cease-and-desist letters in intellectual property...

5
" , o v practice tips By David l. Hoffman and Robert J. Lauson Cease-and-Desist Letters in Intellectual Property Disputes Drafting letters to opponents requires full consi d eration of tactical a nd legal issues C ease·a nd -des is l le tt ers see m to have beco me the tool of choice among attor- neys who want to provide noti ce of a claim and to initiate a di s- pute in the hope of reso lving it in its infancy. However. and partie· ula rl y in int.e ll ectual prope rty di s- putes. attorn eys need to cons id er severa l pitfalls before hitting the se nd button on (l fax mach ine or e-ma il sc reen: if you threate l) to sue, can your clie nt be sued ii l an inconvenient forum und er t he Federal Declaratory Jud gment Ac t?] In pate nt di s putes, can you avoid a d eclar at ory jud gme nt tamers of an infringer, or wo uld that co nstitu te wrongful inter- ference? To an in te ll ectual prop- e rty lawyer se nding a charge-of· infrin gement letter. these are all critical considerations. The Home Field Advantage Wh en individua ls and bu s i- ness cnliti es fr om different states or countries become involved in disputes, the home field advan- tage in any future liti ga tion can become an imp orta nt considera- ti on. Unl ess th e parties operate primarily in tile same geographic area. disputes can be settled in several (or ums, so th e expense and inconvenience of waging a legal battle thousands of mil es across th e country can place the "vi sitin g" pa rty at a significant disadvantage . lll ere are various ways to pro- lec l your client ( rom a declara- tory judgme nt action. First. deter- min e whether the op posing ac ti on and s till pro- v id e adeq uate notice of infringe- ment. which is a pr ere quisite for obtaining d amages if the client did not mark its pro du ct with a patent num· ber? In how much d eta il sh ou ld you prese nt your analy- sis and a ll ega tions David L. Hoffman and Robert 1. Lauson are members of Cislo & Thomas UP in Santa Monica, which handles intellectual propeny prosecution and litigation. Cislo & Thomas represented the plaintiff in Guthy- Renker v. Icon. p ar t y's forum would h ave per- sona l juri sdiction over yo ur client. A cli e nt with ab - so lu tely no bu s i- n ess co ntact s in th e forum of a potenti al opponent should not be su b- ject to su it th ere and nee d not be in order to be co n- vincin g-wi thout limiting your optio ns or di sclosing too much? Is it wise to tip off the reci pi e nt ju st yet. or shou ld fur th er inves- tigation or preparations be under- taken? Shou ld the le tter also be se nt to third parties. such as cus- grea tl y co nce rn ed with th e i ssue. 2 Usua ll y the mere send ing of a cease-and-d esist letter to a poten- tial opponen t in the forum 3 or th e mere posting of a Web site acces· sible from th e forum 4 is not suf· fi c ie nt to crea te personal juris· di c ti on. TIle se nding of eve n a single cease-and-desist letter to an opponent's custo mer, however. may cons titut e minimum co n- lacts,S leaving the clie nt ope n to suit in that forum. lll e minimum contacts threshold can also be es tablished by even limited sales (f or examp le, over the Internet) and the s hipment of a clien t's products into Ih e forum. G Attending a trade show in the opponent's f orum is usua ll y in suf- ficient to estab li sh persona l juri s- diction or proper venueJ How- ever, a client is always vulnerable to being served when ph ysica ll y pre se nt in the for u m. and it s prope rt y in the forum may be su bj ect to s tat e attac hm en t statutes to sati s fy any judgment in some s lat.es. 8 OUl er f orum-related activities need to be evaluated on a case-by- case basis. For example, rece ipt of r oya lti es fr om a li ce n see located in a particular fo r um is in sufficient to es tablish personal jurisdiction. 9 r nl e co ur ts have rea· soned th at doing busin ess wilh a licensee who does bus in ess in a foru m is not the sa me as con- du cting bus in ess in the forum. Howeve r. under cer tain circum- st an ces. th e li ce nsee 's conduct wi ll be chargeab le to the licen- so r. th ereby enabling an accused illfringer to asse rt perso nal juri s- diction over the licenso r where the li ce nsees do bu s in ess. lo In addition, bringing U.S. Trade· Illark O ffi ce proceedings, such as an oppositi on or cance ll ation proceed in g to stop or cance l an opponent 's trade mark r eg istra- li on. is generally not sufficie nt to create an actual infringement con- troversy. II lll e situation beco mes more compl ex if a client ha s sufficient conlacts in an inconvenient forum' LOS ANGelES LAWYER I SEPTEMBER 1999 19

