For Foreign Activities

  • Presumption Against Extraterritorial Reach Prohibits Damages On Purely Foreign Conduct Caused By U.S. Infringements: Presumption against extraterritorial reach of U.S. patent laws “applies not just to identifying the conduct that will be deemed infringing but also to assessing the damages that are to be imposed for domestic liability-creating conduct.” Carnegie Mellon (Fed. Cir. 08/04/15). Even where foreign-made, delivered, and sold products are “strongly enough tied to” U.S. infringing activity “as a causation matter to have been part of the hypothetical-negotiation agreement,” they cannot be part of the damages calculation: “Where a physical product is being employed to measure damages for the infringing use of patented methods, we conclude, territoriality is satisfied when and only when any one of those domestic actions [make, use, sell, or import] for that unit (g., sale) is proved to be present, even if others of the listed activities for that unit (e.g., making, using) take place abroad.” Id. The damages-measuring action need not itself be an infringing action. Id. (remanding for determination of whether chips made, delivered and used outside U.S., but custom designed inside U.S., were “sold” in U.S.). Not entitled to damages from the infringer’s foreign sales even if those sales were foreseeable result of U.S. infringing activity. Power Integrations (Fed. Cir. 03/26/13); WesternGeco (Fed. Cir. 07/02/15) (2-1) (long dissent) (rev’g award of lost profits based on patentee’s failure to win contracts for surveying for oil in seas outside U.S., lost due to infringer’s (Sec. 271(f)(2)-infringing) export of components to foreign competitors of patent owner, as U.S. patent laws do not reach foreign uses); reinstated with new dissent WesternGeco II (Fed. Cir. 09/21/16).

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