High court ruling limits international reach of patent laws
Legal Events
The Supreme Court on Wednesday sided with California-based Life Technologies Corp. in a patent infringement case that limits the international reach of U.S. patent laws.
The justices ruled unanimously that the company's shipment of a single part of a patented invention for assembly in another country did not violate patent laws.
Life Technologies supplied an enzyme used in DNA analysis kits to a plant in London and combined it with several other components to make kits sold worldwide. Wisconsin-based Promega Corp. sued, arguing that the kits infringed a U.S. patent.
A jury awarded $52 million in damages to Promega. A federal judge set aside the verdict and said the law did not cover export of a single component.
The federal appeals specializing in patent cases reversed and reinstated the verdict.
Patent laws are designed to prevent U.S. companies from mostly copying a competitor's invention and simply completing the final phase overseas to skirt the law. A violation occurs when "all or a substantial portion of the components of a patent invention" are supplied from the United States to a foreign location.
Writing for the high court, Justice Sonia Sotomayor said the law addresses only the quantity of components, not the quality. That means the law "does not cover the supply of a single component of a multicomponent invention," Sotomayor said.
Only seven justices took part in the ruling. Chief Justice John Roberts heard arguments in the case, but later withdrew after discovering he owned shares in the parent company of Life Technologies.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.