Answers · Competitive Intelligence
A competitor just patented something we were already doing. What are our options?
Updated June 2026
The short answer
You have four realistic paths: challenge the patent with prior art, assert prior-use rights where they apply, design around the claims, or negotiate a license. Which path is open depends heavily on one date comparison: what you can document doing publicly before the patent's earliest filing date may invalidate its claims, while purely internal use points to a much narrower defense.
Sorting this out is a joint effort. Validity opinions, prior-use defenses, and any proceeding against the patent are legal work for patent counsel; the searches, claim charts, and design-around invention that those decisions run on are consulting work. ipCG is a consultancy, not a law firm.
Four paths when a competitor patents your practice
| Path | What it requires, and who does the work |
|---|---|
| Challenge validity | Dated prior art, professional searching, claim charts; proceedings via counsel. Ex parte reexam is the modest end; IPR commonly mid six figures through decision. |
| Prior commercial use defense | Documented qualifying use predating their filing; narrow statutory conditions; assessment and assertion strictly by counsel. |
| Design around | Precise claim reading plus engineering changes; often fastest and cheapest; invent-around sessions can yield new filings of your own. |
| License or coexist | Negotiation leverage from the other three paths; business terms from consultants, agreement and legal terms from counsel. |
Start with the dates and the evidence
The United States has been first-to-file since 2013, so doing it first, by itself, wins nothing. What matters is what was public before the competitor's earliest effective filing date: public activity of yours that predates their filing is potential prior art against their claims. Internal, confidential use is different territory: US law provides a prior commercial use defense for certain qualifying activity, but it is deliberately narrow and fact-dependent, and whether yours qualifies is squarely a question for counsel.
So the first 30 days are about preservation, not reaction. Collect dated evidence of what you were doing and when: release notes, invoices, shipping records, specifications, lab notebooks, archived pages. Do it before memories fade and systems get migrated, because every later option is built on this record.
The four paths, with honest costs
Challenging validity means showing the patent office or a court that the claims were not new or were obvious when filed, using your prior public activity and anything else a professional search surfaces. Proceedings range widely in cost: ex parte reexamination is the modest end, while published estimates for an inter partes review through a final decision commonly run into the mid six figures. The prior-use defense, where it applies, protects your continued operation specifically, leaves the patent standing for everyone else, and has strict conditions counsel must assess. Designing around means reading the granted claims precisely and engineering your product outside them, which is often the fastest and cheapest resolution and occasionally produces patentable inventions of its own. Licensing, finally, is sometimes the rational outcome when the patent looks solid and the redesign looks expensive: a negotiated cost beats an uncontrolled one.
These paths are not exclusive. A credible invalidity position strengthens a license negotiation; a design-around in progress caps your downside while a challenge proceeds. The expensive mistake is choosing a path before the evidence and the claim analysis are on the table.
Who does what
Patent counsel owns the legal layer: validity and infringement opinions, the prior-use analysis, any PTAB proceeding or litigation, and the license negotiation's legal terms. The analytical layer underneath is consulting work, and it is most of the total effort: prior art searching across patents and literature, claim charts mapping their claims against your product and the art, landscape context, and facilitated design-around invention. ipCG has supplied exactly this support to clients and their counsel since 1998, including structured invent-around sessions that turn a blocking claim into a redesign with its own filings.
One more honest note: ignoring a competitor's patent you know about carries legal risk that counsel should size for you. The quiet, fast move is an assessment, not a reaction or a panic.
Related questions
We were doing it first. Does that automatically invalidate their patent?
No. First-to-file law means your earlier activity only matters as prior art if it was public before their filing date, or through the narrow prior-use defense if it was internal. Whether your specific facts clear either bar is a legal determination for patent counsel.
What evidence should we preserve right now?
Anything dated: release notes, invoices, published documentation, conference materials, repository history, archived web pages, lab notebooks. Preserve originals with timestamps intact and centralize copies.
How much does challenging a patent cost?
Published estimates commonly put ex parte reexamination in the tens of thousands of dollars and inter partes review in the mid six figures through a final written decision, varying with complexity. A prior art search and claim chart, the work that tells you whether a challenge is even credible, costs a small fraction of either.
Can we just quietly keep operating?
Operating with known exposure is a legal risk decision only counsel should price for you. What we can say from the consulting side: a quiet assessment, search, claim chart, design-around options, costs little, moves fast, and converts an unknown risk into a decision.
Turn the surprise into a plan
We can run the prior art search, build the claim chart, and frame the design-around options your counsel needs to advise you. The discovery call is free and confidential.
Talk with Our TeamRelated
ipCapital Group is a consultancy, not a law firm, and nothing on this page is legal advice. Dollar figures on this page are typical market ranges for professional IP services, drawn from published sources and industry experience across a variety of providers. They are not an ipCG quote or rate card; every ipCG engagement is individually scoped and priced. See how our pricing works.
