Supreme Court Holds No Liability for Induced Infringement Without Direct Infringement in Limelight Networks, Inc. v. Akamai Technologies, Inc., et al.

In an opinion authored by Justice Alito on June 2, 2014, the U.S. Supreme Court in Limelight Networks, Inc. v. Akamai Technologies, Inc. rejected the Federal Circuit's standard for determining whether a defendant is liable for inducing infringement under 35 U.S.C. § 271(b). Akamai is the exclusive licensee of a patent that claims a method of using a content delivery network (CDN). Limelight also operates a CDN and carries out several of the method steps claimed in the patent, but Limelight's customers rather than Limelight itself carry out the remaining method steps claimed in the patent. The case turned on whether Limelight could be liable for inducing infringement of the patent even if no one was liable for direct infringement.

The district court concluded that Limelight could not have directly infringed the patent because the method steps performed by Limelight's customers could not be attributed to Limelight. An en banc Federal Circuit reversed, concluding that a defendant who performs some steps of a method patent and encourages others to perform the rest could be liable for inducing infringement even if no one was liable for direct infringement.

The U.S. Supreme Court disagreed, holding that liability for inducement must be predicated on direct infringement, citing Aro Mfg. v. Convertible Top Replacement Co., 365 U.S. 336, 341. If direct infringement has not occurred, meaning if all of the claimed method steps are not attributable to any one person, then there can be no inducement of infringement. The Supreme Court reversed and remanded the case.

Source: Limelight Networks, Inc. v. Akamai Technologies, Inc., et al., 572 U.S. ___ (2014), available at: http://www.supremecourt.gov/opinions/13pdf/12-786_664d.pdf

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