October 14, 2015

4 Keys To Using Alice In Transportation Sector Patent Suits

R. David Donoghue

The transportation industry faces a steady stream of patent infringement actions, many of them from nonpracticing entities, also known as patent assertion entities or patent trolls. NPE patent cases have none of the strategic and competitive advantage that you may be able to gain from a competitor suit, with virtually all of the costs in terms of attorney’s fees and corporate distraction.

Patent suits are a significant drain on resources, but until the U.S. Supreme Court’s July 2014 decision in CLS Bank v. Alice, there were few options for winning (or rather stopping) an NPE case on the merits at an early stage. That often left settlement as the only rational business decision for transportation industry members. And the decision to settle was often even harder to avoid because the suits typically involve software, database or Internet applications that may be important to the company, but were developed and maintained by a third party.

READ: 4 Keys To Using Alice In Transportation Sector Patent Suits (subscription may be required)

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