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Old Dawg, New Tricks: Bankruptcy Successor Is Also Inter Partes Re-Exam Successor

Reversing the Patent Trial and Appeal Board, the US Court of Appeals for the Federal Circuit concluded that because a plaintiff was a successor in bankruptcy, it was a successor in an inter partes re-examination. The Court held that the plaintiff should be substituted for the original requestor following the sale of the original re-examination requestor's right, title and interest in, to and under its assets to a holding company, which further assigned such assets and interests to the plaintiff. Mojave Desert Holdings, LLC v. Crocs, Inc., Case No. 20-1167 (Fed. Cir. Feb. 11, 2021) (Dyk, J.) The dispute originated in 2012 when Crocs sued Dawgs for patent infringement. Dawgs responded by filing a third-party request for inter partes re-examination, which the US Patent & Trademark Office granted. The examiner rejected Crocs' challenged patent claim as anticipated, and Crocs appealed to the Board. While the appeal was pending, Dawgs filed a petition under...

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Willfulness Allegation, Failure to Appear Lead to Nondischargeable Judgment

The US Court of Appeals for the Sixth Circuit affirmed that a state court’s finding of “willful and malicious injury” in connection with the misappropriation of trade secrets entitled the plaintiff, in the defendant’s subsequent bankruptcy proceeding, to summary judgment of nondischargeability on collateral estoppel grounds. In re Hill, Case No. 19-5861 (6th Cir. May 4, 2020) (Donald, J.). Aaron Hill and the other principals of First Meridian Mortgage Corporation agreed to sell First Meridian to CMCO Mortgage, where the former principals would build and manage an internet division. After the sale, Hill accepted an offer to work for CMCO’s competitor, Peoples Bank. CMCO later terminated Hill, alleging that he had breached his contract, provided trade secrets to Peoples and unlawfully recruited CMCO employees to Peoples. CMCO sued Peoples and Hill in Kentucky state court on a variety of theories, including misappropriation of trade secrets and tortious...

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