Full question:
I sued a company for breach of contract- failing to pay me. I won, and the company went into bankruptcy. In bankruptcy court a settlement and release was created. Several years later, I found out that my original invention was patented by the company. The disclosure documents to the USPTO were indeed my original blueprints. The litigation did not deal with that patent at all, and I did not know that it was filed. So, even though we have a release and settlement, I did not know of the filing while we were litigating and I signed the release. Is this release valid or fraudulent-bad faith? Do I have the ability to sue the new company that purchased the defendant company at this time, now that I observed that there is a patent. A final bit of info, the 'so called' inventor stated and misrepresented or lied to the USPTO that he was the inventor while he was never the true inventor. In your answer can you also send me the legal cases references for me to review.
- Category: Contracts
- Subcategory: Releases
- Date:
- State: Florida
Answer:
A release obtained through fraud is generally considered invalid. Fraud occurs when someone knowingly makes a false statement to mislead another, causing harm to that person. Bad faith refers to acting dishonestly or unfairly in a transaction. In contract matters, there is an implied duty to act in good faith.
The USPTO defines an inventor as someone who contributes to the conception of an invention. U.S. patent law requires that the applicant be the true inventor. Whether your release is valid depends on the specific terms and circumstances. The language of the release may determine if it covers all claims related to your employment. Additionally, it’s important to consider if the patent was assigned to the company and whether the bankrupt company had rights to it, which may have been transferred to the successor company.
Consulting a local attorney is advisable, as they can review your documents and provide guidance. Note that at least one court has ruled that a Chapter 11 plan separating patent title from the right to sue for infringement extinguishes all standing to enforce the patent.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.