Fed. Circ. Rules Motor Patent Suit Doomed By No-Sue Pledge

Law360 (January 10, 2020, 5:04 PM EST) -- A divided panel of the Federal Circuit ruled Friday that Molon Motor & Coil Corp. is barred from enforcing a patent against Nidec Motor Corp. under covenant not to sue, rejecting Molon's argument that the arrangement between the companies was wiped out by a later deal.

The majority held that a covenant not to sue that Molon provided a predecessor of Nidec in 2006 was not extinguished by a 2007 settlement agreement between the companies, because the two deals involve different subject matter.

The 2007 deal "does not indicate that the parties intended to revoke the 2006 covenant. The 2006 covenant remains operable,...

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