The automatic stay set forth in Chapter 11 of the U.S. Bankruptcy Code does not apply to an action for damages for post-petition patent infringement or an action to enjoin such infringement, a federal judge ruled Feb. 3 (Larami Limited v. Yes! Entertainment Corp., et al., No. 99-2851, D. N.J.).

U.S. Judge Joseph E. Irenas of the District of New Jersey denied a motion by Infinity Investors Ltd. to enforce the automatic stay provision to bar a patent infringement action brought by Larami Limited against Yes! Entertainment Corp. However, the judge granted a motion to transfer venue to the U.S. Bankruptcy Court for the District of Delaware, where Yes! Entertainment’s Chapter 11 petition is pending.

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