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Page 1: Cease-and-Desist Letters in Intellectual Property Disputesdlhpatent.com/articles/cease-and-desist.pdf · Cease-and-Desist Letters in Intellectual Property Disputes ... lett er was

" , ~ o • ~ v •

practice tips

By David l. Hoffman and Robert J. Lauson

Cease-and-Desist Letters in Intellectual Property Disputes

Drafting letters to

opponents requires

full considerat ion

of tactical a nd

legal issues

C ease·and-desis l le tters seem to have become the tool of choice among attor­

neys who want to provide notice of a claim and to initiate a di s­pute in the hope of resolving it in its infancy. However. and partie· ularly in int.ellectual property dis­putes. attorneys need to consider several pitfalls be fore hitting the send button on (l fax machine or e-mail screen: if you threatel) to sue, can your client be sued iil an inconven ie nt forum under the Federal Declaratory Judgment Act?] In patent di sputes, can you avoid a declarato r y judg me nt

ta mers of an infringe r, or would that cons titu te wrongful inter­fe rence? To an in tellectual prop­e rty lawyer sending a charge-of· infringement letter. these are all critical conside rations.

The Home Field Advantage

Whe n ind ividuals an d busi­ness cnlities from different states or countries become involved in disputes, the home field advan­tage in any future litigation can become an important considera­tion. Unless the parties operate primarily in tile same geographic area. disputes can be settled in several (orums, so the expense and inconvenience of waging a legal battle thousands of miles across the country can place the "vi si ting" party at a signifi cant di sadvantage.

lllere are various ways to pro­lecl your client (rom a declara­tory judgme nt action. First. deter­min e whether the op po s in g

action and still pro­vid e adeq ua te notice of infringe­me nt. which is a pre requisite for obtaining damages if the client did not mark its produc t with a pate nt num· ber? In how much detail should you present your analy­sis and allegations

David L. Hoffman and Robert 1. Lauson are members of Cislo & Thomas UP in Santa Monica, which handles intellectual propeny prosecution and litigation. Cislo & Thomas represented the plaintiff in Guthy­Renker v. Icon.

p ar ty's forum would have per­sonal juris d iction over your client. A clie nt with ab­solu tely no bus i­ness contacts in th e forum of a pote nti al opponent should not be sub­ject to su it there and need no t be

in order to be con­vincing-without lim iting your options or disclosing too much? Is it wise to tip off the recipie nt just yet. or should fur ther inves­tigation or preparations be under­taken? Should the letter also be sent to third parties. such as cus-

greatly concerned with th e issue. 2

Usually the mere sending of a cease-and-desis t letter to a poten­tial opponent in the forum 3 or the mere posting of a Web site acces· s ible from the forum 4 is not suf· fic ie nt to create pe rsonal juris· di ction. TIle sending of even a

single cease-and-desist letter to an opponent's custome r, however. may cons titute minimum con­lacts,S leaving the client open to suit in that forum. llle minimum contacts threshold can a lso be established by even limited sales (for example, over the Inte rnet) and the s hipment of a clien t's products into Ihe forum. G

Attending a trade show in the opponent's forum is usually insuf­ficient to establish personal juris­d iction or prope r venueJ How­ever, a client is always vulnerable to being served whe n physicall y present in the for um. and it s prope rty in the forum may be su bject to s tate attachm en t statutes to satisfy any judgment in some slat.es.8

