News & Analysis as of

Royalties Appeals

Houston Harbaugh, P.C.

Sixth Circuit Rules That Driller Must Establish Marketability of Each Gas Product Under Market Enhancement Clause

Houston Harbaugh, P.C. on

Let’s assume you own 105 acres in Greene County, Pennsylvania. In 2020, you signed an oil and gas lease with ABC Exploration. During the negotiations, you agreed that only those post-production costs which actually...more

McGinnis Lochridge

Texas Supreme Court Clarifies Limits of Shut-In Payment Notations in Lease Disputes

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In this case (Scout Energy Mgmt., LLC v. Taylor Properties, No. 23-1014, 2024 WL 5249490 [Tex. Dec. 31, 2024]), the Texas Supreme Court held that vague notations on shut-in royalty check receipts cannot modify an unambiguous...more

McGinnis Lochridge

All Depths or Just One Formation? Court Clarifies Royalty Conveyance in Rock River v. Pioneer

McGinnis Lochridge on

This recent case (Rock River Minerals, LP v. Pioneer Nat. Res. USA Inc., No. 08-23-00216-CV, 2024 WL 4528917 [Tex. App.—El Paso Oct. 18, 2024, no pet. h.]) explored whether an assignment of an overriding royalty interest,...more

McGinnis Lochridge

Affirmative Defenses Are Insufficient to Rebut the Van Dyke Presumption

McGinnis Lochridge on

Under Van Dyke, deeds with double-fraction royalty reservations referencing “1/8” are presumed to reserve a floating royalty interest unless clearly contradicted. Defenses like waiver, ratification, and limitations cannot...more

McGinnis Lochridge

Can "Free of Cost" Term Achieve Point-of-Sale Royalty Base?

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A lessee who halts production for less than 40 days and resumes without drilling or reworking does not terminate the lease. The continuous development clause keeps the lease active, and the cessation clause allows resumed...more

Baker Botts L.L.P.

Seeking Royalties Beyond Patent Expiration: A Refreshed Look at Patent Misuse

Baker Botts L.L.P. on

Key Takeaway: A recent Ninth Circuit decision in C.R. Bard v. Atrium reinforces the long-standing Brulotte rule against post-expiration patent royalties but clarifies that courts should assess this strictly as a legal...more

Kaufman & Canoles

K&C Sports & Entertainment Law Weekly Roundup - April 2025 #4

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Jack Nicklaus just scored a $1 million win in a New York court, striking back against his former company’s attempt to control his personal brand....more

McDermott Will & Emery

Munich Court Addresses Implementer’s Obligation To Provide Security in FRAND Negotiations

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The Munich Higher Regional Court issued a decision concerning the fair, reasonable, and nondiscriminatory (FRAND) negotiation process and an implementer’s obligation to provide security if a license offer for standard...more

Baker Botts L.L.P.

Patent Apportionment: Anything You Say in a License Agreement May Be Used Against You in a Court of Law

Baker Botts L.L.P. on

Over the last several years, the Federal Circuit has increasingly scrutinized patent litigants’ reliance on “comparable licenses” as a means for calculating a reasonable royalty, including whether the license needs to be...more

Proskauer - The Patent Playbook

A Looming En Banc Decision with Potentially Damaging Consequences – EcoFactor v. Google

For anyone following the evolving admissibility standards for expert opinions relating to patent damages, the EcoFactor v. Google case is one to watch. In December 2024, the Federal Circuit granted Google’s petition for...more

Smart & Biggar

When patents expire but royalty payments don’t: contrasting U.S. and Canadian approaches to patent licensing

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How does the expiration of the patents in one jurisdiction impact global royalty payments? This question was addressed by the United States Court of Appeal’s Ninth Circuit in C.R. Bard Inc v Atrium Medical Corporation, Case...more

Houston Harbaugh, P.C.

