Prem, Except in class action lawsuits (this is not a class action, as far as I know) the judge and court do not look at the settlement. It is negotiated between the parties and the details do not need to be revealed at all.
If it goes to trial, to the best of my knowlege, GIFT will be eligible to receive compensation for all damages, past and present.
One note: As I mentioned earlier, the prospect of defensive collateral estoppel (see Collins v. Seaboard Coastline R. Co., 681 F.2d 1333, 1334) looms large. If GIFT should lose to Compuserve on the issue the patent's validity or other issues that are outcome determinative, they may be estopped from raising them again in suits between them and other companies.
Many of the companies who have settled may have insisted on a clause in the settlement that if the patent is later found to be invalid or inapplicable, their duty to pay terminates. In any event, after the passage of one year (expiration of the license agreement) they would be free to stop paying.
So, once you feel your interests are being fairly litigated by another company (C-serve), there is little gained by fighting the same fight, when you can reap the rewards of the other's effort.
The funny thing is that although GIFT will probably be bound by defensive collateral estoppel, it is possible (likely?) that the opposite will not be true. That is, if they win, other companies will be able to resist payment on the grounds that the patent is invalid and force GIFT to relitigate that issue.
I am unaware of any quirks in patent law that might alter this analysis, and I'm no attorney, so just my 2 cents. :) |
