7/25/08 Opinion - US 5th Cir.

The following published opinion was released by the U.S. Court of Appeals for the Fifth Circuit on July 25, 2008:

  • Nano-Proprietary, Inc. v. Canon, Inc. (Reavley, Benavides, Owen, JJ.; opinion by Benavides, J.) (appeal from W.D. Tex.). Affirming in part and reversing in part judgment in favor of plaintiff but awarding no damages to plaintiff in claim arising from violation of patent license agreement. Plaintiff Nano had licensed patented technology to Canon, which subsequently entered into a joint venture (”SED”) with Toshiba. Nano brought suit, claiming that Canon had violated the patent license agreement by impermissibly sublicensing to SED. The jury found in favor of Nano, but found that Nano was not entitled to any damages. The Fifth Circuit held that any sublicensing by Canon to SED did violate the licensing agreement; that, because the agreement was expressly irrevocable, termination of the license was not an available remedy; that Canon’s subsequent reorganization of SED to be 100% owned by Canon rendered the use of the license by SED not in violation of the licensing agreement; and that the district court did not abuse its discretion with regard to Nano’s fraud counts or in formulating jury instructions.

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