cases, the patent, which is one of the defunct company's assets, would continue to exist and whoever gets it would have the right to enforce it against an infringer.   Now, realistically speaking, whoever ends up with the patent may not have the interest, money or stamina to sue infringers.  If this is the case, then "P" would be lucky.  However, in today's environment, where patents are increasingly used as revenue-generation tools, it is likely that someone will get the patent and seek to enforce it if this makes financial sense.   If "P" is interested in launching a product covered by the patent, then P could try to buy the patent from the current owners.  In fact, if they are not interested in going into business, P could possibly try to pay them a royalty on product sales rather than an up-front payment(so that they would benefit only when P benefits).   One final thought:  if the patent has not issued, and is merely a patent application, then "P" may be in better shape.  Patent applications need to be prosecuted(meaning that lawyers need to do stuff and money needs to be paid), and issuance fees must be paid before the patent will issue.  If nobody is minding the shop, then it is possible that the patent will become "abandoned" due to non-payment or failure to meet certain prosecution deadlines.  If the patent application is abandoned, it can't hurt you(but watch out here, too, because there are many ways to revive an abandoned application, even years after the abaondment if the owners wise up).

[anthony89]

Shutting down a business has no effect on the ownership of a patent. It is a form of intellectual property that has a life span.  "A granted patent has a nominal life of 20 years from the time of filing. During the life of a patent, a patent holder may sell the patent, license it, or enforce granted patents rights. Enforcement begins with notification, either by letter, or by lawsuit. Enforcement aims to stop infringement, and collect damages resulting from infringement. " http://www.patenthawk.com/ From what all that says, I would say that they can probably sue someone who violates the patent.  And it's VERY expensive to take this kind of thing to court, so your best bet would be to contact the patent owner and find out about licensing the item.

[Olwydd]

As a practical matter, if Company C(the patentee) has shut down or stopped producing the patented product, then it is possible that they will not be as aggressive in enforcing their patent rights.  However, such patent rights(the exclusive rights to make, use, sell, or offer to sell the invention) will not go away merely because Company C no longer commercially exploits the invention.  Therefore, the second company is taking a risk by making, using, or selling the invention without a license.  Even if Company P goes completely out of business, its patents will likely be assigned or transferred to another company, who may also decide to enforce the patents.