Intellectual Property Law

Magistrate Judge Leonard P. Stark: Court Denies Stay Despite Decline in Defendant's Financial Outlook

By Karen E. Keller, Andrew A. Lundgren et al.

Magistrate Judge Stark denied defendant's request for entry of a 60 day stay based on a "drastic downturn in [defendant's] financial outlook." Aerocrine AB v. Apieron, Inc., C.A. No. 08-787-LPS, Order Regarding Request for Stay, at 1 (D. Del. Mar. 30, 2010). A court has discretion to enter a stay because of financial hardship on one of the parties. Id. at 1. Finding that there are hardships for both parties, including potential bankruptcy for the defendant and for plaintiffs, the possibility that defendant will continue to infringe the asserted patents and delay of resolution of this litigation which has been pending since 2008, the court chose to deny the stay. "Ultimately, [plaintiff] prefers to proceed with this litigation at the risk that doing so will force [defendant] to file for bankruptcy protection, rather than have the instant action stayed in hopes that the proposed asset sale will be consummated and permit [defendant] to proceed with the litigation." Id. at 2.

Aerocrine AB v. Apieron, Inc., C.A. No. 08-787-LPS, Order Regarding Request for Stay, at 1 (D. Del. Mar. 30, 2010).

Full post as published by Delaware IP Law Blog on April 13, 2010 (boomark / email).