Thursday, April 30, 2009

Substantial Controversy Exists at Pleading Stage Despite Defendant's Written Disclaimer of "Present Intent" to Terminate Underlying License Agreement

Plaintiff's "allegation that if [plaintiff] cease[d] making royalty payments under [a license agreement], ' [defendant] would bring suit against [plaintiff] for infringement and injunctive relief” was sufficient to create a substantial controversy at the pleading stage even though defendant "advised [the declaratory judgment plaintiff] in writing that [defendant] did not 'presently intend' to terminate [a license agreement]."

Fortinet, Inc. v. Trend Micro Inc., 3-08-cv-05371 (CAND April 28, 2009, Order)

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