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Joint Infringement Defense Paper

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Federal Circuit Upholds Joint Infringement Defense Recently, the U.S. Court of Appeals for the Federal Circuit announced its 2-1 decision in Akamai Techs., Inc. v. Limelight Networks, Inc., upholding the “joint infringement defense” under which a patent cannot be infringed upon if the infringement relies on two or more parties acting independently. A June 2014 ruling by the U.S. Supreme Court in Limelight Networks v. Akamai reversed a 2012 decision by the Federal Circuit that had held Limelight liable for infringing an Akamai patent that covered methods for storing and delivering large files via the Internet. In defending the suit, Akamai alleged that Limelight had induced its customers to infringe its patent by instructing then on how to tag files for delivery. The justices ruled that Limelight couldn’t be …show more content…

The Supreme Court struck down this concept of “divided infringement,” saying that for infringement to apply, all the steps must be performed by a single entity or entities joined together via contract or other arrangements. Applying the June 2014 Supreme Court decision, the Federal Circuit found that Limelight did not control or direct the actions of its clients. Although a contract existed between Limelight and its clients, the contract did not require clients to perform certain steps that Limelight did not itself perform. Consequently, Limelight committed no direct infringement -- and therefore, there was no indirect infringement. The Akamai case has potential wide-ranging implications in patent litigation and transactional law pertaining to joint technology ventures. The case has been litigated since 2006. Following this latest Federal Circuit decision, Akamai announced that it would seek a Federal Circuit en banc review of the most recent ruling and, if necessary, take the joint infringement issue to the U.S. Supreme

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