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Expert Analysis

Closing The Offshore Gov't Patent Infringement Loophole

Law360, New York (March 30, 2012, 1:50 PM EDT) -- On March 14, 2012, the Federal Circuit issued its much-anticipated decision in Zoltek v. United States and Lockheed Martin Corporation ("Zoltek V").[1] Somewhat surprisingly, the court sua sponte en banc vacated its earlier holding in Zoltek v. United States ("Zoltek III")[2] that direct infringement under 35 U.S.C. § 271(a) was a predicate for government liability under 28 § U.S.C. § 1498(a). The panel also found that Lockheed's actions created government liability under § 1498(a). Thus, the Federal Circuit closed the offshore loophole from its Zoltek III decision and allowed Zoltek to proceed with its § 1498(a) claim against the United States....

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