Contributing Lawyers

Canada

Cyndee Todgham Cherniak

United States

Susan Kohn Ross

Australia

Andrew Hudson



False Patent Marking Becomes Costly

The Texas district court has ruled in Forest Group v Bon Tool Co., 2010 U.S. Dist. LEXIS 41291 (S.D. Tex. Apr. 27, 2010) that if a party places a false patent marking on a product, the fine will be based on the maximum price at which the product was sold rather than the profit margin or economic benefit the company derived. The decision was seen to be in accord with the deterrent goal of the patent law. While the fine in this case totaled only $6,840, its ripple effect is expected to be far more significant, especially in cases where hundreds of thousands or millions of products are mass-produced and falsely labeled.

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