Let seller beware: indemnification can cost big; the ubiquity of method patents increases risk of infringement; indemnifiers can be hit hard

Article Abstract:

The US Court of Appeals for the Federal Circuit in Cybor Corp v. FAS Technologies, Inc. re-emphasized that claims construction is a matter of law and the standard of review is purely de novo. This was a different conclusion from that reached by the US Supreme Court in Markman v. Westview Instruments, Inc.. Claim construction often decides patent cases, and during the appeals process it is reopened as if it had never been ruled on before. This process could add years to the time to resolve a patent case without making the result much more predictable or consistent.

Indemnity against liability, Liability indemnity

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Let seller beware: indemnification can cost big; the ubiquity of method patents increases risk of infringement; indemnifiers can be hit hard

Article Abstract:

Provisions in contracts of sale indemnifying the buyer if sued for patent infringement can now expose the seller to very large damages awards for infringement of a third party's method patent, but many sellers, especially in the electronic equipment industry, continue to agree to indemnify buyers. A well-designed strategy of indemnification should allocate liability based on the benefit conferred to the respective parties, and a sample indemnity provision is listed.

Computer industry

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Taking literal approach one step further; California high court finds indemnification duty doesn't extend to cleanup costs required by agency before filing of suit

Article Abstract:

The California Supreme Court ruling in Certain Underwriters at Lloyd's v. Superior Court is discussed and held that a liability insurance policy required payment to a policy holder of only those damages ordered by a court following a civil action.

California, Pollution liability insurance

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