Patent Infringement
Divided Infringement
When multiple parties together perform all steps of a patented method — but no single party performs them all alone.
Akamai Standard (Fed. Cir. 2015 en banc)
Direct infringement under § 271(a) requires either direction or control over another party's performance of claimed steps, or a joint enterprise between parties collectively performing all steps.
Two Paths to § 271(a) Liability
Direction/Control and Joint Enterprise
Direction or Control
"One party directs or controls another's performance of the claimed steps"
How to establish
- Actual master-servant or agency relationship
- Party conditions access to a benefit on the other performing the steps
- Party conditions participation in an activity on performance of steps
Example
A company's cloud service conditions user access on users performing certain method steps (Akamai: server conditions content delivery network access on steps users perform)
Akamai Techs. v. Limelight Networks (Fed. Cir. 2015 en banc)
Joint Enterprise
"Multiple parties act as a joint enterprise with common purpose and equal right to control"
How to establish
- Agreement — explicit or implied — to pursue a common purpose
- Common pecuniary interest in the combined activity
- Equal right (not necessarily exercised) to control the enterprise
- Mutual agency between parties
Example
Two companies contractually agree to provide a joint service where each performs defined method steps, shares revenue, and participates in joint product decisions
Restatement (Second) of Torts § 491 cmt. b (joint enterprise elements)
FAQ
What is divided infringement?
Divided infringement (also called joint infringement) occurs when the steps of a patented method claim are performed by two or more parties rather than by a single entity. Under 35 U.S.C. § 271(a), direct infringement of a method claim requires that a single entity — or parties acting under direction or control of one entity — perform all steps of the claimed method. If Party A performs steps 1–3 and Party B performs steps 4–6, neither party alone directly infringes the claim. Divided infringement is a significant patent enforcement problem because method claims covering distributed systems (internet protocols, cloud services, user-initiated steps) often involve multiple independent actors, each performing only part of the claimed method.
What did Akamai v. Limelight establish about divided infringement?
Akamai Technologies, Inc. v. Limelight Networks, Inc. (Fed. Cir. 2015 en banc): The Federal Circuit, sitting en banc, held that liability for divided infringement under § 271(a) requires one of two showings: (1) DIRECTION OR CONTROL — one party directs or controls the other party's performance of the claimed steps; this requires either a formal master-servant relationship (actual control) OR the party condition the participation of the other party or the receipt of a benefit on performance of the method steps; (2) JOINT ENTERPRISE — the parties act as a joint enterprise (joint purpose, equal right to control, financial interest) — essentially a common law joint venture standard. Prior law (Muniauction, Fed. Cir. 2008) had held a stricter standard (agency or contractual obligation required); Akamai relaxed this by allowing 'conditioning participation or receipt of a benefit' to constitute direction or control. Practical example: a company that provides a service but relies on users performing certain steps can be liable under § 271(a) if it conditions users' access to the service on their performance of those steps.
Can induced infringement (§ 271(b)) reach divided infringement scenarios?
Yes — induced infringement (§ 271(b)) can be an alternative route when direct infringement under § 271(a) is not provable for divided infringement scenarios. Limelight Networks, Inc. v. Akamai Technologies, Inc. (S.Ct. 2014): The Supreme Court held that induced infringement under § 271(b) requires that there be an underlying act of direct infringement by a single party. If no single party directly infringes (because steps are divided), there can be no induced infringement either. This ruling, combined with the en banc Akamai (2015) which relaxed the § 271(a) standard, means the direction-or-control or joint-enterprise analysis must be resolved at the § 271(a) level — § 271(b) cannot independently cover divided infringement without an underlying § 271(a) direct infringer.
How can patent applicants draft claims to avoid divided infringement problems?
Drafting strategies to minimize divided infringement vulnerability: (1) SINGLE-ENTITY SYSTEM CLAIMS — instead of (or in addition to) method claims, draft system or apparatus claims that can be infringed by a single entity that deploys the system, even if end users interact with it; (2) SERVER-SIDE FOCUS — if a cloud service provider performs all steps, draft claims from the server's perspective, avoiding claim elements that require user action to perform; (3) 'CAUSING' LANGUAGE — 'causing [a user to perform step X]' may be construed as the server-side actor performing the step by causing it; (4) CLAIM THE PROVIDER ALONE — identify the specific steps performed by the service provider and claim those, leaving user steps out of the claim; (5) SYSTEM CONFIGURATIONS — claim the configured system (e.g., 'a system configured to provide X, receive Y from a user, and perform Z') — making the system/network deployer the potential infringer. Ultimately, the best protection is claims that one entity performs entirely, but for distributed systems this often requires careful drafting.
What is the difference between divided infringement and joint infringement?
The terms 'divided infringement' and 'joint infringement' are often used interchangeably, but there is a technical distinction in usage. DIVIDED INFRINGEMENT: more commonly used to describe the general problem where no single entity performs all steps of a method claim. JOINT INFRINGEMENT: sometimes used specifically to refer to the liability theory where multiple parties are held jointly liable because one directs or controls the other, or they act as a joint enterprise — i.e., the analysis under Akamai. Both terms describe scenarios where multiple parties collectively perform a patent claim's elements. In either case, the court must find a sufficient legal relationship between the parties (direction/control or joint enterprise) to attribute all steps to one entity for § 271(a) direct infringement purposes.
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