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A declaratory judgment is legally binding and has the same result and power than a final judgment. These judgments are also known as a declaration or declaratory relief.
A counterclaim of infringement is a compulsory counterclaim to a claim for declaratory judgment of non-infringement. If a patent owner fails to assert an infringement counterclaim in a declaratory-judgment non-infringement suit, the patent infringement claim will be deemed waived.
For example, a policyholder believes that their denied claim is unjust. As a result, they inform the insurer that they are considering a lawsuit to recover losses. The insurer seeks a declaratory judgment to clarify its rights and obligations with hopes of preventing the lawsuit.
A declaratory judgment is typically requested when a party is threatened with a lawsuit but the lawsuit has not yet been filed; or when a party or parties believe that their rights under law and/or contract might conflict; or as part of a counterclaim to prevent further lawsuits from the same plaintiff (for example, ...
The declaratory judgment would clarify the parties' rights and obligations under the insurance policy. It could guide future actions related to the claim.
For example, a declaratory judgment action could be brought to determine party rights and obligations under a contract or to establish the validity of a patent. Under Article III of the U.S. Constitution, a federal court may only issue a declaratory judgment when there is an actual controversy.
So what is a "declaratory judgment" lawsuit? This answer is this: It's a lawsuit that a plaintiff files in which the plaintiff asks the court to "declare" through issuance of a "declaratory judgment" what the respective rights of the parties are.
A plaintiff seeking declaratory relief must show that there is an actual controversy even though declaratory relief will not order enforceable action against the defendant. An actual controversy means there is a connection between the challenged conduct and injury, and redressability that the court could order.