Infringement Judgement Extended to Alter Egos of the Original Parties

Systems Division, Inc. v. Teknek Electronics, Ltd., [2007-1162](October 26, 2007)[MOORE, Michel, Newman] NON-PRECEDENTIAL The Federal Circuit affirmed the district court's decision adding parties to an infringement judgment under an alter ego theory.
SIGNIFICANCE: Judgment can't be defeated by fraudulent transfers to related entities who are alter egos of the original parties.
BRIEF: Two months after suit was filed, the original defendants formed a new entity in Scotland, and began moving assets to the newly formed entity. After a jury verdict against the defendant, the defendant filed an insolvency petition. California law allows parties to be added to a judgement if they alter egos of the existing defendants, and the newly joined defendants controlled the litigation. The Federal Circuit agreed that the added defendants were the alter egos of the original defendants, and that they had the opportunity to control the litigation through the newly added individual defendants where were the sole stockholders, directors, and officers of the companies. As to jurisdiction, the jurisdiction over the alter egos is the same as jurisdiction over the original parties,