In SCA Hygiene Products, Inc. v. First Quality Baby Products, LLC, the plaintiff/patentee in 2003 sent a letter to First Quality Baby Products claiming that it was infringing its patent (Pat. No. 6,375,646). However, SCA Hygiene delayed bringing the infringement action until August 2010. Note that the Patent Act specifies a 6 year statute of limitation for infringement actions measured from the time of the infringing activity. First Quality Baby Products asserted laches as a defense barring recovery.
First Quality won the laches argument three times: First, at the U.S. District Court for the Western District of Kentucky; then, during an appeal to a panel of judges on the Federal Circuit; then again, during an en banc rehearing of the appeal.
Unfortunately for First Quality Baby Products, the U.S. Supreme Court has the final word on what the law is, and they were having none of it. The Court vacated the Federal Circuit's ruling, and instead held:
"[E]ven assuming §282 of the Patent Act codified a laches defense to patent infringement, this is insufficient to demonstrate that the laches defense affirmatively displaces the otherwise applicable six-year limitations period."
Thus, as a result of this decision, the equitable defense of laches cannot be used to bar pre-suit damages in an infringement action.
More information on this case can be found at Morgan Lewis:
www.morganlewis.com/pubs/supreme-court-rejects-laches-as-bar-to-damages-for-timely-asserted-patent-infringement-claims
First Quality won the laches argument three times: First, at the U.S. District Court for the Western District of Kentucky; then, during an appeal to a panel of judges on the Federal Circuit; then again, during an en banc rehearing of the appeal.
Unfortunately for First Quality Baby Products, the U.S. Supreme Court has the final word on what the law is, and they were having none of it. The Court vacated the Federal Circuit's ruling, and instead held:
"[E]ven assuming §282 of the Patent Act codified a laches defense to patent infringement, this is insufficient to demonstrate that the laches defense affirmatively displaces the otherwise applicable six-year limitations period."
Thus, as a result of this decision, the equitable defense of laches cannot be used to bar pre-suit damages in an infringement action.
More information on this case can be found at Morgan Lewis:
www.morganlewis.com/pubs/supreme-court-rejects-laches-as-bar-to-damages-for-timely-asserted-patent-infringement-claims
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