Wednesday, September 19, 2007

Division of Patent Rights in Bankruptcy Confuses Standing Issue

Morrow v. Microsoft Corp., [2006-1512, -1518, -1537](September 19, 2007)[MOORE, Prost, Plager] The Federal Circuit reversed the determination of standing to sue Microsoft, and vacated the judgment of non-infringement.
SIGNIFICANCE: Dividing of patent rights in a bankruptcy proceeding can impair standing to enforce the patents, regardless of the rights purportedly given the parties.
BRIEF: As a result of bankruptcy proceedings the rights in the patent suit were scattered. The Federal Circuit considered the rights held by the named plaintiff, and determined that they were insufficient to confer standing on the plaintiff to bring suit. The Federal Circuit reversed the denial of the motion to dismiss for lack of standing, and refused to reach the issues of validity of the patent.