The appellant in this contract dispute made no further payments to the appellee, claiming that the non-accrual clause in a settlement with another party extinguished its obligations to the appellee. The qualifying phrase "or other patent damages" in the non-accrual clause in the settlement indicates that the term "royalties" refers not to the contractually bargained-for payment obligations under the underlying contract, but to the court-ordered "reasonable royalties" that serve as the generally accepted measure of patent damages under 35 U.S.C. §284. The district court's summary judgment is affirmed. 5th U.S. Circuit Court of Appeals, No. 11-41408, 02-13-2013.
Tekelec Inc. v. Verint Systems Inc.
February 20, 2013