Microsoft Corporation v. DataTern, Inc. SAP AG and SAP America, Inc. v. DataTern, Inc.
The Federal Circuit holds if substantial controversy has not been established, there can be no declaratory judgment jurisdiction.
The Federal Circuit holds if substantial controversy has not been established, there can be no declaratory judgment jurisdiction.
A patent owner identifying its patent to another party with implicit assertions of the owner’s rights against the party may establish declaratory judgment jurisdiction, especially if patent owner is non-practicing entity.
The Federal Circuit holds that representations to a third party that technological characteristics of a device are similar to an existing patented device and telephone conversations with uninformed, non-decisionmaking employees of the patentee do not create a controversy of sufficient immediacy to warrant declaratory jurisdiction.
A court has subject matter jurisdiction for a declaratory judgment suit when a patent owner has pursued similar defendants in the past, has publicly stated that they have an aggressive licensing strategy, and has sent a warning letter to potential infringers.
A licensee is not required to break or terminate a license agreement to create an actual case or controversy prior to seeking declaratory judgment that a patent covered by the license agreement is unenforceable, invalid, or not infringed.
Declaratory judgment counterclaims allow adjudication of invalidity and unenforceability counterclaims after noninfringement decision
No actual case or controversy underlies plaintiff’s claim for declaratory judgment that its power supply device does not infringe defendant’s patent, even though defendant’s letters accusing plaintiff of infringement manifestly created reasonable apprehension of suit, since dispute lacks sufficient “immediacy and reality” to warrant issuance of declaratory judgment.
Affidavit submitted by declaratory defendant raised factual issues, concerning truth of certain representations made to U.S. Patent and Trademark Office during prosecution of patents in suit, that precluded summary judgment holding defendant’s patents unenforceable for inequitable conduct.
A counterclaim for patent infringement is compulsory under Fed. R. Civ. P. 13(a) to a declaratory judgment action seeking a declaration of non-infringement. The “further relief” provision of 28 U.S.C. § 2202 does not provide an exception to the compulsory counterclaim rule.
Plaintiff’s action for declaratory judgment of noninfringement of defendants’ patent is dismissed for lack of justiciable controversy, since parties were engaged in licensing negotiations when plaintiff filed suit, and defendants’ correspondence with plaintiff did not create reasonable apprehension of infringement suit.