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I have invented US Patent 07909076 . I have a an infringer on claim 1. Not only has the infringer been making and selling the system/product, but he has been advertising "Patent applied" and recently "Patented". The infringer has also applied for a patent which was rejected on all 7 claims for reading on mine. I have informally asked if he would like to use my patent as protection for what he's building and selling in order to limit how much to spend on the lawyers.He has stated that he is uninterested and believes he is doing something different. My question is ; If I draft the demand letter meticulously stating how he is infringing on my claim and what I want him to do and when, and send to his attorneys , will that legally satisfy my obligation to put him on notice ?I mentioned I had spoke with the infringer about how he's infringing. Does this constitute as will full infringement if I have records of the discussions? Does Filing an application that is rejected because it reads on my claims and cites my patent in his constitute "will full Infringement" in my case?

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You should talk to an attorney. See Is It Possible to Notify Small Infringers With An Informal Letter and Avoiding Declaratory Judgment When Sending Licensing/Cease&Desist Letters

You should discuss with your attorney if competitor's prior knowledge of your patent would lead to a willful infringement claim (see this article on a recent Supreme Court decision).

Definitely don't explain your claim and reason why you your competitor infringes on your claim. Everything you said can and will be used against you. Let your attorney do it.

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