Vying for the rights to flat-screen TV technology – No damages for breach of patent license
Abstract: Last summer, two companies engaged in a fierce battle over licensing rights to a patented flat-screen TV technology. In Nano-Proprietary Inc. v. Canon Inc., the U.S. Court of Appeals for the Fifth Circuit held that a patent licensor couldn’t terminate a “perpetual” license agreement, despite the licensee’s material breach of the agreement. In addition, the licensor couldn’t recover monetary damages, because it had failed to establish the amount of damages with reasonable certainty. This case shows how a qualified valuation expert can help eliminate speculation.