OUler forum-related activities need to be evaluated on a case-by­case basis. For example, rece ipt of r oyalties fr om a lice nsee

located in a particular fo rum is insufficient to establi sh personal jurisdiction.9 rnle courts have rea· soned that doing business wilh a licensee who does business in a foru m is not the same as con­ducting business in the forum. However. under cer tain circum­stances. the licensee's conduct wi ll be chargeable to the licen­sor. thereby e nabling an accused illfringer to assert personal juris­diction over the licensor where the licensees do business. lo In addition, bringing U.S. Trade· Illark Office proceedings, such as an opposition or cance llation proceeding to s top or cancel an oppone nt's trade mark regis tra­lion. is generally not sufficient to create an actual infringement con­troversy. II

llle situation becomes more complex if a client has sufficient conlacts in an inconvenient forum'

LOS ANGelES LAWYER I SEPTEMBER 1999 19

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20 LOS ANGELES LAVVYER I SEPTEMBER 1999

to trigger persona1 jurisdiction. A well-advised tactic in such cases is to first file a lawsu it in the preferred fo rum-although no t neces­sarily serving the complaint immediately­and then send the cease-and-desist letter. In most forums there is no legal obligation to try to reso lve a dispute before filing, but local ru les need to be checked thoroughly. Although federa l courts in California do 1I0t requ ire such e fforts. the Central Dis tric t requires a prc filing confe rence of counsel prior to bringing a motion.12 1l1is sue-first­write-later approach genera lly retains the home field advantage under the firs t-ta- file rule. That is, courts usuaJly a1low the firs t-filed lawsuit to proceed.

The complaint-and-Ietter approach serves another important purpose: it helps prepare the client and attorney for li tigation. If only a letter is sent. the client may view li tigation as a far-off. theoretical possibility and may be unpleasantly surpri sed when faced with the reality of an expef\sive and timtXonsuming lawsuit. However, 'by filing a complaint, the client will almost certainly see the potential consequences of se nding th e le tt e r. Add itionally, the attorney, in meeting obliga­tions under Federal Hule of Civil Procedure 11 or other similar ru les requiring a prefiling investigation, may have uncovered any lega l obstacles the clien t may face. 13

If the client is particularly wary of li tiga­tion, or if for other reasons (such as the expense involved) no lawsuit is filed prior to sending a letter, an inconve nient forum can s till be avo ided by including in the letter a clearly stated deadline after which litigation will begin. This provides the sender with immunity to a "preemptive s trike" or ~antici­patory'" declaratory judgment lawsuit un til the deadline or other reasonable time for set­tle ment negotiations has passed. 1~ If the let· le r contains neither a clear dead li ne nor a concrete indication that suit is imminent, the recipient may properly bring a declaratory

judgment <lclion in its chosen forum on the legal basis that it would otherwise be forced to wait indefinitely. IS

A recent case shows how fai lure to set a deadline can be costly.16 Precor, a Seattle­based exercise equipment maker, learned lhat cer tai n Taiwanese companies were man­ufacturing allegedly infringing me rchandise be lieved to be destined for marketing in the United States through infomercials. Precor bl;mke ted in fome rcial producers, such as S<lnta Moniccl-based Gut hy-He nker. wit h cease-and-desis t lette rs warning agains t infringement of its U.S. paten t but failed to set a deadline for compliance. Guthy·Renker filed a declaratory judgment action in the Central District of Cali forn ia against Precor and its exclusive licensee, Icon Health & Fitness.

Upon lea rning of the California declara­tory judgment action, Precor fil ed an infringement action in tJle Western District of Washington. and moved to have tJle California action s tayed, dismissed, or transferred. Even: though Seattle was the situs of several other re lnted ~cases previously fil ed by Precor, Gu thy-He nker successfu lly opposed Precor's Illotion. "nle dis trict court found that Precor's le tt er was st lfficiently threatening to create a con troversy. Accord ingly, Gu th y-Renker's California action could go forward because it was the firs t filed.

Precor a rg ued that the fi rs t-to- file rul e docs not app ly to a "preemptive st rike ." However. the court clearly stated that this exception only applies when a deadline is set, to prevent a de fendant from being left in an indefinite state of wondering when suit will be brought. 'Ill e cour t also found that Precor had sufficient contacts with California to have the su it decided here.

