Monday, October 6, 2014

Intra-Corporate Patent Licenses Not Relevant to Hypothetical Negotiation

The court denied plaintiff's motion to compel defendants to produce their intra-corporate patent licenses with their subsidiaries. "According to [plaintiff], the intra-corporate licenses are comparable to the hypothetical license in this case because the negations for these licenses were done at 'arms’ length' and represent the true value of the intellectual property conveyed in those licenses. The Court disagrees. The intra-corporate licenses transferred considerably more intellectual property rights than those involved in the hypothetical license in this case, causing a fundamental disparity in both the value and nature of each license. . . . Moreover, the intra-corporate license negotiations, which took place between a parent company and a subsidiary, involved markedly different considerations and bargaining positions than the hypothetical negotiation between [defendant] and [plaintiff], two competitors. . . . [T]he intra-corporate licenses are not comparable or relevant."

Telebuyer, LLC v., Inc. et al, 2-13-cv-01677 (WAWD October 2, 2014, Order) (Rothstein, J.)

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