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Wednesday, 18 July 2007 |
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From a Charleston perspective, where many individuals and institutions are trying to foster a knowledge-based high-tech and bio-tech economy, the rulings are seen as calming what can sometimes be volatile waters for these kinds of companies.
“In terms of bio-tech and the makers of medical devices, there’s already enough volatility in their lives as they go through the process of securing approvals from the U.S. Food and Drug Administration,” Pearce said. “At least in the case of publicly traded companies, these rulings may help management to stay focused on what they’re striving for, rather than having to redirect their time and energy to frivolous lawsuits.”
In one of its most important patent rulings in years, the High Court’s unanimous decision in KSR International Co. v. Teleflex Inc., No. 04-1350, made it easier to find that a patent had been improperly issued for an invention that was “obvious” and, therefore, undeserving of patent protect.
“This ruling is really focused on making it more difficult to have patents issued, and the way the court is doing it is by a tightening of the standard by which they’re issued,” Pearce said.
“What they’re saying is something really needs to be novel in order to be deserving of protection,” he continued. “What concerns me a little bit is how this is going to be put into practice. And I wonder whether there might be an onerous burden placed on companies coming out of our research institutions, when really those things raising the court’s concerns might be a problem relating to the U.S. Patent and Trademark Office.
“You know, it could be that an undeserving patent is issued form time to time simply due to a lack of understanding on the part of the examining patent attorney, and now, proofs of an invention’s ‘lack of obviousness’ may become too stringent,” Pearce said.
On a different note, by a 5-to-4 vote the justices continued to curb punitive damages to plaintiffs, overturning a $79.5 million award against Philip Morris in Philip Morris USA v. Williams, No. 05-1256.
In that case, the High Court held that an Oregon jury that gave the award to the widow of a lifelong smoker might have improperly calculated the figure to punish the cigarette maker for harm to other smokers as well.
“Curbing punitive damages is obviously the mantra of the U.S. Chamber of Commerce and other business organizations,” Pearce said. “Many members of those organizations contend that punitive damages are inflicting serious damage on the U.S. economy.
“Now, understand that others argue that contention is way overstated, but I do think punitive damages have a real impact on prices businesses set for their goods and services. So, long term, a decision like this may actually result in the lowering of prices of goods and services and help foster further business investment and the creation of more startup companies.”
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