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MenuAs an LLC, how can I handle being sued for patent infringement if I don't want to go to court?
Answers
Any suit run by a competent lawyer will ensure that the parties named in the suit include everyone who might be able to pay. So, while your LLC might own some products, it may not be the only entity sued. You might be sued, along with all kinds of other people and companies. I'm not saying there's nothing you can do, but you certainly cannot escape having to defend a suit. Anyone can sue anyone else, even if the suit will ultimately be unsuccessful.
You ask how can you handle being sued without going to court? The answer is negotiate a settlement that results in the lawsuit being dropped. So, what have you got to trade? What damage could you do if they continue to sue you, and so on.
Related Questions
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New idea. Better to get a provisional patent with risk so I can start selling/manufacturing, or to get a full utility patent now with more protection?
The patent process can be fairly expensive (depending on the product and your claims). I went through it over the course of several years (yes, you read that correctly) and it took MUCH longer than anyone projected and cost MUCH more as well. So depending upon your financial situation it might be cost prohibitive to proceed until you secure sufficient capital. Since the implementation of the FITF (aka FIF) system the rules and recommendations that stood for years have shifted. So the general recommendations you may think are good ideas may no longer apply. Know that if you DO decide to file a provisional patent you have 12 months from the date of filing to file a non-provisional patent. And if you make any changes (aka "new matter") you may have to file another provisional patent because you cannot add any new matter to the non-provisional patent. The provisional patent can be a useful tool - but depending upon the product and the strategy you are planning to execute during development and market testing - it may or may not provide the protection you desire. I would highly recommend that you consult with a patent attorney to get an idea about what's involved (i.e. costs, processes, time-frames). At the very least hire a skilled professional to do a patent search FOR you - not only to ensure that it in fact is unique but also to ensure it is "patentable". You may already know this but it's worth repeating: (1) Your fear of your idea of being "stolen" is one that almost every entrepreneur with a "big idea" holds and (2) It's far less likely to happen than you might think. I wish you the best of luck!DB
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If I want to start a business like Monster.com (a career portal) should I worry about existing patents?
They may have patents on certain algorithms they use to sort / present jobs to people, but it's unlikely that anyone has a patent on the general idea of a career portal. If you'd like advice on how to do an effective patent search, or how to affordably file your own patents in the US I'm happy to help. all the best, LeeLV
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Can i create and sell my invention before filing for a provisional patent and maintain my rights to the invention?
The answer is yes, but it always depends. Let me begin by saying that the more knowhow, etc. involved, the easier it is to sell something without any patent protection. Otherwise, you are trying to sell something without protection and you get no protection until the patent issues, which may take years. The acquirer may just run with it (I would) without licensing knowing there is no cost until your patent issues. Then, when you file, they will see your claims and try to modify their product around your claims. It is slightly vicious in nature. That said, I may not act much different if you file first, unless I can buy your patent or the license costs are very inexpensive. Secondly, many countries have absolute novelty and you will not be able to protect your invention there ever, even if a licensee arises and wants to enter those markets. This too, is a serious limitation for licensing. My conclusion would be that you are underfunded to address your IP and that I can get away with murder. Filing the application is your way of telling people that you are serious. That said, it is not necessary and I have a lot of clients that file later or never file.GF
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Should tech start ups with a sole owner/founder/inventor (patent pending) filing an LLC License or Assign patent rights into the newly formed LLC?
Simple answer. Assign the ownership of the patent prior to closing any investment that is sufficient to market validate your invention. Investors will require an absolute assignment of ownership of any intellectual property. Given that you don't actually have a patent yet, you will be doing a general assignment that will include all assets and rights around the idea. I would also caution you not to over-emphasize the value of a provisional patent or patent application in-process. There is *zero* value to a provisional patent or patent in-process so don't let this distract you from operating your business and building out your product/service.TW
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I want to offer my patent and consulting to a startup. How do I establish contact on eye level with one of their CEOs on LinkedIn or directly?
I help clients leverage and monetize their patents in a variety of ways. One of the best methods is to attend and exhibit at trade shows in your field. Targeting startups may be one approach, but that's not the only market for your patent. I'd be happy to talk with you about identifying the best trade show and working the direct solicitation angle as well. Let me know when you're ready to get started!SV
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