Current affairs

The importance of patent marking

The terms 'patent pending' and 'patent' or the abbreviation 'pat' followed by a patent number are not a rarity on products or product packaging in international trade. As an alternative to patent marking on the product or packaging - especially when a product is protected by multiple patents - a reference is frequently made to a website that lists the relevant patents.

In most countries, there is no obligation for patent holders to name patents on products and/or packaging. However, an agreement can be made between parties under which, for example, a licensee is obliged to mention patents. Thus, although patent marking is often not mandatory, this article discusses the benefits of patent marking and the aspects to pay attention to.

Damage claims

One of the main advantages of patent marking is that in several countries - including the United States - it plays an important role in the possibility of claiming damages in the event of infringement of the patent in question. Indeed, patent marking presumes that the infringer was aware of the existence of the patent. This condition applies not only to the patent owner, but to any party who manufactures, offers for sale, sells or imports the patented product.

Deterrent effect

Patent marking can deter potential infringers. After all, patent marking shows that the patent owner values his intellectual property rights and that he is also willing to take action against infringers.

Strengthening image

Listing patents often benefits a company's image. It allows the patent holder to show that its products are innovative, which is good for the perception of customers and potential investors. A recent study has shown that consumers are willing to pay more for a product that has patent marking on it (Jamal Eddine Azzam, David H. Henard and Stéphane Salgado: Patent Marking' as a Signaling Strategy: Impacts on Perceived Product Innovativeness and Innovation Adoption, Décisions Marketing, vol. 109, No. 1, 2023, pp. 141–159).

Damages

As already mentioned, patent marking is an important means of claiming damages in case of infringement in some countries, including the United States. The absence or incorrect implementation of patent marking can then entail that, for example, no or only minor compensation for lost profits resulting from the infringement can be claimed by the patent holder.

Improper patent marking

(Knowingly) stating that a product is patented when it is not, or stating an expired or invalid patent, can also carry risks. In certain countries, such an "omission" can be punished with a fine or third parties can bring a claim based on unfair (trade) practices. It is therefore prudent to regularly review the patent portfolio and current product offerings and update patent marking where necessary. Using virtual marking can be a good solution because updating information on, for example, a website is often easier and also less costly than making changes on products and or product packaging.

Ernst van Knobelsdorff

+31 70 416 67 42

Share

Poll

Wat gaat het nieuwe octrooisysteem (UPC) voor mij betekenen?

Als het UPC en unitair octrooi worden ingevoerd, zal ik:

voor mijn bestaande en nieuwe EU octrooien waarschijnlijk kiezen voor UPC

25%

voorlopig nog het huidige systeem volgen en eerst de UPC-ontwikkelingen afwachten

25%

niet weten wat het beste is om te doen

25%

Kies uw antwoord en zie de reacties van andere lezers!
Lees meer over het UPC en het unitair octrooi.