Cooperating with a competitor instead of engaging in court proceedings

Client

The client develops and produces electronic OEM equipment for both a national and an international market.

Case

Our client received a warning from a competitor, X, that had been granted a US-patent. AWA was asked to analyze the patent, and we estimated that the client would be able to get past it based on the current technology used. After a lot of ifs and buts the competitor dropped the warning. However, our client made clear that in the future, when our client possibly had made a technology shift, they might be interested in taking a licence for the US patent.

Soon after a third company, Y, was sued by X for patent infringement. Y sued back for invalidity of the granted US-patent and expensive proceedings started.

When our client eventually made the expected technology shift, our client and X (being on good grounds based on the earlier communication) signed a licence agreement, which enables our client and our client's OEM customer in turn to sell in the USA.

Client value

Instead of getting into costly court proceedings in the USA, we invited the competitor X to a future cooperation. AWA also managed to angle the agreement so that our client can use it for marketing purposes. It also made it easier for our client's OEM customers to do business in the USA, and in that way they increased the market shares.