If sued for a declaratory judgment after sending a cease-and-desist letter, some clients may want to be able to say, "'We didn't really mean it." For those clients who want to object to an adversary's behavior but avoid litigation

A Checklist before Sending In crafting cease-and-desist letters in intellectual property controversies, it is important,

even if you are ready to litigate, to consider the following issues carefUlly:

V Avoid providing the oppOSing party with an opportunity to bring a declaratory judgment

action. This can be avoided by stopping short of directly threatening a lawsuit in the letter.

V If you do want to threaten legal action, however; establish a reasonable deadline for nego­

tiations-or file a complaint first to protect your preferred forum, even if you are fairly com·

fortable that your client has no contacts in the OPPOSing party's state.

V Be sure to make the letter sufficiently detailed to put the opposing party on notice, which

must include a direct allegation of infringement and a description of the infringing conduct.

V Take special care when determining how much information to put in the letter, how soon

to act after sending the letter, and to whom to send the letter.

Above all, ensure the truth of all assertions made in the letter, if necessary by undertak·

ing an investigation before sending any cease-and-desist communications.- D.L.H & R.J.L.

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22 LOS ANGELES LAWYER I SEPTEMBER 1999

(al least fo r the lime being) ,one option is to scnd a nonthreatening le iter that is insuffi ­cient to create a controversy. ' Ille lett er puts the other side on actual notice of II client's rights bllt only expresses the dicnt's CO Il­

I.;Cfn :-;, PCrllilPS including an invi lalioll 10 Ilcgo­lja lc a license. As long as the recipie nt, under the totality of lhe circumstances, h olS 110 rea­sonable apprehension of being sued, no aclual controversy has been created.

In in tellectual proper ty controversies it is important to put the infringer all actual notice of a clien t's rights. For example, if a patent holder has not been properly marking it s products will i the patent number, damages do not begin to accrue un til the infringer has actual noti ce of the pate nt,!? which is com­mo nly accompli shed by <I charge-of-infringe­menl lett e r. ' Ille lette r wi ll al so prov ide an argume nt that the defendant's conduct was intentional and lead to enha nced damages in a successfullawsu il.

' 1liC s ta ndards for creating a controve rsy and providing noti ce of patent infringement differ. s lig htly, however. An e ffective letter should ide ntify the p<ll e nl and thc acti vit y belicved to be an infringe ment , accompanied by II proposal to pu t an end to the infringe­mc nt, by license or othe r wise (e.g., by the infringer ceasing its infri nging activities) .18 By contrast, send ing a me rely informational le tt e r telling of the pate nt's cx is tcnce and owne rship, or sayi ng a ll acc ll sed product "may in fringe" lIlay fall shor t of the not.ice requirements of the patellt statut e. 19 T'o avoid creat.ing a controversy yet s till provide notice of infringement, make a speci fic charge of in fri ngeme nt but no direct threat to s tl e.

Walk ing t he Tightrope

Generall y, lawyers wan l 10 avoid di ~c1os­

illg in fo rmat ion or taki ng a position in litiga­tion until il is absolutely necess.ary. It is illllXlr­t,lI1 t to Icave options open should discovery or olher faclors make it necessary to assume an unan ticipated position. However, in o rder to make a cease-and-desis t leite r convincing, it is important to include sufficient fac ts to show thaI yo u mean business. You want to show opposi ng counsel your claim has me rit, YOll have inves tigat ed a nd given the matter thought. and you intend to pursue the matter if you do not receive the result you want. In a pa tent Glse. thi s may mean listing lhe gen­e ral elemen ts of your claim (ule claims defi ne the peHe nt rights) and pointing out lhe cor­responding elements of Ul e accused product or process.

T his inrorms the opposing counselor party of the strengths of your case and weak­nesses of the irs. Such a le tter usually cannot be dismissed as a baseless threat To limit Ule possibility of havi ng the letter used against

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YOli later. you ~ h o lild mark the lett e r as a

cOllfidentiaJ se ttl emcllt di sc lI ssion unde r Federal Hule of Evidence -1 08 <Ind an appro­pria te stale rlllt:~~" lhal excludes evidcnce gen­eraled by compromise negotiations "to prove liability for or invalidity of the claim or it s amount:·~! Marking a lett er confidential does not ilutomaticall y provide protection against the lise or the le[ [er by ,1IL opposing party. but it logically will help [0 show thaI the letter had the purpose of promoti ng settl ement . an important basi:.; of I ~Ll I (' '108.2·~ A detailed let­te r promotes settlement by di sclosure. and thus. the pri vilege encourages ollt-of-cour t settlements.

