The U.S. Court of Appeals for the Federal Circuit has ruled as a matter of first impression that license negotiations related to reasonable royalties and damages are not privileged.
On April 9, in In Re MTSG Inc., the Federal Circuit ruled that Judge Edmond Chang of the Northern District of Illinois did not abuse his discretion by ordering MTSG to produce documents related to its license negotiation discussions with six other companies, including prior defendants in the case. Therefore the court denied MTSG’s writ of mandamus.
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