The Court May Find the Patent in Suit Invalid in an Infringement Case, the Supreme Court Says



On April 11, 2000, the Supreme Court rendeded a judgment affirming a Tokyo High Court judgment that had found the patent in suit invalid in an infringement case.

Originally, the complaint was filed by Fujitsu against TI seeking a declaratory judgment of non-infringement. At the first instance, the Tokyo District Court found no infringement because an element recited in the claim was missing in the accused device. The appellate court, that is, the Tokyo High Court, found no infringement, either, but on different grounds. After it said that another element was missing in the accused device, it added that TI could not enforce the patent against Fujitsu because it was invalid.

In the appeal filed by TI, the Supreme Court ruled that a court deciding the question of patent infringement may find the patent in suit invalid even if there is no decision by the Patent Office invalidating it.

Under the Japanese Patent Law, only the Patent Office has authority to declare a patent invalid, and an accused infringer believing that the patent in suit is invalid usually files a petition for invalidation with it. When such a petition is filed, the court deciding the question of infringement may stay the prceedings at its discretion. In the past, it was the practice that the defendant should not directly use the invalidity defense before the court.

However, the Supreme Court ruled that a party that was interested only in defending him/herself, but not in absolutely invalidating the patent, should be allowed to raise the question of invalidity before the court without filing a petition for invalidation with the Patent Office. When such a question is raised, the court must examine whether there is a clear reason why the patent should be invalidated. If it is convinced that any reasonable appeal board examiner of the Patent Office should find it invalid, it may dismiss the patentee's claim based on the doctrine of abuse of right.

After this ruling by the Supreme Court, lower courts are quite positive in taking up the question of invalidity in infringement cases. Because of this new trend, the author expects that claim interpretation by the courts will be more and more liberal. The Japanese courts' narrow claim interpretations that foreign practitioners criticized much in the past were largely a result of avoiding declaring them invalid.