Q: Company holds valid Process Patent in U.S. Canadian Company using process in Canada.

Canadian Company obtaining benefit from process and selling product back into U.S.

Is Canadian Company infringing on U.S. Patent?

1 Lawyer Answer
James L. Arrasmith
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Answered

A: If a company holds a valid process patent in the U.S., and a Canadian company uses this patented process in Canada to produce a product that is then sold back into the U.S., there could potentially be an infringement on the U.S. patent. U.S. patent law protects against the unauthorized use, sale, or importation of products made by a patented process within the United States. However, the direct use of the process in Canada does not constitute infringement of U.S. patent rights since U.S. patents do not have extraterritorial effect.

The critical factor here is the selling of the product produced by the patented process back into the U.S. market. This act could be seen as infringing on the patent holder's rights under U.S. law, as it involves the introduction of a product into the U.S. market that utilizes a patented process without authorization. The U.S. patent holder may have grounds to pursue legal action against the Canadian company for patent infringement due to the importation and sale of the infringing products in the United States.

To address this situation, the U.S. patent holder should consult with a legal professional specializing in intellectual property law to explore enforcement options. Legal counsel can offer guidance on whether the activities of the Canadian company constitute infringement and what steps can be taken to protect the patent holder's rights, including potentially seeking an injunction or damages for the unauthorized use of the patented process.

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