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ARTICLE · 24 SEPTEMBER 2012

Federal Circuit Eliminates Single Entity Rule For Inducement Claims

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On August 31, 2012, the Federal Circuit, sitting en banc, issued a seminal, split decision articulating a new standard for induced infringement.

United StatesIntellectual Property
Dennis Smith
Dennis Smith
Martin Bader
Martin Bader
Graham Buccigross
Graham Buccigross
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On August 31, 2012, the Federal Circuit, sitting en banc, issued a seminal, split decision articulating a new standard for induced infringement. Adjudicating two companion cases, Akamai Technologies, Inc. v. Limelight Networks Inc., and McKesson Technologies, Inc. v. Epic Systems Corp. (Fed. Cir., No. 2009-1372, -1380, -1416, -1417), the majority (Chief Judge Rader, and Circuit Judges Lourie, Bryson, Reyna, Moore and Wallach, joining) reversed both district courts and remanded for further proceedings. Many observers had expected the Federal Circuit to tackle the sticky issue of joint, direct infringement—situations in which no single entity performs all of the steps in a method claim asserted as direct infringement. 1 The Federal Circuit did not resolve that open question, leaving many commentators to speculate as to the future landscape for direct infringement claims implicating two separate actors.

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