Patent Law | Expert Legal Commentary

April 1, 2010

SEB v. Montgomery Ward: “Deliberate Indifference” Can Sustain Inducement Claim

SEB S.A. v. Montgomery Ward & Co., Inc.

By Thomas F. Zuber of Zuber & Taillieu and Yuri Mikulka

The Federal Circuit Court has broadened the standard for inducement of patent infringement by holding that proof of a defendants’ deliberate disregard of the risk that a patent exists can meet the actual knowledge requirement of an inducement claim. In SEB S.A. v. Montgomery Ward & Co., Inc., 594 F.3d 1360 (Fed. Cir. 2010), the Federal Circuit found that a defendant could be found liable for inducement -- even without evidence of its actual knowledge of the patent-in-suit -- if the evidence indicated that the defendant acted with “deliberate indifference” of a known risk that the patent existed. The Court also held that foreign corporations could be held liable for direct infringement even if sale of the infringing product is f.o.b. outside of the U.S., if the defendant intends for the product to be sold in the U.S.

About the Authors

Thomas F. Zuber is a Partner of Zuber & Taillieu, focusing on intellectual property protection and exploitation.

Image Credit: ©iStockphoto.com/toddtaulman

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Companies Mentioned

Global-Tech Appliances, Inc.

Montgomery Ward & Co., Inc.

Pentalpha Enterprises, Ltd.

SEB S.A.

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Target Corp.

Sears Holding Corp.

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Audiovox Communications Corp.

Glamourmom LLC

McKesson Information Solutions, Inc.

Federated Department Stores

Bridge Medical, Inc.

Elizabeth Lange LLC d.b.a. Liz Lange Maternity

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Smithkline Beecham Corp. (d.b.a. GlaxoSmithKline, plc.)

SmithKline Beecham PLC

HT Window Fashion Corp.

SmithKline Beecham Corp. d.b.a GlaxoSmithKline

Scimed Life Systems Inc.

Ortho-McNeil Pharmaceutical, Inc.

Glaxo Group Limited d.b.a. GlaxoSmithKline

Mylan Pharmaceutical, Inc.

Ranbaxy, Inc.

Teva Pharmaceuticals USA, Inc.

Mylan Laboratories, Inc.

Nokia, Inc.

Stryker Sales Corp.

Stryker Orthopaedics

Howmedica Osteonics Corp.

Acumed, LLC

Quanta Computer, Inc.

Sanyo North America Corp.

LG Electronics, Inc.

Smith & Nephew, Inc.

Cohesive Technologies, Inc.

Waters Corp.

Swisa, Inc.

Egyptian Goddess, Inc.

Motorola, Inc.

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Johnson & Johnson, Inc.

Wal-Mart Stores, Inc.

AMI Semiconductor, Inc.

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Additional Resources

Patent Law