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Defendants in infringement cases can ask for declaratory judgment as a counterclaim. A counterclaim of infringement is a compulsory counterclaim to a claim for declaratory judgment of non-infringement.
Declaratory relief refers to a court's declaratory judgment stating the rights of parties without ordering any specific action or listing awards for damages.
"Limitations statutes do not apply to declaratory judgment suits, as such, because a declaratory judgment action is a mere procedural device by which various types of substantive claims may be asserted." Dehoff v. Attorney General, 564 S.W. 2d 361, 362 (Tenn.
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 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.
Thus, a declaratory judgment action that is nothing more than an anticipatory defense to a breach of contract claim may be an inappropriate use of the declaratory judgment mechanism. Given that courts have discretion whether to entertain a declaratory judgment action, they may decline to do so under such circumstances.
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.
A declaratory judgment is a binding judgment from a court defining the legal relationship between parties and their rights in a matter before the court. When there is uncertainty as to the legal obligations or rights between two parties, a declaratory judgment offers an immediate means to resolve this uncertainty.