False Patent Marking May Lead to the Fall of a Giant Chemical Company

Here is an often asked doubt, why giant suppliers are more frequently sued for wrong marking on expired patent products? And didn’t they know the consequences?

How should they don’t know they are breaking rules? They just risk to benefit furtherly from the patent they had. As from the very beginning of developing a chemical to its patent claim, then to marketing, there is a huge expense. To cover the cost and support new researches, patented chemicals are usually sold at a relatively higher price. It’s a general rule in the field and in front of profit, and also understandable. Fortunately, such cases less appear or at least are less presented in public.

As patent can’t be renewed, an expired patent goes to the public and the part that registered the patent doesn’t have exclusive right for the patent anymore, then every company with the ability to manufacture or sell it can do the business.

In 2010, Sigma Aldrich alone was sued for 7 patent expired chemicals labeled with patent information. For consumers who have no idea about if their patent is expired or don’t care the patent matter at all, they might spend more than the average market price to buy the chemicals. Patent issue is critical for a giant company to make profit, thus it can be considered as the end of money cutter for an exclusive chemical.

Once it was revealed that a chemical is false patent marking, the fine will be calculated in accordance with the number or amount of the products. The more the product is sold the more the fine will be. Take a lawsuit happened to Sigma Aldrich in 2010 for example. About $500 was required for each offense, which may mean each individual selling. Thus the total fine is substantial and it’s probably to bring great financial changes to even a giant chemical supplier that takes an important role in the field.

Also in 2010, another giant chemical supplier in the field, Thermo Fisher was sued for five patent expired products (not all of them are chemicals), one of the five products had expired early in 1998. In the past ten years from 2010, the company sold the products with marking of patent. The fine they finally submitted for the law breaking behavior might trigger a lot of attention then.

To protect the general public’s profit in applying related products, false patent marking activities are not allowed in every area. Chemical industry due to its specialty can greatly influenced by the price of a single chemical in final cost.

Once the patent of a chemical get expired, the "monopoly" situation of the chemical will end. With the participance of small chemical suppliers, the previously patented chemicals can be provided at lower prices and better quality. Thus the expiry of a certain chemical will bring new business opportunities and researches budget may be greatly decreased, which is win-win to both suppliers and consumers.

BOC Sciences, as a medium-sized chemical supplier in the field, is conceiving a plan to establish a platform where the chemicals that will expire soon can be checked with our partners to better develop our business in providing cost-effective chemicals. With the cooperation of a website, we have already finished the job for first two such chemical-triheptanoin and picaridin. And the process is quite smooth. Hope the project can be launched soon.

Summary

False patent marking may lead to serious result and several big companies had been sued and fined for such issues. However, expired patent is supporsed to bring more choices to customers and provide small businesses with more opportunities.

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