The Harrisburg-based company which makes Huggies diapers is fighting for its patents and defending itself against claims that it is monopolizing the disposable diaper industry.
Kimberly-Clark Worldwide sued bargain-diaper manufacturer First Quality in March 2009, alleging that the discount diapers made by First Quality violated Huggies' patents. In April, First Quality filed a countersuit, arguing that the Pennsylvania company was attempting to monopolize the business. Now, it appears both disputes may be decided at trial.
A federal judge has analyzed the differences between two different types of diapers in an effort to determine whether First Quality's infringed the patents held by Kimberly-Clark. At issue is the use of elastic across the crotch area of the diapers, and whether First Quality diapers can be said to have this element since a large portion of the elastic on their diapers is severed.
The judge -- in an 11-page opinion --could not definitively answer this, and he said that the case should be decided by a jury.
Patent protection affords exclusive rights to the patent-holder. Whether a patent infringement is intentional or inadvertent, the infringer is potentially liable.
However, the federal judge has also ruled that First Quality's monopoly claim can proceed, stating that there is reason to believe Kimberly-Clark may be engaged in anticompetitive conduct under the Sherman Act.
The Sherman Act is a federal statute on competition law which prohibits certain business activities that reduce competition.
If the parties do not settle in the meantime, a jury will decide whether First Quality diapers do infringe on the patents of Kimberly-Clark's, and whether Kimberly-Clark is simply using its patents to disrupt competitors with costly lawsuits.
Going to trial is sometimes the most expensive and ineffective means to resolve a business issue. Often, mediation and arbitration is the best way to arrive at satisfactory resolutions, but sometimes litigation is the only way to resolve a dispute.
Source: Courthouse News Service, "Diaper Giants Head to Trial on Patent Claims," Reuben Kramer, Feb. 3, 2012




No Comments
Leave a comment