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Wednesday, June 14, 2017 4:13:57 PM
Beyond alternative fee arrangements, a growing number of defendants in patent infringement lawsuits are challenging the validity of the patent at issue through the use of administrative ex parte or inter partes patent reexaminations before the U.S. Patent and Trademark Office (USPTO), based on prior art references. U.S. Federal Courts have the power to stay patent litigation pending completion of reexamination. There has been a significant increase in third-party requests for patent reexaminations since 2003, and the number of patent infringement lawsuits involving parallel patent reexaminations before the USPTO is considerable and increasing.
This sentence [in bold] clearly indicates the value of the USPTO opinion to Federal Court decisions about patent validity. GERS/KK have had the patents reexamined in the face of the district court filings by the defendants and the patents have again been certified as valid by the USPTO.
This is one of the several reasons why C&C/KK hold almost "all of the cards" if the appeal progresses. The defendants, and their attorneys are not dumb, they know this and why they are now mediating; where they never would before. They cannot risk this going to a full Federal Circuit adjudication -- they will likely lose and have little ability to control the damages awarded.
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