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ARTICLE · 06 SEPTEMBER 2010

Federal Circuit Limits Patent Misuse in Princo

A sharply divided en banc U.S. Court of Appeals for the Federal Circuit significantly narrowed the scope of the patent misuse defense this week.

United StatesIntellectual Property

A sharply divided en banc U.S. Court of Appeals for the Federal Circuit significantly narrowed the scope of the patent misuse defense this week.  In Princo Corp. v. International Trade Commission, a five judge majority drew a sharp line between general antitrust violations in which patents might be involved and a few well-delineated practices which can now constitute patent misuse rendering a patent unenforceable.  Two judges concurred on a limited basis, and two judges strongly dissented.

The majority decision emphasized the "narrow scope of the doctrine," stating that a presumptive infringer cannot escape liability "simply because a patentee engages in some kind of wrongful commercial conduct, even conduct that may have anticompetitive effects."  Slip Op. at 19.  Rather, patent misuse must consist of improper "leveraging" of the particular patent asserted against the defendant to broaden the scope of the patent monopoly, typically by tying or requiring payment

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