Want to stay current on e–commerce law? Sign up for Email Newsletter.
Canadian Government Claims U.S. Court Decision in RIM Litigation Threatens Canadian Business
The U.S. Court of Appeal for the Federal Circuit (CAFC) has applied U.S. patent law to business operations conducted in Canada. The CAFC has declared that leading wireless e-mail provider Research in Motion (RIM), makers of the famous Blackberry devices, infringed upon U.S. patents owned by holding company NTP, Inc. despite locating its equipment and performing its activities in Canada. Patent laws have historically been applied territorially and not stretched across borders. This decision is particularly surprising. So surprising, in fact, that in response to its effect on Canadian business generally, the Canadian Government was persuaded to file an amicus brief urging the CAFC to reconsider its decision.
The case raises broad questions for Canadian businesses, in particular, for e-commerce and telecommunications companies and those who rely on such technology. For example, to what degree are Canadian companies exposed to liability for infringing upon e-commerce or business method patents issued in the United States? The pertinent provision of the U.S. patent statute provides that "...whoever without authority makes, uses, offers to sell, or sells any patented invention, within the United States, or imports into the United States any patented invention during the term of the patent therefore, infringes the patent."
The decision in NTP appears to contradict the statute and raise a test for infringement based on a requirement that the control and beneficial use of the allegedly infringing system be within the United States even if key components of the system itself are situated outside the United States.
For additional information, visit:
http://www.law.com/jsp/article.jsp?id=1105968938329
http://www.globetechnology.com/servlet/story/RTGAM.20050117.wxrim0118/BNStory/