Ohio Appeals Court Rules that Horizontal Shale Well Was “On” the Leased Premises

Houston Harbaugh, P.C. on

Let’s assume you own a 175 acre farm in Washington County. Your grandfather acquired the farm back in 1948 from Farmer Brown (the “1948 Deed”). Your grandfather always said that he bought both the surface and oil and gas. In...more

McDermott Will & Emery

What’s Shaking? Not an Interlocutory Appellate Decision on Damages

McDermott Will & Emery on

The US Court of Appeals for the Fifth Circuit dismissed and remanded a district court certified interlocutory appeal concerning the standard for calculating a reasonable royalty under the Defend Trade Secrets Act (DTSA). The...more

Oliva Gibbs

Happiness is Setting Clear Boundaries — Especially in Overriding Royalty Assignments

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Assignments of interests in oil and gas leases often incorporate by reference outside agreements. This can be a helpful shortcut to avoid including every lengthy and confidential provision that was drafted during negotiations...more

Houston Harbaugh, P.C.

Pennsylvania Superior Court Reaffirms the Dunham Rule

Houston Harbaugh, P.C. on

Let’s assume you inherited a 150 acre farm in Lycoming County that has been owned by your family since 1909. In 2020, you are approached by ABC Drilling about a new oil and gas lease for the farm. You retain counsel and...more

Oliva Gibbs

Coverting a “Fixed” to a “Floating” NPRI: What (If Anything) Does ConocoPhillips v. Hahn Add to the Conversation?

Oliva Gibbs on

In ConocoPhillips Co. v. Hahn, the Supreme Court of Texas addressed whether a “fixed” nonparticipating royalty interest (“NPRI”) was later converted to a “floating” NPRI. The court weighed two possible means of this...more

Knobbe Martens

Federal Circuit Review | June 2024

Knobbe Martens on

Reliably Determining Reasonable Royalty Rates from Lump Sum Licenses - In Ecofactor, Inc. V. Google LLC, Appeal No. 23-1101, The Federal Circuit held that license agreements containing a lump sum payment “based on” a royalty...more

Mintz - Bankruptcy & Restructuring Viewpoints

In re Weinstein and Mallinckrodt: Implications for Royalty Financings, M&A Earn-Outs, and Other Transactions Involving Future...

Deal structure matters, particularly in bankruptcy. The Third Circuit recently ruled that a creditor’s right to future royalty payments in a non-executory contract could be discharged in the counterparty-debtor’s bankruptcy....more

McDermott Will & Emery

The $X Factor: Demystifying Damages Calculations

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The US Court of Appeals for the Federal Circuit affirmed a district court’s decision to deny a defendant’s motion for a new trial on damages, finding that the plaintiff’s damages expert sufficiently showed that prior license...more

ArentFox Schiff

Breaking: Third Circuit Declares Mallinckrodt’s Future Royalty Payment Obligations Dischargeable – Caution, Warning, and Options

ArentFox Schiff on

On April 25, the US Court of Appeals for the Third Circuit issued its precedential opinion in Mallinckrodt v. Sanofi-Aventis, Case No. 23-1111, reminding everyone that “creditors take on risks” when it ruled that the debtor...more

McDermott Will & Emery

Reasonable Royalty Available for Foreign Activities (But Not This Time)

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The US Court of Appeals for the Federal Circuit affirmed a district court’s decision to preclude a patent owner from seeking damages based on method claims infringed outside of the United States but confirmed that reasonable...more

Lathrop GPM

California Court of Appeals Affirms Rejection of Reverse Royalty Damages in a Breach of Contract Action by Franchisee

Lathrop GPM on

An appellate court in California has affirmed a trial court’s rejection of more than $4 million in lost business profits, which appellant Glen Suh alleged in a breach of contract action against franchisor Boba Time, Inc. Suh...more

McDermott Will & Emery

Read the Fine Print: Covenant Not to Sue “At Any Time” Terminated Upon License Expiration

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Illustrating the importance of carefully drafting and reviewing language in a covenant not to sue, the US Court of Appeals for the Federal Circuit found that the plain language of a covenant permitted a licensor to sue a...more

Holland & Hart LLP

Third Circuit: Unpaid Royalties in Bankruptcy are Subject to Constructive Trust under Colorado Law

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The United States Court of Appeals for the Third Circuit determined that, under Colorado law, unpaid royalties are real property interests and not property of the bankruptcy estate, reversing lower courts in Delaware that...more

Bennett Jones LLP

Leaving the Court in Peace: the Alberta Court of Appeal Applies Narrow Limitations Exception for Declaratory Relief

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The Alberta Limitations Act does not apply to requests for "a declaration of rights and duties, legal relations or personal status". The exception is narrow. But as recently confirmed by the Alberta Court of Appeal in...more

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