Justia Contracts Opinion Summaries

Biolitec, Inc. (BI), a U.S.-based subsidiary of Biolitec AG (BAG), sold medical equipment to Plaintiff AngioDynamics, Inc. (ADI) and agreed to indemnify ADI or any patent infringement claims. Patent infringement claims were subsequently brought against ADI, and ADI settled the claims. In a separate lawsuit, ADI obtained a $23 million judgment against BI under the indemnification clause. Attempting to secure payment on that judgment, ADI sued BAG, BI, and other related entities (collectively, Defendants) on claims including corporate veil-piercing and violation of the Massachusetts Uniform Fraudulent Transfers Act MUFTA), alleging that BAG looted more than $18 million from BI to move BI's assets beyond reach. The district court granted ADI a preliminary injunction barring Defendants from carrying out the proposed downstream merger of BAG with its Austrian subsidiary and from transferring any ownership interest the held in any other defendant. The First Circuit Court of Appeals affirmed, holding (1) as a matter of law, preliminary injunctive relief was not barred in this case; and (2) the district court did not err in finding that ADI had demonstrated likelihood of success on the merits and irreparable harm. View "AngioDynamics, Inc. v. Biolitec AG" on Justia Law

Klein-Becker USA and Klein-Becker IP Holdings sued Patrick Englert and Mr. Finest, Inc., for trademark infringement, copyright infringement, false advertising, and unfair competition under the Lanham Act; false advertising under the Utah Truth in Advertising Act; unfair competition under the Utah Unfair Practices Act; fraud; civil conspiracy; and intentional interference with existing and prospective business relations. The action arose from Englert's unauthorized selling of "StriVectin" skin care products: he posed as a General Nutrition Center (GNC) store to purchase the products at below wholesale rates. Englert then sold the products through eBay and other commercial web platforms, including his own, "mrfinest.com." Englert was sanctioned several times for failing to comply with court orders and discovery schedules. The third and final sanction resulted in the entry of default judgment for Klein-Becker on all remaining claims. Englert appealed the district court's entry of default judgment against him, determination of his personal liability and the amount of damages owed, grant of a permanent injunction, denial of a jury trial, and refusal to allow him to call a certain witness. Upon review, the Tenth Circuit found no fault in the district court's analysis or judgment and affirmed. View "Klein-Becker USA v. Englert" on Justia Law

DHS sued VHS for misappropriation of trade secrets, breach of contract, and trademark violations. DHS engaged VHS to market and sell the drug Provasca. After that relationship ended, VHS began to manufacture, market, and sell Arterosil, a product similar in many respects to Provasca. The court held that the district court granted DHS's request for a preliminary injunction after making sufficient findings of fact to support each element of the analysis and applying the correct legal standard to those facts. Therefore, the court affirmed the district court's grant of the preliminary injunction in full and lifted the stay of the injunction. The court remanded and directed the district court to expedite the trial on the permanent injunction and to attempt to narrow the breadth of its preliminary injunction. View "Daniels Health Sciences, L.L.C v. Vascular Health Sciences, L.L.C." on Justia Law

In 2002 Brandeberry sold his phonebook business, AMTEL, to White, who in turn sold the business to Yellowbook, a national publisher of yellow-pages directories. In 2009, Brandeberry started a rival phonebook under the AMTEL name. Yellowbook brought a trademark-infringement suit. The district court found that when Brandeberry initially purchased the rights to the AMTEL mark the rights were transferred to both him individually and his corporation; since the sale to White did not involve Brandeberry in an individual capacity, Brandeberry retained his individual rights, and White received only a non-exclusive right to use the mark. The Sixth Circuit reversed, holding that the contract transferred exclusive ownership of the mark and, even if it did not, Brandeberry’s rights were abandoned. The initial contract cannot be read to create joint ownership, and trademark law would not permit joint ownership under the facts in this case. View "Yellowbook Inc. v. Brandeberry" on Justia Law

