Tech industry patent case addressing ‘divided infringement’ to go before Supreme Court

Often, non-practicing entities will sue companies, claiming to own patented technology being used with certain products. These types of intellectual property disputes are especially common in the technology industry. As patent infringement cases continue to be highlighted in the media, two Internet companies are facing the U.S. Supreme Court to dispute which company has the right to a patent that allows the providers to make faster delivery of online content.

The case is being brought by Akamai Technologies, a Cambridge, MA, based company that provides enterprise cloud services, allowing users to download content by using their cloud platform. Akamai sued Limelight Networks, based in Arizona, for alleged infringement on one of their patents that allows this faster delivery of technology. One of Limelight's benefits is that it provides fast delivery of content, making the two competitors in the market.

The lawsuit over this technology originally began in 2006, but over time has become an important case because the outcome could lead to an increase in patent lawsuits. The case brings up the issue of "divided infringement," which could have impact in other industries. Divided infringement occurs when "multiple parties act to collectively infringe a patent," according to the Boston Globe. The concern is that if divided infringement is found to be valid, it will make it easier for non-practicing entities to create more patent disputes. 

These cases, especially when not settled out of court, can cost companies in both time and litigation. In some cases, litigation is so costly it could threaten to put a company out of business. For this reason, it is important to receive expert legal counsel to ensure your intellectual property is protected. Contact a Phoenix business attorney to learn how you can protect your intellectual property. 

Categorised in: Intellectual Property Law

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