Forum Moderators: buckworks
Business B is a wholesaler buying from business A and selling to smaller shops (business C).
Business C buy from business B and sell "product" to the final consumer.
Now business "BIG" find item "product" to be an infringement of one of their patents.
Who will they go after? How deep will they go in the chain and who will most like have to pay for business "BIG"'s lost sales?
They can go after all businesses, including the ones off-shore. The question is - how expensive will it get for them, so how likely it is...
Presuming business B wholeseller, and business C distributor are in the USA, and manufacturer C in China - They would go after both B and C, and maybe A.
Presuming business A manufacturer and B wholeseller are off-shore, and business C distributor is in the USA - They would go after C, and maybe business A manufacturer and B wholeseller.
Often businesses make "examples" of distributors, which have much bigger impact, since the wholeseller will not be able to find vendors to push their products. It is also makes legal sense, because business C types cannot efford extended legal battle (could you?)
You definitely need to discuss this with your retained law firm. What?! You don't have one?! Then you cannot afford to be selling products that are infringement of one of their patents!
(I am not a lawyer, I just ran over one last night.)
I am business B and I knew it was a look-a-like product, but I was not aware of the patent.
I do not know how to avoid situations like this. I have so many products comming and going.
Think about it - if GM makes a car with patent infringing products, who gets sued? GM, or the car dealer?
Of course - with lawyers you never know..
Again, do get a lawyer - if you feel uncomfortable. I take a hot shower and use a loofa, after meeting with them, but if you pay them enough they will protect you from the rest of the jackals.
