| Summary: | 碩士 === 國立臺灣大學 === 資訊管理學研究所 === 100 === In a knowledge economy, intellectual property right becomes more and more important, Taiwan-based companies experiencing significant growth and diversifying into many product areas. Articles about these companies in international publications describing their rapid growth and success, which have received so many “cease and desist” or “invitations to license” letters claiming potential patent infringement in recent years from competitors. Other large world-wide companies and patent holding companies, also known as “ NPEs（non-practicing entities）” or “patent trolls” companies looking to generate revenue from their extensive patent portfolios. If they are in line of the law, Court could issue injunction preventing Taiwan-based companies‘product from entering the U.S. (Section 337 of the U.S. Tariff Act) or for sale in the U.S.
U.S. Patent Litigation drives up costs for Taiwan-based companies, making it more difficult for companies to compete and grow. Moreover, some patent owners send letters to Taiwan-based companies’ customers to try to divert business.
There are several things for Taiwan-based companies can do when being sued, such as Surveying and interviewing law firms with expertise on patent litigation, and starting their search for U.S. legal counsel as earlier as possible, after receiving the cease & desist letter, to assess its non-infringement position. Strategies and acts may include determining the goal in litigation, examining their own patent portfolio, determining if there are patents out there that could be used against plaintiff, resolving litigation on terms that made business sense, settling on reasonable terms, and waiting for favorable decision by judge, or Jury verdict.
However, If Taiwan-based hi-tech company had built or acquired a larger patent portfolio and its own, it could have asserted its own claims against plaintiff, or portfolio could have provided leverage in negotiations, possibility of cross-license. It may also have asserted for searching for prior arts to invalidate plaintiff’s patent, looking for ways to apply pressure in the litigation, take any chance it thought was favorable, such as identifying the key claim terms for achieving victory in claim construction, or make any possible to reduce plaintiff ‘s demands and settled to avoid the cost of trial. In this manner Taiwan-based hi-tech company will be willing to invest more capital for R & D to create more valuable patents that benefits the company.
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