The cash a company receives in a settlement to offset damages it owes to another company qualifies as monetary damages, the U.S. Court of Appeals for the Third Circuit has ruled in a split precedential decision. In issuing the opinion, the appellate court reversed a U.S. District Court for the District of Delaware decision denying the claims of inventor G. David Jang that Boston Scientific Corp. violated an agreement to share with him any damages it recovered from patent litigation.
"The real question is whether that gain qualifies as a 'recovery,'" said Judge Dolores K. Sloviter on behalf of the majority. "We see no reason why it should not; it makes no difference to BSC's bottom line whether it receives a check for the Jang infringement claim or reduces its debt by the same amount. The fact that BSC obtained a right to damages, and then regained the value of its lost profits through settlement, should be sufficient to demonstrate a 'recovery.'"
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
