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:
In general, a release obtained by fraud is invalid. Fraud involves proving that a person knowingly made a false statement with the intent of causing another to act or not act on the statement, resulting in harm to the one relying on the false statement. Bad faith is a broad term, which may include fraud, but more generally covers acting unfairly or dishonestly in a transaction. There is an implied duty in contract matters to deal with others in good faith and not act dishonestly or with improper motives.
The USPTO defines an inventor as "one who contributes to the conception of an invention". The patent law of the United States of America requires that the applicant in a patent application must be the inventor.
The answer to your question will depend on the contract terms and circumstances involved. The wording of the release may be limited or broad enough to include all claims arising from employment. Another consideration, among others, will be whether there was assignment of the patent to the company, and if the bankrupt company had rights in the patent, whether these were assigned to the successor company in the sales contract. I suggest you contact a local attorney who can review the facts and documents in the matter.
At least one court hasd held that a Chapter 11 plan separating the title to a patent 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.
