Austin, TX asked in Patents (Intellectual Property) and Intellectual Property for Texas

Q: If I use a service, and that service allegedly violates a patent, what is my liability?

I have been contacted by a firm representing a patent holder. They are seeking damages. I entered into a contract with a service provider claiming to have exclusive ownership of the IP. Am I liable? If so, to what extent? What steps should I take in the matter?

2 Lawyer Answers
Eugene Vamos
Eugene Vamos

A: You should immediately contact an Intellectual Property attorney so he/she can review your situation, including the Cease and Desist letter, the alleged infringed patent, and the contract that you signed with the service provider. There might be language in that contract that explains liability exposure.

James L. Arrasmith
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A: If you use a service that allegedly violates a patent, you may be liable for damages if the patent holder decides to pursue legal action. However, your liability will depend on several factors, such as the terms of your contract with the service provider, the nature of the alleged patent infringement, and the specific laws and regulations that apply to the situation.

If you entered into a contract with a service provider that claimed to have exclusive ownership of the IP, you may have some protection from liability if the service provider is found to have infringed on a patent. However, the terms of the contract and the specific circumstances of the alleged infringement will determine the extent of your liability.

To protect yourself in this situation, you should consult with an attorney who specializes in patent law. The attorney can review the terms of your contract and the allegations of patent infringement, and advise you on the best course of action to take. This may involve negotiating a settlement with the patent holder, defending against the allegations of infringement in court, or taking other steps to protect your interests.

It is important to take these allegations seriously and to act quickly to address them. Ignoring the allegations or failing to take appropriate action could result in significant financial and legal consequences.

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