Companies · 5 min read
Suspected patent infringement: how TYR supports companies in enforcement
The short answer: When companies suspect patent infringement, TYR supports them with a technical and economic analysis: using its own software, TYR identifies potential infringers, analyzes the monetization and funding potential, prepares the case as an investment case and arranges litigation funding. The legal assessment and representation are provided by specialized law firms and patent attorneys, which TYR coordinates on request.
Typical signs of patent infringement
Suspicion rarely arises at the desk – it arises in the market. Typical situations:
- “That product looks just like ours.” A competitor launches a suspiciously similar product – with features covered by your IP rights.
- Imports undercut your prices. Low-cost imports, for example from the Far East, show up at trade fairs, in online shops or at your customers and put pressure on your prices.
- Signals from sales. Customers ask why another supplier offers “the same thing” for less, or your field sales team brings back third-party product literature.
A similar appearance alone is not infringement. What matters is whether the product implements the features of a patent claim. The legal assessment of this question is provided by specialized law firms and patent attorneys – based on a technical analysis of the product.
Why time matters economically
Every month an infringer is on the market costs market share and price levels. In addition, patents have a limited term. Time therefore plays an important role in the economic potential of enforcement. Questions on deadlines and limitation periods are clarified by the law firms instructed.
The starting point is gathering facts and a technical and economic analysis.
Which documents help the analysis
The better the starting position is documented, the faster the monetization potential can be analyzed. Helpful items include:
Product samples
A unit of the suspected product – ideally purchased in the ordinary course, with invoice and purchase date. The technical analysis starts from the actual product, for example when comparing it with the patent claims in claim charts.
Documentation
Data sheets, user manuals, brochures, screenshots of websites and online shops, trade fair photos. Such public material often shows how a product works technically.
Dates and context
When did you first notice the product? Who sells it, through which channels, in which countries? Which of your patents might be relevant? A simple chronology makes the analysis much easier.
Contacting the competitor: a decision for you and your law firm
The urge to confront the competitor right away is understandable. Whether, when and how a competitor is approached – for example with a warning letter – is something you decide together with your law firm. Questions on warning letters, deadlines and legal consequences are a matter for the attorneys and patent attorneys instructed. TYR does not advise on this; it provides the technical and economic analysis as a basis.
How TYR supports companies
Step 1: Free analysis of the monetization potential
You send an overview of your patents – or simply your company name – and, if available, pointers to the suspected product. Using its own software tools, TYR identifies companies in your technical fields, analyzes competitor products technically and maps claims against products. If there is no monetization potential, there are no costs. You usually receive an initial assessment of the monetization potential within two weeks.
Step 2: In-depth technical and economic analysis
If there is potential, TYR analyzes the case in detail: technical comparison with the actual product in claim charts, a prior-art validity search, formal risks and a damages estimate. The result is an economic basis for decision-making. The legal assessment of infringement and validity is provided by the law firms and patent attorneys instructed.
Step 3: Funding and coordination
If the case is commercially viable, TYR prepares it as an investment case and arranges litigation funding. The funding covers attorneys’, court and expert costs as well as the risk of losing – in exchange for a share of the proceeds. For you, that means 0 € upfront. On request, TYR assembles the team of patent and litigation attorneys and coordinates the proceedings.
Possible outcomes
How a case ends always depends on the individual circumstances. Typical outcomes of successful enforcement are:
- Injunction: German courts and the UPC regularly grant injunctions once infringement is established – the product disappears from the market, or the infringer takes a license.
- Damages: for past use – calculated as a reasonable royalty, the infringer’s profits or lost profits.
- Border seizure: Enforcement is particularly effective against imports, up to seizure at the border.
- License or comprehensive settlement: Enforcement often ends in a license or a comprehensive settlement – on terms that would be out of reach without proceedings.
In Germany, a first-instance judgment is possible in around 12 months; many cases settle before that. One example from practice: TYR supports a mid-sized manufacturer against infringing imports – with technical analysis, funding and coordination of enforcement.
The legal assessment and representation are provided by specialized law firms and patent attorneys, which TYR coordinates on request. For more on costs, read What does patent litigation cost?.
This article is for general information and is not legal advice.