Trademark cases provide another exam­ple of the di fficult y in drawing the appropli­ale line in disclosing' information. When both par ties arc using similar marks in the same geographic area and you be li eve priority­firs l use-may be an issue. you may not want to disclose your c1 ient 's fi rs t date of use because you are uncer tain of the opposing party's date of first use. Ye t if yo u simply allege generally thal you have prior use or do not make any specific allegalion, you will be unlikely to reach a prompt settlement.

You should also think carefully before alleging confusion of trademarks. Alleging that there is a likelihood of confusion, without

24 LOS ANGELES LAWYER I SEPTEMBER 1999

a certainty that your cli ent has priority of use. may constitute a serious admission. Even though the admission may be protected by a se ttl eme nt di scussion privilege, you have weakened your bargaining position. TIl is prin­c iple could apply wherever there are con­fli eting rig ht s. A thorough investigation is a wise prerequisit e to a cease-and-desist lell er in these as well as other situations.

Extent of disclosure may also become an issue in a copYlight case. Copyright infringe­men[ ca ll be substantiated through direct proof of copying or by showing a substantial similarity between the copyrighted wo rk ami the de rivative togethe r wi th access to the copyrighted work. Often the all egations in a cease-and·desist lette r focus on a substantial similaJi lY between the works, but if you are aware of facts that demonSlrate access to the copyri ghted work as well. some di sclosure may ass ist in reaching se tt lement. On the othe r hand, disclosure of those fac ts Ill ay enable the opposing par ty to plan its de fense. Your decision on how much to di sclose will depend on a variety of factors: your cl ient's ' goals. whethe r the other party already knows lhat access is an issue, and whethe r you think the othe r party can do anything in response to your disclosure 10 make a diffe rence in the casco In deciding what to di sclose. you

must al so consider whether the opposing party is scrupulous or uTl scrupu lous and may spoliate evidence.

Attorneys Illay al so be tempted in a cease­and-desist le tte r to di sclose as Illany potential caLl ses of action as possible . 11lis may seem like a good idea because it is threatening and may make your client happy by looking like you want to throw the book at the other side. Howeve r. allegations of tenuou s causes of action may detrac t frol1l your main allega­tions. ' illercfore. allegations of causes of ac­tion that arc not your primary causes should be incorporated as examples supporting a general s tatement that tll e letter is being sent witholltlimiting the causes of acti on and that other causes of ac tion may exis t.

Taking Further Action

111 sending an initial lette r it is criti cal 10

have a follow-up strat e!,,")'. If you do not take legal action within a certain pe ri od of time. you may lose the rig ht to important relief, such as lost profi ts. eLt least until you actually do fil e suit. For example, the doctrine of laches is a COlllmon defense in intellectual property matte rs . and there is a presump­tion of laches when there is a delay of six or more years in bringing suit.2J ' 111 C sending of

(Con tinued on page 56)

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)is =

Cease-and-Desist Letters (Continued from page 24)

the cease-and-desist letter establishes when the plaintiff knew of the infringing activity and initiates the time period. In general, if you bring suit within a few months of sending the letter, laches is not a concern. 24 Moreover, the presumption of laches is rebuttable by proof of a reasonable excuse for the delay.2S

Delays can also become an issue when moving for a temporary restraining order or preliminary injunction. As a practical matter, winning a motion for a preliminary injunc­tion or a TRO is a good way to end a dispute Quickly. However, the amount of time you wait to sue after you send the cease-and-desist letter will substantially affect whether you can claim true irreparable harm as a result of the infringement Irreparable harm may be presumed in moving for a preliminary injunc­tion in a patent case, but that presumption is rebuttable by undue delay.26 Therefore, if you are considering a motion for a preliminary injunction or other preliminary relief, you should file as promptly as possible after it becomes clear that a cease-and-desist letter has not achieved its objective.

