Papst Wins License Dispute Over Hard Drive Patents

Law360, New York (September 17, 2008, 12:00 AM EDT) -- Chinese hard drive manufacturer ExcelStor Technology Inc. demonstrated a “fundamental misunderstanding” of patent law when it invoked the patent exhaustion doctrine in a breach of contract suit against German patent-licensing company Papst Licensing GMBH & Co. KG, an appeals court has found.

The U.S. Court of Appeals for the Federal Circuit on Tuesday upheld a lower court's ruling dismissing ExcelStor's complaint for lack of subject matter jurisdiction, and found that the case is a matter for state courts.

The Fedeal Circuit agreed with the lower court...
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