Limelight Networks, Inc. v. Akamai Technologies, Inc.
134 S. Ct. 2111
| SCOTUS | 2014Background
- Akamai holds an exclusive license to a patent (U.S. No. 6,108,703) claiming a multi-step method for delivering web content via a content delivery network (CDN); one claimed step is "tagging" by which content providers designate content to be cached.
- Limelight operates a competing CDN and performs several claimed steps but requires its customers (content providers) to perform the tagging step themselves; Limelight provides instructions/assistance but does not do the tagging.
- Akamai sued Limelight for patent infringement; a jury found infringement and awarded damages, but the decision was affected by the Federal Circuit’s Muniauction decision requiring attribution of all method steps to a single party for direct infringement under §271(a).
- A Federal Circuit panel held Limelight did not directly infringe because it did not direct or control customers’ tagging; on rehearing en banc the Federal Circuit reversed on inducement grounds, concluding inducement liability under §271(b) can exist even if no single party directly infringed under §271(a).
- The Supreme Court granted certiorari on whether inducement liability under §271(b) can be imposed when no one has directly infringed under §271(a), and unanimously reversed the Federal Circuit: inducement requires actual direct infringement by someone.
Issues
| Issue | Plaintiff's Argument (Akamai) | Defendant's Argument (Limelight) | Held |
|---|---|---|---|
| Whether a defendant can be liable for inducing infringement under 35 U.S.C. §271(b) when no one has directly infringed under §271(a) | Limelight induced infringement by performing some steps and encouraging customers to perform the rest; inducement can be based on encouraging a third party even if no single actor is a direct infringer | Inducement requires predicate direct infringement by someone; Muniauction means no single party performed all steps, so no direct infringement occurred | Reversed Federal Circuit: inducement under §271(b) requires that someone have directly infringed under §271(a) (or another statutory provision); without direct infringement, no inducement liability. |
Key Cases Cited
- Aro Mfg. Co. v. Convertible Top Replacement Co., 365 U.S. 336 (establishes that inducement/contributory liability is predicated on direct infringement)
- Muniauction, Inc. v. Thomson Corp., 532 F.3d 1318 (Fed. Cir. 2008) (held direct infringement requires attribution of all method steps to a single party)
- Deepsouth Packing Co. v. Laitram Corp., 406 U.S. 518 (refused to extend contributory liability where direct infringement did not occur)
- Global-Tech Appliances, Inc. v. SEB S.A., 563 U.S. 754 (discussed scienter and inducement principles in patent law)
- Warner-Jenkinson Co. v. Hilton Davis Chemical Co., 520 U.S. 17 (each claim element is material to the claimed invention)