Since the elements of laches are unrea­sonable delay and prejudice, sending a cease­and-desist letter and then doing nothing may shorten the period for laches.27This is impor­tant to consider, especially if your letter sets a deadline. In trademark and copyright cases, the laches period generally depends on the circumstances, but a few months' delay is usually not a sufficient period, while years maybe.2S

Contacting Third Parties

Clients will sometimes insist that cease­and-desist letters be sent to the infringers sales representatives, customers, or suppliers. The problem with this approach is that it can create the basis for a counterclaim for wrong­ful interference with business relations or related claims. Generally, the success of a wrongful interference claim den.ends in part on the merits of the client's claim. If the client has a strong claim, threatening third parties may be worth the risk, but an alternative is to merely advise third parties of your client's claim without making a threat

Whenever you write to a third party, the letter must be very carefully worded to avoid including any allegations that may be inac­curate. You may also want to consider other ways of apprising third parties of your claim, such as through a press release. Again, it is very important to avoid inaccuracies and to remain as factual as possible.

In the recent case of Mikohn Gaming Corporation v. Actn Gaming, Inc.,29 the Court

r

I

1

of Appeals for the Federal Circuit considered whether patent holders can send infringe­ment notices to the alleged infringers cus­tomers. In that case, Acers owned a patent on a gaming machine and sent letters to Mikohn's customers and prospective cus­tomers stating: "It appears that the MoneyTime system manufactured and sold by Mikohn Corp. infringes at least some of the claims of the enclosed patent. .. Acers intends to use its patent to stop use of such systems." Acers also issued a press release stating, "Customers naturally hesitate to do business with a company whose products appear to infringe a patent." Mikohn filed a declara­tory judgment action and brought claims for intentional interference with existing and potential business relations under Nevada common law. The district court found for Mikohn.

The Federal Circuit, on appeal, held that the claimant, Mikohn, had the burden of demonstrating that the purportedly interfer­ing communications were not legally justi; fied under Nevada common law. The Federal Circuit ~lso held that federal law is preemp­tive, including the patent notice section of the patent statute30 and related case law. Under those cases, a patent holder cannot be liable for publicizing a patent in the mar­ketplace unless bad faith can be shown. The court cited another recent Federal Circuit decision,31 which holds that a threshold show­ing of falsity or incorrectness or disregard for correctness or truth is required to find bad faith in "the communication of information about the existence or pendency of patent rights." It is worth noting that federal courts have exclusive jurisdiction over torts that involve significant patent issues.32

The settlement discussion privilege offers another means of defense against wrongful interference claims. Communications that are directed solely to the allegedly infringing parties should be protected by the privilege. This privilege would probably be exceeded, however, by sending letters to prospective customers or by publishing allegations. In any event, to belie a claim of bad faith it would be helpful to have a memorandum or other opinion of counsel that your claim is meritorious and that the party to whom the cease-and-desist letter is being sent is vio­lating the law.

Remember, a cease-and-desist letter may have several important effects on any sub­sequent negotiations or litigation. Its con­tents should therefore be well planned. •

1 Declaratory Judgment Act, 28 U.S.C. §§2201 et seq. 2 Burger King Corp. v. Rudzewicz, 471 U.S. 462, 474-76 (1985); World-Wide VolkSwagon Corp. v. Woodson, 444 U.S. 286, 291-92 (1980). 3 Red Wmg Shoe Co. v. Hockerson-Halberstadt Inc., 148

54 B if :;:sufli tHHYH'tK

F. 3d 1355 (Fed Cir. 1998); Cascade Corp. v. Hiab­Foco AB, 619 F. 2d 36, 37-38 (9th Cir. 1980). 4 CyberseD. Inc. v. CyberseU, Inc., 130 F. 3d 414 (9th Cir. 1997).

