Covenant Not to Sue

News & Analysis as of

Federal agencies attack employment agreements, and what you can do about it: 8 steps to consider

The US Securities and Exchange Commission recently caused shockwaves when it announced its first enforcement action against a company for using an allegedly improper confidentiality agreement during internal investigations....more

Attorney Fee Motions Are Denied

Two business days before a hearing on claim construction and summary judgment, plaintiff provided defendants with covenants not to sue, without compensation. All claims and counterclaims asserted by plaintiff were dismissed...more

Myriad Throws in the Towel

In the aftermath of the Supreme Court's decision in AMP v. Myriad Genetics in 2013, Myriad (paradoxically to those either not paying attention or who over interpreted the scope of the Court's holding in its opinion) filed...more

If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.

In the not too distant past, there was a school of thought that a covenant not to sue (CNTS) had a different legal effect than a patent license in the US. Differences I frequently heard included a CNTS does not run with the...more

Motion for Rule 11 Sanctions Denied After Plaintiff Granted Defendants Covenant Not to Sue Where Plaintiff Attempted to Make an...

Phoenix Modular Elevator, Inc. ("Phoenix") filed a complaint for patent infringement against T.L. Shield & Associates, Inc. ("Shield") and Modular Elevator Manufacturing, Inc. ("MEM"). The patent at issue, United States...more

Federal Court Dismissal of EEOC Suit Leaves Employers Hanging

In a closely watched ruling, an Illinois federal district court handed a victory to one particular employer, but ducked a broader ruling that would have provided general guidance to companies generally that are trying to...more

Time To Reconsider The Assignability Of Certain Claims

If an insurance company refuses to settle a claim, once liability has become reasonably clear and there is an opportunity to settle within limits, the defending insurer runs the risk of an excess verdict. Once the verdict is...more

Covenants Not to Sue in Connection with Nuisance and Other Property Claims Can Be Enforceable against Future Owners

At times, where a developer seeks to obtain an easement from a landowner for the construction of infrastructure or improvements on or adjacent to the landowner’s property, the landowner may request additional consideration to...more

EEOC Alleges that Standard Severance Agreement Language Violated Title VII

Certain standard provisions contained in separation agreements commonly used by employers violate federal law, according to the Equal Employment Opportunity Commission ("EEOC"). Specifically, EEOC in a suit filed in Illinois...more

Not Settling for Less: The EEOC’s Latest Challenge to Employee Releases

The Equal Employment Opportunity Commission (“EEOC”) recently filed a “pattern or practice” lawsuit against CVS Pharmacy, Inc., alleging that CVS uses an “overbroad, misleading and unenforceable Separation Agreement” that...more

Developments in Patent Law 2013; The D.C. Bar Year in Review

In this article: - Patentability, Validity, and Procurement of Patents - Interpretation and Infringement of Patents - Enforcement of Patents - Patents at the U.S. Supreme Court - Excerpt...more

Covenant Not to Sue Does Not Prevent Finding of Exceptional Case and Award of Attorneys' Fees Where Adverse Determinations Were...

Plaintiffs Kim Laube & Co. ("Laube") brought this patent infringement action against Defendant Wahl Clipper Corp. ("Wahl") for infringement of U.S. Patent No. 6,473,973 ("the '973 Patent"), which is titled "Disposable Cutting...more

Severance Agreements: What Are They Good For?

Employers frequently use severance agreement when terminating an employee or when an employee resigns with the hopes of reducing potential liability. In our practice, we often advise employers to offer severance pay that is...more

The Katten Kattwalk – Spring 2013

In this issue: - Questions Left Unanswered by Louboutin Case - Supreme Court Rules on Covenant Not to Sue - An Eye for Fashion: New York Magazine Presents New York’s - Women Leaders in the...more

Invalidity Counterclaims in IP Litigation: Supreme Court Rules on Effect of Covenants Not to Sue

On January 9, 2013, the Supreme Court issued its opinion in Already, LLC v. Nike, Inc., holding that a broad covenant not to enforce a trademark against certain products of a competitor moots the competitor’s action to...more

Intellectual Property Bulletin - Winter 2013

In This Bulletin: - Just Moot It: Supreme Court in Already v. Nike Clarifies When a Covenant Not to Sue Can Kill a Declaratory Judgment Case - Murky Waters: Post-Approval Regulatory Activities and the §...more

Trademark Review - Volume 3 | Issue 2 February 2013

In This Issue: - Supreme Court Affirms Dismissal Based on Nike's Broad Covenant Not to Sue - Hershey Cannot Kiss SWISSKISS Chocolates Goodbye - Luulemon's Design Mark is Rejected as Merely...more

IP Update, Vol. 16, No. 2, -- February 2013

In This Issue: Patents - Supreme Court: State Court Has Jurisdiction over a Legal Malpractice Claim; Nothing Non-Obvious About Applying Pre-Existing Technology to the Internet; The Federal Circuit Is Not the...more

Intellectual Property Newsletter - January 2013

In This Issue: *News From the Bench - Enough Already, Supreme Court Tells Petitioner in Mythology-Laced Opinion. - Divided Fed. Circuit Affirms Patentability of Claims to a 12-Can Dispenser...more

Enforcement Implications of Already, LLC v. Nike, Inc.

Brand owner's broad covenant not to sue may render invalidity counterclaims moot. On January 9, the U.S. Supreme Court in Already, LLC v. Nike, Inc. held that a plaintiff trademark owner's dismissal of its infringement...more

A Covenant Not to Sue May Avoid Invalidity Claims

Last week, in Already, LLC v. Nike, Inc. (opinion attached), the Supreme Court unanimously decided that the voluntary cessation doctrine, most often used when a defendant claims its voluntary compliance moots a case where it...more

Just Moot It: Supreme Court in Already v. Nike Clarifies When a Covenant Not to Sue Can Kill a Declaratory Judgment Case

In 2007, the Supreme Court in MedImmune v. Genentech broadened the scope of declaratory judgment jurisdiction, making it easier for parties fearing IP claims to bring defensive lawsuits. Last week, the Court made it easier...more

Supreme Court: Broad Covenant Not to Sue Negates Jurisdiction over Counterclaims for Non-Infringement and Cancellation of...

In Already, LLC v. Nike, Inc., the Supreme Court of the United States ruled that the trademark plaintiff’s voluntary dismissal of its infringement suit, together with a covenant not to sue, deprived the district court of...more

Already v. Nike: The Supreme Court Finds Covenant Not to Sue Made Competitor’s Claim for Invalidity of Trademark Moot

The U.S. Supreme Court issued its opinion yesterday in the closely-watched case, Already, LLC v. Nike, Inc. In a decision that is almost certain to affect patent owners as well, the Court unanimously affirmed the Second...more

Supreme Court Decision May Allow Infringement Plaintiffs to Use a Covenant Not to Sue to Avoid an Invalidity Ruling

In an important intellectual property ruling likely to affect patent law as much as trademark law, the U.S. Supreme Court issued its opinion in Already, LLC v. Nike, Inc., No. 11-982 (U.S. Jan. 9, 2013), unanimously holding...more

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