Is Patent Infringement a Crime in California? 2024

Our clients frequently ask our law firm, “Is patent infringement a crime in California?”

Patent rights fall under the umbrella of intellectual property rights in California. Individuals and businesses that patent new inventions have the right to profit from their innovations. Violators of patent laws can face civil consequences and even more serious penalties if criminal acts are involved.

Cases Where Patent Infringement Could Violate Federal White-Collar Criminal Laws

Patent infringements are typically a civil matter in California and are handled through federal courts. When someone or a business believes that their patent is being infringed upon, the process for addressing those violations typically involves:

• Gathering evidence
• Consulting a patent attorney
• Sending a cease-and-desist letter
• Negotiating a settlement

If those steps fail to remedy the matter, the next step may be to file a civil claim to seek damages from the at-fault party.

Less commonly, patent infringement could lead to criminal penalties in cases where the infringement is part of broader criminal activity, like fraud or counterfeiting. One example would be if someone produces counterfeit goods that infringe on a patent. In those cases, the person who engages in that behavior could be charged under federal laws related to counterfeiting and fraud.

Anyone who knowingly imports goods that infringe on a U.S. patent could be investigated by the International Trade Commission (ITC). If the investigation finds that the imports violate federal criminal laws, the importer could be charged with a federal white-collar crime if the infringement is part of broader fraudulent activities.

Common Examples of Patent Infringement in California

Patent infringements can take many forms, but some situations are more common than others. Here are some fairly common situations that our clients have run into:

• Manufacturing Products Without Permission: When a company makes and sells a product that is patented by another business, this can lead to a patent infringement case. One remedy for this situation would be for the company to obtain a license or permission to manufacture the patented product.
• Selling Products Without Authorization: Patent protections often go beyond manufacturing rights. If a company sells a patented device or product or distributes it, the company that engages in those unauthorized acts could be infringing on federal laws.
• Importing Patented Products: Companies that import patented products into this country without the patent holder’s consent could be in violation of patent laws. These types of issues are more common with companies that engage in international trade.
• Using Patented Processes Without Permission: Certain processes and methods can be patented. If another company uses those processes without permission or the proper license, the manufacturing of the product could be seen as a violation of patent law.

No matter what type of patent law violation occurred, you can hire a patent lawyer to review your case and take legal action to stop the acts of patent law infringement. Defendants who are falsely accused of violating federal patent laws can also hire a patent lawyer to defend their rights.

How Can a Patent Attorney Help Me?

An experienced patent attorney can litigate on behalf of an individual or business that owns the rights to a particular patent. By investigating the claim of patent infringement and notifying the party that is violating that patent, a business litigation lawyer can work to quickly stop the infringements on your patent and seek compensation for your losses.

If needed, a patent attorney can file a claim in federal court to stop the acts of infringement. A successful claim can result in compensation for the party whose patent rights were violated.

A patent attorney can also defend individuals and businesses from accusations of patent infringement. Patent law is complex, and individuals who are accused of violating patent protections are not always guilty of doing anything unethical or unlawful. Those arguments may need to be made before a judge or jury in some cases. An experienced business law attorney can explain the defendant’s position in simple and clear terms.

Patent Infringement FAQs

Q: Can Patent Infringement Be Criminal?

A: Patent infringements can be tied to broader criminal acts, like fraud and counterfeiting. If federal criminal laws are violated, the person who committed those acts can be prosecuted in federal courts. If you were recently charged with a federal white-collar crime tied to patent law violations, you can hire a patent attorney to defend you in court.

Q: What Are the Consequences of Patent Infringement?

A: In most cases in California, patent infringements are civil matters, so there would be no jail time involved. Civil cases can lead to court orders for defendants to pay compensation to plaintiffs and other penalties. When a defendant is found liable for patent infringement, they are commonly ordered to pay for the financial losses that they caused for the business that holds the patent.

Q: How Serious Is Patent Infringement?

A: Patent infringement is always a serious matter. Even in cases where the violations are civil matters only, there can be significant financial penalties for companies that engage in patent law violations. If the violations are found to be tied to counterfeiting, fraud, or other federal crimes, the individuals who engaged in those unlawful acts can be prosecuted in criminal court. The criminal penalties for anyone found guilty of fraud or a related crime could include heavy fines and confinement to prison.

Q: What Are the Penalties for Infringement on Patents?

A: The penalties for patent law infringement vary widely but often include fines. When one company or a person violates patent law, those acts are often financially harmful to the companies that hold the patents. The courts often require the defendants to pay restitution for their violations of patent law. In certain cases, patent law violations could be tied to criminal acts like fraud.

Schedule Your Patent Infringement Consultation Today

Whether you are seeking to compel another person or business to cease violating your patent rights or were falsely accused of violating patent laws, you need legal representation you can trust.

Peterson Watts Law Group, LLP, always makes sure that your interests come first. Our attorneys can keep you closely involved and updated about your case so you are always well-informed on how it is progressing. To schedule your patent law consultation, contact our office today.