Also known as:commercial acquiescences · acquiescence
Written by attorneys — see sources below.
in patent law
An evidentiary doctrine under which a competitor's action or inaction that reflects belief in a patent's validity serves as circumstantial evidence of the patent's nonobviousness, validity, or enforceability.
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How its tested
Common Examples
6
License Signals Patent Validity
Crystal Dynamics faced a patent infringement suit from a competitor over software technology. Instead of challenging the patent, Crystal Dynamics negotiated and paid for a license. The patent owner later cited this license as commercial acquiescence to prove the invention was nonobvious.
Design-Around Attempt Shows Belief
Cobalt Energy attempted to design around a competitor's energy processing patent rather than contest its validity in court. The patent holder introduced evidence of this effort as commercial acquiescence indicating the patent's enforceability.
Competitor Avoids Market Entry
Coastal Shipping refrained from entering a shipping technology market dominated by a patented system. The patent owner used this inaction as commercial acquiescence to support the patent's validity during litigation.
Copperfield Mining made ongoing royalty payments under a disputed mining equipment patent without filing an invalidity challenge. The patentee relied on these payments as commercial acquiescence evidencing the patent's strength.
Failure to Oppose Patent Filing
Cade Carpenter, a rival inventor, learned of a competitor's patent application but took no steps to oppose or design around it. The patent owner later pointed to this passivity as commercial acquiescence supporting nonobviousness.
Settlement Avoids Infringement Trial
Colin Chambers settled an infringement claim by agreeing to cease sales of a competing product. The patent holder introduced the settlement as commercial acquiescence to bolster the patent's enforceability in a subsequent proceeding.
4 common questions
Students Frequently Ask...
What type of conduct constitutes commercial acquiescence in patent cases?
Action or inaction by a competitor that reflects belief the patent is valid, such as taking a license or attempting to design around the invention, qualifies as commercial acquiescence.
How can a patent owner use commercial acquiescence at trial?
A patent owner may introduce a competitor's license, design-around efforts, or market avoidance as circumstantial evidence of nonobviousness, validity, or enforceability.
Does commercial acquiescence require an express statement of belief in patent validity?
No. Tacit or passive acceptance through conduct such as paying royalties or refraining from market entry suffices to show the competitor's belief.
Is commercial acquiescence limited to direct competitors?
Yes. The doctrine focuses on conduct by a patentee's competitor whose actions or inactions indicate acceptance of the patent's validity.
410 U.S. 113 (1973)
…emphasized "the best interests of the patient," "sound clinical judgment," and "informed patient consent," in contrast to "mere acquiescence to the patient's demand." The resolutions asserted that abortion is a medical procedure that should be performed by a licensed physician in an accredited hospital only after consultation…