Be Careful When You Release An Infringer and Intend to Pursue Others

RFR Industries, Inc. v. Rex-Hide Industries, Inc., [05-1587](March 23, 2007)[PROST, Michel, Schall] NON-PRECEDENTIAL The Federal Circuit affirmed in part, reversed in part, vacated in part, and remanded the trial court decision.
BRIEF: The patentee settled a patent infringement suit against Century, a user of flangeway filler, expressly reserving the right to pursue the user's supplier. The Federal Circuit considered whether the released user had a duty to indemnify its supplier. The Federal Circuit found no error in the determination that the user did have to indemnify its supplier. The Federal Circuit also rejected the argument that the indemnity did not cover parts that were supplied, but only the entire system, but the Federal Circuit observed that parts don't infringe a patent by themselves. Finding that the released user had to indemnify the supplier, the Federal Circuit agreed that the patentee could not recover against the released user's suppliers.