5 Meade Instruments Corp. v. ReddwarfStarware llC. 47 U.S.P.Q. 2d 1157 (C.D. Cal. 1998). 6 Millennium Enterprises, Inc. v. MiDennhun Music.IP. 49 U.S.P.Q. 2d 1878, 189().91 (D. Ore. 1999). 7 Congoleum Corp. v. DLW AktiengeseUschaft, 729 F. 2d 1240, 1242-43 (9th Cir. 1984); New York Xedit Corp. v. Harvel Indus. Corp .• 456 F. Supp. 725 (S.D. N.Y. 1978); Johlar Indus., Inc. v. Essex Eng'g. Co .• 1998 U.S. Dist LEX1S 7623 (N.D. ID.); Amateur-Wholesale Elec. v. R. L Drake Co .• 515 F. Supp. 580 (S.D. F1a. 1981). • Bourassa v. Desrochers, 938 F. 2d 1056. 1057-58 (9th Cir. 1991); e.g., N.C. Gen. Stat §1-440; Hutchison v. Bank of North Carolina, 392 F. Supp. 888 (D.C. N.C. 1975). , Red Wmg Shoe Co. v. Hockerson-Halberstandt Inc., 148 F. 3d 1355 (Fed. Cir. 1998). 10 Dainippon Screen Mfg. Co. v. CFM Technologies. Inc .• 142 F. 3d 1266 (Fed. Cir. 1998). II American Pioneer Tours, Inc. v. Suntrek Tours, Ltd., 46 U.S.P.Q. 2d 1779 (S.D. N.Y. 1998). 12 CENT. DIST. OF CAL. LocAL R. 7.4.1. 13 FED. R. CIV. P. 11 (b) requires that representations to the court: 1) not be made for any improper purpose. 2) be warranted by existing law or by a nonfrivolous argu­ment for new law, 3) have or be likely to .have eviden­tiary support, and 4) are warranted if in the form of denials. 14 Charles Schwab & Co. v. Duffy, 49 U.S.P.Q. 2d 1862, 1998 U.S. Disl LEXIS 19606 (N.D. Cal. 1998). 15 Ward v. Follett Corp., 158 F.R.D. 645. 648-49 (N.D. Cal. 1994). 16 Guthy-Renker Fitness v. Icon Health & Fitness. 48 U.S.P.Q. 2d 58 (C.D. Cal. 1998). 17 See 35 U.S.C. §287(a). 18 SRI Int'l v. Advanced Tech. Labs, 127 F. 3d 1462 (Fed. Cir. 1997). 19 Amsted Indus., Inc. v. Buckeye Steel Castings Co .• 24 F.3d 178, 187 (Fed. Cir. 1994). 20 In California, for example, EvID. CODE §1152. 21 FED. R. EvID. 408. 22 Advisory Committee Notes to FED. R. EVlD. 408. 2'l A C. Aukennan Co. v. R. L Chaides Constr. Co .• 960 F.2d 1020 (Fed. Cir. 1992) (en bane). 24 Meyers v. Asics Corp., 974 F. 2d 1304 (Fed. Cir. 1992) (While there is no fixed time period that defini­tively establishes laches, the court cited cases applying laches after at least three or four years and refused. under the circumstances, to apply laches to a delay of four years.). 25 A C. Aukennan Co., 960 F. 2d 1020. Z6 H. H. Robertson Co. v. United Steel Deck, Inc., 820 F. 2d 384 (Fed. Cir. 1987). 27 Meyers. 974 F. 2d 1304. 211 See, e.g., Ameritech Inc. v. American Infonnation Technologies Corp., 811 F. 2d 960 (6th Cir. 1987) (six

months not laches in a trademark case); eellulann, Inc. v. Bay A1ann Co., 20 U.s.P.Q. 2d 1340,1346 (N.D. Cal. 1991) (thirteen months not laches in a trademark case); Golden West Brewing Co. v. Milonas & Sons, Inc., 104 F. 2d 880 (9th Cir. 1939) (three years consti­tutes laches in a trademark case under the circum­stances); Ruolo v. Russ Benie & Co., 886 F. 2d 931, 942 (7th C"n-. 1989) (two-year delay not laches in a copyright case). 29 Mikohn Gaming Corp. v. hers Gaming, Inc., 165 F. 3d 891 (Fed. C"n-. 1998). 30 See 35 U.S.C. §287. 31 Hunter Douglas, Inc. v. Hannonic Designs, Inc., 153 F. 3d 1318 (Fed. Cir. 1998). 321d