Supporting Customer Stay Legislation

//Supporting Customer Stay Legislation

Supporting Customer Stay Legislation

Supporting Customer Stay Legislation

RESOLVED, that IPO supports, in principle, legislation to stay a patent case against a customer of a product while a case on the same patent proceeds against the manufacturer of that product on issues common to the customer, provided that:

1.  The statutory stay requires consent of both the manufacturer and customer.

2.  The statutory stay must be sought early in the case.

3.  The statutory stay requires the customer to be bound by the resolution of issues in common with the manufacturer (with limited exceptions when justice so requires).

4.  The statutory stay is based on readily discernible criteria.

 5.  The statutory stay is limited to retailers, end users or other customers accused of infringement for selling, using or incorporating for sale a product or process, supplied by the manufacturer, that they have not materially modified.

6.  The statutory stay does not preclude a patent owner from seeking damages or other relief directly from the customer, once the stay is lifted, if such relief would have been available if the case were not stayed.

  7.  The statutory stay does not preclude a court from exercising its discretion to decide whether and to what extent a stay is warranted beyond what is provided in the statutory stay.