Transfer of Operations to Parent Entity Without Corresponding Transfer of Patent Rights Precludes Lost Profits

Defendant's motion for summary judgment of no lost profit damages was granted in part. "After [plaintiff's parent's] acquisition of [plaintiff], [plaintiff] operations were transferred to [its parent]. [Plaintiff] is still in existence and has consolidated financial statements; however, the business expenses incurred to produce the [products and services at issue] are now incurred by [the parent]. . . . [Plaintiff] has not assigned the patent-in-suit to [its parent] nor granted a license to [its parent]. This evidence establishes that, since the stock acquisition and restructuring of operations, as a matter of law, these profits and losses are, in effect, the profits and losses of [the parent], a non-party. . . . [Plaintiff] cannot recover lost profits after the date [its] operations . . . ceased. The precise date when this occurred is a question of fact for the jury to decide."

Duhn Oil Tool Inc. v. Cooper Cameron Corporation, 1-05-cv-01411 (CAED January 24, 2011, Order) (Wanger, J.).