Federal Circuit Muddies the Water With Its Clarification on Inducement Liability | White & Case LLP International Law Firm, Global Law Practice
Federal Circuit Muddies the Water With Its Clarification on Inducement Liability

Federal Circuit Muddies the Water With Its Clarification on Inducement Liability

White & Case Technology Newsflash

On August 31, 2012, the Federal Circuit, sitting en banc, loosened the requirements for proving induced infringement of method claims. In a 6-5 split decision in the cases of Akamai Tech., Inc. v. Limelight Networks, Inc. and McKesson Tech., Inc. v. Epic Systems Corp., Nos. 2009-1372, -1380, -1416, -1417 and 2010-1291 (Fed. Cir. Aug. 31, 2012), the Federal Circuit overruled its previous 2007 decision in BMC Resources, Inc. v. Paymentech, L.P., 498 F.3d 1371 (Fed. Cir. 2007) and held that a defendant may be liable for inducing infringement of a method claim, even when all steps of the claim are not committed by a single entity. Maj. Op. 10. While some hailed this decision as closing what has been perceived as a loophole that allows entities to escape infringement liability under certain circumstances, others expressed concern about the potential for abuse and an expansion of liability beyond what was contemplated by Congress in 35 U.S.C. § 271.

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