This appeal arose out of a contract dispute between Verint and Tekelec where Tekelec sought a right to payment stemming from a patent dispute between two corporate entities not directly involved in this appeal. The district court awarded summary judgment to Tekelec and denied Verint's cross-motion for summary judgment. The court rejected Verint's claims that Tekelc lacked constitutional standing to enforce its right to the payments at issue. Because the court concluded that Verint's fixed, contractual payment obligations under the Blue Pumpkin/IEX Agreement unambiguously fell outside of the scope of the subsequent Verint/NICE Settlement's boilerplate Non-Accrual Clause, the court need not consider Tekelec's alternative argument that the disputed payments accrued prior to the effective date of the Verint/NICE Settlement. Accordingly, the court affirmed the judgment. View "Tekelec, Inc. v. Verint Systems, Inc." on Justia Law

Retro Television Network appealed the district court's dismissal of its claims against appellees, Luken and Retro Television, under Rule 12(b)(6). In 2005, Equity entered into an intellectual property agreement (IPA) with Retro Television Network. Retro Television Network subsequently sued appellees seeking royalty payments and an accounting under the IPA. Because Retro Television Network failed to allege any facts that would make Luken liable for Equity's obligations under the IPA, the district court properly dismissed its claims against Luken. The court also held that the district court did not abuse its discretion in awarding attorneys' fees. View "Retro Television Network, Inc. v. Luken Communications LLC, et al" on Justia Law

In this interlocutory appeal, Motorola appealed from the district court's preliminary injunction to enjoin Motorola temporarily from enforcing a patent injunction that it obtained against Microsoft in Germany. The underlying case before the district court concerned how to interpret and enforce patent-holders' commitments to industry standard-setting organizations (SSOs), which established technical specifications to ensure that products from different manufacturers were compatible with each other. Specifically, the case involved the H.264 video coding standard set by International Telecommunications Union (ITU), and the 802.11 wireless local area network standard set by the Institute of Electrical and Electronics Engineers (IEEE). The court held that, under the unique circumstances of this case, the district court's narrowly tailored preliminary injunction was not an abuse of discretion. Accordingly, the court affirmed the judgment. View "Microsoft Corp. v. Motorola, Inc., et al" on Justia Law

in this trade secret misappropriation and breach of contract case, defendant Chance Mold Steel Co. (Chance) appealed from a permanent injunction and from a jury award of damages. The injunction, based on a finding of contract breach, prohibited Chance from selling, displaying, manufacturing, or assisting others in manufacturing a number of ergonomic computer mouse products. The injunction barred sale of specific products that were materially identical to products Chance had previously manufactured for Contour Design, Inc. (Contour) and a new product known as the ErgoRoller. Chance challenged the scope of the injunction and contended that the jury improperly awarded lost profits damages. The First Circuit Court of Appeals (1) reversed the injunction as applied to the ErgoRoller, holding that the record did not support the finding that Chance breached the contract in producing the ErgoRoller; (2) affirmed the scope of the injunction as applied to the other enjoined products; and (3) affirmed the damages award. View "Contour Design, Inc. v. Chance Mold Steel Co., Ltd." on Justia Law

Plaintiff, the host of a nationally syndicated radio show and the author of several books, appealed an adverse judgment in his suit against various defendants for copyright infringement, breach of contract, and tortious interference. Defendants cross-appealed the denial of attorneys' fees. Because the court agreed that the facts of this case supported the creation of an exclusive license as to the first work at issue, and an implied nonexclusive license as to the second work at issue, the court affirmed the jury's verdict that defendants did not infringe on plaintiff's copyrights. The court rejected the remaining challenges to the district court's judgment and affirmed in all respects. View "Baisden v. I'm Ready Productions, Inc., et al." on Justia Law

This action arose from a technology-sharing relationship between companies engaged in the manufacture of industrial "sand-core" pipe for water and sewer applications. In 2002, the parties entered into an agreement whereby Plaintiffs agreed to provide Defendant with their technology for more efficient manufacturing sand-core pipe in exchange for data, reports, software, and other information developed by Defendant through use of Plaintiffs' process. Over time, the relationship between the parties disintegrated. As a result, in 2009, Plaintiffs brought this action asserting breach of contract and other causes of action related to Defendant's alleged nonperformance under their agreement. The Chancery Court dismissed Plaintiffs' claims for breach of contract, as well as claims under California Uniform Trade Secrets Act and for common law misappropriation, finding the claims were barred by laches. View "Petroplast Petrofisa Plasticos S.A. v. Ameron Int'l Corp." on Justia Law