After DataTern Inc. accused dozens of SAP AG and Microsoft Corp. customers of patent infringement, the two companies sprang into action and used declaratory judgment actions to knock out DataTern’s patents in 2012. The U.S. Court of Appeals for the Federal Circuit blessed that tactic on Friday, but with some reservations.
In a 27-page ruling, a three-judge Federal Circuit panel ruled that DataTern’s litigation threats against SAP customers gave the software giant jurisdiction to respond with a declaratory judgment action. The court handed Microsoft a less forceful endorsement, finding that it could only challenge one of the two DataTern patents at issue.
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