ARTICLE
15 November 2016

The Halo Effect: Threading Carefully To Minimize Damages From Patent Infringement

FH
Finnegan, Henderson, Farabow, Garrett & Dunner, LLP

Contributor

Finnegan, Henderson, Farabow, Garrett & Dunner, LLP is a law firm dedicated to advancing ideas, discoveries, and innovations that drive businesses around the world. From offices in the United States, Europe, and Asia, Finnegan works with leading innovators to protect, advocate, and leverage their most important intellectual property (IP) assets.
The smart textile industry continues to respond to customer interest in interactive fabrics that meet a variety of needs...
United States Intellectual Property

The smart textile industry continues to respond to customer interest in interactive fabrics that meet a variety of needs, including the monitoring of athletic performance and the improvement of tissue reconstruction. This growth drives new approaches to solve problems, pushing the textile industry to draw on advancements made in other technologies. For example, BAE Systems, based in the United Kingdom, introduced a smart fabric vest earlier this summer for the military market; the vest is made from conductive yarns that can charge and power electronics via a USB port, alleviating the clutter of wires, cables, battery packs and other impracticalities that can hamper soldiers in the field.

Combining different technologies in nontraditional manners can present legal challenges for companies. Smart textile companies are encountering complex landscapes that must be analyzed for potential claims of patent infringement before introducing new products to the market. While assessing the risk for infringement exposure is commonplace in valuing any new project, a recent decision by the Supreme Court, Halo Elecs., Inc. v. Pulse Elecs., Inc., 136 S. Ct. 1923 (2016), creates a greater potential for increased damage claims, affecting how businesses approach this step in the valuation process. In particular, it may be of increased importance for businesses to take timely and meaningful action—albeit sometimes expensive—to assess and address potential infringement issues prior to product launches. In this article, Finnegan attorneys  Mareesa A. Frederick and  Clara N. Jimenez discuss the effects of Halo on damages in patent infringement cases in the textile industry.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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