Divided infringement

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In United States patent law, divided infringement is a form of patent infringement liability that occurs when multiple actors are involved in carrying out the claimed infringement of a method patent and no single accused infringer has performed all of the steps of the method. In a 2015 decision of the United States Court of Appeals for the Federal Circuit, Akamai Techs., Inc. v. Limelight Networks, Inc. [1] the court expanded the doctrine and explained the current meaning of the term.

Under United States law, a patent is a right granted to the inventor of a (1) process, machine, article of manufacture, or composition of matter, (2) that is new, useful, and non-obvious. A patent is the right to exclude others from using a new technology. Specifically, it is the right to exclude others from making, using, selling, offering for sale, importing, inducing others to infringe, and/or offering a product specially adapted for practice of the patent.

Patent infringement is the commission of a prohibited act with respect to a patented invention without permission from the patent holder. Permission may typically be granted in the form of a license. The definition of patent infringement may vary by jurisdiction, but it typically includes using or selling the patented invention. In many countries, a use is required to be commercial to constitute patent infringement.

United States Court of Appeals for the Federal Circuit

The United States Court of Appeals for the Federal Circuit is a United States court of appeals headquartered in Washington, D.C. The court was created by Congress with passage of the Federal Courts Improvement Act of 1982, which merged the United States Court of Customs and Patent Appeals and the appellate division of the United States Court of Claims, making the judges of the former courts into circuit judges. The Federal Circuit is particularly known for its decisions on patent law, as it is the only appellate-level court with the jurisdiction to hear patent case appeals.

The court said that the problem in divided infringement is determining, when "more than one actor is involved in practicing the steps" of a method claim of a patent, whether the acts of one actor are attributable to the other actor such that second one is to be held "responsible for the infringement." The court said that it would hold one entity responsible for another's performance of method steps in two sets of circumstances:

  1. "where that entity directs or controls others' performance", and
  2. "where the actors form a joint enterprise."

In past cases, the court noted that it had held that an actor liable for divided infringement under 35 U.S.C. § 271(a) only when "it acts through an agent (applying traditional agency principles) or contracts with another to perform one or more steps of a claimed method." To those two circumstances, the court held that it would now add a third:

We conclude, on the facts of this case, that liability under § 271(a) can also be found when an alleged infringer conditions participation in an activity or receipt of a benefit upon performance of a step or steps of a patented method and establishes the manner or timing of that performance.

The court instructed also that the "joint enterprise" basis for liability required evidence and proof of four elements:

(1) an agreement, express or implied, among the members of the group;

(2) a common purpose to be carried out by the group;

(3) a community of pecuniary interest in that purpose, among the members; and

(4) an equal right to a voice in the direction of the enterprise, which gives an equal right of control. [2]

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Akamai Technologies company

Akamai Technologies, Inc. is an American content delivery network (CDN) and cloud service provider headquartered in Cambridge, Massachusetts, in the United States. Akamai's content delivery network is one of the world's largest distributed computing platforms, responsible for serving between 15% and 30% of all web traffic. The company operates a network of servers around the world and rents out capacity on these servers to customers who want their websites to work faster by distributing content from locations close to the user. When a user navigates to the URL of an Akamai customer, their browser is redirected to one of Akamai's copies of the website.

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Vicarious liability is a form of a strict, secondary liability that arises under the common law doctrine of agency, respondeat superior, the responsibility of the superior for the acts of their subordinate or, in a broader sense, the responsibility of any third party that had the "right, ability or duty to control" the activities of a violator. It can be distinguished from contributory liability, another form of secondary liability, which is rooted in the tort theory of enterprise liability because, unlike contributory infringement, knowledge is not an element of vicarious liability. The law has developed the view that some relationships by their nature require the person who engages others to accept responsibility for the wrongdoing of those others. The most important such relationship for practical purposes is that of employer and employee

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Limelight Networks

Limelight Networks is an American company that provides a content delivery network (CDN) service, used for delivery of digital media content and software. As of March 2018, the company's network has more than 80 points-of-presence and delivers between 40-80 petabytes of data daily, with 31+ Terabits per second of egress capacity across the globe.

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References

  1. Akamai Techs., Inc. v. Limelight Networks, Inc., -- F.3d -- (Fed. Cir. 2015) (en banc), 2015 U.S. App. LEXIS 14175 (Aug. 13, 2015).
  2. See Restatement (Second) of Torts § 491 cmt. c.