In ABB Inc. v. Cooper Industries, LLC, 97 U.S.P.Q. 2d 1885 (Fed. Cir. 2011), the Federal Circuit resolved an open question concerning subject matter jurisdiction of declaratory judgment actions based on patent infringement.
Cooper Industries owned several patents covering electrical equipment containing dielectric fluid. ABB manufactured a type of dielectric fluid called “Biotemp.” Cooper sued ABB for patent infringement. Cooper and ABB later settled the case, and Cooper granted ABB a non-exclusive license to make, have made, sell, or import the Biotemp product. The license stated that it did not include any rights of third parties to make the Biotemp product. In the license, ABB admitted that Cooper’s patents were valid and that the claims of the patents covered the Biotemp product.
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