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Stay vigilant: Broadly drafted settlement agreements can doom current and future infringement claims | Thompson Coburn LLP


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In a recently issued opinion by the Court of Appeals for the Federal Circuit, a claim for infringement against a defendant was found to be barred by their acquisition of a second defendant’s business after the second defendant settled.
Oyster Optics LLC is a patent assertion entity who has asserted, at various times, patents directed to telecommunication systems. Initially, Oyster sued Coriant, but later settled their litigation. Shortly thereafter, Infinera, another Oyster defendant, acquired Coriant. Infinera then moved to dismiss Oyster’s claims because of the license in the settlement agreement. That motion was granted by the Eastern District of Texas and affirmed by a divided panel of the Federal Circuit. ....

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