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Supreme Court Considers When US Patent Violations Are 'Induced' Abroad (arstechnica.com)
The US Supreme Court today will take up a case that will determine how much help an overseas manufacturer can get from the U.S. without running afoul of US patent laws. From a report on ArsTechnica: The case originates in a dispute between two competitors in the field of genetic testing. Both Promega Corporation and Life Technologies (selling through its Applied Biosciences brand) make DNA testing kits that can be used in a variety of fields, including forensic identification, paternity testing, medical treatment, and research. Promega licensed several patents to Applied Biosystems that allowed its competitor to sell kits for use in "Forensics and Human Identity Applications." The license forbade sales for clinical or research uses. In 2010, Promega filed a lawsuit in federal court, saying that Life Technologies had "engaged in a concerted effort to sell its kits into unlicensed fields," thus infringing its patents. A Wisconsin federal jury found that Life Tech had willfully infringed and should pay $52 million in damages. But the district judge overseeing the case set aside that verdict after trial, ruling that since nearly all of the Life Tech product had been assembled and shipped from outside the US, the product wasn't subject to US patent laws.
Uh... a patent protects the market. It'd be fine for Samsung to make the devices overseas in a jurisdiction where the devices didn't infringe, as long as they didn't then import and sell them in the U.S.
Duh.
A Wisconsin federal jury found that Life Tech had willfully infringed and should pay $52 million in damages. But the district judge overseeing the case set aside that verdict after trial, ruling that since nearly all of the Life Tech product had been assembled and shipped from outside the US, the product wasn't subject to US patent laws.
It's infringement under US Patent law to make, use, or sell a patented invention in the US. However, it's also infringement to import a patented invention, made elsewhere, into the US. So you can't, for example, escape liability by saying "oh, we don't manufacture in the US. We manufacture in Mexico and then heave them over Trump's wall to waiting buyers." So, something had been assembled and shipped from outside the US would still be subject to US patent laws if it was being shipped to the US.
In this case, LifeTech manufactures their kits in the UK and sells them in Europe (and elsewhere). One component of the kit is manufactured in the US and shipped from the US to the UK, and the question is whether that component brings those sales under US patent law.
So, just to clarify, the summary should be "since nearly all of the Life Tech product had been assembled and shipped from outside the US to locations outside the US, the product wasn't subject to US patent laws."