On Nov. 27, 2018, a federal jury sitting in the U.S. District for the District of Massachusetts issued a verdict finding that a multinational company that produces imaging products breached a joint venture agreement, associated with a previously executed master license agreement concerning software, for failing to make contractually-required payments. See ITyX Solutions v. Kodak Alaris, No. 1:16-cv-10250 (D. Mass. Nov. 27, 2018). After deliberating for only two hours, the jury found the multinational owed nearly $7.5 million damages.

The verdict followed a May 2018 decision by the same court denying both parties’ motions for summary judgment, including plaintiff’s motion for a declaratory judgment that the defendant could not sua sponte terminate the software agreement. Of particular note, the denial of this motion hinged in part on the court’s inability at that stage of the case to decide whether the software agreement constituted a joint venture. Therefore, the court could also not decide whether the defendant had properly terminated the agreement.

Facts and Procedural Background